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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>As filed with the Securities and Exchange Commission on March&nbsp;12, 2010</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><b>Registration No.&nbsp;333-<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></B>
</DIV>


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM S-1</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>REGISTRATION STATEMENT UNDER<BR>
THE SECURITIES ACT OF 1933</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Oneida Financial Corp. and<BR>
Oneida Savings Bank 401(k) Savings Plan</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Its Charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Maryland</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>6712</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Being applied for</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">(State or Other Jurisdiction of <BR>
Incorporation or Organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Primary Standard Industrial<BR>
Classification Code Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer<BR>
Identification Number)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>182 Main Street<BR>
Oneida, New York 13421<BR>
(315)&nbsp;363-2000</B><BR>
(Address, Including Zip Code, and Telephone Number, Including Area Code, of<BR>
Registrant&#146;s Principal Executive Offices)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Mr.&nbsp;Michael R. Kallet<BR>
President and Chief Executive Officer<BR>
182 Main Street<BR>
Oneida, New York 13421<BR>
(315)&nbsp;363-2000</B><BR>
(Address, Including Zip Code, and Telephone Number, Including Area Code, of<BR>
Agent for Service)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Copies to:<BR>
Eric Luse, Esq.<BR>
Robert I. Lipsher, Esq.<BR>
Luse Gorman Pomerenk &#038; Schick, P.C.<BR>
5335 Wisconsin Avenue, N.W., Suite&nbsp;780<BR>
Washington, D.C. 20015<BR>
(202)&nbsp;274-2000</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Approximate date of commencement of proposed sale to the public: </B>As soon as practicable after
this registration statement becomes effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If any of the securities being registered on this Form are to be offered on a delayed or continuous
basis pursuant to Rule&nbsp;415 under the Securities Act of 1933, check the following box: <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If this Form is filed to register additional shares for an offering pursuant to Rule 462(b)
under the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering: <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act,
check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering: <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act,
check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering: <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See the definitions of &#147;large accelerated
filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule&nbsp;12b-2 of the Exchange Act.
(Check one):
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><FONT style="white-space: nowrap">Large accelerated filer <FONT face="Wingdings">&#111;</FONT></FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="white-space: nowrap">Accelerated filer <FONT face="Wingdings">&#111;</FONT></FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="white-space: nowrap">Non-accelerated filer <FONT face="Wingdings">&#254;</FONT></FONT><br>
<FONT style="white-space: nowrap">(Do not check if a smaller reporting company)</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="white-space: nowrap">Smaller reporting company <FONT face="Wingdings">&#111;</FONT></FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>CALCULATION OF REGISTRATION FEE</B></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="15" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Proposed maximum</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Proposed maximum</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>Title of each class of</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount to be</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>offering price per</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>aggregate offering</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount of</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>securities to be registered</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>registered</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>share</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>price</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>registration fee</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
                    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Common Stock, $0.01 par
value per share</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 2px solid #000000">9,435,892 shares</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 2px solid #000000">$8.00</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 2px solid #000000">$75,487,136(1)</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 2px solid #000000">$5,383</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Participation Interests</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 2px solid #000000">1,883,832 interests</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 2px solid #000000">(2)</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="15" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated solely for the purpose of calculating the registration fee.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The securities of Oneida Financial Corp. to be purchased by the Oneida Savings Bank 401(k)
Plan are included in the amount shown for common stock. However, pursuant to Rule 457(h) of
the Securities Act of 1933, as amended, no separate fee is required for the participation
interests. Pursuant to such rule, the amount being registered has been calculated on the
basis of the number of shares of common stock that may be purchased with the current assets of
such plan.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The registrant hereby amends this registration statement on such date or dates as may be necessary
to delay its effective date until the registrant shall file a further amendment which specifically
states that this registration shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the registration statement shall become effective on such date
as the Securities and Exchange Commission, acting pursuant to said Section&nbsp;8(a), may determine.</B>
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>








<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Prospectus Supplement</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Interests in</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ONEIDA SAVINGS BANK<BR>
401(k) SAVINGS PLAN</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Offering of Participation Interests in up to 1,883,832 Shares of</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ONEIDA FINANCIAL CORP.<BR>
Common Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the conversion of Oneida Financial, MHC from the mutual to the stock form
of organization, Oneida Financial Corp., a newly formed Maryland corporation (&#147;Oneida
Financial-New&#148;), is offering shares of common stock for sale. Accordingly, in connection with the
conversion, Oneida Financial-New is allowing participants in the Oneida Savings Bank 401(k) Savings
Plan (the &#147;Plan&#148;) to invest all or a portion of their accounts in the common stock of Oneida
Financial-New. Based upon the value of the Plan assets at December&nbsp;31, 2009, the trustee of the
Plan could purchase up to 1,883,832 shares of the common stock, at the purchase price of $8.00 per
share. This prospectus supplement relates to the initial election of Plan participants to direct
the trustee of the Plan to invest all or a portion of their Plan accounts in the Oneida
Financial-New Stock Fund at the time of the stock offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The prospectus of Oneida Financial-New dated <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010, accompanies this prospectus
supplement. It contains detailed information regarding the conversion and stock offering of Oneida
Financial-New and the financial condition, results of operations and business of Oneida
Financial-New and Oneida Savings Bank. This prospectus supplement provides information regarding
the Plan. You should read this prospectus supplement together with the prospectus and keep both for
future reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>For a discussion of risks that you should consider, see &#147;Risk Factors&#148; beginning on page </B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
<B>of the prospectus.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The interests in the Plan and the offering of the common stock have not been approved or
disapproved by the Office of Thrift Supervision, the Securities and Exchange Commission or any
other federal or state agency. Any representation to the contrary is a criminal offense.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The securities offered in this prospectus supplement are not deposits or accounts and are not
insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement may be used only in connection with offers and sales by Oneida
Financial-New, in the stock offering, of participation interests in the common stock acquired by
the Plan. No one may use this prospectus supplement to reoffer or resell interests in shares of
common stock acquired through the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should rely only on the information contained in this prospectus supplement and the
attached prospectus. Oneida Financial-New, Oneida Savings Bank and the Plan have not authorized
anyone to provide you with information that is different.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement does not constitute an offer to sell or solicitation of an offer to
buy any securities in any jurisdiction to any person to whom it is unlawful to make an offer or
solicitation in that jurisdiction. Neither the delivery of this prospectus supplement and the
prospectus nor any sale of common stock or participation interests representing an ownership
interest in common stock shall under any circumstances imply that there has been no change in the
affairs of Oneida Financial-New, Oneida Savings Bank, or the Plan since the date of this prospectus
supplement, or that the information contained in this prospectus supplement or incorporated by
reference is correct as of any time after the date of this prospectus supplement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The date of this prospectus supplement is <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
, 2010.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">THE OFFERING</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#102">Securities Offered</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#103">New Employer Stock Fund</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#104">Purchase Priorities</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#105">Allocation of Units</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#106">Composition of and Purpose of Stock Units</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#107">Value of Plan Assets</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#108">Election to Purchase Stock Units in the Offering</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#109">How to Order Stock in the Offering</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#110">Order Deadline</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#111">Irrevocability of Transfer Direction</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#112">Future Direction to Purchase Common Stock</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#113">Voting Rights of Common Stock</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114">DESCRIPTION OF THE PLAN</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#115">Introduction</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#116">Eligibility and Participation</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#117">Contributions Under the Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#118">Limitations on Contributions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#119">Benefits Under the Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#120">Withdrawals and Distributions from the Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#121">Investment of Contributions and Account Balances</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#122">Performance History and Description of Funds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#123">Administration of the Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#124">Amendment and Termination</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#125">Merger, Consolidation or Transfer</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#126">Federal Income Tax Consequences</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#127">Additional Employee Retirement Income Security Act (&#147;ERISA&#148;) Considerations</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#128">Securities and Exchange Commission Reporting and Short-Swing Profit Liability</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#129">Financial Information Regarding Plan Assets</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#130">LEGAL OPINION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE OFFERING</B>
</DIV>

<DIV align="left">
<A name="102"></A>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Securities Offered</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oneida Financial-New is offering stock units in the Oneida
Savings Bank 401(k) Savings Plan (the &#147;Plan&#148;). The stock
units represent indirect ownership of Oneida Financial-New
common stock through the Oneida Financial-New Stock Fund (&#147;New
Employer Stock Fund&#148;) being established under the Plan in
connection with the stock offering. At the purchase price of
$8.00 per share, the Plan may acquire up to 1,883,832 shares
of Oneida Financial-New common stock in the stock offering,
based on the fair market value of the Plan&#146;s assets as of
December&nbsp;31, 2009.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Only employees of Oneida Savings Bank may become participants
in the Plan and only participants may purchase stock units
through the New Employer Stock Fund. Your investment in stock
units in connection with the stock offering through the New
Employer Stock Fund is subject to the purchase priorities
listed below.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Information with regard to the Plan is contained in this
prospectus supplement and information with regard to the
financial condition, results of operations and business of
Oneida Financial Corp. and Oneida Savings Bank is contained in
the accompanying prospectus. The address of the principal
executive office of Oneida Financial Corp. and Oneida Savings
Bank is 182 Main Street, Oneida, New York 13421. Oneida
Savings Bank&#146;s telephone number at this address is (315)
363-2000.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="103"></A>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>New Employer Stock Fund</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The New Employer Stock Fund is a new fund in the Plan
established to hold shares of Oneida Financial-New common
stock that are purchased in the stock offering. It is
different from the Oneida Financial Corp. Stock Fund (the &#147;Old
Employer Stock Fund&#148;), which presently holds shares of the
common stock of Oneida Financial Corp., the mid-tier holding
company of Oneida Savings Bank that will be eliminated in the
reorganization of Oneida Financial, MHC into Oneida
Financial-New, the newly formed stock holding company of
Oneida Savings Bank. At the close of the reorganization and
offering, shares of Oneida Financial Corp. held in the Old
Employer Stock Fund will be exchanged for shares of Oneida
Financial-New pursuant to the exchange ratio (discussed in
greater detail in the accompanying prospectus) and the Old
Employer Stock Fund will be merged into and become part of the
New Employer Stock Fund.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="104"></A>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Purchase Priorities</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">All Plan participants are eligible to purchase stock units in
the New Employer Stock Fund. However, such directions are
subject to the purchase priorities in the Plan of Conversion
and Reorganization of Oneida Financial, MHC, which
contemplates a subscription offering</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">and a community offering.
In the offering, the purchase priorities are as follows and
apply in case more shares are ordered than are available for
sale:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subscription Offering:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:30px; text-indent:-18px">(1) Depositors of Oneida Savings Bank with $50 or more on
deposit as of December&nbsp;31, 2008, get first priority.</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:30px; text-indent:-18px">(2) Oneida Savings Bank&#146;s tax-qualified plans, including the
employee stock ownership plan, get second priority.</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:30px; text-indent:-18px">(3) Depositors of Oneida Savings Bank with $50 or more on
deposit as of March&nbsp;31, 2010, get third priority.</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:30px; text-indent:-18px">(4) Depositors of Oneida Savings Bank as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> get
fourth priority.</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Community Offering:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:30px; text-indent:-18px">(5) Residents of the New York counties of Chenango, Cortland,
Herkimer, Lewis, Madison, Oneida, Onondaga, Oswego and Otsego
get fifth priority.</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:30px; text-indent:-18px">(6) Public stockholders of Oneida Financial Corp. as of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> get sixth priority.</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Syndicated Community Offering:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:30px; text-indent:-18px">(7) Persons who do not qualify under any other priority listed
above get last priority.</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If you fall into subscription offering categories
(1), (3)&nbsp;or (4), you have subscription rights to purchase
stock units representing an ownership interest in shares of
Oneida Financial-New common stock in the subscription offering
and you may use funds in the Plan to pay for the stock units.
You may also be able to purchase stock units representing an
ownership interest in shares of Oneida Financial-New common
stock in the subscription offering even though you are
ineligible to purchase through subscription offering
categories (1), (3)&nbsp;or (4), if Oneida Financial-New determines
to allow the Plan to purchase stock through subscription
offering category (2), reserved for its tax-qualified employee
plans. If the Plan is not included in category (2), then any
order for stock units placed by those ineligible to subscribe
in categories (1), (3), and (4)&nbsp;will be considered an order
placed in the community offering to members of the general
public. Subscription offering orders, however, will have
preference over orders placed in a community offering.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="105"></A>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Allocation of Units</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The trustee of the New Employer Stock Fund will purchase
common stock in the stock offering in accordance with your
directions. No later than the end of the subscription and
community offering period, the amount that you elect to
transfer from your existing account balances for the purchase
of stock units in the New Employer Stock Fund will be removed
from your existing accounts and transferred to the Stock
Offering Option, a money market fund established to hold your
transferred assets that will be used by the trustee to
purchase Oneida Financial-New common stock, pending the
closing of the stock offering. Following the offering period,
we will determine whether all or any portion of your order
will be filled (if the offering is oversubscribed you may not
receive any or all of your order, depending on your purchase
priority, as described above, and whether the Plan will
purchase through category (2)). The amount that can be used
toward your order will be applied to the purchase of stock
units.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In the event the offering is oversubscribed, <I>i.e.</I>, there are
more orders for common stock of Oneida Financial-New than
shares available for sale in the offering, and the trustee is
unable to use the full amount allocated by you to purchase
common stock in the offering, the amount that cannot be
invested in common stock, and any interest earned on such
amount will be transferred from the Stock Offering Option and
reinvested in the existing investment funds of the Plan, in
accordance with your then existing investment election (in
proportion to your investment direction for future
contributions to the Plan). The prospectus describes the
allocation procedures in the event of an oversubscription. If
you choose not to direct the investment of your account
balances towards the purchase of any stock units in connection
with the stock offering, your account balances will remain in
the investment funds of the Plan as previously directed by
you.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="106"></A>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Composition of and Purpose of Stock Units</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The New Employer Stock Fund will invest in the common stock of
Oneida Financial-New. In addition, the New Employer Stock
Fund will maintain a cash component for liquidity purposes.
Liquidity is required in order to facilitate daily
transactions such as investment transfers or distributions
from the New Employer Stock Fund. For purchases in the
offering, there will be no cash component. A stock unit will
be valued at $8.00 and will consist of one share of Oneida
Financial-New. After the offering, stock units will consist
of a percentage interest in both the common stock and cash
held in the New Employer Stock Fund. Unit values (similar to
the stock&#146;s share price) and the number of units (similar to
number of shares) are used to communicate the dollar value of
a participant&#146;s investment in the New Employer Stock Fund.
Following the stock offering, each day</TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">the stock unit value of
the New Employer Stock Fund will be determined by dividing the
total market value of the fund at the end of the day by the
total number of units held in the fund by all participants as
of the previous day&#146;s end. The change in stock unit value
reflects the day&#146;s change in stock price, any cash dividends
accrued and the interest earned on the cash component of the
fund, less any investment management fees, and any new cash
that is added to the fund for liquidity purposes. The market
value and unit holdings of your account in the New Employer
Stock Fund will be reported to you on your quarterly
statements.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="107"></A>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Value of Plan Assets</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">As of December&nbsp;31, 2009, the market value of the assets of the
Plan was approximately $15,070,663, which is eligible to be
used to purchase common stock in the offering. The Plan
administrator informed each participant of the value of his or
her account balance under the Plan as of December&nbsp;31, 2009.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="108"></A>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Election to Purchase Stock Units in the Offering</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In connection with the stock offering, the Plan will permit
you to direct the trustee to transfer all or part of your
account balance in the Plan to purchase stock units in the
stock offering. You do not have to elect to transfer amounts
that you invested in the Old Employer Stock Fund into the New
Employer Stock Fund. This exchange will take place
automatically. The shares of common stock of Oneida Financial
Corp. in the Old Employer Stock Fund will be exchanged for
Oneida Financial-New common stock pursuant to the exchange
ratio. The trustee of the Plan will subscribe for Oneida
Financial-New common stock offered for sale in connection with
the stock offering, in accordance with each participant&#146;s
direction. In order to purchase stock units through the Plan,
you must purchase stock units representing an ownership
interest in at least 25 shares of common stock in the offering
through the Plan. The prospectus describes maximum purchase
limits for investors in the stock offering. The trustee will
pay $8.00 per share in the offering, which will be the same
price paid by all other persons who purchase shares in the
subscription and community offerings.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="109"></A>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>How to Order Stock in the Offering</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">You can elect to transfer all or a portion of your account
balance in the Plan to the Stock Offering Option, which will
be used by the Plan trustee to purchase shares of common stock
that will be transferred to the New Employer Stock Fund in
connection with the stock offering. This is done by following
the procedures described below. Please note the following
stipulations concerning this election:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px; text-indent:-8px">&#149; You can direct all or a portion of your current
account to the Stock Offering Option in increments of $8.00.</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px; text-indent:-8px">&#149; Your election is subject to a minimum purchase of 25
stock units, which equals $200.</div></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px; text-indent:-8px">&#149; Your election, plus any order you placed outside the
Plan, are together subject to a maximum purchase of 37,500
shares, which equals $300,000.</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px; text-indent:-8px">&#149; The election period opens <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010 and
closes <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> p.m., Eastern Time, on
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010.</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px; text-indent:-8px">&#149; Your election to purchase stock units in the offering
through the Plan will be accepted by Benefit Plans
Administrative Services, Inc. (&#147;BPAS&#148;), the recordkeeper of
the Plan. After your election is accepted by BPAS, the
portion of your account balance transferred to the Stock
Offering Option will be rounded down to the closest dollar
amount divided by $8.00, and will be used by the trustee to
purchase shares of common stock in the offering. The
difference will remain in the Stock Offering Option until the
formal closing of the offering has been completed. At that
time, the common stock of Oneida Financial-New purchased by
the trustee based on your election will be transferred to the
New Employer Stock Fund and any remaining funds will be
transferred out of the Stock Offering Option for investment in
other funds under the Plan, based on your investment elections
currently on file for future contributions.</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px; text-indent:-8px">&#149; You will continue to have the ability to transfer
amounts not transferred to the Stock Offering Option among all
the other investment funds on a daily basis during the
offering period.</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px; text-indent:-8px">&#149; The amount transferred to the Stock Offering Option
needs to be segregated and held until the offering closes.
Therefore, this money is not available for distributions,
loans, or withdrawals until the completion of the stock
offering.</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Follow these steps to make your election to use all or a part
of your account balance in the Plan to purchase stock units in
the stock offering.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px; text-indent:-8px">&#149; Go to <u>www.bpas.com</u> and log into your Plan account.</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#091;Procedures to purchase online to come&#093;</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">After you have completed your online election, you will also
need to complete the Stock Information Form and return it in
the self-addressed envelope to be received by <u><B>Holly Kann, Vice
President &#151; </B></u></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u><B>Administration, at Oneida Savings Bank, 182 Main
Street, Oneida, New York 13421. It is critical that this
Stock Information Form be completed and returned.</B></u></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="110"></A>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Order Deadline</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">You must make your election online at www.bpas.com and return
your Stock Information Form to <u><B>Holly Kann, Vice President &#151;
Administration, at Oneida Savings Bank, 182 Main
Street, Oneida, New York, 13421, by no later than &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; p.m.
Eastern Standard Time on </B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>, 2010. You may return
your Stock Information Form by U.S. mail, interoffice mail or
by faxing it to (315)-366-3809, so long as it is returned by
the time specified.</B></u></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="111"></A>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Irrevocability of Transfer Direction</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u><B>Once you make an election to transfer amounts in your Plan
account to the Stock Offering Option to be used by the trustee
to purchase common stock in connection with the stock
offering, you may not change your election.</B></u> Your election is
irrevocable until after the stock offering has concluded. You
will, however, continue to have the ability to transfer
amounts not directed towards the purchase of stock units among
all of the other investment funds on a daily basis. You may
also continue to transfer funds into and out of the Old
Employer Stock Fund which will purchase shares of Oneida
Financial Corp. common stock in the open market (but not in
the offering) or sell the shares in your account until the
closing of the offering.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="112"></A>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Future Direction to Purchase Common Stock</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">You will be able to purchase stock units representing an
ownership interest in Oneida Financial-New common stock after
the offering through your investment in the New Employer Stock
Fund. You may direct that your future contributions or your
account balance in the Plan be transferred to the New Employer
Stock Fund. After the offering, to the extent that shares are
available, the trustee of the Plan will acquire common stock
at your election in open market transactions at the prevailing
price, which may be less than or more than $8.00 per share.
You may change your investment allocation on a daily basis.
Special restrictions may apply to transfers directed to and
from the New Employer Stock Fund by the participants who are
subject to the provisions of Section&nbsp;16(b) of the Securities
Exchange Act of 1934, as amended, relating to the purchase and
sale of securities by officers, directors and principal
shareholders of Oneida Financial-New.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="113"></A>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Voting Rights of Common Stock</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Plan provides that you may direct the trustee as to how to
vote any shares of Oneida Financial-New common stock held by
the New Employer Stock Fund, and the interest in such shares
that is credited to your account. If the trustee does not
receive your voting instructions, the Plan administrator will
exercise these rights as it determines in its discretion and
will direct the trustee accordingly.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">All voting instructions
will be kept confidential.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF THE PLAN</B>
</DIV>

<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Introduction</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank originally adopted the Oneida Savings Bank 401(k) Savings Plan effective
as of January&nbsp;1, 1973, as subsequently amended and restated effective January&nbsp;1, 2008, and further
restated effective January&nbsp;1, 2010 (the &#147;Plan&#148;). The Plan is a tax-qualified plan with a cash or
deferred compensation feature established in accordance with the requirements under Section 401(a)
and Section 401(k) of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank intends that the Plan, in operation, will comply with the requirements
under Section 401(a) and Section 401(k) of the Code. Oneida Savings Bank will adopt any amendments
to the Plan that may be necessary to ensure the continuing qualified status of the Plan under the
Code and applicable Treasury Regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Employee Retirement Income Security Act (&#147;ERISA&#148;)</I>. The Plan is an &#147;individual account plan&#148;
other than a &#147;money purchase pension plan&#148; within the meaning of ERISA. As such, the Plan is
subject to all of the provisions of Title I (Protection of Employee Benefit Rights) and Title II
(Amendments to the Code Relating to Retirement Plans) of ERISA, except to the funding requirements
contained in Part&nbsp;3 of Title I of ERISA which by their terms do not apply to an individual account
plan (other than a money purchase plan). The Plan is not subject to Title IV (Plan Termination
Insurance) of ERISA. The funding requirements contained in Title IV of ERISA are not applicable to
participants or beneficiaries under the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Reference to Full Text of Plan. </I>The following portions of this prospectus supplement summarize
certain provisions of the Plan. They are not complete and are qualified in their entirety by the
full text of the Plan. Copies of the Plan are available to all employees by filing a request with
the Plan administrator at <U>Oneida Savings Bank, 182 Main Street, Oneida, New York 13421</U>.
You are urged to read carefully the full text of the Plan.
</DIV>
<DIV align="left">
<A name="116"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Eligibility and Participation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To participate in the Plan and receive an employer contribution, you must complete one year of
service with Oneida Savings Bank in which you have 1,000 hours of service. If you complete three
months of service, you will be eligible to make &#147;salary deferrals&#148; to the Plan (as discussed in
more detail below). Once you have met the eligibility requirements, you will begin participation
on the first day of the month next following the date on which you meet the eligibility
requirements. Non-resident aliens, leased employees, and employees who are covered by a collective
bargaining agreement are not eligible to participate in the Plan. The Plan year is January 1 to
December&nbsp;31 (the &#147;Plan Year&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2009, there were approximately 355 employees and former employees eligible
to participate in the Plan and 250 employees participating by making elective deferral
contributions.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="117"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Contributions Under the Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Salary Deferrals</I>. You are permitted to defer on a pre-tax basis up to 100% of your
compensation (expressed in terms of whole percentages), subject to certain restrictions imposed by
the Code, and to have that amount contributed to the Plan on your behalf. For purposes of the
Plan, &#147;compensation&#148; means your total compensation received from Oneida Savings Bank, including
your salary contributions to any of Oneida Savings Bank&#146;s plans that are not taxable. In 2010, the
annual compensation of each participant taken into account under the Plan is limited to $245,000.
(Limits established by the Internal Revenue Service are subject to increase pursuant to an annual
cost-of-living adjustment, as permitted by the Code). You may elect to modify the amount
contributed to the Plan by filing a new elective deferral agreement with the Plan administrator at
any time prior to the first day of the next month in which you want the modification to take
effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Employer Matching Contributions</I>. Oneida Savings Bank will make matching contributions to the
Plan in an amount equal to 100% of your salary deferrals that are not in excess of 4% of your
compensation, plus 50% of your salary deferrals that exceed 4% of your compensation but which do
not exceed 6% of your compensation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Employer Profit Sharing Contributions</I>. Oneida Savings Bank may make discretionary profit
sharing contributions to the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Rollover Contributions</I>. You may make rollover contributions to the Plan.
</DIV>
<DIV align="left">
<A name="118"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Limitations on Contributions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Limitations on Employee Salary Deferrals</I>. For the Plan Year beginning January&nbsp;1, 2010, the
amount of your before-tax contributions may not exceed $16,500 per calendar year. In addition, if
you are 50&nbsp;years old in 2010, you will be able to make a &#147;catch-up&#148; contribution of up to $5,500 in
addition to the $16,500 limit. The &#147;catch-up&#148; contribution limit may be adjusted periodically by
law, based on changes in the cost of living. Contributions in excess of these limits, as
applicable to you, are known as excess deferrals. If you defer amounts in excess of these
limitations, as applicable to you, your gross income for federal income tax purposes will include
the excess in the year of the deferral. In addition, unless the excess deferral is distributed
before April&nbsp;15 of the following year, it will be taxed again in the year distributed. Income on
the excess deferral distributed by April&nbsp;15 of the immediately succeeding year will be treated, for
federal income tax purposes, as earned and received by you in the tax year in which the
contribution is made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Contribution Limit</I>. Generally, the law imposes a maximum limit on the amount of contributions
you may receive under the Plan. This limit applies to all contributions to the Plan, including
your salary deferrals and all other employer contributions made on your behalf during the year,
excluding earnings and any transfers/rollovers. For the Plan Year beginning January&nbsp;1, 2010, this
total cannot exceed the lesser of $49,000 or 100% of your annual base compensation.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="119"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Benefits Under the Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Vesting</I>. At all times, you have a fully vested, nonforfeitable interest in the salary
deferrals you have made, the employer matching contributions, and their investment earnings.
Employer discretionary contributions are subject to a 5-year graded vesting schedule in which such
amounts vest in 20% increments after completion of one year of service until a participant is 100%
vested upon completion of 5&nbsp;years of service. Prior services with predecessor organizations, as
identified in the Plan, will be recognized for purposes of vesting.
</DIV>
<DIV align="left">
<A name="120"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Withdrawals and Distributions from the Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Applicable federal law requires the Plan to impose substantial restrictions on the right of a
Plan participant to withdraw amounts held for his or her benefit under the Plan prior to the
participant&#146;s termination of employment with the employer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Withdrawal upon Retirement</I>. You may withdraw from your account upon attainment of your Normal
Retirement Date (the later of age 65 or the date 5&nbsp;years after you first become eligible to
participate in the Plan) or Early Retirement Date (age 55 and completion of 5&nbsp;years of service).
However, if you continue working past your Normal Retirement Date or Early Retirement Date, the
distribution of your benefits will be postponed until you actually retire, unless you elect to
receive an in-service distribution (as described below). You may also leave your account in the
Plan and defer commencement of receipt of your vested balance until April 1 of the calendar year
following the calendar year in which you attain age 70 <FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>, except that distributions to a
participant (other than a 5% owner) with respect to benefits accrued after the later of the
adoption of the Plan or the effective date of the amendment of the Plan must commence no later than
the April 1 of the calendar year following the later of the calendar year in which the participant
attains age 70 <FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT> or the calendar year in which the participant retires.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Withdrawal upon Termination</I>. You may request a distribution from your account if your
termination of employment occurs before your Normal Retirement Date or Early Retirement Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Withdrawal upon Disability</I>. If you are disabled in accordance with the definition of
disability under the Plan, you will be entitled to the same withdrawal rights as if you had
terminated your employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Withdrawal upon Death</I>. If you die while you are a participant in the Plan, the value of your
entire account will be payable to your beneficiary. You may elect to have your beneficiary receive
the distribution in either a lump sum or in installment payments over any period that does not
exceed the life expectancy of your beneficiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>In-Service Distribution</I>. While employed, you are eligible to receive an in-service
distribution from your account upon the earlier of your attainment of age 59 <FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT> or the Normal
Retirement Date. However, you will be eligible to request a distribution of your rollover
contributions at any time.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Hardship</I>. In the event you incur a financial hardship, you may request an in-service
withdrawal of a portion of your Plan account attributable to your salary deferrals and rollover
contributions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Loan</I>. You may request a loan from your Plan account pursuant to the procedures established in
the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Form of Distribution</I>. You will have the right to elect to be paid your benefit under the Plan
in either a lump sum or various forms of installments or annuities offered under the Plan.
</DIV>
<DIV align="left">
<A name="121"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment of Contributions and Account Balances</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All amounts credited to your account under the Plan are held in the Plan trust which is
administered by the trustee appointed by the Oneida Savings Bank Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to the effective date of the offering, you are provided the opportunity to direct the
investment of your account into any of the following funds:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Lazard Emerging Markets Equity Open</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Harbor International Instl</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>American Funds EuroPacific Gr R5</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Janus Overseas J</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ING Global Real Estate A Load Waived</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>TCW Total Return Bond I</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>American Funds Fundamental Invs R5</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>American Funds Growth Fund of Amer R</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pioneer Cullen Value A</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sentinel Mid Cap Value Instl</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>BlackRock US Opportunities Inv A</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Perkins Mid Cap Value A</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Manning &#038; Napier Pro-Blend Mod Term S</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Manning &#038; Napier Target Income K</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Vanguard Short-Term Treasury</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Royce Value Svc</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Vanguard Small Cap Growth Index Instl</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Van Kampen Small Cap Value A LW</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Manning &#038; Napier Target 2010 K</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">20.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Manning &#038; Napier Target 2020 K</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">21.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Manning &#038; Napier Target 2030 K</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">22.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Manning &#038; Napier Target 2040 K</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">23.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Manning &#038; Napier Retirement Target Income Collective Investment Trust Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">24.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Templeton Global Bond A</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">25.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>American Funds Capital World G/I R5</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">26.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SEI Stable Asset Fund (A)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">27.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oneida Financial Corp. Stock Fund (Old Employer Stock Fund)</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<DIV align="left">
<A name="122"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Performance History and Description of Funds</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following provides performance data with respect to the investment funds available under
the Plan:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Performance as of December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total Return</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total Return</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total Return</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total Return</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Annualized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Annualized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total Return</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>YTD</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>1 Yr</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>3 Yrs</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>5 Yrs</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Annualized 10 Yrs</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lazard Emerging Markets Equity Open</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">69.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">69.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">16.43</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.22</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Harbor International Instl</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">38.57</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">38.57</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">-1.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.26</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">American Funds EuroPacific Gr R5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">39.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">39.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">-0.27</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.92</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Janus Overseas J</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">78.12</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">78.12</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.45</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.95</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.94</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ING Global Real Estate A Load Waived</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">33.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">33.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.11</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TCW Total Return Bond I</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19.88</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19.88</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.91</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.05</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.72</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">American Funds Fundamental Invs R5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">33.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">33.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">-2.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.81</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">American Funds Growth Fund of Amer R</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.91</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.91</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">-2.84</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.17</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.56</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pioneer Cullen Value A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">-4.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>

</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sentinel Mid Cap Value Instl</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35.85</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35.85</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">-4.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.80</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>

</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">BlackRock US Opportunities Inv A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35.61</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35.61</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.46</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.77</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Perkins Mid Cap Value A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">30.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">30.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.91</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manning &#038; Napier Pro-Blend Mod Term S</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.91</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.91</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manning &#038; Napier Target Income K</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.48</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.48</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>

</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vanguard Short-Term Treasury</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.28</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.92</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Royce Value Svc</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">44.71</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">44.71</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">-0.40</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.22</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>

</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vanguard Small Cap Growth Index Instl</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">42.13</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">42.13</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">-2.13</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.72</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Van Kampen Small Cap Value A LW</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">-1.80</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.64</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manning &#038; Napier Target 2010 K</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.80</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.80</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manning &#038; Napier Target 2020 K</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">24.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">24.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>

</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manning &#038; Napier Target 2030 K</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29.92</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29.92</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>

</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manning &#038; Napier Target 2040 K</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>

</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manning &#038; Napier Retirement Target -
Income Collective
Investment Trust Fund</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.05</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1">n/a</TD>    <TD>&nbsp;</TD>

</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Templeton Global Bond A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.86</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.86</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.88</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.66</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">American Funds Capital World G/I R5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">32.65</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">32.65</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">-1.17</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.36</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SEI Stable Asset Fund (A)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.07</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.56</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.39</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Old Employer Stock Fund</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following is a description of each of the Plan&#146;s investment funds:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Lazard Emerging Markets Equity Open. </B>The fund seeks long-term capital appreciation. The fund
normally invests primarily in equity securities of companies whose principal business activities
are located in emerging market countries but focuses on companies in Latin America, the Pacific
Basin and Eastern Europe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Harbor International Instl. </B>The fund seeks long-term total return, principally from growth of
capital. The fund invests primarily in common and preferred stocks of foreign companies that have
market capitalizations in excess of $1&nbsp;billion, including those located in emerging market. The
fund invests in a minimum of ten countries throughout the world.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>American Funds EuroPacific Gr R5. </B>The fund seeks long-term growth of capital. The fund normally
invests primarily in growth-oriented, equity-type securities of issuers located in Europe and the
Pacific Basin. The fund may also hold cash, money market instruments and fixed-income securities.
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Janus Overseas J. </B>The fund seeks long-term growth of capital. The fund normally invests
primarily in securities of issuers from countries outside of the United States. The fund normally
invests in securities of issuers from several different countries. The fund may invest in foreign
equity and debt securities and may have significant exposure to emerging markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>ING Global Real Estated A Load Waived. </B>The fund seeks to provide investors with high total return.
The fund normally invests primarily in a portfolio of equity securities of companies in a number
of different countries, including the U.S., that are principally engaged in the real estate
industry. The fund may invest in common stocks of large, mid- and small-sized companies, including
REITs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>TCW Total Return Bond I. </B>The fund seeks to maximize current income and achieve above average total
return consistent with prudent investment management over a full market cycle. The fund invests
primarily in fixed income securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>American Funds Fundamental Invs R5. </B>The fund seeks long-term growth of capital and income. The
fund invests primarily in common stocks or securities convertible into common stocks. The fund may
also invest significantly in non-U.S. securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>American Funds Growth Fund of Amer R. </B>The fund seeks growth of capital. The fund invests
primarily in attractively valued common stocks of companies that appear to offer superior
opportunities for growth of capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Pioneer Cullen Value A. </B>The fund seeks capital appreciation; current income is a secondary
objective. The fund invests primarily in equity securities believed to be undervalued. The fund
may invest a significant portion of its assets in equity securities of medium- and
large-capitalization companies. The fund may invest in securities of issuers that are not U.S. or
Canadian issuers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Sentinel Mid Cap Value Instl. </B>The fund seeks long-term capital appreciation. The fund normally
invests primarily in stocks of mid-capitalization U.S. companies that are believed to have a solid
risk/return profile and can be purchased at attractive prices, with the potential to generate
superior relative long-term investment returns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>BlackRock US Opportunities Inv A. </B>The fund seeks long-term capital appreciation. The fund
normally invests primarily in equity securities issued by U.S. emerging capitalization companies
with relatively attractive earnings growth potential and valuation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Perkins Mid Cap Value A. </B>The fund seeks capital appreciation. The fund primarily invests in the
common stocks of mid-sized companies whose stock prices are believed to be undervalued. The fund
normally invests primarily in equity securities of companies whose market capitalization falls
within the capitalization range of the Russell Midcap Value Index.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Manning &#038; Napier Pro-Blend Mod Term S. </B>The fund seeks long-term growth of capital and preservation
of capital. The fund primarily invests in a combination of stocks and intermediate to long-term,
fixed-income securities with maturities of 5 to 10&nbsp;years. The fund may also invest in American
Depository Receipts.
</DIV>



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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Manning &#038; Napier Target Income K. </B>The funds seeks current income and, secondarily, capital
appreciation consistent with its asset allocation strategy. The fund invests in an underlying
fund, which invests primarily in fixed income securities of the U.S. government, although it may
also invest in mortgage-backed securities, corporate bonds and in common stocks of U.S. issuers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Vanguard Short-Term Treasury. </B>The fund seeks to provide current income while maintaining limited
price volatility. The fund primarily invests in U.S. Treasury securities, including bills, bonds
and notes issued by the U.S. Treasury. The fund is expected to maintain a dollar-weighted average
maturity of one to four years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Royce Value Svc. </B>The fund seeks long-term growth of capital. The fund invests primarily in a
diversified portfolio of equity securities issued by small- and mid-cap companies believed to
trading significantly below their estimated current worth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Vanguard Small Cap Growth Index Instl. </B>The fund seeks to track the performance of the MSCI US
Small Cap Growth Index, a broadly diversified index of growth stocks of smaller U.S. companies.
The fund invests all, or substantially all, of its assets in the stocks that make up the index,
holding each stock in approximately the same proportion as its weighting in the index.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Van Kampen Small Cap Value A LW. </B>The fund&#146;s investment objective is to seek capital appreciation.
The fund normally invests primarily in a portfolio of equity securities of small cap companies
believed to be undervalued.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Manning &#038; Napier Retirement Target 2010 Collective Investment Trust Fund. </B>The Manning &#038; Napier
Retirement Target 2010 Collective Investment Trust Fund is invested in the Manning &#038; Napier
Pro-Mix<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Moderate Term Collective Investment Trust Fund, a moderately conservative mix
of individual stock, bond, and cash securities that seeks a more stable rate of growth than that of
a broad investment in the stock market. The fund manager diversifies the underlying fund primarily
among intermediate to long-term fixed income securities and various stocks. Stocks will typically
be a minority in the fund unless the fund manager sees the stock market as particularly attractive.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Manning &#038; Napier Retirement Target 2020 Collective Investment Trust Fund. </B>The Manning &#038; Napier
Retirement Target 2020 Collective Investment Trust Fund is invested in the Manning &#038; Napier
Pro-Mix<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Extended Term Collective Investment Trust Fund, a growth-oriented mix of
individual stock, bond, and cash securities that seeks to earn a good portion of the long-term
growth of the stock market without full market risk. The fund manager diversifies the underlying
fund primarily among various stock investments as long as stock market valuations are favorable
versus long-term bond yields. A substantial portion of the fund may be invested in long-term,
fixed income securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Manning &#038; Napier Retirement Target 2030 Collective Investment Trust Fund. </B>The Manning &#038; Napier
Retirement Target 2030 Collective Investment Trust Fund is invested 50% in the Manning &#038; Napier
Pro-Mix<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Maximum Collective Investment Trust Fund and 50% in the Manning &#038; Napier
Pro-Mix<SUP style="font-size: 85%; vertical-align: text-top"><SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> </SUP>Extended Term Collective Investment Trust Fund to create a moderately
aggressive, growth-oriented mix of individual stock, bond, and cash securities that
</DIV>




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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">seeks to earn the long-term growth typically associated with the stock market over time with
slightly less risk. The resulting portfolio is diversified primarily among various stock
investments in both domestic and foreign markets, typically with a portion of the portfolio
invested in fixed income securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Manning &#038; Napier Retirement Target 2040 Collective Investment Trust Fund. </B>The Manning &#038; Napier
Retirement Target 2040 Collective Investment Trust Fund is invested in the Manning &#038; Napier
Pro-Mix<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Maximum Term Collective Investment Trust Fund, an aggressive, growth-oriented
mix of individual stock, bond, and cash securities that seeks to earn the high returns typically
associated with the stock market over time. The fund manager diversifies the underlying fund
primarily among various stock investments in both domestic and foreign markets, typically investing
only a minor portion of the fund in fixed income securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Manning &#038; Napier Retirement Target Income Collective Investment Trust Fund </B>The Manning &#038; Napier
Retirement Target Income Collective Investment Trust Fund is invested in the Manning &#038; Napier
Pro-Mix<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Conservative Term Collective Investment Trust Fund, a conservative mix of
individual stock, bond, and cash securities that seeks protection of capital while generating
income. The fund manager diversifies the underlying fund primarily among fixed income securities,
typically focusing on short to intermediate term maturities. A minor position in stocks adds
potential for modest growth when equity market risk is low. However, this approach clearly favors
stability over growth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Templeton Global Bond A. </B>The fund seeks current income with capital appreciation and growth of
income. The fund invests predominantly in bonds issued by companies, governments and government
agencies located around the world. Although the fund focuses on bonds rated investment-grade, it
may invest a portion of its assets in bonds that are rated below investment-grade.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>American Funds Capital World G/I R5. </B>The fund seeks long-term growth of capital while providing
current income. The fund invests, on a global basis, in common stocks that are denominated in U.S.
dollars or other currencies. The fund may also hold cash or money market instruments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>SEI Stable Asset Fund (A). </B>The SEI Stable Asset Fund seeks to provide high current income with the
preservation of capital. The fund will diversify investments among guaranteed investment contracts
(GICs) issued by major life insurance companies and money center banks, as well as synthetic GICs.
Synthetic GICs are used to improve the credit quality of a GIC portfolio and reduce the insurance
company exposure. The fund&#146;s average maturity will normally be maintained between two and four
years. The fund&#146;s cash will be invested in short-term government issues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oneida Financial Corp. Stock Fund (Old Employer Stock Fund). </B>The Oneida Financial Corp. Stock Fund
(i.e., the Old Employer Stock Fund) consists primarily of investments in common stock of Oneida
Financial Corp. Oneida Financial Corp. is a federally chartered majority-owned subsidiary of
Oneida Financial, MHC, a mutual holding company. Investments in the Old Employer Stock Fund
involves special risks common to investments in the shares of common stock of Oneida Financial
Corp.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Following the offering, Oneida Financial Corp., a federal corporation, will cease to exist, but
will be succeeded by a new Maryland corporation with the name Oneida Financial Corp. (&#147;Oneida
Financial-New&#148;), which will be 100% owned by its public shareholders. Shares of Oneida Financial
Corp. which were held in the Old Employer Stock Fund prior to the conversion and offering will be
converted into new shares of common stock of Oneida Financial-New, in accordance with the exchange
ratio. As soon as practicable after the closing of the stock offering, the Old Employer Stock Fund
will be merged into the New Employer Stock Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oneida Financial-New Stock Fund (New Employer Stock Fund). </B>In connection with the stock offering,
you may, in the manner described earlier, direct the trustee to invest all or a portion of your
Plan account in the Oneida Financial-New Stock Fund (i.e., the New Employer Stock Fund).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Subsequent to the stock offering, you may elect to invest all or a portion of your contributions in
the New Employer Stock Fund; you may also elect to transfer into the New Employer Stock Fund all or
a portion of your accounts currently invested in other funds under the Plan. After the offering,
the trustee will, to the extent practicable, use amounts held by it in the New Employer Stock Fund,
including cash dividends paid on common stock held in the New Employer Stock Fund, to purchase
shares of common stock of Oneida Financial-New, taking into consideration cash amounts needed to
maintain liquidity in the account. It is expected that all purchases will be made at prevailing
market prices. Performance of the New Employer Stock Fund depends on a number of factors,
including the financial condition and profitability of Oneida Financial-New and Oneida Savings Bank
and market conditions for shares of Oneida Financial-New common stock generally. Investments in
the New Employer Stock Fund involves special risks common to investments in the shares of common
stock of Oneida Financial-New.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B>An investment in any of the funds listed above is not a deposit of a bank and
is not insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency. As with any mutual fund investment, there is
always a risk that you may lose money on your investment in any of the funds
listed above.</B>
</DIV>
<DIV align="left">
<A name="123"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Administration of the Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>The Trustee and Custodian</I></B>. The trustee of the Plan is Hand Benefit &#038; Trust Company. Hand
Benefit &#038; Trust Company serves as trustee for all the investments funds under the Plan, including
during the offering period for Oneida Financial-New common stock. Following the offering period,
Hand Benefit &#038; Trust Company will also serve as the trustee of the New Employer Stock Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Plan Administrator</I></B><B>. </B>Pursuant to the terms of the Plan, the Plan is administered by the Plan
administrator, Oneida Savings Bank. The address of the Plan administrator is 182 Main St., Oneida,
New York 13421, telephone number (315)&nbsp;363-3701. The Plan administrator is responsible for the
administration of the Plan, interpretation of the provisions of the Plan, prescribing procedures
for filing applications for benefits, preparation and distribution of information explaining the
Plan, maintenance of Plan records, books of account and all other data necessary for the proper
administration of the Plan, preparation and filing of all returns and reports relating to the Plan
which are required to be filed with the U.S. Department of Labor and
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Internal Revenue Service, and for all disclosures required to be made to participants,
beneficiaries and others under Sections&nbsp;104 and 105 of ERISA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Reports to Plan Participants</I></B>. The Plan administrator will furnish you a statement at least
quarterly showing the balance in your account as of the end of that period, the amount of
contributions allocated to your account for that period, and any adjustments to your account to
reflect earnings or losses (if any).
</DIV>
<DIV align="left">
<A name="124"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Amendment and Termination</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is the intention of Oneida Savings Bank to continue the Plan indefinitely. Nevertheless,
Oneida Savings Bank may terminate the Plan at any time. If the Plan is terminated in whole or in
part, then regardless of other provisions in the Plan, you will have a fully vested interest in
your accounts. Oneida Savings Bank reserves the right to make any amendment or amendments to the
Plan which do not cause any part of the trust to be used for, or diverted to, any purpose other
than the exclusive benefit of participants or their beneficiaries; provided, however, that Oneida
Savings Bank may make any amendment it determines necessary or desirable, with or without
retroactive effect, to comply with ERISA.
</DIV>
<DIV align="left">
<A name="125"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Merger, Consolidation or Transfer</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of the merger or consolidation of the Plan with another plan, or the transfer of
the trust assets to another plan, the Plan requires that you would, if either the Plan or the other
plan terminates, receive a benefit immediately after the merger, consolidation or transfer which is
equal to or greater than the benefit you would have been entitled to receive immediately before the
merger, consolidation or transfer, if the Plan had then terminated.
</DIV>
<DIV align="left">
<A name="126"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Income Tax Consequences</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a brief summary of the material federal income tax aspects of the Plan. You
should not rely on this summary as a complete or definitive description of the material federal
income tax consequences relating to the Plan. Statutory provisions change, as do their
interpretations, and their application may vary in individual circumstances. Finally, the
consequences under applicable state and local income tax laws may not be the same as under the
federal income tax laws. Please consult your tax advisor with respect to any distribution from the
Plan and transactions involving the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a &#147;tax-qualified retirement plan,&#148; the Plan is afforded special tax treatment under the
Code, including:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;the sponsoring employer is allowed an immediate tax deduction for the amount contributed
to the Plan each year;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;participants pay no current income tax on amounts contributed by the employer on their
behalf; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;earnings of the Plan are tax-deferred, thereby permitting the tax-free accumulation of
income and gains on investments.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank will administer the Plan to comply with the requirements of the Code as of
the applicable effective date of any change in the law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Lump-Sum Distribution</I>. A distribution from the Plan to a participant or the beneficiary of a
participant will qualify as a lump-sum distribution if it is made within one taxable year, on
account of the participant&#146;s death, disability or separation from service, or after the participant
attains age 59 <FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>, and consists of the balance credited to participants under the Plan and all other
profit sharing plans, if any, maintained by Oneida Savings Bank. The portion of any lump-sum
distribution required to be included in your taxable income for federal income tax purposes
consists of the entire amount of the lump-sum distribution, less the amount of after-tax
contributions, if any, you have made to this Plan and any other profit sharing plans maintained by
Oneida Savings Bank, which is included in the distribution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Oneida Financial-New Common Stock Included in Lump-Sum Distribution</I>. If a lump-sum
distribution includes Oneida Financial-New common stock, the distribution generally will be taxed
in the manner described above, except that the total taxable amount may be reduced by the amount of
any net unrealized appreciation with respect to Oneida Financial-New common stock; that is, the
excess of the value of Oneida Financial-New common stock at the time of the distribution over its
cost or other basis of the securities to the trust. The tax basis of Oneida Financial-New common
stock, for purposes of computing gain or loss on its subsequent sale, equals the value of Oneida
Financial-New common stock at the time of distribution, less the amount of net unrealized
appreciation. Any gain on a subsequent sale or other taxable disposition of Oneida Financial-New
common stock, to the extent of the amount of net unrealized appreciation at the time of
distribution, will constitute long-term capital gain, regardless of the holding period of Oneida
Financial-New common stock. Any gain on a subsequent sale or other taxable disposition of Oneida
Financial-New common stock, in excess of the amount of net unrealized appreciation at the time of
distribution, will be considered long-term capital gain. The recipient of a distribution may elect
to include the amount of any net unrealized appreciation in the total taxable amount of the
distribution, to the extent allowed by regulations to be issued by the Internal Revenue Service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Distributions: Rollovers and Direct Transfers to Another Qualified Plan or to an IRA</I>. You may
roll over virtually all distributions from the Plan to another qualified plan or to an individual
retirement account in accordance with the terms of the other plan or account.
</DIV>
<DIV align="left">
<A name="127"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Additional Employee Retirement Income Security Act (&#147;ERISA&#148;) Considerations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As noted above, the Plan is subject to certain provisions of ERISA, including special
provisions relating to control over the Plan&#146;s assets by participants and beneficiaries. The
Plan&#146;s feature that allows you to direct the investment of your account balances is intended to
satisfy the requirements of Section 404(c) of ERISA relating to control over plan assets by a
participant or beneficiary. The effect of this is two-fold. First, you will not be deemed a
&#147;fiduciary&#148; because of your exercise of investment discretion. Second, no person who otherwise is
a fiduciary, such as Oneida Savings Bank, the Plan administrator, or the Plan&#146;s trustee is liable
under the fiduciary responsibility provision of ERISA for any loss which results from your exercise
of control over the assets in your Plan account.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because you will be entitled to invest all or a portion of your account balance in the Plan in
Oneida Financial-New common stock, the regulations under Section 404(c) of the ERISA require that
the Plan establish procedures that ensure the confidentiality of your decision to purchase, hold,
or sell employer securities, except to the extent that disclosure of such information is necessary
to comply with federal or state laws not preempted by ERISA. These regulations also require that
your exercise of voting and similar rights with respect to the common stock be conducted in a way
that ensures the confidentiality of your exercise of these rights.
</DIV>
<DIV align="left">
<A name="128"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Securities and Exchange Commission Reporting and Short-Swing Profit Liability</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;16 of the Securities Exchange Act of 1934 imposes reporting and liability requirements
on officers, directors, and persons beneficially owning more than 10% of public companies such as
Oneida Financial-New. Section 16(a) of the Securities Exchange Act of 1934 requires the filing of
reports of beneficial ownership. Within 10&nbsp;days of becoming an officer, director or person
beneficially owning more than 10% of the shares of Oneida Financial-New, a Form&nbsp;3 reporting initial
beneficial ownership must be filed with the Securities and Exchange Commission. Changes in
beneficial ownership, such as purchases, sales and gifts generally must be reported periodically,
either on a Form&nbsp;4 within 2 business days after the change occurs, or annually on a Form&nbsp;5 within
45&nbsp;days after the close of Oneida Financial-New&#146;s fiscal year. Discretionary transactions in and
beneficial ownership of the common stock through the New Employer Stock Fund of the Plan by
officers, directors and persons beneficially owning more than 10% of the common stock of Oneida
Financial-New generally must be reported to the Securities and Exchange Commission by such
individuals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the reporting requirements described above, Section 16(b) of the Securities
Exchange Act of 1934 provides for the recovery by Oneida Financial-New of profits realized by an
officer, director or any person beneficially owning more than 10% of Oneida Financial-New&#146;s common
stock resulting from non-exempt purchases and sales of Oneida Financial-New common stock within any
six-month period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Securities and Exchange Commission has adopted rules that provide exemptions from the
profit recovery provisions of Section 16(b) for all transactions in employer securities within an
employee benefit plan, provided certain requirements are met. These requirements generally involve
restrictions upon the timing of elections to acquire or dispose of employer securities for the
accounts of Section 16(b) persons.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except for distributions of common stock due to death, disability, retirement, termination of
employment or under a qualified domestic relations order, persons affected by Section 16(b) are
required to hold shares of common stock distributed from the Plan for six months following such
distribution and are prohibited from directing additional purchases of units within the New
Employer Stock Fund for six months after receiving such a distribution.
</DIV>
<DIV align="left">
<A name="129"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Financial Information Regarding Plan Assets</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial information representing the net assets available for Plan benefits and the change
in net assets available for Plan benefits at December&nbsp;31, 2009, is available upon written request
to the Plan administrator at the address shown above.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="130"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL OPINION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The validity of the issuance of the common stock has been passed upon by Luse Gorman Pomerenk
&#038; Schick, P.C., Washington, D.C., which firm acted as special counsel to Oneida Financial-New in
connection with Oneida Financial-New&#146;s stock offering.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>




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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PROSPECTUS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ONEIDA FINANCIAL CORP.<BR>
(Proposed Holding Company for The Oneida Savings Bank)<BR>
Up to 4,528,125 Shares of Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial Corp., a Maryland corporation (&#147;Oneida Financial-New&#148;), is offering shares of
common stock for sale in connection with the &#147;second step&#148; conversion of Oneida Financial, MHC from
the mutual to the stock form of organization. The shares of common stock we are offering represent
the 55.2% ownership interest in Oneida Financial Corp., a federally chartered company, now owned by
Oneida Financial, MHC. The existing shares of Oneida Financial Corp. common stock held by the
public will be exchanged for shares of common stock of Oneida Financial-New. All shares of common
stock are being offered for sale at a price of $8.00 per share. Oneida Financial Corp.&#146;s common
stock is currently quoted on the Nasdaq Capital Market under the symbol &#147;ONFC.&#148; We expect that
shares of Oneida Financial-New common stock will trade on the Nasdaq Global Market under the symbol
&#147;ONFCD&#148; for a period of 20 trading days after the completion of the offering. Thereafter, the
trading symbol will revert to &#147;ONFC.&#148;
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>


    <TD colspan="3"><B><I>If you are or were a depositor of Oneida Savings Bank:</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You may have priority rights to purchase shares of common stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B><I>&nbsp;</I></B></TD>
    <TD width="1%"><B><I>&nbsp;</I></B></TD>
    <TD><B><I>If you are currently a stockholder of Oneida Financial Corp.:</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each of your shares of common stock will be exchanged at the conclusion of the offering
for between 0.7766 and 1.0507 shares (subject to adjustment to up to 1.2083 shares) of
common stock of Oneida Financial-New.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Your percentage ownership will remain the same as your current percentage ownership
interest in Oneida Financial Corp., exclusive of additional shares that you may purchase in
the offering and your receipt of cash in lieu of fractional exchange shares.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You may have the opportunity to purchase additional shares of common stock in the
offering after priority orders are filled.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B><I>&nbsp;</I></B></TD>
    <TD width="1%"><B><I>&nbsp;</I></B></TD>
    <TD><B><I>If you fit neither of the categories above, but are interested in purchasing shares of our
common stock:</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You may have the opportunity to purchase shares of common stock after priority orders
are filled.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are offering up to 4,528,125 shares of common stock for sale on a best efforts basis. We
may sell up to 5,207,344 shares of common stock because of demand for the shares or changes in
market conditions, without resoliciting subscribers. In addition to the shares we are selling, we
also will simultaneously issue up to 3,676,998 shares of common stock to current stockholders of
Oneida Financial Corp. in exchange for their existing shares. The number of shares to be issued in
exchange may be increased to up to 4,228,548 shares, depending on the number of shares sold in the
offering. We must sell a minimum of 3,346,875 shares in the offering, and we must issue at least
2,717,781 shares in the exchange in order to complete the offering and the exchange of existing
shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The minimum number of shares you may order is 25. The offering is expected to expire at
_:&#95;&#95;&#95;&nbsp;&#95;&#95;.m., Eastern Time, on &#091;expiration date&#093;. We may extend this expiration date without notice
to you until &#091;extension date&#093;, unless the Office of Thrift Supervision approves a later date, which
may not be beyond &#091;final expiration date&#093;. Once submitted, orders are irrevocable unless the
offering is terminated or is extended beyond &#091;extension date&#093;, or the number of shares of common
stock to be sold is increased to more than 5,207,344 shares or decreased to less than 3,346,875
shares. If the offering is extended beyond &#091;extension date&#093;, or if the number of shares of common
stock to be sold is increased to more than 5,207,344 shares or decreased to less than 3,346,875
shares, we will resolicit subscribers, and you will have the opportunity to maintain, change or
cancel your order. If you do not provide us with a written indication of your intent, your funds
will be returned promptly to you, with interest. Funds received prior to the completion of the
stock offering will be held in a segregated account at The Oneida Savings Bank or, at our
discretion, at another federally insured depository institution. All subscriptions received will
bear interest at The Oneida Savings Bank&#146;s passbook savings rate, which is currently 0.40% per
annum. Shares of common stock not purchased in the subscription offering may be offered for sale to
the general public in a community offering, with a preference given first to natural persons
residing in the New York counties of Chenango, Cortland, Herkimer, Lewis, Madison, Oneida,
Onondaga, Oswego and Otsego, and then to Oneida Financial Corp. public stockholders as of
&#091;stockholder record date&#093;. The community offering, if held, may begin concurrently with, during or
promptly after the subscription offering as we may determine at any time. Stifel, Nicolaus &#038;
Company, Incorporated will assist us in selling our shares of common stock on a best efforts basis
in the subscription offering and community offering. We also may offer for sale shares of
common stock not purchased in the subscription offering or community offering through a syndicated
community offering managed by Stifel, Nicolaus &#038; Company, Incorporated. Stifel, Nicolaus &#038; Company,
Incorporated is not obligated to purchase any shares of the common stock that are being offered for
sale. Purchasers will not pay a commission to purchase shares of common stock in the offering.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OFFERING SUMMARY<BR>
Price: $8.00 per Share</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Minimum</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Midpoint</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Adjusted Maximum</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of shares:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,346,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,937,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,528,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,207,344</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross offering proceeds:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,775,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">31,500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">36,225,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">41,658,752</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Estimated offering expenses,
excluding selling agent
commissions and expenses:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,195,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,195,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,195,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,195,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Estimated selling agent
commissions and expenses (1):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,151,855</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,324,790</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,497,725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,696,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Estimated net proceeds:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">24,427,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">28,979,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">33,531,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">38,766,652</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Estimated net proceeds per share:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7.44</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>For information regarding compensation to be received by Stifel,
Nicolaus &#038; Company, Incorporated and the other broker-dealers that may
participate in the syndicated community offering, including the assumptions
regarding the number of shares that may be sold in the
subscription and community offerings and the syndicated community offering to
determine the estimated offering expenses, see &#147;Pro Forma Data&#148; on page &#95;&#95;&#95;and
&#147;The Conversion and Offering&#151;Marketing Arrangements&#148; on page &#95;&#95;&#95;.</TD>
</TR>

</TABLE>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>This investment involves a degree of risk, including the possible loss of principal.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Please read &#147;Risk Factors&#148; beginning on page &#95;&#95;&#95;.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>These securities are not deposits or accounts and are not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Neither the Securities and Exchange
Commission, the Office of Thrift Supervision, nor any state securities regulator has approved or
disapproved of these securities or determined if this Prospectus is accurate or complete. Any
representation to the contrary is a criminal offense.</I></B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Stifel Nicolaus</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">For assistance, please contact the Stock Information Center at (877) <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.<BR>
The date of this prospectus is <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;MAP TO BE INSERTED HERE&#093;</B>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>





<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size:8pt">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD style="border-bottom: 1px solid #000000" align="center" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#151"><B>SUMMARY</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#152"><B>RISK FACTORS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>20</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#153"><B>SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF ONEIDA FINANCIAL CORP.</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>32</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#154"><B>FORWARD-LOOKING STATEMENTS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>34</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#155"><B>HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>35</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#156"><B>OUR DIVIDEND POLICY</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>37</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#157"><B>MARKET FOR THE COMMON STOCK</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>37</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#158"><B>HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>39</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#159"><B>CAPITALIZATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>40</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#160"><B>PRO FORMA DATA</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>42</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#161"><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>46</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#162"><B>BUSINESS OF ONEIDA FINANCIAL-NEW</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>68</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#163"><B>BUSINESS OF ONEIDA FINANCIAL CORP. AND ONEIDA SAVINGS BANK</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>68</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#164"><B>SUPERVISION AND REGULATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>99</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#165"><B>TAXATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>109</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#166"><B>MANAGEMENT</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>111</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#167"><B>BENEFICIAL OWNERSHIP OF COMMON STOCK</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>138</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#168"><B>SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>139</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#169"><B>THE CONVERSION AND OFFERING</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>140</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#170"><B>COMPARISON OF STOCKHOLDERS&#146; RIGHTS FOR EXISTING STOCKHOLDERS OF ONEIDA FINANCIAL CORP.</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>166</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#171"><B>RESTRICTIONS ON ACQUISITION OF ONEIDA FINANCIAL-NEW</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>173</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#172"><B>DESCRIPTION OF CAPITAL STOCK OF ONEIDA FINANCIAL-NEW</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>177</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#173"><B>FOLLOWING THE CONVERSION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>177</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#174"><B>TRANSFER AGENT</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>178</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#175"><B>EXPERTS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>178</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#176"><B>LEGAL AND TAX MATTERS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>179</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#177"><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>179</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#178"><B>ONEIDA FINANCIAL CORP. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right"><B>180</B></TD>
    <TD>&nbsp;</TD>
</TR>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="151"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUMMARY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summary explains the significant aspects of the conversion, the offering and the
exchange of existing public shares of Oneida Financial Corp. common stock for shares of Oneida
Financial-New common stock. It may not contain all of the information that is important to you. For
additional information before making an investment decision, you should read this entire document
carefully, including the consolidated financial statements and the notes to the consolidated
financial statements, and the section entitled &#147;Risk Factors.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Companies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Oneida Financial, MHC</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial, MHC is the federally chartered mutual holding company of Oneida Financial
Corp., a federal corporation. Oneida Financial, MHC&#146;s principal business activity is the ownership
of 4,309,750 shares of common stock of Oneida Financial Corp., or 55.2% of the issued and
outstanding shares as of February&nbsp;28, 2010. Upon completion of the conversion and offering, Oneida
Financial, MHC will no longer exist.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial, MHC&#146;s executive offices are located at 182 Main Street, Oneida, New York
13421. Its telephone number at this address is (315)&nbsp;363-2000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Oneida Financial Corp.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial Corp. is a federally chartered corporation that owns all of the outstanding
common stock of The Oneida Savings Bank, a New York chartered savings bank. At December&nbsp;31, 2009,
Oneida Financial Corp. had consolidated assets of $590.5&nbsp;million, deposits of $489.4&nbsp;million and
stockholders&#146; equity of $59.1&nbsp;million. After the completion of the conversion and offering, Oneida
Financial Corp. will cease to exist, but will be succeeded by a new Maryland corporation with the
name Oneida Financial Corp. As of February&nbsp;28, 2010, Oneida Financial Corp., the federally
chartered corporation, had 7,809,420 shares of common stock issued and outstanding. As of that
date, Oneida Financial, MHC owned 4,309,750 shares of common stock of Oneida Financial Corp.,
representing 55.2% of the issued and outstanding shares of common stock. The remaining shares were
owned by the public.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial Corp.&#146;s executive offices are located at 182 Main Street, Oneida, New York
13421. Its telephone number at this address is (315)&nbsp;363-2000 and its website address is
<U>www.oneidafinancial.com</U>. Information on this website is not and should not be considered to be a
part of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Oneida Financial-New</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial-New is a newly formed Maryland corporation that will own all of the
outstanding common stock of Oneida Savings Bank upon completion of the conversion and the offering.
Oneida Financial-New will be the successor to Oneida Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial&#151;New&#146;s executive offices are located at 182 Main Street, Oneida, New York
13421. Its telephone number at this address is (315)&nbsp;363-2000.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Oneida Savings Bank</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank is a New York chartered savings bank headquartered in Oneida, New York.
Oneida Savings Bank was originally founded in 1866 as a mutual (meaning no stockholders) savings
bank. In 1998, Oneida Savings Bank converted to a New York chartered stock savings bank and
reorganized from the mutual to the two-tiered mutual holding company form of organization. Since
1998 the Bank has grown its traditional community banking franchise organically and through
acquisitions of banks and nonbank companies that offer insurance sales, financial services,
employee benefit consulting and other risk management products and services. The expansion into
insurance and other financial services businesses has enabled Oneida Savings Bank to evolve from a
traditional savings bank to a full-service financial services organization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank&#146;s deposits are insured by the Federal Deposit Insurance Corporation up to
the maximum amount permitted by law. Oneida Savings Bank is a community bank engaged primarily in
the business of accepting deposits from customers through its main office and 11 full-service
branch offices and using those deposits, together with funds generated from operations and
borrowings, to make one-to-four family residential and commercial real estate loans, consumer loans
and commercial business loans and to invest in mortgage-backed and other securities. Municipal
deposit banking services are provided through a limited purpose commercial bank subsidiary, The
State Bank of Chittenango. Oneida Savings Bank also sells insurance and other commercial services
and products through Bailey &#038; Haskell Associates, Inc., its wholly owned insurance agency
subsidiary, and provides employee benefits consulting services through Benefit Consulting Group,
Inc., its wholly owned consulting services subsidiary. In addition, Oneida Savings Bank provides
risk management services to help mitigate and prevent work related injuries through its wholly
owned subsidiary Workplace Health Solutions, Inc. Oneida Savings Bank is subject to comprehensive
regulation and examination by the Federal Deposit Insurance Corporation and the New York State
Banking Department.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank&#146;s executive offices are located at 182 Main Street, Oneida, New York
13421. Its telephone number at this address is (315)&nbsp;363-2000 and its website address is
<U>www.oneidabank.com</U>. Information on this website is not and should not be considered to be a part
of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The State Bank of Chittenango</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The State Bank of Chittenango is a New York chartered limited purpose commercial bank
headquartered in Chittenango, New York. Oneida Savings Bank acquired State Bank of Chittenango in
2002 and retained the municipal banking operations of the bank in a limited purpose wholly owned
subsidiary. New York State law prohibits a savings bank from soliciting and servicing public funds
(deposits of counties, cities, towns, school districts, etc.). Holding The State Bank of
Chittenango as a limited purpose commercial bank subsidiary has enabled us to offer municipal
deposit banking services throughout our market area. At December&nbsp;31, 2009, State Bank of
Chittenango held $110.6&nbsp;million in assets, consisting primarily of U.S. Government obligations and
mortgage-backed securities. The investment securities maintained at State Bank of Chittenango are
used to collateralize $86.0&nbsp;million in municipal deposits. All disclosures in this prospectus
relating to Oneida Financial Corp.&#146;s investments and deposits include the investments and deposits
that are held by State Bank of Chittenango.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Bailey &#038; Haskell Associates</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bailey &#038; Haskell Associates, Inc. is the wholly owned insurance agency subsidiary of Oneida
Savings Bank and is headquartered in Oneida, New York. It has six other offices in New York State
and one office in South Carolina. Oneida Savings Bank completed the acquisition of Bailey &#038;
Haskell
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Associates in 2000. Bailey &#038; Haskell Associates is a full-service insurance and financial services
firm with over 90 employees providing services to over 19,000 customers. Bailey &#038; Haskell
Associates offers personal and commercial property insurance and other risk management products and
services. Bailey &#038; Haskell Associates represents many leading insurance companies, including
Travelers, CNA, Hartford, Progressive, Cincinnati and Utica National. We have acquired five
insurance agencies in the six years following the acquisition of Bailey &#038; Haskell Associates,
including Parsons, Cote &#038; Company which was added during 2006. All of the acquired insurance
agencies were merged into Bailey &#038; Haskell Associates. The combination of acquired agencies and
organic growth has resulted in total revenue for the year ended December&nbsp;31, 2009 of $9.7&nbsp;million.
All disclosures in this prospectus relating to Oneida Financial Corp. are consolidated to include
the activities of Bailey &#038; Haskell Associates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Benefit Consulting Group</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefit Consulting Group, Inc., originally acquired in 2006, is the wholly owned employee
benefits consulting and retirement plan administration subsidiary of Oneida Savings Bank. Benefit
Consulting Group is headquartered in Oneida, New York and operates from offices in North Syracuse,
New York and satellite offices in several branch offices of Oneida Savings Bank. Benefit
Consulting Group currently serves more than 700 corporate and personal clients and offers employee
benefit related services that are complementary to those provided by Oneida Savings Bank and Bailey
&#038; Haskell Associates. Benefit Consulting Group provides investment management, financial planning
and estate planning services to individuals, and provides defined contribution and benefit plans,
actuarial services and human resources management services to businesses. Benefit Consulting Group
had total revenue of $5.7&nbsp;million for the year ended December&nbsp;31, 2009. All disclosures in this
prospectus relating to Oneida Financial Corp. are consolidated to include the activities of Benefit
Consulting Group.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Workplace Health Solutions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Workplace Health Solutions, Inc. is the wholly owned risk management subsidiary of Oneida
Savings Bank. It is headquartered in Oneida, New York and operates from offices in North Syracuse,
New York. Workplace Health Solutions was established in January&nbsp;2008 as a risk management company
with services to help mitigate and prevent work related injuries. Specifically, Workplace Health
Solutions works with employers to develop informed hiring programs, coordinates employee training
programs and consults with and advises employers relative to workers&#146; compensation coverage and
incidents. In addition, this subsidiary develops a network of medical professionals to evaluate
injured workers and arrange for the proper treatment of and recovery from workplace injuries from a
risk management perspective. Workplace Health Solutions was developed to complement and refer the
products and services offered by our other subsidiaries with an overall philosophy of providing
innovative risk management services. Workplace Health Solutions had total revenue of $491,000 for
the year ended December&nbsp;31, 2009. All disclosures in this prospectus relating to Oneida Financial
Corp. are consolidated to include the activities of Workplace Health Solutions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Oneida Preferred Funding Corp.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank established Oneida Preferred Funding Corp. in 1999 as a wholly owned real
estate investment trust subsidiary. At December&nbsp;31, 2009, Oneida Preferred Funding Corp. held
$51.1&nbsp;million in mortgage and mortgage related assets. All disclosures in this prospectus relating
to Oneida Financial Corp.&#146;s loans and investments include loans and investments that are held by
Oneida Preferred Funding Corp.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Current Organizational Structure</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 1998 Oneida Savings Bank completed its conversion from a mutual savings bank into the
two-tier mutual holding company structure and became a wholly owned subsidiary of Oneida Financial
Corp., a Delaware corporation. Oneida Financial Corp. sold a minority of its common stock to the
public. The remaining majority of its shares were retained by Oneida Financial, MHC, a New York
chartered mutual holding company. In 2001, Oneida Financial Corp. and Oneida Financial, MHC
converted to federal charters and became subject to the exclusive regulation of the Office of
Thrift Supervision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the terms of Oneida Financial, MHC&#146;s plan of conversion and reorganization, Oneida
Financial, MHC will convert from the mutual holding company to the stock holding company corporate
structure. As part of the conversion, we are offering for sale in a subscription offering and
possibly in a community offering and syndicated community offering the majority ownership interest
in Oneida Financial Corp. that is currently held by Oneida Financial, MHC. Upon completion of the
conversion and offering, Oneida Financial, MHC will cease to exist, and we will complete the
transition from partial to full public stock ownership. Upon completion of the conversion, public
stockholders of Oneida Financial Corp. will receive shares of common stock of Oneida Financial-New
in exchange for their shares of Oneida Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following diagram shows our current organizational structure, which is commonly referred
to as the &#147;two-tier&#148; mutual holding company structure:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g22285g2228500.gif" alt="(GRAPHIC)">
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Organizational Structure Following the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the conversion and offering are completed, we will be organized as a fully public
holding company, as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g22285g2228501.gif" alt="(GRAPHIC)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market Area</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conduct business from our headquarters and 10 full service branch offices throughout
Madison and Oneida Counties and 1 full service branch office in Onondaga County in New York. The
City of Oneida is located approximately 30 miles east of Syracuse and 20 miles west of Utica. Our
market area is characterized as rural and serves as a bedroom community to the cities of Syracuse
and Utica, New York. The economy in our market area is relatively diverse with health care,
college/university, financial/insurance and tourism/recreation being the most prominent sectors as
well as light manufacturing and technology related industries. Since 2000, our primary market area
has had population declines, with the exception of Madison County which has generally grown in line
with the New York state average. In view of the current economic downturn and despite the
population trends, our primary market area has remained a stable banking market with lower
unemployment rates than the State of New York and national averages. Median household income
growth rates of persons residing in Oneida, Madison and Onondaga Counties were below that of New
York State and the United States from 2000 to 2009. However, median household income growth rates
in Madison, Oneida and Onondaga Counties are expected to grow at rates above the State of New York
and national averages between 2009 to 2014 according to estimates by SNL Financial.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Business Strategy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business strategy is to grow and improve profitability, consistent with safety and
soundness considerations, by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>continuing our community-oriented focus;</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expanding our geographic reach;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>continuing to improve earnings and diversify our sources of income;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>growing our loan portfolios;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>continuing our conservative underwriting standards while maintaining our strong
asset quality; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>growing our core deposit base.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our strategy is designed to expand our banking relationships with customers and to diversify
our revenue stream. A full description of our products and services begins on page &#95;&#95;&#95;of this
prospectus under the heading &#147;Business of Oneida Financial Corp. and Oneida Savings Bank.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These strategies are intended to guide our investment of the net proceeds of the offering. We
intend to continue to pursue our business strategy after the conversion and the offering, subject
to changes necessitated by future market conditions and other factors. See &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations&#151;Business Strategy&#148; for a
more complete discussion of our business strategy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Reasons for the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are converting to the fully public stock form of ownership and conducting the offering at
this time in order to increase our capital position to enhance our capacity to pursue retail growth
and expansion opportunities, including possible acquisitions of financial institutions or other
financial services companies. We believe that our conversion to a fully public company and the
capital that we raise from the sale of our common stock in the offering will facilitate our
continued growth and the implementation of our business strategy by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>supporting internal growth through increased lending in the communities we serve;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>improving our capital position during a period of significant economic, regulatory
and political uncertainty, especially for the financial services industry;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increasing capital to support acquisitions of financial institutions and other
financial services corporations, including insurance agencies, as opportunities arise,
although we do not currently have any agreements to acquire a financial institution or
other entity;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>enabling us to enhance existing products and services to meet the needs of our
marketplace;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>assisting us in managing interest rate risk; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>improving the liquidity of our shares of common stock and enhancing stockholder
returns through more flexible capital management strategies.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also are undertaking the conversion at this time to reduce the uncertainty to Oneida
Financial Corp. and its stockholders associated with potential changes in applicable statutes,
regulations and policies affecting mutual holding companies. In this regard, recent legislative
proposals would eliminate our primary federal regulator, the Office of Thrift Supervision, and make
the Board of Governors of the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Federal Reserve System the exclusive regulator of all holding companies, including mutual
holding companies. The Federal Reserve Board currently does not allow mutual holding companies to
waive the receipt of dividends from their mid-tier holding company subsidiaries, and any waived
dividends would dilute the ownership interests of minority stockholders in the event of a
second-step conversion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Terms of the Conversion and Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to Oneida Financial, MHC&#146;s plan of conversion and reorganization, our organization
will convert from a partially public to a fully public holding company structure. In the
conversion, we are selling shares that represent Oneida Financial, MHC&#146;s ownership interest in
Oneida Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are offering between 3,346,875 and 4,528,125 shares of common stock to eligible depositors
of Oneida Savings Bank, to our tax-qualified employee benefit plans and, to the extent shares
remain available, to residents of the New York counties of Chenango, Cortland, Herkimer, Lewis,
Madison, Oneida, Onondaga, Oswego and Otsego, to our existing public stockholders and to the
general public. The number of shares of common stock to be sold may be increased to up to
5,207,344 shares as a result of regulatory considerations, demand for the shares of common stock in
the offering, or changes in the market for financial institution stocks in particular. Unless the
number of shares of common stock to be offered is increased to more than 5,207,344 shares or
decreased to fewer than 3,346,875 shares, or the offering is extended beyond &#091;extension date&#093;,
subscribers will not have the opportunity to change or cancel their stock orders once submitted.
If the number of shares of common stock to be sold is increased to more than 5,207,344 shares or
decreased to fewer than 3,346,875 shares, or if the offering is extended beyond &#091;extension date&#093;,
we will resolicit subscribers, and they will have the opportunity to maintain, change or cancel
their orders. If a subscriber does not provide us with a written indication of intent, we will
return the subscriber&#146;s funds, with interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purchase price of each share of common stock to be offered for sale in the offering is
$8.00. All investors will pay the same purchase price per share. Investors will not be charged a
commission to purchase shares of common stock in the offering. Stifel, Nicolaus &#038; Company,
Incorporated, our conversion advisor and marketing agent in the offering, will use its best efforts
to assist us in selling shares of our common stock. Stifel, Nicolaus &#038; Company, Incorporated is
not obligated to purchase any shares of common stock in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How We Determined the Offering Range and the $8.00 Per Share Offering Price</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount of common stock we are offering is based on an independent appraisal of the
estimated market value of Oneida Financial-New, assuming the conversion and offering are completed.
RP Financial, LC., our independent appraiser, has estimated that, as of February&nbsp;19, 2010, this
market value ranged from $48.5&nbsp;million to $65.6&nbsp;million, with a midpoint of $57.1&nbsp;million. Based
on this valuation, the ownership interest of Oneida Financial, MHC being sold in the offering and
the $8.00 per share price, the number of shares of common stock being offered for sale by Oneida
Financial-New will range from 3,346,875 shares to 4,528,125 shares. The purchase price of $8.00
per share was determined by us, taking into account, among other factors, the market price of our
stock prior to adoption of the plan of conversion, the requirement under Office of Thrift
Supervision regulations that the common stock be offered in a manner that will achieve the widest
distribution of the stock, and desired liquidity in the common stock after the offering. If market
conditions so warrant, the appraised value can be increased to $75.5&nbsp;million, the adjusted maximum
of the appraisal, and the number of shares sold in the offering can be increased to 5,207,344.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent appraisal is based in part on Oneida Financial Corp.&#146;s financial condition and
results of operations, the pro forma impact of the additional capital raised by the sale of shares
of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">common stock in the offering, and an analysis of a peer group of 10 publicly traded savings
bank and thrift holding companies that RP Financial considers comparable to Oneida Financial Corp.
The appraisal peer group consists of the following companies. Total assets are as of December&nbsp;31,
2009, unless otherwise indicated.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Company Name and Ticker Symbol</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Exchange</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Headquarters</B></TD>
    <TD>&nbsp;</TD>

    <TD nowrap align="center" style="border-bottom: 1px solid #000000" colspan="2"><B>Total Assets</B></TD>
<TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">(in millions)</TD>
<TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Beacon Federal Bancorp (BFED)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>East Syracuse, NY</TD>
    <TD>&nbsp;</TD>
<TD>$</TD>
    <TD align="right" valign="top">1,070</TD>
<TD>(1)&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Elmira Savings Bank, FSB (ESBK)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Elmira, NY</TD>
    <TD>&nbsp;</TD>
<TD>$</TD>
    <TD align="right" valign="top">506</TD>
<TD>(1)&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ESSA Bancorp, Inc. (ESSA)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Stroudsburg, PA</TD>
    <TD>&nbsp;</TD>
<TD>$</TD>
    <TD align="right" valign="top">1,034</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fidelity Bancorp, Inc.<SUP style="font-size: 85%; vertical-align: text-top">.</SUP> (FSBI)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Pittsburgh, PA</TD>
    <TD>&nbsp;</TD>
<TD>$</TD>
    <TD align="right" valign="top">736</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Harleysville Savings Financial Corp. (HARL)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Harleysville, PA</TD>
    <TD>&nbsp;</TD>
<TD>$</TD>
    <TD align="right" valign="top">840</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Newport Bancorp, Inc. (NFSB)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Newport, RI</TD>
    <TD>&nbsp;</TD>
<TD>$</TD>
    <TD align="right" valign="top">459</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rome Bancorp, Inc. (ROME)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Rome, NY</TD>
    <TD>&nbsp;</TD>
<TD>$</TD>
    <TD align="right" valign="top">330</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TF Financial Corp. (THRD)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Newtown, PA</TD>
    <TD>&nbsp;</TD>
<TD>$</TD>
    <TD align="right" valign="top">714</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Westfield Financial, Inc. (WFD)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Westfield, MA</TD>
    <TD>&nbsp;</TD>
<TD>$</TD>
    <TD align="right" valign="top">1,191</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">WVS Financial Corp. (WVFC)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Pittsburgh, PA</TD>
    <TD>&nbsp;</TD>
<TD>$</TD>
    <TD align="right" valign="top">392</TD>
<TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As of September&nbsp;30, 2009.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent valuation appraisal considered the pro forma impact of the offering.
Consistent with the Office of Thrift Supervision appraisal guidelines, the appraisal considered
three primary methodologies: the pro forma price-to-book value approach applied to both reported
book value and tangible book value; the pro forma price-to-earnings approach applied to reported
and core earnings; and the pro forma price-to-assets approach. Based on RP Financial&#146;s conclusion
that asset size is not a strong determinant of market value, RP Financial did not place significant
weight on the pro forma price-to assets approach in reaching its conclusions. RP Financial placed
the greatest emphasis on the price-to earnings and price-to-book approaches in estimating pro forma
market value. The market value ratios applied in these methodologies were based upon the current
market valuations of the peer group companies, subject to valuation adjustments applied by RP
Financial to account for differences between Oneida Financial Corp. and the peer group. The
following table presents a summary of selected pricing ratios for the peer group companies and
Oneida Financial-New (on a pro forma basis) based on earnings and other information as of and for
the twelve months ended December&nbsp;31, 2009, and stock price information for the peer group companies
as of February&nbsp;19, 2010, as reflected in the appraisal report. Compared to the average pricing of
the peer group, our pro forma pricing ratios at the maximum of the offering range indicated a
discount of 13.4% on a price-to-earnings basis, a discount of 8.0% on a price-to-book basis and a
premium of 20.5% on a price-to-tangible book basis. The pricing ratios result from our generally
higher level of earnings than the companies in the peer group, and comparable equity. The premium
price-to-tangible book value reflects the goodwill related to our subsidiaries, which is supported
by their contribution to our earnings. Our board of directors, in reviewing and approving the
appraisal, considered the range of price-to-earnings multiples and the range of price-to-book value
and price-to-tangible book value ratios at the different amounts of shares to be sold in the
offering, and did not consider one valuation approach to be more important than the other.
Instead, in approving the appraisal, the board concluded that these ranges represented the
appropriate balance of the three approaches to establishing our valuation, and the number of shares
to be sold, in comparison to the peer group institutions. The estimated appraised value and the
resulting premium/discount took into consideration the potential financial impact of the conversion
and offering as well as the trading price of Oneida Financial Corp. common stock. The closing price
of the common stock was $9.32 per share on February&nbsp;8, 2010, the last trading day immediately
preceding the announcement of the conversion, and $9.50 per share on February&nbsp;19, 2010, the
effective date of the appraisal.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="46%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Price-to-earnings</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Price-to-book</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Price-to-tangible</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>multiple (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>value ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>book value ratio</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Oneida
Financial-New (on
a pro forma
basis, assuming
completion of the
conversion)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjusted Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.42x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">81.88</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">112.04</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.09x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">75.12</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">104.85</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Midpoint</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.05x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">68.61</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">97.80</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Minimum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.99x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">61.40</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">89.49</TD>
    <TD nowrap>%</TD>
</TR>
<TR><Td>&nbsp;</Td></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Valuation of peer
group companies,
all of which are
fully converted
(on an historical
basis)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Averages</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.58x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">81.64</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">87.14</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Medians</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.22x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">88.82</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">92.01</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Price-to-earnings multiples calculated by RP Financial in the independent appraisal are
based on an estimate of &#147;core&#148; earnings. Core earnings were determined by adjusting reported
earnings for the twelve months ended December&nbsp;31, 2009 to omit trading portfolio gains, OTTI
charges and gains on the sale of securities. These ratios are different than those presented
in &#147;Pro Forma Data.&#148;</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The independent appraisal does not indicate market value. Do not assume or expect that
our valuation as indicated in the appraisal means that after the conversion and offering the shares
of our common stock will trade at or above the $8.00 per share purchase price. Furthermore, the
pricing ratios presented in the appraisal were utilized by RP Financial to estimate our market
value and not to compare the relative value of shares of our common stock with the value of the
capital stock of the peer group. The value of the capital stock of a particular company may be
affected by a number of factors such as financial performance, asset size and market location.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent appraisal will be updated prior to the completion of the conversion. If the
appraised value changes to either below $48.5&nbsp;million or above $75.5&nbsp;million, we will resolicit
persons who submitted stock orders. See &#147;The Conversion and Offering&#151;Stock Pricing and Number of
Shares to be Issued.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Exchange of Existing Shares of Oneida Financial Corp. Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are currently a stockholder of Oneida Financial Corp., your shares will be canceled at
the conclusion of the offering and become the right to receive shares of common stock of Oneida
Financial-New. The number of shares of common stock you receive will be based on an exchange ratio
determined as of the closing of the conversion, which will depend upon our final appraised value
and the results of the offering. The following table shows how the exchange ratio will adjust,
based on the valuation of Oneida Financial-New and the number of shares of common stock issued in
the offering. The table also shows the number of shares of Oneida Financial-New common stock a
hypothetical owner of Oneida Financial Corp. common stock would receive in exchange for 100 shares
of Oneida Financial Corp. common stock owned at the consummation of the conversion, depending on
the number of shares of common stock issued in the offering.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Shares of Oneida</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B> Financial-New</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>to be Issued for &nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Equivalent</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares to be</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Shares to be Sold in This</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Shares of Oneida</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Value of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Received</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Financial Corp.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>to be Issued in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Based Upon</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>for 100</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Conversion and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Exchange</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Current Market</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Existing</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Price (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minimum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,346,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">55.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,717,781</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">44.81</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,064,656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.7766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Midpoint</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,937,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,197,390</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,134,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,528,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,676,998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,205,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.0507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">105</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15% above Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,207,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,228,548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,435,892</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the value of shares of Oneida Financial-New common stock received in the
conversion by a holder of one share of Oneida Financial Corp., at the exchange ratio, assuming the
market price of $8.00 per share.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you own shares of Oneida Financial Corp. common stock in a brokerage account in
&#147;street name,&#148; you do not need to take any action to exchange your shares of common stock. If you
own shares in the form of Oneida Financial Corp. stock certificates, our exchange agent will mail
to you a transmittal form with instructions to surrender your stock certificates after consummation
of the conversion. New certificates of Oneida Financial-New common stock will be mailed to you
within five business days after the exchange agent receives your properly executed transmittal form
and your Oneida Financial Corp. stock certificates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>You should not submit a stock certificate until you receive a transmittal form.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractional shares of Oneida Financial-New common stock will be issued to any public
stockholder of Oneida Financial Corp. For each fractional share that otherwise would be issued,
Oneida Financial-New will pay in cash an amount equal to the product obtained by multiplying the
fractional share interest to which the holder otherwise would be entitled by the $8.00 per share
subscription price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All currently outstanding options to purchase shares of Oneida Financial Corp. common stock
will expire on April&nbsp;25, 2010, prior to the consummation of the conversion, unless previously
exercised. At December&nbsp;31, 2009, there were 122,175 outstanding options to purchase shares of
Oneida Financial Corp. common stock, all of which have vested. If any such options are exercised
prior to their expiration on April&nbsp;25, 2010, they will be funded with newly issued shares rather
than through open market purchases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How We Intend to Use the Proceeds From the Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We estimate net proceeds from the offering will be between $24.4&nbsp;million and $33.5&nbsp;million, or
$38.8&nbsp;million if the offering range is increased by 15%. Oneida Financial-New intends to retain
between $11.1&nbsp;million and $15.3&nbsp;million of the net proceeds, or $17.7&nbsp;million if the offering range
is increased by 15%. Approximately $12.2&nbsp;million to $16.8&nbsp;million of the net proceeds (or $19.4
million if the offering range is increased by 15%) will be invested in Oneida Savings Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A portion of the net proceeds retained by Oneida Financial-New will be loaned to the employee
stock ownership plan to fund its purchase of shares of common stock in the offering (between
133,875 shares and 181,125 shares, or 208,294 shares if the offering is increased by 15%). The
employee stock ownership plan was established in connection with our 1998 stock offering. As of
December&nbsp;31, 2009, there were no shares remaining unallocated in the plan. The remainder of the net
proceeds will be used for general corporate purposes, including paying cash dividends and
repurchasing shares of our common stock. Funds invested in Oneida Savings Bank will be used to
support increased lending and new products and services. The net proceeds retained by Oneida
Financial-New and Oneida Savings Bank also may be used to expand our retail banking franchise by
acquiring new branches or by acquiring other financial institutions or other financial services
companies, including insurance agencies, as opportunities arise, although we do not currently have
any agreements or understandings regarding any acquisition transaction and it is impossible to
determine when, if ever, such opportunities may arise. Initially, a substantial portion of the net
proceeds will be invested in short-term investments, investment-grade debt obligations and
mortgage-backed securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please see the section of this prospectus entitled &#147;How We Intend to Use the Proceeds from the
Offering&#148; for more information on the proposed use of the proceeds from the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Dividend Policy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial Corp. has paid a semiannual cash dividend since August&nbsp;1999. During the six
months ended December&nbsp;31, 2009, Oneida Financial Corp. paid a semiannual cash dividend of $0.24 per
share, which equals $0.48 per share on an annualized basis. After the conversion, we intend to
continue
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to pay an annual cash dividend of $0.48 per share, payable quarterly. This dividend represents a
6% annual yield based on the offering price of $8.00 per share. However, after the conversion, the
dividend rate and the continued payment of dividends will primarily depend on our earnings,
alternative uses for capital, capital requirements, acquisition opportunities, and our financial
condition and results of operations, and, to a lesser extent, statutory and regulatory limitations,
tax considerations and general economic conditions. No assurance can be given that we will
continue to pay dividends or that they will not be reduced in the future. Additionally, we cannot
guarantee that the amount of dividends that we pay after the conversion and offering will be equal
to the per share dividend amount that Oneida Financial Corp. shareholders currently receive.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Selected Consolidated Financial and Other Data of Oneida Financial Corp.&#148; and &#147;Market for
the Common Stock&#148; for information regarding our historical dividend payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Purchases by Officers and Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect our directors and executive officers, together with their associates, to subscribe
for 167,000 shares (or approximately $1.3&nbsp;million) of common stock in the offering. The purchase
price paid by them will be the same $8.00 per share price paid by all other persons who purchase
shares of common stock in the offering. Following the conversion, our directors and executive
officers, together with their associates, are expected to own 860,119 shares of common stock, or
12.06% of our total outstanding shares of common stock at the midpoint of the offering range.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Benefits to Management and Potential Dilution to Stockholders Resulting from the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Employee Stock Ownership Plan. </I></B>Our tax-qualified employee stock ownership plan expects to
purchase up to 4.0% of the shares of common stock we sell in the offering, or 208,294 shares of
common stock, assuming we sell the maximum, as adjusted, number of shares proposed to be sold
which, when combined with the existing employee stock ownership plan, will be less than 8% of the
shares outstanding following the conversion. If we receive orders for more shares of common stock
than the maximum of the offering range, the employee stock ownership plan will have first priority
to purchase shares over this maximum, up to a total of 4% of the shares of common stock sold in the
offering. We reserve the right to purchase shares of common stock in the open market following the
offering in order to fund all or a portion of the employee stock ownership plan. Assuming the
employee stock ownership plan purchases 157,500 shares in the offering, at the midpoint of the
offering range, we will recognize additional compensation expense of approximately $126,000
annually (or approximately $77,000 after tax) over a 10-year period, assuming the loan to the
employee stock ownership plan has a 10-year term and an interest rate equal to the prime rate as
published in <I>The Wall Street Journal</I>, and the shares of common stock have a fair market value of
$8.00 per share for the full 10-year period. If, in the future, the shares of common stock have a
fair market value greater or less than $8.00, the compensation expense will increase or decrease
accordingly. We also reserve the right to have the employee stock ownership plan purchase more
than 4% of the shares of common stock sold in the offering if necessary to complete the offering at
the minimum of the offering range. We anticipate that the additional compensation expense for the
purchases by our employee stock ownership program will be offset in part by the reduction in
discretionary contributions that we have made in recent years to our employee stock ownership
plan. For example, in the year ended December&nbsp;31, 2009, we contributed approximately $300,000 to
the employee stock ownership plan to fund the purchase of shares of our common stock in the open
market. It is expected that these planned reductions in discretionary contributions will offset
the contributions made to pay off the new loan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stock-Based Incentive Plan. </I></B>We also intend to implement a new stock-based incentive plan no
earlier than six months after completion of the conversion. Stockholder approval of this plan will
be required. If implemented within 12&nbsp;months following the completion of the conversion, the
stock-based
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">incentive plan will reserve a number of shares up to 4% of the shares of common stock sold in
the offering, or up to 208,294 shares of common stock at the maximum as adjusted of the offering
range, for awards of restricted stock to key employees and directors, at no cost to the recipients,
subject to adjustment as may be required by Office of Thrift Supervision regulations or policy to
reflect restricted stock awards previously made by Oneida Financial Corp. or Oneida Savings Bank.
If the shares of common stock awarded under the stock-based incentive plan come from authorized but
unissued shares of common stock, stockholders would experience dilution of up to approximately
2.16% in their ownership interest in Oneida Financial-New. If implemented within 12&nbsp;months
following the completion of the conversion, the stock-based incentive plan will also reserve a
number of shares up to 10% of the shares of common stock sold in the offering, or up to 520,734
shares of common stock at the maximum, as adjusted, of the offering range, for issuance pursuant to
grants of stock options to key employees and directors, subject to adjustment as may be required by
Office of Thrift Supervision regulations or policy to reflect stock options previously granted by
Oneida Financial Corp. or Oneida Savings Bank. If the shares of common stock issued upon the
exercise of options come from authorized but unissued shares of common stock, stockholders would
experience dilution of up to 5.23% in their ownership interest in Oneida Financial-New. Restricted
stock awards and stock option grants made pursuant to a plan implemented within twelve months
following the completion of the conversion and the offering would be subject to Office of Thrift
Supervision regulations, including a requirement that stock awards and stock options vest over a
period of not less than five years. If the stock-based incentive plan is adopted more than one
year after the completion of the conversion, awards of restricted stock or grants of stock options
under the plan may exceed the percentage limitations set forth above. For a description of our
current stock-based incentive plans, see &#147;Management&#151;Benefit Plans.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the number of shares of common stock and the aggregate dollar
value of grants that are expected under the new stock-based incentive plan as a result of the
conversion. The table also shows the dilution to stockholders if all such shares are issued from
authorized but unissued shares, instead of shares purchased in the open market. A portion of the
stock grants shown in the table below may be made to non-management employees.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="43%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Dilution</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Number of Shares to be Granted or Purchased (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Resulting</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Value of Grants, in</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>As a</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>From</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Thousands (2)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>At</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Issuance of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>At</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>At</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Common</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares for</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>At</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Maximum,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Minimum of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>as adjusted</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Stock to be</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Stock-Based</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Minimum</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>as adjusted,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Sold in the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Incentive</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Offering</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Range</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Range</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Plans (3)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Range</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Range</B></TD>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left"><B>(Dollars in thousands)</B></TD>
</TR>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employee stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">208,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,071</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,666</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restricted stock awards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">208,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,071</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,666</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">334,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">520,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,614</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">602,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">937,322</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">18.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.17</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,180</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,946</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The table assumes that the stock-based incentive plan awards a number of options and
restricted stock equal to 10% and 4% of the shares of common stock sold in the offering as if
the plan is implemented within 12&nbsp;months after the completion of the conversion and offering.
If the stock-based incentive plan is implemented more than 12&nbsp;months after the completion of
the conversion and offering, grants of options and restricted stock may exceed these
percentage limitations.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The actual value of restricted stock awards will be determined based on their fair value as
of the date grants are made. For purposes of this table, fair value for stock awards is
assumed to be the same as the offering price of $8.00 per share. The fair value of stock
options has been estimated at $3.10 per option using the Black-Scholes option pricing model,
adjusted for the exchange ratio, with the following assumptions: a grant-date share price and
option exercise price of $8.00; an expected option life of 10&nbsp;years; a dividend yield of 5%;
an interest rate of 2.96%; and a volatility rate of 62.09%. The actual value of option grants
will be determined by the grant-date fair value of the options, which will depend on a number
of factors, including the valuation assumptions used in the option pricing model ultimately
adopted.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the dilution of stock ownership interest. No dilution is reflected for the
employee stock ownership plan because such shares are assumed to be purchased in the offering.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may fund our stock-based incentive plan through open market purchases, as opposed to
new issuances of stock; however, Office of Thrift Supervision regulations do not permit us to
repurchase our shares during the first year following the completion of this offering except to
fund the grants of restricted stock under our stock-based incentive plan or under extraordinary
circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents information as of December&nbsp;31, 2009 regarding our existing
employee stock ownership plan, our 2000 Stock Option Plan, our 2000 Recognition and Retention Plan,
our 2006 Recognition and Retention Plan, our proposed employee stock ownership plan purchases, and
our proposed stock-based incentive plan. The table below assumes that 8,205,123 shares are
outstanding after the offering, which includes the sale of 4,528,125 shares in the offering at the
maximum of the offering range and the issuance of 3,676,998 shares in exchange for shares of Oneida
Financial Corp. using an exchange ratio of 1.0507. It also assumes that the value of the stock is
$8.00 per share.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares Outstanding</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares at Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated Value of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>After the</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Existing and New Stock Benefit Plans</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Participants</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Offering Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Conversion</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Employee Stock Ownership Plan:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares purchased in 1998 offering (1) (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">314,848</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,518,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.84</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares to be purchased in this offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,449,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total employee stock ownership plan shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">495,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,967,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.05</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px"><B>Restricted Stock Awards:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Directors, Officers<br>and Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2000 Recognition and Retention Plan (1) (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">196,780</TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,574,240</TD>
    <TD nowrap>(6)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.40</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2006 Recognition and Retention Plan (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">84,056</TD>
    <TD nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">672,448</TD>
    <TD nowrap>(6)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">New shares of restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1,449,000</TD>
    <TD nowrap>(6)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total shares of restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">461,961</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,695,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.63</TD>
    <TD nowrap>%(9)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px"><B>Stock Options:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Directors, Officers<br>and Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2000 Stock Option Plan (1) (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">393,559</TD>
    <TD nowrap>(7)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,220,033</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.80</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">New stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">452,813</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1,403,720</TD>
    <TD nowrap>(8)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">846,372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,623,753</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.32</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total of stock benefit plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,804,306</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,287,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">22.00</TD>
    <TD nowrap>%(9)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares indicated has been adjusted for the 1.0507 exchange ratio at the
maximum of the offering range.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares has been adjusted to reflect 3 for 2 stock splits in 2002 and 2004.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>As of December&nbsp;31, 2009, all of these shares, or 299,655 shares prior to adjustment for the
exchange, have been allocated.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>As of December&nbsp;31, 2009, 185,342 of these shares, or 176,399 shares prior to adjustment for
the exchange, have been awarded and have vested.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>As of December&nbsp;31, 2009, 83,636 of these shares, or 79,600 shares prior to adjustment for the
exchange, have been awarded, and 66,404 of these shares, or 63,200 shares prior to adjustment
for the exchange, have vested. All unvested shares will vest on December&nbsp;31, 2010.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>The value of restricted stock awards is determined based on their fair value as of the date
grants are made. For purposes of this table, the fair value of awards under the new
stock-based incentive plan is assumed to be the same as the offering price of $8.00 per share.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>As of December&nbsp;31, 2009, options to purchase 383,846 of these shares, or 365,325 shares prior
to adjustment for the exchange, have been awarded and have vested, and 9,711 options, or 9,243
options prior to the adjustment for the exchange, remain available for future grants.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>The weighted-average fair value of stock options has been estimated at $3.10 per option,
adjusted for the exchange ratio, using the Black-Scholes option pricing model. The fair value
of stock options uses the Black-Scholes option pricing model with the following assumptions:
exercise price, $8.00; trading price on date of grant, $8.00; dividend yield, 5%; expected
life, 10&nbsp;years; expected volatility, 62.09%; and risk-free interest rate, 2.96%.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares of restricted stock and stock options set forth in the table would
exceed regulatory limits if a stock-based incentive plan was adopted within one year of the
completion of the conversion and offering. Accordingly, the number of new shares of
restricted stock and stock options set forth in the table would have to be reduced so that the
aggregate amount of outstanding stock awards would be 4.0% or less (3.0% or less if pro forma
tangible capital after the conversion is less than 10%) and outstanding stock options would be
10.0% or less, unless we obtain a waiver from the OTS, or we implement the incentive plan more
than twelve months following the completion of the conversion and offering. Our current
intention is to implement a new stock-based incentive plan no earlier than twelve months after
completion of the conversion and offering.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The value of the shares awarded under the stock-based incentive plan will be based in
part on the price of Oneida Financial-New&#146;s common stock at the time the shares are awarded. The
stock-based
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">incentive plan is subject to stockholder approval, and cannot be implemented until at least
six months after the offering. The following table presents the total value of all shares that
would be available for award and issuance under the stock-based incentive plan, assuming the shares
are awarded when the market price of our common stock ranges from $6.00 per share to $12.00 per
share.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>

    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>157,500</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>208,294</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>133,875 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares Awarded</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>181,125</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares Awarded</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Awarded at Minimum</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>at Midpoint of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares Awarded</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>at Maximum of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">

    <TD nowrap align="left" style="border-bottom: 1px solid #000000" colspan="2"><B>Share Price</B></TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>at Maximum of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Range, As Adjusted</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD>$</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">6.00</DIV></TD>

    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">803,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">945,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,086,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,249,764</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">8.00</DIV></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,071,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,260,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,449,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,666,352</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.00</DIV></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,338,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,575,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,811,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,082,940</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.00</DIV></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,606,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,890,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,173,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,499,528</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The grant-date fair value of the options granted under the stock-based incentive plan
will be based in part on the price of shares of common stock of Oneida Financial-New at the time
the options are granted. The value also will depend on the various assumptions utilized in the
option pricing model ultimately adopted. The following table presents the total estimated value of
the options to be available for grant under the stock-based incentive plan, assuming the market
price and exercise price for the stock options are equal and the range of market prices for the
shares is $6.00 per share to $12.00 per share.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>520,734</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>334,688</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>393,750</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>452,813</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Options at Maximum</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Grant-Date Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Options at Minimum</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Options at Midpoint</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Options at Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Range, As</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">

    <TD nowrap align="left" style="border-bottom: 1px solid #000000" colspan="2"><B>Exercise Price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value Per Option</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Adjusted</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD>$</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">6.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">779,823</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">917,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,055,054</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,213,310</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">8.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,037,533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,220,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,403,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,614,275</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.88</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,298,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,527,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,756,914</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,020,448</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,556,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,830,938</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,105,580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,421,413</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The tables presented above are provided for informational purposes only. There can be no
assurance that our stock price will not trade below $8.00 per share. Before you make an investment
decision, we urge you to read this prospectus carefully, including, but not limited to, the section
entitled &#147;Risk Factors&#148; beginning on page &#95;&#95;&#95;.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Persons Who May Order Shares of Common Stock in the Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are offering the shares of common stock in a &#147;subscription offering&#148; in the following
descending order of priority:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>First, to depositors with accounts at Oneida Savings Bank with aggregate
balances of at least $50 at the close of business on December&nbsp;31, 2008.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Second, to our tax-qualified employee benefit plans, including Oneida Savings
Bank&#146;s employee stock ownership plan.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Third, to depositors with accounts at Oneida Savings Bank with aggregate
balances of at least $50 at the close of business on March&nbsp;31, 2010.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fourth, to depositors of Oneida Savings Bank at the close of business on &#091;VRD&#093;.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of common stock not purchased in the subscription offering may be offered for sale to
the general public in a &#147;community offering,&#148; with a preference given first to natural persons
residing in the New York counties of Chenango, Cortland, Herkimer, Lewis, Madison, Oneida,
Onondaga, Oswego and Otsego, and then to Oneida Financial Corp. public stockholders as of
&#091;stockholder record date&#093;. The
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">community offering, if held, may begin concurrently with, during or promptly after the
subscription offering as we may determine at any time. We also may offer for sale shares of common
stock not purchased in the subscription offering or community offering through a &#147;syndicated
community offering&#148; managed by Stifel, Nicolaus &#038; Company, Incorporated. We have the right to
accept or reject, in our sole discretion, orders received in the community offering or syndicated
community offering. Any determination to accept or reject purchase orders in the community
offering and the syndicated community offering will be based on the facts and circumstances
available to management at the time of the determination.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we receive orders for more shares than we are offering, we may not be able to fully or
partially fill your order. Shares will be allocated first to categories in the subscription
offering. A detailed description of share allocation procedures can be found in the section of
this prospectus entitled &#147;The Conversion and Offering.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Limits on How Much Common Stock You May Purchase</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The minimum number of shares of common stock that may be purchased is 25.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B><I>&nbsp;</I></B></TD>
    <TD width="1%"><B><I>&nbsp;</I></B></TD>
    <TD><B><I>If you are not currently an Oneida Financial Corp. stockholder &#151;</I></B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No individual may purchase more than 37,500 shares ($300,000) of common stock. If any of the
following persons purchases shares of common stock, their purchases, in all categories of the
offering, when combined with your purchases, cannot exceed 75,000 shares ($600,000) of common
stock:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>your spouse or relatives of you or your spouse living in your house;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>most companies, trusts or other entities in which you are a trustee, have a
substantial beneficial interest or hold a senior position; or</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>other persons who may be your associates or persons acting in concert with you.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless we determine otherwise, persons having the same address and persons exercising
subscription rights through qualifying deposit accounts registered to the same address will be
subject to the overall purchase limitation of 75,000 shares ($600,000).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See the detailed description of &#147;acting in concert&#148; and &#147;associate&#148; in the section of this
prospectus headed &#147;The Conversion and Offering&#151;Limitations on Common Stock Purchases.&#148;
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B><I>&nbsp;</I></B></TD>
    <TD width="1%"><B><I>&nbsp;</I></B></TD>
    <TD><B><I>If you are currently an Oneida Financial Corp. stockholder &#151;</I></B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the above purchase limitations, there is an ownership limitation for
stockholders other than our employee stock ownership plan. Shares of common stock that you
purchase in the offering individually and together with persons described above, <I>plus </I>any shares
you and they receive in exchange for existing shares of Oneida Financial Corp. common stock, may
not exceed 5% of the total shares of common stock to be issued and outstanding after the completion
of the conversion. However, any Oneida Financial Corp. stockholder who currently owns more than 5%
of the total shares issued and outstanding will not be required to divest any shares of common
stock they currently own as a result of this limit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to Office of Thrift Supervision approval, we may increase or decrease the purchase and
ownership limitations at any time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that the maximum purchase limitation is increased to 5% of the shares sold in the
offering, such limitation may be further increased to 9.99%, provided that orders for shares of
common
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">stock exceeding 5% of the shares sold in the offering shall not exceed in the aggregate 10.0%
of the total shares sold in the offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See the detailed description of purchase limitations and definitions of &#147;acting in concert&#148;
and &#147;associate&#148; in &#147;The Conversion and Offering&#151;Additional Limitations on Common Stock Purchases.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How You May Purchase Shares of Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the subscription offering and community offering, you may pay for your shares only by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>personal check, bank check or money order made payable directly to Oneida
Financial Corp.; or</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>authorizing us to withdraw funds from the types of Oneida Savings Bank deposit
accounts designated on the stock order form.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank is not permitted to lend funds to anyone for the purpose of purchasing
shares of common stock in the offering. Additionally, you may not use an Oneida Savings Bank line
of credit check or third party check to pay for shares of common stock. Please do not submit cash
or wire transfers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You can subscribe for shares of common stock in the offering by delivering a signed and
properly completed original stock order form, together with full payment payable to Oneida
Financial Corp. or authorization to withdraw funds from one or more of your Oneida Savings Bank
deposit accounts, provided that the stock order form is received before 2:00 p.m., Eastern Time, on
&#091;expiration date&#093;, which is the end of the offering period. Checks and money orders will be
deposited with Oneida Savings Bank or another insured depository institution upon receipt. We will
pay interest at Oneida Savings Bank&#146;s passbook savings rate from the date funds are processed until
completion or termination of the conversion, at which time subscribers will receive interest
checks. You may not designate a withdrawal from Oneida Savings Bank accounts with check-writing
privileges. Please provide a check instead. If you request direct withdrawal, we reserve the
right to interpret that as your authorization to treat those funds as if we had received a check
for the designated amount, and we will immediately withdraw the amount from your checking account.
You may not designate a withdrawal from an Oneida Savings Bank individual retirement account or
other retirement account. If you wish to use funds in such an account, please see &#147;&#151;Using IRA
Funds&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withdrawals from certificates of deposit to purchase shares of common stock in the offering
may be made without incurring an early withdrawal penalty. If a withdrawal results in a
certificate account with a balance less than the applicable minimum balance requirement, the
certificate will be canceled at the time of withdrawal without penalty and the remaining balance
will earn interest at the current passbook rate subsequent to the withdrawal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All funds authorized for withdrawal from deposit accounts at Oneida Savings Bank must be in
the accounts at the time the stock order is received. However, funds will not be withdrawn from the
accounts until the completion of the offering and will earn interest within the account at the
applicable deposit account rate until that time. A hold will be placed on those funds when your
stock order is received, making the designated funds unavailable to you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds withdrawn from deposit accounts at Oneida Savings Bank may reduce or eliminate the
depositor&#146;s liquidation rights. Please see the section of this prospectus entitled &#147;The Conversion
and Offering&#151;Liquidation Rights&#148; for further information.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are not required to accept copies or facsimiles of stock order forms. By signing the stock
order form, you are acknowledging both receipt of this prospectus and that the shares of common
stock are not deposits or savings accounts that are federally insured or otherwise guaranteed by
Oneida Savings Bank, Oneida Financial-New or the federal government. After we receive an order for
shares of our common stock, the order cannot be cancelled or changed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Using IRA Funds</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may be able to subscribe for shares of common stock using funds in your individual
retirement account, or IRA, at Oneida Savings Bank or elsewhere. However, shares of common stock
must be held in a self-directed retirement account, such as those offered by a brokerage firm or
Oneida Savings Bank&#146;s Trust Department. By regulation, Oneida Savings Bank&#146;s individual retirement
accounts that were not established through our Trust Department are not self-directed, so they
cannot be invested in our common stock. If you wish to use some or all of the funds in your Oneida
Savings Bank individual retirement account, the applicable funds must be transferred to a
self-directed account maintained by an independent custodian or trustee, such as a brokerage firm
or our Trust Department. If you do not have such an account, you will need to establish one before
placing your stock order. An annual administrative fee may be payable to the independent trustee.
Because individual circumstances differ and processing of retirement fund orders takes additional
time, we recommend that you contact our Stock Information Center promptly, preferably at least two
weeks before the &#091;expiration date&#093; offering deadline, for assistance with purchases using your
individual retirement account or other retirement account that you may have at Oneida Savings Bank
or elsewhere. Whether you may use such funds for the purchase of shares in the stock offering may
depend on timing constraints and, possibly, limitations imposed by the institution where the funds
are held.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Delivery of Stock Certificates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates representing shares of common stock sold in the subscription offering and
community offering will be mailed by first class mail to the persons entitled thereto at the
certificate registration address noted by them on the order form, as soon as practicable following
consummation of the offering and receipt of all necessary regulatory approvals. <B>It is possible
that until certificates for the common stock are delivered to purchasers, purchasers might not be
able to sell the shares of common stock that they ordered, even though the common stock will have
begun trading. </B>Your ability to sell shares of common stock before you receive stock certificates
will depend upon the arrangements you may make with your brokerage firm. If you are currently a
stockholder of Oneida Financial Corp., see &#147;The Conversion and Offering&#151;Exchange of Existing
Stockholders&#146; Stock Certificates.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>You May Not Sell or Transfer Your Subscription Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office of Thrift Supervision regulations prohibit you from transferring your subscription
rights. If you order shares of common stock in the subscription offering, you will be required to
acknowledge in writing that you are purchasing the common stock for yourself and that you have no
agreement or understanding to sell or transfer your subscription rights. We intend to take legal
action, including reporting persons to federal agencies, against anyone who we believe has sold or
transferred his or her subscription rights. We will not accept your order if we have reason to
believe that you have sold or transferred your subscription rights. On the stock order form, you
may not add the names of others for joint stock registration who do not have subscription rights or
who qualify only in a lower subscription offering priority than you do. In addition, the stock
order form requires that you list all deposit accounts, giving all names on each account and the
account number at the applicable eligibility date. Failure to provide this information, or
providing incomplete or incorrect information, may result in a loss of part or all of your share
allocation, if there is an oversubscription.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Deadline for Orders of Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you wish to purchase shares of common stock, a properly completed and signed original stock
order form, together with full payment for the shares of common stock, must be received (not
postmarked) by the Stock Information Center no later than _: &#95;&#95;&#95;.m., Eastern Time, on &#091;expiration
date&#093;, unless we extend this deadline. You may submit your stock order form by mail using the
stock order return envelope provided, by overnight courier to the indicated address on the stock
order form, or by hand delivery to Oneida Savings Bank&#146;s main office located at 182 Main Street,
Oneida, New York. Stock order forms may not be delivered to other Oneida Savings Bank offices.
Please do not mail stock order forms to Oneida Savings Bank. Once submitted, your order is
irrevocable unless the offering is terminated or extended beyond &#091;extension date&#093; or the number of
shares of common stock to be sold is increased to more than 5,207,344 shares or decreased to fewer
than 3,346,875 shares. In either of these cases, purchasers will have the right to maintain,
change or cancel their orders. If we do not receive a written response from a subscriber regarding
any resolicitation, the order will be canceled and all funds received will be returned promptly
with interest, and deposit account withdrawal authorizations will be canceled. No extension may
last longer than 90&nbsp;days. All extensions, in the aggregate, may not last beyond <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we will make reasonable attempts to provide this prospectus and offering materials to
holders of subscription rights, the subscription offering and all subscription rights will expire
at _: &#95;&#95;&#95;.m., Eastern Time, on &#091;expiration date&#093;, whether or not we have been able to locate each
person entitled to subscription rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>TO ENSURE THAT EACH PERSON RECEIVES A PROSPECTUS AT LEAST 48 HOURS PRIOR TO THE EXPIRATION
DATE OF &#091;EXPIRATION DATE&#093; IN ACCORDANCE WITH FEDERAL LAW, NO PROSPECTUS WILL BE MAILED ANY LATER
THAN FIVE DAYS PRIOR TO &#091;EXPIRATION DATE&#093; OR HAND-DELIVERED ANY LATER THAN TWO DAYS PRIOR TO
&#091;EXPIRATION DATE&#093;.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Steps We May Take if We Do Not Receive Orders for the Minimum Number of Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we do not receive orders for at least 3,346,875 shares of common stock, we may take several
steps in order to issue the minimum number of shares of common stock in the offering range.
Specifically, we may:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increase the purchase and ownership limitations;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>seek regulatory approval to extend the offering beyond the &#091;extension date&#093;
expiration date, provided that any such extension will require us to resolicit
subscriptions received in the offering; and/or</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Increase the purchase of shares by the employee stock ownership plan.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market for Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Existing publicly held shares of Oneida Financial Corp.&#146;s common stock are listed on the
Nasdaq Capital Market under the symbol &#147;ONFC.&#148; Upon completion of the conversion, the shares of
common stock of Oneida Financial-New will replace the existing shares. We expect the new shares
will trade on the Nasdaq Global Market under the symbol &#147;ONFCD&#148; for a period of 20 trading days
after the completion of the offering. Thereafter, the trading symbol will revert to &#147;ONFC.&#148; In
order to list our stock on the Nasdaq Global Market, we are required to have at least three
broker-dealers who will make a market in our common stock. Oneida Financial Corp. currently has
more than three market makers, including Stifel, Nicolaus &#038; Company, Incorporated, and Stifel,
Nicolaus &#038; Company, Incorporated has
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">advised us that it intends to make a market in our common stock following the offering, but it
is under no obligation to do so.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Tax Consequences</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a general matter, the conversion will not be a taxable transaction for purposes of federal
or state income taxes to Oneida Financial, MHC, Oneida Financial Corp., Oneida Savings Bank, Oneida
Financial-New, persons eligible to subscribe in the subscription offering, or existing stockholders
of Oneida Financial Corp. Existing stockholders of Oneida Financial Corp. who receive cash in lieu
of fractional share interests in shares of Oneida Financial-New will recognize a gain or loss equal
to the difference between the cash received and the tax basis of the fractional share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Conditions to Completion of the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot complete the conversion and offering unless:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion and reorganization is approved by at least <I>a majority of
votes eligible </I>to be cast by depositors of Oneida Savings Bank as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion and reorganization is approved by at least <I>two-thirds of the
outstanding </I>shares of common stock of Oneida Financial Corp. as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
including shares held by Oneida Financial, MHC. (Because Oneida Financial, MHC owns
55.2% of the outstanding shares of Oneida Financial Corp. common stock, we expect that
Oneida Financial, MHC, together with our directors, executive officers and employees,
will control the outcome of this vote);</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion and reorganization is approved by at least <I>a majority of the
outstanding </I>shares of common stock of Oneida Financial Corp. as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
excluding those shares held by Oneida Financial, MHC;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We sell at least the minimum number of shares of common stock offered; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We receive the final approval of the Office of Thrift Supervision to complete the
conversion and offering.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial, MHC intends to vote its ownership interest in favor of the plan of
conversion and reorganization. At February&nbsp;28, 2010, Oneida Financial, MHC owned 55.2% of the
outstanding shares of common stock of Oneida Financial Corp. The directors and executive officers
of Oneida Financial Corp. and their affiliates owned 758,674 shares of Oneida Financial Corp., or
9.71% of the outstanding shares of common stock and 21.68% of the outstanding shares of common
stock, excluding shares owned by Oneida Financial, MHC. They intend to vote those shares in favor
of the plan of conversion and reorganization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How You Can Obtain Additional Information&#151;Stock Information Center</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our banking personnel may not, by law, assist with investment-related questions about the
offering. If you have any questions regarding the conversion or offering, please call our Stock
Information Center, toll-free, at 1-877-<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>. The Stock Information Center is open Monday
through Friday between 10:00&nbsp;a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will
be closed weekends and bank holidays.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="152"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>You should consider carefully the following risk factors in evaluating an investment in the
shares of common stock.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Related to Our Business</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Concentration of loans in our primary market area may increase risk.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our success depends primarily on the general economic conditions in upstate New York, as
nearly all of our loans are to customers in this market. Accordingly, the local economic conditions
in upstate New York have a significant impact on the ability of borrowers to repay loans. As such,
a decline in real estate valuations in this market would lower the value of the collateral securing
those loans. In addition, a significant weakening in general economic conditions such as inflation,
recession, unemployment, or other factors beyond our control could negatively affect our financial
results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Changes in interest rates could adversely affect our results of operations and financial condition.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our results of operations and financial condition are significantly affected by changes in
interest rates. Our financial results depend substantially on net interest income, which is the
difference between the interest income that we earn on interest-earning assets, such as loans and
securities, and the interest expense we pay on interest-bearing liabilities, such as deposits and
borrowings. Because our interest-bearing liabilities generally reprice or mature more quickly than
our interest-earning assets, an increase in interest rates generally would tend to result in a
decrease in our net interest income. We have taken steps to mitigate this risk such as holding
fewer longer-term residential mortgages as well as investing excess funds in shorter-term
investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in interest rates also affect the value of our interest-earning assets and in
particular our investment securities available for sale. Generally, the value of our investment
securities fluctuates inversely with changes in interest rates. At December&nbsp;31, 2009, our
investment securities available for sale totaled $114.5&nbsp;million. Unrealized losses on our
securities available for sale totaled $3.3&nbsp;million and are reported in other comprehensive income
as a separate component of our stockholders&#146; equity. Decreases in the fair value of our securities
available for sale, therefore, could have an adverse effect on our stockholders&#146; equity or our
earnings if the decrease in fair value is deemed to be other than temporary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in interest rates may also affect the average life of our loans and mortgage-related
securities. Decreases in interest rates can result in increased prepayments of loans and
mortgage-related securities, as borrowers refinance to reduce borrowing costs. Under these
circumstances, we are subject to reinvestment risk to the extent that we are unable to reinvest the
cash received from such prepayments at rates that are comparable to the rates on our existing loans
and securities. Additionally, increases in interest rates may decrease loan demand and make it more
difficult for borrowers to repay adjustable rate loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A majority of our real estate loans held for investment are adjustable-rate loans. Any rise
in market interest rates may result in increased payments for borrowers who have adjustable rate
mortgage loans, increasing the possibility of default. In addition, although adjustable-rate
mortgage loans help make our loan portfolio more responsive to changes in interest rates, the
extent of this interest sensitivity is limited by the annual and lifetime interest rate adjustment
limits. At December&nbsp;31, 2009, approximately 60.1% of our total loans had adjustable rates of
interest.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>We could record future losses on our securities portfolio.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the year ended December&nbsp;31, 2009, we recognized $2.9&nbsp;million of impairment losses on
securities, of which $600,000 was recognized as other comprehensive loss in the equity section of
our balance sheet, and $2.3&nbsp;million was recognized in our income statement. At December&nbsp;31, 2009,
we held trust preferred securities, corporate debt securities and non-government agency
collateralized mortgage obligations with unrealized losses of $3.5&nbsp;million, $780,000 and $979,000,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A number of factors or combinations of factors could require us to conclude in one or more
future reporting periods that an unrealized loss that exists with respect to these securities
constitutes an impairment that is other than temporary, which could result in material losses to
us. These factors include, but are not limited to, continued failure by the issuer to make
scheduled interest payments, an increase in the severity of the unrealized loss on a particular
security, an increase in the continuous duration of the unrealized loss without an improvement in
value or changes in market conditions and/or industry or issuer specific factors that would render
us unable to forecast a full recovery in value. In addition, the fair values of securities could
decline if the overall economy and the financial condition of some of the issuers continues to
deteriorate and there remains limited liquidity for these securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also hold investment securities for which the fair value option has been elected, which are
considered trading securities. Changes in the fair value of these securities are recorded in
earnings and may result in higher volatility in our earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>If our non-performing assets increase, our earnings will suffer.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, our non-performing assets (which consist of non-accrual loans, loans 90
days or more delinquent, foreclosed real estate assets and non-accruing investment securities)
totaled $2.4&nbsp;million, which is an increase of $1.9&nbsp;million over non-performing assets at December
31, 2008. Our non-performing assets adversely affect our net income in various ways. We do not
record interest income on non-accrual loans or investments or on real estate owned. We must reserve
for probable losses, which are established through a current period charge to income in the
provision for loan losses, and from time to time, write down the value of properties in our other
real estate owned portfolio to reflect changing market values. Additionally, there are legal fees
associated with the resolution of problem assets as well as carrying costs such as taxes, insurance
and maintenance related to our other real estate owned. Further, the resolution of non-performing
assets requires the active involvement of management, which can distract us from the overall
supervision of operations and other income-producing activities of Oneida Savings Bank. Finally, if
our estimate of the allowance for loan losses is inadequate, we will have to increase the allowance
accordingly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Increases to the allowance for loan losses would cause our earnings to decrease.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our customers may not repay their loans according to the original terms, and the collateral
securing the payment of these loans may be insufficient to repay the remaining principal balance of
the loan. Hence, we may experience significant loan losses, which could have a material adverse
effect on our operating results. We make various assumptions and judgments about the collectability
of our loan portfolio, including the creditworthiness of our borrowers and the value of the real
estate and other assets serving as collateral for the repayment of loans. In determining the amount
of the allowance for loan losses, we rely on loan quality reviews, past loss experience, and an
evaluation of economic conditions, among other factors. If our assumptions prove to be incorrect,
our allowance for loan losses may not be sufficient to cover losses inherent in our loan portfolio,
which would require us to make additions to the allowance. Material additions to the allowance
would materially decrease our net income.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our emphasis on the origination of commercial real estate and business loans is one of the
more significant factors in determining the amount of our allowance for loan losses. As we continue
to emphasize the origination of these loans, additional provisions for loan losses may be necessary
which would decrease our earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank regulators periodically review our allowance for loan losses and may require us to
increase our provision for loan losses or recognize further loan charge-offs. Any increase in our
allowance for loan losses or loan charge-offs as required by these regulatory authorities would
have an adverse effect on our results of operations and/or financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Commercial real estate and business loans increase our exposure to credit risks.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, our portfolio of commercial real estate and multi-family loans totaled
$68.1&nbsp;million, or 22.8% of total loans, and our commercial business loans totaled $38.8&nbsp;million, or
13.0% of total loans. We plan to continue to emphasize the origination of these types of loans.
Commercial real estate and commercial business loans generally expose us to a greater risk of
nonpayment and loss than one-to-four family residential real estate lending because repayment of
such loans often depends on the successful business operations and income stream of the borrowers.
Additionally, such loans typically involve larger loan balances to single borrowers or groups of
related borrowers compared to residential real estate loans. Many of our borrowers have more than
one commercial loan outstanding with us. Consequently, an adverse development with respect to one
loan or one credit relationship may expose us to a significantly greater risk of loss compared to
an adverse development with respect to a one-to-four family residential real estate loan. Finally,
if we foreclose on a commercial real estate or commercial business loan, our holding period for the
collateral, if any, typically is longer than for one-to-four family residential mortgage loans
because there are fewer potential purchasers of the collateral.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We target our business lending and marketing strategy towards small to medium-sized
businesses. These small to medium-sized businesses generally have fewer financial resources in
terms of capital or borrowing capacity than larger entities. If general economic conditions
negatively impact these businesses, our results of operations and financial condition may be
adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our loan portfolio has greater risk due to the substantial number of home equity loans and consumer
loans.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, our home equity loans totaled $43.0&nbsp;million, or 14.4% of our total loan
portfolio. Our home equity loans are primarily secured by second mortgages, and the combined
loan-to-value ratio (first and second mortgage liens) for home equity loans may have been as high
as 90% at the time of origination and may be higher at present. At December&nbsp;31, 2009, our consumer
loans totaled $43.0&nbsp;million, or 14.4% of our total loan portfolio, of which $39.1&nbsp;million consisted
of automobile loans. Our automobile loans include a substantial number of automobile loans that
are referred to us by participating automobile dealerships located in our market area, although our
lending staff underwrites and approves such loans. Our consumer loan portfolio also includes
automobile loans originated directly by us, as well as unsecured loans and loans secured by other
personal property. Home equity loans and consumer loans generally have greater risk than
one-to-four family residential mortgage loans, particularly in the case of loans that are secured
by second mortgages or by rapidly depreciable assets, such as automobiles, or that are unsecured.
In these cases, we face the risk that collateral, when we have it, for a defaulted loan may not
provide an adequate source of repayment of the outstanding loan balance. Particularly with respect
to our home equity loans, any decrease in real estate values that adversely affect the value of the
property serving as collateral for our loans would have a greater effect on the value of collateral
securing a second mortgage. Thus, the recovery of such property could be insufficient to compensate
us for the value of these loans.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of our large portfolio of home equity loans and consumer loans, it may become
necessary to increase our provision for loan losses, which could reduce our profits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Municipal deposits are price sensitive and could result in an increase in interest expense or
funding fluctuations.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In recent years we have had significant growth in our municipal deposits from sources within
our market area. These deposits are a price sensitive source of funds from both an interest and
service charge perspective. We may experience a sudden increase in interest expense if market
interest rates rise suddenly or risk the possibility of deposit outflow if we are unwilling to
price these deposits as aggressively as our competition. This liquidity risk may require us to
sell the investment securities collateralizing the municipal deposits at a loss or to access higher
cost borrowings which would result in an increase in our interest expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our operations may be adversely affected if we are unable to hire and retain qualified employees.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our performance is largely dependent on the talents and efforts of our employees. Our
continued ability to compete effectively in our businesses and to expand into new businesses and
geographic regions depends on our ability to attract, retain and motivate our employees.
Competition for qualified employees is often intense. Moreover, future laws or regulations
limiting the amount of compensation financial institutions may pay to senior management may
adversely affect our ability to hire and retain qualified employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have continued to increase total revenue and net income from non-banking sources such as
insurance commissions and employee benefit consulting and services. Key employees provide
expertise in the management of these business lines and develop and maintain customer
relationships. The loss of those key employees would adversely affect the growth of our
non-banking businesses and their continued profitability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Conditions in insurance markets could adversely affect our earnings.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As we have diversified our sources of income, we have become increasingly reliant on
non-interest income, particularly insurance fees and commissions. Revenue from these sources
could be negatively affected by fluctuating premiums in the insurance markets or other factors
beyond our control. Other factors that affect our insurance revenue are the profitability and
growth of our clients, continued development of new products and services, as well as our access to
new markets. Our insurance revenues and profitability may also be adversely affected by regulatory
developments impacting the healthcare and insurance markets, possibly including recent legislative
proposals relating to national health insurance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>We hold certain intangible assets that in the future could be classified as either partially or
fully impaired, which would reduce our earnings and the book values of these assets.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We test our intangible assets for impairment at least annually. Our impairment testing
incorporates the current market price of our common stock, the estimated fair value of our assets
and liabilities, and certain information of similar companies. It is possible that future
impairment testing could result in a decline in value of our intangible assets which would
adversely affect our financial condition. If we determine an impairment exists at a given point in
time, our earnings and the book value of the related intangibles would be reduced by the amount of
the impairment. If an impairment loss is recorded, it will have little or no impact on the
tangible book value of our shares of common stock or our regulatory capital levels. If we acquire
additional financial institutions or financial services companies, it is likely that the amount of
goodwill included in our intangible assets will increase.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Strong competition may limit our growth and profitability.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition in the banking and financial services industry is intense. We compete with
commercial banks, savings institutions, mortgage brokerage firms, credit unions, finance companies,
mutual funds, insurance companies, and brokerage and investment banking firms operating locally and
elsewhere. Many of these competitors (whether regional or national institutions) have substantially
greater resources and lending limits than we have and may offer certain services that we do not or
cannot provide. Our profitability depends upon our ability to successfully compete in our market
area.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Higher Federal Deposit Insurance Corporation insurance premiums and special assessments will
adversely affect our earnings.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recent bank failures coupled with the severe economic recession and continued weakness in the
national economy have significantly reduced the deposit insurance fund&#146;s reserve ratio. On February
27, 2009, the Federal Deposit Insurance Corporation issued a final rule that alters the way the
Federal Deposit Insurance Corporation calculates federal deposit insurance assessment rates. Under
the rule, the Federal Deposit Insurance Corporation first establishes an institution&#146;s initial base
assessment rate. This initial base assessment rate ranges from 12 to 45 basis points, depending on
the risk category of the institution. The Federal Deposit Insurance Corporation then adjusts the
initial base assessment (higher or lower) to obtain the total base assessment rate. The
adjustments to the initial base assessment rate are based upon an institution&#146;s levels of unsecured
debt, secured liabilities, and brokered deposits. The total base assessment rate ranges from 7 to
77.5 basis points of the institution&#146;s deposits. In addition, on May&nbsp;22, 2009, the Federal Deposit
Insurance Corporation adopted a final rule levying a five basis point special assessment on each
insured depository institution&#146;s assets minus Tier 1 capital as of June&nbsp;30, 2009. We recorded an
expense of $258,000 during the quarter ended June&nbsp;30, 2009, to reflect the special assessment. Any
further special assessments that the Federal Deposit Insurance Corporation levies will be recorded
as an expense during the appropriate period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Federal Deposit Insurance Corporation also has adopted a rule pursuant to which all
insured depository institutions were required to prepay their estimated assessments for the fourth
quarter of 2009, and for all of 2010, 2011 and 2012. This pre-payment was due on December&nbsp;30,
2009. The assessment rate for the fourth quarter of 2009 and for 2010 was based on each
institution&#146;s total base assessment rate for the third quarter of 2009, modified to assume that the
assessment rate in effect on September&nbsp;30, 2009 had been in effect for the entire third quarter,
and the assessment rate for 2011 and 2012 was equal to the modified third quarter assessment rate
plus an additional three basis points. In addition, each institution&#146;s base assessment rate for
each period was calculated using its third quarter assessment base, adjusted quarterly for an
estimated 5% annual growth rate in the assessment base through the end of 2012. We are required to
record the pre-payment as a prepaid expense, which will be amortized to expense over three years.
Our prepayment amount was $2.4&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These actions will significantly increase our noninterest expense in 2010 and in future years
as long as the increased premiums continue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The United States economy remains weak and unemployment levels are high. The prolonged economic
downturn will adversely affect our business and financial results.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The United States experienced a severe economic recession in 2008 and 2009. While economic
growth has resumed recently, the rate of growth has been slow and unemployment remains at very high
levels and is not expected to improve in the near future. Loan portfolio quality has deteriorated
at many financial institutions reflecting, in part, the weak U.S. economy and high unemployment.
In addition, the values of real estate collateral supporting many commercial loans and home
mortgages have declined and may continue to decline. The continuing real estate downturn also has
resulted in reduced demand for the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">construction of new housing and in increased delinquencies in construction, residential and
commercial mortgage loans. Bank and bank holding company stock prices have declined substantially,
and it is significantly more difficult for banks and bank holding companies to raise capital or
borrow in the debt markets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continued negative developments in the financial services industry and in the domestic and
international credit markets may significantly affect the markets in which we do business, the
market for and value of our loans and investments, and our ongoing operations, costs and
profitability. Moreover, continued declines in the stock market in general, or stock values of
financial institutions and their holding companies specifically, may adversely affect our stock
performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>A legislative proposal has been introduced that would eliminate the Office of Thrift Supervision,
Oneida Financial Corp.&#146;s primary federal regulator and the primary federal regulator that Oneida
Financial-New intends to elect, which would require Oneida Financial-New to become a bank holding
company.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legislation has been proposed that would implement sweeping changes to the current bank
regulatory structure. The proposal would, among other things, merge the Office of Thrift
Supervision into the Office of the Comptroller of the Currency or a new Federal bank regulator. As
discussed further under &#147;Supervision and Regulation&#151;Holding Company Regulation,&#148; federal law
allows a state savings bank that qualifies as a Qualified Thrift Lender, such as Oneida Savings
Bank, to elect to be treated as a savings association for purposes of the savings and loan holding
company provisions of the Home Owners&#146; Loan Act of 1933, as amended. Such election results in the
state savings bank&#146;s holding company being regulated as a savings and loan holding company by the
Office of Thrift Supervision rather than as a bank holding company regulated by the Board of
Governors of the Federal Reserve System. Pursuant to such an election, Oneida Financial Corp. and
Oneida Financial, MHC are currently regulated by the Office of Thrift Supervision, and we intend
for Oneida Financial-New to be regulated by the Office of Thrift Supervision following the
conversion. If the Office of Thrift Supervision is eliminated, Oneida Financial-New would become a
bank holding company subject to regulation and supervision of the Federal Reserve Board under the
Bank Holding Company Act of 1956, which would include holding company regulatory capital
requirements to which Oneida Financial-New is currently not subject.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations
may adversely affect our operations and our income.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In response to the financial crisis of 2008 and early 2009, Congress has taken actions that
are intended to strengthen confidence and encourage liquidity in financial institutions, and the
Federal Deposit Insurance Corporation has taken actions to increase insurance coverage on deposit
accounts. In addition, there have been proposals made by members of Congress and others that would
reduce the amount delinquent borrowers are otherwise contractually obligated to pay under their
mortgage loans and limit an institution&#146;s ability to foreclose on mortgage collateral.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The potential exists for additional federal or state laws and regulations, or changes in
policy, affecting lending and funding practices and liquidity standards. Moreover, bank regulatory
agencies have been active in responding to concerns and trends identified in examinations, and have
issued many formal enforcement orders requiring capital ratios in excess of regulatory
requirements. Bank regulatory agencies, such as the New York State Banking Department, the Federal
Deposit Insurance Corporation and the Office of Thrift Supervision, govern the activities in which
we may engage, primarily for the protection of depositors, and not for the protection or benefit of
potential investors. In addition, new laws and regulations may increase our costs of regulatory
compliance and of doing business, and otherwise affect our operations. New laws and regulations may
significantly affect the markets in which we do
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">business, the markets for and value of our loans and investments, the fees we can charge, and our
ongoing operations, costs and profitability. Further, legislative proposals limiting our rights as
a creditor could result in credit losses or increased expense in pursuing our remedies as a
creditor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>We operate in a highly regulated environment and may be adversely affected by changes in laws and
regulations.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to extensive regulation, supervision and examination by the Federal Deposit
Insurance Corporation, the New York State Banking Department and the Office of Thrift Supervision.
Such regulation and supervision govern the activities in which an institution and its holding
companies may engage and are intended primarily for the protection of the insurance fund and
depositors. Regulatory authorities have extensive discretion in connection with their supervisory
and enforcement activities, including the imposition of restrictions on the operation of an
institution, the classification of assets by the institution and the adequacy of an institution&#146;s
allowance for loan losses. Any change in such regulation and oversight, whether in the form of
regulatory policy, new regulations or legislation or additional deposit insurance premiums could
have a material impact on our operations. Because our business is highly regulated, the laws and
applicable regulations are subject to frequent change. Any new laws, rules and regulations could
make compliance more difficult or expensive or otherwise adversely affect our business, financial
condition or prospects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>If our investment in the Federal Home Loan Bank of New York becomes impaired, our earnings and
stockholders&#146; equity could decrease.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are required to own common stock of the Federal Home Loan Bank of New York to qualify for
membership in the Federal Home Loan Bank System and to be eligible to borrow funds under the
Federal Home Loan Bank&#146;s advance program. The aggregate carrying value of our Federal Home Loan
Bank common stock as of December&nbsp;31, 2009 was $2.7&nbsp;million. Federal Home Loan Bank common stock is
not a marketable security and can only be redeemed by the Federal Home Loan Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Banks may be subject to accounting rules and asset quality risks that could
materially lower their regulatory capital. In an extreme situation, it is possible that the
capitalization of a Federal Home Loan Bank, including the Federal Home Loan Bank of New York, could
be substantially diminished or reduced to zero. Consequently, we believe that there is a risk that
our investment in Federal Home Loan Bank of New York common stock could be deemed impaired at some
time in the future, and if this occurs, it would cause our earnings and stockholders&#146; equity to
decrease by the amount of the impairment charge.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>System failure or breaches of our information systems could subject us to increased operating costs
as well as litigation and other liabilities.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We rely heavily on communications and information systems to conduct business. Any failure,
interruption or breach in security of these systems could result in failures or disruptions in our
general ledger, deposit, loan and other systems, including risk to data integrity. While we have
policies and procedures designed to prevent or limit the effect of the failure, interruption or
security breach of our information systems, there can be no assurance that any such failures,
interruptions or security breaches will not occur or, if they do occur, that they will be
adequately addressed. The occurrence of any failures, interruptions or security breaches of our
information systems could damage our reputation, result in a loss of customer business, subject us
to additional regulatory scrutiny, or expose us to civil litigation and possible financial
liability, any of which could have a material adverse effect on our financial condition and results
of operations.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Related to the Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The future price of the shares of common stock may be less than the $8.00 purchase price per share
in the offering.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you purchase shares of common stock in the offering, you may not be able to sell them later
at or above the $8.00 purchase price in the offering. In several cases, shares of common stock
issued by newly converted savings institutions or mutual holding companies have traded below the
initial offering price. The aggregate purchase price of the shares of common stock sold in the
offering will be based on an independent appraisal. The independent appraisal is not intended, and
should not be construed, as a recommendation of any kind as to the advisability of purchasing
shares of common stock. The independent appraisal is based on certain estimates, assumptions and
projections, all of which are subject to change from time to time. After our shares begin trading,
the trading price of our common stock will be determined by the marketplace, and may be influenced
by many factors, including prevailing interest rates, the overall performance of the economy,
investor perceptions of Oneida Financial-New and the outlook for the financial services industry in
general. Price fluctuations in our stock may be unrelated to the operating performance of Oneida
Financial-New.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our failure to effectively deploy the net proceeds may have an adverse impact on our financial
performance and the value of our common stock.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial-New intends to invest between $12.2&nbsp;million and $16.8&nbsp;million of the net
proceeds of the offering (or $19.4&nbsp;million at the adjusted maximum of the offering range) in Oneida
Savings Bank. Oneida Financial-New may use the remaining net proceeds to invest in short-term
investments, repurchase shares of common stock, pay dividends or for other general corporate
purposes. Oneida Financial-New also expects to use a portion of the net proceeds it retains to
fund a loan for the purchase of shares of common stock in the offering by the employee stock
ownership plan. Oneida Savings Bank may use the net proceeds it receives to fund new loans,
purchase investment securities, acquire financial institutions or financial services companies,
build new branches or acquire branches, or for other general corporate purposes. However, with the
exception of the loan to the employee stock ownership plan, we have not allocated specific amounts
of the net proceeds for any of these purposes, and we will have significant flexibility in
determining the amount of the net proceeds we apply to different uses and the timing of such
applications. We have not established a timetable for reinvesting the net proceeds, and we cannot
predict how long we will require to reinvest the net proceeds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our return on equity initially will be low compared to our historical performance. A lower return
on equity may negatively impact the trading price of our common stock.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income divided by average stockholders&#146; equity, known as &#147;return on average equity&#148; is a
ratio many investors use to compare the performance of a financial institution to its peers. Our
return on average equity ratio for the year ended December&nbsp;31, 2009 was 7.41%. Although we expect
that our net income will increase following the offering, we expect that our return on average
equity will decrease as a result of the additional capital that we will raise in the offering. For
example, our pro forma return on equity for the year ended December&nbsp;31, 2009 is 5.05%, assuming the
sale of shares at the midpoint of the offering range. Over time, we intend to use the net proceeds
from the offering to increase earnings per share and book value per share, without assuming undue
risk, with the goal of achieving a return on equity that is comparable to our historical
performance. This goal may take a number of years to achieve, and we cannot assure you that we
will be able to achieve it. Consequently, you should not expect a return on equity similar to our
current return on equity in the near future. Failure to achieve a competitive return on equity may
make an investment in our common stock unattractive to some investors and may cause our common
stock to trade at lower prices than comparable companies with higher returns on equity. See &#147;Pro
Forma Data&#148; for an illustration of the financial impact of the offering.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The implementation of the stock-based benefit plan may dilute your ownership interest.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to adopt a new stock-based benefit plan following the offering, subject to receipt
of stockholder approval. This stock-based benefit plan may be funded either through open market
purchases or from the issuance of authorized but unissued shares of common stock of Oneida
Financial-New. While our intention is to fund this plan through open market purchases, stockholders
would experience a 7.17% reduction in ownership interest at the adjusted maximum of the offering
range in the event newly issued shares of our common stock are used to fund stock options and
shares of restricted common stock under the plan in an amount equal to up to 10.0% and 4.0%,
respectively, of the shares sold in the offering. In the event we adopt the plan within one year
following the conversion, shares of common stock reserved for issuance pursuant to awards of
restricted stock and grants of options under the stock-based benefit plan would be limited to 4.0%
and 10.0%, respectively, of the total shares sold in the offering, subject to adjustment as may be
required by Office of Thrift Supervision regulations or policy to reflect stock options or
restricted stock previously granted by Oneida Financial Corp. or Oneida Savings Bank. In the event
we adopt the plan more than one year following the conversion, the plan will not be subject to
these limitations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Implementing the stock-based benefit plan would increase our compensation and benefit expenses and
adversely affect our profitability.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to adopt a new stock-based benefit plan after the offering, subject to stockholder
approval, which would increase our annual employee compensation and benefit expenses related to the
stock options and shares granted to participants under the new stock-based benefit plan. The
actual amount of compensation and benefit expenses will depend on the number of options and stock
awards actually granted under the plan, the fair market value of our stock or options on the date
of grant, the vesting period and other factors which we cannot predict at this time. If the new
stock-based benefit plan is implemented within one year of the completion of the offering, the
number of shares of common stock reserved for issuance for awards of restricted stock or grants of
options under such stock-based benefit plan may not exceed 4.0% and 10.0%, respectively, of the
shares sold in the offering, subject to adjustment as may be required by Office of Thrift
Supervision regulations or policy to reflect stock options or restricted stock previously granted
by Oneida Financial Corp. or Oneida Savings Bank. If we award restricted shares of common stock or
grant options in excess of these amounts under a stock-based benefit plan adopted more than one
year after the completion of the offering, our costs would increase further.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we would recognize expense for our employee stock ownership plan when shares are
committed to be released to participants&#146; accounts (i.e., as the loan used to acquire these shares
is repaid), and we would recognize expense for restricted stock awards and stock options over the
vesting period of awards made to recipients. The expense for the new stock-based benefit plan and
employee stock ownership plan in the first year following the offering has been estimated to be
approximately $823,000 ($598,000 after tax) at the adjusted maximum of the offering range as set
forth in the pro forma financial information under &#147;Pro Forma Data,&#148; assuming the $8.00 per share
purchase price as fair market value. Actual expenses, however, may be higher or lower, depending on
the price of our common stock. We anticipate that the additional compensation expense for the new
stock-based benefit plan and the employee stock ownership plan will be offset in part by the
reduction in discretionary contributions that we have made in recent years to our employee stock
ownership plan. For example, in the year ended December&nbsp;31, 2009, we contributed approximately
$300,000 to the employee stock ownership plan to fund the purchase of shares of our common stock in
the open market. It is expected that these planned reductions in discretionary contributions will
offset the contributions that would be made to pay off the new loan and the expense of the new
stock-based benefit plan. For further discussion of our proposed
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->28<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">stock-based plans, see &#147;Management&#151;Benefits to be Considered Following Completion of the
Conversion.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Various factors may make takeover attempts more difficult to achieve.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our board of directors has no current intention to sell control of Oneida Financial-New.
Provisions of our articles of incorporation and bylaws, federal regulations, Maryland law and
various other factors may make it more difficult for companies or persons to acquire control of
Oneida Financial-New without the consent of our board of directors. You may want a takeover
attempt to succeed because, for example, a potential acquiror could offer a premium over the then
prevailing price of our common stock. The factors that may discourage takeover attempts or make
them more difficult include the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Office of Thrift Supervision Regulations</I></B><B>. </B>Office of Thrift Supervision regulations
prohibit, for three years following the completion of a conversion, the direct or
indirect acquisition of more than 10% of any class of equity security of a savings and
loan holding company regulated by the Office of Thrift Supervision without the prior
approval of the Office of Thrift Supervision.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>New York Banking Law. </I></B>In addition to federal law, the New York State Banking Law
generally requires prior approval of the New York State Banking Board before any action
is taken that causes any entity or person to acquire direct or indirect control of a
banking institution which is organized in New York State. Control is presumed to exist
if any company or person directly or indirectly owns, controls or holds with power to
vote 10% or more of the voting stock of a banking institution or of any company or
person that owns, controls or holds with power to vote 10% or more of the voting stock
of a banking institution.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Articles of incorporation of Oneida Financial-New and statutory provisions.</I></B>
Provisions of the articles of incorporation and bylaws of Oneida Financial-New and
Maryland law may make it more difficult and expensive to pursue a takeover attempt that
management opposes, even if the takeover is favored by a majority of our stockholders.
These provisions also would make it more difficult to remove our current board of
directors or management, or to elect new directors. Specifically, under Maryland law
and Oneida Financial-New&#146;s bylaws, any person who acquires more than 10% of the common
stock of Oneida Financial-New without the prior approval of its board of directors may
be prohibited by the board of directors from engaging in any type of business
combination with Oneida Financial-New for a five-year period. Any business combination
after the five year prohibition would be subject to super-majority stockholder approval
or minimum price requirements. Additional provisions include limitations on voting
rights of beneficial owners of more than 10% of our common stock, the election of
directors to staggered terms of three years and not permitting cumulative voting in the
election of directors. Our bylaws also contain provisions regarding the timing and
content of stockholder proposals and nominations and qualification for service on the
board of directors.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Restated organization certificate of Oneida Savings Bank. </I></B>The restated organization
certificate of Oneida Savings Bank provides that for a period of five years from the
closing of the conversion and offering, no person other than Oneida Financial-New may
offer directly or indirectly to acquire the beneficial ownership of more than 10% of
any class of equity security of Oneida Savings Bank. This provision does not apply to
any tax-qualified employee benefit plan of Oneida Savings Bank or Oneida Financial-New
or
</TD>
</TR>
</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to an underwriter or member of an underwriting or selling group involving the public
sale or resale of securities of Oneida Financial-New or any of its subsidiaries, so
long as after the sale or resale, no underwriter or member of the selling group is a
beneficial owner, directly or indirectly, of more than 10% of any class of equity
securities of Oneida Savings Bank. In addition, during this five-year period, all
shares owned over the 10% limit may not be voted on any matter submitted to
stockholders for a vote.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Issuance of stock options and restricted stock</I></B><B>. </B>We also intend to issue stock
options and shares of restricted stock to key employees and directors that will require
payments to these persons in the event of a change in control of Oneida Financial-New.
These payments may have the effect of increasing the costs of acquiring Oneida
Financial-New, thereby discouraging future takeover attempts.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Employment agreements</I></B><B>. </B>Oneida Financial Corp. has employment agreements with
certain of its executive officers that will remain in effect following the stock
offering. These agreements may have the effect of increasing the costs of acquiring
Oneida Financial-New, thereby discouraging future takeover attempts.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The ownership interest of management and employees could enable insiders to prevent a merger that
may provide stockholders a premium for their shares.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares of common stock that our directors and officers intend to purchase in the offering,
when combined with the shares that they will receive in the exchange for shares of Oneida Financial
Corp. common stock they hold as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010, may result in management and the board
controlling as much as approximately 12.42% of our outstanding shares of common stock at the
minimum of the offering range. Our employee stock ownership plan is also expected to purchase 4% of
the shares of common stock sold in the stock offering at the minimum of the offering range, which
will be in addition to the 4.03% of our outstanding shares of common stock already held by the
employee stock ownership plan as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010. Additional stock options and shares of
common stock would also be granted to our directors and employees if a new stock-based incentive
plan is adopted in the future. This would result in management and employees controlling a
significant percentage of our shares of common stock. If these individuals were to act together,
they could have significant influence over the outcome of any stockholder vote. This voting power
may discourage or prevent a potential sale of Oneida Financial-New that our stockholders may
desire.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>There may be a decrease in stockholders&#146; rights for existing stockholders of Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the conversion, existing stockholders of Oneida Financial Corp. will become
stockholders of Oneida Financial-New. In addition to the provisions discussed above that may
discourage takeover attempts that are favored by stockholders, some rights of stockholders of
Oneida Financial-New will be reduced compared to the rights stockholders currently have in Oneida
Financial Corp. The reduction in stockholder rights results from differences between the federal
and Maryland charters and bylaws, and from distinctions between federal and Maryland law. Many of
the differences in stockholder rights under the articles of incorporation and bylaws of Oneida
Financial-New are not mandated by Maryland law but have been chosen by management as being in the
best interests of Oneida Financial-New and its stockholders. The articles of incorporation and
bylaws of Oneida Financial-New include the following provisions: (i)&nbsp;greater lead time required
for stockholders to submit proposals for new business or to nominate directors; and (ii)&nbsp;approval
by at least 80% of outstanding shares of capital stock entitled to vote generally is required to
amend the bylaws and certain provisions of the articles of incorporation. See &#147;Comparison of
Stockholders&#146; Rights For Existing Stockholders of Oneida Financial Corp.&#148; for a discussion of these
differences.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->30<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>You may not revoke your decision to purchase Oneida Financial-New common stock in the subscription
offering after you send us your subscription.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds submitted or automatic withdrawals authorized in the connection with a purchase of
shares of common stock in the subscription offering will be held by us until the completion or
termination of the conversion and offering, including any extension of the expiration date.
Because completion of the conversion and offering will be subject to regulatory approvals and an
update of the independent appraisal prepared by RP Financial, LC., among other factors, there may
be one or more delays in the completion of the conversion and offering. Orders submitted in the
subscription offering are irrevocable, and subscribers will have no access to subscription funds
unless the offering is terminated, or extended beyond &#091;extension date&#093;, or the number of shares to
be sold in the offering is increased to more than 5,207,344 shares or decreased to fewer than
3,346,875 shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>There may be a limited market for our common stock, which may lower our stock price and make it
more difficult for investors to sell their shares of our common stock.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We currently trade on the Nasdaq Capital Market and plan to trade on the Nasdaq Global Market
following the conversion. However, we cannot guarantee that the shares of common stock will be
regularly traded. Even if a liquid market develops for our common stock, there is no assurance that
it can be maintained. An active, orderly trading market depends on the presence and participation
of willing buyers and sellers which neither Oneida Financial-New nor the market makers in the
common stock can control. This may affect your ability to sell your shares on short notice, and
the sale of a large number of shares at one time could temporarily depress the market price of our
common stock. For these reasons, our common stock should not be viewed as a short-term investment.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->31<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="153"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA<BR>
OF ONEIDA FINANCIAL CORP.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The summary financial information presented below is derived in part from the consolidated
financial statements of Oneida Financial Corp. The following is only a summary and you should read
it in conjunction with the consolidated financial statements and notes beginning on page F-1. The
information at December&nbsp;31, 2009 and 2008 and for the fiscal years ended December&nbsp;31, 2009, 2008
and 2007 is derived in part from the audited consolidated financial statements of Oneida Financial
Corp. that appear in this prospectus. The information at December&nbsp;31, 2007, 2006 and 2005 and for
the fiscal years ended December&nbsp;31, 2006 and 2005 is derived in part from audited consolidated
financial statements that do not appear in this prospectus.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Financial Condition Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">590,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">540,130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">522,315</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">442,937</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">436,761</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,537</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,877</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loans receivable, net </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">295,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">302,492</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">284,418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247,441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">236,077</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mortgage-backed securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,737</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,316</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,569</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,074</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investment securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,446</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95,825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,455</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Trading securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,941</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Goodwill and other intangibles</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,813</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,434</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,364</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest bearing deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">426,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">364,911</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">334,444</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">260,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250,142</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-interest bearing deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,044</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Borrowed funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,270</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,648</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Years Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(In thousands, except per share amounts)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Operating Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,261</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,012</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,028</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,446</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,687</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,653</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,815</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,325</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">360</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income after provision
for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,965</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment (losses)&nbsp;gains</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,507</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(959</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">353</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Change in fair value of trading
securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,675</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,838</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,671</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,617</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,171</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,496</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Intangible amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">470</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income (loss)&nbsp;before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,900</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,724</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,248</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income tax provision (benefit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,211</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,223</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,390</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,677</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,858</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Earnings (loss)&nbsp;per share &#151; basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.22</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Earnings (loss)&nbsp;per share &#151; diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.22</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Cash dividends paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.41</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->32<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>At or For the Years Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Financial Ratios and Other Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Performance Ratios:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Return on average assets (ratio of net
income (loss)&nbsp;to average total assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.31</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.71</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.89</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Return on average equity (ratio of net
income (loss)&nbsp;to average equity)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.41</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.99</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.99</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.67</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.30</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest rate spread (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.02</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.05</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.15</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest margin (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.69</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.34</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.45</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.50</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Efficiency ratio (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">82.99</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">111.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">82.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">78.56</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">77.32</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest income to average total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.76</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.78</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.75</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest expense to average total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.78</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.27</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.46</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.46</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.53</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average interest-earning assets as a ratio
of average interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">108.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">109.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">110.99</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">115.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">117.37</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average equity to average total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.89</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.83</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.58</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.21</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity to total assets (end of period)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.15</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.20</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.28</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tangible equity to tangible assets (end of
period)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.06</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.78</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.84</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.12</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.30</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend payout ratio (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">40.69</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(99.10</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.07</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">36.05</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.82</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Asset Quality Ratios:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonperforming assets to total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.41</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.05</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonperforming loans to total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.17</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.13</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net charge-offs to average loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.06</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.17</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses to loans
receivable, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.88</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.84</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.83</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses to nonperforming
loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">526.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">511.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">669.60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4,080.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">870.67</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Bank Regulatory Capital Ratios:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total capital (to risk-weighted assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.64</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier I capital (to risk-weighted assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.45</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.63</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.96</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier I capital (to average assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.64</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.89</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.80</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Other Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of full service offices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of employees (full time equivalent)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">317</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">237</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The average interest rate spread represents the difference between the weighted-average yield
on interest-earning assets and the weighted- average cost of interest-bearing liabilities for
the period.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The net interest margin represents net interest income as a percent of average
interest-earning assets for the period.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>The efficiency ratio represents non-interest expense divided by the sum of net interest
income and non-interest income, excluding net impairment losses, net investment gains (losses)
and changes in fair value of trading securities.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Reflects the waiver of dividends by Oneida Financial, MHC.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->33<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="154"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus contains forward-looking statements, which can be identified by the use of
words such as &#147;estimate,&#148; &#147;project,&#148; &#147;believe,&#148; &#147;intend,&#148; &#147;anticipate,&#148; &#147;plan,&#148; &#147;seek,&#148; &#147;expect&#148;
and words of similar meaning. These forward-looking statements include, but are not limited to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>statements of our goals, intentions and expectations;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>statements regarding our business plans, prospects, growth and operating strategies;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>statements regarding the asset quality of our loan and investment portfolios; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>estimates of our risks and future costs and benefits.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These forward-looking statements are based on current beliefs and expectations of our
management and are inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond our control. In addition, these
forward-looking statements are subject to assumptions with respect to future business strategies
and decisions that are subject to change.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following factors, among others, could cause actual results to differ materially from the
anticipated results or other expectations expressed in the forward-looking statements:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>general economic conditions, either nationally or in our market areas, that are
worse than expected;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>competition among depository and other financial institutions;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in the interest rate environment that reduce our margins or reduce the fair
value of financial instruments;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adverse changes in the securities markets;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in laws or government regulations or policies affecting financial
institutions, including changes in regulatory fees and capital requirements;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to enter new markets successfully and capitalize on growth
opportunities;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to successfully integrate acquired entities, if any;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in consumer spending, borrowing and savings habits;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in accounting policies and practices, as may be adopted by the bank
regulatory agencies and the Financial Accounting Standards Board;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to continue to increase and manage our commercial and residential real
estate, multi-family, and commercial and consumer loans;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possible impairments of securities held by us;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the level of future deposit premium assessments;</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->34<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the impact of the current recession on our loan portfolio (including cash flow
and collateral values), investment portfolio, customers and capital market activities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the impact of the current governmental effort to restructure the U.S. financial and
regulatory system;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in the financial performance and/or condition of our borrowers; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in our organization, compensation and benefit plans.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because of these and other uncertainties, our actual future results may be materially
different from the results indicated by these forward-looking statements. Please see &#147;Risk
Factors&#148; beginning on page &#95;&#95;&#95;.
</DIV>
<DIV align="left">
<A name="155"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we cannot determine what the actual net proceeds from the sale of the shares of
common stock in the offering will be until the offering is completed, we anticipate that the net
proceeds will be between $24.4&nbsp;million and $33.5&nbsp;million, or $38.8&nbsp;million if the offering range is
increased by 15%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A summary of the anticipated net proceeds at the minimum, midpoint, maximum and adjusted
maximum of the offering range and of the distribution of the net proceeds is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="30" style="border-bottom: 1px solid #000000"><B>Based Upon the Sale at $8.00 Per Share of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>3,346,875 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>3,937,500 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>4,528,125 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>5,207,344 Shares (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Net</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Net</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Net</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Net</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Proceeds</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Proceeds</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Proceeds</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Proceeds</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">36,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">41,659</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less offering expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,892</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap><DIV style="margin-left:30px; text-indent:-15px">Net offering proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">33,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">38,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Distribution of net proceeds:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">To Oneida Savings Bank</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">To fund loan to employee
stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,071</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained by Oneida
Financial-New(2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,317</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,718</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.7</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As adjusted to give effect to an increase in the number of shares, which could occur due to a
15% increase in the offering range to reflect demand for the shares, changes in market or
general financial conditions following the commencement of the offering, or regulatory
considerations.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event the stock-based incentive plan providing for stock awards and stock options is
approved by stockholders, and assuming shares are purchased for the stock awards at $8.00 per
share, an additional $1.1&nbsp;million, $1.3&nbsp;million, $1.4&nbsp;million and $1.7&nbsp;million of net proceeds
will be used by the holding company at the minimum, midpoint, maximum and adjusted maximum of
the offering range, respectively. In this case, the net proceeds retained by Oneida
Financial-New would be $10.1&nbsp;million, $12.0&nbsp;million, $13.9&nbsp;million and $16.1&nbsp;million,
respectively, at the minimum, midpoint, maximum and adjusted maximum of the offering range.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments for shares of common stock made through withdrawals from existing deposit
accounts will not result in the receipt of new funds for investment but will result in a reduction
of Oneida Savings Bank&#146;s deposits. The net proceeds may vary because total expenses relating to
the offering may be more or less than our estimates. For example, our expenses would increase if a
syndicated community offering were used to sell shares of common stock not purchased in the
subscription and community offerings.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial-New May Use the Proceeds it Retains From the Offering:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to invest in securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of financial institutions or other financial services
companies, including insurance agencies, as opportunities arise, although we do not
currently have any agreements or understandings regarding any specific acquisition
transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to fund a loan to the employee stock ownership plan to purchase shares of common
stock in the offering (between $1.1&nbsp;million and $1.4&nbsp;million, or $1.7&nbsp;million if the
offering is increased by 15%);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to pay cash dividends to stockholders;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to repurchase shares of our common stock; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for other general corporate purposes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Initially, a substantial portion of the net proceeds will be invested in short-term
investments, investment-grade debt obligations and mortgage-backed securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under current Office of Thrift Supervision regulations, we may not repurchase shares of our
common stock during the first year following the completion of the conversion, except when
extraordinary circumstances exist and with prior regulatory approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Savings Bank May Use the Net Proceeds it Receives From the Offering:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to fund new loans, including one-to-four family residential mortgage loans,
commercial real estate and commercial business loans, home equity loans and automobile
and other consumer loans;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to expand its retail banking franchise by acquiring new branches or by acquiring
other financial institutions or other financial services companies, including insurance
agencies, as opportunities arise, although we do not currently have any agreements to
acquire a financial institution or other entity;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to enhance existing products and services and to support the development of new
products and services;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to invest in securities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for other general corporate purposes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Initially, a substantial portion of the net proceeds will be invested in short-term
investments, investment-grade debt obligations and mortgage-backed securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our return on equity may be relatively low until we are able to effectively reinvest the
additional capital raised in the offering. Until we can increase our net interest income and
non-interest income, our return on equity may be below the industry average, which may negatively
affect the value of our common stock. See &#147;Risk Factors&#151;Our return on equity initially will be low
compared to our historical performance. A lower return on equity may negatively impact the trading
price of our common stock.&#148;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->36<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="156"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OUR DIVIDEND POLICY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial Corp. has paid a semiannual cash dividend since August&nbsp;1999. During the six
months ended December&nbsp;31, 2009, Oneida Financial Corp. paid a semiannual cash dividend of $0.24 per
share, which equals $0.48 per share on an annualized basis. After the conversion, we intend to
continue to pay an annual cash dividend of $0.48, payable quarterly. This dividend would represent
a 6% annual yield based on the initial offering price of $8.00 per share. However, after the
conversion, the dividend rate and the continued payment of dividends will primarily depend on our
earnings, alternative uses for capital, our capital requirements, acquisition opportunities, our
financial condition and results of operations and, to a lesser extent, statutory and regulatory
limitations, tax considerations and general economic conditions. No assurance can be given that we
will continue to pay dividends or that they will not be reduced in the future. Additionally, we
cannot guarantee that the amount of dividends that we pay after the conversion and offering will be
equal to the per share dividend amount that Oneida Financial Corp. shareholders currently receive.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the plan of conversion and reorganization, Oneida Financial-New will not be permitted to
pay dividends on its capital stock if its stockholder&#146;s equity would be reduced below the amount of
the liquidation account established in connection with the conversion. See &#147;The Conversion and
Offering&#151;Liquidation Rights.&#148; Oneida Financial-New will also be subject to state law limitations
on the payment of dividends. Maryland law generally limits dividends to an amount equal to the
excess of our capital surplus over payments that would be owed upon dissolution to stockholders
whose preferential rights upon dissolution are superior to those receiving the dividend, and to an
amount that would not make us insolvent. In addition, pursuant to Office of Thrift Supervision
regulations, during the three-year period following the conversion, we will not take any action to
declare an extraordinary dividend to stockholders that would be treated by recipients as a tax-free
return of capital for federal income tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds from which Oneida Financial-New may pay dividends will include the net proceeds retained
by it and earnings thereon, as well as dividends from Oneida Savings Bank. Oneida Savings Bank will
not be permitted to make a capital distribution to Oneida Financial-New if after making such
distribution it would be undercapitalized. Under New York Banking Law, Oneida Savings Bank may
generally only pay dividends out of net profits. The approval of the Superintendent is required if
the total of all dividends declared in any calendar year will exceed net profits for that year plus
the retained net profits of the preceding two years, less any required transfer to surplus or a
fund for the retirement of any preferred stock. In addition, no dividends may be declared,
credited or paid if the effect thereof would cause Oneida Savings Bank&#146;s capital to be reduced
below the amount required by the Superintendent or the Federal Deposit Insurance Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For information concerning additional federal and state law and regulations regarding the
ability of Oneida Savings Bank to make capital distributions, including the payment of dividends to
Oneida Financial Corp., see &#147;Taxation&#151;Federal Taxation&#148; and &#147;Supervision and Regulation&#151;Federal
Banking Regulation.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Selected Consolidated Financial and Other Data of Oneida Financial Corp.&#148; and &#147;Market for
the Common Stock&#148; for information regarding our historical dividend payments.
</DIV>
<DIV align="left">
<A name="157"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MARKET FOR THE COMMON STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial Corp.&#146;s common stock is currently listed on the Nasdaq Capital Market under
the symbol &#147;ONFC.&#148; Upon completion of the conversion, we expect the common stock of Oneida
Financial-New will trade on the Nasdaq Global Market under the symbol &#147;ONFCD&#148; for a period of 20
trading days after the completion of the offering. Thereafter, the trading symbol will revert to
&#147;ONFC.&#148; To list our stock on the Nasdaq Global Market, we are required to have at least three
broker-dealers who will make a market in our common stock. Oneida Financial Corp. currently has
more than three market
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->37<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">makers, including Stifel, Nicolaus &#038; Company, Incorporated. Stifel, Nicolaus &#038; Company,
Incorporated has advised us that it intends to make a market in our common stock following the
offering, but it is under no obligation to do so.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The development of a public market having the desirable characteristics of depth, liquidity
and orderliness depends on the existence of willing buyers and sellers, the presence of which is
not within our control or that of any market maker. The number of active buyers and sellers of our
common stock at any particular time may be limited, which may have an adverse effect on the price
at which our common stock can be sold. There can be no assurance that persons purchasing the
common stock will be able to sell their shares at or above the $8.00 price per share in the
offering. Purchasers of our common stock should have a long-term investment intent and should
recognize that there may be a limited trading market in our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the high and low trading prices for shares of Oneida Financial
Corp. common stock and cash dividends paid per share for the periods indicated. As of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, there were <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> publicly held shares of Oneida Financial Corp. common stock
issued and outstanding (excluding shares held by Oneida Financial, MHC). In connection with the
conversion, each existing publicly held share of common stock of Oneida Financial Corp. will be
converted into a right to receive a number of shares of Oneida Financial-New common stock, based
upon the exchange ratio that is described in other parts of this prospectus. See &#147;The Conversion
and Offering&#151;Share Exchange Ratio for Current Stockholders.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the close of business on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, there were<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>shares outstanding. The
high and low closing prices for the quarterly periods noted below were obtained from the Nasdaq
Capital Market.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Price Per Share</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Cash</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Dividend Per Share</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2010</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second quarter (through <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fourth quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2008</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fourth quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6.99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.24</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;8, 2010, the business day immediately preceding the public announcement of
the conversion, and on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, the closing prices of Oneida Financial Corp. common
stock as reported on the Nasdaq Capital Market were $9.32 per share and $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share,
respectively. At <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, Oneida Financial Corp. had approximately <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> stockholders of
record. On the effective date of the conversion, all publicly held shares of Oneida Financial Corp.
common stock, including shares of common stock held by our officers and directors, will be
converted automatically into and become the right to receive a number of shares of Oneida
Financial-New common stock determined pursuant to the exchange ratio. See &#147;The Conversion and
Offering&#151;Share Exchange Ratio for Current Stockholders.&#148; All currently outstanding options to
purchase shares of Oneida Financial Corp. common stock will expire on April&nbsp;25, 2010, unless
previously exercised.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->38<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<!-- LANDSCAPE -->
</DIV>


<DIV align="left">
<A name="158"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, Oneida Savings Bank exceeded all of the applicable regulatory capital
requirements and was considered &#147;well capitalized.&#148; The table below sets forth the historical
equity capital and regulatory capital of Oneida Savings Bank at December&nbsp;31, 2009, and the pro
forma regulatory capital of Oneida Savings Bank, after giving effect to the sale of shares of
common stock at a $8.00 per share purchase price and assuming the receipt by Oneida Savings Bank of
between $12.2&nbsp;million and $19.4&nbsp;million of the net offering proceeds at the minimum and maximum, as
adjusted, of the offering range, respectively.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="30" style="border-bottom: 1px solid #000000"><B>Pro Forma at December 31, 2009, Based Upon the Sale in the Offering of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Oneida Savings Bank Historical at</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>3,346,875 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>3,937,500 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>4,528,125 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>5,207,344 Shares (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Assets</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(2)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">57,176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">68,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">70,563</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.66</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">75,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.30</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Core (leverage)
capital (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51,034</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,121</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">55,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.69</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">57,608</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.07</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Core (leverage)
requirement (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,778</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,883</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excess</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30,434</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.69</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.07</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1 risk-based
capital (5) (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51,034</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.76</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,121</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.27</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">55,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">57,608</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.35</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1 risk-based
requirement (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,035</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excess</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,834</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">35,035</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.76</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,104</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.27</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">41,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.35</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total risk-based
capital (5) (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.48</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.99</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,509</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.07</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Risk-based
requirement (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,034</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excess</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,835</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,938</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.48</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.99</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.07</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Proceeds Infused</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MHC capital
contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: ESOP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,071</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,449</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,666</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro Forma Increase</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,474</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As adjusted to give effect to an increase in the number of shares that could occur
due to a 15% increase in the offering range to reflect demand for the shares, changes
in market or general financial conditions following the commencement of the offering,
or regulatory considerations.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Tangible and core capital levels are shown as a percentage of total adjusted assets.
Risk-based capital levels are shown as a percentage of risk-weighted assets.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Pro forma capital levels assume that the employee stock ownership plan purchases 4% of the
shares of common stock to be outstanding immediately following the stock offering with funds
we lend. Pro forma GAAP and regulatory capital have been reduced by the amount required to
fund this plan. See &#147;Management&#151;Tax-Qualified Benefit Plans&#148; for a discussion of the employee
stock ownership plan.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>The Federal Deposit Insurance Corporation requires a Tier 1 risk-based capital ratio of 4% or
greater, a leverage capital ratio of 4% or greater, and a total risk-based capital ratio of 8%
or greater.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Pro forma amounts and percentages assume net proceeds are invested in assets that carry a 20%
risk weighting.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->39<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<!-- LANDSCAPE -->
</DIV>




<DIV align="left">
<A name="159"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CAPITALIZATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents the historical consolidated capitalization of Oneida Financial
Corp. at December&nbsp;31, 2009 and the pro forma consolidated capitalization of Oneida Financial-New
after giving effect to the conversion and offering, based upon the assumptions set forth in the
&#147;Pro Forma Data&#148; section.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Pro Forma at December 31, 2009, Based upon the Sale in the Offering of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Oneida Financial</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Minimum 3,346,875</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Midpoint 3,937,500</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Maximum 4,528,125</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Maximum as adjusted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Corp. Historical at</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares at</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares at $8.00 per</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares at $8.00 per</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>5,207,344 Shares at</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>$8.00 per Share</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Share</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Share</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>$8.00 per Share (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deposits (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">489,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">489,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">489,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">489,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">489,208</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowed funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total deposits and borrowed funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">520,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">520,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">520,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">520,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">520,208</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Stockholders&#146; equity:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Preferred stock, $.01 par value,
10,000,000 shares authorized
(post-conversion) (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock, $.01 par value,
30,000,000 shares authorized
(post-conversion); shares to be
issued as reflected (3) (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional paid-in capital (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,861</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,944</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,166</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">MHC capital contribution (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained earnings (5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,024</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accumulated other comprehensive loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,961</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,961</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,961</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,961</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,961</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Less:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Treasury stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,071</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock held by employee stock
ownership plan (6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,071</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,449</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,666</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock held by stock-based
incentive plan (7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,071</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,449</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,666</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total stockholders&#146;
equity-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92,148</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-controlling interest (8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,559</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,559</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,559</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,559</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,559</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">59,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">81,559</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">85,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">89,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">94,707</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Pro Forma Shares Outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total shares outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7,809,420</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,064,656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,134,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,205,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,435,892</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Exchange shares issued</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,717,781</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,197,390</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,676,998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,228,548</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Shares offered for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,346,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,937,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,528,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,207,344</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total stockholders&#146; equity as a
percentage of total assets (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.31</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.89</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.13</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tangible equity to total assets ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.06</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.26</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.48</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.16</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As adjusted to give effect to an increase in the number of shares of common stock that
could occur due to a 15% increase in the offering range to reflect demand for shares,
changes in market or general financial conditions following the commencement of the
subscription and community offerings, or regulatory considerations.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Does not reflect withdrawals from deposit accounts for the purchase of shares of common
stock in the conversion and offering. These withdrawals would reduce pro forma deposits
and assets by the amount of the withdrawals. On a pro forma basis, reflects elimination
of $157,000 of cash in Oneida Financial, MHC held as deposits of Oneida Savings Bank.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Oneida Financial Corp. currently has 1,000,000 authorized shares of preferred stock and
20,000,000 authorized shares of common stock, par value $0.10 per share. On a pro forma
basis, Oneida Financial-New common stock and additional paid-in capital have been revised
to reflect the number of shares of Oneida Financial-New common stock to be outstanding,
which is 6,064,656 shares, 7,134,890 shares, 8,205,123 shares and 9,435,892 shares at the
minimum, midpoint, maximum and adjusted maximum of the offering range, respectively. On a
pro forma basis, reflects transfer to equity of $157,000 of net assets in Oneida
Financial, MHC.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>No effect has been given to the issuance of additional shares of Oneida Financial-New
common stock pursuant to the exercise of options under a stock-based incentive plan. If
this plan is implemented within the first year after the closing of the offering, an
amount up to 10% of the shares of Oneida Financial-New common stock sold in the offering
will be reserved for issuance upon the exercise of options under the plan. No effect has
been given to the exercise of options currently outstanding. See &#147;Management.&#148;</TD>
</TR>

</TABLE>



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>(footnotes continue on following page.)</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->40<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>The retained earnings of Oneida Savings Bank will be substantially restricted after the
conversion. See &#147;The Conversion and Offering&#151;Liquidation Rights&#148; and &#147;Supervision and
Regulation&#151;Federal Banking Regulation.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes that 4% of the shares sold in the offering will be acquired by the employee stock
ownership plan financed by a loan from Oneida Financial-New , although we reserve the
right to purchase shares in excess of 4% if necessary to complete the offering at the
minimum of the offering range. The loan will be repaid principally from Oneida Savings
Bank&#146;s contributions to the employee stock ownership plan. Since Oneida Financial-New
will finance the employee stock ownership plan debt, this debt will be eliminated through
consolidation and no liability will be reflected on Oneida Financial-New&#146;s consolidated
financial statements. Accordingly, the amount of shares of common stock acquired by the
employee stock ownership plan is shown in this table as a reduction of total stockholders&#146;
equity.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>A number of shares of common stock equal to 4.0% of the shares of common stock to be sold
in the offering will be purchased by the stock-based incentive plan in open market
purchases. The funds to be used by the plan to purchase the shares will be provided by
Oneida Financial-New. The dollar amount of common stock to be purchased is based on the
$8.00 per share subscription price in the offering and represents unearned compensation.
This amount does not reflect possible increases or decreases in the value of common stock
relative to the subscription price in the offering. As Oneida Financial-New accrues
compensation expense to reflect the vesting of shares pursuant to the plan, the credit to
capital will be offset by a charge to operations. Implementation of the plan will require
stockholder approval.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>The noncontrolling interest represents the preferred shareholder minority interest in
Oneida Preferred Funding Corp., a real estate investment trust.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>Reflects the total number of shares outstanding as of February&nbsp;28, 2010.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->41<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="160"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PRO FORMA DATA</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes historical data of Oneida Financial Corp. and pro forma data at
and for the fiscal year ended December&nbsp;31, 2009. This information is based on assumptions set
forth below and in the tables, and should not be used as a basis for projections of market value of
the shares of common stock following the conversion and offering. Moreover, pro forma
stockholders&#146; equity per share does not give effect to the liquidation account to be established in
the conversion or, in the unlikely event of a liquidation of Oneida Savings Bank, to the tax effect
of the recapture of the bad debt reserve. See &#147;The Conversion and Offering&#151;Liquidation Rights.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net proceeds in the tables are based upon the following assumptions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>40% of all shares of common stock will be sold in the subscription and
community offerings, including shares purchased by insiders, with the remaining shares
to be sold in the syndicated community offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>167,000 shares of common stock will be purchased by our executive officers and
directors, and their associates;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our employee stock ownership plan will purchase 4.0% of the shares of common
stock sold in the offering, with a loan from Oneida Financial-New. The loan will be
repaid in substantially equal payments of principal and interest over a period of 10
years;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stifel, Nicolaus &#038; Company, Incorporated will receive a fee equal to 1.0% of
the dollar amount of shares of common stock sold in the subscription and community
offerings and 5.5% of the dollar amount of shares sold in the syndicated offering. No
fee will be paid with respect to shares of common stock purchased by our qualified and
non-qualified employee stock benefit plans, or stock purchased by our officers,
directors and employees, and their immediate families; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>total expenses of the offering, including the marketing fees to be paid to
Stifel, Nicolaus &#038; Company, Incorporated, will be between $2.3&nbsp;million at the minimum
of the offering range and $2.9&nbsp;million at the maximum of the offering range, as
adjusted.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We calculated pro forma consolidated net earnings for the fiscal year ended December&nbsp;31, 2009
as if the estimated net proceeds we received had been invested at the beginning of the year at an
assumed interest rate of 3.30% (2.02% on an after-tax basis). This interest rate was calculated
assuming that 50% of the net proceeds are placed into 15&nbsp;year conforming mortgage-backed securities
with the remaining 50% of the net proceeds invested in five-year U.S. Treasury securities, all
based on market interest rates prevailing as of December&nbsp;31, 2009. This method reflects the
approximate use of proceeds anticipated by Oneida Financial-New. The effect of withdrawals from
deposit accounts for the purchase of shares of common stock has not been reflected. Historical and
pro forma per share amounts have been calculated by dividing historical and pro forma amounts by
the indicated number of shares of common stock. No effect has been given in the pro forma
stockholders&#146; equity calculations for the assumed earnings on the net proceeds. It is assumed that
Oneida Financial-New will retain between $11.1&nbsp;million and $15.3&nbsp;million of the estimated net
proceeds of the offering, or $17.7&nbsp;million if the offering range is increased by 15%. The actual
net proceeds from the sale of shares of common stock will not be determined until the offering is
completed. However, we currently estimate the net proceeds to be between $24.4&nbsp;million and $33.5
million, or $38.8&nbsp;million if the offering range is increased by 15%.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->42<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following pro forma information may not be representative of the financial effects of the
offering at the dates on which the offering actually occurs, and should not be taken as indicative
of future results of operations. Pro forma consolidated stockholders&#146; equity represents the
difference between the stated amounts of our assets and liabilities. The pro forma stockholders&#146;
equity is not intended to represent the fair market value of the shares of common stock.
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>At or for the Fiscal Year Ended December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Based upon the Sale at $8.00 Per Share of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>3,346,875</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>3,937,500</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>4,528,125</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>5,207,344</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands, except per share amounts)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross proceeds of offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">36,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">41,659</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plus: market value of shares issued in the exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,742</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,828</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma market capitalization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,487</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross proceeds of offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">36,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">41,659</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,892</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Estimated Net Proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,767</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Less: Common stock purchased by employee stock
ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,071</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,449</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,666</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Less: Common stock purchased by stock-based incentive
plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,071</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,449</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,666</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Estimated net proceeds, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,286</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30,634</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">35,435</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>For the Twelve Months Ended December&nbsp;31, 2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consolidated net earnings:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,113</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma adjustments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income on adjusted net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">451</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">717</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Employee stock ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(66</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(77</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(89</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(102</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Recognition and retention plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(131</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(155</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(178</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(204</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Stock option plan (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(187</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(221</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(254</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(292</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Pro forma net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,180</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,212</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,232</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earning per share (5):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro form adjustments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income on adjusted net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Employee stock ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Recognition and retention plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Stock option plan (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Pro forma earnings per share (5) (6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price to pro forma net earnings per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.43x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.33x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.38x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.39x</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of shares used in earnings per share calculations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,944,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,993,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,042,111</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,248,427</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>At December&nbsp;31, 2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity-controlling interest:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,557</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Estimated net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,767</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Equity increase from MHC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by employee stock
ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,071</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,449</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,666</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by recognition and
retention plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,071</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,449</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,666</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Pro forma stockholders equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92,149</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Intangible assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(24,813</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(24,813</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(24,813</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(24,813</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Pro forma tangible stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">54,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">62,535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">67,336</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity per share-controlling interest (7):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Estimated net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Plus: Assets received from the MHC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by employee stock
ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.18</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.18</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.18</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.18</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by recognition and
retention plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.18</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.18</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.18</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.18</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Pro forma stockholders&#146; equity per share (6) (7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Intangible assets per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(4.09</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3.48</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2.63</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Pro forma tangible stockholders&#146; equity per share
(6) (7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.14</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>(footnotes begin on following page.)</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->43<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>At or for the Fiscal Year Ended December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Based upon the Sale at $8.00 Per Share of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>3,346,875</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>3,937,500</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>4,528,125</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>5,207,344</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands, except per share amounts)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price as percentage of pro forma stockholders&#146;
equity per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">61.40</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">68.61</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">75.12</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">81.88</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price as percentage of pro forma tangible
stockholders&#146; equity per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">89.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">97.80</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">104.85</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">112.04</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of shares outstanding for pro forma book value
per share calculations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,064,656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,134,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,205,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,435,892</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As adjusted to give effect to an increase in the number of shares that could occur due to
a 15% increase in the offering range to reflect demand for the shares, changes in market and
financial conditions following the commencement of the offering, or regulatory considerations.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes that 4.0% of shares of common stock sold in the offering will be purchased by
the employee stock ownership plan (although we reserve the right to purchase shares in excess
of 4% if necessary to complete the offering at the minimum of the offering range). For
purposes of this table, the funds used to acquire these shares are assumed to have been
borrowed by the employee stock ownership plan from Oneida Financial-New. Oneida Savings Bank
intends to make annual contributions to the employee stock ownership plan in an amount at
least equal to the required principal and interest payments on the debt. Oneida Savings
Bank&#146;s total annual payments on the employee stock ownership plan debt are based upon 10 equal
annual installments of principal and interest. ASC Topic 718 requires that an employer record
compensation expense in an amount equal to the fair value of the shares committed to be
released to employees. The pro forma adjustments assume that the employee stock ownership
plan shares are allocated in equal annual installments based on the number of loan repayment
installments assumed to be paid by Oneida Savings Bank, the fair value of the common stock
remains equal to the subscription price and the employee stock ownership plan expense reflects
an effective combined federal and state tax rate of 38.69%. The unallocated employee stock
ownership plan shares are reflected as a reduction of stockholders&#146; equity. No reinvestment
is assumed on proceeds contributed to fund the employee stock ownership plan. The pro forma
net income further assumes that 13,388, 15,750, 18,113 and 20,829 shares were committed to be
released during the period at the minimum, midpoint, maximum, and adjusted maximum of the
offering range, respectively, and in accordance with ASC Topic 718, only the employee stock
ownership plan shares committed to be released during the period were considered outstanding
for purposes of net income per share calculations. The additional compensation expense noted
above does not give effect to our intention to reduce the amount of discretionary
contributions that we have made in recent years to our employee stock ownership plan. For
example, in the year ended December&nbsp;31, 2009, we contributed approximately $300,000 to the
employee stock ownership plan to fund the purchase of shares of our common stock in the open
market. It is expected that these planned reductions in discretionary contributions will
offset the contributions made to pay off the new loan.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>If approved by Oneida Financial-New&#146;s stockholders, the stock recognition and retention
plan may purchase an aggregate number of shares of common stock equal to 4.0% of the shares to
be sold in the offering subject to adjustment as may be required by Office of Thrift
Supervision regulations or policy to reflect stock options previously granted by Oneida
Savings Bank or Oneida Financial Corp. (or a greater number of shares if the plan is
implemented more than one year after completion of the conversion). Stockholder approval of
the stock recognition and retention plan, and purchases by the plan may not occur earlier than
six months after the completion of the conversion. The shares may be acquired directly from
Oneida Financial-New or through open market purchases. Shares in the stock recognition and
retention plan are assumed to vest over a period of five years. The funds to be used by the
stock recognition and retention plan to purchase the shares will be provided by Oneida
Financial-New. The table assumes that (i)&nbsp;the stock recognition and retention plan acquires
the shares through open market purchases at $8.00 per share, (ii)&nbsp;20% of the amount
contributed to the stock recognition and retention plan is amortized as an expense during the
fiscal year ended December&nbsp;31, 2009, and (iii)&nbsp;the stock recognition and retention plan
expense reflects an effective combined federal and state tax rate of 38.69%. Assuming
stockholder approval of the stock recognition and retention plan and that shares of common
stock (equal to 4.0% of the shares sold in the offering) are awarded through the use of
authorized but unissued shares of common stock, stockholders would have their ownership and
voting interests diluted by approximately 2.16% at the maximum of the offering range.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>If approved by Oneida Financial-New&#146;s stockholders, the stock option plan may grant
options to acquire an aggregate number of shares of common stock equal to 10% of the shares to
be sold in the offering subject to adjustment as may be required by Office of Thrift
Supervision regulations or policy to reflect stock options previously granted by Oneida
Savings Bank or Oneida Financial Corp. (or a greater number of shares if the plan is
implemented more than one year after completion of the conversion). Stockholder approval of
the stock option plan may not occur earlier than six months after the completion of the
conversion. In calculating the pro forma effect of the stock option plan, it is assumed that
the exercise price of the stock options and the trading price of the common stock at the date
of grant were $8.00 per share, the estimated grant-date fair value determined using the
Black-Scholes option pricing model was $3.10 for each option, the aggregate grant-date fair
value</TD>
</TR>

</TABLE>



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>(footnotes continue on following page.)</I>
</DIV>







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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>of the stock options was amortized to expense on a straight-line basis over a
five-year vesting period of the options, and that 25% of the amortization expense (or the assumed
portion relating to options granted to directors) resulted in a tax benefit using an assumed tax
rate of 38.69%. The actual expense of the stock option plan will be determined by the grant-date
fair value of the options, which will depend on a number of factors, including the valuation
assumptions used in the option pricing model ultimately adopted. Under the above assumptions,
the adoption of the stock option plan will result in no additional shares under the treasury
stock method for purposes of calculating earnings per share. There can be no assurance that the
actual exercise price of the stock options will be equal to the $8.00 price per share. If a
portion of the shares to satisfy the exercise of options under the stock option plan is obtained
from the issuance of authorized but unissued shares, our net income per share and stockholders&#146;
equity per share would decrease. The issuance of authorized but unissued shares of common stock
pursuant to the exercise of options under such plan would dilute stockholders&#146; ownership and
voting interests by approximately 5.23% at the maximum of the offering range.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Per share figures include publicly held shares of Oneida Financial Corp. common
stock that will be exchanged for shares of Oneida Financial-New common stock in the
conversion. See &#147;The Conversion and Offering&#151;Share Exchange Ratio for Current
Stockholders.&#148; Net income per share computations are determined by taking the number of
shares assumed to be sold in the offering and the number of new shares assumed to be
issued in exchange for publicly held shares and, in accordance with ASC Topic 718,
subtracting the employee stock ownership plan shares which have not been committed for
release during the respective periods. See note 2. The number of shares of common stock
actually sold and the corresponding number of exchange shares may be more or less than the
assumed amounts.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>The retained earnings of Oneida Savings Bank will be substantially restricted after
the conversion. See &#147;Our Dividend Policy,&#148; &#147;The Conversion and Offering&#151;Liquidation
Rights&#148; and &#147;Supervision and Regulation&#151;Federal Banking Regulation&#151;Capital Distributions.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Per share figures include publicly held shares of Oneida Financial Corp. common
stock that will be exchanged for shares of Oneida Financial-New common stock in the
conversion. Stockholders&#146; equity per share calculations are based upon the sum of (i)&nbsp;the
number of subscription shares assumed to be sold in the offering and (ii)&nbsp;shares to be
issued in exchange for publicly held shares at the minimum, midpoint, maximum and adjusted
maximum of the offering range, respectively. The exchange shares reflect an exchange ratio
of 0.7766, 0.9136, 1.0507 and 1.2083 at the minimum, midpoint, maximum and adjusted
maximum of the offering range, respectively. The number of subscription shares actually
sold and the corresponding number of exchange shares may be more or less than the assumed
amounts.</TD>
</TR>

</TABLE>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="161"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<BR>
AND RESULTS OF OPERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This discussion and analysis reflects our consolidated financial statements and other relevant
statistical data, and is intended to enhance your understanding of our financial condition and
results of operations. The information in this section has been derived from the audited
consolidated financial statements, which appear beginning on page F-1 of this prospectus. You
should read the information in this section in conjunction with the business and financial
information regarding Oneida Financial Corp. provided in this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Overview</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our results of operations depend primarily on our net interest income. Net interest income is
the difference between the interest income we earn on our interest-earning assets, consisting
primarily of loans, investment securities, mortgage-backed securities and other interest-earning
assets (primarily cash and cash equivalents), and the interest we pay on our interest-bearing
liabilities, consisting primarily of deposits and Federal Home Loan Bank advances and other
borrowings. Net interest income is a function of our interest rate spread, which is the difference
between the average yield earned on our interest-earning assets and the average rate paid on our
interest-bearing liabilities, as well as a function of the average balance of interest-earning
assets compared to interest-bearing liabilities. Also contributing to our earnings is noninterest
income, which consists primarily of service charges and fees on loan and deposit products and
services, fees from our insurance agency, benefits consulting and risk management subsidiaries and
fees from trust services, and net gains and losses on sale of investments. Interest income and
noninterest income are offset by provisions for loan losses, general administrative and other
expenses, including employee compensation and benefits and occupancy and equipment costs, as well
as by state and federal income tax expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our results of operations are also significantly affected by general economic and competitive
conditions, particularly with respect to changes in interest rates, government policies and actions
of regulatory authorities. Future changes in applicable law, regulations or government policies may
materially affect our financial condition and results of operations. See &#147;Risk Factors&#148; beginning
on page &#95;&#95;&#95;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Business Strategy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In guiding our operations, we seek to implement various strategies designed to enhance the
institution&#146;s profitability consistent with safety and soundness considerations. These strategies
include a continuing focus on our community banking franchise while distinguishing our company as a
complete financial services provider, and by promoting and continuing to expand our insurance,
consulting and risk management businesses. We believe these strategies will enable us to continue
to grow our assets, while providing superior service to our customers, remaining focused on high
asset quality, continuing to grow and diversify revenue and generating favorable returns to our
stockholders. The following are the key elements of our business strategy:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Continuing our Community Oriented Focus</I></B><B>. </B>We have been committed to meeting the financial
needs of the communities we serve and providing quality service to our customers. We believe we
can be more effective than many of our competitors in serving our customers because of our ability
to promptly and effectively respond to customer needs and inquiries. Our ability to succeed in our
communities is enhanced by the stability of senior management. Senior management has an average
tenure with Oneida Savings Bank of over 20&nbsp;years and each individual who comprises senior
management has over 25&nbsp;years experience in the banking industry.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our community focus is further supported by the community service activities of our employees
and the charitable activities of The Oneida Savings Bank Charitable Foundation. Our foundation was
established in December&nbsp;1998 in connection with our initial public offering. The foundation
provides funds to eligible nonprofit organizations to help them carry out unique, innovative
projects in specific fields of interest. The foundation&#146;s goal is to fund projects that will
enhance the quality of life in the communities served by Oneida Savings Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Expanding our Geographic Reach</I></B><B>. </B>Since 1998, we have grown our traditional community banking
franchise organically and through acquisitions of banks and nonbank corporations that offer trust
services, insurance sales, financial services, employee benefits consulting and risk management
services. The expansion into insurance and other financial services businesses has enabled Oneida
Savings Bank to evolve from a traditional savings bank to a full-service financial services
organization. We plan to continue to seek opportunities to grow our business through a combination
of de novo branching and complementary acquisitions in our existing market and contiguous markets.
We will consider acquisition opportunities that expand our geographic reach in banking, insurance
or other complementary financial service businesses, although we do not currently have any
agreements or understandings regarding any specific acquisition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Continuing to Improve Earnings and Diversify Income Sources. </I></B>We continue to seek ways of
increasing our income by increasing our fee income and other sources of non-interest income through
traditional banking sources and insurance and financial services businesses.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Community Banking. </I>We continue to actively market our core banking products to
attract new fee-based deposit accounts and checking account related services to new
and existing customers. We offer our customers internet banking, an account
overdraft program, e-commerce capabilities and debit cards as an account retention
tool and to increase non-interest income. These products and services represent
continuing sources of fee income. We also emphasize our trust department services
with the expectation that fees generated by the trust department will increase as
the assets under management grow. In addition, we receive fee income from
servicing loans sold in the secondary market.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Financial Service Subsidiaries. </I>In recent years, we have increased the services
and products we offer through our insurance agency, benefits consulting, and risk
management subsidiaries. We initially entered the insurance and financial services
business with the acquisition in 2000 of Bailey &#038; Haskell Associates, Inc., which
operates as an insurance agency subsidiary of Oneida Savings Bank with six New York
offices and an office in South Carolina. We acquired Benefit Consulting Group
LLC, an employee benefits consulting and retirement plan administration firm in
2006. The resulting company, Benefit Consulting Group Inc., is also a wholly owned
subsidiary of Oneida Savings Bank. The expansion of our financial services business
has continued to provide an increasing revenue source. During 2008, we established
Workplace Health Solutions, Inc., a wholly owned subsidiary of Oneida Savings Bank,
to develop a series of risk management services to help mitigate and prevent work
related injuries, and to assist injured workers and their employers when a
workplace injury occurs. This subsidiary was designed to complement our other
subsidiaries with an overall philosophy of innovative risk management services. We
intend to continue to expand our financial services businesses to increase our
earnings and diversify our revenue sources.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Growing Our Loan Portfolios. </I></B>We intend to grow our loan portfolios while continuing to
exercise prudent loan underwriting and administration standards.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Emphasizing Origination of Commercial Real Estate, Consumer and Commercial
Business Loans. </I>We have sought to increase commercial real estate, consumer and
commercial business lending in a controlled, safe and sound manner. Because these
loans generally have higher yields and shorter terms than one-to-four family
residential mortgage loans, our goal is to increase the origination of these loans
consistent with safety and soundness considerations. At December&nbsp;31, 2009, our
loan portfolio was composed of 19.8% commercial real estate loans, 14.4% consumer
loans and 13.0% commercial business loans.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Continuing the Origination of One-to-Four Family Real Estate Loans.</I>
Historically, Oneida Savings Bank has emphasized the origination of one-to-four
family residential mortgage loans within Madison and Oneida counties and the
surrounding counties. During 2009, our one-to-four family mortgage loan
originations have been primarily fixed-rate loans. We generally sell our
fixed-rate one-to-four family loan originations, and such loans are sold without
recourse and on a servicing-retained basis. During the years ended December&nbsp;31,
2009 and 2008, we sold $55.9&nbsp;million and $18.6&nbsp;million, respectively, in fixed-rate
one-to-four family mortgage loans. In addition, adjustable-rate mortgage (&#147;ARM&#148;)
loans and hybrid ARM loans, which have a fixed rate of interest for the first three
to five years and adjust annually thereafter, represented a lower percentage of
total originations. Residential real estate loan origination volume, particularly
fixed-rate originations, increased significantly during 2009 compared with 2008 due
to declining market interest rates and a reduction of non-bank mortgage brokers
competing in the market area.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Continuing Our Conservative Underwriting Standards and Maintaining our Strong Asset Quality.</I></B>
We continue to maintain exceptional asset quality and reserve coverage. At December&nbsp;31, 2009, our
non performing loans totaled $551,000, or 0.18% of total loans, and our ratio of allowance for loan
losses to total nonperforming loans was 526.5%. Our asset quality reflects our conservative
underwriting standards, the diligence and experience of our loan collection personnel and the
stability of the local economy. As part of our evaluation of our asset quality, we also use an
independent third party loan review firm to evaluate certain parts of the loan portfolio on a
semiannual basis. Finally, we have not and do not plan to originate or participate in any
sub-prime or Alt-A lending programs or loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Growing Our Core Deposit Base. </I></B>Oneida Savings Bank is a market leader in offering deposit
accounts in the communities we serve. We continue to emphasize offering core deposits to
individuals, businesses and municipalities located in our market area. Core deposits represent our
best opportunity to develop customer relationships that enable us to cross sell the products and
services of our complementary subsidiaries. Core deposits are our least costly source of funds
which improves our interest rate spread and also contribute non-interest income from account
related services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Expected Increase in Non-Interest Expense as a Result of the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following the completion of the conversion, our non-interest expense is expected to increase
because of the increased compensation expenses associated with the purchase of shares of common
stock by our employee stock ownership plan and the possible implementation of a stock-based
incentive plan, if approved by our stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assuming that 5,207,344 shares are sold in the offering:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the employee stock ownership plan will acquire 208,294 shares of common stock
with a $1.7&nbsp;million loan that is expected to be repaid over 10&nbsp;years, resulting in an
annual pre-</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->48<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>tax expense of approximately $166,635 (assuming that the shares of common stock
maintain a value of $8.00 per share); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the new stock-based incentive plan would award a number of shares equal to 4%
of the shares sold in the offering, or 208,294 shares, to eligible participants, and
such awards would be expensed as the awards vest. Assuming all shares are awarded
under the plan at a price of $8.00 per share, and that the awards vest over five years,
the corresponding annual pre-tax expense associated with shares awarded under the plan
would be approximately $333,270; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the new stock-based incentive plan would award options to purchase a number of
shares equal to 10% of the shares
sold in the offering, or 520,734 shares, to eligible
participants, and such options would be expensed as the options vest. Assuming all
options are awarded under the stock-based incentive plan at a price of $8.00 per share,
and that the options vest over a minimum of five years, the corresponding annual
pre-tax expense associated with options awarded under the stock-based incentive plan
would be approximately $322,855 (assuming a grant-date fair value of $3.10 per option,
using the Black-Scholes option valuation methodology).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The actual expense that will be recorded for the employee stock ownership plan will be
determined by the number of shares acquired by the plan in the offering and the market value of the
shares of common stock as they are released to employees over the term of the loan, and whether the
loan is repaid faster than its contractual term. Accordingly, increases in the stock price above
$8.00 per share will increase the total employee stock ownership plan expense, and accelerated
repayment of the loan will increase the employee stock ownership plan expense for those periods in
which accelerated or larger loan repayments are made. Further, the actual expense of the shares
awarded under the stock-based incentive plan will be determined by the number of shares encompassed
by the plan, the fair market value of the stock on the grant date, which might be greater than
$8.00 per share, and the mix of stock options and stock awards granted under the plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Financial Condition</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Assets. </I></B>Total assets at December&nbsp;31, 2009 were $590.5&nbsp;million, an increase of $50.4&nbsp;million,
or 9.3%, from $540.1&nbsp;million at December&nbsp;31, 2008. The increase in total assets was
primarily attributable to an increase in cash equivalents and investment securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management continues to maintain a diversified loan portfolio mix. This strategy is supported
through the origination and retention of consumer and commercial business loans with the intent of
increasing the average yield on our interest-earning assets, and the origination for sale in the
secondary market of lower yielding fixed-rate one-to-four family residential real estate loans.
Total consumer, commercial business and commercial real estate loans decreased by $2.3&nbsp;million
during 2009. The decrease in consumer, commercial business and commercial real estate loans was
primarily due to a decrease in demand, particularly automobile lending, and commercial borrowers
reducing their outstanding commercial line of credit balances during 2009. Residential real estate
loans decreased $4.0&nbsp;million during 2009. During the year ended December&nbsp;31, 2009, a total of $55.9
million in fixed-rate residential mortgage loans were sold, compared with loan sales of $18.6
million during 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank reinvests proceeds from loan sales and investment sales and investment
security maturities in other loans as new loan origination volume warrants. Investment and
mortgage-backed securities provide improved liquidity as compared with individual mortgage loans
thereby allowing Oneida Savings Bank to accommodate periods of increased loan demand.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->49<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities decreased $8.6&nbsp;million, or 11.6%, to $65.7&nbsp;million at December&nbsp;31,
2009 as compared with $74.3&nbsp;million at December&nbsp;31, 2008. The decrease in mortgage-backed
securities is primarily the result of the repayment and sales of securities during 2009.
Investment securities increased $36.1&nbsp;million, or 60.0%, to $96.5&nbsp;million at December&nbsp;31, 2009 as
compared to $60.4&nbsp;million at December&nbsp;31, 2008. The increase in investment securities was due to
the increase in municipal deposits which require full collateralization with treasury, agency and
municipal securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We adopted <I>The Fair Value Option of Financial Assets and Financial Liabilities</I>, resulting in
the reclassification of certain investment securities to that of trading securities as of January
1, 2008. Trading securities increased $1.7&nbsp;million, or 28.8%, to $7.6&nbsp;million at December&nbsp;31, 2009
as compared with $5.9&nbsp;million at December&nbsp;31, 2008 and represent common and preferred equity
securities that we have elected to adjust to fair value. The increase in trading securities
represents the increase in fair value during 2009 and was reflected through the income statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents increased $26.2&nbsp;million or 197.4% to $39.5&nbsp;million at December&nbsp;31,
2009 from $13.3&nbsp;million at December&nbsp;31, 2008. The increase in cash and cash equivalents was due to
our intention to maintain a higher level of cash liquidity, an increase in deposits and maintaining
a larger cash balance with the Federal Reserve Bank of New York for more favorable risk-based
capital treatment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Liabilities. </I></B>Total liabilities increased by $46.1&nbsp;million or 9.5% to $531.4&nbsp;million at
December&nbsp;31, 2009 from $485.3&nbsp;million at December&nbsp;31, 2008. The increase was primarily the result
of an increase in deposits of $63.7&nbsp;million, partially offset by a decrease in borrowings of $21.8
million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposit accounts increased $63.7&nbsp;million, or 15.0%, to $489.4&nbsp;million at December&nbsp;31, 2009
from $425.7&nbsp;million at December&nbsp;31, 2008. Interest-bearing deposit accounts increased by $61.5
million, or 16.8%, to $426.4&nbsp;million at December&nbsp;31, 2009 from $364.9&nbsp;million at December&nbsp;31, 2008.
Non-interest bearing deposit accounts increased $2.2&nbsp;million, or 3.6%, to $63.0&nbsp;million at
December&nbsp;31, 2009 from $60.8&nbsp;million at December&nbsp;31, 2008. Core deposit accounts which include
checking, savings and money market accounts increased $62.6&nbsp;million or 23.3%. Time deposits
increased $1.1&nbsp;million or 0.7%. The increase in core deposit accounts was distributed throughout
our existing retail banking branch network and as a result of an increase in municipal deposits
offered through our limited purpose commercial banking subsidiary, State Bank of Chittenango.
Municipal deposits increased $31.1&nbsp;million to $86.0&nbsp;million at December&nbsp;31, 2009 from $54.9&nbsp;million
at December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings decreased $21.8&nbsp;million, or 41.3%, to $31.0&nbsp;million at December&nbsp;31, 2009 from $52.8
million at December&nbsp;31, 2008. The decrease in borrowings was due to our decision not to renew a
portion of the advances that matured during the year. At December&nbsp;31, 2009, our FHLBNY overnight
line of credit facility was not in use. At December&nbsp;31, 2008, there was $3.8&nbsp;million outstanding
in the overnight line of credit facility. Overnight advances are accessed from time to time to
fund loan originations and short-term deposit outflows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities increased $4.2&nbsp;million, or 61.8%, to $11.0&nbsp;million at December&nbsp;31, 2009 from
$6.8&nbsp;million at December&nbsp;31, 2008. The increase in other liabilities is primarily due to an
increase in future dated commissions and premiums payable in our insurance subsidiary at December
31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stockholders&#146; Equity. </I></B>Total stockholders&#146; equity at December&nbsp;31, 2009 was $59.1&nbsp;million, an
increase of $4.3&nbsp;million, or 7.8%, from $54.8&nbsp;million at December&nbsp;31, 2008. The increase in
stockholders&#146; equity reflects the contribution of net income of $4.1&nbsp;million. In addition, there
was an increase in accumulated other comprehensive income of $1.6&nbsp;million at December&nbsp;31, 2009
resulting from an increase in the market value of mortgage-backed and investment securities and the
change in the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->50<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">unrealized loss on pension benefits. Changes in interest rates and market volatility resulted
in a decrease in the net unrealized loss on our available for sale securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Partially offsetting the increases in stockholders&#146; equity was the payment of cash dividends
to stockholders. Stockholders were paid dividends during 2009 of $0.48 per share resulting in a
reduction in stockholders&#146; equity of $1.7&nbsp;million. Share based compensation earned under our stock
plans was $259,000 during 2009 as compared to $166,000 during 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Analysis of Net Interest Income</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank&#146;s principal business has historically consisted of offering savings
accounts and other deposits to the general public and using the funds from such deposits to make
loans secured by residential and commercial real estate, as well as consumer and commercial
business loans. Oneida Savings Bank also invests a significant portion of its assets in investment
securities and mortgage-backed securities, both of which have classifications of available for sale
and held to maturity. Our results of operations depend primarily upon net interest income, which
is the difference between income earned on interest-earning assets, such as loans and investments,
and interest paid on interest-bearing liabilities, such as deposits and borrowings. Net interest
income is directly affected by changes in volume and mix of interest-earning assets and
interest-bearing liabilities which support those assets, as well as the changing interest rates
when differences exist in the repricing of assets and liabilities.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->51<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Average Balance Sheet. </I></B>The following table sets forth certain information relating to
our average balances, average yields and costs, and certain other information for the years ending
December&nbsp;31, 2009, 2008 and 2007. For the periods indicated, the total dollar amount of interest
income from average interest-earning assets and the resultant yields, as well as the interest
expense on average interest-bearing liabilities is expressed both in dollars and rates. No tax
equivalent adjustments were made. The average balance is an average daily balance. Non-accrual
loans have been included in the average balances.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="34" style="border-bottom: 1px solid #000000"><B>For the Years Ending December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Yield/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Yield/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Yield/</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">(dollars in thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-earning assets:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loans receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">298,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.95</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">293,499</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.32</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">271,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.83</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investment and MBS securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154,151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,905</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.48</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,379</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.12</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107,120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.08</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,723</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.27</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,342</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,814</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.24</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">298</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,814</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.23</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">472,613</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.29</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">457,642</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.84</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">408,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.29</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non interest-earning assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash and due from banks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,188</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,771</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,107</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">560,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">544,366</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">494,249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-bearing
liabilities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Money market deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">117,472</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.29</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">83,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,654</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.99</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.14</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">488</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.78</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,332</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.77</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest-bearing checking</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,359</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,459</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.74</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.43</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159,933</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.76</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138,651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.60</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,235</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,697</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.56</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,948</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.94</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.02</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">434,651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">417,055</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.66</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">367,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,028</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.27</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non interest-bearing liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Demand deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,711</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,867</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,661</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">505,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">487,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">435,771</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,478</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total Liabilities and</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Stockholders&#146; Equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">560,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">544,366</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">494,249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,653</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net interest spread</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.02</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,962</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">40,587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">40,448</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net interest margin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.69</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.34</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Ratio of interest-earning assets
to interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">108.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">109.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">110.99</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->52<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Rate and Volume Analysis</I></B><B>. </B>The following table presents the extent to which changes in
interest rates and changes in volume of interest-earning assets and interest-bearing liabilities
have affected our interest income and interest expense during the periods indicated. Information
is provided in each category with respect to: (i)&nbsp;changes attributable to changes in volume
(changes in volume multiplied by current rate); (ii)&nbsp;changes attributable to changes in rate
(changes in rate multiplied by prior volume) and (iii)&nbsp;the net change. The changes attributable to
the combined impact of volume and rate have been allocated proportionately to the changes due to
volume and the changes due to rate.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>Years Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2009 vs. 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2008 vs. 2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Increase/(Decrease)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Increase/(Decrease)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Due to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Increase/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Due to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Increase/</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Volume</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Decrease)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Volume</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Decrease)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22"><B>(In Thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-earning assets:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loans receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,069</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(774</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,388</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(17</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investment and mortgage-backed
securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">455</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(929</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(474</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,889</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,937</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(149</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(132</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(195</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(465</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(660</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(309</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(44</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(353</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(42</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(157</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(199</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,191</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,733</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,023</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,962</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,061</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-bearing liabilities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Money market deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(581</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(138</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">492</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(669</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(177</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(136</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(115</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest-bearing checking</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(117</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(99</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(53</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(27</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(147</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,139</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,286</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,153</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(352</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(935</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(864</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(160</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(227</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(387</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(43</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(37</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,907</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,507</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,086</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(947</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net increase (decrease)&nbsp;in net
interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,774</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,008</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt"><B>Comparison of Operating Results for the Years Ended December&nbsp;31, 2009 and December&nbsp;31, 2008.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General. </I></B>Net income for the year ended December&nbsp;31, 2009 was $4.1&nbsp;million compared to a net
loss of $1.7&nbsp;million for the year ended December&nbsp;31, 2008. For the year ended December&nbsp;31, 2009,
the basic net income per share was $0.53 as compared with the 2008 reported basic loss per share of
$0.22. The increase in net income is primarily the result of an increase in net interest income,
an increase in non-interest income and an increase in the fair value of trading securities. These
increases in income were partially offset by an increase in non-interest expense, an increase in
income tax provision, an increase in net investment losses and an increase in provision for loan
losses during 2009 as compared with 2008. The net loss in 2008 was largely due to noncash
investment charges of $8.7&nbsp;million, an increase in the provision for loan loss reserve and an
increase in non-interest expenses. Partially offsetting the factors attributable to the net loss
were increases in net interest income and non-interest income and a decrease in the provision for
income taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net income from operations for the year ending December&nbsp;31, 2009, which excludes non-cash
impairment charges incurred on eight trust preferred securities of $2.3&nbsp;million and the non-cash
benefit to earnings recognized in the connection with the increase in market value of our trading
securities of $1.7&nbsp;million, net of $130,000 in income taxes, was $4.6&nbsp;million or $0.58 per basic
share. This compares to net income from operations for the year ending December&nbsp;31, 2008 of $3.5
million, or $0.45 per basic share. Net income excluding the non-cash charges and benefits to
earnings increased due primarily to an increase in net interest income, an increase in investment
gains realized and an increase in non-interest income, partially offset by an increase in
non-interest expense, provisions for loan losses and
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->53<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">income tax provisions. We believe these non-GAAP financial measures provide a meaningful
comparison of the underlying operational performance of our business, and facilitate investors&#146;
assessments of business and performance trends in comparison to others in the financial services
industry. In addition, we believe the exclusion of these items enables management to perform a
more effective evaluation and comparison of our results and assess performance in relation to our
ongoing operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Interest and Dividend Income. </I></B>Interest and dividend income decreased by $1.7&nbsp;million, or
6.5%, to $25.0&nbsp;million for the year ended December&nbsp;31, 2009 from $26.7&nbsp;million for the year ended
December&nbsp;31, 2008. Interest and fees on loans decreased by $774,000 for the year ended December
31, 2009 as compared with the same period in 2008. Interest and dividend income on mortgage-backed
and other investment securities decreased $827,000 to $7.2&nbsp;million for the year ended December&nbsp;31,
2009 from $8.0&nbsp;million for the year ended December&nbsp;31, 2008. Interest income earned on federal
funds sold decreased $132,000 during 2009 as compared with the year ended December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decrease in income on loans resulted from a decrease of 37 basis points in the average
yield on loans to 5.95% from 6.32% partially offset by an increase of $4.9&nbsp;million in the average
balance of loans to $298.4&nbsp;million in 2009 from $293.5&nbsp;million in 2008. As of December&nbsp;31, 2009,
residential real estate loans totaled $144.1&nbsp;million, a decrease of $4.0&nbsp;million from December&nbsp;31,
2008. During 2009, a total of $55.9&nbsp;million in fixed-rate residential real estate loans were sold
in the secondary market. In addition, commercial loans decreased $3.4&nbsp;million to $38.8&nbsp;million at
December&nbsp;31, 2009 from $42.2&nbsp;million at December&nbsp;31, 2008. At December&nbsp;31, 2009, total loans
receivable were $298.7&nbsp;million as compared with $305.1&nbsp;million at December&nbsp;31, 2008, a decrease of
2.1%. The decrease in the yield on loans is a result of lower market interest rates during 2009 as
compared with 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decrease in interest income from investment and mortgage-backed securities was the result
of a decrease of 64 basis points in the average yield earned to 4.48% from 5.12% partially offset
by an increase of $10.2&nbsp;million in the average balance of investment and mortgage-backed securities
to $154.2&nbsp;million at December&nbsp;31, 2009 from $144.0&nbsp;million at December&nbsp;31, 2008. The increase in
the average balance on investment and mortgage-backed securities is the result of purchases during
the year reflecting the increase in municipal deposits that require collateral to be pledged
against the balances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income on federal funds sold decreased as a result of a decrease of 203 basis points
in the average yield partially offset by an increase in the average balance of federal funds sold
of $6.4&nbsp;million to $13.7&nbsp;million during the 2009 period as compared with $7.3&nbsp;million at December
31, 2008. The decrease in the yield is due to decreases in interest rates paid on federal funds
during the period. The increase in the average balance of federal funds sold reflects a decision
in 2009 to increase the total liquidity of Oneida Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from equity securities decreased $353,000 due to a decrease in the average yield of 34
basis points. In addition, the average balance decreased $6.5&nbsp;million from $12.8&nbsp;million as of
December&nbsp;31, 2008 to $6.3&nbsp;million as of December&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Interest Expense</I></B><B>. </B>Interest expense decreased $3.5&nbsp;million, or 31.5%, to $7.6&nbsp;million for the
year ended December&nbsp;31, 2009 from $11.1&nbsp;million for the year ended December&nbsp;31, 2008. The decrease
in interest expense was primarily due to a decrease in interest paid on deposit accounts during
2009 of $2.6&nbsp;million, decreasing to $5.9&nbsp;million during 2009 from $8.5&nbsp;million during 2008. In
addition, borrowing expense decreased to $1.7&nbsp;million for 2009 compared with $2.6&nbsp;million for 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decrease in interest expense paid on deposits was primarily due to a decrease in the
average cost of deposits. Core deposits, including money market accounts, savings accounts and
interest-bearing checking accounts, experienced an increase in the average balance of $43.7
million, or 21.8%, to $244.5
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->54<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">million at an average cost of 0.88% during 2009 from $200.8&nbsp;million at an average cost of
1.24% during 2008. During the same period the average balance of time deposits decreased $6.1
million or 3.8%, to $153.9&nbsp;million in 2009 from $159.9&nbsp;million during 2008 and the average rate
paid on time deposits decreased 133 basis points.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decrease in borrowing expense was due to the decrease in the average balance of borrowings
outstanding in the 2009 period to $36.2&nbsp;million as compared with $56.2&nbsp;million during the 2008
period, offset by a 12 basis point increase in the average rate paid on borrowed funds to 4.68% for
the 2009 period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decrease in notes payable expense was due to the decrease in average balance of $87,000 as
well as a decrease in the average yield outstanding. The notes payable represent the balances owed
to Parsons, Cote &#038; Company and Benefit Consulting Group LLC as part of the acquisition of the
companies during the year ended December&nbsp;31, 2006 which were paid in full during 2009 according to
the terms of the notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Provision for Loan Losses. </I></B>Provision for loan losses increased $235,000, or 44.8%, to
$760,000 for the year ended December&nbsp;31, 2009 as compared with a provision of $525,000 for the year
ended December&nbsp;31, 2008. Oneida Savings Bank establishes provisions for loan losses, which are
charged to operations, in order to maintain the allowance for loan losses at a level deemed
appropriate to absorb probable incurred credit losses. Management estimates the allowance balance
required using past loan loss experience, the nature and volume of the portfolio, information about
specific borrower situations and estimated collateral values, economic conditions and other
factors. Allocations of the allowance may be made for specific loans, but the entire allowance is
available for any loan that, in management&#146;s judgment, should be charged off. Management evaluates
the adequacy of the allowance and determines the appropriate level of provision for loan losses by
applying a range of estimated loss percentages to each category of performing and classified loans.
The evaluation considers volume changes in the loan portfolio mix in response to changes in loan
asset origination and retention toward consumer and commercial business loan assets, and provides
within the allowance adequacy formula for the higher relative degree of credit risk associated with
this activity as compared with traditional residential real estate lending. Management continues to
monitor the adequacy of the allowance for loan losses given the risk assessment of the loan
portfolio and current economic conditions making appropriate provisions for loan losses on a
quarterly basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The increase in the provision from 2008 to 2009 was a result of an increase in charge-offs
taken during 2009 and provisions for loan impairments which were partially offset by a decrease in
loan balances. During 2009, we identified an impaired commercial lending relationship with a
principal balance of $2.2&nbsp;million as of December&nbsp;31, 2009. At December&nbsp;31, 2009, a specific
reserve of $570,000 had been established for that loan. As of December&nbsp;31, 2009, the borrower of
the impaired loan has made all payments as agreed. Nonperforming loans remained at low levels
during the years ended December&nbsp;31, 2009 and 2008, totaling $551,000 or 0.09% of total assets at
December&nbsp;31, 2009 compared with $513,000 or 0.09% of total assets at December&nbsp;31, 2008. Net
charge-off activity for the year ended December&nbsp;31, 2009 was $483,000 as compared with $412,000 in
net charge-offs during 2008. The balance of the allowance for loan losses was $2.9&nbsp;million or
0.98% of loans receivable at December&nbsp;31, 2009 compared with $2.6&nbsp;million or 0.87% of loans
receivable at December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Non-interest Income. </I></B>Non-interest income consists of non-interest income, changes in fair
value of trading securities, net gains on sales of securities as well as net impairment losses
recognized in earnings. Non-interest income increased by $11.4&nbsp;million, or 117.5%, to $21.1
million for the year ended December&nbsp;31, 2009 from $9.7&nbsp;million for the year ended December&nbsp;31,
2008. The increase in non-interest income was primarily due to a positive net fair value
adjustment of $1.7&nbsp;million for the increase
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">in market value of our trading securities at December&nbsp;31, 2009 from the prior year end. This
compares with a net decrease in the fair value for the 2008 period of $7.7&nbsp;million that was
recognized in connection with the adoption of fair value accounting for certain preferred and
common equity securities including Freddie Mac preferred securities. In addition, we also recorded
other-than-temporary impairment charges in both 2009 and 2008 periods.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue derived from Oneida Savings Bank&#146;s subsidiaries increased $2.2&nbsp;million or 16.3% to
$15.8&nbsp;million during 2009 as compared with $13.6&nbsp;million during 2008. Insurance subsidiary revenue
of Bailey &#038; Haskell Associates was $9.7&nbsp;million for the year ended December&nbsp;31, 2009 as compared
with $8.5&nbsp;million during 2008. The increase in insurance subsidiary revenue is primarily due to
increased sales volume and a high level of account revenue retention from the prior year.
Consulting activities of Benefit Consulting Group generated revenue of $5.7&nbsp;million for the year
ended December&nbsp;31, 2009 as compared with $5.0&nbsp;million during 2008. The increase in consulting
revenue is primarily the result of an increase in employee benefit consulting services and
increased pension administration revenue resulting from required pension plan amendments prepared
for clients. Risk management activities of Workplace Health Solutions generated $491,000 of
revenue for the year ended December&nbsp;31, 2009 as compared with $120,000 in revenue during 2008. The
increase in risk management revenue was the result of continued client growth for this new
subsidiary established at the beginning of 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposit account service fees decreased to $2.6&nbsp;million during the year ended December&nbsp;31, 2009
from $2.8&nbsp;million during 2008. The combination of fee reductions and the higher account balances
currently maintained resulted in the decrease in deposit account service fee revenue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We experienced an increase in income from the sale and servicing of fixed-rate residential
real estate loans. Such income increased to $985,000 during 2009 compared with $465,000 during
2008. The increase is primarily the result of an increase in the volume of loan activity in 2009 as
compared with 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have identified the preferred and common equity securities we hold in the investment
portfolio as trading securities and as such the change in fair value of these securities is
reflected as a non-cash adjustment through the income statement. For the year ended December&nbsp;31,
2009 the market value of our trading securities increased $1.7&nbsp;million as compared with a decrease
of $7.7&nbsp;million in the 2008 period. The 2008 period was negatively impacted by the significant
decline in value of Freddie Mac perpetual preferred stock following the announcement by the United
States Treasury and the FHFA that Freddie Mac was placed under conservatorship during September
2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment losses for the year ended December&nbsp;31, 2009 were $1.5&nbsp;million as compared with
net investment losses of $959,000 during 2008. The net investment loss was the result of a
non-cash impairment charge of $2.3&nbsp;million recorded for the year ended December&nbsp;31, 2009 for eight
trust preferred securities which were determined to be other-than-temporarily impaired. The trust
preferred securities are diversified pools of collateralized debt obligations primarily issued by
domestic financial institutions and their holding companies. Partially offsetting the non-cash
impairment charge were investment gains resulting from our decision to realize a portion of the
appreciation in our mortgage-backed and investment securities portfolio resulting in net gains
realized of $788,000 during 2009. For the year ended December&nbsp;31, 2008, we recorded a non-cash
other-than-temporary impairment charge on a Lehman Brothers medium term note of $1.0&nbsp;million
following their bankruptcy announcement in September&nbsp;2008, partially offset by realized net
investment gains of $63,000 during 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Non-interest Expense. </I></B>Non-interest expense increased by $3.7&nbsp;million or 12.9% to $32.4
million for the year ended December&nbsp;31, 2009 from $28.7&nbsp;million for the year ended December&nbsp;31,
2008. The increase was primarily due to an increase in operating expenses associated with our
insurance agency and
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">consulting subsidiaries associated with commissions paid concurrent with revenue increases.
In addition, an increase in premiums being assessed by the Federal Deposit Insurance Corporation
for the current calendar year has resulted in additional non-interest expense of $970,000 for the
year ended December&nbsp;31, 2009 as compared with the same period in 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries, wages and other compensation paid to the employees of Oneida Financial Corp. during
2009 was $20.4&nbsp;million, an increase of $2.3&nbsp;million, or 12.7%, as compared with compensation
expense of $18.1&nbsp;million during 2008. The increase in compensation expense was primarily the
result of the increase in sales of insurance and other non-banking products through our
subsidiaries resulting in an increase in commissions paid and employee benefit expense. In 2006,
Oneida Financial Corp. approved a Management Recognition and Retention Plan for directors, officers
and key employees. The expense associated with this benefit was $180,000 for 2009 as compared with
$166,000 in 2008. In addition, we recognized compensation expense in connection with the exercise
of stock options during 2009 of $78,000 as compared with no compensation expense recognized in 2008
related to the exercise of stock options.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Building occupancy and equipment expense increased $9,000, or 0.2%, to $4.7&nbsp;million for the
year ended December&nbsp;31, 2009 as compared to $4.7&nbsp;million during 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-interest expense was negatively impacted during 2009 as a result of Oneida Savings Bank
being assessed significantly higher deposit insurance premiums, including a special assessment of 5
basis points on its assets. Deposit insurance premiums and assessments during 2009 totaled $1.0
million as compared with FDIC premiums of $58,000 during 2008. At the end of 2009, the FDIC
required all banks to prepay their base deposit insurance premiums for the next three years. This
new requirement resulted in Oneida Financial Corp. transferring $2.4&nbsp;million to the FDIC
representing a prepaid assessment for 2010, 2011 and 2012. We anticipate additional FDIC insurance
assessments beyond the current assessment level.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Provision for Income Taxes</I></B><I>. </I>Provision for income taxes was $1.2&nbsp;million for the year ended
December&nbsp;31, 2009 an increase of $3.4&nbsp;million from the 2008 income tax benefit recorded of $2.2
million. The increase in income tax provision reflects the increase in net income for the year
ended December&nbsp;31, 2009. The effective tax rate was 22.7% during 2009. The increase in income tax
provision is due to a return to profitability in 2009 and the special tax treatment received in
2008 for the investment losses recognized by holders of Freddie Mac preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Comparison of Operating Results for the Years Ended December&nbsp;31, 2008 and December&nbsp;31, 2007.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General. </I></B>For the year ended December&nbsp;31, 2008 we incurred a net loss of $1.7&nbsp;million compared
to net income of $3.5&nbsp;million for the year ended December&nbsp;31, 2007. For the year ended December
31, 2008, the basic net loss per share was $0.22 as compared with the 2007 reported basic earnings
per share of $0.45. The net loss was largely due to noncash investment charges of $8.7&nbsp;million, an
increase in the provision for loan loss reserve and an increase in non-interest expenses.
Partially offsetting the factors attributable to the net loss was an increase in net interest
income and non-interest income and a decrease in the provision for income taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net income from operations for the year ending December&nbsp;31, 2008, which excludes a
non-cash impairment charge of a medium term note and the non-cash charge to earnings recognized in
connection with the adoption of fair value accounting for certain common and preferred equity
securities of $8.7&nbsp;million, net of $3.5&nbsp;million in income taxes, was $3.5&nbsp;million or $0.45 per
basic share. This compares to net income from operations for the year ending December&nbsp;31, 2007 of
$3.5&nbsp;million, or $0.45 per basic share. Net income excluding the non-cash charge to earnings
remained stable as non-interest
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">income remained stable, and non-interest expenses increased offsetting an increase in net
interest income. We believe these non-GAAP financial measures provide a meaningful comparison of
the underlying operational performance of our business, and facilitate investors&#146; assessments of
business and performance trends in comparison to others in the financial services industry. In
addition, we believe the exclusion of these items enables management to perform a more effective
evaluation and comparison of our results and assess performance in relation to Oneida Financial
Corp.&#146;s ongoing operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Interest and Dividend Income. </I></B>Interest and dividend income increased by $1.0&nbsp;million or 3.9%,
to $26.7&nbsp;million for the year ended December&nbsp;31, 2008 from $25.7&nbsp;million for the year ended
December&nbsp;31, 2007. Interest and fees on loans decreased by $17,000 for the year ended December&nbsp;31,
2008 as compared with the same period in 2007. Interest and dividend income on mortgage-backed and
other investment securities increased $1.7&nbsp;million to $8.0&nbsp;million for the year ended December&nbsp;31,
2008 from $6.3&nbsp;million for the year ended December&nbsp;31, 2007. Interest income earned on federal
funds sold decreased $660,000 during 2008 as compared with the year ended December&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decrease in income on loans resulted from a decrease of 51 basis points in the average
yield on loans to 6.32% from 6.83% partially offset by an increase of $21.7&nbsp;million in the average
balance of loans to $293.5&nbsp;million in 2008 from $271.8&nbsp;million in 2007. As of December&nbsp;31, 2008,
residential real estate loans totaled $148.8&nbsp;million, an increase of $16.9&nbsp;million from December
31, 2007. During 2008, a total of $18.6&nbsp;million in fixed-rate residential real estate loans were
sold in the secondary market. In addition, commercial loans increased $2.3&nbsp;million to $42.2
million at December&nbsp;31, 2008 from $39.9&nbsp;million at December&nbsp;31, 2007. At December&nbsp;31, 2008, total
loans receivable were $305.1&nbsp;million as compared with $286.9&nbsp;million at December&nbsp;31, 2007, an
increase of 6.3%. The decrease in the yield on loans is a result of lower market interest rates
during 2008 as compared with 2007, and the changes in the composition of the loan portfolio to
residential real estate loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The increase in interest income from investment and mortgage-backed securities was the result
of an increase of $36.9&nbsp;million in the average balance of investment and mortgage-backed securities
to $144.0&nbsp;million at December&nbsp;31, 2008 from $107.1&nbsp;million at December&nbsp;31, 2007 as well as an
increase of 4 basis points in the average yield on investment and mortgage-backed securities. The
increase in the average balance of investment and mortgage-backed securities is the result of
purchases during the year reflecting the increase in municipal deposits that require collateral to
be pledged against the balances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income on federal funds sold decreased as a result of a decrease in the average
balance of federal funds sold of $8.5&nbsp;million to $7.3&nbsp;million during 2008 as compared with $15.8
million during 2007 as well as a 294 basis point decrease in the average yield. The decrease in the
yield is due to the decreases in interest rates paid on federal funds during the period. The
decrease in the average balance of federal funds sold reflects a decision in 2008 to reallocate
assets to investment securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from equity securities decreased $199,000 due primarily to a decrease in the average
yield of 115 basis points. In addition, the average balance decreased $834,000 from $13.6&nbsp;million
during 2007 to $12.8&nbsp;million during 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Interest Expense</I></B><B>. </B>Interest expense decreased by $947,000, or 7.9%, to $11.1&nbsp;million for the
year ended December&nbsp;31, 2008 from $12.0&nbsp;million for the year ended December&nbsp;31, 2007. The decrease
in interest expense was primarily due to a decrease in interest paid on deposit accounts during
2008 of $523,000, decreasing to $8.5&nbsp;million during 2008 from $9.0&nbsp;million during 2007. In
addition, borrowing expense decreased to $2.6&nbsp;million for 2008 compared with $3.0&nbsp;million for 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decrease in interest expense paid on deposits was primarily due to a decrease in the
average yield of deposits. Core deposits, including money market accounts, savings accounts and
interest-bearing
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">checking accounts, experienced an increase in the average balance of $32.1&nbsp;million, or 19.1%,
to $200.8&nbsp;million at an average cost of 1.24% during 2008 from $168.7&nbsp;million at an average cost of
1.58% during 2007. During the same period the average balance of time deposits increased $21.2
million or 15.3%, to $159.9&nbsp;million in 2008 from $138.7&nbsp;million during 2007 and the average rate
paid on time deposits increased 84 basis points.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decrease in borrowing expense was due to the decrease in the average balance of borrowings
outstanding in the 2008 period to $56.2&nbsp;million as compared with $59.7&nbsp;million during the 2007
period. The average rate paid on borrowed funds decreased 38 basis points to 4.56% for the 2008
period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decrease in notes payable expense was due to the decrease in average balance of $748,000
as well as a decrease in the average yield outstanding. As noted above, the notes payable
represent the balances owed to Parsons, Cote &#038; Company and Benefit Consulting Group LLC as part of
the acquisition of the companies during the year ended December&nbsp;31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Provision for Loan Losses. </I></B>For the year ended December, 31 2008, there was a provision of
$525,000 made to the allowance for loan loss as compared with no provision made for the year ended
December&nbsp;31, 2007. The increase in the provision from 2007 to 2008 was largely due to the increase
in nonperforming loans, an increase in charge-offs that had taken place during the year as well as
an increase in loan growth. Nonperforming loans remained at low levels during the years ended
December&nbsp;31, 2008 and 2007, totaling $513,000 or 0.09% of total assets at December&nbsp;31, 2008
compared with $375,000 or 0.07% of total assets at December&nbsp;31, 2007. Net charge-off activity for
the year ended December&nbsp;31, 2008 was $412,000 as compared with $95,000 in net charge-offs during
2007. The balance of the allowance for loan losses was $2.6&nbsp;million or 0.87% of loans receivable
at December&nbsp;31, 2008 compared with $2.5&nbsp;million or 0.88% of loans receivable at December&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Non-interest Income. </I></B>Non-interest income decreased by $8.5&nbsp;million, or 46.7%, to $9.7&nbsp;million
for the year ended December&nbsp;31, 2008 from $18.2&nbsp;million for the year ended December&nbsp;31, 2007. The
decrease in non-interest income was primarily due to a change in fair value of $7.7&nbsp;million that
was recognized in connection with the adoption of fair value accounting for certain preferred and
common equity securities including Freddie Mac preferred securities. In addition to the noncash
charge due to fair value accounting, we also recorded an other-than-temporary impairment charge on
a Lehman Brothers medium term note.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue derived from Oneida Savings Bank&#146;s subsidiaries increased $98,000 or 0.7% to $13.6
million during 2008 as compared with $13.5&nbsp;million during 2007. Insurance subsidiary revenue of
Bailey &#038; Haskell Associates was $8.5&nbsp;million for the year ended December&nbsp;31, 2008 as compared with
$9.9&nbsp;million for 2007. Consulting activities of Benefit Consulting Group generated revenue of $5.0
million for the year ended December&nbsp;31, 2008 as compared with $3.6&nbsp;million in revenue for 2007.
The decrease in insurance subsidiary revenue and the increase in consulting subsidiary revenue is
primarily due to the transfer of the financial services and life insurance sales divisions from
Bailey &#038; Haskell Associates to Benefit Consulting Group during 2008 to better align the services of
the various subsidiaries. Risk management activities generated $120,000 of revenue for the year
ended December&nbsp;31, 2008 in this new subsidiary established at the beginning of 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposit account service fees also contributed to the improvement in non-interest income,
increasing to $2.8&nbsp;million during December&nbsp;31, 2008 from $2.5&nbsp;million during December&nbsp;31, 2007.
The combination of fees charged on new accounts generated and acquired resulted in the increase in
deposit account service fee revenue.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We experienced an increase in income from the sale and servicing of fixed-rate residential
real estate loans. Such income increased to $465,000 during 2008 compared with $433,000 during
2007. The increase is primarily the result of an increase in the volume of loan activity in 2008 as
compared with 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment securities losses realized were $8.6&nbsp;million for the year ended December&nbsp;31,
2008 as compared to net investment securities gains of $353,000 for the year ended December&nbsp;31,
2007. The net investment losses recognized in 2008 were the result of fair value non-cash
adjustments for certain investments securities which resulted in cumulative charges against
earnings of $7.7&nbsp;million and a non-cash impairment charge recorded for our investment in a medium
term note in Lehman Brothers Holdings of $1.0&nbsp;million during 2008 resulting in a complete
write-down of this investment as we cannot reasonably conclude collection is probable. These
non-cash investment charges were partially offset by realized investment gains of $63,000 during
the year ended December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Non-interest Expense. </I></B>Non-interest expense increased by $1.7&nbsp;million, or 6.3%, to $28.7
million for the year ended December&nbsp;31, 2008 from $27.0&nbsp;million for the year ended December&nbsp;31,
2007. The increase was primarily due to salary and employee benefits expense which increased $1.1
million to $18.1&nbsp;million for the year ended December&nbsp;31, 2008 from $17.0&nbsp;million for the year ended
December&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The increase in compensation expense was primarily the result of the addition of National Bank
of Vernon employees and the office in Griffiss Park. In 2006, Oneida Financial Corp. approved a
Management Recognition and Retention Plan for directors, officers and key employees. The expense
associated with this benefit was $166,000 for 2008 as compared with $175,000 in the 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Building occupancy and equipment expense increased $312,000 to $4.7&nbsp;million for the year ended
December&nbsp;31, 2008 as compared to $4.4&nbsp;million during 2007. The increase was due to the addition of
four banking offices during 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Provision for Income Taxes</I></B><I>. </I>Income tax benefit was $2.2&nbsp;million for the year ended December
31, 2008 a decrease of $3.6&nbsp;million from the 2007 income tax provision of $1.4&nbsp;million. The
decrease in income tax provision reflects the decrease in net income for the year ended December
31, 2008. The 2008 tax benefit is compared with an effective tax rate of 28.1% during 2007. The
decrease in the income tax provision in 2008 is due to an increase in tax exempt and tax preferred
investment income of Oneida Financial Corp. which qualifies for dividends received deductions and
the special tax treatment received in 2008 for the investment losses recognized by holders of
Freddie Mac preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Application of Critical Accounting Policies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial Corp.&#146;s consolidated financial statements are prepared in accordance with
accounting principles generally accepted in the United States and follow general practices within
the industries in which it operates. Application of these principles requires management to make
estimates, assumptions, and judgments that affect the amounts reported in the financial statements
and accompanying notes. These estimates, assumptions, and judgments are based on information
available as of the date of the financial statements; accordingly, as this information changes, the
financial statements could reflect different estimates, assumptions, and judgments. Certain
policies inherently have a greater reliance on the use of estimates, assumptions, and judgments and
as such have a greater possibility of producing results that could be materially different than
originally reported. Estimates, assumptions, and judgments are necessary when assets and
liabilities are required to be recorded at fair value, when a decline in the value of an asset not
carried on the financial statements at fair value warrants an impairment write-down or valuation
reserve to be established, or when an asset or liability needs to be recorded contingent upon a
future event. Carrying assets and liabilities at fair value inherently results in more
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">financial statement volatility. The fair values and the information used to record valuation
adjustments for certain assets and liabilities are based either on quoted market prices or are
provided by other third-party sources, when available. When third-party information is not
available, valuation adjustments are estimated in good faith by management primarily through the
use of internal cash flow modeling techniques.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The most significant accounting policies followed by Oneida Financial Corp. are presented in
Note 1 to the consolidated financial statements. These policies, along with the disclosures
presented in the other financial statement notes and in this financial review, provide information
on how significant assets and liabilities are recorded in the financial statements and how those
values are determined. Based on the valuation techniques used and the sensitivity of financial
statement amounts to the methods, assumptions, and estimates underlying those amounts, management
has identified the determination of the allowance for loan losses, the fair value of trading
securities and investment securities and the evaluation of other-than-temporary impairment on
securities whose fair value is less than amortized cost, actuarial assumptions associated with
Oneida Financial Corp.&#146;s pension plan and the fair value methodologies used to review the carrying
value of goodwill to be the accounting areas that require the most subjective or complex judgments,
and as such could be most subject to revision as new information becomes available.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The allowance for loan losses represents management&#146;s estimate of probable incurred credit
losses in the loan portfolio. Determining the amount of the allowance for loan losses is considered
a critical accounting estimate because it requires significant judgment and the use of estimates
related to the collateral value and timing of expected future cash flows on impaired loans,
estimated losses on pools of homogeneous loans based on historical loss experience, and
consideration of current economic trends and conditions, all of which may be susceptible to
significant change. The loan portfolio also represents the largest asset type on the consolidated
balance sheet. Note 1 to the consolidated financial statements describes the methodology used to
determine the allowance for loan losses and a discussion of the factors driving changes in the
amount of the allowance for loan losses is included in the Allowance for Loan Losses section of the
annual report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2009, $47.7&nbsp;million of securities were considered held to maturity and are
carried at amortized cost on our statement of condition. Securities available for sale, which
represented $114.5&nbsp;million at December&nbsp;31, 2009, are recorded at current market value on our
statement of condition. Unrealized gains or losses, net of the deferred tax effect, are reported
in other comprehensive income as a separate component of stockholders&#146; equity. Recorded values are
based on prices obtained from nationally recognized resources or securities dealer&#146;s valuations.
We conduct a quarterly review and evaluation of the securities portfolios to determine if any
declines in fair value are other than temporary. Any valuation decline that is determined to be
other than temporary would require us to write down the security to fair value through a charge to
current period operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities in which the fair value option has been elected, which include both common and
preferred equity securities, are classified as trading assets and are recorded at fair value on our
statement of condition. Changes in fair value are included in earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The estimation of fair value is significant to several of our assets, including trading
securities and securities available for sale. Fair values are determined based on third party
sources, when available. Furthermore, accounting principles generally accepted in the United
States require disclosure of the fair value of financial instruments as a part of the notes to the
consolidated financial statements. Fair values may be influenced by a number of factors, including
market interest rates, prepayment speeds, discount rates and the shape of the yield curve.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair values for securities available for sale are typically based on quoted market prices. If
a quoted market price is not available, fair values are estimated using quoted market prices for
similar securities or level 3 values. Note 4 to the consolidated financial statements provides
additional information on how we determine level 3 values.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The valuation of our obligations associated with pension plans utilizes various actuarial
assumptions. These assumptions include discount rate and expected return on plan assets. Specific
discussion of the assumptions used by management is discussed in Note 11.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although goodwill is not subject to amortization, we must test the carrying value for
impairment at least annually or more frequently if events or circumstances indicate that the asset
might be impaired. Impairment testing requires that the fair value of each of the reporting units
be compared to the carrying amount of its net assets, including goodwill. Determining the fair
value of reporting units requires us to use a high degree of subjective judgment. We utilize
discounted cash flow valuation models that incorporate such variables as revenue growth rates,
expense trends, interest rates, and terminal values. Management also reviews current acquisition
multiples with consideration of market conditions surrounding those acquisitions. Management will
compare multiples of revenue, EBITDA as well as a book value as a determination of estimated fair
value. Future changes in the economic environment or operations of our reporting units could cause
changes to these variables, which could result in impairment being identified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Management of Market Risk and Other Risks</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our most significant form of market risk is interest rate risk, as the majority of our assets
and liabilities are sensitive to changes in interest rates. Ongoing monitoring and management of
this risk is an important component of our asset and liability management process. We do not own
any trading assets other than common and preferred equity securities classified as trading in
accordance with fair value accounting. We do not engage in hedging transactions, such as interest
rate swaps and caps, other than forward sale commitments on certain mortgage loan commitments. Our
interest rate risk management program focuses primarily on evaluating and managing the composition
of our assets and liabilities in the context of various interest rate scenarios. Factors beyond
management&#146;s control, such as market interest rates and competition, also have an impact on
interest income and interest expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Interest Rate Risk. </I></B>In recent years, we have used the following strategies to manage interest
rate risk: (i)&nbsp;emphasizing the origination and retention of adjustable-rate residential mortgage
loans, adjustable-rate commercial mortgage loans, other business purpose loans and consumer loans
consisting primarily of auto loans; (ii)&nbsp;selling substantially all newly originated longer-term
fixed rate one-to-four family residential mortgage loans into the secondary market without recourse
and on a servicing retained basis; (iii)&nbsp;seeking to increase and diversify our sources of revenue,
particularly non-interest income and (iv)&nbsp;managing our investment activities in a prudent manner in
the context of overall balance sheet asset/liability management. Investing in shorter-term
securities will generally bear lower yields as compared to longer-term investments, but improves
our position for increases in market interest rates and better matches the maturities of our
certificate of deposit accounts. Certificates of deposit that mature in one year or less, at
December&nbsp;31, 2009 totaled $123.4&nbsp;million, or 28.4% of total interest-bearing liabilities. Borrowed
funds that mature in one year or less at December&nbsp;31, 2009 totaled $19.0&nbsp;million, or 4.4% of total
interest-bearing liabilities. Management believes that this balanced approach to investing will
reduce the exposure to interest rate fluctuations and will enhance long-term profitability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Net Income and Portfolio Value Analysis</I></B><I>. </I>Our interest rate sensitivity is monitored by
management through the use of a net income model and a net portfolio value (&#147;NPV&#148;) model which
generates estimates of the change in our net income and NPV over a range of interest rate
scenarios. NPV
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->62<!-- /Folio -->
</DIV>




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">is the present value of expected cash flows from assets and liabilities. The model assumes
estimated loan prepayment rates and reinvestment rates. The following sets forth our net interest
income and NPV as of December&nbsp;31, 2009.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Change in</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Interest Rates</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><I><B>Net Interest Income</B></I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Net Portfolio Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>In Basis Points</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dollars</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dollar</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dollars</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dollar</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>(Rate Shock)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Change</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Change</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Change</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Change</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22"><B>(Dollars in Thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&#043;300</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(695</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3.99</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39,089</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(19,109</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(32.83</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&#043;200</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,054</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(373</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.14</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">48,239</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(9,960</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17.11</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&#043;100</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(146</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.84</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">54,597</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,602</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6.19</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">Static</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following sets forth our net interest income and NPV as of December&nbsp;31, 2008.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Change in</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Interest Rates</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B><I>Net Interest Income</I></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Net Portfolio Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>In Basis Points</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dollars</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dollar</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dollars</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dollar</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>(Rate Shock)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Change</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Change</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Change</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Change</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22"><B>(Dollars in Thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&#043;300</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(996</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6.36</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">36,281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(14,709</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(28.85</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&#043;200</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(520</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3.32</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">43,728</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(7,262</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14.24</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&#043;100</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(203</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.30</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">48,848</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,142</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.20</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">Static</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,653</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,990</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2009, a 200 basis point increase in market interest rates was
estimated to have a negative impact of 2.14% on net interest income during 2010 while a 300 basis
point increase in rates would have a negative impact of 3.99% on net interest income during 2010.
This analysis is based on numerous assumptions including the nature and timing of interest rate
levels, prepayment on loans and securities, deposit decay rates, pricing decisions on loans and
deposits and other assumptions, and should not be relied upon as being indicative of expected
operating results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are certain shortcomings inherent in the methodology used in the above interest rate
risk measurements. Modeling changes in net interest income and NPV requires the making of certain
assumptions, which may or may not reflect the manner in which actual yields and costs respond to
changes in market interest rates. In this regard, the net interest income in the table assumes that
the composition of our interest sensitive assets and liabilities existing at the beginning of a
period remains constant over the period being measured and also assumes that a particular change in
interest rates is reflected uniformly across the yield curve regardless of the duration to maturity
or repricing of specific assets and liabilities. Accordingly, although the table provides an
indication of our interest rate risk exposure at a particular point in time, such measurements are
not intended to and do not provide a precise forecast of the effect of changes in market interest
rates on our net interest income and will differ from actual results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Credit Risk. </I></B>Our loan and investment portfolios are subject to varying degrees of credit
risk. Credit risk is mitigated through portfolio diversification, limiting exposure to any single
industry or customer, collateral protection, standard lending and investment policies and loan
underwriting criteria.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note 1 to the consolidated financial statements describes the accounting policies related to
nonperforming loans and charge-offs and describes the methodologies used to develop the allowance
for loan losses. The policies governing nonperforming loans and charge-offs are consistent with
regulatory standards. We maintain an allowance for loan losses sufficient to absorb estimated
probable incurred
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->63<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">losses in the loan portfolio. The evaluation of each element and the overall allowance are
based on the size and current risk characteristics of the loan portfolio and include an assessment
of individual problem loans, actual loss experience, current economic events in specific industries
and geographical areas, including unemployment levels, and other pertinent factors, including
regulatory guidance and general economic conditions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While management considers the allowance for loan losses to be adequate based on information
currently available, future adjustments to the allowance may be necessary due to changes in
economic conditions, delinquencies or loss rates, and management&#146;s intent with regard to asset
disposition options. In addition, the allowance for loan losses is periodically reviewed by the
bank regulatory agencies as an integral part of their examination process. Based on their review,
the agencies may require us to adjust the allowance for loan losses based on their judgments about
information available to them at the time of their review.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The securities investment policy is established by the Board of Directors. This policy
dictates that investment decisions will be made based on the safety of the investment, liquidity
requirements, potential returns, cash flow targets and desired risk parameters. In pursuing these
objectives, management considers the ability of an investment to provide earnings consistent with
factors of quality, maturity, marketability and risk diversification. We will only purchase
securities rated as investment grade by a nationally recognized investment rating agency. The
ability of an issuer of a corporate debt instrument to repay the obligation is influenced by a
number of factors including general economic conditions, cash flow, events in specific industries,
regional crisis, bankruptcy and many other factors. Corporate bonds are not typically guaranteed
by the issuer beyond their ability to repay and therefore may result in a loss to us if conditions
change from those in place at the time the investment was acquired. We conduct a quarterly
evaluation of the securities portfolio to determine if any declines in fair value are
other-than-temporary. Part of this analysis includes forecasting of rate projections and
investment spreads over bond indices as compared to historical performance. Fluctuations in market
conditions could impact the evaluation and outcome of projections.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Concentration Risk. </I></B>Our lending activities are primarily conducted in Madison and Oneida
Counties, located in Central New York State, and the adjacent counties. Our mortgage loan
portfolio, consisting primarily of loans on residential real property located in its market area,
is subject to risks associated with the local economy. If the local economy, national economy or
real estate market weakens, our financial condition and results of operations could be adversely
affected. A weakening in the local real estate market or a decline in the local economy could
increase the number of delinquent or nonperforming loans and reduce the value of the collateral
securing such loans, which would reduce our net income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Legal Proceedings. </I></B>We and our subsidiaries are subject to various legal actions arising in
the normal course of business. For additional information, see &#147;Business of Oneida Financial Corp.
and Oneida Savings Bank &#151; Legal Proceedings&#148; in this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Liquidity Risk. </I></B>The objective of liquidity management is to ensure the cash flow requirements
of depositors and borrowers, as well as the operating cash needs of our business, are met, taking
into account all on- and off-balance sheet funding demands. Liquidity management also includes
ensuring cash flow needs are met at a reasonable cost. Liquidity risk arises from the possibility
that we may not be able to satisfy current or future financial commitments, or may become unduly
reliant on alternative funding sources. We maintain a liquidity risk management policy to address
and manage this risk. The policy identifies the primary sources of liquidity, establishes
procedures for monitoring and measuring liquidity, and establishes minimum liquidity requirements
which comply with regulatory guidance. The policy also includes a contingency funding plan to
address liquidity needs in the event of an institution-specific or a
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->64<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">systemic financial market crisis. The liquidity position is continually monitored and reported
on a monthly basis to the Asset/Liability Management Committee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary sources of funds are deposits; FHLB borrowings; proceeds from the principal and
interest payments on loans and mortgage-related, debt and equity securities; and to a lesser
extent, proceeds from the sale of fixed rate residential real estate loans and additional borrowing
ability available as needed. While maturities and scheduled amortization of loans and securities
are predictable sources of funds, deposit outflows, mortgage prepayments, mortgage loan sales and
borrowings are greatly influenced by general interest rates, economic conditions and competition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidity management is both a short-term and long-term responsibility of management. We
adjust our investments in liquid assets based upon management&#146;s assessment of (i)&nbsp;expected loan
demand, (ii)&nbsp;projected purchases of investment and mortgage-backed securities, (iii)&nbsp;acquisition
activities, (iv)&nbsp;expected deposit flows, (v)&nbsp;yields available on interest-bearing deposits, and
(vi)&nbsp;liquidity of its asset/liability management program. Excess liquidity is generally invested
in interest-earning overnight deposits, federal funds sold and other short-term U.S. agency
obligations. At December&nbsp;31, 2009, cash and interest-earning deposits totaled $39.5&nbsp;million, or
6.7% of total assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Oneida Savings Bank requires funds beyond its ability to generate them internally, it has
the ability to borrow funds from the FHLB. Oneida Savings Bank may borrow from the FHLB under a
blanket agreement, which assigns all investments in FHLB stock as well as qualifying first mortgage
loans equal to 150% of the outstanding balance as collateral to secure the amounts borrowed. At
December&nbsp;31, 2009, Oneida Savings Bank has available a $109.9&nbsp;million line of credit with the
Federal Home Loan Bank of which none was outstanding at December&nbsp;31, 2009. In addition, we can
utilize investment and mortgage-backed securities as collateral for repurchase agreements. We also
maintain lines of credit with various commercial banks as an additional source of short-term
borrowing. At December&nbsp;31, 2009, we had approximately $10.0&nbsp;million available under these
borrowing arrangements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We must also maintain adequate levels of liquidity to satisfy loan commitments. At December
31, 2009, we had outstanding commitments to originate loans of $63.0&nbsp;million. We anticipate having
sufficient funds to meet current loan commitments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit, which are scheduled to mature in one year or less from December&nbsp;31,
2009, totaled $123.4&nbsp;million. Based upon our experience and current pricing strategy, management
believes that a significant portion of such deposits will remain with the bank. Deposits less than
$100,000 totaled $279.2&nbsp;million at December&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management believes that our liquidity policies and sources are effective to satisfy current
and anticipated financial commitments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Capital Requirements. </I></B>The FDIC has adopted risk-based capital guidelines to which Oneida
Savings Bank is subject. The guidelines establish a systematic analytical framework that makes
regulatory capital requirements more sensitive to differences in risk profiles among banking
organizations. Oneida Savings Bank is required to maintain certain levels of regulatory capital in
relation to regulatory risk-weighted assets. The ratio of such regulatory capital to regulatory
risk-weighted assets is referred to as Oneida Savings Bank&#146;s &#147;risk-based capital ratio.&#148;
Risk-based capital ratios are determined by allocating assets and specified off-balance sheet items
to four risk-weighted categories ranging from 0% to 100%, with higher levels of capital being
required for the categories perceived as representing greater risk.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->65<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These guidelines divide a savings bank&#146;s capital into two tiers. The first tier (&#147;Tier I&#148;)
includes common equity, retained earnings, certain non-cumulative perpetual preferred stock
(excluding auction rate issues) and minority interests in equity accounts of consolidated
subsidiaries, less goodwill and other intangible assets (except mortgage servicing rights and
purchased credit card relationships subject to certain limitations). Supplementary (&#147;Tier II&#148;)
capital includes, among other items, cumulative perpetual and long-term limited-life preferred
stock, mandatory convertible securities, certain hybrid capital instruments, term subordinated debt
and the allowance for loan and lease losses, subject to certain limitations, less required
deductions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on the foregoing, Oneida Savings Bank is currently classified as a &#147;well capitalized&#148;
savings institution. The following table sets forth information regarding Oneida Savings Bank&#146;s
capital levels as of December&nbsp;31, 2009.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">To Be Well</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">capitalized Under</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Minimum</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">prompt Corrective</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Required</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Action Provisions</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Actual</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier I Capital to Average Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.19</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier I Capital to Risk-Weighted Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Capital to Risk-Weighted Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.73</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Contractual Obligations, Commitments, and Off-Balance Sheet Arrangements. </I></B>We have
various financial obligations, including contractual obligations and commitments that may require
future cash payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Contractual Obligations: </B>The following table presents as of December&nbsp;31, 2009, significant
fixed and determinable contractual obligations to third parties by payment date. Further discussion
of the nature of each obligation is included in the referenced note to the consolidated financial
statements.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="4" style="border-bottom: 1px solid #000000"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Payments Due In</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Note</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>One Year or</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>One to Three</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Three to Five</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Over Five</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Contractual Obligation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Reference</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Less</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certificates of Deposit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">123,358</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">156,903</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Commitments and Off-Balance Sheet Arrangements: </B>In the normal course of business, to meet
the financing needs of its customers and to reduce its exposure to fluctuations in interest rates,
we are a party to financial instruments with off-balance sheet risk, held for purposes other than
trading. The financial instruments involve, to varying degrees, elements of credit and interest
rate risk in excess of the amount recognized in the consolidated balance sheets. Our exposure to
credit loss in the event of nonperformance by the other party to the financial instrument, for loan
commitments and standby letters of credit, is represented by the contractual amount of those
instruments, assuming that the amounts are fully advanced and that collateral or other security is
of no value. We use the same credit policies in making such commitments as for on-balance sheet
loans. The amount of collateral obtained, if deemed necessary by us upon extension of credit, is
based on management&#146;s credit evaluation of the borrower . Commitments to originate loans, unused
lines of credit, and unadvanced portions of construction loans are agreements to lend to a customer
provided there is no violation of any condition established in the contract. Commitments generally
have fixed expiration dates or other termination clauses and may require payment of a fee. Many of
the commitments are expected to expire without being drawn upon. Therefore, the amounts presented
below do not necessarily represent future cash requirements. Standby letters of credit are
conditional commitments that we issue to guarantee the performance by a customer to a third
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->66<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">party. These guarantees are issued primarily to support public and private borrowing
arrangements, bond financing, and similar transactions. The credit risk involved in issuing letters
of credit is essentially the same as that involved in extending loan commitments to customers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table details the amounts and expected maturities of significant commitments and
off-balance sheet arrangements as of December&nbsp;31, 2009. Further discussion of these commitments and
off-balance sheet arrangements is included in Note 14 to the consolidated financial statements.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>One Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>One to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Three to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Over</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Commitments to extend credit:</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>or Less</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Three years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Five years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Five years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial real estate and commercial business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39,197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">473</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">40,670</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Residential real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,224</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revolving home equity lines</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,389</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consumer revolving credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,308</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Standby letters of credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">360</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Impact of Inflation and Changing Prices</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our consolidated financial statements and related notes have been prepared in accordance with
accounting principles generally accepted in the United States of America (&#147;GAAP&#148;). GAAP generally
requires the measurement of financial position and operating results in terms of historical dollars
without consideration of changes in the relative purchasing power of money over time due to
inflation. The impact of inflation is reflected in the increased cost of our operations. Unlike
industrial companies, our assets and liabilities are primarily monetary in nature. As a result,
changes in market interest rates have a greater impact on performance than the effects of
inflation.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->67<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="162"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BUSINESS OF ONEIDA FINANCIAL&#151;NEW</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial-New is a Maryland corporation, organized in March&nbsp;2010. Upon completion of
the conversion, Oneida Financial-New will become the holding company of Oneida Savings Bank and
will succeed to all of the business and operations of Oneida Financial Corp. and each of Oneida
Financial Corp. and Oneida Financial, MHC will cease to exist.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Initially following the completion of the conversion, Oneida Financial-New will have no
significant assets other than owning 100% of the outstanding common stock of Oneida Savings Bank,
the net proceeds it retains from the offering, part of which will be used to make a loan to the
Oneida Savings Bank Employee Stock Ownership Plan, and will have no significant liabilities. See
&#147;How We Intend to Use the Proceeds From the Offering.&#148; Oneida Financial-New intends to use the
support staff and offices of Oneida Savings Bank and will pay Oneida Savings Bank for these
services. If Oneida Financial-New expands or changes its business in the future, it may hire its
own employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial-New intends to invest the net proceeds of the offering as discussed under
&#147;How We Intend to Use the Proceeds From the Offering.&#148; In the future, we may pursue other business
activities, including mergers and acquisitions, investment alternatives and diversification of
operations. There are, however, no current understandings or agreements for these activities.
</DIV>
<DIV align="left">
<A name="163"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BUSINESS OF ONEIDA FINANCIAL CORP.<BR>
AND ONEIDA SAVINGS BANK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial Corp. is a federally chartered corporation that was formed in 2001 as the
successor to a Delaware corporation of the same name. Oneida Financial Corp. owns all of the
outstanding shares of common stock of Oneida Savings Bank. At December&nbsp;31, 2009, Oneida Financial
Corp. had consolidated assets of $590.5&nbsp;million, deposits of $489.4&nbsp;million and stockholders&#146;
equity of $59.1&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank became the wholly owned subsidiary of Oneida Financial Corp. in 1998 when
Oneida Savings Bank reorganized from a New York chartered mutual savings bank into the two-tiered
mutual holding company structure. In connection with the reorganization, Oneida Financial Corp.
sold 3,745,698 shares, as adjusted for 3 for 2 stock splits in 2002 and 2004 (1,664,755 shares
originally issued) of its common stock to the public, representing 46.5% of the outstanding shares,
at $4.44 per share as adjusted for the stock splits ($10 per share original issue price) and
received net proceeds of $15.9&nbsp;million. An additional 4,309,750 shares as adjusted for the stock
splits (1,915,445 shares originally issued), or 53.5% of the outstanding shares of Oneida Financial
Corp., were issued to Oneida Financial, MHC. As part of the reorganization and offering, we
established an employee stock ownership plan which acquired 299,655 shares as adjusted for the
stock splits (133,180 shares originally issued) of Oneida Financial Corp. in the offering, financed
by a loan from Oneida Financial Corp., and a charitable foundation which was granted 157,864 shares
as adjusted for the stock splits (70,162 shares originally issued).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial Corp.&#146;s Internet address is www.oneidafinancial.com. Oneida Financial
Corp.&#146;s principal executive office is located at 182 Main Street, Oneida, New York 13421, and its
telephone number at that address is (315)&nbsp;363-2000.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->68<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Savings Bank</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank is a New York chartered savings bank headquartered in Oneida, New York.
Oneida Savings Bank was originally founded in 1866 as a mutual (meaning no stockholders) savings
bank. In 1998, Oneida Savings Bank converted to a New York chartered stock savings bank and
reorganized from the mutual to the two-tiered mutual holding company form of organization. Since
1998 Oneida Savings Bank has organically grown its traditional community banking franchise while
opportunistically employing an acquisition strategy that has both expanded banking operations and
diversified Oneida Savings Bank into the areas of insurance sales, financial services, employee
benefit consulting and other risk management products and services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank is a community bank engaged primarily in the business of accepting
deposits from customers through its main office and 11 full service branch offices and using those
deposits, together with funds generated from operations and borrowings to make one-to-four family
residential and commercial real estate loans, commercial business loans, consumer loans and to
invest in mortgage-backed and other securities. Municipal deposit banking services are provided
through a limited purpose commercial bank subsidiary, State Bank of Chittenango. Oneida Savings
Bank also sells insurance and other commercial services and products through Bailey &#038; Haskell
Associates, its insurance agency subsidiary, and provides employee benefit consulting services
through its wholly owned subsidiary Benefit Consulting Group. In addition, Oneida Savings Bank
provides risk management services to help mitigate and prevent work related injuries through its
wholly owned subsidiary Workplace Health Solutions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank&#146;s deposits are insured by the Federal Deposit Insurance Corporation up to
the maximum amount permitted by law. Oneida Savings Bank is subject to comprehensive regulation
and examination by the Federal Deposit Insurance Corporation and the New York State Banking
Department.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market Area</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conduct business from our headquarters and 10 full service branch offices throughout
Madison and Oneida Counties and 1 full service branch office in Onondaga County in New York. Our
primary lending area is Madison and Oneida Counties in New York and surrounding counties, and most
of our deposit customers reside in the same area. The City of Oneida is located approximately 30
miles east of Syracuse and 20 miles west of Utica. Our market area is characterized as rural and
serves as a bedroom community to the cities of Syracuse and Utica, New York. The economy in our
market area is relatively diverse with health care, college/university, financial/insurance and
tourism/recreation being the most prominent sectors as well as light manufacturing and technology
related industries. The largest employers in our market area includes Oneida Indian Nation&#146;s
Turning Stone Casino and Resort, Oneida Healthcare Center and other local and regional medical
facilities, Colgate University and Morrisville College. There are also many small to mid-sized
businesses that employ fewer than 100 persons and support the local economy. Madison, Oneida and
Onondaga Counties have a total population of 760,000 and total households of 302,000 according to
SNL Financial. Since 2000, our primary market area has had population declines, with the exception
of Madison County which has demonstrated population growth generally in line with the New York
state average according to SNL Financial.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In view of the current economic downturn and despite the population trends, our primary market
area has remained a stable banking market. As of December&nbsp;2009, the unemployment rates in Madison,
Oneida and Onondaga Counties in New York were 8.4%, 7.5% and 7.6%, respectively, compared to the
State of New York average of 8.8% and the national average of 9.7%, according to the United States
Department of Labor. As of June&nbsp;30, 2009, median household income levels ranged from $47,038 to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->69<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">$53,512 in the three counties where we maintain branch offices. The median household income growth
rates of persons residing in Oneida, Madison and Onondaga Counties were below that of New York
State and the United States from 2000 to 2009. However, the median household income growth rates
in Madison, Oneida and Onondaga Counties are expected to grow at rates of 7.8%, 9.8% and 8.7%,
respectively, between 2009 to 2014 compared to 6.1% for the State of New York average and 4.1% for
the national average according to estimates by SNL Financial.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Competition</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition in the banking and financial services industry is intense. We compete with
commercial banks, savings institutions, mortgage banking firms, credit unions, finance companies,
mutual funds, insurance companies, and brokerage and investment banking firms operating locally and
elsewhere. Many of these competitors have substantially greater resources and lending limits than
we do and may offer certain services that we do not or cannot provide. Moreover, credit unions
which offer substantially the same services as we offer are not subject to federal or state income
taxation. Trends toward the consolidation of the financial services industry and the removal of
restrictions on interstate branching and banking powers may make it more difficult for smaller
institutions such as Oneida Savings Bank to compete effectively with large national and regional
banking institutions. Our profitability depends upon the ability to successfully compete in our
market area.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Lending Activities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General. </I></B>Our principal lending activity has been the origination for retention in our
portfolio of adjustable-rate mortgage (&#147;ARM&#148;) loans collateralized by one-to-four family
residential real estate located within our primary market area. As a result of the continuation of
relatively low market interest rates in recent periods, borrowers have shown a preference for
fixed-rate loans. Consequently, in recent periods we have originated more fixed-rate one-to-four
family loans for resale in the secondary market, without recourse and on a servicing retained
basis. In order to complement our traditional emphasis of one-to-four family residential real
estate lending, management has sought to increase the number of higher yielding commercial real
estate loans, consumer loans and commercial business loans. To a limited extent, we will originate
loans secured by multi-family properties.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->70<!-- /Folio -->
</DIV>



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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Loan Portfolio Composition. </I></B>Set forth below is selected information concerning the
composition of our loan portfolio (including loans held for sale) in dollar amounts and in
percentages (before deductions for allowance for loan losses) as of the dates indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="38" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="38"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Real Estate Loans</B>:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">101,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">33.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">108,702</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">98,707</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">85,467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">81,018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,915</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,824</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,695</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Home equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,363</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,731</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,496</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,936</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216,933</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216,057</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">203,219</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">170,188</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159,508</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Consumer Loans</B>:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Automobile loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,885</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Recreational Vehicles</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Personal loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,897</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,715</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">768</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">877</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">794</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,818</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial business loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,797</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,241</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,933</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total consumer and
commercial business loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81,807</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89,059</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79,334</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">298,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">305,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">286,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">249,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">238,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Less:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Allowance for losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,624</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total loans receivable, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">295,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">302,492</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">284,418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">247,441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">236,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->71<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the composition of our loan portfolio (including loans
held for sale) by fixed and adjustable rates at the dates indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="38" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="38"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>FIXED-RATE LOANS:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Real Estate Loans:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">33,121</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">33,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">36,141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,655</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Home equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,317</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,716</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,592</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,191</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,275</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,390</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,212</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,928</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,984</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,958</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,919</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,992</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total commercial loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,337</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,770</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total fixed-rate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124,062</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,663</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>ADJUSTABLE-RATE LOANS:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Real Estate Loans:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">67,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">22.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">75,520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">24.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">62,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">21.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">59,984</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">24.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">55,363</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,770</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,649</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,921</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,695</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Home equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,486</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,086</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,473</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,744</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">585</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,788</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,304</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,474</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,818</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,983</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114,934</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,091</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,826</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">662</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total commercial business loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total adjustable-rate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">179,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181,054</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135,161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">298,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">305,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">286,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">249,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">238,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Less:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Allowance for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,624</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total loans receivable, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">295,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">302,492</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">284,418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">247,441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">236,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>One-to-four family Residential Loans. </I></B>One of our primary lending activities is the
origination of one-to-four family residential mortgage loans secured by property located in our
primary lending area. Generally, one-to-four family residential mortgage loans are made in amounts
up to 80% of the lesser of the appraised value or purchase price of the property. However, we will
originate one-to-four family loans with loan-to-value ratios of up to 97%, provided the borrower
obtains private mortgage insurance. Fixed-rate loans are originated for terms of up to 30&nbsp;years.
One-to-four family fixed-rate loans are offered with a monthly payment feature. We do not
originate and have not originated sub-prime, Alt-A, negative amortization or other higher risk
residential mortgage loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We originate both adjustable-rate and fixed-rate one-to-four family loans. As a result of the
continued low interest rate environment during the past year, a greater percentage of our
one-to-four family loan originations consisted of fixed-rate one-to-four family mortgage loans. We
originate and generally sell in the secondary market fixed-rate one-to-four family loans on a
servicing retained basis without recourse to Oneida Savings Bank. At December&nbsp;31, 2009, loans
serviced by Oneida Savings Bank for others totaled $126.3&nbsp;million. During the years ended December
31, 2009 and December&nbsp;31, 2008, we sold $55.9&nbsp;million and $18.6&nbsp;million, respectively, in
fixed-rate one-to-four family loans. As of December&nbsp;31, 2009, we had $4.7&nbsp;million of mortgage loan
forward sale commitments. The fair value of these commitments is not material.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The interest rate on ARM loans is indexed to the one year Treasury bill rate. Our ARM loans
currently provide for maximum rate adjustments of 200 basis points per year and 500 basis points
over the term of the loan. We offer ARM loans with initial interest rates that are below the fully
indexed equivalent loan rate, referred to as &#147;teaser rates.&#148; Residential ARM loans amortize over a
maximum term of up to 30&nbsp;years. In addition to one year ARM loans, we offer certain hybrid ARM
loans which provide for an initial fixed term of three or five years and then are converted into a
one year ARM loan after the fixed time period. ARM loans are originated for retention in our
portfolio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ARM loans decrease the risk associated with changes in market interest rates by periodically
repricing, but involve other risks. As interest rates increase, the underlying required periodic
payments by the borrower increase, thus increasing the potential for default by the borrower. At
the same time, the marketability of the underlying collateral may be adversely affected by higher
interest rates. Upward adjustment of the contractual interest rate is also limited by the maximum
periodic and lifetime interest rate adjustment permitted by the terms of the ARM loans, and
therefore, is potentially limited in effectiveness during periods of rapidly rising interest rates.
Decreasing interest rates could result in a downward adjustment of the contractual interest rates
resulting in lower interest income. At December&nbsp;31, 2009, 22.7% of our loan portfolio consisted of
one-to-four family residential loans with adjustable interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All one-to-four family residential mortgage loans originated by Oneida Savings Bank include
&#147;due-on-sale&#148; clauses, which give us the right to declare a loan immediately due and payable in the
event that, among other things, the borrower sells or otherwise disposes of the real property
subject to the mortgage and the loan is not repaid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, approximately $101.1&nbsp;million, or 33.8% of our loan portfolio, consisted
of one-to-four family residential loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Home Equity Loans. </I></B>We offer home equity loans that are secured by the borrower&#146;s primary
residence. We offer a home equity line of credit under which the borrower is permitted to draw on
the home equity line of credit during the first ten years after it is originated and repay the
outstanding balance over a term not to exceed 25&nbsp;years from the date the line of credit is
originated. The interest rates on home equity lines of credit are fixed for the first year and
adjust monthly thereafter at a margin over the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">prime interest rate. We also offer a home equity product providing for a fixed-rate of interest.
Both adjustable-rate and fixed-rate home equity loans are underwritten under the same criteria that
we use to underwrite one-to-four family fixed-rate loans. Fixed-rate home equity loans are
originated with terms up to ten years. Home equity loans may be underwritten with a loan to value
ratio of 90% when combined with the principal balance of the existing mortgage loan. The maximum
amount of a home equity loan may not exceed $1.0&nbsp;million unless approved by the Board of Directors.
We generally require an appraisal on the property securing loans in excess of $75,000 at the time
of the loan application (but not thereafter) in order to determine the value of the property
securing the home equity loans. We utilize alternative methods in determining the value of
properties of loans less than $75,000 such as a limited appraisal or review of tax bills. At
December&nbsp;31, 2009, the outstanding balance of home equity loans totaled $43.0&nbsp;million, or 14.4% of
our loan portfolio.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Commercial Real Estate Loans. </I></B>At December&nbsp;31, 2009, $68.1&nbsp;million, or 22.8% of the total loan
portfolio consisted of commercial real estate and multi-family loans. Commercial real estate and
multi-family residential loans are secured by office buildings, medical facilities, mixed-use
properties, religious facilities, other commercial properties and multi-family residential
properties. We originate adjustable rate commercial mortgage loans with terms of up to 20&nbsp;years.
The maximum loan-to-value ratio of commercial real estate loans is 80%. At December&nbsp;31, 2009, the
largest commercial real estate loan had a principal balance of $2.8&nbsp;million and was secured by a
car dealership building and fixtures. This loan was performing in accordance with its terms at
December&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In underwriting commercial real estate and multi-family residential loans, we review the
expected net operating income generated by the real estate to ensure that it is at least 110% of
the amount of the monthly debt service; the age and condition of the collateral; the financial
resources and income level of the borrower; and the borrower&#146;s business experience. Personal
guarantees are routinely obtained from all commercial real estate borrowers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans secured by commercial real estate and multi-family residential properties generally are
larger than one-to-four family residential loans and involve a greater degree of risk. Commercial
and multi-family residential mortgage loans often involve large loan balances to single borrowers
or groups of related borrowers. Payments on these loans depend to a large degree on the results of
operations and management of the properties or underlying businesses, and may be affected to a
greater extent by adverse conditions in the real estate market or the economy in general.
Accordingly, the nature of commercial real estate loans makes them more difficult for management to
monitor and evaluate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Construction and Land. </I></B>At December&nbsp;31, 2009, construction and land loans totaled $4.7
million, or 1.6% of the total loan portfolio. We generally do not originate speculative
construction loans, and we had no such loans in our portfolio at December&nbsp;31, 2009. Our
construction and land loans consisted of $700,000 of fixed rate one-to-four family residential
construction loans as well as $4.0&nbsp;million of commercial construction loans. One-to-four family
residential construction loans are offered as interest-only loans at a fixed rate of interest for
up to a five month construction period. Immediately following the construction period the loan
begins monthly amortizing payments consistent with the terms of the one-to-four family permanent
mortgage loan product. Commercial construction loans can consist of land development loans or new
building construction loans. Land development loans are collateralized by a mortgage on the
property which is supported by an appraisal. Commercial construction loans are given for the
construction phase of a building. There can be an interest only period for new construction loans
not to exceed one year. Once the construction is completed, the loan is transferred into permanent
financing. Draws for both residential and commercial new construction are based on the loan
approval, commitment letter, and a building and loan agreement. Property inspections during the
construction phase are also required.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction financing generally involves greater credit risk than long-term financing on
improved, owner-occupied real estate. Risk of loss on a construction loan depends largely upon the
accuracy of the initial estimate of the value of the property at completion of construction
compared to the estimated cost (including interest) of construction and other assumptions. If the
estimate of construction cost proves to be inaccurate, we may be required to advance additional
funds beyond the amount originally committed in order to protect the value of the property.
Moreover, if the estimated value of the completed project proves to be inaccurate, the borrower may
hold a property with a value that is insufficient to assure full repayment of the construction loan
upon the sale of the property. In the event we make a land acquisition loan on property that is
not yet approved for the planned development, there is the risk that approvals will not be granted
or will be delayed. Construction loans also expose us to the risk that improvements will not be
completed on time in accordance with specifications and projected costs. In addition, the ultimate
sale or rental of the property may not occur as anticipated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Consumer Lending</I></B>. At December&nbsp;31, 2009, consumer loans totaled $43.0&nbsp;million, or 14.4% of the
total loan portfolio. Our consumer loans consist of automobile loans, recreational vehicle loans,
secured personal loans (secured by bonds, equity securities or other readily marketable
collateral), and other consumer loans (consisting of passbook loans and unsecured home improvement
loans). Consumer loans are originated with terms to maturity of three to seven years.
Historically, we have sought to increase the level of consumer loans primarily through increased
automobile lending. We participate in a number of indirect automobile lending programs with local
automobile dealerships. All indirect automobile loans must satisfy our underwriting criteria for
automobile loans originated directly by us to the borrower and must be approved by one of our
lending officers. At December&nbsp;31, 2009, loans secured by automobiles totaled $39.1&nbsp;million, of
which $31.1&nbsp;million were originated through our indirect automobile lending program. We have also
sought to increase the level of automobile loans directly to borrowers by increasing marketing
efforts with existing customers. Automobile loans generally do not have terms exceeding five
years. We do not provide financing for leased automobiles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumer loans generally have shorter terms and higher interest rates than one-to-four family
mortgage loans. In addition, consumer loans expand the products and services we offer to better
meet the financial services needs of our customers. Consumer loans generally involve greater
credit risk than residential mortgage loans because of the difference in the underlying collateral.
Repossessed collateral for a defaulted consumer loan may not provide an adequate source of
repayment of the outstanding loan balance because of the greater likelihood of damage to, loss of,
or depreciation in the underlying collateral. The remaining deficiency often does not warrant
further substantial collection efforts against the borrower beyond obtaining a deficiency judgment.
In addition, consumer loan collections depend on the borrower&#146;s personal financial stability.
Furthermore, the application of various federal and state laws, including federal and state
bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our underwriting procedures for consumer loans include an assessment of the applicant&#146;s credit
history and the ability to meet existing and proposed debt obligations. Although the applicant&#146;s
creditworthiness is the primary consideration, the underwriting process also includes a comparison
of the value of the security to the proposed loan amount. We underwrite consumer loans internally,
which we believe limits our exposure to credit risks associated with loans underwritten or
purchased from brokers and other external sources.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Commercial Business Loans. </I></B>At December&nbsp;31, 2009, we had $38.8&nbsp;million of commercial business
loans which represented 13.0% of the total loan portfolio. Commercial business loans are
originated with terms of up to seven years, at fixed rates of interest except for lines of credit
which have variable rates of interest. Commercial business loans are generally originated to
persons with a prior relationship with Oneida Savings Bank or referrals from persons with a prior
relationship with Oneida
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->75<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Savings Bank. The decision to grant a commercial business loan depends primarily on the
creditworthiness and cash flow of the borrower (and any guarantors) and secondarily on the value of
and ability to liquidate the collateral which generally consists of receivables, inventory and
equipment. We generally require annual financial statements and tax returns from our commercial
business borrowers and personal guarantees from the commercial business borrowers. We also
generally require an appraisal of any real estate that secures the commercial business loan. At
December&nbsp;31, 2009, the largest commercial business loan totaled $1.8&nbsp;million, which was secured by
business assets, life insurance and a residential property of a construction management company.
Although this loan was performing in accordance with its terms at December&nbsp;31, 2009, this loan was
part of a $2.2&nbsp;million relationship that we had determined to be impaired at that date. See &#147;Asset
Quality, Delinquencies and Classified Assets&#148; herein for additional information. At December&nbsp;31,
2009, unsecured commercial business loans totaled $861,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial business lending generally involves greater risk than residential mortgage lending
and involves risks that are different from those associated with residential and commercial real
estate lending. Real estate lending is generally considered to be collateral based, with loan
amounts based on predetermined loan to collateral values and liquidation of the underlying real
estate collateral is viewed as the primary source of repayment in the event of borrower default.
Although commercial business loans may be collateralized by equipment or other business assets, the
liquidation of collateral in the event of a borrower default is often an insufficient source of
repayment because equipment and other business assets may be obsolete or of limited use, among
other things. Accordingly, the repayment of a commercial business loan depends primarily on the
creditworthiness of the borrower (and any guarantors), while liquidation of collateral is a
secondary and often insufficient source of repayment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Loan Maturity Schedule. </I></B>The following table sets forth certain information as of December&nbsp;31,
2009, regarding the amount of loans (including loans held for sale) maturing in our portfolio.
Demand loans having no stated schedule of repayment and no stated maturity and overdrafts are
reported as due in one year or less. All loans are included in the period in which the final
contractual repayment is due.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Ten</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>One</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Three</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Through</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Beyond</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Through</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Through</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Five</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Twenty-</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Twenty-</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Within</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Three</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Five</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Through</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Five</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Five</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>One Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Ten Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="26"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Real estate loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,621</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">66,121</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,477</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">101,095</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,915</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Home equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">235</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,605</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,288</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,731</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,731</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,867</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,945</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,942</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,178</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,595</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,477</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216,933</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,849</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,010</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial business loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,797</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,296</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,797</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">43,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">70,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">123,399</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">298,740</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->76<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Fixed- and Adjustable-Rate Loan Schedule</I></B><B>. </B>The following table sets forth at December&nbsp;31,
2009, the dollar amount of all fixed-rate and adjustable-rate loans (including loans held for sale)
due after December&nbsp;31, 2010. Adjustable- and floating-rate loans are included based on contractual
maturities.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Due After December 31, 2010</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fixed</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Adjustable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">33,105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">67,942</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">101,047</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,770</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,908</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Home equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,779</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,754</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,139</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160,588</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">211,873</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,488</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,823</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial business loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,909</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,253</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,162</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">110,682</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">167,176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">277,858</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->77<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Loan Origination, Sales and Repayments. </I></B>The following table sets forth our loan
origination, sales and repayment activities for the periods indicated. Purchased loans represent
those purchased as part of the acquisition of the National Bank of Vernon as well as individual
commercial loans which are considered participation loans. The sales of loans represent
one-to-four family fixed rate loans that are sold in the secondary market within the normal course
of business as well as commercial loans in which a portion of the loan has been sold.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Originations by Type:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustable-Rate:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Real estate:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,868</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">969</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Home equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,444</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,838</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Construction and land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,157</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,753</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,858</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,690</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,844</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,632</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial business loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,211</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,023</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total adjustable rate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,066</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">45,742</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32,345</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fixed-Rate:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Real estate:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,405</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,663</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,024</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Home equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,819</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,166</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Construction and land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,363</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,670</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,351</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,264</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,805</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,296</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,987</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial business loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,508</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,779</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total fixed rate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">102,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">75,145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">69,571</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total loans originated</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">136,459</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">120,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">101,916</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Purchased:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustable-Rate:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Real estate:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,013</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Home equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,353</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,366</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial business loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,017</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total adjustable loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,383</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fixed-Rate:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Real estate:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,676</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Home equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">768</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,307</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,751</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,443</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial business loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,906</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total fixed rate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total loans purchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,483</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Sales:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Real estate:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">55,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,938</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total loans sold</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">57,345</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,938</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Repayments:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Real estate:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,390</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">584</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">417</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Home equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,850</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Construction and land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,963</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,779</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,631</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(793</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,643</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,531</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,327</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial business loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,261</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,084</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total repayments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">85,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">85,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">76,054</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total reductions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">142,835</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">103,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">93,992</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net (decrease)&nbsp;increase</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(6,376</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,407</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->78<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Loan Approval Procedures and Authority. </I></B>The Board of Directors establishes our lending
policies and loan approval limits. Loan officers generally have the authority to originate
mortgage loans, consumer loans and commercial business loans up to amounts established for each
lending officer. All residential loans over $500,000 must be approved by the Bank Loan Committee
(consisting of two persons; the President and/or Executive Vice President in charge of credit
administration and either one of two senior lending officers appointed to this committee). All
loan relationships in excess of $500,000 and up to $2.0&nbsp;million (exclusive of residential mortgages
and home equity loans secured by a lien on the borrower&#146;s primary residence) must be approved by
the Bank Loan Committee. All lending relationships in excess of $2.0&nbsp;million up to $3.0&nbsp;million
(exclusive of residential mortgages and home equity loans secured by a lien on the borrower&#146;s
primary residence) must be approved by the Executive Committee of the Board of Directors. All
lending relationships in excess of $3.0&nbsp;million must be approved by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All independent appraisers are approved by the Board of Directors annually. We require an
environmental site assessment for all non-residential mortgage loans. Our policy is to require
hazard insurance on all mortgage loans and generally to require title insurance on all residential
mortgage loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Loan Origination Fees and Other Income</I></B><B>. </B>In addition to interest earned on loans, we receive
loan origination fees. Such fees and costs vary with the volume and type of loans and commitments
made and purchased, principal repayments and competitive conditions in the mortgage markets, which
in turn respond to the demand and availability of money.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to loan origination fees, we also receive other fees, servicing income and other
income that consist primarily of mortgage servicing fees and late charges.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Loans-to-One Borrower</I></B>. Savings banks are subject to the same loans-to-one borrower limits as
those applicable to national banks, which under current regulations restrict loans to one borrower
to an amount equal to 15% of unimpaired net worth on an unsecured basis, and an additional 10% of
unimpaired net worth in the case of loans that are fully secured by readily marketable collateral
having a market value, as determined by reliable and continuously available price quotations at
least equal to the amount of the loan. Our policy provides that loans to one borrower (or related
borrowers) should not exceed 15% of our capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, the largest amount loaned to one borrower consisted of commercial real
estate loans secured by medical office space to a corporation with an outstanding balance totaling
$4.8&nbsp;million. This amount consisted of four commercial real estate loans secured by the property
and other business assets. At December&nbsp;31, 2009, this lending relationship was performing in
accordance with its terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Asset Quality, Delinquencies and Classified Assets</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Collection Procedures. </I></B>A computer generated late notice is sent one day after a loan&#146;s grace
period ends. After the late notice has been mailed, accounts are assigned to collectors for
follow-up to determine reasons for delinquency and explore payment options. Generally, loans that
are 30&nbsp;days delinquent will receive a default notice. With respect to consumer loans, we will
commence efforts to repossess the collateral after the loan becomes 45&nbsp;days delinquent. Loans
secured by real estate that are delinquent over 60&nbsp;days are turned over to our Managed Asset
Manager. Generally, after 90&nbsp;days we will commence legal action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Loans Past Due and Nonperforming Assets</I></B><B>. </B>Loans are reviewed on a regular basis and are placed
on non-accrual status when they are 90&nbsp;days past due or earlier when, in the opinion of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->79<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">management, the collection of additional interest is doubtful. Loans are generally placed on
non-accrual status when either principal or interest is 90&nbsp;days or more past due. Interest accrued
and unpaid at the time a loan is placed on a non-accrual status is reversed from interest income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate acquired as a result of foreclosure or by deed in lieu of foreclosure is
classified as Other Real Estate (&#147;REO&#148;) until such time as it is sold. When real estate is
acquired through foreclosure or by deed in lieu of foreclosure, it is recorded at its fair value,
less estimated costs of disposal. If the value of the property is less than the loan balance, less
any related specific loan loss provisions, the difference is charged against the allowance for loan
losses. Any subsequent write-down of REO is charged against earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth certain delinquencies in our loan portfolio as of December&nbsp;31,
2009. When a loan is delinquent 90&nbsp;days or more or earlier when, in the opinion of management, the
collection of additional interest is doubtful, we fully reverse all interest accrued and ceases to
accrue interest thereafter.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>Loans Delinquent for:</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>60-89 Days</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>90 Days or More</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total Delinquent Loans</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">One-to-four family </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39         </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">234</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Multi-family </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Home equity </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">       89</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction and land </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial real estate </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">224</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consumer </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial business </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">462</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">579</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->80<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Nonaccrual Loans and Nonperforming Assets</I></B><B>. </B>The following table sets forth information
regarding nonaccrual loans and other nonperforming assets.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-accruing loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">394</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">223</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Home equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Consumer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">551</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accruing loans delinquent more than 90&nbsp;days:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total nonperforming loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">551</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">225</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreclosed assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-accruing investment securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Trust preferred securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,897</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,897</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total nonperforming assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,448</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">225</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total nonperforming loans as a percentage of total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.17</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.13</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total nonperforming assets as a percentage of total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.41</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.05</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Of our total nonperforming loans at December&nbsp;31, 2009 of $551,000, $394,000 consisted of
four one-to-four family loans and one commercial real estate loan. The property underlying the
commercial real estate loan with an outstanding balance of $199,000 was foreclosed upon in January
2010 and is currently in the process of being listed for sale. We do not anticipate any material
loss on this loan. In addition, we believe that the four one-to-four family loans with an
aggregate outstanding balance of $195,000 are adequately collateralized and we do not anticipate
any losses on such loans. These loans are in various stages of foreclosure. In addition, $68,000
of the nonperforming loans consisted of two home equity loans. One of these loans has been brought
current since December&nbsp;31, 2009 and is no longer considered non-performing, and the property
securing the other loan is in the process of being sold. We do not anticipate losses on either of
these loans. Also included in nonperforming loans was $89,000 representing two commercial loans,
each of which is partially guaranteed by SBA. We do not anticipate a loss on either of these
loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the years ended December&nbsp;31, 2009 and 2008, respectively, gross interest income of
$30,000 and $19,000 would have been recorded on nonaccruing loans under their original terms, if
the loans had been current throughout the period. No interest income was recorded on nonaccruing
loans during the years ended December&nbsp;31, 2009 and 2008.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->81<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Classification of Assets</I></B><B>. </B>On the basis of management&#146;s review of its assets, at the dates
indicated we had classified assets and other criticized assets as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Classified assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Substandard </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,954</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,722</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Doubtful </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">239</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loss </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total classified assets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,797</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Impaired assets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Special Mention </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,509</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total criticized assets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,306</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, our classified assets included loans identified by bank regulatory
definitions of &#147;substandard&#148; and &#147;doubtful&#148;. We had no assets classified as &#147;loss&#148; at December&nbsp;31,
2009. Substandard assets consisted of (i)&nbsp;four commercial loans with a principal balance of
$147,000, (ii)&nbsp;seven commercial real estate loans with a principal balance of $2.4&nbsp;million and
(iii)&nbsp;seven one-to-four family residential loans with a principal balance of $447,000. Doubtful
assets consisted of (i)&nbsp;three commercial loans with a principal balance of $203,000 and (ii)&nbsp;one
commercial real estate loan with a principal balance of $36,000. In addition to the classified
assets, we have identified certain impaired assets at December&nbsp;31, 2009 consisting of (i)&nbsp;two
commercial loans with a principal balance of $2.2&nbsp;million, (ii)&nbsp;eight trust preferred securities
with a carrying value of $5.6&nbsp;million and (iii)&nbsp;one private placement collateralized mortgage
obligation with a carrying value of $744,000. Included as a component of criticized assets are
loans identified as &#147;special mention&#148; as determined by management according to regulatory guidance.
At December&nbsp;31, 2009, we had one commercial loan identified as special mention with a principal
balance of $533,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Allowance for Loan Losses</I></B><B>. </B>The allowance for loan losses is a valuation allowance for
probable incurred credit losses. Loan losses are charged against the allowance when management
believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are
credited to the allowance. Management estimates the allowance balance required using past loan
loss experience, the nature and volume of the portfolio, information about specific borrower
situations and estimated collateral values, economic conditions, and other factors. Allocations of
the allowance may be made for specific loans, but the entire allowance is available for any loan
that, in management&#146;s judgment, should be charged off. In addition, various regulatory agencies,
as an integral part of their examination process, periodically review our allowance for loan losses
and valuation of real estate owned. Such agencies may require us to recognize additions to the
allowance based on their judgment about information available to them at the time of their
examination. At December&nbsp;31, 2009, the total allowance was $2.9&nbsp;million, which amounted to 0.98%
of loans, net and 526.5% of nonperforming loans. Management monitors and modifies the level of the
allowance for loan losses in order to maintain it at a level which it considers adequate to provide
for probable incurred loan losses. For the years ended December&nbsp;31, 2009 and 2008, we had net
charge-offs of $483,000 and $412,000, respectively, against this allowance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quarterly, management evaluates the adequacy of the allowance for loan losses and determines
the appropriate level of provision for loan losses by applying a range of estimated loss
percentages to each category of performing loans and classified loans. The allowance adjustment is
based upon the net change in each portfolio category, as well as adjustments related to impaired
loans, since the prior quarter. A loan is considered impaired, based on current information and
events, if it is probable that we will be unable to collect the scheduled payments of principal or
interest when due according to the contractual terms of the loan agreement. Factors considered by
management in determining impairment include payment status, collateral value, and the probability
of collecting scheduled principal and interest payments when due. The measurement of impaired
loans is generally based on the present value of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->82<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">expected future cash flows discounted at the historical effective interest rate, except that all
collateral-dependent loans are measured for impairment based on the estimated fair value of the
collateral securing the loan. Management believes the current method of determining the adequacy
of the allowance is prudent in light of our intention to continue to emphasize the origination of
consumer loans, commercial business loans and commercial real estate loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Analysis of the Allowance For Loan Losses</I></B><B>. </B>The following table sets forth the analysis of the
allowance for loan losses for the periods indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>At or For the Years Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at beginning of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,624</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,982</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Charge-offs:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Home equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Consumer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">547</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">215</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">301</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">448</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">521</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Recoveries:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Home equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Consumer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">269</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net charge-offs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(483</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(412</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(96</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(158</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(383</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Addition of National Bank of Vernon allowance from
acquisition</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision charged to operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">360</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,624</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,959</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses as a percentage of total
loans receivable, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.88</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.84</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.83</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratio of net charge-offs to average loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.06</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.17</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratio of net charge-offs to non-performing loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">87.66</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">80.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">309.80</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">170.22</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->83<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Allocation of Allowance for Loan Losses</I></B><B>. </B>The following table sets forth the allocation
of the allowance for loan losses by loan category for the periods indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="34" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of<BR> Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of<BR> Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of<BR> Loans</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amount of<BR> Loan Loss</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Loan<BR> Amounts by</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Each<BR> Category to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amount of<BR> Loan Loss</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Loan<BR> Amounts by</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Each <BR>Category to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amount of<BR> Loan Loss</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Loan<BR> Amounts by</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Each<BR> Category to</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="34"><B>(Dollars in Thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">101,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">33.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">108,702</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">326</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">98,707</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,915</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,824</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Home equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,363</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction and land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,731</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">585</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">821</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,936</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consumer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">401</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,818</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,259</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,797</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,241</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,933</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">298,470</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,624</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">305,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">286,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage<BR> of Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage<BR> of Loans</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amount of<BR> Loan Loss</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Loan<BR> Amounts by</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Each<BR> Category to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amount of<BR> Loan Loss</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Loan<BR> Amounts by</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Each<BR> Category to</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22"><B>(Dollars in Thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">One-to-four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">272</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">85,467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">81,018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,695</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Home equity </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction and land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,496</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consumer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">451</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">614</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">249,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">238,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->84<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Securities Investment Activities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The securities investment policy is established by our Board of Directors. This policy
dictates that investment decisions will be made based on the safety of the investment, our
liquidity needs, potential returns, cash flow targets and desired risk parameters. In pursuing
these objectives, management considers the ability of an investment to provide earnings consistent
with factors of quality, maturity, marketability, liquidity and risk diversification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our current policies generally limit security investments to U.S. Government and agency
securities, tax-exempt bonds, public utilities debt obligations, corporate debt obligations and
corporate equity securities. In addition, our policy permits investments in mortgage related
securities, including securities issued by government sponsored enterprises such as Fannie Mae,
Freddie Mac and Ginnie Mae. Our investment strategy is to increase overall investment securities
yields while managing interest rate risk. We will only purchase securities rated as investment
grade by a nationally recognized investment rating agency. We do not engage in any hedging
transactions, such as interest rate swaps or caps.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We evaluate securities for other-than-temporary impairment (&#147;OTTI&#148;) at least on a quarterly
basis, and more frequently when economic or market concerns warrant such evaluation. In
determining OTTI for debt securities, management considers many factors, including: (1)&nbsp;the length
of time and extent to which the fair value has been less than cost, (2)&nbsp;the financial condition and
near-term prospects of the issuer, (3)&nbsp;whether the market value decline was affected by
macroeconomic conditions and (4)&nbsp;whether we have the intent to sell the debt security or more
likely than not will be required to sell the debt security before its anticipated recovery. The
assessment of whether an other-than-temporary impairment decline exists involves a high degree of
subjectivity and judgment and is based on the information available to management at a point in
time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, we had nine trust preferred securities with an aggregate fair value of
$5.9&nbsp;million and aggregate unrealized losses of $3.5&nbsp;million. Of the $5.9&nbsp;million, $1.9&nbsp;million
have variable rates of interest. All of these securities are rated below investment grade as of
December&nbsp;31, 2009. The $1.9&nbsp;million of variable rate trust preferred securities are on nonaccrual
as of December&nbsp;31, 2009. The issuers of these securities are primarily banks, but some of the
pools do include a limited number of insurance companies. As of December&nbsp;31, 2009, through review
of the current and expected cash flow analysis based on the credit quality of the underlying
collateral, the class of securities we own, default probabilities and anticipated losses given
default assumptions and stress tests performed on these securities, eight of the trust preferred
securities have been considered impaired as of December&nbsp;31, 2009. The other-than-temporary
impairment loss taken for the year ended December&nbsp;31, 2009 was $2.3&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses on other investments have not been recognized into income because the
issuer(s) securities are of investment grade (except for a General Motors Acceptance Corp. bond and
SLMA bond), management does not intend to sell the security and it is more likely than not that
management would be required to sell the securities prior to their anticipated recovery, and the
decline in fair value is largely due to changes in interest rates. The fair value is expected to
recover as the bond(s) approach maturity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, we had a $2.0&nbsp;million General Motors Acceptance Corp. (GMAC)&nbsp;bond,
maturing October&nbsp;15, 2010 which has a rating below investment grade. This is a variable rate note
based on the three month Treasury bill. The unrealized loss at December&nbsp;31, 2009 was $100,000. In
addition, at December&nbsp;31, 2009, we had a $2.5&nbsp;million Sallie Mae (SLMA)&nbsp;bond, maturing May&nbsp;1, 2012
which has a rating below investment grade. This is a variable rate note based on the consumer
price index. The unrealized loss on this security was $402,000 as of December&nbsp;31, 2009. Both GMAC
and SLMA are paying as agreed. These losses have not been considered other-than-temporary in that
we do not intend to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->85<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">sell the securities and it is not more likely than not that we will be required to sell these
securities before the recovery of their cost basis, which may be at maturity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Investment Securities. </I></B>At December&nbsp;31, 2009, we had $96.5&nbsp;million, or 16.3% of total assets,
invested in investment securities, which consisted primarily of U.S. Government obligations,
tax-exempt securities and corporate debt obligations. There were trust preferred investments with
an aggregate fair value of $5.9&nbsp;million and an amortized cost of $9.4&nbsp;million included in corporate
debt obligations at December&nbsp;31, 2009. We are required to designate securities as held to
maturity, available for sale or trading, depending on our ability and intent regarding our
investments. During 2009, we have designated certain investment securities as held to maturity in
addition to available for sale. Investment securities in which the fair value option has been
elected are considered trading assets and are recorded at fair value with changes in fair value
included in earnings. Trading securities, which consisted of common and preferred equity
securities, totaled $7.6&nbsp;million or 1.3% of total assets at December&nbsp;31, 2009. At December&nbsp;31,
2009, our investment securities portfolio had a weighted average life of 6.84&nbsp;years.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->86<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Investment Securities</I></B><B>. </B>The following table sets forth certain information regarding the
investment securities and other interest earning assets as of the dates indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="38" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized<BR>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair<BR>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized<BR>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair<BR>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized<BR>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair<BR>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized<BR>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair<BR>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized<BR>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair<BR>Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="38"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment securities
available for sale:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal agency securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,964</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">38,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,963</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">36,909</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">36,264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">36,546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">35,459</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Corporate debt securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,802</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,791</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,455</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,696</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,903</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">State and municipal bonds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,747</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,498</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,392</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,699</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,595</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">67,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">64,010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">66,091</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,446</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99,618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">95,825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">86,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">85,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">108,745</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">106,455</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average remaining life of
investment
securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">6.34 years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">7.92 years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">6.89 years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">5.99  years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">7.18  years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment securities held to
maturity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal agency securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,807</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">State and municipal bonds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,925</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32,477</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32,732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average remaining life of investment
securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">7.84 years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trading securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,941</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,941</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other interest earning assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest-earning deposits
with banks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,437</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,437</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal funds sold</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">730</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FHLB Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,665</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,665</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,858</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,858</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,444</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,444</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,025</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,025</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->87<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Investment Portfolio Maturities. </I></B>The following table sets forth the scheduled
maturities, market value and weighted average yields for our available for sale investment
portfolio at December&nbsp;31, 2009.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>

    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">&nbsp;</td></TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>After 1 Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>After 5 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Within</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>but Within</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD nowrap align="center" colspan="2"><B>but Within</B></TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>After</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>1 Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>5 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>10 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>10 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Dollars in Thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal agency securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,553</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,958</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,896</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Corporate debt securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,171</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,126</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tax exempt bonds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">911</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,881</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,988</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,961</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">64,010</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average yield (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.83</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.69</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.32</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.59</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD> Weighted average yield has not been adjusted to reflect tax equivalent adjustments.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the scheduled maturities, market value and weighted
average yields for our held to maturity investment portfolio at December&nbsp;31, 2009.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">

<TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
<TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
<TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
<TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>
<TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">&nbsp;</TD>

<TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
   <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">&nbsp;</TD>
<TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">&nbsp;</TD>


</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>After 1 Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>After 5 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Within</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>but Within</B></TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>but Within</B></TD>
    <TD>&nbsp;</TD>
 <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>After</B></TD>

    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>1 Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>5 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>10 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>10 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Dollars in Thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal agency securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,862</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tax exempt bonds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,748</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,662</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,615</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,662</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32,477</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average yield (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.91</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.27</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.37</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD> Weighted average yield has not been adjusted to reflect tax equivalent adjustments.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Mortgage-Backed Securities</I></B><I>. </I>We purchase mortgage-backed securities in order to: (i)
generate positive interest rate spreads with minimal administrative expense; (ii)&nbsp;lower our credit
risk; and (iii)&nbsp;increase liquidity. At December&nbsp;31, 2009, we had $65.7&nbsp;million or 11.1% of total
assets invested in mortgage-backed securities, of which $15.2&nbsp;million were classified as held to
maturity. Prior to January&nbsp;1, 2009, all mortgage-backed securities were classified as available
for sale. The mortgage-backed securities portfolio had coupon rates ranging from 0.63% to 7.79%, a
weighted average yield of 4.47% and a weighted average life (including payment assumption) of 6.72
years at December&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities are created by the pooling of mortgages and the issuance of a
security with an interest rate that is less than the interest rate on the underlying mortgages.
Mortgage-backed securities typically represent a participation interest in a pool of single-family
or multi-family mortgages, although we focus our investments on mortgage-related securities backed
by single-family mortgages. The issuers of such securities (generally U.S. Government agencies and
government sponsored enterprises, including Fannie Mae, Freddie Mac and Ginnie Mae) pool and resell
the participation interests in the form of securities to investors, such as Oneida Savings Bank,
and guarantee the payment of principal and interest to these investors. Mortgage-backed securities
generally yield less than the loans that underlie such securities because of the cost of payment
guarantees and credit enhancements. In addition, mortgage-related securities are usually more
liquid than individual mortgage loans and may be used to collateralize certain of our liabilities
and obligations. Investments in mortgage-backed securities involve a risk that actual prepayments
will be greater than estimated over the life of the security, which
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->88<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">may require adjustments to the amortization of any premium or accretion of any discount relating to
such instruments thereby reducing the net yield on such securities. There is also reinvestment risk
associated with the cash flows from such securities or in the event such securities are redeemed by
the issuer. In addition, the market value of such securities may be adversely affected by changes
in interest rates. Management reviews prepayment estimates periodically to ensure that prepayment
assumptions are reasonable considering the underlying collateral for the securities at issue and
current interest rates and to determine the yield and estimated maturity of our mortgage-backed
securities portfolio. Of our $65.7&nbsp;million mortgage-backed securities portfolio at December&nbsp;31,
2009, $333,249 with a weighted average yield of 4.21% had contractual maturities within five years,
$2.6&nbsp;million with a weighted average yield of 4.17% had contractual maturities of five to ten years
and $62.8&nbsp;million with a weighted average yield of 4.50% had contractual maturities of over ten
years. However, the actual maturity of a mortgage-backed security may be less than its stated
maturity due to prepayments of the underlying mortgages or significant defaults of the underlying
mortgages. Prepayments that are faster than anticipated may shorten the life of the security and
may result in a loss of any premiums paid and thereby reduce the net yield on such securities.
Although prepayments of underlying mortgages depend on many factors, the difference between the
interest rates on the underlying mortgages and the prevailing mortgage interest rates generally is
the most significant determinant of the rate of prepayments. Historically, during periods of
declining mortgage interest rates, refinancing generally increases and accelerates the prepayment
of the underlying mortgages and the related security. Under such circumstances, we may be subject
to reinvestment risk because, to the extent that our mortgage related securities prepay faster than
anticipated, we may not be able to reinvest the proceeds of such repayments and prepayments at a
comparable rate of return. During 2009, mortgage interest rates remained at historical low levels
throughout the year. The impact on our mortgage-backed securities portfolio is to increase the
prepayments at a faster rate than anticipated. Conversely, in a rising interest rate environment
prepayments may decline, thereby extending the estimated life of the security and depriving us of
the ability to reinvest cash flows at the increased rates of interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Collateralized mortgage obligations (&#147;CMOs&#148;) are debt securities issued by a special-purpose
entity that aggregates pools of mortgages and mortgage-backed securities and creates different
classes of securities with varying maturities and amortization schedules, as well as a residual
interest, with each class possessing different risk characteristics. The cash flows from the
underlying collateral are generally divided into &#147;tranches&#148; or classes that have descending
priorities with respect to the distribution of principal and interest cash flows, while cash flows
on pass-through mortgage-backed securities are distributed pro rata to all security holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have a $1.0&nbsp;million private placement collateralized mortgage obligation which is not rated
as of December&nbsp;31, 2009. The unrealized loss at December&nbsp;31, 2009 was $237,000. As of December
31, 2009, through review of the current and expected cash flow analysis based on the credit quality
of the underlying collateral, default probabilities and anticipated losses, this security has been
considered impaired. The other-than-temporary impairment loss taken for the year ended December
31, 2009 was $13,100.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->89<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- LANDSCAPE -->



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Mortgage-Backed Securities. </I></B>Set forth below is information relating to our mortgage-backed
securities for the periods indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap align="center" colspan="16" style="border-bottom: 1px solid #000000">&nbsp;</td>
   <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
<TD nowrap align="center" colspan="16" style="border-bottom: 1px solid #000000">&nbsp;</td>

</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">(In thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities available for sale:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Ginnie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,983</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,298</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,939</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,888</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,678</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,937</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Freddie Mac</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,902</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,471</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,571</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,034</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">CMOs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,569</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,903</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,103</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,061</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">74,005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">74,316</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,569</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,881</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,074</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities held to maturity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Ginnie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,227</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,215</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio -->90<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Sources of Funds</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General. </I></B>Our primary sources of funds for use in lending, investing and for other general
purposes are deposits, repayments and prepayments of loans and securities, proceeds from sales of
loans and securities, proceeds from maturing securities and cash flows from operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Deposits. </I></B>We offer a variety of deposit accounts with a range of interest rates and terms.
Our deposit accounts consist of savings, interest-bearing demand accounts, non interest-bearing
checking accounts, money market accounts and certificates of deposit. We also offer IRAs and other
qualified plan accounts. Through our limited purpose subsidiary, State Bank of Chittenango, we
held $86.0&nbsp;million in municipal deposits at December&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, deposits totaled $489.4&nbsp;million. At December&nbsp;31, 2009, we had a total
of $156.9&nbsp;million in certificates of deposit, of which $123.4&nbsp;million had maturities of one year or
less. Although we have a significant portion of deposits in shorter term certificates of deposit,
management monitors activity on these accounts. Based on historical experience and our current
pricing strategy, management believes it will retain a large portion of such accounts upon
maturity. At December&nbsp;31, 2009, certificates of deposit with balances of $100,000 or more totaled
$56.7&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The flow of deposits is influenced significantly by general economic conditions, changes in
prevailing interest rates, internal pricing decisions and competition. Deposits are obtained
predominantly from the areas in which our branch offices are located. We rely primarily on
competitive pricing of deposit products and customer service and long-standing relationships with
customers to attract and retain these deposits; however, market interest rates and rates offered by
competing financial institutions significantly affect our ability to attract and retain deposits.
We use traditional means of advertising our deposit products, including radio and print media and
generally do not solicit deposits from outside our market area. While we accept certificates of
deposit in excess of $100,000, and may be subject to preferential rates, we do not actively solicit
such deposits as they are more difficult to retain than core deposits. During 2009, the FDIC
temporarily increased federal deposit insurance to $250,000 per depositor from $100,000. In 2009,
Congress enacted legislation to extend the increase to $250,000 in insurable deposits per depositor
until 2013. Moreover, we have elected to participate in the Temporary Liquidity Guarantee Program
pursuant to which the FDIC will provide unlimited deposit coverage for non-interest bearing
accounts, NOW accounts and certain other designated accounts, until June&nbsp;30, 2010. Historically,
we have not used brokers to obtain deposits. We participate in the Certificate of Deposit Account
Registry Service (&#147;CDARs&#148;) that enables the institution to provide customers to access to up to $50
million in FDIC insurance on CD investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth our deposit activities for the periods indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Opening balance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">425,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">400,129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">313,270</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deposits acquired from National Bank of Vernon</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,631</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,835,906</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,766,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,373,810</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Withdrawals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,778,117</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,749,408</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,350,619</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest credited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,877</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,037</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ending balance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">489,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">425,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">400,129</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net increase (decrease)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">63,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,569</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">86,859</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Percent increase (decrease)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">27.73</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->91<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table indicates the amount of our certificates of deposit by time remaining
until maturity as of December&nbsp;31, 2009.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD nowrap align="center" colspan="4" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Maturity</B></TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>

    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>3 Months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Over 3 to 6</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Over 6 to 12</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Over 12</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>or Less</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certificates of deposit less than $100,000 </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,917</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,180</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">100,214</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certificates of deposit of $100,000 or more </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,219</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,971</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,689</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total of certificates of deposit </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">40,632</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">48,675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">33,545</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">156,903</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables set forth information, by various rate categories, regarding the
dollar balance of deposits by types of deposit for the periods indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD nowrap align="center" colspan="8" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>

    <TD nowrap align="center" colspan="8" style="border-bottom: 1px solid #000000">&nbsp;</TD>

    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transactions and savings deposits:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Noninterest-bearing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">62,997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.28</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">65,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">16.42</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings accounts<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,938</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,338</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,345</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.83</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest-bearing checking</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,931</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,773</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Money market accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135,595</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,031</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">332,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">269,873</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61.79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certificates of deposit:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less than 2.00% (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,715</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,941</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.00-3.99%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4.00-5.99%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,503</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129,217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6.00-7.99%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,708</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total certificates of deposit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156,903</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155,825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">489,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">425,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">400,129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes mortgage escrow accounts.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>At December&nbsp;31, 2009, includes $20.3&nbsp;million of certificates of deposit with rates
below 1.00%.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the amount and remaining maturities of our certificates of
deposit accounts at December&nbsp;31, 2009.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>&#060;2.00%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2.00-3.99%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>4.00-5.99%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>6.00-7.99%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certificate accounts maturing
in quarter ending:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,978</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,925</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,632</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.70</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,061</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,830</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.93</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,316</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,242</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.09</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.92</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,791</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,828</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">538</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">922</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">614</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.97</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,047</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">388</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thereafter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">569</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,914</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">106,715</TD>
    <TD><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">156,903</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Percent of total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">68.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">22.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes $20.3&nbsp;million of certificates of deposit with rates below 1.00%.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->92<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Borrowed Funds. </I></B>Our borrowings consist of term advances and repurchase agreements
borrowed under agreements with the Federal Home Loan Bank of New York. In addition we have access
to overnight advances with the FHLBNY and other correspondent banks under line of credit facilities
accessed from time to time. At December&nbsp;31, 2009, we had access to additional FHLBNY advances of
up to $109.9&nbsp;million. The following table sets forth information concerning balances and interest
rates on our borrowings at the dates and for the periods indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At and For the Years Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Overnight line of credit:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Balance at end of period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Average balance during period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,457</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Maximum outstanding at any month end </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Weighted average interest rate at end of period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Average interest cost during the year </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.43</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.95</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Term advances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Balance at end of period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">36,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">43,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Average balance during period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,945</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,608</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Maximum outstanding at any month end </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,830</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Weighted average interest rate at end of period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.46</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.86</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Average interest cost during the year </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.95</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Repurchase agreements:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Balance at end of period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Average balance during period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,041</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Maximum outstanding at any month end </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Weighted average interest rate at end of period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.39</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Average interest cost during the year </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.83</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.39</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Trust Activities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank provides trust and investment services, acts as executor or administrator
of estates and as trustee or custodian for various types of trusts. Trust services are offered
through Oneida Savings Bank&#146;s Trust Department. Services include fiduciary services for trusts and
estates, money management and custodial services. At December&nbsp;31, 2009, Oneida Savings Bank
maintained 553 trust/fiduciary accounts, with total assets of $116.8&nbsp;million under management as
compared to 555 trust/fiduciary accounts, with total assets of $105.8&nbsp;million at December&nbsp;31, 2008.
Management anticipates that in the future the Trust Department will become a more significant
component of Oneida Savings Bank&#146;s business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Limited Purpose Commercial Bank&#151;State Bank of Chittenango</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The State Bank of Chittenango is a New York chartered limited purpose commercial bank
headquartered in Chittenango, New York. Oneida Savings Bank acquired State Bank of Chittenango in
2002 and retained the municipal banking operations of the bank in a limited purpose wholly owned
subsidiary. New York State prohibits a savings bank from soliciting and servicing public funds
(deposits of counties, cities, towns, school districts, etc.). The use of a limited purpose
commercial bank subsidiary has facilitated the expansion of municipal deposit banking services
throughout the service area of Oneida Savings Bank. At December&nbsp;31, 2009, State Bank of
Chittenango held $110.6&nbsp;million in assets, consisting primarily of U.S. Government obligations and
mortgage-backed securities. The investment securities maintained at State Bank of Chittenango are
used to collateralize $86.0&nbsp;million in municipal deposits. All disclosures in this prospectus
relating to Oneida Financial Corp.&#146;s investments and deposits include the investments and deposits
that are held by The State Bank of Chittenango.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->93<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Insurance Activities&#151;Bailey &#038; Haskell Associates, Inc.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;2, 2000, Oneida Savings Bank completed the acquisition of Bailey &#038; Haskell
Associates, Inc., an insurance agency located in Central New York State. Bailey &#038; Haskell
Associates is the wholly owned insurance agency subsidiary of Oneida Savings Bank. It operates
out of its headquarters in Oneida, New York, and six other offices in New York State and one office
in South Carolina. Bailey &#038; Haskell Associates is a full-service insurance and financial services
firm with over 90 employees providing services to over 19,000 customers. The expansion into the
insurance and financial services business has enabled Oneida Savings Bank to evolve from a
traditional depository institution into a full-service financial services organization. Bailey &#038;
Haskell Associates offers personal and commercial property insurance and other risk management
products and services. Bailey &#038; Haskell Associates represents dozens of leading insurance
companies, including Travelers, CNA, Hartford, Progressive, Cincinnati, Utica National and many
others. Our opportunistic acquisition strategy has resulted in five subsequently acquired
insurance agencies in the six years following the acquisition of Bailey &#038; Haskell Associates,
including Parsons, Cote &#038; Company which was added during 2006. All of the acquired insurance
agencies were merged into Bailey &#038; Haskell Associates. The combination of acquired agencies and
organic growth has resulted in total revenue of $9.7&nbsp;million for the year ended December&nbsp;31, 2009,
an increase of 14.3% or $1.2&nbsp;million, from $8.5&nbsp;million for the year ended December&nbsp;31, 2008. All
disclosures in this prospectus relating to Oneida Financial Corp. are consolidated to include the
activities of Bailey &#038; Haskell Associates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Employee Benefit Consulting Activities&#151;Benefit Consulting Group, Inc.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;28, 2006, Oneida Savings Bank completed the acquisition of Benefit Consulting Group
L.L.C., an employee benefits consulting and retirement plan administration firm. Benefit
Consulting Group, Inc. is the wholly owned subsidiary of Oneida Savings Bank headquartered in
Oneida, New York and operates from offices in North Syracuse, New York and satellite offices in
several branch offices of Oneida Savings Bank. Benefit Consulting Group currently serves more than
700 corporate and personal clients and offers employee benefit related services that are
complementary to those provided by Oneida Savings Bank and Bailey &#038; Haskell Associates. Benefit
Consulting Group provides defined contribution and benefit plans, actuarial services, investment
management, financial planning, estate planning and human resource management services. Benefit
Consulting Group had total revenue for the year ended December&nbsp;31, 2009 of $5.7&nbsp;million, an
increase of 12.7% or $635,000 from $5.0&nbsp;million for the year ended December&nbsp;31, 2008. All
disclosures in this prospectus relating to Oneida Financial Corp. are consolidated to include the
activities of Benefit Consulting Group.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risk Management Activities&#151;Workplace Health Solutions, Inc.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Workplace Health Solutions, Inc. is the wholly owned risk management subsidiary of Oneida
Savings Bank and is headquartered in Oneida, New York and operates from offices in North Syracuse,
New York. Workplace Health Solutions was established in January&nbsp;2008 as a risk management company
with services to help mitigate and prevent work related injuries. Specifically, Workplace Health
Solutions will work with employers to develop informed hiring programs, coordinate employee
training programs and consults with and advises employers relative to workers&#146; compensation
coverage and incidents. In addition, this subsidiary develops a network of medical professionals
to evaluate injured workers and arrange for the proper treatment of and recovery from workplace
injuries all from a risk management perspective. Workplace Health Solutions was developed to
complement and refer the products and services offered by our other subsidiaries with an overall
philosophy of innovative risk management services. Workplace Health Solutions had total revenue of
$491,000 for the year ended December&nbsp;31, 2009. All disclosures in this prospectus relating to
Oneida Financial Corp. are consolidated to include the activities of Workplace Health Solutions.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->94<!-- /Folio -->
</DIV>



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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Properties</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank conducts its business through its main office located in Oneida, New
York, and 11 additional full service branch offices. The following table sets forth certain
information concerning our property and equipment at December&nbsp;31, 2009. The aggregate net book
value of our premises and equipment was $21.2&nbsp;million at December&nbsp;31, 2009. Bailey &#038; Haskell
Associates conducts its business through one owned and four leased facilities with lease
expirations not exceeding five years. Benefit Consulting Group conducts its business through one
leased facility. Workplace Health Solutions conducts its business through one leased facility.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Net Book Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Property and</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Equipment at</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Original Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Date of Lease</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Acquired</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Expiration</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Main Office:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">182 Main Street</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1889</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">2,380</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Oneida, New York 13421</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Branch Offices:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Camden Branch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1997</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">645</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">41 Harden
Boulevard<BR>Camden, New York 13316</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Canastota Branch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1999</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">702</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">104 S.
Peterboro St. <br>
Canastota, New York 13032</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cazenovia Branch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1971</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,676</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">48 Albany
Street <br>
Cazenovia, New York 13035</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hamilton Branch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1976</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">186</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">35 Broad Street <br>
Hamilton, New York 13346</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convenience Center</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1988</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,081</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">585 Main Street <br>
Oneida, New York 13421</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chittenango Branch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2005</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,780</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">519 Genesee Street <br>
Chittenango, New York 13037</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bridgeport Branch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2002</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">December 2012</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">8786 State Route 31<br>
Bridgeport, New York 13030</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Griffiss Park Branch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2005</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6,151</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">160 Brooks Road <br>
Rome, New York 13441</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vernon Branch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2007</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,125</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">5238 W. Seneca Street <br>
Vernon, New York 13476</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->95<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Net Book Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Property and</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Equipment at</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Original Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Date of Lease</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Acquired</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Expiration</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Westmoreland Branch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2007</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">193</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">4675 State Route 233<br>
Westmoreland, New York 13490</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">South Utica Branch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2007</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,069</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">2711 Genesee Street <br>
Utica, New York 13505</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Mortgage Center:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">126 Lenox Avenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1989</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">90</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Oneida, New York 13421</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operations Center:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">169 Main Street</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2001</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,333</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Oneida, New York 13421</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Bailey &#038; Haskell Associates, Inc.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2000</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Various</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">468</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Various locations<br>
(Headquarters) <br>
169 Main Street <br>
Oneida, New York 13421</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Bailey &#038; Haskell Associates, Inc.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2006</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,137</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Benefit Consulting Group Inc.
Workplace Health Solutions</B><br>
5232 Witz Drive<br>
North Syracuse, New York 13212</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Bailey &#038; Haskell Associates, Inc.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1999</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">May 2010</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N/M</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">8246 Seneca Turnpike <br>
Clinton, NY 13323</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Bailey &#038; Haskell Associates, Inc.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2009</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Monthly</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N/M</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">111 Clebourne Street <br>
Suite&nbsp;230A <br>
Fort Mills, SC 29715</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Other Bank Property:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">102 S. Peterboro Street</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2000</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">162</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Canastota, New York 13032</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6 Cambridge Avenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2006</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">83</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Morrisville, New York 13408</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Legal Proceedings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Much of Oneida Savings Bank&#146;s market area is included in the 250,000-acre land claim of the
Oneida Indian Nation (&#147;Oneidas&#148;). The land claim area is held primarily by private persons. Over
16&nbsp;years ago, the United States Supreme Court ruled in favor of the Oneidas in a lawsuit which
management believes was intended to encourage the State of New York to negotiate an equitable
settlement in a land dispute that has existed for 200&nbsp;years.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->96<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;1998, the United States Justice Department intervened in the action on behalf of the
Oneidas against Madison County and Oneida County in New York State. In September&nbsp;1998, a United
States District Court removed a stay of litigation, having been in place since the late 1980&#146;s
pending settlement negotiations. In December&nbsp;1998, both the Oneidas and the United States Justice
Department filed motions to amend the long outstanding claim against the State of New York. The
motions attempt to include in the claim, various named and 20,000 unnamed additional defendants,
who own real property in parts of Madison and Oneida Counties, thereby including the additional
defendants in the original suit. The U.S. District Court granted the motions to add as a defendant
the State of New York, but denied the motions to add the private landowners. Neither Oneida
Savings Bank nor Oneida Financial Corp. is a named defendant in the motion. The Court further
rejected as not being viable the remedies of ejectment and/or of monetary damages against private
landowners. In January&nbsp;2001, amended complaints were served by the Oneidas and the United States,
which seek to eject the Counties of Madison and Oneida from lands owned by the counties, and the
Oneidas also seek a declaration that they have the right to possess all land within the land claim
area. In June&nbsp;2001, the Court determined that certain land purchased by the Oneidas in 1997 and
1998 are exempt from real estate taxes, accepting the Oneidas argument that the acquired parcels
lie within the boundaries of the &#147;reservation&#148; established in 1794 by the Federal Government. The
State of New York, Counties of Madison and Oneida and the City of Sherrill appealed the Courts
decision with a court date in March&nbsp;2002. In February&nbsp;2002, a joint statement was issued by the
Oneidas, State of New York and the Counties of Madison and Oneida, indicating that the framework
for a settlement had been agreed upon, subject to the approval by the State legislature and the
Federal Government. The Oneidas of Wisconsin and the Stockbridge-Munsee Bank of Mohican Indians
have commenced separate actions in the United States District Court for the Northern District of
New York to dispute and interrupt any settlement pending. In July&nbsp;2003, the United States Court of
Appeals affirmed the decision of the lower court against the City of Sherrill but appeals continue
relative to the decision against the Counties of Madison and Oneida. In January&nbsp;2005 the United
States Supreme Court heard the appeal brought forward by the City of Sherrill against the Oneidas
arguing that the acquisition of real property by the Oneidas within the land claim area does not
return the property to sovereign status. Therefore, the City of Sherrill contends that the
property is subject to the payment of real property taxes or reverts to the ownership of the taxing
authority if assessed property taxes are not paid. The United States Supreme Court ruled in favor
of the City of Sherrill in June&nbsp;2005. The Oneida Indian Nation is attempting to put all land
acquired to date in a federal land trust. All parties involved continue to pursue all legal
options available.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To date neither the original claim nor the motion to amend has had an adverse impact on the
local economy or real property values. In addition, title insurance companies continue to
underwrite policies in the land claim area with no change in premiums or underwriting standards.
Oneida Savings Bank requires title insurance on all residential real estate loans, excluding home
equity loans. Both the State of New York and the Oneidas have indicated in their respective
communications that individual landowners will not be adversely affected by the ongoing litigation.
Oneida Financial Corp. continues to monitor the situation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We and our subsidiaries are subject to various legal actions arising in the normal course of
business. In the opinion of management, the resolution of these legal actions is not expected to
have a material adverse effect on our financial position or results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Subsidiary Activities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial Corp.&#146;s sole direct subsidiary is Oneida Savings Bank. Oneida Savings Bank
has five wholly owned subsidiaries&#151;Oneida Preferred Funding Corp., Bailey &#038; Haskell Associates,
Inc., The State Bank of Chittenango, Workplace Health Solutions, Inc. and Benefit Consulting Group,
Inc. For financial reporting purposes, all of these companies are included in consolidated
financial statements of
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Oneida Financial Corp. The activities of the various subsidiaries are discussed elsewhere in
this prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal regulations require insured institutions to provide 30&nbsp;days advance notice to the
Federal Deposit Insurance Corporation before establishing or acquiring a subsidiary or conducting a
new activity in a subsidiary. The insured institution must also provide the Federal Deposit
Insurance Corporation such information as may be required by applicable regulations and must
conduct the activity in accordance with the rules and orders of the Federal Deposit Insurance
Corporation. In addition to other enforcement and supervision powers, the Federal Deposit
Insurance Corporation may determine after notice and opportunity for a hearing that the
continuation of a savings bank&#146;s ownership of or relation to a subsidiary constitutes a serious
risk to the safety, soundness or stability of the savings bank, or is inconsistent with the
purposes of federal banking laws. Upon the making of such a determination, the Federal Deposit
Insurance Corporation may order the savings bank to divest the subsidiary or take other actions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Oneida Savings Bank Charitable Foundation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Oneida Savings Bank Charitable Foundation, a nonprofit charitable foundation, was
established in December&nbsp;1998 by members of Oneida Savings Bank. The Foundation provides funds to
eligible nonprofit organizations to help them carry out unique, innovative projects in specific
fields of interest. The Foundation&#146;s goal is to fund projects that will enhance the quality of life
in the communities served by Oneida Savings Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, the Foundation had approximately $1.4&nbsp;million in assets, consisting
primarily of 153,464 shares of our common stock, and annually distributes 5% percent of its net
asset value in grants to the local community. The grants and gifts provided by the Foundation are
generally for charitable causes, and to enhance the quality of life and housing in Oneida Savings
Bank&#146;s markets. Oneida Savings Bank indirectly benefits from the favorable publicity and elevated
public standing generated through the Foundation&#146;s gifts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Personnel</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2009, we had 309 full-time employees and 15 part-time employees. Our
employees are not represented by any collective bargaining group. Management believes that we have
good relations with our employees.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="164"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUPERVISION AND REGULATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank is a New York chartered savings bank and our deposit accounts are insured
up to applicable limits by the Federal Deposit Insurance Corporation under the Deposit Insurance
Fund. Oneida Savings Bank is subject to extensive regulation by the New York State Banking
Department (the &#147;Department&#148;) as its chartering agency, and by the Federal Deposit Insurance
Corporation, as the insurer of its deposit accounts. Oneida Savings Bank must file reports with
the Department and the Federal Deposit Insurance Corporation concerning its activities and
financial condition in addition to obtaining regulatory approvals prior to entering into certain
transactions, including acquisitions of other financial institutions. Oneida Savings Bank is
examined periodically by the Department and the Federal Deposit Insurance Corporation to test
Oneida Savings Bank&#146;s compliance with various laws and regulations. This regulation and
supervision, as well as federal and state law, establishes a comprehensive framework of activities
in which Oneida Savings Bank may engage and is intended primarily for the protection of the Federal
Deposit Insurance Corporation insurance fund and depositors. The regulatory structure also gives
the regulatory authorities extensive discretion in connection with their supervisory and
enforcement activities and with their examination policies, including policies with respect to the
classification of assets and the establishment of adequate loan loss reserves for regulatory
purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any change in these laws or regulations, whether by the Department or the Federal Deposit
Insurance Corporation, could have a material adverse impact on Oneida Financial Corp. and Oneida
Savings Bank and their operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a savings and loan holding company following the conversion, Oneida Financial-New will be
required to comply with the rules and regulations of the Office of Thrift Supervision, and will be
required to file certain reports with and will be subject to examination by the Office of Thrift
Supervision. Oneida Financial-New also will be subject to the rules and regulations of the
Securities and Exchange Commission under the federal securities laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set forth below is a brief description of certain regulatory requirements that are or will be
applicable to Oneida Financial-New and Oneida Savings Bank. The description below is limited to
certain material aspects of the statutes and regulations addressed, and is not intended to be a
complete description of such statutes and regulations and their effects on Oneida Financial-New and
Oneida Savings Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Proposed Federal Legislation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legislation has been introduced in the United States Senate and House of Representatives that
would implement sweeping changes to the current bank regulatory structure described in this
section. The House Bill (H.R. 4173) would eliminate one of our federal regulators, the Office of
Thrift Supervision, by merging the Office of Thrift Supervision into the Comptroller of the
Currency (the primary federal regulator for national banks). The proposed legislation would
authorize the Comptroller of the Currency to charter mutual and stock savings banks and mutual
holding companies, which would be under the supervision of the Division of Thrift Supervision of
the Comptroller of the Currency. The proposed legislation would also establish a Financial
Services Oversight Council and grant the Board of Governors of the Federal Reserve System exclusive
authority to regulate all bank and thrift holding companies. If the proposed legislation is
enacted, Oneida Financial-New would become a holding company subject to the regulation and
supervision of the Federal Reserve Board as opposed to the Office of Thrift Supervision. The
Federal Reserve Board&#146;s holding company regulations differ in a number of areas from those of the
Office of Thrift Supervision including holding company capital requirements.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>New York Bank Regulation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank derives its lending, investment, branching and other authority primarily
from the applicable provisions of New York State Banking Law and the regulations of the Department,
as limited by federal laws and regulations. Under these laws and regulations, savings banks,
including Oneida Savings Bank, may invest in real estate mortgages, consumer and commercial loans,
certain types of debt securities, including certain corporate debt securities and obligations of
federal, state and local governments and agencies, certain types of corporate equity securities and
certain other assets. Under the statutory authority for investing in equity securities, a savings
bank may invest up to 7.5% of its assets in corporate stock, with an overall limit of 5% of its
assets invested in common stock. Investment in the stock of a single corporation is limited to the
lesser of 2% of the outstanding stock of such corporation or 1% of the savings bank&#146;s assets,
except as set forth below. Such equity securities must meet certain earnings ratios and other
tests of financial performance. A savings bank&#146;s lending powers are not subject to percentage of
assets limitations, although there are limits applicable to single borrowers. A savings bank may
also, pursuant to the &#147;leeway&#148; power, make investments not otherwise permitted under the New York
State Banking Law. This power permits investments in otherwise impermissible investments of up to
1% of assets in any single investment, subject to certain restrictions and to an aggregate limit
for all such investments of up to 5% of assets. Additionally, in lieu of investing in such
securities in accordance with and reliance upon the specific investment authority set forth in the
New York State Banking Law, savings banks are authorized to elect to invest under a &#147;prudent
person&#148; standard in a wider range of investment securities as compared to the types of investments
permissible under such specific investment authority. However, in the event a savings bank elects
to utilize the &#147;prudent person&#148; standard, it will be unable to avail itself of the other provisions
of the New York State Banking Law and regulations which set forth specific investment authority.
Oneida Savings Bank has not elected to conduct its investment activities under the &#147;prudent person&#148;
standard. A savings bank may also exercise trust powers upon approval of the Department. See
"&#151;Activities and Investments of Insured Stated-Chartered Banks Acting as Principal.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York State chartered savings banks may also invest in subsidiaries under their service
corporation investment authority. A savings bank may use this power to invest in corporations that
engage in various activities authorized for savings banks, plus any additional activities that may
be authorized by the Banking Board. Investment by a savings bank in the stock, capital notes and
debentures of its service corporations is limited to 3% of the bank&#146;s assets, and such investments,
together with the bank&#146;s loans to its service corporations, may not exceed 10% of the savings
bank&#146;s assets. Furthermore, New York banking regulations impose requirements on loans which a bank
may make to its executive officers and directors and to certain corporations or partnerships in
which such persons have equity interests. These requirements include that (i)&nbsp;certain loans must
be approved in advance by a majority of the entire board of directors and the interested party must
abstain from participating directly or indirectly in voting on such loan, (ii)&nbsp;the loan must be on
terms that are not more favorable than those offered to unaffiliated third parties, and (iii)&nbsp;the
loan must not involve more than a normal risk of repayment or present other unfavorable features.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the New York State Banking Law, the Superintendent may issue an order to a New York
State chartered banking institution to appear and explain an apparent violation of law, to
discontinue unauthorized or unsafe practices and to keep prescribed books and accounts. Upon a
finding by the Department that any director, trustee or officer of any banking organization has
violated any law, or has continued unauthorized or unsafe practices in conducting the business of
the banking organization after having been notified by the Superintendent to discontinue such
practices, such director, trustee or officer may be removed from office after notice and an
opportunity to be heard. Oneida Savings Bank does not know of any past or current practice,
condition or violation that may lead to any proceeding by the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Superintendent or the Department against Oneida Savings Bank or any of its directors, trustees or
officers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Insurance of Deposit Accounts</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank is a member of the Deposit Insurance Fund, which is administered by the
Federal Deposit Insurance Corporation. Deposit accounts at Oneida Savings Bank are insured by the
Federal Deposit Insurance Corporation, generally up to a maximum of $100,000 for each separately
insured depositor and up to a maximum of $250,000 for self-directed retirement accounts. However,
the Emergency Economic Stabilization Act of 2008 increased the deposit insurance available on all
deposit accounts to $250,000, effective until December&nbsp;31, 2013. In addition, certain
noninterest-bearing transaction accounts maintained with financial institutions participating in
the Federal Deposit Insurance Corporation&#146;s Temporary Liquidity Guarantee Program are fully insured
regardless of the dollar amount until June&nbsp;30, 2010. Oneida Savings Bank has opted to participate
in the Federal Deposit Insurance Corporation&#146;s Temporary Liquidity Guarantee Program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Federal Deposit Insurance Corporation imposes an assessment against institutions for
deposit insurance, which is based on the risk category of the institution. Under the final
risk-based assessment rule which was issued on February27, 2009, the Federal Deposit Insurance
Corporation first establishes an institution&#146;s initial base assessment rate for determining deposit
insurance premiums. This initial base assessment rate ranges, depending on the risk category of
the institution, from 12 to 45 basis points. The Federal Deposit Insurance Corporation then
adjusts the initial base assessment (higher or lower) to obtain the total base assessment rate.
The adjustments to the initial base assessment rate are based upon an institution&#146;s levels of
unsecured debt, secured liabilities, and brokered deposits. The total base assessment rate ranges
from 7 to 77.5 basis points of the institution&#146;s deposits. Additionally, on May&nbsp;22, 2009, the
Federal Deposit Insurance Corporation issued a final rule that imposed a special 5 basis points
assessment on each FDIC-insured depository institution&#146;s assets, minus its Tier 1 capital on June
30, 2009, which was collected on September&nbsp;30, 2009. The special assessment was capped at 10 basis
points of an institution&#146;s domestic deposits. Future special assessments could also be assessed.
The Bank&#146;s Federal Deposit Insurance Corporation premium assessment for the second quarter of 2009
and the year ended December&nbsp;31, 2009 increased by approximately $631,000 and $970,000,
respectively, including the special assessment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Federal Deposit Insurance Corporation has adopted a final rule pursuant to which all
insured depository institutions were required to prepay their estimated assessments for the fourth
quarter of 2009, and for all of 2010, 2011 and 2012. Under the rule, this pre-payment was made on
December&nbsp;30, 2009. The assessment rate for the fourth quarter of 2009 and for 2010 is based on
each institution&#146;s total base assessment rate for the third quarter of 2009, modified to assume
that the assessment rate in effect on September&nbsp;30, 2009 had been in effect for the entire third
quarter, and the assessment rate for 2011 and 2012 will be equal to the modified third quarter
assessment rate plus an additional 3 basis points. In addition, each institution&#146;s base assessment
rate for each period will be calculated using its third quarter assessment base, adjusted quarterly
for an estimated 5% annual growth rate in the assessment base through the end of 2012. Our
prepayment amount was approximately $2.4&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance of deposits may be terminated by the Federal Deposit Insurance Corporation upon a
finding that an institution has engaged in unsafe or unsound practices, is in an unsafe or unsound
condition to continue operations or has violated any applicable law, regulation, rule, order or
condition imposed by the Federal Deposit Insurance Corporation. We do not currently know of any
practice, condition or violation that may lead to termination of our deposit insurance.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the Federal Deposit Insurance Corporation assessments, the Financing
Corporation (&#147;FICO&#148;) is authorized to impose and collect, with the approval of the Federal Deposit
Insurance Corporation, assessments for anticipated payments, issuance costs and custodial fees on
bonds issued by the FICO in the 1980s to recapitalize the former Federal Savings and Loan Insurance
Corporation. The bonds issued by the FICO are due to mature in 2017 through 2019. For the quarter
ended December&nbsp;31, 2009, the annualized FICO assessment was equal to 1.04 basis points for each
$100 in domestic deposits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Temporary Liquidity Guarantee Program</I></B><I>. </I>On October&nbsp;14, 2008, the Federal Deposit Insurance
Corporation announced a new program &#151; the Temporary Liquidity Guarantee Program, which guarantees
newly issued senior unsecured debt of a participating organization, up to certain limits
established for each institution, issued between October&nbsp;14, 2008 and June&nbsp;30, 2009. The Federal
Deposit Insurance Corporation will pay the unpaid principal and interest on Federal Deposit
Insurance Corporation-guaranteed debt instruments upon the uncured failure of the participating
entity to make timely payments of principal or interest in accordance with the terms of the
instrument. The guarantee will remain in effect until June&nbsp;30, 2012. In return for the Federal
Deposit Insurance Corporation&#146;s guarantee, participating institutions will pay the Federal Deposit
Insurance Corporation a fee based on the amount and maturity of the debt. We opted not to
participate in this part of the Temporary Liquidity Guarantee Program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The other part of the Temporary Liquidity Guarantee Program provides full federal deposit
insurance coverage for noninterest-bearing transaction deposit accounts, regardless of dollar
amount, until December&nbsp;31, 2009. An annualized 10 basis point assessment on balances in
noninterest-bearing transaction accounts that exceed the existing deposit insurance limit of
$250,000 will be assessed on a quarterly basis to insured depository institutions that have not
opted out of this component of the Temporary Liquidity Guarantee Program. We opted to participate
in this component of the Temporary Liquidity Guarantee Program. On August&nbsp;26, 2009, the Federal
Deposit Insurance Corporation extended the program until June&nbsp;30, 2010. Institutions had until
November&nbsp;2, 2009 to decide whether to opt out of the extension which became effective on January&nbsp;1,
2010. An annualized assessment rate between 15 and 25 basis points on balances in
noninterest-bearing transaction accounts that exceed the existing deposit insurance limit of
$250,000 is assessed depending on the institution&#146;s risk category. We opted into the extension.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>U.S. Treasury&#146;s Troubled Asset Relief Program Capital Purchase Program</I></B><I>. </I>The Emergency
Economic Stabilization Act of 2008, which was enacted on October&nbsp;3, 2008, provides the U.S.
Secretary of the Treasury with broad authority to implement certain actions to help restore
stability and liquidity to U.S. financial markets. One of the programs resulting from the
legislation is the Troubled Asset Relief Program Capital Purchase Program (&#147;CPP&#148;), which provides
direct equity investment by the U.S. Treasury Department in perpetual preferred stock of qualified
financial institutions. The program is voluntary and requires an institution to comply with a
number of restrictions and provisions, including limits on executive compensation, stock
redemptions and declaration of dividends. The CPP provides for a minimum investment of one percent
of total risk-weighted assets and a maximum investment equal to the lesser of three percent of
total risk-weighted assets or $25&nbsp;billion. Participation in the program is not automatic and is
subject to approval by the U.S. Treasury Department. We opted not to participate in the CPP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Regulatory Capital Requirements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FDIC has adopted risk-based capital guidelines that are applicable to Oneida Savings Bank.
The guidelines establish a systematic analytical framework that makes regulatory capital
requirements more sensitive to differences in risk profiles among banking organizations. Oneida
Savings Bank is required to maintain certain levels of regulatory capital in relation to regulatory
risk-weighted assets. The
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ratio of such regulatory capital to regulatory risk-weighted assets is referred to as Oneida
Savings Bank&#146;s &#147;risk-based capital ratio.&#148; Risk-based capital ratios are determined by allocating
assets and specified off-balance sheet items to four risk-weighted categories ranging from 0% to
100%, with higher levels of capital being required for the categories perceived as representing
greater risk.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These guidelines divide a savings bank&#146;s capital into two tiers. The first tier (&#147;Tier I&#148;)
includes common equity, retained earnings, certain non-cumulative perpetual preferred stock
(excluding auction rate issues) and minority interests in equity accounts of consolidated
subsidiaries, less goodwill and other intangible assets (except mortgage servicing rights and
purchased credit card relationships subject to certain limitations). Supplementary (&#147;Tier II&#148;)
capital includes, among other items, cumulative perpetual and long-term limited-life preferred
stock, mandatory convertible securities, certain hybrid capital instruments, term subordinated debt
and the allowance for loan and lease losses, subject to certain limitations, less required
deductions. Savings banks are required to maintain a total risk-based capital ratio of at least 8%,
of which at least 4% must be Tier I capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the FDIC has established regulations prescribing a minimum Tier I leverage ratio
(Tier I capital to adjusted total assets as specified in the regulations). These regulations
provide for a minimum Tier I leverage ratio of 3% for banks that meet certain specified criteria,
including that they have the highest examination rating and are not experiencing or anticipating
significant growth. All other banks are required to maintain a Tier I leverage ratio of 3% plus an
additional cushion of at least 100 to 200 basis points. The FDIC may, however, set higher leverage
and risk-based capital requirements on individual institutions when particular circumstances
warrant. Savings banks experiencing or anticipating significant growth are expected to maintain
capital ratios, including tangible capital positions, well above the minimum levels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Limitations on Dividends and Other Capital Distributions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FDIC has the authority to use its enforcement powers to prohibit a savings bank from
paying dividends if, in its opinion, the payment of dividends would constitute an unsafe or unsound
practice. Federal law also prohibits the payment of dividends by a bank that will result in the
bank failing to meet its applicable capital requirements on a pro forma basis. New York law also
restricts Oneida Savings Bank from declaring a dividend which would reduce its capital below (i)
the amount required to be maintained under state law and regulation or (ii)&nbsp;the amount of Oneida
Savings Bank&#146;s liquidation account established in connection with the Reorganization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Prompt Corrective Action</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The federal banking agencies have promulgated regulations to implement the system of prompt
corrective action required by federal law. Under the regulations, a bank shall be deemed to be (i)
&#147;well capitalized&#148; if it has total risk-based capital of 10.0% or more, has a Tier I risk-based
capital ratio of 6.0% or more, has a Tier I leverage capital ratio of 5.0% or more and is not
subject to any written capital order or directive; (ii) &#147;adequately capitalized&#148; if it has a total
risk-based capital ratio of 8.0% or more, a Tier I risk-based capital ratio of 4.0% or more and a
Tier I leverage capital ratio of 4.0% or more (3.0% under certain circumstances) and does not meet
the definition of &#147;well capitalized&#148;; (iii) &#147;undercapitalized&#148; if it has a total risk-based capital
ratio that is less than 8.0%, a Tier I risk-based capital ratio that is less than 4.0% or a Tier I
leverage capital ratio that is less than 4.0% (3.0% under certain circumstances); (iv)
&#147;significantly undercapitalized&#148; if it has a total risk-based capital ratio that is less than 6.0%,
a Tier I risk-based capital ratio that is less than 3.0% or a Tier I leverage capital ratio that is
less than 3.0%; and (v) &#147;critically undercapitalized&#148; if it has a ratio of tangible equity to total
assets that is equal to or less than 2.0%. Federal law and regulations also specify circumstances
under which a federal banking agency may reclassify a well capitalized institution as adequately
capitalized and may require an adequately
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">capitalized institution to comply with supervisory actions as if it were in the next lower category
(except that the FDIC may not reclassify a significantly undercapitalized institution as critically
undercapitalized).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on the foregoing, Oneida Savings Bank is currently classified as a well capitalized
savings institution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Activities and Investments of Insured State-Chartered Banks Acting as Principal</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal law generally limits the activities and equity investments of FDIC-insured
state-chartered banks to those that are permissible for national banks, notwithstanding state laws.
Under federal regulations dealing with equity investments, an insured state bank generally may
not, directly or indirectly, acquire or retain any equity investment of a type, or in an amount,
that is not permissible for a national bank. An insured state bank is not prohibited from, among
other things, (i)&nbsp;acquiring or retaining a majority interest in a subsidiary, the activities of
which are limited to those permissible for a subsidiary of a national bank; (ii)&nbsp;investing as a
limited partner in a partnership the sole purpose of which is the direct or indirect investment in
the acquisition, rehabilitation, or new construction of a qualified housing project, provided that
such limited partnership investments may not exceed 2% of the bank&#146;s total assets; (iii)&nbsp;acquiring
up to 10% of the voting stock of a company that solely provides or reinsures directors&#146;, trustees&#146;,
and officers&#146; liability insurance coverage or bankers&#146; blanket bond group insurance coverage for
insured depository institutions; and (iv)&nbsp;acquiring or retaining the voting shares of a depository
institution if certain requirements are met.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal law and FDIC regulations permit certain exceptions to the foregoing limitation. For
example, certain state-chartered banks, such as Oneida Savings Bank, may continue to invest in
common or preferred stock listed on a National Securities Exchange, and in the shares of an
investment company registered under the Investment Company Act of 1940, as amended. As of December
31, 2009, Oneida Savings Bank had $2.7&nbsp;million of securities pursuant to this exception. As a
savings bank, Oneida Savings Bank may also continue to sell savings bank life insurance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Transactions With Affiliates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under current federal law, transactions between depository institutions and their affiliates
are governed by Sections&nbsp;23A and 23B of the Federal Reserve Act and its implementing regulations.
An affiliate of a savings bank is any company or entity that controls, is controlled by, or is
under common control with the savings bank, other than a subsidiary of the savings bank. In a
holding company context, at a minimum, the parent holding company of a savings bank and any
companies which are controlled by such parent holding company are affiliates of the savings bank.
Generally, Section&nbsp;23A limits the extent to which the savings bank or its subsidiaries may engage
in &#147;covered transactions&#148; with any one affiliate to an amount equal to 10% of such savings bank&#146;s
capital stock and surplus and contains an aggregate limit on all such transactions with all
affiliates to an amount equal to 20% of such capital stock and surplus. The term &#147;covered
transaction&#148; includes the making of loans or other extensions of credit to an affiliate; the
purchase of assets from an affiliate, the purchase of, or an investment in, the securities of an
affiliate; the acceptance of securities of an affiliate as collateral for a loan or extension of
credit to any person; or issuance of a guarantee, acceptance, or letter of credit on behalf of an
affiliate. Section&nbsp;23A also establishes specific collateral requirements for loans or extensions of
credit to, or guarantees, acceptances on letters of credit issued on behalf of an affiliate.
Section&nbsp;23B requires that covered transactions, and a broad list of other specified transactions,
be on terms substantially the same, or no less favorable, to the savings bank or its subsidiary as
similar transactions with nonaffiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further, the Federal Reserve Act and its implementing regulation restricts a savings bank with
respect to loans to directors, executive officers, principal stockholders, and their related
interests. Under
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">these regulations, loans to directors, executive officers and stockholders who control, directly or
indirectly, 10% or more of voting securities of a savings bank and certain related interests of any
of the foregoing, may not exceed, together with all other outstanding loans to such persons and
affiliated entities, the savings bank&#146;s total capital and surplus. In addition, federal law also
prohibits loans above amounts prescribed by the appropriate federal banking agency to directors,
executive officers, and stockholders who control 10% or more of voting securities of a stock
savings bank, and their respective related interests, unless such loan is approved in advance by a
majority of the disinterested directors on the board of directors of the savings bank. Any
&#147;interested&#148; director may not participate in the voting. The loan amount (which includes all other
outstanding loans to such person) as to which such prior board of director approval is required, is
the greater of $25,000 or 5% of capital and surplus or any loans over $500,000. Further, loans to
directors, executive officers and principal stockholders must generally be made on terms
substantially the same as offered in comparable transactions to other persons. Additional
limitations are also imposed on loans to executive officers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Community Reinvestment Regulation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Community Reinvestment Act, as amended (the &#147;CRA&#148;), and its implementing
regulations, a savings bank has a continuing and affirmative obligation, consistent with its safe
and sound operation, to help meet the credit needs of its entire community, including low and
moderate income neighborhoods. The CRA does not establish specific lending requirements or
programs for financial institutions nor does it limit an institution&#146;s discretion to develop the
types of products and services that it believes are best suited to its particular community,
consistent with the CRA. The CRA requires the FDIC, in connection with its examination of a
savings institution, to assess the institution&#146;s record of meeting the credit needs of its
community and to take such record into account in its evaluation of certain applications by such
institution. The CRA requires the FDIC to provide a written evaluation of an institution&#146;s CRA
performance utilizing a four-tiered descriptive rating system. Oneida Savings Bank&#146;s latest CRA
rating was &#147;satisfactory.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>New York State Community Reinvestment Regulation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank is also subject to provisions of the New York State Banking Law which
imposes continuing and affirmative obligations upon banking institutions organized in New York
State to serve the credit needs of its local community (&#147;NYCRA&#148;) which are substantially similar to
those imposed by the CRA. Pursuant to the NYCRA, a bank must file an annual NYCRA report and
copies of all federal CRA reports with the Department. The NYCRA requires the Department to make a
biennial written assessment of a bank&#146;s compliance with the NYCRA, utilizing a four-tiered rating
system and make such assessment available to the public. The NYCRA also requires the
Superintendent to consider a bank&#146;s NYCRA rating when reviewing a bank&#146;s application to engage in
certain transactions, including mergers, asset purchases and the establishment of branch offices or
automated teller machines, and provides that such assessment may serve as a basis for the denial of
any such application. Oneida Savings Bank&#146;s NYCRA rating as of its latest examination was
&#147;outstanding.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Home Loan Bank System</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank is a member of the FHLB of New York, which is one of 12 regional FHLBs,
that administers the home financing credit function of savings institutions. Each FHLB serves as a
reserve or central bank for its members within its assigned region. It is funded primarily from
proceeds derived from the sale of consolidated obligations of the FHLB System. It makes loans to
members (<I>i.e.</I>, advances) in accordance with policies and procedures established by the board of
directors of the FHLB. These policies and procedures are subject to the regulation and oversight
of the Federal Housing Finance Board. All advances from the FHLB are required to be fully secured
by sufficient collateral as
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">determined by the FHLB. In addition, all long-term advances are required to provide funds for
residential home financing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a member, Oneida Savings Bank is required to purchase and maintain stock in the FHLB of New
York. As of December&nbsp;31, 2009, Oneida Savings Bank had $2.7&nbsp;million of FHLB stock. The dividend
yield from FHLB stock was 5.6% at December&nbsp;31, 2009. No assurance can be given that the FHLB will
pay any dividends in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under federal law, the FHLBs are required to provide funds for the resolution of troubled
savings institutions and to contribute to low and moderately priced housing programs through direct
loans or interest subsidies on advances targeted for community investment and low- and
moderate-income housing projects. These contributions have affected adversely the level of FHLB
dividends paid and could continue to do so in the future. These contributions could also have an
adverse effect on the value of FHLB stock in the future. A reduction in value of Oneida Savings
Bank&#146;s FHLB stock may result in a corresponding reduction in Oneida Savings Bank&#146;s capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Holding Company Regulation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General</I></B><B>. </B>Federal law allows a state savings bank, such as Oneida Savings Bank, that qualifies
as a &#147;Qualified Thrift Lender,&#148; as discussed below, to elect to be treated as a savings association
for purposes of the savings and loan holding company provisions of the Home Owners&#146; Loan Act of
1933, as amended. Such election results in its holding company being regulated as a savings and
loan holding company by the Office of Thrift Supervision rather than as a bank holding company by
the Federal Reserve Board. In 2001, Oneida Financial Corp. and Oneida Financial, MHC made such
election by converting from a Delaware corporation and a New York mutual holding company to a
Federal corporation and Federal mutual holding company, respectively. In connection with the
conversion, Oneida Financial-New is making a similar election. Therefore, upon completion of the
conversion, Oneida Financial-New will be a savings and loan holding company within the meaning of
the Home Owners&#146; Loan Act. As such, Oneida Financial-New will be registered with the Office of
Thrift Supervision and will be subject to Office of Thrift Supervision regulations, examinations,
supervision and reporting requirements. In addition, the Office of Thrift Supervision will have
enforcement authority over Oneida Financial-New and any non-savings institution subsidiary of
Oneida Financial-New. Among other things, this authority permits the Office of Thrift Supervision
to restrict or prohibit activities that are determined to be a serious risk to the subsidiary
savings institution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Permissible Activities. </I></B>Under present law, the business activities of Oneida Financial-New
will be generally limited to those activities permissible for financial holding companies under
Section 4(k) of the Bank Holding Company Act of 1956, as amended, or for multiple savings and loan
holding companies. A financial holding company may engage in activities that are financial in
nature, including underwriting equity securities and insurance as well as activities that are
incidental to financial activities or complementary to a financial activity. A multiple savings
and loan holding company is generally limited to activities permissible for bank holding companies
under Section&nbsp;4(c)(8) of the Bank Holding Company Act, subject to the prior approval of the Office
of Thrift Supervision, and certain additional activities authorized by Office of Thrift Supervision
regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal law prohibits a savings and loan holding company, including Oneida Financial-New,
directly or indirectly, or through one or more subsidiaries, from acquiring more than 5% of another
savings institution or holding company thereof, without prior written approval of the Office of
Thrift Supervision. It also prohibits the acquisition or retention of, with certain exceptions,
more than 5% of a non-subsidiary company engaged in activities that are not closely related to
banking or financial in nature, or acquiring or retaining control of an institution that is not
federally insured. In evaluating applications
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">by holding companies to acquire savings institutions, the Office of Thrift Supervision must
consider the financial and managerial resources, future prospects of the company and institution
involved, the effect of the acquisition on the risk to the federal deposit insurance fund, the
convenience and needs of the community and competitive factors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Office of Thrift Supervision is prohibited from approving any acquisition that would
result in a multiple savings and loan holding company controlling savings institutions in more than
one state, subject to two exceptions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the approval of interstate supervisory acquisitions by savings and loan holding
companies; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the acquisition of a savings institution in another state if the laws of the
state of the target savings institution specifically permit such acquisition.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The states vary in the extent to which they permit interstate savings and loan holding company
acquisitions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Qualified Thrift Lender Test</I></B><B>. </B>To be regulated as a savings and loan holding company by the
Office of Thrift Supervision (rather than as a bank holding company by the Federal Reserve Board),
Oneida Savings Bank must qualify as a Qualified Thrift Lender. To qualify as a Qualified Thrift
Lender, Oneida Savings Bank must be a &#147;domestic building and loan association,&#148; as defined in the
Internal Revenue Code, or comply with the Qualified Thrift Lender test under Office of Thrift
Supervision regulations. Under the Qualified Thrift Lender test, a savings institution is required
to maintain at least 65% of its &#147;portfolio assets&#148; (total assets less: (1)&nbsp;specified liquid assets
up to 20% of total assets; (2)&nbsp;intangibles, including goodwill; and (3)&nbsp;the value of property used
to conduct business) in certain &#147;qualified thrift investments&#148; (primarily residential mortgages and
related investments, including certain mortgage-backed and related securities) in at least nine
months out of each 12-month period. As of December&nbsp;31, 2009, Oneida Savings Bank met the Qualified
Thrift Lender test.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>New York State Bank Holding Company Regulation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the federal regulation, a holding company controlling a state chartered savings
bank organized or doing business in New York State also may be subject to regulation under the New
York State Banking Law. The term &#147;bank holding company,&#148; for the purposes of the New York State
Banking Law, is defined generally to include any person, company or trust that directly or
indirectly either controls the election of a majority of the directors or owns, controls or holds
with power to vote more than 10% of the voting stock of a bank holding company or, if the company
is a banking institution, another banking institution, or 10% or more of the voting stock of each
of two or more banking institutions. In general, a bank holding company controlling, directly or
indirectly, only one banking institution will not be deemed to be a bank holding company for the
purposes of the New York State Banking Law. Under New York State Banking Law, the prior approval
of the Banking Board is required before: (1)&nbsp;any action is taken that causes any company to become
a bank holding company; (2)&nbsp;any action is taken that causes any banking institution to become or be
merged or consolidated with a subsidiary of a bank holding company; (3)&nbsp;any bank holding company
acquires direct or indirect ownership or control of more than 5% of the voting stock of a banking
institution; (4)&nbsp;any bank holding company or subsidiary thereof acquires all or substantially all
of the assets of a banking institution; or (5)&nbsp;any action is taken that causes any bank holding
company to merge or consolidate with another bank holding company. Additionally, certain
restrictions apply to New York State bank holding companies regarding the acquisition of banking
institutions, which have been chartered five years or less and are located in smaller communities.
Officers, directors and employees of New York State bank holding companies are subject to
limitations
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">regarding their affiliation with securities underwriting or brokerage firms and other bank
holding companies and limitations regarding loans obtained from its subsidiaries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank holding companies that wish to engage in expanded activities but do not wish to become
financial holding companies may elect to establish &#147;financial subsidiaries,&#148; which are subsidiaries
of national banks with expanded powers. The Act permits financial subsidiaries to engage in the
same types of activities permissible for nonbank subsidiaries of financial holding companies, with
the exception of merchant banking, insurance underwriting and real estate investment and
development. Merchant banking may be permitted after a five-year waiting period under certain
circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Securities Laws</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have filed with the Securities and Exchange Commission a registration statement under the
Securities Act of 1933 for the registration of the shares of common stock to be issued pursuant to
the stock offering and in connection with the conversion. Upon completion of the stock offering,
our common stock will be registered with the Securities and Exchange Commission under the
Securities Exchange Act of 1934. We will be subject to the information, proxy solicitation,
insider trading restrictions and other requirements under the Securities Exchange Act of 1934.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registration under the Securities Act of 1933 of shares of common stock issued in Oneida
Financial-New&#146;s public offering does not cover the resale of those shares. Shares of common stock
purchased by persons who are not affiliates of Oneida Financial-New may be resold without
registration. Shares purchased by an affiliate of Oneida Financial-New will be subject to the
resale restrictions of Rule&nbsp;144 under the Securities Act of 1933. If Oneida Financial-New meets
the current public information requirements of Rule&nbsp;144 under the Securities Act of 1933, each
affiliate of Oneida Financial-New that complies with the other conditions of Rule&nbsp;144, including
those that require the affiliate&#146;s sale to be aggregated with those of other persons, would be able
to sell in the public market, without registration, a number of shares not to exceed, in any
three-month period, the greater of 1% of the outstanding shares of Oneida Financial-New, or the
average weekly volume of trading in the shares during the preceding four calendar weeks. In the
future, Oneida Financial-New may permit affiliates to have their shares registered for sale under
the Securities Act of 1933.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The USA PATRIOT Act</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The USA PATRIOT Act gives the federal government powers to address terrorist threats through
enhanced domestic security measures, expanded surveillance powers, increased information sharing
and broadened anti-money laundering requirements. Title III of the USA PATRIOT Act amended the
Bank Secrecy Act to encourage information sharing among bank regulatory agencies and law
enforcement bodies. Moreover, certain provisions of Title III impose affirmative obligations on a
broad range of financial institutions, including banks, savings associations, brokers, dealers,
credit unions, money transfer agents and parties registered under the Commodity Exchange Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Sarbanes-Oxley Act of 2002</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Sarbanes-Oxley Act of 2002 addresses, among other issues, corporate governance, auditing
and accounting, executive compensation, and enhanced and timely disclosure of corporate
information. As directed by the Sarbanes-Oxley Act, our Chief Executive Officer and Chief Financial
Officer will be required to certify that our quarterly and annual reports do not contain any untrue
statement of a material fact. The rules adopted by the Securities and Exchange Commission under the
Sarbanes-Oxley Act have several requirements, including having these officers certify that: they
are responsible for establishing,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">maintaining and regularly evaluating the effectiveness of our internal control over financial
reporting; they have made certain disclosures to our auditors and the audit committee of the Board
of Directors about our internal control over financial reporting; and they have included
information in our quarterly and annual reports about their evaluation and whether there have been
changes in our internal control over financial reporting or in other factors that could materially
affect internal control over financial reporting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Reserve System</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Federal Reserve Board requires all depository institutions to maintain noninterest-bearing
reserves at specified levels against their transaction accounts (primarily checking, NOW and Super
NOW checking accounts). At December&nbsp;31, 2009, Oneida Savings Bank was in compliance with these
reserve requirements.
</DIV>
<DIV align="left">
<A name="165"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TAXATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Taxation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General</I></B><I>. </I>Oneida Financial Corp. and Oneida Savings Bank are, and Oneida Financial-New will
be, subject to federal income taxation in the same general manner as other corporations, with some
exceptions discussed below. The following discussion of federal taxation is intended only to
summarize certain pertinent federal income tax matters and is not a comprehensive description of
the tax rules applicable to Oneida Financial Corp., Oneida Financial-New or Oneida Savings Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank&#146;s most recent IRS audit was relative to Oneida Savings Bank&#146;s 1993, 1994
and 1995 federal and state income tax returns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Method of Accounting</I></B><I>. </I>For federal income tax purposes, Oneida Financial Corp. currently
reports its income and expenses on the accrual method of accounting and uses a tax year ending
December&nbsp;31 for filing its federal and state income tax returns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Alternative Minimum Tax</I></B><I>. </I>The Internal Revenue Code of 1986, as amended (the &#147;Code&#148;), imposes
an alternative minimum tax (&#147;AMT&#148;) at a rate of 20% on a base of regular taxable income plus
certain tax preferences (&#147;alternative minimum taxable income&#148; or &#147;AMTI&#148;). The AMT is payable to
the extent such AMTI is in excess of an exemption amount. Net operating losses can offset no more
than 90% of AMTI. Certain payments of AMT may be used as credits against regular tax liabilities
in future years. Oneida Financial Corp. and Oneida Savings Bank are subject to the AMT, however,
neither corporation has any minimum tax credit carryforwards at December&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Net Operating Loss Carryovers. </I></B>Generally, a financial institution may carry back net
operating losses to the preceding two taxable years and forward to the succeeding 20 taxable years.
However, as a result of recent legislation, subject to certain limitations, the carryback period
for net operating losses incurred in 2008 or 2009 (but not both years) has been expanded to five
years. At December&nbsp;31, 2009, Oneida Financial Corp. and Oneida Savings Bank had no net operating
loss carryforward for federal income tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Corporate Dividends-Received Deduction</I></B><I>. </I>Oneida Financial Corp. (and Oneida Financial-New) may
exclude from its federal taxable income 100% of dividends received from Oneida Savings Bank as a
wholly owned subsidiary.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>State Taxation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial Corp. and Oneida Savings Bank report income on a combined calendar year basis
to New York State. New York State Franchise Tax on corporations is imposed in an amount equal to
the greater of (a)&nbsp;7.1% of &#147;entire net income&#148; allocable to New York State, (b)&nbsp;3% of &#147;alternative
entire net income&#148; allocable to New York State, (c)&nbsp;0.01% of the average value of assets allocable
to New York State, or (d)&nbsp;nominal minimum tax. Entire net income is based on federal taxable
income, subject to certain modifications. Alternative entire net income is equal to entire net
income without certain modifications. After the common stock offering, Oneida Financial-New and
Oneida Savings Bank will continue to be subject to these New York State tax premiums.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York State Department of Taxation&#146;s most recent audits were of Oneida Financial Corp.&#146;s
state income tax returns for the years of 1999, 2000 and 2001.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a Maryland business corporation, Oneida Financial-New will be required to file annual returns
and pay annual fees to the State of Maryland.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->110<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="166"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MANAGEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Shared Management Structure</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The directors of Oneida Financial-New are the same persons who are the directors of Oneida
Savings Bank. In addition, certain executive officers of Oneida Financial-New are also executive
officers of Oneida Savings Bank. Both Oneida Financial-New and Oneida Savings Bank may choose to
appoint additional or different persons as directors and executive officers in the future. We
expect that Oneida Financial-New and Oneida Savings Bank will continue to have some common
executive officers until there is a business reason to establish separate management structures.
To date, executive officers have been compensated only for their services to Oneida Savings Bank.
Our directors will receive additional compensation for their services to Oneida Financial-New.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Executive Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information regarding the executive officers of Oneida
Financial Corp. and Oneida Savings Bank. These persons will serve in the same positions with
Oneida Financial-New following the common stock offering. The executive officers of Oneida
Financial-New and Oneida Savings Bank are, and will be, elected annually.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Age(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Position</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael R. Kallet
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Eric E. Stickels
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">48</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President, Chief Financial Officer and Corporate Secretary</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Thomas H. Dixon
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief Credit Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>At December&nbsp;31, 2009.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Directors of Oneida Financial-New and Oneida Savings Bank</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial-New has eleven directors. Directors serve three-year staggered terms so that
approximately one-third of the directors are elected at each annual meeting. Directors of Oneida
Savings Bank will be elected by Oneida Financial-New as its sole stockholder. The following table
states our directors&#146; names, their ages as of December&nbsp;31, 2009, the years when they began serving
as directors of Oneida Savings Bank and when their current term expires.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Position(s) Held With</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Director</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Oneida Financial-New</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Age</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Since(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Current Term Expires</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael R. Kallet
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief
Executive Officer,
Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1997</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2010</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Patricia D. Caprio
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">60</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1985</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2012</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Edward J. Clarke
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">69</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1987</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2011</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John E. Haskell
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">66</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1992</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2010</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Rodney D. Kent
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">61</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1990</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2011</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Richard B. Myers
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">73</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1981</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2011</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Nancy E. Ryan
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2009</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2010</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ralph L. Stevens, M.D.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2008</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2012</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Gerald N. Volk
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">67</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2002</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2011</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Frank O. White, Jr.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">54</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1994</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2012</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John A. Wight, M.D.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">54</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2008</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2010</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The mailing address for each person listed is 182 Main Street, Oneida, New York 13421.
Each of the persons listed as a director, is also a director of Oneida Savings Bank. Each of such
persons, with the exception of Edward J. Clarke and John E. Haskell, is also a director of Oneida
Financial, MHC.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Reflects initial appointment to the Board of Trustees of the mutual predecessor to Oneida
Savings Bank if prior to 1998.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->111<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Board Independence</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has determined that, with the exception of Mr.&nbsp;Kallet, Mr.&nbsp;Haskell and
Mr.&nbsp;Clarke, each of Oneida Financial Corp.&#146;s directors qualifies as an independent director under
the listing requirements for NASDAQ listed companies. The independent directors constitute a
majority of the Board of Directors. Mr.&nbsp;Kallet is not considered independent because he is an
executive officer of Oneida Financial Corp. Messrs.&nbsp;Haskell and Clarke are not considered
independent because they are employed by Bailey &#038; Haskell Associates, Inc., a subsidiary of Oneida
Savings Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From time to time, Oneida Savings Bank makes loans to its directors and executive officers and
related persons or entities. These loans are made in the ordinary course of business, are made on
substantially the same terms, including interest rates and collateral, as those prevailing at the
time for comparable transactions with other persons, and neither involve more than normal risk of
collectability nor present other unfavorable features. The Board does not believe that originating
these loans affects the independence of our board members.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Meetings and Committees of the Board of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conduct business through meetings of our Board of Directors and its committees. During the
year ended December&nbsp;31, 2009, the Board of Directors of Oneida Financial Corp. met 13 times. No
director attended fewer than 75% of the aggregate of total meetings of Oneida Financial Corp.&#146;s
board of directors and the committees on which such director served. Oneida Financial-New did not
exist in fiscal 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the completion of the conversion and offering, Oneida Financial-New will
establish an audit committee, a compensation committee and a nominating committee. All of the
members of these committees will be independent directors as defined in the listing standards of
The Nasdaq Stock Market. Such committees will operate in accordance with the written charters
currently used by Oneida Financial Corp., which will be re-adopted by Oneida Financial-New.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth the directors of each of our standing committees as of December&nbsp;31,
2009, and the number of meetings held by the comparable committee of Oneida Financial Corp. during
2009. The members of each committee are independent directors as defined under the NASDAQ Stock
Market listing standards. Director Rodney D. Kent will be designated as an &#147;Audit Committee
Financial Expert&#148; for the Audit Committee, as that term is defined by the rules and regulations of
the Securities and Exchange Commission.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Nominating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Audit</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Patricia D. Caprio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">X</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">X</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rodney D. Kent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">X</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">X</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">X</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Richard B. Myers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">X</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">X</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gerald N. Volk</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">X</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Frank O. White, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">X</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John A. Wight, M.D.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">X</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Meeting(s) during 2009</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Audit Committee. </I></B>The audit committee meets at least quarterly to examine and approve the
audit report prepared by the independent registered public accounting firm of Oneida Financial
Corp, to review and recommend the independent registered public accounting firm to be engaged by
Oneida Financial Corp., to review the internal audit function and internal accounting controls of
Oneida Financial Corp.,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and to review and approve audit policies. In addition, the audit committee
meets with the independent registered public accounting firm to review the results of the annual
audit and other related matters. The audit committee also meets twice a year with Oneida Financial
Corp.&#146;s independent registered public accounting firm.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Compensation Committee. </I></B>The compensation committee of Oneida Financial Corp. provides advice
and recommendations to the Board of Directors in the areas of employee salaries, benefit programs
and employment agreement provisions for the senior executive officers. Oneida Savings Bank also
has a human resources committee which deals with employee salaries, benefit programs and general
human resources problems of non-executive employees of Oneida Savings Bank and its subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Nominating Committee. </I></B>The committee is responsible for nominating persons for election to the
Board of Directors and also reviews whether shareholder nominations (if any) comply with the notice
procedures set forth in Oneida Financial Corp.&#146;s bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Business Background of Our Directors and Executive Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Directors:</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The business experience for the past five years of each of our directors and executive
officers is set forth below. Unless otherwise indicated, directors and executive officers have
held their positions for the past five years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Michael R. Kallet </I></B>is President and Chief Executive Officer of Oneida Financial Corp. and
Oneida Savings Bank. Mr.&nbsp;Kallet has over 30&nbsp;years of experience in the banking industry and has
been President and Chief Executive Officer since March&nbsp;1990. Mr.&nbsp;Kallet joined Oneida Savings Bank
in 1983 as an executive officer. During his tenure at Oneida Savings Bank, Mr.&nbsp;Kallet has served
as an active member of the Asset/Liability, Officer Loan, Trust Investment and Marketing
Committees. Mr.&nbsp;Kallet was appointed to the Board of Directors in 1997 and was elected Chairperson
of the Board of Oneida Savings Bank in 2008. Mr.&nbsp;Kallet is the chairperson of all subsidiary
corporation boards and also serves as President of the State Bank of Chittenango and Oneida
Preferred Funding Corp. Mr.&nbsp;Kallet is also President and a board member of Oneida Savings Bank
Charitable Foundation. Mr.&nbsp;Kallet is actively involved in the community and serves as Vice
Chairperson of the Oneida Healthcare Center, a regional hospital headquartered in Oneida, New York.
Mr.&nbsp;Kallet&#146;s extensive banking experience and knowledge of local markets enhances the breadth of
experience of the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Patricia D. Caprio </I></B>is the Director of Leadership Giving at Colgate University and began her
professional career at Colgate in 1972. Mrs.&nbsp;Caprio has been a director of Oneida Savings Bank
since 1985 and a Director of the Oneida Financial Corp. since its inception in 1998. Mrs.&nbsp;Caprio
serves as the Chairperson of the Compensation and Human Resource Development Committees of Oneida
Financial Corp. Mrs.&nbsp;Caprio also serves on the Executive, Investment and Nominating Committees.
Mrs.&nbsp;Caprio has been an active member of the community for many years including serving as a board
member of the Community Memorial Hospital in Hamilton, New York. Mrs.&nbsp;Caprio provides our Board
with knowledge and understanding of our Southern
Madison County market area, as well as experience in the college/university and non-profit
business sectors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Edward J. Clarke </I></B>is the former President of Kennedy &#038; Clarke, Inc., a property and casualty
insurance agency located in Cazenovia, New York, which was acquired by Oneida Savings Bank in July
2002. Mr.&nbsp;Clarke was employed by Bailey &#038; Haskell Associates, Inc., the insurance subsidiary of
Oneida Savings Bank, until his retirement on February&nbsp;28, 2010. Mr.&nbsp;Clarke has been a Director of
Oneida Savings Bank since 1987 and a Director of Oneida Financial Corp. since its inception in
1998. Mr.&nbsp;Clarke is Chairperson of the Trust Committee and also serves on the Investment
Committee. Mr.&nbsp;Clarke
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provides the Board with knowledge and understanding of our Western Madison
and Eastern Onondaga County market areas, and expertise in financial services including insurance
and wealth management.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>John E. Haskell </I></B>is the Chief Executive Officer of Bailey &#038; Haskell Associates, Inc., the
insurance subsidiary of Oneida Savings Bank located in Oneida, New York. Mr.&nbsp;Haskell has been a
Director of Oneida Savings Bank since 1992 and a Director of Oneida Financial Corp. since its
inception in 1998. Mr.&nbsp;Haskell serves on the Executive and Investment Committees. In addition,
Mr.&nbsp;Haskell is a member of the subsidiary boards providing policy oversight, strategic advice and
governance for Bailey &#038; Haskell Associates, Inc., Benefit Consulting Group, Inc. and Workplace
Health Solutions, Inc. Mr.&nbsp;Haskell is well known throughout our market area and provides the Board
with significant experience in financial services, insurance and business continuity planning and
succession planning.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Rodney D. Kent </I></B>is the President and Chief Executive Officer of International Wire Group, an
international manufacturer of wire products located in Camden, New York with operations in the
United States, Mexico, France and Italy. Mr.&nbsp;Kent has been a Director of Oneida Savings Bank since
1990 and a Director of Oneida Financial Corp. since its inception in 1998. Mr.&nbsp;Kent serves as the
Chairperson of the Audit Committee and the Chairperson of the Executive Committee. Mr.&nbsp;Kent
provides knowledge and expertise to the Board in the areas of financial statement preparation and
reporting, and serves as Oneida Financial Corp.&#146;s Audit Committee Financial Expert. In addition,
Mr.&nbsp;Kent is a member of the Compensation, Human Resource Development and Nominating Committees.
Mr.&nbsp;Kent provides the Board with extensive experience in the manufacturing business sector, as well
as financial management, acquisitions and corporate governance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Richard B. Myers, D.D.S. </I></B>is the Retired President of Orthodontic Associates of C.N.Y., P.C., a
clinical orthodontic practice located in Oneida, New York and Norwich, New York. Dr.&nbsp;Myers is a
graduate of Colgate University in Hamilton, New York and SUNY Buffalo in Buffalo, NY where he
obtained his degree in dentistry and orthodontics. Dr.&nbsp;Myers serves as Chairperson of the Board of
Oneida Financial Corp. and has served on the Board since its inception in 1998. Dr.&nbsp;Myers joined
the Board of Oneida Savings Bank in 1981 and concurrently serves as a Director-Emeritus of Oneida
Savings Bank. Dr.&nbsp;Myers is a member of the Executive, Compensation, Human Resource Development and
Nominating Committees. In addition, Dr.&nbsp;Myers serves as a director of all company subsidiary
boards. Dr.&nbsp;Myers provides the Board with business experience of running a medical practice and
the insight and understanding of the banking industry developed over his 28&nbsp;years of involvement
with our Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Nancy E. Ryan </I></B>is the co-owner of Nunn&#146;s Hospital Supplies, Inc. located in Rome, New York.
Mrs.&nbsp;Ryan was appointed to the Board of Directors in November&nbsp;2009. Mrs.&nbsp;Ryan has been involved in
the medical equipment industry for over 30&nbsp;years and is an active member of the NYS Medical
Equipment Providers Association. Mrs.&nbsp;Ryan&#146;s community volunteer activities
include: Rome Memorial Hospital Foundation, Rome Community Foundation, Rome Chamber of
Commerce and Rome Rescue Mission. In addition, Mrs.&nbsp;Ryan is active in programs and organizations
supporting parochial education in the City of Rome and other civic and philanthropic organizations
serving Central New York. Mrs.&nbsp;Ryan is a successful business owner and is well known throughout
our Oneida County market area.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Ralph L. Stevens, M.D. </I></B>is the founder and medical director of Oneida Medical Imaging Center
located in Oneida, New York. Dr.&nbsp;Stevens has been a Director of Oneida Financial Corp. and Oneida
Savings Bank since December&nbsp;2008. Dr.&nbsp;Stevens is a member of the Trust and Investment Committees.
Dr.&nbsp;Stevens is a graduate of Yale College in New Haven, CT and SUNY Upstate College of Medicine in
Syracuse, NY. Prior to developing a technologically advanced radiology and imaging center in 1997,
Dr.&nbsp;Stevens was employed for nearly 10&nbsp;years by the Oneida City Hospital in the radiology unit. He
has been an active member of the Madison County Medical Society, Oneida Rotary Club, Yale Club of
Central New York and other civic and philanthropic organizations. In addition to his private
medical practice, Dr.&nbsp;Stevens is a Clinical Professor of Radiology at SUNY Upstate Medical
University. Dr.&nbsp;Stevens provides
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Board with knowledge of the medical community throughout
Central New York. In addition, Dr.&nbsp;Stevens adds value in the oversight of our trust administration
and wealth management business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Gerald N. Volk </I></B>is the President of Prima International Trading, a mining and construction
equipment trading company located in Syracuse, New York. Mr.&nbsp;Volk was a director of SBC Financial
Corporation and State Bank of Chittenango immediately preceding the acquisition of the bank by
Oneida Savings Bank in May&nbsp;2002, at which time he joined the boards of Oneida Financial Corp. and
Oneida Savings Bank. Mr.&nbsp;Volk also serves on the Investment and Audit Committees. Mr.&nbsp;Volk
provides the Board with an extensive business background and experience in board oversight of two
financial institutions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Frank O. White, Jr. </I></B>is the former Assistant Director of Athletics at Colgate University.
Until January&nbsp;1998, Mr.&nbsp;White was the President and Chief Executive Officer of Mid-State Raceway,
Inc. located in Vernon, New York. Mr.&nbsp;White has been a director of Oneida Savings Bank since 1994
and a Director of the Oneida Financial Corp. since its inception in 1998. Mr.&nbsp;White serves as the
Chairperson of the Investment Committee and also serves on the Executive and Audit Committees. Mr.
White is well known throughout Madison County and provides insight in business management and the
university business sector.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>John A. Wight, M.D </I></B>is the founder and managing director of Tri-Valley Family Practice located
in Vernon, New York. Dr.&nbsp;Wight also serves as Chief of Medical Staff at the Oneida Healthcare
Center in Oneida, New York. Dr.&nbsp;Wight has been a Director of Oneida Financial Corp. and Oneida
Savings Bank since December&nbsp;2008. Dr.&nbsp;Wight is a member of the Audit and Human Resource
Development Committees. Dr.&nbsp;Wight is a graduate of SUNY Geneseo in Geneseo, NY and SUNY
Upstate College of Medicine in Syracuse, NY. Prior to establishing a medical practice in Central
New York in 1988 that currently includes nine practicing physicians, Dr.&nbsp;Wight performed family
practice residency work at St. Margaret Memorial Hospital in Pittsburgh, PA followed by joining a
private medical practice in Canastota, NY. He is a member of the American Academy of Family
Physicians, Central New York Independent Physicians Association and a board member of VVS Dollars
for Scholars. Dr.&nbsp;Wight&#146;s medical practice covers Western Oneida County and much of Madison
County. His respect in the medical community and community involvement activities provides
significant value to the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Executive Officers who are not Directors</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Eric E. Stickels, </I></B>age 48, has been Executive Vice President, Secretary and Chief Financial
Officer of Oneida Financial Corp. since April&nbsp;2003, and Executive Vice President and Chief
Financial Officer of Oneida Savings Bank since January&nbsp;2003. Prior to that time, Mr.&nbsp;Stickels held
a variety of positions at Oneida Savings Bank, most recently Senior Vice President and Chief
Financial Officer. Mr.&nbsp;Stickels has been associated with Oneida Savings Bank since 1982 and a
member of the senior management group since 1986. Mr.&nbsp;Stickels currently serves as an active
member of the Asset/Liability, Trust Investment, Compliance, Information Technology and Marketing
Committees. Mr.&nbsp;Stickels is the treasurer and secretary of all Oneida Savings Bank subsidiaries
and serves as a director of all Oneida Savings Bank subsidiary corporation boards. Mr.&nbsp;Stickels is
also Treasurer and a board member of Oneida Savings Bank Charitable Foundation. Mr.&nbsp;Stickels is
actively involved in the community and has served as a member of the executive committee of NYSARC,
Inc. since 2002, a statewide non-profit provider of services for individuals with intellectual and
other developmental disabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Thomas H. Dixon, </I></B>age 55, has been Executive Vice President of Oneida Financial Corp. since
April&nbsp;2003 and Executive Vice President and Chief Credit Officer of Oneida Savings Bank since
January&nbsp;2003. Prior to that, Mr.&nbsp;Dixon held the position of Senior Vice President-Credit
Administration and has been associated with Oneida Savings Bank since January&nbsp;1996. Mr.&nbsp;Dixon was
previously affiliated with Oneida Valley National Bank in various capacities since 1982. Mr.&nbsp;Dixon
currently serves as an active member of the Asset/Liability, Officer Loan and Marketing Committees.
Mr.&nbsp;Dixon serves as a director
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of all Oneida Savings Bank subsidiary corporation boards. Mr.
Dixon is also a board member of Oneida Savings Bank Charitable Foundation. Mr.&nbsp;Dixon is actively
involved in the community through various civic, social and educational organizations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Code of Ethics</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial Corp. has adopted a Code of Ethics that is applicable to the officers,
directors and employees of Oneida Financial Corp., including Oneida Financial Corp.&#146;s principal
executive officer, principal financial officer, principal accounting officer or controller, or
persons performing similar functions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compensation Committee Interlocks and Insider Participation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of Oneida Savings Bank, meeting in an &#147;executive session&#148; which
includes only independent directors, determines the salaries to be paid each year to Oneida Savings
Bank&#146;s officers. The Compensation Committee of Oneida Financial Corp., meeting in an &#147;executive
session&#148; including only independent directors, determine the base salaries to be paid each year to
the named executive officers of Oneida Financial Corp. which includes Messrs.&nbsp;Kallet, Stickels,
Dixon, Haskell and Catanzarita. Michael R. Kallet, the President and Chief Executive Officer, is
also a director of Oneida Financial Corp. and Oneida Savings Bank. Mr.&nbsp;Kallet has not in the past,
and will not in the future, be present during board deliberations or participate in the Board of
Directors&#146; determination of compensation for the President and Chief Executive Officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the year ended December&nbsp;31, 2009, (i)&nbsp;no executive served as a member of the
compensation committee (or other board committee performing equivalent functions or, in the absence
of any such committee, the entire board of directors) of another entity, one of whose executive
officers served on Oneida Financial Corp.&#146;s Compensation Committee; (ii)&nbsp;no executive officer of
the company served as a director of another entity, one of whose executive officers served on the
Compensation Committee of Oneida Financial Corp.; and (iii)&nbsp;no executive
officer of the company served as a member of the compensation committee (or other board
committee performing equivalent functions or, in the absence of any such committee, the entire
board of directors) of another entity, one of whose executive officers served as a director of
Oneida Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compensation Discussion and Analysis</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Compensation Philosophy. </I></B>Our compensation philosophy begins with the premise that the success
of Oneida Financial Corp. depends, in large part, on the dedication and commitment of the people we
place in key management positions, and the incentives we provide such persons to successfully
implement our business strategy and other corporate objectives. However, we recognize that Oneida
Savings Bank operates in a competitive environment for talent. Therefore, our approach to
compensation considers the full range of compensation techniques that enable us to compare
favorably with our peers as we seek to attract and retain key personnel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a public company, we base our compensation decisions on four basic principals:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Meeting the Demands of the Market &#151; Our goal is to compensate our employees at
competitive levels that position us as the employer of choice among our peers who
provide similar financial services in the markets we serve.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Aligning with Shareholders &#151; We use equity compensation as a key component of our
compensation mix to develop a culture of ownership among our key personnel and to
align their individual financial interests with the interests of our shareholders.</TD>
</TR>


</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Driving Performance &#151; We base compensation in part on the attainment of
company-wide and business unit targets that return positive results to our bottom
line.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reflecting our Business Philosophy &#151; Our approach to compensation reflects our
values and the way we do business in the communities we serve.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This discussion is focused specifically on the compensation of the following executive
officers, each of whom is named in the Summary Compensation Table which appears later in this
section. These five executives are referred to in this discussion as the &#147;Named Executive
Officers.&#148;
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael R. Kallet
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Eric E. Stickels
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief Financial Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Thomas H. Dixon
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief Credit Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John E. Haskell
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer, Bailey &#038; Haskell Associates, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John F. Catanzarita
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President, Benefit Consulting Group Inc.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Role of Compensation Committee. </I></B>The compensation committee of Oneida Financial Corp. is
responsible for overseeing and making recommendations to the full board of directors with respect
to the compensation, including benefits, of the Named Executive Officers. The compensation
committee meets as necessary. One of the responsibilities of the compensation committee is to
provide, on an annual basis, final approval of the significant components of the total compensation
of the named executive officers. In making these determinations, the
compensation committee considers the executive&#146;s level of job responsibility, the compensation paid
by peers for similar levels of responsibility, industry survey data regarding executive
compensation, the financial condition and performance of the company, and an assessment of the
executive&#146;s individual performance. The compensation committee also strongly considers the
recommendations of our President and Chief Executive Officer regarding the other Named Executive
Officers. The Board of Directors has ultimate authority to approve the compensation of all Name
Executive Officers, including the President and Chief Executive Officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The compensation committee consists of the following directors of Oneida Financial Corp.:
Patricia D. Caprio (Chair), Rodney D. Kent and Richard B. Myers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Role of Executives in Committee Activities</I></B>. The executive officers who serve as a resource to
the compensation committee are the President and Chief Executive Officer and the Executive Vice
President and Chief Financial Officer. Executives provide the compensation committee with input
regarding Oneida Savings Bank&#146;s employee compensation philosophy, process, and decisions for
employees other than the Named Executive Officers. In addition to providing factual information
such as company-wide performance on relevant measures, these executives articulate management&#146;s
views on current compensation programs and processes, recommend relevant performance measures to be
used for future evaluations, and otherwise supply information to assist the compensation committee.
The Executive Vice President and Chief Financial Officer may provide information to evaluate the
estimated financial impact regarding any proposed changes to the various components of
compensation. The President and Chief Executive Officer also provides information about individual
performance assessments for the other Named Executive Officers, and expresses to the compensation
committee his views on the appropriate levels of compensation for the other Named Executive
Officers for the ensuing year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executives participate in compensation committee activities purely in an informational and
advisory capacity and have no vote in the compensation committee&#146;s decision-making process. The
President and Chief Executive Officer and Executive Vice President and Chief Financial Officer do
not attend those portions of compensation committee meetings during which their performance is
evaluated or their compensation is being determined. No executive officer other than the President
and Chief
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Executive Officer attends those portions of compensation committee meetings during which
the performance of the other Named Executive Officers is evaluated or their compensation is being
determined.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Market Comparisons. </I></B>In determining compensation of the Named Executive Officers, the
compensation committee will utilize market information that is provided by Human Resources. For
the year ended December&nbsp;31, 2008, our Human Resources Director utilized survey data from the NYBA
Compensation Survey &#151; 2008 and the ACB Compensation Survey &#151; 2007. In addition, the compensation
committee reviews compensation data derived from public filings of similarly situated publicly
traded financial institutions. The following peer group was utilized in determining market
compensation for our executive officers:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Tompkins Financial Corporation<BR>
Alliance Financial Corporation<BR>
Rome Bancorp, Inc.<BR>
Community Bank Systems, Inc.<BR>
NBT Bancorp, Inc.<BR>
Beacon Federal Bancorp, Inc.<BR>
Financial Institutions, Inc.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In reviewing the market comparison data, the compensation committee will review the other
components of executive compensation (broad based benefits and executive perquisites) but does not
necessarily consider changes to those components on an annual basis. Changes to the level or types
of benefits within these categories, including considerations relating to the addition or
elimination of benefits and plan design changes are made by the board of directors of Oneida
Savings Bank on an aggregate basis with respect to the group of employees entitled to those
benefits and not with reference to a particular Named Executive Officer&#146;s compensation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The compensation committee seeks to create what it believes is the best mix of base salary and
annual cash incentives in delivering the Named Executive Officer&#146;s total cash compensation. For
each Named Executive Officer, a significant percentage of total cash compensation is at-risk,
meaning that it will generally be earned when Oneida Financial Corp. or the Named Executive Officer
is successful in ways that are aligned with and support Oneida Financial Corp&#146;s interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Compensation Program. </I></B>Compensation paid to our executive officers for 2009 consisted
primarily of base salary, annual cash incentive awards based upon a pre-approved cash incentive
plan, broad based benefits generally available to all full-time employees and perquisites available
only to certain Named Executive Officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summarizes the significant broad-based benefits in which the Named Executive
Officers were eligible to participate during 2009:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A defined contribution 401(k) retirement plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An employee stock ownership plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Medical coverage;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Life insurance; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-tax health and dependent care spending accounts.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Named Executive Officers were also entitled to county club memberships. In
lieu of a monthly automobile allowance, Mr.&nbsp;Kallet has use of an automobile (including operating
expenses) owned by Oneida Savings Bank for business and personal use. Mr.&nbsp;Haskell has use of an
automobile (including operating expenses) leased by Bailey &#038; Haskell Associates Inc. Personal use
of the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">automobiles is reported as taxable income to Mr.&nbsp;Kallet and Mr.&nbsp;Haskell. Messrs.&nbsp;Stickels,
Dixon and Catanzarita each receive a monthly car allowance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please refer to the &#147;Summary Compensation Table&#148; for compensation information regarding these
benefits for 2009. These benefits are aligned with our objective to attract and retain highly
qualified management talent for the benefit of all of our stockholders and are considered by the
compensation committee to be reasonable when compared to industry averages.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The compensation committee reviewed 2009 compensation for the Named Executive Officers
relative to the competitive market and relative to results delivered on established objectives and
performance criteria. The compensation committee concluded that the executives&#146; compensation is
consistent with market practice and is reasonable based on performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Employment Agreements. </I></B>In addition to the components of executive compensation described
above, Messrs.&nbsp;Kallet, Stickels and Dixon are each parties to employment agreements with Oneida
Savings Bank. Messrs.&nbsp;Haskell and Catanzarita are each parties to employment
agreements with Bailey &#038; Haskell Associates, Inc. and Benefit Consulting Group, Inc., respectively,
the wholly owned subsidiaries of Oneida Savings Bank. See &#147;&#151;Employment Agreements&#148; for a
description of these agreements and for information about potential payments to these individuals
upon termination of their employment with Oneida Savings Bank. The employment agreements are
designed to give Oneida Savings Bank and its subsidiaries the ability to retain the services of the
designated executives while reducing, to the extent possible, unnecessary disruptions to Oneida
Savings Bank&#146;s operations. The agreements are for a three-year period for Messrs.&nbsp;Kallet, Stickels
and Dixon, and a five-year period for Messrs.&nbsp;Haskell and Catanzarita, and are reviewed and renewed
annually by the compensation committee of the board of directors. The employment agreements
provide for salary and bonus payments, as well as additional post-employment benefits, primarily
health benefits, under certain conditions, as defined in the employment agreements. The employment
agreements were negotiated directly with and recommended for approval by, the compensation
committee. The compensation committee negotiated the agreements with the assistance of outside
counsel, and the compensation committee believes such agreements are consistent with industry
practices and desirable for retaining executive talent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Annual Compensation-Chief Executive Officer</I></B>. In May&nbsp;2009, the compensation committee
recommended, and the board of directors approved, the various components of Mr.&nbsp;Kallet&#146;s 2009
annual compensation. Details regarding base salary and annual incentive cash awards are included
in the compensation tables following this section.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For 2009, the compensation committee established a base salary and a maximum bonus range for
Mr.&nbsp;Kallet of approximately $392,000. This target was established based on the recent and
anticipated financial performance of Oneida Financial Corp, the estimated value of Mr.&nbsp;Kallet&#146;s
services in the marketplace, and the compensation committee&#146;s view of Mr.&nbsp;Kallet&#146;s critical role in
the future success of Oneida Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After establishing the target value for Mr.&nbsp;Kallet&#146;s overall total cash compensation, the
compensation committee made detailed determinations for each element of compensation in order to
arrive at the desired overall result:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Base Salary</I>: The compensation committee set Mr.&nbsp;Kallet&#146;s base salary at $310,000
for 2009 representing no increase from his base salary in 2008. The base salary was
not increased from the 2008 level given the turbulent economic environment that
existed at the end of 2008. At this level, Mr.&nbsp;Kallet&#146;s base salary represented
approximately 80% of the target value of his total cash compensation, consistent with
the compensation committee&#146;s philosophy of emphasizing the at-risk components of total
cash compensation for executive officers. For 2010, the compensation committee
increased</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mr.&nbsp;Kallet&#146;s base salary by $20,000, to $330,000 based on the estimated
value of Mr.&nbsp;Kallet&#146;s services in the marketplace.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Annual Incentive Cash Award</I>: Mr.&nbsp;Kallet&#146;s &#147;target award&#148; for 2009 was established
at approximately 20% of his base salary based on Oneida Financial Corp&#146;s 2009
performance.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All compensation committee actions taken with respect to Mr.&nbsp;Kallet&#146;s compensation were
presented as recommendations for approval by the full board of directors. The compensation
committee&#146;s recommendations regarding Mr.&nbsp;Kallet&#146;s 2009 base salary were approved by the full board
of directors in June&nbsp;2009. The compensation committee&#146;s
recommendations regarding Mr.&nbsp;Kallet&#146;s 2009 annual incentive cash award were approved by the full
board of directors in May&nbsp;2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Annual Compensation &#151; Other Oneida Savings Bank Named Executive Officers</I></B>. In May&nbsp;2009, the
compensation committee recommended, and the full the board of directors approved, the total cash
components of annual compensation for the other Named Executive Officers of Oneida Savings Bank.
Details regarding base salary and annual incentive cash awards made to the Named Executive Officers
are included in the detailed compensation tables following this section. The compensation
committee evaluated the overall level of total cash compensation for each Named Executive Officer
(other than the Chief Executive Officer) after considering the recent performance of Oneida
Financial Corp. and the role of each Named Executive Officer, the criticality of each Named
Executive Officer to the future success of Oneida Financial Corp in attaining its goals and their
experience, contribution and knowledge of our organization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The target value of the Named Executive Officers&#146; total cash compensation, as established by
the compensation committee for 2009, generally followed the same steps as outlined above for the
Chief Executive Officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After establishing the target value for each Named Executive Officer&#146;s overall total cash
compensation, the compensation committee made detailed determinations for each element of that
package in order to arrive at the desired overall result:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Base Salary</I>: The compensation committee set base salary at $190,000 for each of
Messrs.&nbsp;Stickels and Dixon, representing no increase from the base salaries in 2008.
The base salary was not increased from the 2008 level given the turbulent economic
environment that existed at the end of 2008. At this level, Messrs.&nbsp;Stickels and
Dixon&#146;s base salary represented approximately 80% of the target value of their total
cash compensation, consistent with the compensation committee&#146;s philosophy of
emphasizing the at-risk components of total cash compensation for executive officers.
For 2010, the compensation committee increased both Messrs.&nbsp;Stickel&#146;s and Dixon&#146;s base
salary by $12,000, to $202,000.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Annual Incentive Cash Award: </I>Messrs.&nbsp;Stickels and Dixon&#146;s &#147;target award&#148; for 2009
was established at approximately 20% of his base salary based on Oneida Financial
Corp&#146;s 2009 performance.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For 2009, the compensation committee established the target value of each of Messrs.&nbsp;Stickels
and Dixon&#146;s base salary and annual incentive cash award at approximately $231,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Annual Compensation-Other Non-Bank Named Executive Officers</I></B>. In May&nbsp;2009, the compensation
committee recommended, and the full the board of directors approved, the total cash components of
annual compensation for the other non-banking Named Executive Officers. Messrs.&nbsp;Haskell and
Catanzarita are our non-banking Named Executive Officers. Details regarding base salary
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and annual
incentive cash awards made to the non-banking Named Executive Officers are included in the detailed
compensation tables following this section. The compensation committee evaluated the overall level
of total cash compensation for each non-banking Named Executive Officer (other than the Chief
Executive Officer) after considering the recent performance of the both Bailey &#038; Haskell Associates
Inc. and Benefit Consulting Group Inc. and the role of each Named Executive Officer, the
criticality of each Named Executive
Officer to the future success of Oneida Financial Corp. in attaining its goals and their
experience, contribution and knowledge of our organization.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After establishing the target value for each Named Executive Officer&#146;s overall total cash
compensation, the compensation committee made detailed determinations for each element of total
compensation in order to arrive at the desired overall result:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Base Salary</I>: The compensation committee set Messrs.&nbsp;Haskell&#146;s and Catanzarita&#146;s
base salary at $193,640 and $181,000, respectively, which represented a 3% and 5%
increase respectively from the base salaries in 2008. At this level, Messrs.
Haskell&#146;s and Catanzarita&#146;s base salary represented approximately 85% and 100% of the
target value of their total cash compensation respectively, consistent with the
compensation committee&#146;s philosophy of emphasizing the at-risk components of total
cash compensation for executive officers. For 2010, the compensation committee
increased Mr.&nbsp;Haskell&#146;s base salary by $5,810, to $199,450. In addition, Mr.
Catanzarita&#146;s current base salary was increased by $12,500 to $193,500.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Annual Incentive Cash Award</I>: Mr.&nbsp;Haskell&#146;s &#147;target award&#148; for 2009 was established
at approximately 15% of his base salary based on Bailey &#038; Haskell Associates Inc.&#146;s
2009 performance. Mr.&nbsp;Catanzarita did not receive any annual incentive cash awards
for 2009.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Annual Cash Incentives. </I></B>The compensation committee designed, the Performance Based
Compensation Plan in order to link potential payout with our stockholders interests. The
performance objectives are established at the beginning of the year by the compensation
committee. For 2009, the primary corporate financial performance objectives were based on the
Company attaining certain targeted net income growth rates, return on average assets and return
on average tangible equity. Performance levels below the targeted level would result in no
payment being made. Performance levels exceeding the target by specified percentages may result
in increasing payments based on a six tier structure, provided that the total annual incentive
awards paid may not exceed 4% of Oneida Financial Corp.&#146;s net income for the fiscal year. The
compensation committee may, at their discretion, modify the plan from time to time, to negate
the effects of certain non-recurring increases or decreases in the net income levels. The
performance objectives for Mr.&nbsp;Haskell are related to the overall performance of Bailey &#038;
Haskell Associates, Inc. based on increased revenues due to commissions and fees received for
providing retail and whole insurance agency and brokerage services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Long-Term Stock-Based Compensation</I></B><B>. </B>The purpose of our 2006 Recognition and Retention Plan
was to provide an additional incentive to certain officers to work to maximize shareholder
value. Stock awarded in 2006 vests 20% in 2006 with the remainder vesting ratably over the next
four years. This approach was designed to encourage key employees to remain in the employ of
Oneida Savings Bank and to encourage employees to take into account the long-term interests of
Oneida Financial Corp. The 2006 Recognition and Retention Plan was approved by our
stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In making the stock grants to Mr.&nbsp;Kallet and certain Named Executive Officers in 2006, the
compensation committee took into account the duties and responsibilities of the Named Executive
Officers. Accordingly, Messrs.&nbsp;Kallet, Stickels, Dixon and Haskell were awarded 20,000, 10,000,
10,000 and 2,000 shares, respectively. Full vesting of the shares underlying the 2006 awards will
occur as of December&nbsp;31, 2010 provided that the executive is then employed
with us. In the event of the executive&#146;s
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">death, disability or retirement, the termination of
the executive&#146;s employment without cause (as defined in the plan) or the termination of the
executive&#146;s employment by the executive for good reason (as defined in the plan), these shares will
vest immediately and will be distributed to the executive (or his beneficiary in the event of his
death) as soon as practicable. Dividends are being paid on the 2006 award shares including the
non-vested shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Retirement Plans</I></B><B>. </B>In addition to the compensation paid to Named Executive Officers as
described above, the Named Executive Officers received, along with and on the same terms as other
employees, certain life, health and disability benefits and benefits pursuant to our 401(k) plan,
employee stock ownership plan (ESOP), and defined benefit plan. All of our Named Executive
Officers were eligible to participate in the 401(k) plan during 2009. Messrs.&nbsp;Kallet, Stickels,
Dixon, Haskell and Catanzarita are 100% vested in each plan. The 401(k) plan provides that an
eligible employee may elect to defer his or her salary for retirement up to the Internal Revenue
Code Section 402(g) limit (subject to a maximum limitation for 2010 of $16,500, provided, however,
that a participant over age 50 may contribute an additional $5,500 to the 401(k) plan), and that we
will provide a matching contribution of 100% of the first 4% of the employee&#146;s salary and a
matching contribution of 50% of the next 2% of the employee&#146;s salary that is contributed by the
employee to the 401(k) plan. These contributions were made in the form of a cash contribution and
are invested at the direction of the employee. Compensation taken into account under the Plan
cannot exceed $245,000 for 2010. Our board of directors may amend or terminate this Plan at any
time. All of our employees who have attained age 21 and have completed 12&nbsp;months of service during
which they have worked at least 1,000 hours are also eligible to participate in our employee stock
ownership plan. Allocations under the plan are based upon an employee&#146;s salary in relation to the
salary of all other qualified employees. Annual contributions to this plan are discretionary and
the aggregate contributions for 2009 totaled $300,000. The ESOP provides our employees with
allocations that consist of primarily of our common stock, which is allocated based upon an
employee&#146;s salary in relation to the salary of all other qualified employees. The defined benefit
plan has been frozen since June&nbsp;15, 2004, and as a result no benefits have accrued thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Tax and Accounting Implications. </I></B>In consultation with our advisors, we evaluate the tax and
accounting treatment of each of our compensation programs at the time of adoption and on an annual
basis to ensure that we understand the financial impact of the program. Our analysis includes a
detailed review of recently adopted and pending changes in tax and accounting requirements. As
part of our review, we consider modifications and/or alternatives to existing programs to take
advantage of favorable changes in the tax or accounting environment or to avoid adverse
consequences. To preserve maximum flexibility in the design and implementation of our compensation
program, we have not adopted a formal policy that requires all compensation to be tax deductible.
However, to the greatest extent possible, it is our intent to structure our compensation programs
in a tax efficient manner.
</DIV>


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</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Executive Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Summary Compensation Table. </I></B>The following table sets forth for the years ended December&nbsp;31,
2009, 2008 and 2007 certain information as to the total remuneration we paid to Michael R. Kallet,
our President and Chief Executive Officer, Eric E. Stickels, our Chief Financial Officer, and the
three other most highly compensated executive officers of Oneida Financial Corp. and its
subsidiaries (the &#147;Named Executive Officers&#148;).
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="28" style="border-bottom: 1px solid #000000"><B>Summary Compensation Table</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Change in pension</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>value and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>non-qualified</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Non-equity</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>deferred</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>incentive plan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>All other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 0px solid #000000"><B>Name and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Salary</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Option awards</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>earnings</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Principal Position</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($) (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($) (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($) (3)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($) (4)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($) (5)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael R. Kallet,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">310,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">515,371</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">310,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,464</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">397,929</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">278,065</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">414,705</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Eric E. Stickels,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,540</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,342</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">272,331</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">224,035</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,668</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,754</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225,722</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas H. Dixon,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,845</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,947</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">274,688</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221,169</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,540</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">222,741</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John E. Haskell,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">285,034</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">188,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64,289</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">254,420</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bailey &#038; Haskell</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,816</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">286,711</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Associates, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John F. Catanzarita</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">213,159</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">172,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,270</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200,770</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit Consulting</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">184,907</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Group, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Kallet deferred $22,000, $20,500 and $20,500 of his salary
to the 401(k) Plan for 2009, 2008 and 2007, respectively. Mr.&nbsp;Stickels
deferred $13,888, $15,500 and $13,905 of his salary to the 401(k) Plan for
2009, 2008 and 2007, respectively. Mr.&nbsp;Dixon deferred $22,000, $20,500 and
$20,500 of his salary to the 401(k) Plan for 2009, 2008 and 2007, respectively.
Mr.&nbsp;Haskell deferred $22,000, $20,500 and $19,989 of his salary to the 401(k)
Plan for 2009, 2008 and 2007, respectively. Mr.&nbsp;Catanzarita deferred $21,980,
$20,500 and $20,491 of his salary to the 401(k) Plan for 2009, 2008 and 2007,
respectively.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the grant date fair value of reload options received
by the Named Executive Officers under the Oneida Financial Corp. 2000 Stock
Option Plan. The grant date fair value of the reloaded options has been
computed in accordance with the stock-based compensation accounting rules (FASB
ASC Topic 718, formerly FAS 123R) for 2009. A discussion of the assumptions
used in calculating the award values may be found at footnote12 to our audited
financial statements.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents bonuses under the Performance Based Compensation
Plan earned based upon financial targets achieved in the specified year and to
be paid in April&nbsp;2008, 2009 and 2010, respectively, for Messrs.&nbsp;Kallet,
Stickels and Dixon. Mr.&nbsp;Haskell&#146;s non-equity incentive compensation is based
upon criteria established in his employment agreement with Bailey &#038; Haskell
Associates, Inc., as described below.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>This column represents the change in actuarial present value of
the Named Executive Officer&#146;s accumulated benefit under the Retirement
Accumulation Plan of Oneida Savings Bank, a non-contributory tax-qualified
defined benefit pension plan utilizing a cash balance plan design.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts in this column reflect what we paid for, or reimbursed, the applicable Names
Executive Officer for the various benefits and perquisites received. A break-down of the various elements of
compensation in this column is set forth in the table provided below.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->123<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD nowrap align="center" colspan="36" style="border-bottom: 1px solid #000000"><B>All Other Compensation</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Employer</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Contributions to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Life and Disability</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dividends</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total All Other</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>401(k) Plan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>ESOP Allocation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Insurance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>On Restricted Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Board Fees</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Auto Expenses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Club Dues</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($) (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($) (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael R. Kallet,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,432</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,856</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,360</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,781</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,025</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,464</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,736</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Eric E. Stickels,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,864</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,025</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,342</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,690</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,292</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,809</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,025</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,754</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas H. Dixon,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,555</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,137</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,025</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,888</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,229</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,137</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,540</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John E. Haskell,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,652</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,770</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,597</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,003</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,399</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">576</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,927</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64,289</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bailey &#038; Haskell</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,306</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">768</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,816</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Associates, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John F. Catanzarita</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,728</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,159</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,622</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,505</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,270</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit Consulting</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,407</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Group, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Based on the fair market value of Oneida Financial Corp. common stock on December
31, 2009 of $8.95.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the cost to Oneida Savings Bank for disability plan agreements and life insurance
plans, as well as coverage under a supplemental executive life and disability plan for Messrs.
Kallet, Stickels, and Dixon.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->124<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Employment Agreements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank and Oneida Financial Corp. have entered into substantially identical
employment agreements with Messrs.&nbsp;Kallet, Stickels, and Dixon (referred to below as the
&#147;executives&#148; or &#147;executive&#148;). Each employment agreement was originally executed on June&nbsp;1, 2009
for a three-year term ending on May&nbsp;31, 2012, (the &#147;Employment Term&#148;). Prior to expiration of the
Employment Term, the employment agreements will automatically be extended for an additional year,
unless the parties negotiate otherwise. The current base salary under the employment agreements is
$310,000, $190,000, $190,000 for Messrs.&nbsp;Kallet, Stickels, and Dixon, respectively. Each
executive&#146;s base salary will be reviewed annually. In addition to the base salary, each executive
will receive all benefits and fringe benefits applicable to executive personnel, and will be
entitled to receive supplemental life and long-term disability insurance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each executive will be entitled to severance payments and benefits in the event of his
termination of employment under specified circumstances, including (i)&nbsp;involuntary termination of
employment for reasons other than cause, disability, or retirement, or (ii)&nbsp;resignation during the
term of the agreement for &#147;good reason.&#148; &#147;Good reason&#148; is defined as (A)&nbsp;the failure to re-elect
the executive to his current position, or a material adverse change in the executive&#146;s position,
duties, responsibilities, title or status that would cause the executive&#146;s position to have less
responsibility, importance, or scope; (B)&nbsp;a relocation of his principal place of employment by more
than 25 miles from Oneida Savings Bank&#146;s principal executive office; (C)&nbsp;a material reduction in
the executive&#146;s benefits and perquisites, including the executive&#146;s base salary, except for any
reduction that is generally applicable to all officers of Oneida Savings Bank; (D)&nbsp;a liquidation or
dissolution of Oneida Savings Bank or Oneida Financial Corp.; or (E)&nbsp;a material breach of the
employment agreement by Oneida Savings Bank or Oneida Financial Corp. In the event of the
executive&#146;s termination of employment as a result of any of these circumstances, the executive will
be entitled to receive a lump sum severance payment within 30&nbsp;days following his date of
termination equal to: (i)&nbsp;the greater of the base salary due for the remaining term of the
employment agreement or for a period of six months, plus (ii)&nbsp;a cash bonus payment equal to the
estimated amount necessary to pay the premiums (calculated on an after tax basis) for the
executive&#146;s supplemental life and disability insurance coverage for 18&nbsp;months following his date of
termination. Each executive will also be entitled to receive continued life insurance and
non-taxable medical and dental coverage for 18&nbsp;months following his date of termination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of the executive&#146;s (i)&nbsp;involuntary termination of employment, for reasons other
than cause, death or disability, or (ii)&nbsp;voluntary resignation for &#147;good reason&#148; within six months
before, or twelve months following, a change in control of Oneida Savings Bank or Oneida Financial
Corp., the executive will be entitled to receive a lump sum severance payment within 30&nbsp;days
following his date of termination equal to (i)&nbsp;2.99 times the average annual compensation paid to
the executive and included as gross income for income tax purposes during the five full calendar
years (or if less, executive&#146;s period of employment) immediately preceding the year during which
the change in control occurs, plus (ii)&nbsp;a cash bonus payment equal to the estimated amount
necessary to pay the premiums (calculated on an after tax basis) for the executive&#146;s supplemental
life and disability insurance coverage for 18&nbsp;months following his date of termination. In
addition, each executive will be entitled to receive continued life insurance and non-taxable
medical and dental coverage for 18&nbsp;months following his date of termination. In the event any
severance payments or benefits provided to the executive constitute an &#147;excess parachute payment&#148;
as defined in Section&nbsp;280G of the Code, the severance payments or benefits under each employment
agreement will be reduced accordingly to avoid penalties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The employment agreements provide that for a period of 24&nbsp;months following termination, each
executive agrees not to compete with Oneida Savings Bank and Oneida Financial Corp. in Madison,
Oneida, or Onondaga County.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->125<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Haskell has entered into an employment agreement with Bailey &#038; Haskell Associates, a
wholly owned subsidiary of Oneida Savings Bank. The employment agreement had a 5-year term (the
&#147;Employment Term&#148;) and was automatically renewable on an annual basis at the end of the Employment
Term unless either party gave a notice of non-renewal to the other party. The Employment Term
currently expires on September&nbsp;30, 2010. Prior to the expiration of the Employment Term, the
parties may negotiate for renewal or extension of the employment agreement or indicate through
written notice at least sixty (60)&nbsp;days prior to expiration an intent not to renew. If the
employment agreement is not terminated at the end of the Employment Term, the employment agreement
will automatically be extended for an additional 12-month period. Under the employment agreement,
Mr.&nbsp;Haskell is entitled to a base salary of at least $150,000 (his current base salary is
$193,640). In addition to the base salary, Mr.&nbsp;Haskell is entitled to participate in retirement
plans and other employee and fringe benefits applicable to all personnel. Mr.&nbsp;Haskell is also
entitled to receive a bonus payment equal to 5% of the consideration paid by Bailey &#038; Haskell
Associates, Inc. upon the acquisition of any company providing insurance agency and brokerage
services, provided that Mr.&nbsp;Haskell materially participated in the consummation of the acquisition.
Furthermore, Mr.&nbsp;Haskell is entitled to receive an additional bonus payment equal to 25% of the
increase in the &#147;target revenue&#148; (as defined in the employment agreement) of the acquired company.
The employment agreement requires that following Mr.&nbsp;Haskell&#146;s termination of employment for any
reason, he will not compete with Bailey &#038; Haskell Associates in the New York counties of Madison,
Oneida, and Onondaga for a period of 36&nbsp;months thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Catanzarita has entered into an employment agreement with Benefit Consulting Group, a
wholly owned subsidiary of Oneida Savings Bank. The employment agreement was effective on January
1, 2006 and will expire on December&nbsp;31, 2010 (the &#147;Employment Term&#148;). Prior to the expiration of
the Employment Term, the parties may negotiate for renewal or extension of the employment agreement
or indicate through written notice at least sixty (60)&nbsp;days prior to expiration an intent not to
renew. If the employment agreement is not terminated at the end of the Employment Term, the
employment agreement will automatically be extended for an additional 12-month period. Under the
employment agreement, Mr.&nbsp;Catanzarita is entitled to a base salary of at least $122,500 (his
current base salary is $181,000). In addition to the base salary, Mr.&nbsp;Catanzarita is entitled to
participate in retirement plans and other employee and fringe benefits applicable to all personnel.
The employment agreement requires that following Mr.&nbsp;Catanzarita&#146;s termination of employment for
any reason, he will not compete with Benefit Consulting Group in any area located within a 75 mile
radius of Syracuse, New York for a period of two years thereafter.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->126<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Plan-Based Awards. </I></B>The following table provides information for the year ended December&nbsp;31,
2009 as to grants of plan-based awards for our Named Executive Officers.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="28" style="border-bottom: 1px solid #000000"><B>Grants of Plan-Based Awards For the Fiscal Year Ended 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>All other option</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>awards: number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Exercise or base</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Grant Date Fair</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>Estimated future payouts under</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>securities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>price of option</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Value of Option</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Non-equity incentive plan awards</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>underlying options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>awards</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Awards</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Grant date</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Threshold ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Target ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Maximum ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(#) (3)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($/Sh)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael R. Kallet</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/31/09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5/18/09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,220</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Eric E. Stickels</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/31/09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice Pres. (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/06/09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,270</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">and Chief Financial</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5/18/09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,270</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas H. Dixon</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/31/09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice Pres., (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/06/09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,620</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chief Credit Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5/18/09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,225</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John E. Haskell</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/31/09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Chief Executive Officer
(2)
Bailey &#038; Haskell
Associates, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents threshold, target and maximum payments achievable under our
Performance Based Compensation Plan earned based upon financial targets to be achieved
during the year ended December&nbsp;31, 2009 and to be paid in March&nbsp;2010 for Messrs.&nbsp;Kallet,
Stickels and Dixon.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Haskell&#146;s non-equity incentive compensation is based upon criteria
established in his employment agreement with Bailey &#038; Haskell Associates, Inc. Please
see the description of Mr.&nbsp;Haskell&#146;s employment agreement set forth above for further
details.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents reload options received upon exercise of stock options when
previously owned common stock was utilized to pay the option exercise price under the
Oneida Financial Corp. 2000 Stock Option Plan.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Benefit Plans</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Performance Based Compensation Plan</I></B><I>. </I>The Performance Based Compensation Plan was established
by Oneida Financial Corp. in 2005 and was amended in January&nbsp;2006. The purpose of the plan is to
provide financial incentives to a select group of executive officers who contribute materially to
the continued growth, development, and future business success of Oneida Financial Corp. Messrs.
Kallet, Stickels, and Dixon are participants in the plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The compensation committee will determine the executive officers who are eligible to
participate in the plan. The participation level of Eligible executives will be based on their
category: category I is reserved for the President and Chief Executive Officer, and category II
applies to all other executive officers. Participants are eligible to receive an annual cash bonus
payment based on the satisfaction of specific targets for each performance metric established by
the compensation committee at the beginning of the fiscal year. For 2009, the compensation
committee used the following three performance metrics of Oneida Financial Corp.: (1)&nbsp;Return on
Average Assets (&#147;ROAA&#148;); (ii)&nbsp;Return on Average Tangible Equity (&#147;ROATE&#148;); and (iii)&nbsp;Net Income
Growth Rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the end of the fiscal year, the compensation committee will establish a potential bonus
award of up to a fixed percentage of 4% of Oneida Financial Corp.&#146;s net income. For 2009, 33.3%,
33.3%, and
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->127<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">33.4% of the total bonus award was determined based on Oneida Financial Corp.&#146;s satisfaction
of certain target performance levels related to ROAA, ROATE, and Net Income Growth Rate,
respectively. If a bonus award has been established, the compensation committee will allocate 50%
of the bonus award to category I participants and 50% of the bonus award to category II
participants. The allocated bonus award will be divided among the participants in each category
based on the participant&#146;s base salary in comparison to the total base salary of all participants
in the category. However, no bonus award will made if for the fiscal year: (i)&nbsp;the ROATE is less
than 7.5%; (ii)&nbsp;the ROAA is less than 0.50%; or (iii)&nbsp;the most recent regulatory examination report
does not reflect an acceptable Uniform Composite Rating.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>2006 Recognition and Retention Plan</I></B>. During the fiscal year ended December&nbsp;31, 2006, Oneida
Financial Corp. adopted, and Oneida Financial Corp.&#146;s stockholders approved, the 2006 Recognition
and Retention Plan (the &#147;2006 Recognition Plan&#148;). The 2006 Recognition Plan authorizes the
issuance of up to 80,000 shares of the common stock of Oneida Financial Corp pursuant to grants of
restricted stock awards. Key employees and outside directors are eligible to receive awards under
the 2006 Recognition Plan. Pursuant to the 2006 Recognition Plan, 2000 restricted stock awards
were granted to each non-employee director, and Messrs.&nbsp;Kallet, Stickels, Dixon and Haskell were
granted 20,000, 10,000, 10,000, and 2,000 restricted stock awards, respectively. The restricted
stock awards that were granted vest ratably over a five-year period. During the year ended
December&nbsp;31, 2009, no additional restricted stock awards were granted to the Named Executive
Officers under the 2006 Recognition Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>2000 Recognition and Retention Plan</I></B>. Oneida Financial Corp. adopted the 2000 Recognition and
Retention Plan (the &#147;2000 Recognition Plan&#148;). The 2000 Recognition Plan authorizes the issuance of
up to 187,285 shares of the common stock of Oneida Financial Corp. (as adjusted for a three-for-two
stock split in 2002 and 2004) pursuant to grants of restricted stock awards. Key employees and
outside directors are eligible to receive awards under the 2000 Recognition Plan. The restricted
stock awards that were granted vested ratably over a five-year period. During the year ended
December&nbsp;31, 2009, no additional restricted stock awards were granted under the 2000 Recognition
Plan to the Named Executive Officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>2000 Option Plan</I></B>. Oneida Financial Corp. adopted the 2000 Stock Option Plan (&#147;2000 Option
Plan&#148;), which authorizes the issuance of 374,568 shares of common stock of Oneida Financial Corp.
(as adjusted for a three-for-two stock split in 2002 and 2004) pursuant to grants of stock option
awards. A stock option gives the recipient the right to purchase shares of common stock of Oneida
Financial Corp. at a specified price for a specified period of time. Awards may be granted as
either incentive or nonstatutory stock options. Incentive stock options have certain tax
advantages and must comply with the requirements of Section&nbsp;422 of the Internal Revenue Code. Only
employees are eligible to receive incentive stock options. Shares of common stock purchased upon
the exercise of a stock option must be paid for in full at the time of exercise either in cash or
with common stock that was owned by the recipient. In addition, the 2000 Option Plan permits the
grant of dividend equivalent rights and reload options.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->128<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Outstanding Equity Awards at Year End. </I></B>The following table sets forth information with
respect to our outstanding equity awards as of December&nbsp;31, 2009 for our Named Executive Officers.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="20" style="border-bottom: 1px solid #000000"><B>Outstanding Equity Awards at Fiscal Year-End</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Option awards</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Stock awards</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>securities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of shares or</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Market value of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>units of stock that</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>shares or units of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unexercised options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option expiration</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>have not vested (#)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>stock that have not</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(#) exercisable (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>price ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>date</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>vested ($) (3)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael R. Kallet,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER">4/25/2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER">4/25/2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,811</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER">4/25/2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Eric E. Stickels,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER">4/25/2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,900</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER">4/25/2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER">4/25/2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER">4/25/2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER">4/25/2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER">4/25/2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas H. Dixon,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER">4/25/2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,900</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER">4/25/2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President, and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER">4/25/2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER">4/25/2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John E. Haskell,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,580</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Chief Executive Officer <BR>

Bailey &#038; Haskell <BR>

Associates, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents options granted and reload options received (upon the exercise of
stock options when previously owned common stock was utilized to pay the option exercise
price<B>) </B>under the Oneida Financial Corp. 2000 Stock Option Plan. The table set forth
below reflects the unexercised reload options received by the Named Executive Officers:</TD>
</TR>

</TABLE>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="27" style="border-bottom: 1px solid #000000"><B>Outstanding Reload Options</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Mr. Kallet</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="9" style="border-bottom: 1px solid #000000"><B>Mr. Stickels</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="9" style="border-bottom: 1px solid #000000"><B>Mr. Dixon</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B># of Unexercised</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B># of Unexercised</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B># of Unexercised</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Reload Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Grant Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exercise Price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Reload Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Grant Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exercise Price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Reload Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Grant Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exercise Price</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4,811
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">6/10/2003
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">17.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3,600</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">8/23/2001
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">9.33</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,500</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">6/11/2003
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">17.13</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">7,160
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">1/21/2005
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">14.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,593</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">5/14/2003
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">17.77</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">5/13/2005
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">14.15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">20,168
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">5/18/2009
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">11.25</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,280</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">1/21/2005
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">14.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,500</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">5/18/2009
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">11.25</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,518</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">5/18/2009
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">11.25</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3,623</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">7/06/2009
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">10.75</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,635</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">7/06/2009
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">10.75</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the remaining unvested restricted stock awarded under the Oneida
Financial Corp. 2006 Recognition and Retention Plan as of December&nbsp;31, 2009. The
remaining unvested shares vest on December&nbsp;31, 2010.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents value of the unvested shares awarded under the Oneida Financial
Corp. 2006 Recognition and Retention Plan at December&nbsp;31, 2009, based on the fair market
value of Oneida Financial Corp. common stock on December&nbsp;31, 2009 of $8.95.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->129<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Options Exercised and Stock Vested</I></B>. The following table sets forth information with
respect to option exercises and common stock awards that have vested during the year ended December
31, 2009 for our Named Executive Officers.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="16" style="border-bottom: 1px solid #000000"><B>Option Exercises and Stock Vested for the Fiscal Year</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Option awards</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Stock awards</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>acquired on</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Value realized on</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>acquired on vesting</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Value realized on</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>exercise (#)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>exercise ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(#)(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>vesting ($)(2)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael R. Kallet,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313,670</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief Executive
Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Eric E. Stickels,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,900</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President and
Chief Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas H. Dixon,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,206</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,612</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,900</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President and
Chief Credit Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John E. Haskell,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,580</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chief Executive Officer
Bailey &#038; Haskell Associates, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares shown in this column represents the vesting of restricted stock
awarded under the Oneida Financial Corp. 2006 Recognition and Retention Plan as of December
31, 2009.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents value at December&nbsp;31, 2009, which is based on the fair market value of Oneida
Financial Corp. common stock on December&nbsp;31, 2009 of $8.95.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Pension Benefits. </I></B>The following table sets forth information with respect to pension
benefits at and for the year ended December&nbsp;31, 2009 for the Named Executive Officers.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="32%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="27%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="12" style="border-bottom: 1px solid #000000"><B>Pension Benefits at and for the Fiscal Year</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Number of years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Present value of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Payments during</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 0px solid #000000"><B>credited service</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>accumulated benefit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>last fiscal year</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Plan name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>(#) (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael R. Kallet,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="LEFT" valign="top">Retirement Accumulation Plan of</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">22</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">438,320</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oneida Savings Bank</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>


<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Eric E. Stickels,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Retirement Accumulation Plan of </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">23</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">136,321</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oneida Savings Bank</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas H. Dixon,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Retirement Accumulation Plan of </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">9</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">69,785</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oneida Savings Bank</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John E. Haskell,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Retirement Accumulation Plan of </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50,583</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oneida Savings Bank</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bailey &#038; Haskell Associates, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The above table represents the account value of the executive&#146;s hypothetical account
balance at December&nbsp;31, 2009 in the Retirement Accumulation Plan of Oneida Savings Bank, a
non-contributory defined benefit pension plan utilizing a cash balance plan design.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>No years of service have been credited since June&nbsp;15, 2004, the date on which the Retirement
Accumulation Plan was frozen.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Tax-Qualified Benefit Plans</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Defined Benefit Plan. </I></B>Oneida Savings Bank maintains the Retirement Accumulation Plan of
Oneida Savings Bank, a tax-qualified defined benefit plan utilizing a cash balance plan design.
Employees of Oneida Savings Bank who are 21 or older and have completed one year of employment are
eligible to participate in the plan. Each participant has an individual retirement account. For
each plan year in which a participant completes one year of service, the participant&#146;s account will
be credited with an allocation equal to a percentage of the participant&#146;s compensation, where the
percentage is determined based on the number of years of service the participant has with Oneida
Savings Bank. As of June&nbsp;15, 2004, the plan was amended to freeze participation and the accrual of benefits thereunder.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->130<!-- /Folio -->
</DIV>



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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, a participant&#146;s retirement benefit will be payable following the participant&#146;s
retirement on or after attaining age 65. However, if a participant terminates employment prior to
age 65, he will be entitled to receive his vested benefit. The participant&#146;s retirement benefit is
equal to his or her accrued benefit under the plan, and will be payable in either a lump sum or
various forms of life annuities or joint and survivor annuities that are offered under the plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>4</I></B><B><I>01(k)</I></B><B><I> Plan. </I></B>Oneida Savings Bank maintains the Oneida Savings Bank 401(k) Profit Savings
Plan, a tax-qualified defined contribution retirement plan, for all employees who have satisfied
the 401(k) plan&#146;s eligibility requirements. All eligible employees can begin participation in the
401(k) plan on the first entry date that coincides with or next follows the date the employee has
completed one year of service. A participant may contribute up to 100% of his or her compensation
to the 401(k) plan, on a pre-tax basis, subject to the limitations imposed by the Internal Revenue
Code. For 2009 and 2010, the salary deferral contribution was $16,500, provided, however that a
participant over age 50 may contribute an additional $5,500 to the 401(k) plan. In addition to
salary deferral contributions, Oneida Savings Bank will make matching contributions equal to 100%
of the participant&#146;s salary deferral contributions for the plan year that is not in excess of 4% of
the participant&#146;s annual salary, plus 50% of the participant&#146;s salary deferral contributions in
excess of 4% of his or her annual salary but not in excess of 6% of the participant&#146;s annual
salary. In addition, Oneida Savings Bank may also provide a discretionary employer contribution.
A participant is always 100% vested in his or her salary deferral contributions and employer
matching contributions. All other employer discretionary contributions vest at a rate of 20% per
year, and will be fully vested upon completion of five years of credited service. However, a
participant will immediately become 100% vested in any discretionary employer contributions
received upon the participant&#146;s death, disability, or attainment of age 65 while employed with
Oneida Savings Bank. Generally, unless the participant elects otherwise, the participant&#146;s benefit
under the 401(k) plan will be payable in the form of a lump sum payment by no later than the last
day of the plan year immediately following the participant&#146;s date of termination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each participant has an individual account under the 401(k) plan and may direct the investment
of his or her account among a variety of investment options or vehicles available. In addition,
participants in the 401(k) plan can purchase shares of Oneida Financial-New common stock through a
new employer stock fund (the &#147;New Employer Stock Fund&#148;) that will be established in connection with
the conversion. Upon consummation of the conversion, all shares of Oneida Financial Corp. common
stock currently held in the Oneida Financial Corp. Stock Fund (the &#147;Old Employer Stock Fund&#148;) under
the 401(k) plan will automatically be converted into shares of Oneida Financial-New common stock
(pursuant to the exchange ratio). As soon as practicable following the closing of the conversion,
the Old Employer Stock Fund will then be merged into the New Employer Stock Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Employee Stock Ownership Plan. </I></B>Oneida Savings Bank maintains the Oneida Savings Bank
Employee Stock Ownership Plan for eligible employees. Employees who are at least 21&nbsp;years old with
at least one year of service are eligible to participate in the plan. The plan borrowed funds from
Oneida Financial Corp. and used those funds to purchase shares of common stock for the plan in
connection with our 1998 stock offering. This loan was fully repaid in 2007 and all the common
stock that was purchased with the loan has been fully allocated to the participants&#146; accounts.
Oneida Savings Bank continues to make discretionary contributions to the employee stock ownership
plan, which the contributions are used to purchase shares of Oneida Financial Corp. common stock on
the open market. In connection with the conversion, all shares of Oneida Financial Corp. common
stock currently held by the employee stock ownership plan will automatically be converted into
shares of Oneida Financial-New common stock pursuant to the exchange ratio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The employee stock ownership plan trustee is expected to purchase, on behalf of the employee
stock ownership plan, 4% of the total number of shares of Oneida Financial-New common stock issued
in
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->131<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the offering. When combined with the common stock that was purchased by the employee stock
ownership plan in connection with the 1998 stock offering of Oneida Financial Corp. that will be
converted to shares of Oneida Financial-New (pursuant to the exchange ratio), the total shares
purchased by the plan will be less than 8% of the shares of Oneida Financial-New that will be
outstanding following the conversion, as required by the Office of Thrift Supervision regulations.
We anticipate that the employee stock ownership plan will fund its stock purchase with a loan from
Oneida Financial-New equal to the aggregate purchase price of the common stock. The loan will be
repaid principally through Oneida Savings Bank&#146;s contribution to the employee stock ownership plan
and dividends payable on the common stock held by the employee stock ownership plan over the
anticipated 10-year term of the loan. The interest rate for the employee stock ownership plan loan
is expected to be an adjustable-rate equal to the prime rate, as published in <I>The Wall Street
Journal</I>, on the closing date of the offering. Thereafter the interest rate will adjust annually.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The trustee will hold the shares purchased by the employee stock ownership plan in an
unallocated suspense account, and shares will be released to the participants&#146; accounts as the loan
is repaid. Shares released from the unallocated suspense account will be allocated to each
eligible participant&#146;s plan account based on the ratio of each participant&#146;s compensation to the
total compensation of all eligible participants. Vested benefits will be payable generally upon
the participants&#146; termination of employment, and will be paid in the form of common stock, or to
the extent participants&#146; accounts contain cash, benefits will be paid in cash. However,
participants have the right to elect to receive their benefits entirely in the form of cash or
common stock, or a combination of both.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under applicable accounting requirements, Oneida Savings Bank will record a compensation
expense for the employee stock ownership plan at the fair market value of the shares as they are
committed to be released from the unallocated suspense account to participants&#146; accounts. The
compensation expense resulting from the release of the common stock from the suspense account and
allocation to plan participants will result in a corresponding reduction in Oneida Financial-New&#146;s
earnings.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->132<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Potential Payments to Named Executive Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth estimates of the amounts that would be payable to the Named
Executive Officers upon the executive&#146;s retirement, termination without cause, termination
following a change in control, disability or death, if such termination was effective as of
December&nbsp;31, 2009. The table does not include vested or accrued benefits under tax-qualified
benefit plans that are disclosed elsewhere in the prospectus. The actual amounts to be paid upon
any future termination can only be determined at the time of such actual separation.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Mr. Kallet</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Mr. Stickels</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Mr. Dixon</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Mr. Haskell</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Mr. Catanzarita</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Discharge without Cause or Resignation
with Good Reason &#151; No Change in
Control</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash Wages (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">749,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">459,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">459,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Life, Health and Welfare Benefits (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,586</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">764,848</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">472,421</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">473,753</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Discharge without Cause or Resignation
with Good Reason &#151;Change in Control</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash Wages (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">926,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">568,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">568,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Life, Health and Welfare Benefits (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,586</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">942,581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">581,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">582,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Disability</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash Wages (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">47,747</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Life, Health and Welfare Benefits (5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">779,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,077,120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">348,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">779,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,077,120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">348,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">47,747</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Death</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash Wages (6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">76,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Life, Health and Welfare Benefits (7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">870,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">550,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">550,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">946,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">596,850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">596,850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Retirement</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash Wages</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Life, Health and Welfare Benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Reflects the cash severance payment as stipulated in each Named Executive Officer&#146;s
employment agreement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Reflects the cost of continued life insurance coverage, non-taxable medical and dental
insurance coverage, through the remaining term of the employment agreement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event the total payment includes an &#147;excess parachute payment&#148; as defined under
Section&nbsp;280G of the Internal Revenue Code, the total payment would be reduced in order to
avoid having an excess parachute payment.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Oneida Savings Bank will be obligated to pay the base salary of Messrs.&nbsp;Kallet, Stickels,
Dixon, and Haskell for 26&nbsp;weeks, 26&nbsp;weeks, 26&nbsp;weeks, and 90&nbsp;days, respectively, which is
reflected above. However, the base salary will be reduced by any benefits received by the
executive under any disability insurance policy or arrangement maintained by Oneida Savings
bank.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Reflects the benefits received under the Named Executive Officer&#146;s supplemental disability
insurance policy. Messrs.&nbsp;Kallet and Stickels are entitled to receive a monthly disability
benefit equal to $11,630 and $5,440, respectively, which is payable until they reach age 65.
Mr.&nbsp;Dixon is entitled to receive a monthly disability benefit equal to $5,440, which is
payable for 5&nbsp;years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Reflects the base salary and payments related to benefit plans that would have otherwise been
due for 90&nbsp;days following the executive&#146;s death.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Reflects the benefits received under the Named Executive Officer&#146;s supplemental life
insurance policy, and also the life insurance policy provided by Oneida Savings Bank to all of
its employees. Messrs.&nbsp;Kallet, Stickels ad Dixon are each entitled to receive an additional
$250,000 (which is not reflected in the table above) in the event that their death is
considered accidental.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->133<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Directors&#146; Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth for the year ended December&nbsp;31, 2009 certain information as to
the total remuneration we paid to our directors, except for any director who is also a Named
Executive Officer. Director compensation paid to directors who also are Named Executive Officers
is reflected above in &#147;Executive Compensation &#151; Summary Compensation Table.&#148;
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="20" style="border-bottom: 1px solid #000000"><B>Director Compensation (3)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fees earned or paid</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>All other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>in cash</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Stock awards</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Option awards</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($) (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($) (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Patricia D. Caprio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,880</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Edward J. Clarke</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,480</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,480</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rodney D. Kent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Richard B. Myers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,680</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nancy E. Ryan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,384</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ralph A. Stevens, M.D.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,884</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gerald N. Volk</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,580</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Frank O. White, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,780</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John Wight, M.D.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,084</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents board stipend plus meeting fees paid when the director attends a board
or committee meeting.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the grant date fair value of the restricted stock awarded under the 2006
Recognition and Retention Plan. 800 restricted stock awards were granted to new
directors in 2009. The shares vest ratably over two years with the first 50% vesting on
December&nbsp;31, 2009. The grant date fair value of the restricted stock awards has been
computed in accordance with the stock based accounting rules (FASB ASC Topic 718,
formerly FAS 123R).</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>As of December&nbsp;31, 2009, the directors have the following outstanding equity
awards: Ms.&nbsp;Caprio has 6,750 option awards and 400 unvested stock awards, Mr.&nbsp;Clarke has
6,444 option awards and 400 unvested stock awards, Mr.&nbsp;Kent has 400 unvested stock
awards, Mr.&nbsp;Myers has 400 unvested stock awards, Ms.&nbsp;Ryan has 400 unvested stock awards,
Dr.&nbsp;Stevens has 400 unvested stock awards, Mr.&nbsp;White has 6,750 option awards and 400
unvested stock awards, and Dr.&nbsp;Wight has 400 unvested stock awards.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors of Oneida Financial Corp. are not separately compensated. Directors of Oneida
Savings Bank receive an annual retainer of $7,500 and a fee of $600 for each Oneida Savings Bank
Board of Directors meeting attended. Directors receive $400 for each committee meeting attended.
Members of the executive committee receive $400 for each executive committee meeting attended. The
Chairman of the Board receives an additional $100 for every Board of Directors meeting attended and
each committee chair receives an additional $100 for every committee meeting attended. Oneida
Savings Bank paid a total of $212,000 in director fees during the year ending December&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Directors are eligible to participate in the 2000 Stock Option Plan and the
2006 Recognition and Retention Plan. Please see the descriptions of each plan set forth above
under the &#147;Executive Compensation &#151; Grants of Plan-Based Awards Table&#148; for further details.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->134<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Benefits to be Considered Following Completion of the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stock-Based Incentive Plan</I></B><B>. </B>Following the stock offering, we intend to adopt a new
stock-based incentive plan that will provide for grants of stock options and restricted common
stock awards. The number of options granted or shares awarded under the plan may not exceed 10%
and 4%, respectively, of the shares sold in the stock offering subject to adjustment as may be
required by Office of Thrift Supervision regulations or policy to reflect stock options or awards
previously made by Oneida Financial Corp. or Oneida Savings Bank if the stock-based incentive plan
is adopted within one year after the stock offering, in accordance with Office of Thrift
Supervision regulations and policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The stock-based incentive plan will not be established sooner than six months after the stock
offering and if adopted within one year after the stock offering would require the approval by
stockholders owning a majority of the outstanding shares of Oneida Financial-New common stock
eligible to be cast. If the stock-based incentive plan is established after one year after the
stock offering, it would require the approval of our stockholders by a majority of votes cast. The
following additional restrictions would apply to our stock-based incentive plan only if the plan is
adopted within one year after the stock offering:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>non-employee directors in the aggregate may not receive more than 30% of the options
and restricted stock awards authorized under the plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any one non-employee director may not receive more than 5% of the options and
restricted stock awards authorized under the plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any officer or employee may not receive more than 25% of the options and restricted
stock awards authorized under the plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any tax-qualified employee stock benefit plans and management stock benefit plans,
in the aggregate, may not hold more than 10% of the shares sold in the offering, unless
Oneida Savings Bank has tangible capital of 10% or more, in which case any
tax-qualified employee stock benefit plans and management stock benefit plans, may be
increased to up to 12% of the shares sold in the offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the options and restricted stock awards may not vest more rapidly than 20% per year,
beginning on the first anniversary of stockholder approval of the plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>accelerated vesting is not permitted except for death, disability or upon a change
in control of Oneida Savings Bank or Oneida Financial-New; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our executive officers or directors must exercise or forfeit their options in the
event that Oneida Savings Bank becomes critically undercapitalized, is subject to
enforcement action or receives a capital directive.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have not yet determined whether we will present the stock-based incentive plan for
stockholder approval within 12&nbsp;months following the completion of the conversion or more than 12
months after the completion of the conversion. In the event either federal or state regulators
change their regulations or policies regarding stock-based incentive plans, including any
regulations or policies restricting the size of awards and vesting of benefits as described above,
the restrictions described above may not be applicable.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Transactions With Certain Related Persons</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All transactions between Oneida Financial Corp. and its executive officers, directors, holders
of 10% or more of the shares of its Common Stock and affiliates thereof, are on terms no less
favorable to Oneida Financial Corp. than could have been obtained by it in arm&#146;s-length
negotiations with unaffiliated persons. Such transactions must be approved by a majority of
independent outside directors of Oneida Financial Corp. not having any interest in the transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;402 of the Sarbanes-Oxley Act of 2002 generally prohibits an issuer from: (1)
extending or maintaining credit; (2)&nbsp;arranging for the extension of credit; or (3)&nbsp;renewing an
extension of credit in the form of a personal loan for an officer or director. There are several
exceptions to this general prohibition, one of which is applicable to Oneida Financial Corp.
Sarbanes-Oxley does not apply to loans made by a depository institution that is insured by the FDIC
and is subject to the insider lending restrictions of the Federal Reserve Act. All loans to Oneida
Savings Bank&#146;s directors and officers are made in conformity with the Federal Reserve Act and
applicable regulations. These loans are made in the ordinary course of business, are made on
substantially the same terms, including interest rates and collateral, as those prevailing at the
time for comparable transactions with other persons, and neither involve more than normal risk of
collectability nor present other unfavorable features.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Director John E. Haskell is the Chief Executive Officer of Bailey &#038; Haskell Associates, Inc.,
the wholly owned insurance agency subsidiary of Oneida Savings Bank. During fiscal 2000 Oneida
Financial Corp. completed the acquisition of Bailey &#038; Haskell Associates, Inc. Under the terms of
the agreement, contingent purchase payments were to be made based upon future performance levels of
the subsidiary over a five-year period. An additional contingent purchase payment in the amount of
$1,556,070 was paid in fiscal 2006 to an entity in which Mr.&nbsp;Haskell has approximately a 50%
beneficial interest. This represents the final payment under the terms of the agreement
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During fiscal 2006 the Bank completed its acquisition of Benefit Consulting Group L.L.C., an
employee benefits consulting and retirement plan administration firm for $3.7&nbsp;million. Thomas J.
Bader, Jerome A. Lindberg, John F. Catanzarita, Donald J. Abernethy, James R. Mersfelder and Pamela
S. Stobnicke were the Members (collectively &#147;Members&#148;) of the selling company. All Members of the
selling company became employees of the resulting company Benefit Consulting Group Inc., as a
wholly owned subsidiary of Oneida Savings Bank. All Members entered into employment agreements
with Benefit Consulting Group, Inc. in substantially the same form as described for Mr.&nbsp;Catanzarita
under the &#147;Employment Agreement&#148; section of this prospectus. Under the terms of the purchase
agreement, contingent purchase payments may be made based upon future performance levels of the
subsidiary over a five-year period. An additional contingent purchase payment in the amount of
$135,417 and $129,044 was paid in fiscal 2009 and 2008 respectively to Benefit Consulting Group
L.L.C. in which Mr.&nbsp;Catanzarita has a beneficial interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Audit Committee charter, the Audit Committee oversees transactions with
related persons and reviews such transactions for potential conflicts of interest on an on-going
basis. Our Conflict of Interest Policy and Code of Conduct requires that our executive officers and
directors disclose any existing or emerging conflicts of interest. In addition, the board of
directors reviews all loans made to directors and executive officers. Other than as described
above, we do not maintain a written policy with respect to related party transactions.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Indemnification of <B>Directors </B>and Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The officers, directors, agents and employees of Oneida Financial-New are indemnified with
respect to certain actions pursuant to Oneida Financial-New&#146;s articles of incorporation and
Maryland law. Maryland law allows Oneida Financial-New to indemnify any person for expenses,
liabilities, settlements,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">judgments and fines in suits in which such person has been made a party by reason of the fact
that he or she is or was a director, officer or employee of Oneida Financial-New. No such
indemnification may be given (i)&nbsp;to the extent that it is proved that the person actually received
an improper benefit or profit in money, property or services for the amount of the benefit or
profit in money, property or services actually received, (ii)&nbsp;to the extent that a judgment or
other final adjudication adverse to the person is entered in a proceeding based on a finding that
the person&#146;s action, or failure to act, was the result of active and deliberate dishonesty and was
material to the cause of action adjudicated, or (iii)&nbsp;to the extent otherwise provided by Maryland
law. The right to indemnification includes the right to be paid the expenses incurred in advance
of final disposition of a proceeding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to our directors, officers and controlling persons by our bylaws or otherwise, we have
been advised that, in the opinion of the Securities and Exchange Commission, such indemnification
is against public policy as expressed in the Securities Act of 1933 and is, therefore,
unenforceable.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="167"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BENEFICIAL OWNERSHIP OF COMMON STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides the beneficial ownership of our common stock held by our
directors and executive officers, individually and as a group, and all individuals known to
management to own more than 5% of our common stock as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010. The business address
of each director and executive officer is 182 Main Street, Oneida, New York 13421. Unless
otherwise indicated, each of the named individuals has sole voting power and sole investment power
with respect to the number of shares shown.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of All</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name of Beneficial Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Directors: </I><SUP style="font-size: 85%; vertical-align: text-top"><I>(2)</I></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael R. Kallet</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">193,286</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.43</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Patricia D. Caprio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">36,050</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Edward J. Clarke</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">26,117</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John E. Haskell</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">119,918</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rodney D. Kent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">68,628</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Richard B. Myers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">52,500</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nancy E. Ryan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">800</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(10)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ralph L. Stevens M.D.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14,117</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(11)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gerald N. Volk</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23,369</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(12)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Frank O. White, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">36,245</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(13)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John A. Wight M.D.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12,989</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(14)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Executive Officers Who Are Not Also Directors:</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas H. Dixon</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">85,972</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.08</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Eric E. Stickels</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">88,683</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(16)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All Directors and Executive Officers
as a Group (13 persons) <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">758,674</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(17)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.54</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Principal Stockholders:</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Oneida Financial, MHC <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP> <BR>
182 Main Street <BR>

Oneida, New York 13421</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,309,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">55.19</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Less than 1%.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>A person is deemed to be the beneficial owner for purposes of this table, of any shares of
common stock if he has shared voting or investment power with respect to such security, or has
a right to acquire beneficial ownership at any time within 60&nbsp;days from the record date. As
used herein, &#147;voting power&#148; is the power to vote or direct the voting of shares and
&#147;investment power&#148; is the power to dispose or direct the disposition of shares. Includes all
shares held directly as well as by spouses and minor children, in trust and other indirect
ownership, over which shares the named individuals effectively exercise sole or shared voting
and investment power. Unless otherwise indicated, the named individual has sole voting and
investment power.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The mailing address for each person is listed as 182 Main Street, Oneida, New York 13421.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Oneida Financial Corp.&#146;s executive officers and directors are also executive officers and
directors of Oneida Financial, MHC, with the exception of John E. Haskell and Edward J.
Clarke.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes shared voting and investment power over 64,117 shares and sole voting and investment
power over 129,169 shares; includes options to purchase 32,140 shares of common stock.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes sole voting and investment power over 36,050 shares; includes options to purchase
6,750 shares of common stock.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes shared voting and investment power over 7,606 shares and sole voting and investment
power over 18,511 shares; includes options to purchase 5,186 shares of common stock.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes shared voting and investment power over 64,117 shares and sole voting and investment
power over 55,801 shares.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes sole voting and investment power over 68,628 shares.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes shared voting and investment power over 5,500 shares and sole voting and investment
power over 47,000 shares.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(10)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes sole voting and investment power over 800 shares.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(11)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes sole voting and investment power over 14,117 shares.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(12)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes shared voting and investment power over 9,069 shares and sole voting and investment
power over 14,300 shares; includes options to purchase 4,500 shares of common stock.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(13)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes shared voting and investment power over 36,245 shares; includes options to purchase
5,492 shares of common stock.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(14)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes sole voting and investment power over 12,989 shares.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(15)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes shared voting and investment power over 12,144 shares and sole voting and investment
power over 73,828 shares; includes options to purchase 12,624 shares of common stock.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(16)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes shared voting and investment power over 22,799 shares and sole voting and investment
power over 65,884 shares; includes options to purchase 17,368 shares of common stock.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(17)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes options to purchase 84,060 shares of common stock.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->138<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="168"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth, for each of Oneida Financial-New&#146;s directors and executive
officers and for all of the directors and executive officers as a group, the following information:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of exchange shares to be held upon consummation of the conversion,
based upon their beneficial ownership of Oneida Financial Corp. common stock as of
&#091;stockholder record date&#093;;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the proposed purchases of subscription shares, assuming sufficient shares of
common stock are available to satisfy their subscriptions; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the total amount of Oneida Financial-New common stock to be held upon
consummation of the conversion.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In each case, it is assumed that subscription shares are sold at the midpoint of the offering
range. See &#147;The Conversion and Offering&#151;Limitations on Common Stock Purchases.&#148; Regulations of
the Office of Thrift Supervision prohibit our directors and officers from selling the shares they
purchase in the offering for one year after the date of purchase.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Proposed Purchases of Stock in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>the Offering (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total Common Stock to be Held</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Name of Beneficial</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Exchange Shares to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares Outstanding</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Be Held (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(3)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Directors:</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael R. Kallet</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176,586</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">214,086</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Patricia D. Caprio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Edward J. Clarke</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,985</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John E. Haskell</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112,057</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.57</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rodney D. Kent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.40</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Richard B. Myers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,964</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nancy E. Ryan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,855</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ralph L. Stevens, M.D.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,897</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gerald N. Volk</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,474</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Frank O. White, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John A. Wight, M.D.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,866</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,866</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Executive Officers Who
Are Not Also
Directors:</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas H. Dixon</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.13</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Eric E. Stickels</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99,770</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.40</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total for Directors and
Executive Officers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">693,119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">167,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,336,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">860,119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.06</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Less than 1%.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes proposed subscriptions, if any, by associates.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Based on information presented in &#147;Beneficial Ownership of Common Stock&#148; assuming an exchange
ratio of 0.9136 at the midpoint of the offering range.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Based upon 7,134,890 total shares outstanding at the midpoint of the offering range.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->139<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="169"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE CONVERSION AND OFFERING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Boards of Directors of Oneida Financial Corp. and Oneida Financial, MHC have adopted the
plan of conversion and reorganization. The plan of conversion and reorganization must also be
approved by the eligible depositors of Oneida Savings Bank and the stockholders of Oneida Financial
Corp. A special meeting of depositors and a special meeting of stockholders have been called for
this purpose. The Office of Thrift Supervision has conditionally approved the plan of conversion
and reorganization; however, such approval does not constitute a recommendation or endorsement of
the plan of conversion and reorganization by that agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The respective Boards of Directors of Oneida Financial, MHC and Oneida Financial Corp. adopted
the plan of conversion and reorganization on February&nbsp;9, 2010. Pursuant to the plan of conversion
and reorganization, our organization will convert from the mutual holding company form of
organization to the fully stock form. Oneida Financial, MHC, the mutual holding company parent of
Oneida Financial Corp., will be merged into Oneida Financial Corp. (Oneida Financial-New), and
Oneida Financial, MHC will no longer exist. Oneida Financial Corp., which owns 100% of Oneida
Savings Bank, will be merged into a new Maryland corporation named Oneida Financial Corp., with the
new Maryland corporation as the surviving entity. As part of the conversion, the ownership
interest of Oneida Financial, MHC in Oneida Financial Corp. will be offered for sale in the stock
offering. When the conversion is completed, all of the outstanding common stock of Oneida Savings
Bank will be owned by Oneida Financial-New, and all of the outstanding common stock of Oneida
Financial-New will be owned by public stockholders. A diagram of our corporate structure before
and after the conversion is set forth in the Summary of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the plan of conversion and reorganization, at the conclusion of the conversion and
offering, each share of Oneida Financial Corp. common stock owned by persons other than Oneida
Financial, MHC will be converted automatically into the right to receive new shares of Oneida
Financial-New common stock determined pursuant to an exchange ratio. The exchange ratio will
ensure that immediately after the exchange of existing shares of Oneida Financial Corp. for new
shares, the public stockholders will own the same aggregate percentage of shares of common stock of
Oneida Financial-New that they owned in Oneida Financial Corp. immediately prior to the conversion,
excluding any shares they purchased in the offering and cash paid in lieu of fractional shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial-New intends to retain between $11.1&nbsp;million and $17.7&nbsp;million of the net
proceeds of the offering and to invest the balance of the net proceeds in Oneida Savings Bank. The
conversion will be consummated only upon the issuance of at least the minimum number of shares of
our common stock offered pursuant to the plan of conversion and reorganization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plan of conversion and reorganization provides that we will offer shares of common stock
for sale in the subscription offering to eligible account holders, our tax-qualified employee
benefit plans, including our employee stock ownership plan and 401(k) plan, supplemental eligible
account holders and other depositors. If all shares are not subscribed for in the subscription
offering, we may, at our discretion, offer common stock for sale in a community offering to members
of the general public, with a preference given in the following order:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Natural persons residing in the New York counties of Chenango, Cortland,
Herkimer, Lewis, Madison, Oneida, Onondaga, Oswego and Otsego; and</TD>
</TR>




</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->140<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oneida Financial Corp.&#146;s public stockholders as of &#091;stockholder record date&#093;.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the right to accept or reject, in whole or in part, any orders to purchase shares of
the common stock received in the community offering. The community offering, if any, may begin at
the same time as, during, or after the subscription offering and must be completed within 45&nbsp;days
after the completion of the subscription offering unless otherwise extended with the approval of
the Office of Thrift Supervision. See &#147;&#151;Community Offering.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also may offer for sale shares of common stock not purchased in the subscription or
community offerings through a syndicated community offering to be managed by Stifel, Nicolaus &#038;
Company, Incorporated. For a more complete description of the syndicated community offering, see
&#147;&#151; Syndicated Community Offering&#148; herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We determined the number of shares of common stock to be offered in the offering based upon an
independent valuation appraisal of the estimated pro forma market value of Oneida Financial-New.
All shares of common stock to be sold in the offering will be sold at $8.00 per share. Investors
will not be charged a commission to purchase shares of common stock. The independent valuation
will be updated and the final number of the shares of common stock to be issued in the offering
will be determined at the completion of the offering. See &#147;&#151;Stock Pricing and Number of Shares to
be Issued&#148; for more information as to the determination of the estimated pro forma market value of
the common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a brief summary of the conversion and is qualified in its entirety by
reference to the provisions of the plan of conversion and reorganization. A copy of the plan of
conversion and reorganization is available for inspection at each branch office of Oneida Savings
Bank and at the Northeast Regional and the Washington, D.C. offices of the Office of Thrift
Supervision. The plan of conversion and reorganization is also filed as an exhibit to Oneida
Financial, MHC&#146;s application to convert from mutual to stock form of which this prospectus is a
part, copies of which may be obtained from the Office of Thrift Supervision. The plan of
conversion and reorganization is also an exhibit to Oneida Financial-New&#146;s Registration Statement
on Form S-1, which is accessible on the Securities and Exchange Commission website, <U>www.sec.gov</U>.
See &#147;Where You Can Find Additional Information.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Reasons for the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors decided to convert to the fully public stock form of ownership and to
conduct the offering at this time to increase our capital position, and to pursue growth and
expansion opportunities. We believe that our conversion to a fully public company and the capital
that we will raise from the sale of our common stock in the offering will facilitate our continued
growth and the successful implementation of our business strategy by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>supporting internal growth through increased lending in the communities we serve;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>improving our capital position during a period of significant economic uncertainty,
especially for the financial services industry;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increasing capital to support acquisitions of financial institutions and other
financial services companies, including insurance agencies, as opportunities arise,
although we do not currently have any arrangements or agreements regarding any specific
acquisition transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>enabling us to enhance existing products and services to meet the needs of our
marketplace;</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->141<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>assisting us in managing interest rate risk; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>improving the liquidity of our shares of common stock and enhancing shareholder
returns through more flexible capital management strategies.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a fully converted stock holding company, we will have greater flexibility in structuring
future mergers and acquisitions, including the form of consideration that we can use to pay for an
acquisition. Our current mutual holding company structure and our relatively small asset size
limit our ability to offer shares of our common stock as consideration for a merger or acquisition
since Oneida Financial, MHC is required to own a majority of our shares of common stock. Potential
sellers often want stock for at least part of the purchase price. Our new stock holding company
structure will enable us to offer stock or cash consideration, or a combination of stock and cash,
and will therefore enhance our ability to compete with other bidders when acquisition opportunities
arise. We do not currently have any agreement or understanding as to any specific acquisition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also are undertaking the conversion at this time to reduce the uncertainty to Oneida
Financial Corp. and its stockholders associated with potential changes in applicable statutes,
regulations and policies affecting mutual holding companies. In this regard, recent legislative
proposals would eliminate our primary federal regulator, the Office of Thrift Supervision, and make
the Board of Governors of the Federal Reserve System the exclusive regulator of all holding
companies, including mutual holding companies. The Federal Reserve Board currently does not allow
mutual holding companies to waive the receipt of dividends from their mid-tier holding company
subsidiaries, and any waived dividends would dilute the ownership interests of minority
stockholders in the event of a second-step conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Approvals Required</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The affirmative vote of a majority of the total votes eligible to be cast by the depositors of
Oneida Savings Bank is required to approve the plan of conversion and reorganization. By their
approval of the plan of conversion and reorganization, the depositors of Oneida Savings Bank will
also be approving the merger of Oneida Financial, MHC into Oneida Financial Corp. The affirmative
vote of the holders of at least two-thirds of the outstanding shares of common stock of Oneida
Financial Corp. and the affirmative vote of the holders of a majority of the outstanding shares of
common stock of Oneida Financial Corp. held by the public stockholders of Oneida Financial Corp.
are also required to approve the plan of conversion and reorganization. The plan of conversion and
reorganization also must be approved by the Office of Thrift Supervision, which has given its
conditional approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Share Exchange Ratio for Current Stockholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office of Thrift Supervision regulations provide that in a conversion of a mutual holding
company to fully stock form, the public stockholders will be entitled to exchange their shares for
common stock of the new holding company, provided that the mutual holding company demonstrates to
the satisfaction of the Office of Thrift Supervision that the basis for the exchange is fair and
reasonable. On the effective date of the conversion, each publicly held share of Oneida Financial
Corp. common stock will be automatically converted into the right to receive a number of shares of
Oneida Financial-New common stock. The number of shares of common stock will be determined
pursuant to the exchange ratio, which ensures that the public stockholders will own the same
percentage of common stock in Oneida Financial-New after the conversion as they held in Oneida
Financial Corp. immediately prior to the conversion, exclusive of their purchase of additional
shares of common stock in the offering and their receipt of cash in lieu of fractional exchange
shares. The exchange ratio is not dependent on the market value of the currently outstanding Oneida
Financial Corp. common stock. The exchange ratio is based on the percentage of Oneida Financial
Corp. common stock held by the public, the independent valuation of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->142<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Oneida Financial-New prepared by RP Financial and the number of shares of common stock issued
in the offering. The exchange ratio is expected to range from approximately 0.7766 exchange shares
for each publicly held share of Oneida Financial Corp. at the minimum of the offering range to
1.2083 exchange shares for each publicly held share of Oneida Financial Corp. at the adjusted
maximum of the offering range.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are currently a stockholder of Oneida Financial Corp., your existing shares will be
canceled and exchanged for shares of Oneida Financial-New. The number of shares you receive will
be based on the final exchange ratio determined as of the closing of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows how the exchange ratio will adjust, based on the number of shares of
common stock issued in the offering. The table also shows how many shares of Oneida Financial-New
a hypothetical owner of Oneida Financial Corp. common stock would receive in the exchange for 100
shares of Oneida Financial Corp. common stock owned at the closing of the conversion, depending on
the number of shares issued in the offering.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>New Shares to be</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Exchanged for Existing</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Equivalent  Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Shares to be Sold in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Shares of Oneida</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total Shares of Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Shares Based</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares to be</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>This Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Financial Corp.</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock to be Issued in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Upon Current Market</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Received for 100</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Conversion and Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Exchange Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Price (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Existing Shares</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minimum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,346,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">55.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,717,781</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">44.81</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,064,656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.7766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Midpoint</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,937,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,197,390</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,134,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,528,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,676,998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,205,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.0507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">105</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15% above Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,207,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,228,548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,435,892</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the value of shares of Oneida Financial-New common stock received in the conversion
by a holder of one share of Oneida Financial Corp., at the exchange ratio, assuming the market
price of $8.00 per share.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All currently outstanding options to purchase shares of Oneida Financial Corp. common
stock will expire on April&nbsp;25, 2010, unless previously exercised.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Exchange of Existing Stockholders&#146; Stock Certificates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion of existing outstanding shares of Oneida Financial Corp. common stock into the
right to receive shares of Oneida Financial-New common stock will occur automatically on the
effective date of the conversion. As soon as practicable after the effective date of the
conversion, our exchange agent will send a transmittal form to each public stockholder of Oneida
Financial Corp. who holds stock certificates. The transmittal forms will contain instructions on
how to exchange stock certificates of Oneida Financial Corp. common stock for stock certificates of
Oneida Financial-New common stock. We expect that stock certificates evidencing shares of Oneida
Financial-New common stock will be distributed within five business days after we receive properly
executed transmittal forms, Oneida Financial Corp. stock certificates and other required documents.
Shares held by public stockholders in street name (such as in a brokerage account) will be
exchanged automatically upon the effective date of the conversion; no transmittal forms will be
mailed relating to these shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractional shares of Oneida Financial-New common stock will be issued to any public
stockholder of Oneida Financial Corp. when the conversion is completed. For each fractional share
that would otherwise be issued to a stockholder who holds a stock certificate, we will pay by check
an amount equal to the product obtained by multiplying the fractional share interest to which the
holder would otherwise be entitled by the $8.00 offering purchase price per share. Payment for
fractional shares will be made as soon as practicable after the receipt by the exchange agent of
the transmittal forms and the
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->143<!-- /Folio -->
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">surrendered Oneida Financial Corp. stock certificates. If your shares of common stock
are held in street name, you will automatically receive cash in lieu of fractional shares in your
account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>You should not forward your stock certificates until you have received transmittal forms,
which will include forwarding instructions. </B>After the conversion, stockholders will not receive
shares of Oneida Financial-New common stock and will not be paid dividends on the shares of Oneida
Financial-New common stock until existing certificates representing shares of Oneida Financial
Corp. common stock are surrendered for exchange in compliance with the terms of the transmittal
form. When stockholders surrender their certificates, any unpaid dividends will be paid without
interest. For all other purposes, however, each certificate that represents shares of Oneida
Financial Corp. common stock outstanding at the effective date of the conversion will be considered
to evidence ownership of shares of Oneida Financial-New common stock into which those shares have
been converted by virtue of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a certificate for Oneida Financial Corp. common stock has been lost, stolen or destroyed,
our exchange agent will issue a new stock certificate upon receipt of appropriate evidence as to
the loss, theft or destruction of the certificate, appropriate evidence as to the ownership of the
certificate by the claimant, and appropriate and customary indemnification, which is normally
effected by the purchase of a bond from a surety company at the stockholder&#146;s expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shares of Oneida Financial-New common stock that we issue in exchange for existing shares
of Oneida Financial Corp. common stock will be considered to have been issued in full satisfaction
of all rights pertaining to such shares of common stock, subject, however, to our obligation to pay
any dividends or make any other distributions with a record date prior to the effective date of the
conversion that may have been declared by us on or prior to the effective date, and which remain
unpaid at the effective date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Effects of Conversion on Depositors, Borrowers and Members</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Continuity</I></B><I>. </I>While the conversion is being accomplished, the normal business of Oneida Savings
Bank of accepting deposits and making loans will continue without interruption. Oneida Savings Bank
will continue to be a New York chartered savings bank and will continue to be regulated by the
Federal Deposit Insurance Corporation and the New York State Banking Department. After the
conversion, Oneida Savings Bank will continue to offer existing services to depositors, borrowers
and other customers. The directors serving Oneida Financial Corp. at the time of the conversion
will be the directors of Oneida Financial-New after the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Deposit Accounts</I></B><I>. </I>Pursuant to the plan of conversion and reorganization, each
depositor of Oneida Savings Bank at the time of the conversion will automatically continue as a
depositor after the conversion, and the deposit balance, interest rate and other terms of such
deposit accounts will not change as a result of the conversion. Each such account will be insured
by the Federal Deposit Insurance Corporation to the same extent as before the conversion.
Depositors will continue to hold their existing certificates, passbooks and other evidences of
their accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Loans</I></B><I>. </I>No loan outstanding from Oneida Savings Bank will be affected by the
conversion, and the amount, interest rate, maturity and security for each loan will remain as it
was contractually fixed prior to the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Voting Rights of Depositors</I></B><I>. </I>At present, all depositors of Oneida Savings Bank have
voting rights in Oneida Financial, MHC as to all matters requiring depositor action. However,
depositors of Oneida Savings Bank do not generally have voting rights except in certain limited
situations, such as
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->144<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the conversion, and the control of Oneida Financial, MHC is vested in its Board of Directors.
Upon completion of the conversion, depositors will no longer have voting rights. Upon completion of
the conversion, all voting rights in Oneida Savings Bank will be vested in Oneida Financial-New as
the sole stockholder of Oneida Savings Bank. The stockholders of Oneida Financial-New will
possess exclusive voting rights with respect to Oneida Financial-New common stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Tax Effects</I></B><I>. </I>We will receive an opinion of counsel or tax advisor with regard to federal and
state income tax consequences of the conversion to the effect that the conversion will not be
taxable for federal or state income tax purposes to Oneida Financial, MHC, Oneida Financial Corp.,
the public stockholders of Oneida Financial Corp., members of Oneida Financial, MHC, eligible
account holders, supplemental eligible account holders, or Oneida Savings Bank. See &#147;&#151;Material
Income Tax Consequences.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Liquidation Rights</I></B><I>. </I>Each depositor in Oneida Savings Bank has both a deposit
account in Oneida Savings Bank and a pro rata ownership interest in the net worth of Oneida
Financial, MHC based upon the deposit balance in his or her account. This ownership interest is
tied to the depositor&#146;s account and has no tangible market value separate from the deposit account.
This interest may only be realized in the event of a complete liquidation of Oneida Financial, MHC
and Oneida Savings Bank. Any depositor who opens a deposit account obtains a pro rata ownership
interest in Oneida Financial, MHC without any additional payment beyond the amount of the deposit.
A depositor who reduces or closes his or her account receives a portion or all of the balance in
the deposit account but nothing for his or her ownership interest in the net worth of Oneida
Financial, MHC, which is lost to the extent that the balance in the account is reduced or closed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consequently, depositors in a stock subsidiary of a mutual holding company normally have no
way of realizing the value of their ownership interest, which has realizable value only in the
unlikely event that Oneida Financial, MHC and Oneida Savings Bank are liquidated. If this occurs,
the depositors of record at that time, as owners, would share pro rata in any residual surplus and
reserves of Oneida Financial, MHC after other claims, including claims of depositors to the amounts
of their deposits, and payments to certain depositors of Oneida Savings Bank under liquidation
accounts that have been established for the benefit of such depositors, are paid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the plan of conversion, however, certain depositors will receive rights in a liquidation
account maintained by Oneida Financial-New representing the amount of (i)&nbsp;Oneida Financial, MHC&#146;s
ownership interest in Oneida Financial Corp.&#146;s total stockholders&#146; equity as of the date of the
latest statement of financial condition used in this prospectus plus (ii)&nbsp;the value of the net
assets of Oneida Financial, MHC as of the date of the latest statement of financial condition of
Oneida Financial, MHC prior to the consummation of the conversion (excluding its ownership of
Oneida Financial Corp.).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial-New will continue to hold the liquidation account for the benefit of Eligible
Account Holders and Supplemental Eligible Account Holders who continue to maintain deposits in
Oneida Savings Bank. The liquidation account is also designed to provide payments to depositors of
their liquidation interests in the event of a liquidation of Oneida Financial-New and Oneida
Savings Bank or of Oneida Savings Bank. Pursuant to the rules and regulations of the Office of
Thrift Supervision, a post-conversion merger, consolidation, sale of bulk assets or similar
combination or transaction with another insured savings institution would not be considered a
liquidation and, in such a transaction, the liquidation account would be assumed by the surviving
institution. See &#147;&#151;Liquidation Rights.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stock Pricing and Number of Shares to be Issued</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plan of conversion and reorganization and federal regulations require that the aggregate
purchase price of the common stock sold in the offering must be based on the appraised pro forma
market
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->145<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">value of the common stock, as determined by an independent valuation. Oneida Savings Bank and
Oneida Financial Corp. have retained RP Financial to prepare an independent valuation appraisal.
For its services in preparing the initial valuation, RP Financial will receive a fee of $50,000 and
$10,000 for expenses and an additional $5,000 for each valuation update, as necessary. Oneida
Savings Bank and Oneida Financial Corp. have agreed to indemnify RP Financial and its employees and
affiliates against specified losses, including any losses in connection with claims under the
federal securities laws, arising out of its services as independent appraiser, except where such
liability results from its negligence or bad faith.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent valuation appraisal considered the pro forma impact of the offering.
Consistent with the Office of Thrift Supervision appraisal guidelines, the appraisal considered
three primary methodologies: the pro forma price-to-book value approach applied to both reported
book value and tangible book value; the pro forma price-to-earnings approach applied to reported
and core earnings; and the pro forma price-to-assets approach. Based on RP Financial&#146;s conclusion
that asset size is not a strong determinant of market value, RP Financial did not place significant
weight on the pro forma price-to-assets approach in reaching its conclusions. RP Financial placed
the greatest emphasis on the price-to-earnings and price-to-book approaches in estimating pro forma
market value. The market value ratios applied in these three methodologies were based upon the
current market valuations of the peer group companies, subject to valuation adjustments applied by
RP Financial to account for differences between Oneida Financial Corp. and the peer group.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent valuation was prepared by RP Financial in reliance upon the information
contained in this prospectus, including the consolidated financial statements of Oneida Financial
Corp. RP Financial also considered the following factors, among others:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the present results and financial condition of Oneida Financial Corp. and the
projected results and financial condition of Oneida Financial-New;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the economic and demographic conditions in Oneida Financial Corp.&#146;s existing market
area;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain historical, financial and other information relating to Oneida Financial
Corp., including the diversification of earnings provided by the subsidiaries;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a comparative evaluation of the operating and financial characteristics of Oneida
Financial Corp. with those of other similarly situated publicly traded savings
institutions located in New York, Pennsylvania and other states in the Mid-Atlantic and
Northeastern United States;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the aggregate size of the offering of the shares of common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the impact of the conversion and offering on Oneida Financial Corp.&#146;s stockholders&#146;
equity and earnings potential;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the proposed dividend policy of Oneida Financial-New; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the trading market for securities of comparable institutions and general conditions
in the market for such securities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included in RP Financial&#146;s independent valuation were certain assumptions as to the pro forma
earnings of Oneida Financial-New after the conversion that were utilized in determining the
appraised value. These assumptions included estimated expenses, an assumed after-tax rate of
return of 2.02% for
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the year ended December&nbsp;31, 2009 on the net offering proceeds and purchases in the open market
of 4% of the common stock issued in the offering by the recognition and retention plan at the $8.00
per share purchase price. See &#147;Pro Forma Data&#148; for additional information concerning these
assumptions. The use of different assumptions may yield different results.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent valuation states that as of February&nbsp;19, 2010, the estimated pro forma market
value, or valuation range, of Oneida Financial-New ranged from a minimum of $48.5&nbsp;million to a
maximum of $65.6&nbsp;million, with a midpoint of $57.1&nbsp;million. The Board of Directors of Oneida
Financial-New decided to offer the shares of common stock for a price of $8.00 per share. The
aggregate offering price of the shares will be equal to the valuation range multiplied by the
percentage of Oneida Financial Corp. common stock owned by Oneida Financial, MHC. The number of
shares offered will be equal to the aggregate offering price of the shares divided by the price per
share. Based on the valuation range, the percentage of Oneida Financial Corp. common stock owned by
Oneida Financial, MHC and the $8.00 price per share, the minimum of the offering range will be
3,346,875 shares, the midpoint of the offering range will be 3,937,500 shares and the maximum of
the offering range will be 4,528,125 shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of Oneida Financial-New reviewed the independent valuation and, in
particular, considered the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oneida Financial Corp.&#146;s financial condition and results of operations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>comparison of financial performance ratios of Oneida Financial Corp. to those of
other financial institutions of similar size;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>market conditions generally and in particular for financial institutions; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the historical trading price of the publicly held shares of Oneida Financial Corp.
common stock.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of these factors are set forth in the independent valuation. The Board of Directors also
reviewed the methodology and the assumptions used by RP Financial in preparing the independent
valuation and believes that such assumptions were reasonable. The offering range may be amended
with the approval of the Office of Thrift Supervision, if required, as a result of subsequent
developments in the financial condition of Oneida Financial Corp. or Oneida Savings Bank or market
conditions generally. In the event the independent valuation is updated to amend the pro forma
market value of Oneida Financial-New to less than $48.5&nbsp;million or more than $75.5&nbsp;million, the
appraisal will be filed with the Securities and Exchange Commission by a post-effective amendment
to Oneida Financial-New&#146;s registration statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The independent valuation is not intended, and must not be construed, as a recommendation of
any kind as to the advisability of purchasing our shares of common stock. RP Financial did not
independently verify our consolidated financial statements and other information that we provided
to them, nor did RP Financial independently value our assets or liabilities. The independent
valuation considers Oneida Savings Bank as a going concern and should not be considered as an
indication of the liquidation value of Oneida Savings Bank. Moreover, because the valuation is
necessarily based upon estimates and projections of a number of matters, all of which may change
from time to time, no assurance can be given that persons purchasing our common stock in the
offering will thereafter be able to sell their shares at prices at or above the $8.00 price per
share.</B>
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following commencement of the subscription offering, the maximum of the valuation range may be
increased by up to 15%, or up to $75.5&nbsp;million, without resoliciting subscribers, which will result
in a corresponding increase of up to 15% in the maximum of the offering range to up to 5,207,344
shares, to reflect changes in the market and financial conditions or demand for the shares. We
will not decrease the minimum of the valuation range and the minimum of the offering range without
a resolicitation of subscribers. The subscription price of $8.00 per share will remain fixed. See
&#147;&#151;Limitations on Common Stock Purchases&#148; as to the method of distribution of additional shares to
be issued in the event of an increase in the offering range of up to 5,207,344 shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the update to the independent valuation at the conclusion of the offering results in an
increase in the maximum of the valuation range to more than $75.5&nbsp;million and a corresponding
increase in the offering range to more than 5,207,344 shares, or a decrease in the minimum of the
valuation range to less than $48.5&nbsp;million and a corresponding decrease in the offering range to
fewer than 3,346,875 shares, then, after consulting with the Office of Thrift Supervision, we may
terminate the plan of conversion and reorganization, cancel deposit account withdrawal
authorizations and promptly return by check all funds received with interest at Oneida Savings
Bank&#146;s passbook savings rate of interest. Alternatively, we may establish a new offering range,
extend the offering period and commence a resolicitation of purchasers or take other actions as
permitted by the Office of Thrift Supervision in order to complete the offering. In the event that
we extend the offering and conduct a resolicitation, purchasers would have the opportunity to
maintain, change or cancel their stock orders within a specified period. If a purchaser does not
respond during the period, his or her stock order will be canceled and payment will be returned
promptly, with interest at Oneida Savings Bank&#146;s passbook savings rate, and deposit account
withdrawal authorizations will be canceled. Any single offering extension will not exceed 90&nbsp;days;
aggregate extensions may not conclude beyond <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2012, which is two years after the
special meeting of depositors to vote on the conversion. An increase in the number of shares to be
issued in the offering would decrease both a subscriber&#146;s ownership interest and Oneida
Financial-New&#146;s pro forma earnings and stockholders&#146; equity on a per share basis while increasing
pro forma earnings and stockholders&#146; equity on an aggregate basis. A decrease in the number of
shares to be issued in the offering would increase both a subscriber&#146;s ownership interest and
Oneida Financial-New&#146;s pro forma earnings and stockholders&#146; equity on a per share basis, while
decreasing pro forma earnings and stockholders&#146; equity on an aggregate basis. For a presentation of
the effects of these changes, see &#147;Pro Forma Data.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copies of the independent valuation appraisal report of RP Financial and the detailed
memorandum setting forth the method and assumptions used in the appraisal report are available for
inspection at the main office of Oneida Savings Bank and as specified under &#147;Where You Can Find
Additional Information.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Subscription Offering and Subscription Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with the plan of conversion and reorganization, rights to subscribe for shares
of common stock in the subscription offering have been granted in the following descending order of
priority. The filling of all subscriptions that we receive will depend on the availability of
common stock after satisfaction of all subscriptions of all persons having prior rights in the
subscription offering and to the maximum, minimum and overall purchase and ownership limitations
set forth in the plan of conversion and reorganization and as described below under &#147;&#151;Limitations
on Common Stock Purchases.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Priority 1: Eligible Account Holders</I></B><I>. </I>Each Oneida Savings Bank depositor with aggregate
deposit account balances of $50.00 or more (a &#147;Qualifying Deposit&#148;) at the close of business on
December&nbsp;31, 2008 ( &#147;Eligible Account Holder&#148;) will receive, without payment therefor,
nontransferable subscription rights to purchase up to the greater of: (i) $300,000 (37,500 shares)
of our common stock; (ii)
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">one-tenth of one percent of the total number of shares of common stock issued in the offering;
or (iii)&nbsp;15 times the product, rounded down to the nearest whole number, obtained by multiplying
the total number of shares of common stock offered by a fraction, the numerator of which is the
amount of the Qualifying Deposit of the Eligible Account Holder and the denominator is the total
amount of Qualifying Deposits of all Eligible Account Holders, subject to the overall purchase and
ownership limitations. See &#147;&#151;Limitations on Common Stock Purchases.&#148; If there are not
sufficient shares available to satisfy all subscriptions, shares will first be allocated so as to
permit each Eligible Account Holder to purchase a number of shares sufficient to make his or her
total allocation equal to the lesser of 100 shares or the number of shares for which he or she
subscribed. Thereafter, unallocated shares will be allocated to each Eligible Account Holder whose
subscription remains unfilled in the proportion that the amount of his or her Qualifying Deposit
bears to the total amount of Qualifying Deposits of all subscribing Eligible Account Holders whose
subscriptions remain unfilled. If an amount so allocated exceeds the amount subscribed for by any
one or more Eligible Account Holders, the excess shall be reallocated among those Eligible Account
Holders whose subscriptions are not fully satisfied until all available shares have been allocated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To ensure proper allocation of our shares of common stock, each Eligible Account Holder must
list on his or her stock order form all deposit accounts in which he or she has an ownership
interest on December&nbsp;31, 2008. In the event of oversubscription, failure to list an account could
result in fewer shares being allocated than if all accounts had been disclosed. In the event of an
oversubscription, the subscription rights of Eligible Account Holders who are also directors or
executive officers of Oneida Financial Corp. or their associates will be subordinated to the
subscription rights of other Eligible Account Holders to the extent attributable to their increased
deposits in the twelve months preceding December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Priority 2: Tax-Qualified Plans</I></B><I>. </I>Our tax-qualified employee plans, including our employee
stock ownership plan and 401(k) plan, will receive, without payment therefor, nontransferable
subscription rights to purchase up to 10% of the shares of common stock issued in the offering,
although our employee stock ownership plan intends to purchase 4.0% of the shares of common stock
issued in the offering (unless additional purchases are necessary to complete the offering at the
minimum of the offering range). If market conditions warrant, in the judgment of its trustees, the
employee stock ownership plan may elect to purchase shares in the open market following the
completion of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Priority 3: Supplemental Eligible Account Holders</I></B><I>. </I>To the extent that there are sufficient
shares of common stock remaining after satisfaction of subscriptions by Eligible Account Holders
and our tax-qualified employee stock benefit plans, each Oneida Savings Bank depositor with a
Qualifying Deposit at the close of business on March&nbsp;31, 2010 who is not an Eligible Account Holder
(&#147;Supplemental Eligible Account Holder&#148;) will receive, without payment therefor, nontransferable
subscription rights to purchase up to the greater of: (i) $300,000 (37,500 shares) of common stock;
(ii)&nbsp;one-tenth of one percent of the total number of shares of common stock issued in the offering;
or (iii)&nbsp;15 times the product, rounded down to the nearest whole number, obtained by multiplying
the total number of shares of common stock to be offered by a fraction, the numerator of which is
the amount of the Qualifying Deposit of the Supplemental Eligible Account Holder and the
denominator is the total amount of Qualifying Deposits of all Supplemental Eligible Account Holders
subject to the overall purchase and ownership limitations. See &#147;&#151;Limitations on Common Stock
Purchases.&#148; If there are not sufficient shares available to satisfy all subscriptions, shares will
be allocated so as to permit each Supplemental Eligible Account Holder to purchase a number of
shares sufficient to make his or her total allocation equal to the lesser of 100 shares of common
stock or the number of shares for which he or she subscribed. Thereafter, unallocated shares will
be allocated to each Supplemental Eligible Account Holder whose subscription remains unfilled in
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the proportion that the amount of his or her Qualifying Deposit bears to the total amount of
Qualifying Deposits of all Supplemental Eligible Account Holders whose subscriptions remain
unfilled.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To ensure proper allocation of common stock, each Supplemental Eligible Account Holder must
list on the stock order form all deposit accounts in which he or she has an ownership interest at
March&nbsp;31, 2010. In the event of oversubscription, failure to list an account could result in fewer
shares being allocated than if all accounts had been disclosed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Priority 4: Other Depositors</I></B><I>. </I>To the extent that there are shares of common stock remaining
after satisfaction of subscriptions by Eligible Account Holders, our tax-qualified employee stock
benefit plans, and Supplemental Eligible Account Holders, each depositor of Oneida Savings Bank as
of the close of business on &#091;SRD&#093; who is not an Eligible Account Holder or Supplemental Eligible
Account Holder (&#147;Other Depositors&#148;) will receive, without payment therefor, nontransferable
subscription rights to purchase up to $300,000 (37,500 shares) of common stock or one-tenth of one
percent of the total number of shares of common stock issued in the offering, subject to the
overall purchase and ownership limitations. See &#147;&#151;Limitations on Common Stock Purchases.&#148; If there
are not sufficient shares available to satisfy all subscriptions, shares will be allocated so as to
permit each Other Depositor to purchase a number of shares sufficient to make his or her total
allocation equal to the lesser of 100 shares of common stock or the number of shares for which he
or she subscribed. Thereafter, available shares will be allocated in the proportion that the
amount of the subscription of each Other Depositor bears to the total amount of the subscriptions
of all Other Depositors whose subscriptions remain unsatisfied. To ensure proper allocation of
common stock, each Other Depositor must list on the stock order form all deposit accounts in which
he or she had an ownership interest at &#091;SRD&#093;. In the event of oversubscription, failure to list an
account could result in fewer shares being allocated than if all accounts had been disclosed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Expiration Date</I></B>. The subscription offering will expire at _: &#95;&#95;&#95;.m., Eastern Time, on
&#091;expiration date&#093;, unless extended by us for up to 45&nbsp;days or such additional periods with the
approval of the Office of Thrift Supervision, if necessary. Subscription rights will expire whether
or not each eligible depositor can be located. We may decide to extend the expiration date of the
subscription offering for any reason, whether or not subscriptions have been received for shares at
the minimum, midpoint or maximum of the offering range. Subscription rights which have not been
exercised prior to the expiration date will become void.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not execute orders until at least the minimum number of shares of common stock have
been sold in the offering. If at least 3,346,875 shares have not been sold in the offering within
45&nbsp;days after &#091;extension date&#093; and the Office of Thrift Supervision has not consented to an
extension, all funds delivered to purchase shares of common stock in the offering will be returned
promptly to the subscribers with interest at Oneida Savings Bank&#146;s passbook savings rate and all
deposit account withdrawal authorizations will be canceled. If an extension beyond <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
2010 is granted by the Office of Thrift Supervision, we will resolicit purchasers in the offering
as described under &#147;&#151;Procedures for Purchasing Shares&#151;Expiration Date.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Community Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent that shares of common stock remain available for purchase after satisfaction of
all subscriptions of Eligible Account Holders, our tax-qualified employee stock benefit plans,
Supplemental Eligible Account Holders and Other Depositors, we may offer shares pursuant to the
plan of conversion and reorganization to members of the general public in a community offering.
Shares will be offered with the following preferences:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Natural persons residing in the New York counties of Chenango, Cortland,
Herkimer, Lewis, Madison, Oneida, Onondaga, Oswego and Otsego;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oneida Financial Corp.&#146;s public stockholders as of &#091;stockholder record date&#093;;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Other members of the general public.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subscribers in the community offering may purchase up to $300,000 (37,500 shares) of common
stock, subject to the overall purchase and ownership limitations. See &#147;&#151;Limitations on Common
Stock Purchases.&#148; The minimum purchase is 25 shares. <B>The opportunity to purchase shares of common
stock in the community offering category is subject to our right, in our sole discretion, to accept
or reject any such orders, in whole or in part, either at the time of receipt of an order or as
soon as practicable following the expiration date of the offering.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we do not have sufficient shares of common stock available to fill the orders of natural
persons residing in the New York counties of Chenango, Cortland, Herkimer, Lewis, Madison, Oneida,
Onondaga, Oswego and Otsego, we will allocate the available shares among those persons in a manner
that permits each of them, to the extent possible, to purchase the lesser of 100 shares or the
number of shares subscribed for by such person. Thereafter, unallocated shares will be allocated
among natural persons residing in the counties listed above whose orders remain unsatisfied on an
equal number of shares basis per order. If oversubscription occurs due to the orders of public
stockholders of Oneida Financial Corp. as of &#091;stockholder record date&#093;, the allocation procedures
described above will apply to the stock orders of such persons. In the event of an
oversubscription among members of the general public, these same allocation procedures will also
apply. In connection with the allocation process, unless the Office of Thrift Supervision permits
otherwise, orders received for Oneida Financial-New common stock in the community offering will
first be filled up to a maximum of two percent of the shares sold in the offering, and thereafter
any remaining shares will be allocated on an equal number of shares basis per order until all
shares have been allocated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;residing&#148; or &#147;resident&#148; as used in this prospectus means any person who occupies a
dwelling within the New York counties of Chenango, Cortland, Herkimer, Lewis, Madison, Oneida,
Onondaga, Oswego and Otsego, has a present intent to remain within this community for a period of
time, and manifests the genuineness of that intent by establishing an ongoing physical presence
within the community, together with an indication that this presence within the community is
something other than merely transitory in nature. We may utilize deposit or loan records or other
evidence provided to us to decide whether a person is a resident. In all cases, however, the
determination shall be in our sole discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Expiration Date. </I></B>The community offering, if any, may begin during or after the subscription
offering, and is currently expected to terminate at the same time as the subscription offering, and
must terminate no more than 45&nbsp;days following the subscription offering unless further extended
with Office of Thrift Supervision approval. Oneida Financial-New may decide to extend the community
offering for any reason and is not required to give purchasers notice of any such extension unless
such period extends beyond &#091;final expiration date&#093;, in which event we will resolicit purchasers in
the offering as described under &#147;&#151;Procedures for Purchasing Shares&#151;Expiration Date.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Syndicated Community Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a final step in the conversion, the plan of conversion and reorganization provides that, if
feasible, all shares of common stock not purchased in the subscription offering and community
offering, may be offered for sale to members of the general public in a syndicated community
offering through a
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">syndicate of registered broker-dealers managed by Stifel, Nicolaus &#038; Company, Incorporated.
We expect that the syndicated community offering, if any, will begin as soon as practicable after
termination of the subscription offering and the community offering. We, in our sole discretion,
have the right to reject orders, in whole or in part, received in the syndicated community
offering. Neither Stifel, Nicolaus &#038; Company, Incorporated nor any registered broker-dealer shall
have any obligation to take or purchase any shares of common stock in the syndicated community
offering; however, Stifel, Nicolaus &#038; Company, Incorporated has agreed to use its best efforts in
the sale of shares in any syndicated community offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The price at which common stock is sold in the syndicated community offering will be the same
price at which shares are offered and sold in the subscription offering and community offering. No
person may purchase more than $300,000 (37,500 shares) of common stock in the syndicated community
offering, subject to the maximum purchase limitations. See &#147;&#151; Limitations on Common Stock
Purchases.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a syndicated community offering is held, Stifel, Nicolaus &#038; Company, Incorporated will
serve as sole book running manager. In such capacity, Stifel, Nicolaus &#038; Company, Incorporated may
form a syndicate of other broker-dealers who are Financial Industry Regulatory Authority member
firms. Neither Stifel, Nicolaus &#038; Company, Incorporated nor any registered broker-dealer will have
any obligation to take or purchase any shares of the common stock in the syndicated community
offering. The syndicated community offering will be conducted in accordance with certain
Securities and Exchange Commission rules applicable to best efforts offerings. Generally under
those rules, Stifel, Nicolaus &#038; Company, Incorporated, a broker-dealer, will deposit funds it
receives prior to closing from interested investors into a separate non-interest-bearing bank
account at a bank other than Oneida Savings Bank. The closing of the syndicated community offering
is subject to conditions set forth in an agency agreement among Oneida Financial Corp., Oneida
Financial, MHC and Oneida Savings Bank on one hand and Stifel, Nicolaus &#038; Company, Incorporated on
the other hand. If and when all the conditions for the closing are met, funds for common stock
sold in the syndicated community offering, less fees and commissions payable by us, will be
delivered promptly to us. If the offering is consummated, but some or all of an interested
investor&#146;s funds are not accepted by us, those funds will be returned to the interested investor
promptly after closing, without interest. If the offering is not consummated, funds in the account
will be returned promptly, without interest, to the potential investor. Normal customer ticketing
will be used for order placement. In the syndicated community offering, order forms will not be
used.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that we sell common stock in a &#147;stand by&#148; underwritten public offering instead of
a syndicated community offering, we have agreed that Stifel, Nicolaus &#038; Company, Incorporated will
have the right to serve as sole book-running manager. Any underwritten public offering will be
conducted on a firm commitment basis. In such case, the underwriters will purchase all shares of
common stock not sold in the subscription offering or the community offering, if any such shares
are purchased. The aggregate price paid to us by or through the underwriters for the shares of
common stock will be the number of shares sold multiplied by the $8.00 price per share, less the
amount of an underwriting discount as negotiated between us and the underwriters and approved by
the Office of Thrift Supervision and the Financial Industry Regulatory Authority. If we determine
to sell stock in an underwritten public offering, the terms of such offering, including the names
of the underwriters participating in such offering, will be described in a supplement to this
prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The syndicated community offering or underwritten public offering will be completed within 45
days after the termination of the subscription offering, unless extended by Oneida Savings Bank
with the approval of the Office of Thrift Supervision.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If for any reason we cannot effect a syndicated community offering or underwritten public
offering of shares of common stock not purchased in the subscription and community offerings, or in
the event that there is an insignificant number of shares remaining unsold after the subscription,
community and syndicated community offerings, we will try to make other arrangements for the sale
of unsubscribed shares, if possible. The Office of Thrift Supervision must approve any such
arrangements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Limitations on Common Stock Purchases</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plan of conversion and reorganization includes the following limitations on the number of
shares of common stock that may be purchased in the offering:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No person may purchase fewer than 25 shares ($200) of common stock or more than
37,500 shares ($300,000);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Tax qualified employee benefit plans, including our employee stock ownership
plan and 401(k) plan, may purchase in the aggregate up to 10% of the shares of common
stock issued in the offering, including shares issued in the event of an increase in
the offering range of up to 15%;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except for the tax qualified employee stock benefit plans, including our
employee stock ownership plan and 401(k) plan, as described above, no person or entity,
together with associates or persons acting in concert with such person or entity, may
purchase more than 75,000 shares ($600,000) in all categories of the offering combined;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Current stockholders of Oneida Financial Corp. are subject to an ownership
limitation. As previously described, current stockholders of Oneida Financial Corp.
will receive shares of Oneida Financial-New common stock in exchange for their existing
shares of Oneida Financial Corp. common stock. The number of shares of common stock
that a stockholder may purchase in the offering, together with associates or persons
acting in concert with such stockholder, when combined with the shares that the
stockholder and his or her associates will receive in exchange for existing Oneida
Financial Corp. common stock, may not exceed 5% of the shares of common stock of Oneida
Financial-New to be issued and outstanding at the completion of the conversion; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The maximum number of shares of common stock that may be purchased in all
categories of the offering by executive officers and directors of Oneida Savings Bank
and their associates, in the aggregate, when combined with shares of common stock
issued in exchange for existing shares, may not exceed 25% of the shares issued in the
conversion.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depending upon market or financial conditions, our Board of Directors, with the approval of
the Office of Thrift Supervision and without further approval of depositors of Oneida Savings Bank,
may decrease or increase the purchase and ownership limitations. If a purchase limitation is
increased, subscribers in the subscription offering who ordered the maximum amount will be given,
and, in our sole discretion, some other large subscribers who through their subscriptions evidence
a desire to purchase the maximum allowable number of shares may be given, the opportunity to
increase their subscriptions up to the then applicable limit. The effect of this type of
resolicitation will be an increase in the number of shares of common stock owned by subscribers who
choose to increase their subscriptions. In the event that the maximum purchase limitation is
increased to 5% of the shares sold in the offering, such limitation may be further increased to
9.99%, provided that orders for Oneida Financial-New common stock exceeding 5% of the shares sold
in the offering shall not exceed in the aggregate 10% of the total shares sold in the offering.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->153<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of an increase in the offering range of up to 5,207,344 shares of common stock,
shares will be allocated in the following order of priority in accordance with the plan of
conversion and reorganization:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to fill the subscriptions of our tax-qualified employee benefit plans,
including the employee stock ownership plan, for up to 4% of the total number of shares
of common stock issued in the offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the event that there is an oversubscription at the Eligible Account Holder,
Supplemental Eligible Account Holder or Other Depositor levels, to fill unfilled
subscriptions of these subscribers according to their respective priorities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to fill unfilled subscriptions in the community offering, with preference
given first to natural persons residing in the New York counties of Chenango, Cortland,
Herkimer, Lewis, Madison, Oneida, Onondaga, Oswego and Otsego, then to Oneida Financial
Corp.&#146;s public stockholders as of &#091;stockholder record date&#093; and then to members of the
general public.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;associate&#148; of a person means:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any corporation or organization, other than Oneida Financial Corp., Oneida
Savings Bank or a majority-owned subsidiary of Oneida Savings Bank, of which the
person is a senior officer, partner or 10% beneficial stockholder;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any trust or other estate in which the person has a substantial beneficial
interest or serves as a trustee or in a similar fiduciary capacity; provided, however,
that for the purposes of subscriptions in the offering and restrictions on the sale of
stock after the conversion, the term &#147;associate&#148; does not include a person who has a
substantial beneficial interest in an employee stock benefit plan of Oneida Savings
Bank, or who is a trustee or fiduciary of such plan, and for purposes of aggregating
total shares that may be held by officers, trustees and directors of Oneida Savings
Bank, Oneida Financial, MHC or Oneida Financial Corp., the term &#147;associate&#148; does not
include any tax-qualified employee stock benefit plan of Oneida Savings Bank; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any blood or marriage relative of the person, who either has the same home as
the person or who is a director or officer of Oneida Financial, MHC, Oneida Financial
Corp. or Oneida Savings Bank.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;acting in concert&#148; means:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>knowing participation in a joint activity or interdependent conscious parallel
action towards a common goal whether or not pursuant to an express agreement; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a combination or pooling of voting or other interests in the securities of an
issuer for a common purpose pursuant to any contract, understanding, relationship,
agreement or other arrangement, whether written or otherwise.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A person or company that acts in concert with another person or company (&#147;other party&#148;) will
also be deemed to be acting in concert with any person or company who is also acting in concert
with that other party, except that any tax-qualified employee stock benefit plan will not be deemed
to be acting in concert with its trustee or a person who serves in a similar capacity solely for
the purpose of determining
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">whether common stock held by the trustee and common stock held by the employee stock benefit
plan will be aggregated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the sole discretion to determine whether prospective purchasers are &#147;associates&#148; or
&#147;acting in concert.&#148; Persons having the same address, and persons exercising subscription rights
through qualifying deposits registered at the same address will be deemed to be acting in concert
unless we determine otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our directors are not treated as associates of each other solely because of their membership
on the Board of Directors. Common stock purchased in the offering will be freely transferable
except for shares purchased by executive officers and directors of Oneida Financial-New or Oneida
Savings Bank and except as described below. Any purchases made by any associate of Oneida
Financial-New or Oneida Savings Bank for the explicit purpose of meeting the minimum number of
shares of common stock required to be sold in order to complete the offering shall be made for
investment purposes only and not with a view toward redistribution. In addition, under Financial
Industry Regulatory Authority guidelines, members of the Financial Industry Regulatory Authority
and their associates are subject to certain restrictions on transfer of securities purchased in
accordance with subscription rights and to certain reporting requirements upon purchase of these
securities. For a further discussion of limitations on purchases of our shares of common stock at
the time of conversion and thereafter, see &#147;&#151;Certain Restrictions on Purchase or Transfer of Our
Shares after Conversion&#148; and &#147;Restrictions on Acquisition of Oneida Financial-New.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Plan of Distribution; Selling Agent Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To assist in the marketing of our common stock, we have retained Stifel, Nicolaus &#038; Company,
Incorporated, which is a broker-dealer registered with the Financial Industry Regulatory Authority.
Stifel, Nicolaus &#038; Company, Incorporated will assist us on a best efforts basis in the offering by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acting as our financial advisor for the conversion and offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>providing administrative services and managing the Stock Information Center;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>educating our employees regarding the offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>targeting our sales efforts, including assisting in the preparation of
marketing materials; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>soliciting orders for common stock.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For these services, Stifel, Nicolaus &#038; Company, Incorporated will receive an advisory and
administrative fee of $30,000 and 1% of the dollar amount of all shares of common stock sold in the
subscription and community offerings. No sales fee will be payable to Stifel, Nicolaus &#038; Company,
Incorporated with respect to shares purchased by officers, directors and employees or their
immediate families and shares purchased by our tax-qualified and non-qualified employee benefit
plans. In the event that Stifel, Nicolaus &#038; Company, Incorporated sells common stock through a
group of broker-dealers in a syndicated community offering, it will be paid a fee equal to 1% of
the dollar amount of total shares sold in the syndicated community offering, which fee along with
the fee payable to selected dealers (which will include Stifel, Nicolaus &#038; Company, Incorporated)
shall not exceed 5.5% in the aggregate. Stifel, Nicolaus &#038; Company, Incorporated will serve as
sole book running manager. Alternatively, in the event that Stifel, Nicolaus &#038; Company,
Incorporated sells common stock through a group of broker-dealers in an underwritten public
offering (for which Stifel, Nicolaus &#038; Company, Incorporated will serve as sole
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">book running manager), the underwriting discount will not exceed 5.5% of the dollar amount of
total shares sold in such offering. Stifel, Nicolaus &#038; Company, Incorporated also will be
reimbursed for allocable expenses in amount not to exceed $25,000 for the subscription offering and
community offering and $30,000 for the syndicated offering and $75,000 for attorney&#146;s fees
(excluding reimbursement for allocable expenses of Stifel, Nicolaus &#038; Company, Incorporated&#146;s
counsel).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that we are required to resolicit subscribers for shares of our common stock in
the subscription and community offerings, Stifel, Nicolaus &#038; Company, Incorporated will be required
to provide significant additional services in connection with the resolicitation (including
repeating the services described above), and we shall pay Stifel, Nicolaus &#038; Company, Incorporated
an additional fee for those services that will not exceed $40,000. In the event of a material
delay in the offering, Stifel, Nicolaus &#038; Company, Incorporated also will be reimbursed for
additional allowable expenses in an amount not to exceed $10,000 and additional attorneys&#146; fees in
an amount not to exceed $20,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will indemnify Stifel, Nicolaus &#038; Company, Incorporated against liabilities and expenses,
including legal fees, incurred in connection with certain claims or litigation arising out of or
based upon untrue statements or omissions contained in the offering materials for the common stock,
including liabilities under the Securities Act of 1933, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some of our directors and executive officers may participate in the solicitation of offers to
purchase common stock. These persons will be reimbursed for their reasonable out-of-pocket expenses
incurred in connection with the solicitation. Other regular employees of Oneida Savings Bank may
assist in the offering, but only in ministerial capacities, and may provide clerical work in
effecting a sales transaction. No offers or sales may be made by tellers or at the teller
counters. No sales activity will be conducted in a Oneida Savings Bank banking office.
Investment-related questions of prospective purchasers will be directed to executive officers or
registered representatives of Stifel, Nicolaus &#038; Company, Incorporated. Our other employees have
been instructed not to solicit offers to purchase shares of common stock or provide advice
regarding the purchase of common stock. We will rely on Rule&nbsp;3a4-1 under the Securities Exchange
Act of 1934, as amended, and sales of common stock will be conducted within the requirements of
Rule&nbsp;3a4-1, so as to permit officers, directors and employees to participate in the sale of common
stock. None of our officers, directors or employees will be compensated in connection with their
participation in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we have engaged Stifel, Nicolaus &#038; Company, Incorporated to act as our records
management agent in connection with the conversion and offering. In its role as records management
agent, Stifel, Nicolaus &#038; Company, Incorporated will coordinate with our data processing contacts
and interface with the Stock Information Center to provide records processing and proxy and stock
order services, including but not limited to: consolidation of deposit accounts and vote
calculation; preparation of information for order forms and proxy cards; interfacing with our
financial printer; recording stock order information; and tabulating proxy votes. For these
services, Stifel, Nicolaus &#038; Company, Incorporated will receive a fee of $20,000 (which may be
negotiated in the event unexpected circumstances arise), and we will have made an advance payment
of $10,000 with respect to this fee. We will also reimburse Stifel, Nicolaus &#038; Company,
Incorporated for its reasonable out-of-pocket expenses associated with its acting as information
agent in an amount not to exceed $5,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Prospectus Delivery</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To ensure that each purchaser receives a prospectus at least 48 hours before the expiration
date of the offering in accordance with Rule&nbsp;15c2-8 of the Securities Exchange Act of 1934, we may
not mail a prospectus any later than five days prior to the expiration date or hand deliver any
later than two days
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">prior to the expiration date. Execution of an order form will confirm receipt of delivery in
accordance with Rule&nbsp;15c2-8. Order forms will only be distributed with or preceded by a prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the syndicated community offering or any underwritten public offering, a prospectus in
electronic format may be made available on the Internet sites or through other online services
maintained by Stifel, Nicolaus &#038; Company, Incorporated or one or more other members of the
syndicate, or by their respective affiliates. In those cases, prospective investors may view
offering terms online and, depending upon the syndicate member, prospective investors may be
allowed to place orders online. The members of the syndicate may agree with us to allocate a
specific number of shares for sale to online brokerage account holders. Any such allocation for
online distributions will be made on the same basis as other allocations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than the prospectus in electronic format, the information on the Internet sites
referenced in the preceding paragraph and any information contained in any other Internet site
maintained by any member of the syndicate is not part of this prospectus or the registration
statement of which this prospectus forms a part, has not been approved and/or endorsed by us or by
Stifel, Nicolaus &#038; Company, Incorporated or any other member of the syndicate in its capacity as
selling agent or syndicate member and should not be relied upon by investors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Lock-up Agreements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We and our directors and executive officers have agreed not to, directly or indirectly, offer,
sell, transfer, pledge, assign, hypothecate or otherwise encumber any shares of our common stock or
options, warrants or other securities exercisable, convertible or exchangeable for our common stock
during the period commencing with the filing of the registration statement for the offering and
conversion and ending 90&nbsp;days after completion of the offering and conversion without the prior
written consent of Stifel, Nicolaus &#038; Company, Incorporated. In addition, except for securities
issued pursuant to existing employee benefit plans in accordance with past practices or securities
issued in connection with a merger or acquisition by us, we have agreed not to issue, offer to sell
or sell any shares of our common stock or options, warrants or other securities exercisable,
convertible or exchangeable for our common stock without the prior written consent of Stifel,
Nicolaus &#038; Company, Incorporated for a period of 90&nbsp;days after completion of the offering and
conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Procedure for Purchasing Shares in the Subscription Offering and Community Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Expiration Date</I></B><I>. </I>The subscription and community offerings will expire at _: &#95;&#95;&#95;.m., Eastern
Time, on &#091;expiration date&#093;, unless extended for up to 45&nbsp;days, with the approval of the Office of
Thrift Supervision, if required. This extension may be approved by us, in our sole discretion,
without further approval or notice to purchasers in the offering. Any extension of the subscription
and/or community offering beyond &#091;final expiration date&#093; would require the Office of Thrift
Supervision&#146;s approval. If the offering is so extended, or if the offering range is decreased or
is increased above the adjusted maximum of the offering range, we will be required to resolicit
purchasers before proceeding with the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We reserve the right in our sole discretion to terminate the offering at any time and for any
reason, in which case we will cancel any deposit account withdrawal orders and promptly return all
funds submitted, with interest at Oneida Savings Bank&#146;s passbook savings rate from the date of
receipt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Use of Stock Order Forms in the Subscription and Community Offerings</I></B><I>. </I>In order to purchase
shares of common stock in the subscription and community offerings, you must properly complete and
sign an original stock order form and remit full payment. We are not required to accept orders
submitted on photocopied or facsimiled order forms. All order forms must be received (not
postmarked) prior to _:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"> &#95;&#95;&#95;.m., Eastern Time, on &#091;expiration date&#093;. We are not required to accept order forms that are
not received by that time, are not signed or are otherwise executed defectively or are received
without full payment or without appropriate withdrawal instructions. We are not required to notify
subscribers of incomplete or improperly executed order forms, and we have the right to waive or
permit the correction of incomplete or improperly executed order forms. We do not represent,
however, that we will do so. You may submit your order form and payment by mail using the stock
order reply envelope provided by overnight delivery to the Stock Information Center address noted
on the order form or by bringing your order form to Oneida Savings Bank&#146;s main office located at
182 Main Street, Oneida, New York. Stock order forms may not be delivered to Oneida Savings Bank&#146;s
other offices. Please do not mail stock order forms to Oneida Savings Bank. Once tendered, an
order form cannot be modified or revoked without our consent. We reserve the absolute right, in
our sole discretion, to reject orders received in the community offering, in whole or in part, at
the time of receipt or at any time prior to completion of the offering. If you are ordering shares
in the subscription offering, you must represent that you are purchasing shares for your own
account and that you have no agreement or understanding with any person for the sale or transfer of
the shares. We have the right to reject any order submitted in the offering by a person who we
believe is making false representations or who we otherwise believe, either alone or acting in
concert with others, is violating, evading, circumventing, or intends to violate, evade or
circumvent the terms and conditions of the plan of conversion. Our interpretation of the terms and
conditions of the plan of conversion and reorganization and of the acceptability of the order forms
will be final.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By signing the order form, you will be acknowledging that the common stock is not a deposit or
savings account and is not federally insured or otherwise guaranteed by Oneida Savings Bank or the
federal government, and that you received a copy of this prospectus. However, signing the order
form will not result in you waiving your rights under the Securities Act of 1933 or the Securities
Exchange Act of 1934.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Payment for Shares</I></B><I>. </I>Payment for all shares of common stock will be required to accompany all
completed order forms for the purchase to be valid. Payment for shares may be made by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>personal check, bank check or money order, made payable to Oneida Financial
Corp.; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>authorization of withdrawal from the types of Oneida Savings Bank deposit
accounts described on the stock order form.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Appropriate means for designating withdrawals from deposit accounts at Oneida Savings Bank are
provided on the order form. The funds designated must be available in the account(s) at the time
the order form is received. A hold will be placed on these funds, making them unavailable to the
depositor. Funds authorized for withdrawal will continue to earn interest within the account at the
contract rate until the offering is completed, at which time the designated withdrawal will be
made. Interest penalties for early withdrawal applicable to certificate accounts will not apply to
withdrawals authorized for the purchase of shares of common stock; however, if a withdrawal results
in a certificate account with a balance less than the applicable minimum balance requirement, the
certificate will be canceled at the time of withdrawal without penalty and the remaining balance
will earn interest at the current passbook rate subsequent to the withdrawal. In the case of
payments made by personal check, these funds must be available in the account(s). Checks and money
orders will be immediately cashed and placed in a segregated account at Oneida Savings Bank and/or
another insured depository institution and will earn interest at Oneida Savings Bank&#146;s passbook
savings rate from the date payment is processed until the offering is completed or terminated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may not remit cash, wire transfers, Oneida Savings Bank line of credit checks, or
third-party checks (including those payable to you and endorsed over to Oneida Financial Corp.).
You may not
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">designate on your stock order form a direct withdrawal from an Oneida Savings Bank retirement
account. See &#147;&#151;Using IRA Funds to Purchase Shares&#148; for information on using such funds.
Additionally, you may not designate a direct withdrawal from Oneida Savings Bank accounts with
check-writing privileges. Please provide a check instead. If you request direct withdrawal, we
reserve the right to interpret that as your authorization to treat those funds as if we had
received a check for the designated amount, and we will immediately withdraw the amount from your
checking account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Once we receive your executed stock order form, it may not be modified, amended or rescinded
without our consent, unless the offering is not completed by <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, in which event
purchasers may be given the opportunity to increase, decrease or rescind their orders for a
specified period of time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulations prohibit Oneida Savings Bank from lending funds or extending credit to any persons
to purchase shares of common stock in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We shall have the right, in our sole discretion, to permit institutional investors to submit
irrevocable orders together with the legally binding commitment for payment and to thereafter pay
for the shares of common stock for which they subscribe in the community offering at any time prior
to 48 hours before the completion of the conversion. This payment may be made by wire transfer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our employee stock ownership plan purchases shares in the offering, it will not be required
to pay for such shares until consummation of the offering, provided that there is a loan commitment
from an unrelated financial institution or Oneida Financial-New to lend to the employee stock
ownership plan the necessary amount to fund the purchase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Using IRA Funds</I></B>. If you are interested in using your individual retirement account funds to
purchase shares of common stock, you must do so through a self-directed individual retirement
account such as a brokerage firm individual retirement account or those offered by Oneida Savings
Bank&#146;s Trust Department. By regulation, Oneida Savings Bank&#146;s individual retirement accounts that
were not established through our Trust Department are not self-directed, so they cannot be invested
in our shares of common stock. Therefore, if you wish to use your funds that are currently in an
Oneida Savings Bank individual retirement account, you may not designate on the order form that you
wish funds to be withdrawn from the account for the purchase of common stock. The funds you wish to
use for the purchase of common stock will have to be transferred to a self-directed account
maintained by an independent trustee such as a brokerage firm or Oneida Savings Bank&#146;s Trust
Department. There will be no early withdrawal or Internal Revenue Service interest penalties for
these transfers. Depositors interested in using funds in an individual retirement account or any
other retirement account to purchase shares of common stock should contact our Stock Information
Center as soon as possible, preferably at least two weeks prior to the end of the offering period,
because processing such transactions takes additional time, and whether such funds can be used may
depend on limitations imposed by the institutions where such funds are currently held. We cannot
guarantee that you will be able to use such funds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Delivery of Stock Certificates</I></B><I>. </I>Certificates representing shares of common stock sold in the
subscription and community offerings will be mailed by first class mail to the persons entitled
thereto at the certificate registration address noted by them on the order form, as soon as
practicable following consummation of the offering and receipt of all necessary regulatory
approvals. Any certificates returned as undeliverable will be held by the transfer agent until
claimed by persons legally entitled thereto or otherwise disposed of in accordance with applicable
law. <B>Until certificates for the shares of common stock are available and delivered to purchasers,
purchasers may not be able to sell the shares of common stock which they ordered, even though the
common stock will have begun trading. </B>Your
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ability to sell shares of common stock before you receive stock certificates will depend upon
the arrangements you may make with your brokerage firm.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Other Restrictions</I></B><I>. </I>Notwithstanding any other provision of the plan of conversion and
reorganization, no person is entitled to purchase any shares of common stock to the extent the
purchase would be illegal under any federal or state law or regulation, including state &#147;blue sky&#148;
regulations, or would violate regulations or policies of the Financial Industry Regulatory
Authority, particularly those regarding free riding and withholding. We may ask for an acceptable
legal opinion from any purchaser as to the legality of his or her purchase and we may refuse to
honor any purchase order if an opinion is not timely furnished. In addition, we are not required
to offer shares of common stock to any person who resides in a foreign country, or in a State of
the United States with respect to which any of the following apply: (i)&nbsp;a small number of persons
otherwise eligible to subscribe for shares under the plan of conversion reside in such state; (ii)
the issuance of subscription rights or the offer or sale of shares of common stock to such persons
would require us, under the securities laws of such state, to register as a broker, dealer,
salesman or agent or to register or otherwise qualify our securities for sale in such state; or
(iii)&nbsp;such registration or qualification would be impracticable for reasons of cost or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Restrictions on Transfer of Subscription Rights and Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Office of Thrift Supervision regulations prohibit any person with subscription rights,
including the Eligible Account Holders, Supplemental Eligible Account Holders and Other Depositors,
from transferring or entering into any agreement or understanding to transfer the legal or
beneficial ownership of the subscription rights issued under the plan of conversion and
reorganization or the shares of common stock to be issued upon their exercise. These rights may be
exercised only by the person to whom they are granted and only for his or her account. When
registering your stock purchase on the order form, you should not add the name(s) of persons who do
not have subscription rights or who qualify only in a lower purchase priority than you do. Doing
so may jeopardize your subscription rights. Each person exercising subscription rights will be
required to certify that he or she is purchasing shares solely for his or her own account and that
he or she has no agreement or understanding regarding the sale or transfer of such shares. The
regulations also prohibit any person from offering or making an announcement of an offer or intent
to make an offer to purchase subscription rights or shares of common stock to be issued upon their
exercise prior to completion of the offering.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We will pursue any and all legal and equitable remedies in the event we become aware of the
transfer of subscription rights, and we will not honor orders that we believe involve the transfer
of subscription rights.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stock Information Center</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our banking office personnel may not, by law, assist with investment-related questions about
the offering. If you have any questions regarding the conversion or offering, please call our
Stock Information Center, toll-free, at 1-877-<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>. The Stock Information Center is open
Monday through Friday between 10:00&nbsp;a.m. and 4:00 p.m., Eastern Time. The Stock Information Center
will be closed on weekends and bank holidays.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Liquidation Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Prior to the Conversion</I>. In the unlikely event that Oneida Financial, MHC is liquidated prior
to the conversion, all claims of creditors of Oneida Financial, MHC would be paid first.
Thereafter, if there were any assets of Oneida Financial, MHC remaining, these assets would be
distributed to certain
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">depositors of Oneida Savings Bank. The amount received by such depositors would be equal to
their pro rata interest in the remaining value of Oneida Financial, MHC after claims of creditors,
based on the relative size of their deposit accounts in Oneida Savings Bank.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>After the Conversion</I>. The plan of conversion provides for the establishment, upon the
completion of the conversion, of a liquidation account by Oneida Financial-New for the benefit of
Eligible Account Holders and Supplemental Eligible Account Holders in an amount equal to (i)&nbsp;Oneida
Financial, MHC&#146;s ownership interest in Oneida Financial Corp.&#146;s total stockholders&#146; equity as of
the date of the latest statement of financial condition used in this prospectus plus (ii)&nbsp;the value
of the net assets of Oneida Financial, MHC as of the date of the latest statement of financial
condition of Oneida Financial, MHC prior to the consummation of the conversion (excluding its
ownership of Oneida Financial Corp.). The plan of conversion also provides the establishment of a
bank liquidation account at Oneida Savings Bank to support the Oneida Financial-New liquidation
account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the unlikely event that Oneida Savings Bank were to liquidate after the conversion, all
claims of creditors, including those of depositors, would be paid first. However, except with
respect to the liquidation account to be established in Oneida Financial-New, a depositor&#146;s claim
would be solely for the principal amount of his or her deposit accounts plus accrued interest.
Depositors generally would not have an interest in the value of the assets of Oneida Savings Bank
or Oneida Financial-New above that amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The liquidation account established by Oneida Financial-New is designed to provide payments to
depositors of their liquidation interests (exchanged for the liquidation rights such persons had in
Oneida Financial MHC) in the event of a liquidation of Oneida Financial-New and Oneida Savings Bank
or a liquidation solely of Oneida Savings Bank. Specifically, in the unlikely event that either
(i)&nbsp;Oneida Savings Bank or (ii)&nbsp;Oneida Financial-New and Oneida Savings Bank were to liquidate
after the conversion, all claims of creditors, including those of depositors, would be paid first,
followed by distribution to depositors as of December&nbsp;31, 2008 and March&nbsp;31, 2010 of their
interests in the liquidation account maintained by Oneida Financial-New. Also, in a complete
liquidation of both entities, or of Oneida Savings Bank alone, when Oneida Financial-New has
insufficient assets (other than the stock of Oneida Savings Bank) to fund its obligation under the
liquidation account due to Eligible Account Holders and Supplemental Eligible Account Holders and
Oneida Savings Bank has positive net worth, Oneida Savings Bank is required to make a distribution
to fund Oneida Financial-New&#146;s remaining obligations under the liquidation account. If Oneida
Financial-New is completely liquidated or sold apart from a sale or liquidation of Oneida Savings
Bank, then the Oneida Financial-New liquidation account will cease to exist and Eligible Account
Holders and Supplemental Eligible Account Holders will receive an equivalent interest in the
liquidation account maintained in Oneida Savings Bank, subject to the same rights and terms as the
Oneida Financial-New liquidation account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the plan of conversion, after two years from the date of conversion and upon the
written request of the Office of Thrift Supervision Oneida Financial-New will transfer the
liquidation account and the depositors&#146; interests in such account to Oneida Savings Bank and the
liquidation account shall thereupon become the liquidation account of Oneida Savings Bank. The
liquidation account also may be transferred to Oneida Savings Bank at the discretion of the board
of directors of Oneida Financial-New no earlier than two years after the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the rules and regulations of the Office of Thrift Supervision, a post-conversion merger,
consolidation, or similar combination or transaction with another depository institution in which
Oneida Financial-New or Oneida Savings Bank is not the surviving institution would not be
considered a liquidation. In such a transaction, the liquidation account would be assumed by the
surviving institution.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->161<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Eligible Account Holder and Supplemental Eligible Account Holder would have an initial
interest in the liquidation account for each deposit account, including savings accounts,
transaction accounts such as negotiable order of withdrawal accounts, money market deposit
accounts, and certificates of deposit, with a balance of $50 or more held in Oneida Savings Bank on
December&nbsp;31, 2008, or March&nbsp;31, 2010 the proportion that the balance of each such Eligible Account
Holders and Supplemental Eligible Account Holders deposit account on December&nbsp;31, 2008, and March
31, 2010, respectively, bears to the balance of all deposit accounts of Eligible Account Holders
and Supplemental Eligible Account Holders in Oneida Savings Bank on such dates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, however, on any December&nbsp;31 annual closing date commencing after the effective date of the
conversion, the amount in any such deposit account is less than the amount in the deposit account
on December&nbsp;31, 2008 or March&nbsp;31, 2010 or any other annual closing date, then the interest in the
liquidation account relating to such deposit account would be reduced from time to time by the
proportion of any such reduction, and such interest will cease to exist if such deposit account is
closed. In addition, no interest in the liquidation account would ever be increased despite any
subsequent increase in the related deposit account. Payment pursuant to liquidation rights of
Eligible Account Holders and Supplemental Eligible Account Holders would be separate and apart from
the payment of any insured deposit accounts to such depositor. Any assets remaining after the above
liquidation rights of Eligible Account Holders and Supplemental Eligible Account Holders are
satisfied would be available for distribution to stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Material Income Tax Consequences</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Completion of the conversion is subject to the prior receipt of an opinion of counsel or tax
advisor with respect to federal and state income tax consequences of the conversion to Oneida
Financial, MHC, Oneida Financial Corp., Oneida Savings Bank, Eligible Account Holders, Supplemental
Eligible Account Holders and Other Depositors of Oneida. Unlike private letter rulings, opinions
of counsel or tax advisors are not binding on the Internal Revenue Service or any state taxing
authority, and such authorities may disagree with such opinions. In the event of such disagreement,
there can be no assurance that Oneida Financial-New or Oneida Savings Bank would prevail in a
judicial proceeding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial, MHC, Oneida Financial Corp., Oneida Savings Bank and Oneida Financial-New
have received an opinion of counsel, Luse Gorman Pomerenk &#038; Schick, P.C., regarding all of the
material federal income tax consequences of the conversion, which includes the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The merger of Oneida Financial, MHC with and into Oneida Financial Corp. will
qualify as a tax-free reorganization within the meaning of Section&nbsp;368(a)(1)(A) of the
Internal Revenue Code.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The constructive exchange of Eligible Account Holders&#146; and Supplemental
Eligible Account Holders&#146; liquidation interests in Oneida Financial, MHC for
liquidation interests in Oneida Financial Corp. will satisfy the continuity of interest
requirement of Section&nbsp;1.368-1(b) of the Federal Income Tax Regulations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>None of Oneida Financial, MHC, Oneida Savings Bank, Eligible Account Holders
nor Supplemental Eligible Account Holders, will recognize any gain or loss on the
transfer of the assets of Oneida Financial, MHC to Oneida Financial Corp. in
constructive exchange for liquidation interests established in Oneida Financial Corp.
for the benefit of such persons who remain depositors or borrowers of Oneida Savings
Bank.</TD>
</TR>



</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The basis of the assets of Oneida Financial, MHC and the holding period of such
assets to be received by Oneida Financial Corp. will be the same as the basis and
holding period in such assets in the hands of Oneida Financial, MHC immediately before
the exchange. (Sections&nbsp;362(b) and 1223(2) of the Internal Revenue Code.)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The merger of Oneida Financial Corp. with and into Oneida Financial-New will
constitute a mere change in identity, form or place of organization within the meaning
of Section&nbsp;368(a)(1)(F) of the Code and therefore will qualify as a tax-free
reorganization within the meaning of Section&nbsp;368(a)(1)(F) of the Code. Neither Oneida
Financial Corp. nor Oneida Financial-New will recognize gain or loss as a result of
such merger. (Sections&nbsp;361(a) and 1032(a) of the Internal Revenue Code).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The basis of the assets of Oneida Financial Corp. and the holding period of
such assets to be received by Oneida Financial-New will be the same as the basis and
holding period in such assets in the hands of Oneida Financial Corp. immediately before
the exchange. (Sections&nbsp;362(b) and 1223(2) of the Internal Revenue Code.)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Current stockholders of Oneida Financial Corp. will not recognize any gain or
loss upon their constructive exchange of Oneida Financial Corp. common stock for Oneida
Financial-New common stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Eligible Account Holders and Supplemental Eligible Account Holders will not
recognize any gain or loss upon their constructive exchange of their liquidation
interests in Oneida Financial Corp. for the liquidation accounts in Oneida
Financial-New.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The constructive exchange of the Eligible Account Holders and Supplemental
Eligible Account Holders liquidation interests in Oneida Financial Corp. for interests
in a liquidation account established in Oneida Financial-New will satisfy the
continuity of interest requirement of Section&nbsp;1.368-1(b) of the Federal Income Tax
Regulations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each stockholder&#146;s aggregate basis in shares of Oneida Financial-New common
stock (including fractional share interests) received in the exchange will be the same
as the aggregate basis of Oneida Financial Corp. common stock surrendered in the
exchange.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each stockholder&#146;s holding period in his or her Oneida Financial-New common
stock received in the exchange will include the period during which the Oneida
Financial Corp. common stock surrendered was held, provided that the Oneida Financial
Corp. common stock surrendered is a capital asset in the hands of the stockholder on
the date of the exchange.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cash received by any current stockholder of Oneida Financial Corp. in lieu of a
fractional share interest in shares of Oneida Financial-New common stock will be
treated as having been received as a distribution in full payment in exchange for a
fractional share interest of Oneida Financial-New common stock, which such stockholder
would otherwise be entitled to receive. Accordingly, a stockholder will recognize gain
or loss equal to the difference between the cash received and the basis of the
fractional share. If the common stock is held by the stockholder as a capital asset,
the gain or loss will be capital gain or loss.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is more likely than not that the fair market value of the nontransferable
subscription rights to purchase Oneida Financial-New common stock is zero. Accordingly,
no gain or</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>loss will be recognized by Eligible Account Holders, Supplemental Eligible Account
Holders or Other Depositors upon distribution to them of nontransferable
subscription rights to purchase shares of Oneida Financial-New common stock.
Eligible Account Holders, Supplemental Eligible Account Holders and Other Depositors
will not realize any taxable income as the result of the exercise by them of the
nontransferable subscriptions rights.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is more likely than not that the fair market value of the benefit provided
by the liquidation account of Oneida Savings Bank supporting the payment of the Oneida
Financial-New liquidation account in the event Oneida Financial-New lacks sufficient
net assets is zero. Accordingly, it is more likely than not that no gain or loss will
be recognized by Eligible Account Holders and Supplemental Eligible Account Holders
upon the constructive distribution to them of such rights in the Oneida Savings Bank
liquidation account as of the effective date of the merger of Oneida Financial Corp.
with and into Oneida Financial-New (Section&nbsp;356(a) of the Code.).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is more likely than not that the basis of the shares of Oneida Financial-New
common stock purchased in the offering by the exercise of nontransferable subscription
rights will be the purchase price. The holding period of the Oneida Financial-New
common stock purchased pursuant to the exercise of nontransferable subscription rights
will commence on the date on which the right to acquire such stock was exercised.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No gain or loss will be recognized by Oneida Financial-New on the receipt of
money in exchange for Oneida Financial-New common stock sold in the offering.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that the tax opinions summarized above address all material federal income tax
consequences that are generally applicable to Oneida Financial, MHC, Oneida Financial Corp., Oneida
Savings Bank, Oneida Financial-New and persons receiving subscription rights and shareholders of
Oneida Financial Corp. With respect to items 8 and 13 above, Luse Gorman Pomerenk &#038; Schick, P.C.
noted that the subscription rights will be granted at no cost to the recipients, are legally
non-transferable and of short duration, and will provide the recipient with the right only to
purchase shares of common stock at the same price to be paid by members of the general public in
any community offering. The firm further noted that RP Financial, LC. has issued a letter that the
subscription rights have no ascertainable fair market value. The firm also noted that the Internal
Revenue Service has not in the past concluded that subscription rights have value. Based on the
foregoing, Luse Gorman Pomerenk &#038; Schick, P.C. believes that it is more likely than not that the
nontransferable subscription rights to purchase shares of common stock have no value. However, the
issue of whether or not the nontransferable subscription rights have value is based on all the
facts and circumstances. If the subscription rights granted to Eligible Account Holders,
Supplemental Eligible Account Holders and Other Depositors are deemed to have an ascertainable
value, receipt of these rights could result in taxable gain to those Eligible Account Holders,
Supplemental Eligible Account Holders and Other Depositors who exercise the subscription rights in
an amount equal to the ascertainable value, and we could recognize gain on a distribution. Eligible
Account Holders, Supplemental Eligible Account Holders and Other Depositors are encouraged to
consult with their own tax advisors as to the tax consequences in the event that subscription
rights are deemed to have an ascertainable value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The opinion as to item 14 above is based on the position that: (i)&nbsp;no holder of an interest
in a liquidation account has ever received a payment attributable to a liquidation account; (ii)
the interests in the liquidation accounts are not transferable; (iii)&nbsp;the amounts due under the
liquidation account with respect to each Eligible Account Holder, Supplemental Eligible Account
Holder will be reduced as their deposits in Oneida Savings Bank are reduced; and (iv)&nbsp;the Oneida
Savings Bank liquidation account payment obligation arises only if Oneida Financial-New lacks
sufficient net assets to fund the liquidation account.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we have received a letter from RP Financial, LC. stating its belief that the
benefit provided by the Oneida Savings Bank liquidation account supporting the payment of the
liquidation account in the event Oneida Financial-New lacks sufficient net assets does not have any
economic value at the time of the conversion. Based on the foregoing, Luse Gorman Pomerenk &#038;
Schick, P.C. believes it is more likely than not that such rights in the Oneida Savings Bank
liquidation account have no value. If such rights are subsequently found to have an economic
value, income may be recognized by each Eligible Account Holder or Supplemental Eligible Account
Holder in the amount of such fair market value as of the date of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The opinion of Luse Gorman Pomerenk &#038; Schick, P.C., unlike a letter ruling issued by the
Internal Revenue Service, is not binding on the Internal Revenue Service and the conclusions
expressed therein may be challenged at a future date. The Internal Revenue Service has issued
favorable rulings for transactions substantially similar to the proposed reorganization and stock
offering, but any such ruling may not be cited as precedent by any taxpayer other than the taxpayer
to whom the ruling is addressed. We do not plan to apply for a letter ruling concerning the
transactions described herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have also received an opinion from Crowe Horwath LLP that the New York state income tax
consequences are consistent with the federal income tax consequences.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The federal and state tax opinions have been filed with the Securities and Exchange Commission
as an exhibit to Oneida Financial-New&#146;s registration statement. See &#147;Where You Can Find Additional
Information.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Certain Restrictions on Purchase or Transfer of Our Shares after Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shares of common stock purchased in the offering by a director or an executive officer of
Oneida Savings Bank generally may not be sold for a period of one year following the closing of the
conversion, except in the event of the death of the director or executive officer. Each certificate
for restricted shares will bear a legend giving notice of this restriction on transfer, and
instructions will be issued to the effect that any transfer within this time period of any
certificate or record ownership of the shares other than as provided above is a violation of the
restriction. Any shares of common stock issued at a later date as a stock dividend, stock split, or
otherwise, with respect to the restricted stock will be similarly restricted. The directors and
executive officers of Oneida Financial-New also will be restricted by the insider trading rules
under the Securities Exchange Act of 1934.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of shares of our common stock by any of our directors, executive officers and their
associates, during the three-year period following the closing of the conversion may be made only
through a broker or dealer registered with the Securities and Exchange Commission, except with the
prior written approval of the Office of Thrift Supervision. This restriction does not apply,
however, to negotiated transactions involving more than 1% of our outstanding common stock or to
purchases of our common stock by our stock option plan or any of our tax-qualified employee stock
benefit plans or non-tax-qualified employee stock benefit plans, including any restricted stock
plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office of Thrift Supervision regulations prohibit Oneida Financial-New from repurchasing its
shares of common stock during the first year following conversion unless compelling business
reasons exist for such repurchases. After one year, the Office of Thrift Supervision does not
impose any repurchase restrictions.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="170"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMPARISON OF STOCKHOLDERS&#146; RIGHTS FOR EXISTING STOCKHOLDERS OF ONEIDA FINANCIAL CORP.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General. </I></B>As a result of the conversion, existing stockholders of Oneida Financial Corp. will
become stockholders of Oneida Financial-New. There are differences in the rights of stockholders
of Oneida Financial Corp. and stockholders of Oneida Financial-New caused by differences between
federal and Maryland law and regulations and differences in Oneida Financial Corp.&#146;s federal stock
charter and bylaws and the Maryland articles of incorporation and bylaws of Oneida Financial-New.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This discussion is not intended to be a complete statement of the differences affecting the
rights of stockholders, but rather summarizes the material differences and similarities affecting
the rights of stockholders. See &#147;Where You Can Find Additional Information&#148; for procedures for
obtaining a copy of Oneida Financial-New&#146;s articles of incorporation and bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Authorized Capital Stock. </I></B>The authorized capital stock of Oneida Financial Corp. consists of
20,000,000 shares of common stock, $0.10 par value per share, and 1,000,000 shares of serial
preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The authorized capital stock of Oneida Financial-New consists of 30,000,000 shares of common
stock, $0.01 par value per share, and 10,000,000 shares of preferred stock, par value $0.01 per
share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Maryland General Corporation Law and the articles of incorporation of Oneida
Financial-New, the board of directors may increase or decrease the number of authorized shares
without stockholder approval. Stockholder approval is required to increase or decrease the number
of authorized shares of Oneida Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The charter of Oneida Financial Corp. and the articles of incorporation of
Oneida Financial-New authorize the board of directors to establish one or more series of preferred
stock and, for any series of preferred stock, to determine the terms and rights of the series,
including voting rights, dividend rights, conversion and redemption rates and liquidation
preferences. As a result of the ability to fix voting rights for a series of preferred stock, our
board of directors has the power, to the extent consistent with its fiduciary duty, to issue a
series of preferred stock to persons friendly to management in order to attempt to block a hostile
tender offer, merger or other transaction by which a third party seeks control. We currently have
no plans for the issuance of additional shares for such purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Issuance of Capital Stock. </I></B>Pursuant to applicable laws and regulations, Oneida Financial, MHC
is required to own not less than a majority of the outstanding shares of Oneida Financial Corp.
common stock. Oneida Financial, MHC will no longer exist following consummation of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The articles of incorporation of Oneida Financial-New do not contain restrictions on the
issuance of shares of capital stock to directors, officers or controlling persons, whereas Oneida
Financial Corp.&#146;s stock charter restricts such issuances to general public offerings, or to
directors for qualifying shares, unless the share issuance or the plan under which they would
generally be issued has been approved by the stockholders. However, stock-based compensation plans,
such as stock option plans and restricted stock plans, would have to be submitted for approval by
Oneida Financial-New stockholders due to requirements of the Nasdaq Stock Market and in order to
qualify stock options for favorable federal income tax treatment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Voting Rights. </I></B>Neither Oneida Financial Corp.&#146;s stock charter or bylaws nor the articles of
incorporation or bylaws of Oneida Financial-New provide for cumulative voting for the election of
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">directors. For additional information regarding voting rights, see &#147;&#151;Limitations on Voting Rights
of Greater-than-10% Stockholders&#148; below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Payment of Dividends. </I></B>Oneida Financial Corp.&#146;s ability to pay dividends depends, to a large
extent, upon Oneida Savings Bank&#146;s ability to pay dividends to Oneida Financial Corp., and the
ability of Oneida Savings Bank to pay dividends to Oneida Financial Corp. is restricted by New York
laws. Under New York Banking Law, dividends may be paid by Oneida Savings Bank only out of net
profits. A dividend may not be declared or paid if there is any impairment of capital stock.
Dividends may also not be declared or paid if Oneida Savings Bank is in default in payment of any
assessment due to the Federal Deposit Insurance Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The same restrictions will apply to Oneida Savings Bank&#146;s payment of dividends to Oneida
Financial-New. In addition, Maryland law generally provides that Oneida Financial-New is limited
to paying dividends in an amount equal to its capital surplus over payments that would be owed upon
dissolution to stockholders whose preferential rights upon dissolution are superior to those
receiving the dividend, and to an amount that would not make it insolvent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Board of Directors</I></B><B>. </B>Oneida Financial Corp.&#146;s bylaws and the articles of incorporation and
bylaws of Oneida Financial-New require the board of directors to be divided into three classes and
that the members of each class shall be elected for a term of three years and until their
successors are elected and qualified, with one class being elected annually.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Oneida Financial Corp.&#146;s bylaws, any vacancies on the board of directors of Oneida
Financial Corp. may be filled by the affirmative vote of a majority of the remaining directors
although less than a quorum of the board of directors. Persons elected by the board of directors of
Oneida Financial Corp. to fill vacancies may only serve until the next election of directors by
stockholders. Under the bylaws of Oneida Financial-New, any vacancy occurring on the board of
directors, including any vacancy created by reason of an increase in the number of directors, may
be filled only by the affirmative vote of two-thirds of the remaining directors, and any director
so chosen shall hold office for the remainder of the term to which the director has been elected
and until his or her successor is elected and qualified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Oneida Financial Corp.&#146;s bylaws, any director may be removed for cause by the holders of
a majority of the outstanding voting shares. The articles of incorporation of Oneida Financial-New
provide that any director may be removed for cause by the holders of at least a majority of the
outstanding voting shares of Oneida Financial-New.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Limitations on Liability. </I></B>The charter and bylaws of Oneida Financial Corp. do not limit the
personal liability of directors or officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The articles of incorporation of Oneida Financial-New provide that directors and officers will not be
personally liable for monetary damages to Oneida Financial-New for certain actions as directors or officers,
except for (i)&nbsp;receipt of an improper personal benefit from their positions as directors or officers, (ii)
actions or omissions that are determined to have involved active and deliberate dishonesty, or
(iii)&nbsp;to the extent allowed by Maryland law. These provisions might, in certain instances,
discourage or deter stockholders or management from bringing a lawsuit against directors or officers for a
breach of their duties even though such an action, if successful, might benefit Oneida
Financial-New.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Indemnification of Directors, Officers, Employees and Agents. </I></B>Under current Office of Thrift
Supervision regulations, Oneida Financial Corp. shall indemnify its directors, officers and
employees for any costs incurred in connection with any litigation involving such person&#146;s
activities as a director, officer or employee if such person obtains a final judgment on the merits
in his or her favor. In addition,
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">indemnification is permitted in the case of a settlement, a final judgment against such person, or
final judgment other than on the merits, if a majority of disinterested directors determines that
such person was acting in good faith within the scope of his or her employment as he or she could
reasonably have perceived it under the circumstances and for a purpose he or she could reasonably
have believed under the circumstances was in the best interests of Oneida Financial Corp. or its
stockholders. Oneida Financial Corp. also is permitted to pay ongoing expenses incurred by a
director, officer or employee if a majority of disinterested directors concludes that such person
may ultimately be entitled to indemnification. Before making any indemnification payment, Oneida
Financial Corp. is required to notify the Office of Thrift Supervision of its intention, and such
payment cannot be made if the Office of Thrift Supervision objects to such payment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The articles of incorporation of Oneida Financial-New provide that it shall indemnify its
current and former directors and officers to the fullest extent required or permitted by Maryland
law, including the advancement of expenses. Maryland law allows Oneida Financial-New to indemnify
any person for expenses, liabilities, settlements, judgments and fines in suits in which such
person has been made a party by reason of the fact that he or she is or was a director, officer or
employee of Oneida Financial-New. No such indemnification may be given if the acts or omissions of
the person are adjudged to be in bad faith and material to the matter giving rise to the
proceeding, if such person is liable to the corporation for an unlawful distribution, or if such
person personally received a benefit to which he or she was not entitled. The right to
indemnification includes the right to be paid the expenses incurred in advance of final disposition
of a proceeding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Special Meetings of Stockholders. </I></B>Oneida Financial Corp.&#146;s bylaws provide that special
meetings of Oneida Financial Corp.&#146;s stockholders may be called by the Chairman, the president, a
majority of the members of the board of directors or the holders of not less than one-tenth of the
outstanding capital stock of Oneida Financial Corp. entitled to vote at the meeting. The bylaws of
Oneida Financial-New provide that special meetings of the stockholders of Oneida Financial-New may
be called by the president, by a majority vote of the total authorized directors, or upon the
written request of stockholders entitled to cast at least a majority of all votes entitled to vote
at the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stockholder Nominations and Proposals. </I></B>Oneida Financial Corp.&#146;s bylaws provide that
stockholders may submit nominations for election of directors at an annual meeting of stockholders
and may propose any new business to be taken up at such a meeting by filing the proposal in writing
with Oneida Financial Corp. at least five days before the date of any such meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The bylaws of Oneida Financial-New provide that any stockholder desiring to make a nomination
for the election of directors or a proposal for new business at a meeting of stockholders must
submit written notice to Oneida Financial-New at least 80&nbsp;days prior and not earlier than 90&nbsp;days
prior to such meeting. However, if less than 90&nbsp;days&#146; notice or prior public disclosure of the
date of the meeting is given to stockholders, such written notice must be submitted by a
stockholder not later than the tenth day following the day on which notice of the meeting was
mailed to stockholders or such public disclosure was made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management believes that it is in the best interests of Oneida Financial-New and its
stockholders to provide sufficient time to enable management to disclose to stockholders
information about a dissident slate of nominations for directors. This advance notice requirement
may also give management time to solicit its own proxies in an attempt to defeat any dissident
slate of nominations, should management determine that doing so is in the best interests of
stockholders generally. Similarly, adequate advance notice of stockholder proposals will give
management time to study such proposals and to determine whether to recommend to the stockholders
that such proposals be adopted. In certain instances, such
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->168<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provisions could make it more difficult to oppose management&#146;s nominees or proposals, even if
stockholders believe such nominees or proposals are in their best interests.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stockholder Action Without a Meeting. </I></B>The bylaws of Oneida Financial Corp. provide that any
action to be taken or which may be taken at any annual or special meeting of stockholders may be
taken if a consent in writing, setting forth the actions so taken, is given by the holders of all
outstanding shares entitled to vote. The bylaws of Oneida Financial-New do not provide for action
to be taken by stockholders without a meeting. Under Maryland law, action may be taken by
stockholders without a meeting if all stockholders entitled to vote on the action consent to taking
such action without a meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stockholder&#146;s Right to Examine Books and Records. </I></B>A federal regulation, which is applicable to
Oneida Financial Corp., provides that stockholders may inspect and copy specified books and records
after proper written notice for a proper purpose. Maryland law provides that a stockholder may
inspect a company&#146;s bylaws, stockholder minutes, annual statement of affairs and any voting trust
agreements. However, only a stockholder or group of stockholders who together, for at least six
months, hold at least 5% of the company&#146;s total shares, have the right to inspect a company&#146;s stock
ledger, list of stockholders and books of accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Limitations on Voting Rights of Greater-than-10% Stockholders. </I></B>The articles of incorporation
of Oneida Financial-New provide that no beneficial owner, directly or indirectly, of more than 10%
of the outstanding shares of common stock will be permitted to vote any shares in excess of such
10% limit. Oneida Financial Corp.&#146;s charter does not provide such a limit on voting common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, Office of Thrift Supervision regulations provide that for a period of three years
following the date of the completion of the offering, no person, acting singly or together with
associates in a group of persons acting in concert, may directly or indirectly offer to acquire or
acquire the beneficial ownership of more than 10% of a class of Oneida Financial-New&#146;s equity
securities without the prior written approval of the Office of Thrift Supervision. Where any person
acquires beneficial ownership of more than 10% of a class of Oneida Financial-New&#146;s equity
securities without the prior written approval of the Office of Thrift Supervision, the securities
beneficially owned by such person in excess of 10% may not be voted by any person or counted as
voting shares in connection with any matter submitted to the stockholders for a vote, and will not
be counted as outstanding for purposes of determining the affirmative vote necessary to approve any
matter submitted to the stockholders for a vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Mergers, Consolidations and Sales of Assets. </I></B>A federal regulation applicable to Oneida
Financial Corp. generally requires the approval of two-thirds of the board of directors of Oneida
Financial Corp. and the holders of two-thirds of the outstanding stock of Oneida Financial Corp.
entitled to vote thereon for mergers, consolidations and sales of all or substantially all of
Oneida Financial Corp.&#146;s assets. Such regulation permits Oneida Financial Corp. to merge with
another corporation without obtaining the approval of its stockholders if:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it does not involve an interim savings institution;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oneida Financial Corp.&#146;s federal stock charter is not changed;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>each share of Oneida Financial Corp.&#146;s stock outstanding immediately prior to
the effective date of the transaction will be an identical outstanding share or a
treasury share of Oneida Financial Corp. after such effective date; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>either:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no shares of voting stock of Oneida Financial Corp. and no
securities convertible into such stock are to be issued or delivered under the
plan of combination; or</TD>
</TR>



</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the authorized but unissued shares or the treasury shares of
voting stock of Oneida Financial Corp. to be issued or delivered under the plan
of combination, plus those initially issuable upon conversion of any securities
to be issued or delivered under such plan, do not exceed 15% of the total shares of voting stock of Oneida Financial Corp. outstanding immediately prior
to the effective date of the transaction.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Maryland law, as may be made applicable by the board of directors of Oneida
Financial-New pursuant to its bylaws, &#147;business combinations&#148; between Oneida Financial-New and an
interested stockholder or an affiliate of an interested stockholder are prohibited for five years
after the most recent date on which the interested stockholder becomes an interested stockholder.
These business combinations include a merger, consolidation, statutory share exchange or, in
circumstances specified in the statute, certain transfers of assets, certain stock issuances and
transfers, liquidation plans and reclassifications involving interested stockholders and their
affiliates or issuance or reclassification of equity securities. Maryland law defines an interested
stockholder as: (i)&nbsp;any person who beneficially owns 10% or more of the voting power of Oneida
Financial-New&#146;s voting stock after the date on which Oneida Financial-New had 100 or more
beneficial owners of its stock; or (ii)&nbsp;an affiliate or associate of Oneida Financial-New at any
time after the date on which Oneida Financial-New had 100 or more beneficial owners of its stock
who, within the two-year period prior to the date in question, was the beneficial owner of 10% or
more of the voting power of the then-outstanding voting stock of Oneida Financial-New. A person is
not an interested stockholder under the statute if the board of directors approved in advance the
transaction by which the person otherwise would have become an interested stockholder. However, in
approving a transaction, the board of directors may provide that its approval is subject to
compliance, at or after the time of approval, with any terms and conditions determined by the
board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the five-year prohibition, any business combination between Oneida Financial-New and an
interested stockholder generally must be recommended by the board of directors of Oneida
Financial-New and approved by the affirmative vote of at least: (i)&nbsp;80% of the votes entitled to be
cast by holders of outstanding shares of voting stock of Oneida Financial-New; and (ii)&nbsp;two-thirds
of the votes entitled to be cast by holders of voting stock of Oneida Financial-New other than
shares held by the interested stockholder with whom or with whose affiliate the business
combination is to be effected or held by an affiliate or associate of the interested stockholder.
These super-majority vote requirements do not apply if Oneida Financial-New&#146;s common stockholders
receive a minimum price, as defined under Maryland law, for their shares in the form of cash or
other consideration in the same form as previously paid by the interested stockholder for its
shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Evaluation of Offers. </I></B>The articles of incorporation of Oneida Financial-New provide that its
board of directors, when evaluating a transaction that would or may involve a change in control of
Oneida Financial-New (whether by purchases of its securities, merger, consolidation, share
exchange, dissolution, liquidation, sale of all or substantially all of its assets, proxy
solicitation or otherwise), may, in connection with the exercise of its business judgment in
determining what is in the best interests of Oneida Financial-New and its stockholders and in
making any recommendation to the stockholders, give due consideration to all relevant factors,
including, but not limited to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the economic effect, both immediate and long-term, upon Oneida Financial-New&#146;s
stockholders, including stockholders, if any, who do not participate in the
transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the social and economic effect on the present and future employees, creditors and
customers of, and others dealing with, Oneida Financial-New and its subsidiaries and on
the communities in which Oneida Financial-New and its subsidiaries operate or are
located;
</TD>
</TR>
</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the proposal is acceptable based on the historical, current or projected
future operating results or financial condition of Oneida Financial-New;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether a more favorable price could be obtained for Oneida Financial-New&#146;s stock or
other securities in the future;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the reputation and business practices of the other entity to be involved in the
transaction and its management and affiliates as they would affect the employees of
Oneida Financial-New and its subsidiaries;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the future value of the stock or any other securities of Oneida Financial-New or the
other entity to be involved in the proposed transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any antitrust or other legal and regulatory issues that are raised by the proposal;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the business and historical, current or expected future financial condition or
operating results of the other entity to be involved in the transaction, including, but
not limited to, debt service and other existing financial obligations, financial
obligations to be incurred in connection with the proposed transaction, and other
likely financial obligations of the other entity to be involved in the proposed
transaction; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ability of Oneida Financial-New to fulfill its objectives as a financial
institution holding company and on the ability of its subsidiary financial
institution(s) to fulfill the objectives of a federally insured financial institution
under applicable statutes and regulations.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the board of directors determines that any proposed transaction should be rejected, it may
take any lawful action to defeat such transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial Corp.&#146;s charter and bylaws do not contain a similar provision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Dissenters&#146; Rights of Appraisal</I></B><B>. </B>Office of Thrift Supervision regulations generally provide
that a stockholder of a federally chartered corporation that engages in a merger, consolidation or
sale of all or substantially all of its assets shall have the right to demand from such institution
payment of the fair or appraised value of his or her stock in the corporation, subject to specified
procedural requirements. The regulations also provide, however, that a stockholder of a federally
chartered corporation whose shares are listed on a national securities exchange are not entitled to
dissenters&#146; rights in connection with a merger if the stockholder is required to accept only
&#147;qualified consideration&#148; for his or her stock, which is defined to include cash, shares of stock
of any institution or corporation that at the effective date of the merger will be listed on a
national securities exchange, or any combination of such shares of stock and cash.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Maryland law, stockholders of Oneida Financial-New will not have dissenters&#146; appraisal
rights in connection with a plan of merger or consolidation to which Oneida Financial-New is a
party as long as the common stock of Oneida Financial-New trades on a national securities exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Amendment of Governing Instruments</I></B><B>. </B>No amendment of Oneida Financial Corp.&#146;s stock charter may
be made unless it is first proposed by the board of directors of Oneida Financial Corp., then
preliminarily approved by the Office of Thrift Supervision, and thereafter approved by the holders
of a majority of the total votes eligible to be cast at a legal meeting.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->171<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The articles of incorporation of Oneida Financial-New may be amended, upon the submission of
an amendment by the board of directors to a vote of the stockholders, by the affirmative vote of at
least two-thirds of the outstanding shares of common stock, or by the affirmative vote of a
majority of the outstanding shares of common stock if at least two-thirds of the members of the
whole board of directors approves such amendment; provided, however, that approval by at least 80%
of the outstanding voting stock is generally required to amend the following provisions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The limitation on voting rights of persons who directly or indirectly
beneficially own more than 10% of the outstanding shares of common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The division of the board of directors into three staggered classes;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The ability of the board of directors to fill vacancies on the board;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The requirement that directors may only be removed for cause and by the
affirmative vote of at least a majority of the votes eligible to be cast by
stockholders;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The ability of the board of directors to amend and repeal the bylaws;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The ability of the board of directors to evaluate a variety of factors in
evaluating offers to purchase or otherwise acquire Oneida Financial-New;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The authority of the board of directors to provide for the issuance of
preferred stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(viii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The validity and effectiveness of any action lawfully authorized by the affirmative
vote of the holders of a majority of the total number of outstanding shares of common
stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ix)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The number of stockholders constituting a quorum or required for stockholder
consent;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(x)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The indemnification of current and former directors and officers, as well as
employees and other agents, by Oneida Financial-New;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The limitation of liability of officers and directors to Oneida Financial-New
for money damages;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The inability of stockholders to cumulate their votes in the election of
directors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xiii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The advance notice requirements for stockholder proposals and nominations; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xiv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The provision of the articles of incorporation requiring approval of at least
80% of the outstanding voting stock to amend the provisions of the articles of
incorporation provided in (i)&nbsp;through (xiii)&nbsp;of this list.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The articles of incorporation also provide that the bylaws may be amended by the affirmative
vote of a majority of our directors or by the stockholders by the affirmative vote of at least 80%
of the total votes eligible to be voted at a duly constituted meeting of stockholders. Any
amendment of this super-majority requirement for amendment of the bylaws would also require the
approval of 80% of the outstanding voting stock.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="171"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RESTRICTIONS ON ACQUISITION OF ONEIDA FINANCIAL-NEW</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the board of directors of Oneida Financial-New is not aware of any effort that might
be made to obtain control of Oneida Financial-New after the conversion, the board of directors
believes that it is appropriate to include certain provisions as part of Oneida Financial-New&#146;s
articles of incorporation to protect the interests of Oneida Financial-New and its stockholders
from takeovers which our board of directors might conclude are not in the best interests of Oneida
Savings Bank, Oneida Financial-New or Oneida Financial-New&#146;s stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion is a general summary of the material provisions of Oneida
Financial-New&#146;s articles of incorporation and bylaws, Oneida Savings Bank&#146;s charter and bylaws and
certain other regulatory provisions that may be deemed to have an &#147;anti-takeover&#148; effect. The
following description of certain of these provisions is necessarily general and is not intended to
be a complete description of the document or regulatory provision in question. The articles of
incorporation and bylaws of Oneida Financial-New are included as part of Oneida Financial, MHC&#146;s
application for conversion filed with the Office of Thrift Supervision and Oneida Financial-New&#146;s
registration statement filed with the Securities and Exchange Commission. See &#147;Where You Can Find
Additional Information.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Articles of Incorporation and Bylaws of Oneida Financial-New</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The articles of incorporation and bylaws of Oneida Financial-New contain a number of
provisions relating to corporate governance and rights of stockholders that may discourage future
takeover attempts. As a result, stockholders who may desire to participate in such transactions
may not have an opportunity to do so. In addition, these provisions will also render the removal of
the board of directors or management of Oneida Financial-New more difficult.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Directors</I></B><I>. </I>The board of directors will be divided into three classes. The members of each
class will be elected for a term of three years and only one class of directors will be elected
annually. Thus, it would take at least two annual elections to replace a majority of our board of
directors. Further, the bylaws impose notice and information requirements in connection with the
nomination by stockholders of candidates for election to the board of directors or the proposal by
stockholders of business to be acted upon at an annual meeting of stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Restrictions on Calling Special Meetings</I></B><I>. </I>The bylaws provide
that special meetings of stockholders can be called by the President, by a majority of the whole
board of directors or upon the written request of stockholders entitled to cast at least a majority
of all votes entitled to vote at the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Prohibition of Cumulative Voting</I></B><I>. </I>The articles of incorporation prohibit cumulative voting
for the election of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Limitation of Voting Rights</I></B><I>. </I>The articles of incorporation provide that in no event will any
person who beneficially owns more than 10% of the then-outstanding shares of common stock, be
entitled or permitted to vote any of the shares of common stock held in excess of the 10% limit.
This provision has been included in the articles of incorporation in reliance on Section&nbsp;2-507(a)
of the Maryland General Corporation Law, which entitles stockholders to one vote for each share of
stock unless the articles of incorporation provide for a greater or lesser number of votes per
share or limit or deny voting rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Restrictions on Removing Directors from Office</I></B><I>. </I>The articles of incorporation provide that
directors may be removed only for cause, and only by the affirmative vote of the holders of at
least a
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">majority of the voting power of all of our then-outstanding common stock entitled to vote (after
giving effect to the limitation on voting rights discussed above in &#147;&#151;Limitation of Voting
Rights.&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Authorized but Unissued Shares</I></B>. After the conversion, Oneida Financial-New will have
authorized but unissued shares of common and preferred stock. See &#147;Description of Capital Stock of
Oneida Financial-New Following the Conversion.&#148; The articles of incorporation authorize 10,000,000
shares of serial preferred stock. Oneida Financial-New is authorized to issue preferred stock from
time to time in one or more series subject to applicable provisions of law, and the board of
directors is authorized to fix the designations, and relative preferences, limitations, voting
rights, if any, including without limitation, offering rights of such shares (which could be
multiple or as a separate class). In the event of a proposed merger, tender offer or other attempt
to gain control of Oneida Financial-New that the board of directors does not approve, it may be
possible for the board of directors to authorize the issuance of a series of preferred stock with
rights and preferences that would impede the completion of the transaction. An effect of the
possible issuance of preferred stock therefore may be to deter a future attempt to gain control of
Oneida Financial-New The board of directors has no present plan or understanding to issue any
preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Amendments to Articles of Incorporation and Bylaws. </I></B>Amendments to the articles of
incorporation must be approved by our board of directors and also by at least a majority of the
outstanding shares of our voting stock; provided, however, that approval by at least 80% of the
outstanding voting stock is generally required to amend certain provisions. A list of these
provisions is provided under &#147;Comparison of Stockholders&#146; Rights For Existing Stockholders of
Oneida Financial Corp.&#151;Amendment of Governing Instruments&#148; above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The articles of incorporation also provide that the bylaws may be amended by the affirmative
vote of a majority of Oneida Financial-New&#146;s directors or by the stockholders by the affirmative
vote of at least 80% of the total votes eligible to be voted at a duly constituted meeting of
stockholders. Any amendment of this super-majority requirement for amendment of the bylaws would
also require the approval of 80% of the outstanding voting shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions requiring the affirmative vote of 80% of outstanding shares for certain
stockholder actions have been included in the articles of incorporation of Oneida Financial-New in
reliance on Section&nbsp;2-104(b)(4) of the Maryland General Corporation Law. Section&nbsp;2-104(b)(4)
permits the articles of incorporation to require a greater proportion of votes than the proportion
that would otherwise be required for stockholder action under the Maryland General Corporation Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Business Combinations with Interested Stockholders</I></B><I>. </I>The bylaws of Oneida Financial-New
allow the board of directors to restrict mergers, consolidations, sales of assets and other business combinations
between Oneida Financial-New and an &#147;interested stockholder.&#148; See &#147;Comparison of Stockholder
Rights for Existing Stockholders of Oneida Financial Corp.&#151;Mergers, Consolidations and Sales of
Assets,&#148; above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Evaluation of Offers. </I></B>The articles of incorporation of Oneida Financial-New provide that its
board of directors, when evaluating a transaction that would or may involve a change in control of
Oneida Financial-New (whether by purchases of its securities, merger, consolidation, share
exchange, dissolution, liquidation, sale of all or substantially all of its assets, proxy
solicitation or otherwise), may, in connection with the exercise of its business judgment in
determining what is in the best interests of Oneida Financial-New and its stockholders and in
making any recommendation to the stockholders, give due consideration to all relevant factors,
including, but not limited to, certain enumerated factors. For a list of enumerated factors, see
&#147;Comparison of Stockholder Rights for Existing Stockholders of Oneida Financial Corp.&#151;Evaluation
of Offers,&#148; above.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Purpose and Anti-Takeover Effects of the Articles of Incorporation and Bylaws of Oneida
Financial-New</I></B><B>. </B>Our board of directors believes that the provisions described above are prudent and
will reduce our vulnerability to takeover attempts and certain other transactions that have not
been negotiated with and approved by our board of directors. These provisions also will assist us
in the orderly deployment of the offering proceeds into productive assets during the initial period
after the conversion. Our board of directors believes these provisions are in the best interests of
Oneida Financial-New and our stockholders. Our board of directors believes that it will be in the
best position to determine the true value of Oneida Financial-New and to negotiate more effectively
for what may be in the best interests of all our stockholders. Accordingly, our board of directors
believes that it is in the best interests of Oneida Financial-New and all of our stockholders to
encourage potential acquirers to negotiate directly with the board of directors and that these
provisions will encourage such negotiations and discourage hostile takeover attempts. Our board of
directors also believes that these provisions should not discourage persons from proposing a merger
or other transaction at a price reflective of the true value of Oneida Financial-New and that is in
the best interests of all our stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Takeover attempts that have not been negotiated with and approved by our board of directors
present the risk of a takeover on terms that may be less favorable than might otherwise be
available. A transaction that is negotiated and approved by our board of directors, on the other
hand, can be carefully planned and undertaken at an opportune time in order to obtain maximum value
of Oneida Financial-New for our stockholders, with due consideration given to matters such as the
management and business of the acquiring corporation and maximum strategic development of our
assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although a tender offer or other takeover attempt may be made at a price substantially above
the current market price, such offers are sometimes made for less than all of the outstanding
shares of a target company. As a result, stockholders may be presented with the alternative of
partially liquidating their investment at a time that may be disadvantageous, or retaining their
investment in an enterprise that is under different management and whose objectives may not be
similar to those of the remaining stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Despite our belief as to the benefits to stockholders of these provisions of Oneida
Financial-New&#146;s articles of incorporation and bylaws, these provisions may also have the effect of
discouraging a future takeover attempt that would not be approved by our board of directors, but
pursuant to which stockholders may receive a substantial premium for their shares over then current
market prices. As a result, stockholders who might desire to participate in such a transaction may
not have any opportunity to do so. Such provisions will also make it more difficult to remove our
board of directors and management. Our board of directors, however, has concluded that the
potential benefits outweigh the possible disadvantages.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Restated Organization Certificate of Oneida Savings Bank</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank&#146;s Restated Organization Certificate will be amended to provide that for a
period of five years from the closing of the conversion and offering, no person other than Oneida
Financial-New may offer directly or indirectly to acquire the beneficial ownership of more than 10%
of any class of equity security of Oneida Savings Bank. This provision does not apply to any
tax-qualified employee benefit plan of Oneida Savings Bank or Oneida Financial-New or to an
underwriter or member of an underwriting or selling group involving the public sale or resale of
securities of Oneida Financial-New or any of its subsidiaries, so long as after the sale or resale,
no underwriter or member of the selling group is a beneficial owner, directly or indirectly, of
more than 10% of any class of equity securities of Oneida Savings Bank. In addition, during this
five-year period, all shares owned over the 10% limit may not be voted on any matter submitted to
stockholders for a vote.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Conversion Regulations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office of Thrift Supervision regulations prohibit any person from making an offer, announcing
an intent to make an offer or participating in any other arrangement to purchase stock or acquiring
stock or subscription rights in a converting institution or its holding company from another person
prior to completion of its conversion. Further, without the prior written approval of the Office of
Thrift Supervision, no person may make an offer or announcement of an offer to purchase shares or
actually acquire shares of a converted institution or its holding company for a period of three
years from the date of the completion of the conversion if, upon the completion of such offer,
announcement or acquisition, the person would become the beneficial owner of more than 10% of the
outstanding stock of the institution or its holding company. The Office of Thrift Supervision has
defined &#147;person&#148; to include any individual, group acting in concert, corporation, partnership,
association, joint stock company, trust, unincorporated organization or similar company, a
syndicate or any other group formed for the purpose of acquiring, holding or disposing of
securities of an insured institution. However, offers made exclusively to a bank or its holding
company, or an underwriter or member of a selling group acting on the converting institution&#146;s or
its holding company&#146;s behalf for resale to the general public are excepted. The regulation also
provides civil penalties for willful violation or assistance in any such violation of the
regulation by any person connected with the management of the converting institution or its holding
company or who controls more than 10% of the outstanding shares or voting rights of a converted
institution or its holding company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Change in Control Regulations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Change in Bank Control Act, no person may acquire control of an insured federal
savings bank or its parent holding company unless the Office of Thrift Supervision has been given
60&nbsp;days&#146; prior written notice and has not issued a notice disapproving the proposed acquisition. In
addition, Office of Thrift Supervision regulations provide that no company may acquire control of a
savings bank without the prior approval of the Office of Thrift Supervision. Any company that
acquires such control becomes a &#147;savings and loan holding company&#148; subject to registration,
examination and regulation by the Office of Thrift Supervision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control, as defined under federal law, means ownership, control of or holding irrevocable
proxies representing more than 25% of any class of voting stock, control in any manner of the
election of a majority of the institution&#146;s directors, or a determination by the Office of Thrift
Supervision that the acquiror has the power to direct, or directly or indirectly to exercise a
controlling influence over, the management or policies of the institution. Acquisition of more than
10% of any class of a savings bank&#146;s voting stock, if the acquiror is also subject to any one of
eight &#147;control factors,&#148; constitutes a rebuttable determination of control under the regulations.
Such control factors include the acquiror being one of the two largest stockholders. The
determination of control may be rebutted by submission to the Office of Thrift Supervision, prior
to the acquisition of stock or the occurrence of any other circumstances giving rise to such
determination, of a statement setting forth facts and circumstances which would support a finding
that no control relationship will exist and containing certain undertakings. The regulations
provide that persons or companies that acquire beneficial ownership exceeding 10% or more of any
class of a savings bank&#146;s stock who do not intend to participate in or seek to exercise control
over a savings bank&#146;s management or policies may qualify for a safe harbor by filing with the
Office of Thrift Supervision a certification form that states, among other things, that the holder
is not in control of such institution, is not subject to a rebuttable determination of control and
will take no action which would result in a determination or rebuttable determination of control
without prior notice to or approval of the Office of Thrift Supervision, as applicable. There are
also rebuttable presumptions in the regulations concerning whether a group &#147;acting in concert&#148;
exists, including presumed action in concert among members of an &#147;immediate family.&#148;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Office of Thrift Supervision may prohibit an acquisition of control if it finds, among
other things, that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the acquisition would result in a monopoly or substantially lessen competition;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the financial condition of the acquiring person might jeopardize the financial
stability of the institution; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the competence, experience or integrity of the acquiring person indicates that
it would not be in the interest of the depositors or the public to permit the
acquisition of control by such person.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>New York Banking Law</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to federal law, the New York State Banking Law generally requires prior approval
of the New York State Banking Board before any action is taken that causes any entity or person to
acquire direct or indirect control of a banking institution which is organized in New York State.
Control is presumed to exist if any company or person directly or indirectly owns, controls or
holds with power to vote 10% or more of the voting stock of a banking institution or of any company
or person that owns, controls or holds with power to vote 10% or more of the voting stock of a
banking institution.
</DIV>
<DIV align="left">
<A name="172"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF CAPITAL STOCK OF ONEIDA FINANCIAL-NEW</B>
</DIV>

<DIV align="left">
<A name="173"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 0pt"><B>FOLLOWING THE CONVERSION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial-New is authorized to issue 30,000,000 shares of common stock, par value of
$0.01 per share, and 10,000,000 shares of preferred stock, par value $0.01 per share. Oneida
Financial-New currently expects to issue in the offering and exchange up to 8,205,123 shares of
common stock, subject to adjustment up to 9,435,892 shares. Oneida Financial-New will not issue
shares of preferred stock in the conversion. Each share of Oneida Financial-New common stock will
have the same relative rights as, and will be identical in all respects to, each other share of
common stock. Upon payment of the subscription price for the common stock, in accordance with the
plan of conversion and reorganization, all of the shares of common stock will be duly authorized,
fully paid and nonassessable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares of common stock of Oneida Financial-New will represent nonwithdrawable capital,
will not be an account of an insurable type, and will not be insured by the Federal Deposit
Insurance Corporation or any other government agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Dividends</I></B><I>. </I>Oneida Financial-New may pay dividends to an amount equal to the excess of our
capital surplus over payments that would be owed upon dissolution to stockholders whose
preferential rights upon dissolution are superior to those receiving the dividend, and to an amount
that would not make us insolvent, as and when declared by our board of directors. The payment of
dividends by Oneida Financial-New is subject to limitations that are imposed by law and applicable
regulation. The holders of common stock of Oneida Financial-New will be entitled to receive and
share equally in dividends as may be declared by our board of directors out of funds legally
available therefor. If Oneida Financial-New issues shares of preferred stock, the holders thereof
may have a priority over the holders of the common stock with respect to dividends.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Voting Rights</I></B><I>. </I>Upon consummation of the conversion, the holders of common stock of Oneida
Financial-New will have exclusive voting rights in Oneida Financial-New. They will elect Oneida
Financial-New&#146;s board of directors and act on other matters as are required to be presented to them
under Maryland law or as are otherwise presented to them by the board of directors. Generally, each
holder of common stock will be entitled to one vote per share and will not have any right to
cumulate votes in the election of directors. Any person who beneficially owns more than 10% of the
then-outstanding shares of Oneida Financial-New&#146;s common stock, however, will not be entitled or
permitted to vote any shares of common stock held in excess of the 10% limit. If Oneida
Financial-New issues shares of preferred stock, holders of the preferred stock may also possess
voting rights. Certain matters require the approval of 80% of our outstanding common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a New York stock savings bank, corporate powers and control of Oneida Savings Bank are
vested in its board of directors, who elect the officers of Oneida Savings Bank and who fill any
vacancies on the board of directors. Voting rights of Oneida Savings Bank are vested exclusively in
the owners of the shares of capital stock of Oneida Savings Bank, which will be Oneida
Financial-New, and voted at the direction of Oneida Financial-New&#146;s board of directors.
Consequently, the holders of the common stock of Oneida Financial-New will not have direct control
of Oneida Savings Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Liquidation</I></B><I>. </I>In the event of any liquidation, dissolution or winding up of Oneida Savings
Bank, Oneida Financial-New, as the holder of 100% of Oneida Savings Bank&#146;s capital stock, would be
entitled to receive all assets of Oneida Savings Bank available for distribution, after payment or
provision for payment of all debts and liabilities of Oneida Savings Bank, including all deposit
accounts and accrued interest thereon, and after distribution of the balance in the liquidation
account to Eligible Account Holders and Supplemental Eligible Account Holders. In the event of
liquidation, dissolution or winding up of Oneida Financial-New, the holders of its common stock
would be entitled to receive, after payment or provision for payment of all its debts and
liabilities, all of the assets of Oneida Financial-New available for distribution. If preferred
stock is issued, the holders thereof may have a priority over the holders of the common stock in
the event of liquidation or dissolution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Preemptive Rights</I></B><I>. </I>Holders of the common stock of Oneida Financial-New will not be entitled to
preemptive rights with respect to any shares that may be issued. The common stock is not subject to
redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Preferred Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of the shares of Oneida Financial-New&#146;s authorized preferred stock will be issued as part
of the offering or the conversion. Preferred stock may be issued with preferences and designations
as our board of directors may from time to time determine. Our board of directors may, without
stockholder approval, issue shares of preferred stock with voting, dividend, liquidation and
conversion rights that could dilute the voting strength of the holders of the common stock and may
assist management in impeding an unfriendly takeover or attempted change in control.
</DIV>
<DIV align="left">
<A name="174"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TRANSFER AGENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The transfer agent and registrar for Oneida Financial-New&#146;s common stock is Registrar and
Transfer Company.
</DIV>
<DIV align="left">
<A name="175"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPERTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements of Oneida Financial Corp. as of December&nbsp;31, 2009 and
2008, and for each of the years in the three-year period ended December&nbsp;31, 2009, appearing in this
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->178<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">prospectus and elsewhere in the registration statement have been audited by Crowe Horwath LLP,
independent registered public accountants, as stated in their reports with respect thereto, and are
included herein in reliance given upon the authority of said firm as experts in accounting and
auditing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RP Financial has consented to the publication herein of the summary of its report to Oneida
Financial-New setting forth its opinion as to the estimated pro forma market value of the shares of
common stock upon completion of the conversion and offering and its letter with respect to
subscription rights.
</DIV>
<DIV align="left">
<A name="176"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL AND TAX MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luse Gorman Pomerenk &#038; Schick, P.C., Washington, D.C., counsel to Oneida Financial-New, Oneida
Financial, MHC and Oneida Savings Bank, will issue to Oneida Financial-New its opinion regarding
the legality of the common stock and the federal income tax consequences of the conversion. Crowe
Horwath LLP has provided an opinion to us regarding the New York income tax consequences of the
conversion. Certain legal matters will be passed upon for Stifel, Nicolaus &#038; Company, Incorporated
by Kilpatrick Stockton LLP, Washington, D.C.
</DIV>
<DIV align="left">
<A name="177"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial-New has filed with the Securities and Exchange Commission a registration
statement under the Securities Act of 1933 with respect to the shares of common stock offered
hereby. As permitted by the rules and regulations of the Securities and Exchange Commission, this
prospectus does not contain all the information set forth in the registration statement. Such
information, including the appraisal report which is an exhibit to the registration statement, can
be examined without charge at the public reference facilities of the Securities and Exchange
Commission located at 100 F Street, N.E., Washington, D.C. 20549, and copies of such material can
be obtained from the Securities and Exchange Commission at prescribed rates. The Securities and
Exchange Commission telephone number is 1-800-SEC-0330. In addition, the Securities and Exchange
Commission maintains a web site (http://www.sec.gov) that contains reports, proxy and information
statements and other information regarding registrants that file electronically with the Securities
and Exchange Commission, including Oneida Financial-New. The statements contained in this
prospectus as to the contents of any contract or other document filed as an exhibit to the
registration statement are, of necessity, brief descriptions of the material terms of, and should
be read in conjunction with, such contract or document.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial, MHC has filed with the Office of Thrift Supervision an Application on Form
AC with respect to the conversion. This prospectus omits certain information contained in the
application. The application may be examined at the principal office of the Office of Thrift
Supervision, 1700 G Street, N.W., Washington, D.C. 20552, and at the Northeast Regional Office of
the Office of Thrift Supervision, Harborside Financial Center, Plaza Five, Suite&nbsp;1600, Jersey City,
New Jersey 07311. Our Plan of Conversion and Reorganization is available, upon request, at each of
our branch offices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>In connection with the offering, Oneida Financial-New will register its common stock under
Section&nbsp;</B><B>12(b)</B><B> of the Securities Exchange Act of 1934 and, upon such registration, Oneida
Financial-New and the holders of its common stock will become subject to the proxy solicitation
rules, reporting requirements and restrictions on common stock purchases and sales by directors,
officers and greater than 10% stockholders, the annual and periodic reporting and certain other
requirements of the Securities Exchange Act of 1934. Under the plan of conversion and
reorganization, Oneida Financial-New has undertaken that it will not terminate such registration
for a period of at least three years following the offering.</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->179<!-- /Folio -->
</DIV>



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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>


<DIV align="left">
<A name="178"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Index to Consolidated Financial Statements</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="89%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#300"><B>Report of Independent Registered Public Accounting Firm</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>F-1</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#301"><B>Consolidated Statements of Condition as of December&nbsp;31, 2009 and 2008</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>F-2</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#302"><B>Consolidated Statements of Income for the Years Ended
December&nbsp;31, 2009, 2008 and 2007</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>F-3</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#303"><B>Consolidated Statements of Stockholders&#146; Equity for the Years Ended
December&nbsp;31, 2009, 2008 and 2007</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>F-4</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#304"><B>Consolidated Statements of Cash Flows for the Years Ended
December&nbsp;31, 2009, 2008 and 2007</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>F-6</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#305"><B>Notes to Consolidated Financial Statements</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>F-8</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>All schedules are omitted as the required information either is not applicable or is included in the financial statements or related notes.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Separate financial statements for new Oneida Financial Corp. have not been included in this
prospectus because new Oneida Financial Corp., which has engaged only in organizational activities
to date, has no significant assets, contingent or other liabilities, revenues or expenses.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->180<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="300"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Report of Independent Registered Public Accounting Firm</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors and Shareholders<BR>
Oneida Financial Corp.<BR>
Oneida, New York

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have audited the accompanying consolidated statements of condition of Oneida Financial Corp. as
of December&nbsp;31, 2009 and 2008 and the related consolidated statements of income, changes in
stockholders&#146; equity and cash flows for each of the three years in the period ended December&nbsp;31,
2009. These financial statements are the responsibility of the Company&#146;s management. Our
responsibility is to express an opinion on these financial statements based on our audits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. The
Company is not required to have, nor were we engaged to perform, an audit of its internal controls
over financial reporting. Our audit included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Company&#146;s internal control
over financial reporting. Accordingly, we express no such opinion. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In our opinion, the consolidated financial statements referred to above present fairly, in all
material respects, the financial position of Oneida Financial Corp. as of December&nbsp;31, 2009 and
2008 and the results of its operations and its cash flows for each of the three years in the period
ended December&nbsp;31, 2009 in conformity with U.S. generally accepted accounting principles.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">/s/ Crowe Horwath LLP

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Crowe Horwath LLP<BR>
March&nbsp;12, 2010<BR>
Livingston, New Jersey

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>

<DIV align="left">
<A name="301"></A>
</DIV>

<!-- xbrl,bs -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Consolidated Statements of Condition<BR>

<!-- xbrl,body -->
December&nbsp;31, 2009 and 2008</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="top">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Assets </B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and due from banks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">35,433,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,223,027</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal funds sold</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,103,101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,036</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,537,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,294,063</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trading securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,627,280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,941,476</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114,532,578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134,763,154</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities held to maturity (fair value 2009 $47,966,244)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,692,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage loans held for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">687,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">740,730</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">298,052,583</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">304,375,976</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,900,587</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,624,283</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net loans receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">295,151,996</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">301,751,693</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal Home Loan Bank stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,664,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,784,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Premises and equipment, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,274,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,789,766</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued interest receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,468,977</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,659,074</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank owned life insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,712,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,019,970</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,344,389</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,322,202</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,183,101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,963,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other intangible assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,629,931</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,100,001</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><B>Total Assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">590,506,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">540,129,768</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Liabilities and Stockholders&#146; Equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest bearing deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">426,367,669</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">364,911,270</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest bearing deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,996,738</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,786,827</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,825,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,481</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,025,751</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,764,948</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">531,390,158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">485,300,526</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments and contingent liabilities (Note 14)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Preferred stock, 1,000,000 shares authorized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock, $.01 par value, 20,000,000 shares authorized;
8,322,452 shares issued&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,225</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,481,956</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,221,421</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,024,272</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,584,629</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accumulated other comprehensive loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,960,866</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,562,481</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Treasury stock (at cost, 490,620 and 533,106 shares)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,071,414</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,057,552</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total stockholders&#146; equity &#151; controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,557,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,269,242</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,559,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,560,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total stockholders&#146;equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,116,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,829,242</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><B>Total Liabilities and Stockholders&#146; Equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">590,506,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">540,129,768</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">The accompanying notes are an integral part of the consolidated financial statements.
</DIV>


<!-- /xbrl,bs -->

<P align="center" style="font-size: 10pt"><!-- Folio -->F-2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>

<DIV align="left">
<A name="302"></A>
</DIV>

<!-- xbrl,in -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Consolidated Statements of Income<BR>
<!-- xbrl,body -->
Years Ended December&nbsp;31, 2009, 2008 and 2007</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest and dividend income:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest and fees on loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,761,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,535,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,551,557</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest and dividends on investment securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">U. S. Government and agency obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,068,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,371,440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,727,445</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Corporate debt and equity obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,333,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,232,170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,080,557</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Mortgage-backed securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,481,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,377,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,588,704</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Tax exempt securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">988,844</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">809,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">600,702</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">330,233</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">239,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">294,781</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest on federal funds sold
and interest-earning deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">169,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">829,079</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total interest and dividend income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,001,212</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,734,025</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,672,825</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Savings deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">488,033</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">602,747</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">569,628</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Money market and interest-bearing checking</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,654,830</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,892,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,095,836</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,734,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,020,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,371,634</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal funds purchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,120</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Short-term borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">245,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">288,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">364,976</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Long-term borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,451,765</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,277,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,572,589</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,573,792</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,081,320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,027,783</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,427,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,652,705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,645,042</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">760,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">525,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net interest income after
provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,667,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,127,705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,645,042</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other-than-temporary loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total impairment loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,908,143</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,021,845</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loss recognized in other comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">613,302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net impairment loss recognized in earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,294,841</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,021,845</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net gains on sales of securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">787,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">352,825</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Changes in fair value of trading securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,725,032</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,674,699</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,884,330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,318,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,837,947</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,445,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,712,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,963,857</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Income (Loss) before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,324,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,899,890</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,871,957</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision (Benefit) for income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,210,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,222,800</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,367,650</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px"><B>Net Income (Loss)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,113,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,677,090</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,504,307</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings (Loss) per share &#151; basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">($0.22</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings (Loss) per share &#151; diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">($0.22</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">The accompanying notes are an integral part of the consolidated financial statements.
</DIV>



<!-- /xbrl,in -->
<P align="center" style="font-size: 10pt"><!-- Folio -->F-3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif"><!-- LANDSCAPE -->




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>

<DIV align="left">
<A name="303"></A>
</DIV>

<!-- xbrl,se -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Consolidated Statements of Stockholders&#146; Equity<BR>
<!-- xbrl,body -->
Years Ended December&nbsp;31, 2009, 2008 and 2007</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Accumulated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Issued Under</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Additional</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Employee</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>            Common Stock           </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Paid-In</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Retained</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Comprehensive</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Comprehensive</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Treasury</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock Plans -</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Noncontrolling</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Capital</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Earnings</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Income</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Income(Loss)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Unearned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at December&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,322,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">83,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,704,350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44,579,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,786,692</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,038,926</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(141,678</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,459,786</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,504,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,504,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,504,307</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other comprehensive income, net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrealized losses on securities arising
during period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,167,052</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Reclassification adjustment for gains included in net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(352,825</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net unrealized holding losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,519,877</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Change in unrealized loss on pension benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228,994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other comprehensive loss before tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,290,883</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income tax benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">916,353</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other comprehensive loss, net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,374,530</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,374,530</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,374,530</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,129,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued under ESOP plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">195,730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141,678</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">337,408</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares earned under stock plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,210</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common stock cash dividends: $.48 per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,648,916</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,648,916</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock repurchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury stock purchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(65,159</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(65,159</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury stock reissued</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(177</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,118</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,322,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">83,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,053,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,434,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,161,222</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,069,790</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">59,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">59,399,224</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Reclassification adjustment to initially apply fair value guidance, net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,519,341</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,519,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustment to initially apply measurement provisions of pension guidance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,215</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(69,854</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(61,639</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,677,090</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,677,090</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,677,090</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other comprehensive loss, net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrealized losses on securities arising
during period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,001,265</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Reclassification adjustment for losses included
in net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">958,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net unrealized holding losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,042,274</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Change in unrealized loss on pension benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,375,636</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other comprehensive loss before tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,417,910</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income tax benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,567,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other comprehensive loss, net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,850,746</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,850,746</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,850,746</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(5,527,836</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares earned under stock plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165,654</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165,654</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax benefit from stock plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,822</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,822</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common stock cash dividends: $.48 per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,662,053</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,662,053</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock issued</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,501,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,501,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury stock purchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,277</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,277</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury stock reissued</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(168</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,515</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,347</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,322,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">83,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,221,421</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">41,584,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(5,562,481</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,057,552</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,560,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">54,829,242</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(Continued)
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-4<!-- /Folio -->
</DIV>




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<!-- LANDSCAPE -->
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Consolidated Statements of Stockholders&#146; Equity (Continued)<BR>
Years Ended December&nbsp;31, 2009, 2008 and 2007</B>

</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Accumulated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Issued Under</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Additional</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Employee</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Paid-In</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Retained</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Comprehensive</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Comprehensive</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Treasury</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock Plans -</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Noncontrolling</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Capital</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Earnings</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Income (Loss)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Income(Loss)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unearned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at December&nbsp;31, 2008 (continued)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,322,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">83,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,221,421</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">41,584,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(5,562,481</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,057,552</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,560,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">54,829,242</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,113,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,113,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,113,357</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other comprehensive loss, net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrealized gains on securities arising
during period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">514,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Reclassification adjustment for losses included
in net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,506,999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net unrealized holding losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,021,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Change in unrealized loss on pension benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">648,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other comprehensive income before tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,669,358</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income tax benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,067,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other comprehensive income, net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,601,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,601,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,601,615</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,714,972</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares earned under stock plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">258,830</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">258,830</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax benefit from stock plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,608</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,608</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common stock cash dividends: $.48 per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,673,714</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,673,714</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock repurchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury stock purchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(379,976</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(379,976</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury stock reissued</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,903</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">366,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">364,211</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,322,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">83,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,481,956</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44,024,272</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,960,866</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,071,414</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,559,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">59,116,173</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<!-- /xbrl,se -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">The accompanying notes are an integral part of the consolidated financial statements.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F - 5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>

<DIV align="left">
<A name="304"></A>
</DIV>
<!-- xbrl,cf -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Consolidated Statements of Cash Flows<BR>
Years Ended December&nbsp;31, 2009, 2008 and 2007</B>

</DIV>
<!-- xbrl,body -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net (loss)&nbsp;income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,113,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,677,090</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,504,307</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjustments to reconcile net (loss)&nbsp;income to net cash provided by operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,078,087</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,149,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,954,067</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Amortization of premiums and
(accretion of discounts) on securities, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">242,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95,508</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,141</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net change in fair value of trading securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,725,032</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,674,699</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">760,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">525,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Provision for deferred income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">349,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,853,698</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109,065</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Gain on sale of premises and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(135,395</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Loss (gain)&nbsp;on available for sale securities, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,506,999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">958,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(352,825</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">ESOP shares earned</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">337,408</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Stock compensation earned</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">258,830</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165,654</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,806</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Loss (gain)&nbsp;on sale of foreclosed assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,808</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Gain on sale of loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(343,622</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(134,809</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(137,415</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Income taxes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16,549</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">355,719</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(318,216</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Accrued interest receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,362</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(298,312</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,818,757</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(502,167</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,146,961</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Other liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,896,373</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,211,634</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(328,794</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Earnings on bank owned life insurance, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(692,217</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(552,250</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(566,692</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Origination of loans held for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(55,882,280</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,719,216</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,949,867</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Proceeds from sale of loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,279,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,706,624</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,075,307</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net cash provided by operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,257,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,873,812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,114,211</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,791,609</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(77,674,551</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(57,479,297</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from sales of securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,953,561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,666,785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,928,266</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Maturities and calls of securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,813,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,355,809</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,328,554</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Principal collected on securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,614,146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,570,453</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,346,991</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(50,040,459</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Maturities and calls of securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Principal collected on securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,300,916</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of FHLB stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(600,200</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,329,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,207,400</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Redemption of FHLB Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,119,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,948,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,031,300</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net decrease (increase)&nbsp;in loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,404,815</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21,711,825</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,004,402</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of bank premises and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,092,767</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(870,449</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,604,612</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from sale of bank premises and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139,166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from sale of foreclosed assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">373,120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,950</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of insurance agency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(84,245</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(72,567</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(66,153</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of employee benefits company</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(135,417</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(129,044</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(131,417</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of bank, net of cash received</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,800</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">907,934</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net cash used in investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(22,165,676</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(33,885,123</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(24,911,286</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">(Continued)</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Consolidated Statements of Cash Flows (Continued)<BR>
Years Ended December&nbsp;31, 2009, 2008 and 2007</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net increase in demand deposits,
savings, money market, interest-bearing checking and
mortgagor&#146;s escrow accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">62,587,639</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,642,526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,924,715</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net increase in time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,078,671</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,926,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,303,696</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,975,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,825,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,180,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Repayment of borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(24,800,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,400,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(76,180,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash dividends</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,673,714</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,662,053</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,648,916</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stock issued &#151; minority interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,501,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stock repurchased &#151; minority interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Exercise of stock options (using treasury stock)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">364,211</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,118</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of treasury stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(379,976</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,277</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(65,159</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net cash provided by financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,150,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,844,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,547,454</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Increase (decrease)&nbsp;in cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,242,939</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,166,491</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,249,621</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents at beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,294,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,460,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,710,175</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px"><B>Cash and Cash Equivalents at End of Year</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39,537,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,294,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,460,554</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Supplemental disclosures of cash flow information:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash paid during the year for:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Interest on deposits and obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,753,508</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,125,771</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,106,305</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">875,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">551,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,615,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-cash investing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Transfer of loans to foreclosed assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">434,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">259,649</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,142</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<!-- /xbrl,cf -->
<DIV align="center" style="font-size: 10pt; margin-top: 18pt">The accompanying notes are an integral part of the consolidated financial statements.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F - 7<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>
<!-- xbrl,ns -->
<DIV align="left">
<A name="305"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>

<!-- xbrl,n -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Summary of Significant Accounting Policies</B></TD>
</TR>
</TABLE>
</DIV>
<!-- xbrl,body -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Nature of Operations</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The consolidated financial statements include Oneida Financial Corp. (the &#147;Company&#148;) and its
wholly-owned subsidiary, Oneida Savings Bank (the &#147;Bank&#148;). Inter-company transactions and
balances are eliminated in consolidation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank is located in Central New York with offices in the City of Oneida, Rome and South
Utica and the Villages of Cazenovia, Hamilton, Canastota, Camden, Chittenango, Bridgeport,
Vernon and Westmoreland and owns two banking related subsidiaries; Oneida Preferred Funding
Corporation (OPFC)&nbsp;and The State Bank of Chittenango (SBC). The Bank is engaged primarily in
accepting deposits and providing various types of loans to the community. The Bank also
provides trust and brokerage services. OPFC, a Real Estate Investment Trust, primarily engages
in investing activities of residential and commercial real estate mortgages. SBC is a limited
purpose commercial bank subsidiary which is permitted to accept municipal deposit accounts
from various municipalities, school districts and other public sources; a source of funds not
available to the Bank under New York Law. The Bank also owns one insurance and risk
management subsidiary; Bailey &#038; Haskell Associates, Inc. (B&#038;H) which has six central New York
offices. During 2006, the Bank purchased an employee benefits consulting and retirement plan
administration firm, Benefit Consulting Group Inc. (BCG)&nbsp;which has an office in central New
York. During 2007, the Bank purchased Vernon Bank Corporation, the stock holding company for
National Bank of Vernon which had offices in Vernon, Westmoreland and South Utica. Workplace
Health Solutions was established in January&nbsp;2008 as a risk management company with services to
help mitigate and prevent work related injuries. This subsidiary was developed to complement
the products and services offered by our other subsidiaries with an overall philosophy of
innovative risk management services.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oneida Financial MHC, (the &#147;Holding Company&#148;) a mutual holding company whose activity is not
included in the accompanying financial statements, owns approximately 55.2% of the outstanding
common stock of the Company at December&nbsp;31, 2009. Salaries, employee benefits and rent
approximating $21,000 were allocated from the Company to the MHC during 2009, 2008 and 2007.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Subsequent Events</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company reviews subsequent events for recognition and disclosure.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Use of Estimates</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To prepare financial statements in conformity with U.S. generally accepted accounting
principles, management makes estimates and assumptions based on available information. These
estimates and assumptions affect the amounts reported in the financial statements and the
disclosures provided, and actual results could differ. The allowance for loan losses,
mortgage servicing rights, deferred tax assets, the evaluation of other-than-temporary
impairment for securities whose fair value is less than amortized cost and fair values of
financial instruments are particularly subject to change.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Cash and Cash Equivalents</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cash and cash equivalents include cash, deposits in other financial institutions with original
maturities under 90&nbsp;days and federal funds sold. Generally, federal funds are purchased and
sold for one-day periods.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 8<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Summary of Significant Accounting Policies (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Trading Assets</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Securities in which the fair value option has been elected are considered trading assets and
are recorded at fair value with changes in fair value included in earnings. Interest and
dividends are included in net interest income based on the contractual amount of interest
income. Cash flows from the purchase and sale of securities for which the fair value option
has been elected are shown as investing activities within the consolidated statement of cash
flows. The Company has elected the fair value option for certain common and preferred equity
securities as of January&nbsp;1, 2008. The cumulative effect of the adoption was to decrease
retained earnings by $1.5&nbsp;million, net of tax.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Investment Securities (including Mortgage-Backed Securities)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Debt securities are classified as held-to-maturity and carried at amortized cost when
management has the positive intent and ability to hold them to maturity. Debt securities are
classified as available-for-sale when they might be sold before maturity. Securities
available-for-sale are carried at fair value, with unrealized holding gains and losses
reported in other comprehensive income, net of tax. Interest income includes amortization of
purchase premium or discount. Premiums and discounts on securities are amortized on the
level-yield method without anticipating prepayments, except for mortgage backed securities
where prepayments are anticipated. Gains and losses on sales are recorded on the trade date
and determined using the specific identification method.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Declines in the fair value of securities below their cost that are other-than-temporary are
reflected as realized losses. The Company evaluates securities for other-than-temporary
impairment (&#147;OTTI&#148;) at least on a quarterly basis, and more frequently when economic or market
conditions warrant such an evaluation. In determining OTTI for debt securities, management
considers many factors, including: (1)&nbsp;the length of time and the extent to which the fair
value has been less than cost, (2)&nbsp;the financial condition and near-term prospects of the
issuer, (3)&nbsp;whether the market value decline was affected by macroeconomic conditions, and (4)
whether the Company has the intent to sell the debt security or more likely than not will be
required to sell the debt security before its anticipated recovery. The assessment of whether
an other-than-temporary decline exists involves a high degree of subjectivity and judgment and
is based on the information available to management at a point in time.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Loans Held for Sale</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mortgage loans originated and intended for sale in the secondary market are carried at the
lower of aggregate cost or fair value, as determined by outstanding commitments from
investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged
to earnings.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mortgage loans held for sale are generally sold with servicing rights retained. The carrying
value of mortgage loans sold is reduced by the amount allocated to the servicing right. Gains
and losses on sales of mortgage loans are based on the difference between the selling price
and the carrying value of the related loan sold.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Loans</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Loans that management has the intent and ability to hold for the foreseeable future or until
maturity or payoff are reported at the principal balance outstanding, net of deferred
origination fees and costs and the allowance for loan losses. Interest income is accrued on
the unpaid principal balance. Loan origination fees, net of certain direct origination costs,
are deferred and recognized in interest income using the level-yield method without
anticipating prepayments.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 9<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Summary of Significant Accounting Policies (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Loans (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Interest income on loans is discontinued at the time the loan is 90&nbsp;days delinquent unless the
loan is well-secured and in process of collection. Past due status is based on the
contractual terms of the loan. In all cases, loans are placed on nonaccrual or
charged-off at an earlier date if collection of principal or interest is considered
doubtful.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All interest accrued but not received for loans placed on nonaccrual is reversed
against interest income. Interest received on such loans is accounted for on the
cash-basis until qualifying for return to accrual. Loans are returned to accrual status
when all the principal and interest amounts contractually due are brought current and
future payments are reasonably assured.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Concentration of Credit Risk</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Most of the Company&#146;s business activity is with customers located throughout Madison and
Oneida Counties. Therefore, the Company&#146;s exposure to credit risk is significantly
affected by changes in the economy in those counties.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Allowance for Loan Losses</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The allowance for loan losses is a valuation allowance for probable incurred credit
losses. Loan losses are charged against the allowance when management believes the
uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited
to the allowance. Management estimates the allowance balance required using past loan loss
experience, the nature and volume of the portfolio, information about specific borrower
situations and estimated collateral values, economic conditions, and other factors.
Allocations of the allowance may be made for specific loans, but the entire allowance is
available for any loan that, in management&#146;s judgment, should be charged off.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The allowance consists of specific and general components. The specific component relates to
loans that are individually classified as impaired. Loans that have been classified but not
considered impaired or homogenous loans not evaluated for impairment but which are classified
are considered part of the general component of the allowance but are calculated using a
higher estimated loss percentage. The general component covers non-classified loans and is
based on historical loss experience adjusted for current factors. Quarterly, management
evaluates the adequacy of the allowance and determines the appropriate level of provision for
loan losses by applying a range of estimated loss percentages to each category of performing
loans and classified loans. The allowance adjustment is based upon the net change in each
portfolio category, as well as adjustments related to impaired loans, since the prior quarter.
Management monitors and modifies the level of the allowance for loan losses to maintain it at
a level which it considers adequate to provide for probable incurred loan losses.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A loan is considered impaired, based on current information and events, if it is probable that
the Bank will be unable to collect the scheduled payments of principle or interest when due
according
to the contractual terms of the loan agreement. Factors considered by management in
determining impairment include payment status, collateral value, and the probability of
collecting scheduled principal and interest payments when due. The measurement of impaired
loans is generally based on the present value of expected future cash flows discounted at the
historical effective interest rate, except that all collateral dependent loans are measured
for impairment based on the estimated fair value of the collateral. Loans, for which the
terms have been modified, and for which the borrower</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 10<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Summary of Significant Accounting Policies (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Allowance for Loan Losses (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is experiencing financial difficulties, are considered troubled debt restructurings and
classified as impaired.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Mortgage Servicing Rights</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Servicing rights are recognized separately when they are acquired through sales of loans.
When mortgage loans are sold, servicing rights are initially recorded at fair value with the
income statement effect recorded in gains on sales of loans. Fair value is based on market
prices for comparable mortgage servicing contracts, when available or alternatively, is based
on a valuation model that calculates the present value of estimated future net servicing
income. The valuation model incorporates assumptions that market participants would use in
estimating future net servicing income, such as the cost to service, the discount rate, the
custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default
rates and losses. The Company compares the valuation model inputs and results to published
industry data in order to validate the model results and assumptions. All classes of
servicing assets are subsequently measured using the amortization method which requires
servicing rights to be amortized into non-interest income in proportion to, and over the
period of, the estimated future net servicing income of the underlying loans.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Servicing assets are evaluated for impairment based upon the fair value of the rights as
compared to carrying amounts. Impairment is determined by stratifying rights into groupings
based on predominant risk characteristics, such as interest rate, loan type and investor type.
Impairment is recognized through a valuation allowance for an individual grouping, to the
extent that fair value is less than the carrying amount. If the Company later determines that
all or a portion of the impairment no longer exists for a particular grouping, a reduction of
the allowance may be recorded as an increase in income. The fair values of servicing rights
are subject to significant fluctuations as a result of changes in estimated and actual
prepayment speeds and default rates and losses.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Servicing fee income which is reported on the income statement as other non-interest income is
recorded for fees earned for servicing loans. The fees are based on a contractual percentage
of the outstanding principal; or a fixed amount per loan and are recorded as income when
earned. The amortization of mortgage servicing rights is netted against loan servicing fee
income. Servicing fees totaled $641,358, $329,920 and $295,526 for the years ended December
31, 2009, 2008 and 2007.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Federal Home Loan Bank (FHLB)&nbsp;Stock</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank is a member of the FHLB system. Members are required to own a certain amount of
stock based on the level of borrowings and other factors, and may invest additional amounts.
FHLB stock is carried at cost and periodically evaluated for impairment based on the ultimate
recovery of par value. Both cash and stock dividends are reported as income.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Foreclosed Assets</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Assets acquired through or instead of loan foreclosure are initially recorded at lower of cost
or fair value less costs to sell when acquired, establishing a new cost basis. If fair value
declines subsequent to foreclosure, a valuation allowance is recorded through expense.
Operating costs after acquisition are expensed.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Summary of Significant Accounting Policies (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Premises and Equipment</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Land is carried at cost. Premises and equipment are stated at cost, less accumulated
depreciation. Buildings and related components are depreciated using the straight-line method
with useful lives ranging from 5 to 39&nbsp;years. Furniture, fixtures and equipment are
depreciated using the straight-line method with useful lives ranging from 3 to 10&nbsp;years.
Maintenance and repairs are charged to operating expense as incurred.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Bank Owned Life Insurance</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has purchased life insurance policies on certain key officers. Bank owned life
insurance is recorded at the amount that can be realized under the insurance contract at the
balance sheet date, which is the cash surrender value adjusted for other charges or other
amounts due that are probable at settlement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Goodwill and Other Intangible Assets</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All goodwill resulted from business combinations prior to January&nbsp;1, 2009 and represents the
excess of the purchase price over the fair value of the net assets of businesses acquired.
Goodwill and intangible assets acquired in a purchase business combination and determined to
have an indefinite useful life are not amortized, but tested for impairment at least annually.
The Company has selected December&nbsp;31 as the date to perform the annual impairment test.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Other intangible assets consist of core deposit and acquired customer relationship intangible
assets arising from whole bank and other acquisitions. They are initially measured at fair
value and then are amortized on an accelerated method over their estimated useful lives. Core
deposit intangibles are being amortized over a range of 10 to 12&nbsp;years and acquired customer
relationship intangible over 5&nbsp;years.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Long Term Assets</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Premises and equipment, core deposit and other intangible assets, and other long-term assets
are reviewed for impairment when events indicate their carrying amount may not be recoverable
from future undiscounted cash flows. If impaired, the assets are recorded at fair value.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Loan Commitments</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial instruments include off-balance sheet credit instruments, such as commitments to
make loans and commercial letters of credit, issued to meet customer financing needs. The
face amount for these items represents exposure to loss, before considering customer
collateral or ability to repay. Such financial instruments are recorded when they are funded.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Income Taxes</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Income tax expense is the total of the current year income tax due or refundable and the
change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the
expected future tax amounts for the temporary differences between carrying amounts and tax
basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if
needed, reduces deferred tax assets to the amount expected to be realized.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company adopted guidance issued by the FASB with respect to accounting for uncertainty in
income taxes as of January&nbsp;1, 2007. A tax position is recognized as a benefit only if it is
&#147;more likely than not&#148; that the tax position would be sustained in a tax examination, with a
tax</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 12<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Summary of Significant Accounting Policies (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Income Taxes (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>examination being presumed to occur. The amount recognized is the largest amount of tax
benefit that is greater than 50% likely of being realized on examination. For tax positions
not meeting the &#147;more likely than not&#148; test, no tax benefit is recorded. The adoption had no
affect on the Company&#146;s financial statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company recognizes interest and/or penalties related to income tax matters in income tax
expense.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Insurance</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Commissions from sales of insurance are recorded as income when earned.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Trust Department Assets</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Assets held in fiduciary or agency capacities for customers are not included in the
accompanying consolidated statements of condition, since such items are not assets of the
Company. Fees associated with providing trust management services are recorded as earned, and
are included Non-Interest Income. At December&nbsp;31, 2009, the Bank maintained 553
trust/fiduciary accounts, with total assets of $116.8&nbsp;million under management as compared to
555 trust/fiduciary accounts with $105.8&nbsp;million of total assets at December&nbsp;31, 2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Employee Benefits</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pension expense is the net of service and interest cost, return on plan assets and
amortization of gains and losses not immediately recognized. Employee 401(k) expense is the
amount of matching contributions. Deferred compensation allocates the benefits over years of
service.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Stock-Based Compensation</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Compensation cost is recognized for stock options and restricted stock awards issued to
employees, based on the fair value of these awards at the date of grant. A Black-Scholes model
is utilized to estimate the fair value of stock options, while the market price of the
Company&#146;s common stock at the date of grant is used for restricted stock awards. Compensation
cost is recognized over the required period, generally defined as the vesting period. For
awards with graded vesting, compensation cost is recognized on a straight-line basis over the
requisite service period for the entire award.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Employee Stock Ownership Plan</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a
reduction of stockholders&#146; equity. Compensation expense is based on the market price of shares as they are
committed to be released to participant accounts. Dividends on allocated ESOP shares reduce
retained earnings; dividends on unearned ESOP shares reduce debt and accrued interest.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Earnings per Share</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. ESOP shares are considered outstanding for the
calculation unless unearned. All outstanding unvested share-based payment awards that contain
nonforfeitable dividends are considered participating securities for this calculation.
Diluted earnings per common share includes the dilutive effect of additional potential common shares</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 13<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Summary of Significant Accounting Policies (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Earnings per Share (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>issuable under stock options and awards using the treasury stock method. Earnings and
dividends per share are restated for all stock splits and stock dividends through the date of
issuance of the financial statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Other Comprehensive Income (Loss)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Comprehensive income (loss)&nbsp;consists of net income (loss)&nbsp;and other comprehensive income
(loss). Other comprehensive income (loss)&nbsp;includes unrealized gains and losses on securities
available-for-sale and changes in funded status of pension plans which are also recognized as
separate components of equity.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Loss Contingencies</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Loss contingencies, including claims and legal actions arising in the ordinary course of
business, are recorded as liabilities when the likelihood of loss is probable and an amount or
range of loss can be reasonably estimated. Management does not believe there are such matters
that will have a material effect on the financial statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Restrictions on Cash</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank is required to maintain a reserve balance, as established by the Federal Reserve Bank
of New York. The required average total reserve for the 14-day maintenance period including
December&nbsp;31, 2009 and 2008 was $850,000 and $850,000 respectively, which was represented by
cash on hand or on deposit with the Federal Reserve Bank. Balances with the Federal Reserve
Bank earn nominal interest.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Equity</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Common stock has $0.01 par and 20,000,000 shares authorized. In addition, one million shares
of serial preferred stock were authorized. There is no serial preferred stock outstanding as
of December&nbsp;31, 2009.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Dividend Restrictions</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Banking regulations require maintaining certain capital levels and may limit the dividends
paid by the Bank to the holding company or by the holding company to shareholders.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Treasury Stock</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Common stock that upon purchase is classified as treasury stock is recorded at cost. During
2009 and 2008, the Company purchased 34,645 and 2,700 shares classified as treasury stock at
an
average cost of $10.97 and $7.51 per share respectively. During 2009 and 2008, 77,131 and
6,850 shares of treasury stock were reissued at an average cost of $4.75 and $4.75,
respectively. The shares reissued during 2009 and 2008 were issued on the exercise of stock
options.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Fair Value of Financial Instruments</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fair values of financial instruments are estimated using relevant market information and other
assumptions, as more fully disclosed in a separate note. Fair value estimates involve
uncertainties and matters of significant judgment regarding interest rates, credit risk,
prepayments, and other factors, especially in the absence of broad markets for particular
items. Changes in assumptions or in market conditions could significantly affect the
estimates.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 14<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Summary of Significant Accounting Policies (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Segments</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Internal financial information is primarily reported and aggregated in four lines of business;
banking, insurance, employee benefit consulting and risk management activities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Reclassification</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Some items in the prior year financial statements were reclassified to conform to the current
presentation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Adoption of New Accounting Standards</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In December&nbsp;2007, the FASB issued guidance that establishes principles and requirements for
how an acquirer recognizes and measures in its financial statements the identifiable assets
acquired, the liabilities assumed, and any noncontrolling interest in an acquiree, including
the recognition and measurement of goodwill acquired in a business combination. The guidance
is effective for fiscal years beginning on or after December&nbsp;15, 2008. The adoption of this
standard did not have an impact on the Company&#146;s results of operations or financial position.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In September&nbsp;2006, the FASB issued guidance that defines fair value, establishes a framework
for measuring fair value and expands disclosures about fair value measurements. This guidance
also establishes a fair value hierarchy about the assumptions used to measure fair value and
clarifies assumptions about risk and the effect of a restriction on the sale or use of an
asset. The guidance was effective for fiscal years beginning after November&nbsp;15, 2007. In
February&nbsp;2008, the FASB issued guidance that delayed the effective date of this fair value
guidance for all nonfinancial assets and nonfinancial liabilities, except those that are
recognized or disclosed at fair value on a recurring basis (at least annually) to fiscal years
beginning after November&nbsp;15, 2008, and interim periods within those fiscal years. The impact
of this adoption was not material.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In December&nbsp;2007, the FASB issued guidance that changes the accounting and reporting for
minority interests, which is recharacterized as noncontrolling interests and classified as a
component of equity within the consolidated balance sheets. The guidance was effective as of
the beginning of the first fiscal year beginning on or after December&nbsp;15, 2008. The
presentation and disclosure requirements have been applied retrospectively for all periods
presented. The adoption of this standard resulted in a reclassification of $60,000 from other
liabilities to equity as of December&nbsp;31, 2006. The adoption of this standard did not have an
impact on the results of operations. The noncontrolling interest represents the preferred
shareholder minority interest in Oneida Preferred Funding Corp, a real estate investment
trust.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In June&nbsp;2009, the FASB replaced <I>The Hierarchy of Generally Accepted Accounting Principles</I>,
with the <I>FASB Accounting Standards Codification </I>(The Codification) as the source of
authoritative accounting principles recognized by the FASB to be applied by nongovernmental
entities in the preparation of financial statements in conformity with GAAP. Rules and
interpretive releases of the Securities and Exchange Commission under authority of federal
securities laws are also sources of authoritative GAAP for SEC registrants. The Codification
was effective for financial statements issued for periods ending after September&nbsp;15, 2009.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In June&nbsp;2008, the FASB issued guidance which addresses whether instruments granted in
share-based payment transactions are participating securities prior to vesting and, therefore,
included in the earnings allocation in computing earnings per share (EPS)&nbsp;under the two-class
method. Unvested share-based payment awards that contain non-forfeitable rights to dividends
or dividend</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 15<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Summary of Significant Accounting Policies (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Adoption of New Accounting Standards (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>equivalents (whether paid or unpaid) are participating securities and shall be included in the
computation of EPS pursuant to the two-class method. This guidance was effective for
financial statements issued for fiscal years beginning after December&nbsp;15, 2008, and interim
periods within those years. All prior-period EPS data presented were to be adjusted
retrospectively (including interim financial statements, summaries of earnings and, selected
financial data) to conform to the provisions of this guidance. The impact of this adoption was
not material.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In December&nbsp;2008, the FASB issued guidance on an employer&#146;s disclosure about plan assets of a
defined benefit pension or post retirement plan. These additional disclosures include
disclosure of investment policies and fair value disclosures of plan assets, including fair
value hierarchy. The guidance also includes a technical amendment that requires a nonpublic
entity to disclose net period benefit cost for each annual period for which a statement of
income is presented. This guidance is effective for fiscal years ending after December&nbsp;15,
2009. Upon initial application, provisions of the new guidance are not required for earlier
periods that are presented for comparative purposes. The new disclosures have been presented
in the notes to the consolidated financial statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In April&nbsp;2009, the FASB amended existing guidance for determining whether impairment is
other-than-temporary for debt securities. The guidance requires an entity to assess whether
it intends to sell, or it is more likely than not that it will be required to sell, a security
in an unrealized loss position before recovery of its amortized cost basis. If either of
these criteria is met, the entire difference between amortized cost and fair value is
recognized as impairment in earnings. For securities that do not meet the aforementioned
criteria, the amount of impairment is split into two components as follows: 1)
other-than-temporary impairment (OTTI)&nbsp;related to other factors, which is recognized in other
comprehensive income and 2) OTTI related to credit loss, which must be recognized in the
income statement. The credit loss is defined as the difference between the present value of
the cash flows expected to be collected and the amortized cost basis. Additionally,
disclosures about other-than-temporary impairments for debt and equity securities were
expanded.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This guidance was effective for interim and annual reporting periods ending after June&nbsp;15,
2009, with early adoption permitted for periods ending after March&nbsp;15, 2009. This guidance
was adopted April&nbsp;1, 2009. There was no transfers between retained earnings and accumulated
other comprehensive income upon adoption of this guidance. As a result of implementing this
guidance, the amount of other-than-temporary impairment recognized in the income statement for
the year ended December&nbsp;31, 2009 was $2.3&nbsp;million. Had the standard not been issued, the
other-than-
temporary impairment that would have been recognized in income for the period would have been
$2.9&nbsp;million.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In April, 2009, the FASB issued guidance that emphasizes that the objective of a fair value
measurement does not change even when market activity for the asset or liability has decreased
significantly. Fair value is the price that would be received for an asset sold or paid to
transfer a liability in an orderly transaction (that is, not forced liquidation or distressed
sale) between market participants at the measurement date under current market conditions.
When observable transactions or quoted prices are not considered orderly, then little if any
weight should be assigned to the indication of the asset or liability&#146;s fair value.
Adjustments to those transactions or prices should be applied to determine the appropriate
fair value. The guidance, which was applied prospectively, was effective for interim and
annual reporting periods ending after June&nbsp;15, 2009, early adoption for periods ending after
March&nbsp;15, 2009. The adoption of this guidance did not have an impact on the consolidated
financial statements.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 16<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Summary of Significant Accounting Policies (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Adoption of New Accounting Standards (Continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In August&nbsp;2009, the FASB amended existing guidance for the fair value measurement of
liabilities by clarifying that in circumstances in which a quoted price in an active market
for the identical liability is not available, a reporting entity is required to measure fair
value using a valuation technique that uses the quoted price of the identical liability when
traded as an asset, quoted prices for similar liabilities or similar liabilities when traded
as assets, or that is consistent with existing fair value guidance. The amendments in this
guidance also clarify that both a quoted price in an active market for the identical liability
at the measurement date and the quoted price for the identical liability when traded as an
asset in an active market when no adjustments to the quoted price of the asset are required
are Level 1 fair value measurements. The guidance was effective for the first reporting period
beginning after issuance. The adoption of this guidance did not have an impact on the
consolidated financial statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Effect of Newly Issued But Not Yet Effective Accounting Standards</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In June&nbsp;2009, the FASB amended previous guidance related to transfers of financial assets and
eliminates the concept of a qualifying special purpose entity. This guidance must be applied
as of the beginning of each reporting entity&#146;s first annual reporting period that begins after
November&nbsp;15, 2009, for interim periods within that first annual reporting period and for
interim and annual reporting periods thereafter. This guidance must be applied to transfers
occurring on or after the effective date. Additionally, on and after the effective date, the
concept of a qualifying special purpose entity is no longer relevant for accounting purposes.
Therefore, formerly qualifying special purpose entities should be evaluated for consolidation
by reporting entities on and after the effective date in accordance with the applicable
consolidation guidelines. The disclosure provisions were also amended and apply to transfers
that occurred both before and after the effective date of this guidance. The Company does not
expect that the adoption to have a material impact on the Company&#146;s consolidated financial
statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In June&nbsp;2009, the FASB amended guidance for consolidation of variable interest entity guidance
by replacing the quantitative-based risks and rewards calculation for determining which
enterprise, if any, has a controlling financial interest in a variable interest entity with an
approach focused on identifying which enterprise has the power to direct the activities of a
variable interest entity that most significantly impact the entity&#146;s economic performance and
(1)&nbsp;the obligation to absorb losses of the entity or (2)&nbsp;the right to receive benefits from
the entity. Additional disclosures about an
enterprise&#146;s involvement in variable interest entities are also required. This guidance is
effective as of the beginning of each reporting entity&#146;s first annual reporting period that
begins after November&nbsp;15, 2009, for interim periods within that first annual reporting period,
and for interim and annual reporting periods thereafter. Early adoption is prohibited. The
Company does not expect that the adoption to have a material impact on the Company&#146;s
consolidated financial statements.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F - 17<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>

<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>2. Investment Securities and Mortgage-Backed Securities</B>
</DIV>

  <!-- xbrl,body -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The following table summarizes the amortized cost and fair value of the available-for-sale
securities and held-to-maturity investment securities portfolio at December&nbsp;31, 2009 and 2008
and the corresponding amounts of gross unrealized gains and losses recognized in accumulated
other comprehensive income (loss)&nbsp;are as follows. There were no held-to-maturity investments
at December&nbsp;31, 2008.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Gross Unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gains</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Value</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Available-for-sale</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investment Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Debt securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">U. S. Agencies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,951,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">162,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">230,648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,883,734</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Corporate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,739,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">246,263</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">779,971</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,205,547</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Trust preferred securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,435,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,515,126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,920,764</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">State and municipals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,643,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">486,916</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,555</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,988,002</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Small Business Administration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">67,782,727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">895,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,668,443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">64,010,147</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mortgage-backed securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,418,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">548,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,923,891</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Freddie Mac</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,901,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">574,751</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,470,679</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Government National Mortgage Assoc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,982,885</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">330,582</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,298,224</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Collateralized Mortgage Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,758,271</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,957</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">978,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,829,637</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,060,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,503,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,042,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,522,431</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Total available-for-sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">117,843,682</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,399,363</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,710,467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">114,532,578</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Held-to-Maturity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investment Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Debt securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">U. S. Agencies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,975,417</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">113,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">164,311</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,924,474</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">State and municipals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,615,302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">335,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,925,009</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Small Business Administration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">886,546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">882,681</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32,477,265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">448,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">193,586</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32,732,164</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mortgage-backed securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,964,536</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,007,378</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Government National Mortgage Assoc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,250,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,226,702</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,214,885</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,471</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,234,080</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Total held-to-maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">47,692,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">494,956</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">220,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">47,966,244</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F - 18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Investment Securities and Mortgage-Backed Securities (Continued)</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Gross Unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gains</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Value</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Available-for-sale</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"> Investment Securities </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Debt securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">U. S. Agencies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,002,009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">215,847</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,204,602</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Corporate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,052,259</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,378,655</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,673,604</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Trust preferred securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,749,677</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,541,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,207,927</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">State and municipals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,273,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">223,495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,347,316</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Small Business Administration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,096</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">188</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,908</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">66,090,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">439,342</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,083,651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,446,357</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"> Mortgage-backed securities </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,640,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">282,417</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">82,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,839,984</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Freddie Mac</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,857,048</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">416,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,190,488</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Government National Mortgage Assoc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,938,697</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">533,185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,422</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,447,460</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Collateralized Mortgage Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,568,970</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">730,105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,838,865</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">74,004,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,231,714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">919,816</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">74,316,797</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Total available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">140,095,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,671,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,003,467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">134,763,154</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The amortized cost and fair value of the investment securities portfolio are shown by
expected maturities. Expected maturities will differ from contractual maturities because
borrowers may have the right to call or prepay obligations with or without call or prepayment
penalties.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Value</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Available-for-sale</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Within one year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,055,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,960,786</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">After one year through five years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,477,926</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,267,625</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">After five years through ten years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,431,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,772,022</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">After ten years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,818,239</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,009,714</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">67,782,727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">64,010,147</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Held-to-maturity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Within one year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,593</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">After one year through five years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,160,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,272,752</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">After five years through ten years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,602,014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,554,985</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">After ten years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,662,072</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,850,834</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32,477,265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32,732,164</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31, 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Value</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Available-for-sale</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Within one year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,645,788</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,659,301</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">After one year through five years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,711,146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,686,950</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">After five years through ten years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,639,849</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,643,133</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">After ten years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,093,883</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,456,973</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">66,090,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,446,357</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F - 19<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Investment Securities and Mortgage-Backed Securities (Continued)</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Sales and write-downs of available-for-sale securities were as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31,953,561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31,666,785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,928,266</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross Gains</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">790,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">200,727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">372,074</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross Losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,297,838</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,159,718</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,249</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The tax (benefit)&nbsp;provision related to these net realized gains and losses was
($583,058), ($371,034) and $136,508 respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Investment securities with a carrying value of $112,007,067 and $79,845,752 at December&nbsp;31,
2009 and 2008 respectively were pledged to collateralize borrowing arrangements, secure public
deposits and for other purposes required or permitted by law. At year-end 2009 and 2008,
there were no
holdings of securities of any one issuer, other than the U.S. Government, its agencies and
government sponsored enterprises, in an amount greater than 10% of stockholders&#146; equity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The following table summarizes the investment securities with unrealized losses at December
31, 2009 and 2008 aggregated by major security type and length of time in a continuous
unrealized loss position:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Less than 12 Months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>More than 12 Months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unrealized</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description of Securities</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loss</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loss</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loss</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Available-for-Sale</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U. S. Agencies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,767,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">230,648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,767,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">230,648</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,167,660</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">779,971</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,167,660</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">779,971</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trust preferreds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,920,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,515,126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,920,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,515,126</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">State and municipals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,914,637</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,921,616</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,836,253</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,555</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Small Business Administration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,621,059</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,621,059</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,357</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Freddie Mac</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">464,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">464,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,833</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Government National Mortgage
Assoc</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,418,705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,418,705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,243</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Collateralized Mortgage
Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,400,904</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,544,626</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">941,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,945,530</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">978,591</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total available-for-sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,599,539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">349,003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,554,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,361,464</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">43,154,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,710,467</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Held-to-Maturity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U. S. Agencies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,812,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">164,311</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,812,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">164,311</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">State and municipals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,157,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,157,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,410</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Small Business Administration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">882,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">882,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,865</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Government National Mortgage
Assoc</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,015,496</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,015,496</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,276</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total held-to-maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,867,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">220,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,867,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">220,862</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F - 20<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>2. Investment Securities and Mortgage-Backed Securities (Continued)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>December 31, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Less than 12 Months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>More than 12 Months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unrealized</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description of Securities</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loss</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loss</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loss</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Available-for-sale</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U. S. Agencies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,588,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,588,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">               $13,254</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,203,397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">676,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,070,206</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,702,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,273,603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">             3,378,655</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trust preferreds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,207,927</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,541,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,207,927</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">            2,541,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">State and municipals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,346,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,346,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">              149,804</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Small Business Administration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,908</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">188</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,908</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">                   188</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,481,752</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,422</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,192,322</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,674,074</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">               82,617</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Freddie Mac</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,919,533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,323</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,039,028</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">                82,672</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Government National Mortgage
Assoc</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,115,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,422</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,115,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">                24,422</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Collateralized Mortgage
Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,837,590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">730,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,275</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,838,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">               730,105</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total available-for-sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,506,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,733,961</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,591,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,269,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,097,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">            $7,003,467</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">As of December&nbsp;31, 2009, the Company&#146;s security portfolio consisted of 286 securities, 73
of which were in an unrealized loss position. The majority of the unrealized losses are
related to the Company&#146;s agency, mortgage-backed securities, corporate and trust preferred
securities as discussed below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>U.S. Agency and Agency Mortgage-Backed Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Fannie Mae, Freddie Mac, Ginnie Mae and the Small Business Administration guarantee the
contractual cash flows of our agency and mortgage-backed securities. Fannie Mae and Freddie
Mac are institutions which the government has affirmed its commitment to support. Our Ginnie
Mae mortgage-backed securities are backed by the full faith and credit of the U.S. Government.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">At December&nbsp;31, 2009, of the forty-two U.S. Government sponsored enterprise agency and
mortgage-backed securities in an unrealized loss position in our available-for-sale and
held-to-maturity portfolios, none were in a continuous unrealized loss position for 12&nbsp;months
or more. The unrealized losses at December&nbsp;31, 2009 were primarily attributable to changes in
interest rates and illiquidity, and not credit quality, and because the Company does not have
the intent to sell these agency and mortgage-backed securities and it is likely that it will
not be required to sell the securities before their anticipated recovery, the Company does not
consider these securities to be other-than-temporarily impaired at December&nbsp;31, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Non-Agency Collateralized Mortgage Obligations.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">All of our non-agency collateralized mortgage obligations carry various amounts of credit
enhancement and none are collateralized with subprime loans. These securities were purchased
based on the underlying loan characteristics such as loan to value ratio, credit scores,
property type, location and the level of credit enhancement. Current characteristics of each
security are reviewed regularly by management. If the level of credit loss coverage is
sufficient, it indicates that we will receive all of the originally scheduled cash flows.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F - 21<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oneida Financial Corp.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Investment Securities and Mortgage-Backed Securities (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At December&nbsp;31, 2009, of the five non-agency collateralized mortgage obligations in an
unrealized loss position; four were in a continuous unrealized loss position of 12&nbsp;months or
more. All were rated Aaa or better at time of purchase. Two are currently rated below
investment grade. We have assessed these securities in an unrealized loss position at December
31, 2009 and determined that the decline in fair value was temporary except for one
collateralized mortgage obligation. The Bank currently has a $1.0&nbsp;million obligation rated
below investment grade that based on expected cash flows, delinquencies and credit support
that the Company has considered impaired. The unrealized losses at December&nbsp;31, 2009 and 2008
were $237,000 and $224,000 respectively. The one security had an OTTI loss of $25,000 of
which $13,100 was recorded as expense during the period and $12,000 was recorded in other
comprehensive income. This security remains classified as available-for-sale at December&nbsp;31,
2009. For the other securities, we believe the decline in fair value was caused by the
significant widening in liquidity spreads across sectors related to the continued illiquidity
and uncertainty in the markets and not the credit quality of the individual issuer or
underlying assets. In making this determination, we considered the period of time the
securities were in a loss position, the percentage decline in comparison to the securities&#146;
amortized cost, the financial condition of the issuer, and the delinquency or default rates of
the underlying collateral. The Company monitors to insure it has adequate credit support. In
addition, we do not intend to sell these securities and it is likely that it will not be
required to sell the securities before their anticipated recovery. Included in the four
securities with unrealized losses considered temporary was a $1.4&nbsp;million collateralized
mortgage obligation, maturing August&nbsp;25, 2035 which has an interest rate of 5.5% and is rated
below investment grade. The unrealized loss on this security was $422,000 and $90,000 at
December&nbsp;31, 2009 and 2008, respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Corporate Debt and Municipal Securities</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At December&nbsp;31, 2009, of the seventeen corporate debt and municipal securities in an
unrealized loss position, seven were in a continuous unrealized loss position of 12&nbsp;months or
more. We have assessed these securities and determined that the decline in fair value was
temporary. In making this determination, we considered the period of time the securities were
in a loss position, the percentage decline in comparison with the securities&#146; amortized cost,
the financial condition of the issuer, and the delinquency or default rates based on the
applicable bond ratings. In addition, we do not have the intent to sell these securities and
it is not more likely than not that we will be required to sell these securities before the
recovery of their cost basis, which may be at maturity. Included in the nine securities whose
unrealized loss position exceeds 12&nbsp;months was a $2.0&nbsp;million General Motors Acceptance Corp.
(GMAC)&nbsp;bond, maturing October&nbsp;15, 2010 which has a rating below investment grade. This is a
variable rate note based on the three month Treasury bill whose unrealized loss was $100,000
and $1.1&nbsp;million at December&nbsp;31, 2009 and December&nbsp;31, 2008 respectively. In addition, also
included was a $2.5&nbsp;million Sallie Mae (SLMA)&nbsp;bond, maturing May&nbsp;1, 2012 which is rated below
investment grade. This is a variable rate note based on the consumer price index. The
unrealized loss at December&nbsp;31, 2009 and December&nbsp;31, 2008 was $402,000 and $875,000,
respectively. Both GMAC and SLMA are paying as agreed.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Trust Preferred Securities</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company currently has $5.9&nbsp;million invested in nine trust preferred securities as of
December&nbsp;31, 2009 whose unrealized losses have been in a continuous loss position exceeding 12
months or</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> F - 22<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oneida Financial Corp.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>



<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Investment Securities and Mortgage-Backed Securities (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>more. Of the $5.9&nbsp;million, $1.9&nbsp;million have variable rates of interest. $1.9&nbsp;million of the
investments are on nonaccrual as of December&nbsp;31, 2009. The unrealized losses at December&nbsp;31,
2009 and December&nbsp;31, 2008 on the nine securities totaled $3.5&nbsp;million and $2.5&nbsp;million
respectively. All of the securities are rated below investment grade as of December&nbsp;31, 2009.
The issuers of these securities are primarily banks, but some of the pools do include a
limited number of insurance companies. The Company uses the OTTI evaluation model to compare
the present value of expected cash flows to the previous estimates to ensure there are no
adverse changes in cash flows during the quarter. The OTTI model considers the structure and
term of the trust preferred securities and the financial condition of the underlying issuers,
the timing and amount of interest and principal payments of the underlying issuers, and the
allocation of the payments to the note classes. The current estimate of expected cash flows
is based on the most recent trustee reports and any other relevant market information
including announcements of interest payment deferrals or defaults of underlying trust
preferred securities. Assumptions used in the models are as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="63%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Significant inputs at December 31, 2009</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Annual prepayment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">0% annually, 100% at maturity</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Projected specific defaults/deferrals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">19.50% - 52.26</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Projected severity of loss on specific
defaults/deferrals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">85% - 100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Projected additional defaults:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">QTR 1 &#151; 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">1% (not annualized)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Thereafter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">0.50% applied annually</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Projected severity of loss on additional defaults</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">85% - 100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Present value discount rates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">5.39% - 9.48</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The discount rates range can vary depending on the index the instruments are tied to as well
as the spread for each instrument. In addition, three of the nine trust preferred securities
are fixed rate instruments. Upon completion of the December&nbsp;31, 2009 analysis, our model
indicated other-than-temporary impairment on eight of these securities, all of which
experienced additional defaults or deferrals during the period.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>These eight securities had OTTI losses of $2.9&nbsp;million of which $2.3&nbsp;million was recorded as
expense during the period and $600,000 was recorded in other comprehensive income. These
eight securities remain classified as available-for-sale at December&nbsp;31, 2009. It is possible
that the underlying collateral of these securities will perform worse than expectations
including an increase in deferrals/defaults above projections, which may lead to adverse
changes in cash flows on these securities and potential future other-than-temporary impairment
losses. Events that may trigger material declines in fair value for these securities in the
future would include, but are not limited to, deterioration of credit metrics, such as
significantly higher levels of defaults, and severity of loss on the underlying collateral and
further illiquidity.</TD>
</TR>




</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> F - 23<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oneida Financial Corp.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>



<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Investment Securities and Mortgage-Backed Securities (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The table below presents a roll-forward of the credit losses recognized in earnings for the
twelve months ended December&nbsp;31, 2009:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Beginning Balance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amounts related to credit loss for which an other-than
temporary impairment was not previously recognized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,294,841</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additions/Subtractions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amounts realized for securities sold during the period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amounts related to securities for which the company intends
to sell or that it will be more likely than not that the company
will be required to sell prior to recovery of amortized cost basis</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Reductions for increases in cash flows expected to be collected
that are recognized over the remaining life of the security</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Increases to the amount related to the credit loss for which
other-than-temporary was previously recognized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ending Balance December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,294,841</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has a $1.0&nbsp;million Lehman Brothers Holding Inc. medium term fixed rate note.
The security has been considered other-than-temporarily impaired as a result of Lehman
Brothers having filed for Chapter&nbsp;11 bankruptcy protection on September&nbsp;15, 2008. As a
result, the Company recorded a non-cash charge to earnings of $1.0&nbsp;million during 2008.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unrealized losses on other investments have not been recognized into income because the
issuer(s) securities are of investment grade (except as indicated above), management does not
intend to sell and it is more likely than not that management would be required to sell the
securities prior to their anticipated recovery, and the decline in fair value is largely due
to changes in interest rates. The fair value is expected to recover as the bond(s) approach
maturity.</TD>
</TR>

</TABLE>
</DIV>
<!-- xbrl,n -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Loans Receivable</B></TD>
</TR>

</TABLE>
</DIV>
 <!-- xbrl,body -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The components of loans receivable at December&nbsp;31 are as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Residential</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">144,118,057</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">148,097,760</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,010,889</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,817,598</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,127,037</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,218,848</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,796,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,241,770</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">298,052,583</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">304,375,976</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,900,587</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,624,283</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">295,151,996</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">301,751,693</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At December&nbsp;31, 2009 and 2008 loans to officers and directors were approximately $7.1
million and $4.1&nbsp;million respectively. During 2009 and 2008, $1.6&nbsp;million and $1.7&nbsp;million of
new loans were made to officers and directors respectively. Net pay downs and repayments in
aggregate on loans to officers and directors were approximately $1.6&nbsp;million and $883,000
during 2009 and 2008 respectively. Effect of changes in the composition of related parties
was approximately $3.1&nbsp;million and $124,000 during 2009 and 2008 respectively.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> F - 24<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oneida Financial Corp.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Loans Receivable (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At December&nbsp;31, 2009, Federal Home Loan Bank advances are collateralized by residential
mortgages in the amount of $72,574,283 pledged under a blanket collateral agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An analysis of the change in the allowance for loan losses for the years ended December&nbsp;31 is
as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,624,283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,511,310</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,080,913</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans charged off</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(693,066</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(526,196</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(230,877</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Recoveries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135,703</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">760,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">525,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NBV Acquisition</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">525,571</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Balance at end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,900,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,624,283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,511,310</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Impaired loans were as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2007</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Impaired loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,158,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allocated allowance for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">569,978</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average of impaired loans during the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,060,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash-basis interest income recognized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">106,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Nonperforming loans were as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>2008</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans past due over 90&nbsp;days still on accrual</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonaccrual loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">551,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">512,612</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nonperforming loans includes both smaller balance homogeneous loans that are collectively
evaluated for impairment and individually classified impaired loans.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Loans having carrying values of $434,882 and $259,649 were transferred to foreclosed assets in
2009 and 2008, respectively.</TD>
</TR>

</TABLE>
</DIV>
<!-- xbrl,n -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Fair Value</B></TD>
</TR>

</TABLE>
</DIV>
 <!-- xbrl,body -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fair value is the exchange price that would be received for an asset or paid to transfer a
liability (exit price) in the principal or most advantageous market for the asset or liability
in an orderly transaction between market participants on the measurement date. There are
three levels of inputs that may be used to measure fair values:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Level 1: Quoted prices (unadjusted)&nbsp;for identical assets or liabilities in active markets
that the entity has the ability to access as of the measurement date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Level 2: Significant other observable inputs other than Level 1 prices such as quoted
prices for similar assets or liabilities; quoted prices in markets that are not active;
or other inputs that are observable or can be corroborated by observable market data.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> F - 25<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oneida Financial Corp.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Fair Value (Continued)</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Level 3: Significant unobservable inputs that reflect a reporting entity&#146;s own
assumptions about the assumptions that market participants would use in pricing an asset
or liability.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The company uses the following methods and significant assumptions to estimate the fair value
of each type of financial instrument.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Securities</U>: The fair values of trading securities and investment securities are
determined by quoted market prices, if available (Level 1 inputs). For securities where
quoted prices are not available, fair values are calculated based on market price of similar
securities (Level 2). For securities where quoted prices or market prices of similar
securities are not available, fair values are calculated using discounted cash flows or other
market indicators (Level 3). Discounted cash flows are calculated using spread to swap and
LIBOR curves that are updated to incorporate loss severities, volatility, credit spread and
optionality. Defaults and deferrals on individual securities are reviewed and incorporated
into the calculations. During times when trading is more liquid, broker quotes are used (if
available) to validate the model .</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Trust Preferred Securities which are issued by financial institutions and insurance companies
were historically priced using Level 2 inputs. The decline in the level of observable inputs
and market activity in this class of investments by the measurement date has been significant
and resulted in unreliable external pricing. Broker pricing and bid/ask spreads, when
available, vary widely. The once active market has become comparatively inactive. As such,
these investments are now priced using Level 3 inputs.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has developed an internal model for pricing these securities. Information such as
historical and current performance of the underlying collateral, deferral/default rates,
collateral coverage ratios, break in yield calculations, cash flow projections, liquidity and
credit premiums required by a market participant, and financial trend analysis with respect to
the individual issuing financial institutions and insurance companies, are utilized in
determining individual security valuations. Due to current market conditions as well as the
limited trading activity of these securities, the market value of the securities is highly
sensitive to assumption changes and market volatility.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Corporate securities were historically priced using Level 2 inputs. Due to the lack of market
of similar type investments, one of our corporate securities is considered Level 3. The
Company does
obtain some broker quotes on this investment based on trading desk information in which the
prices are heavily influenced by unobservable market inputs.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Common and preferred equity securities are generally priced using Level 1 or Level 2 inputs
due to the market activity of these types of securities. One of the preferred securities is
considered level 3 pricing due to the limited trading activity of the individual security in
the market and lack of certain brokers providing quotes on this type of security. The company
does obtain available, if any broker quotes, reviews past history of contractual payments and
financial condition of the corporation in determining an appropriate market value for this
type of security.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Impaired Loans:</U> Estimates of fair value used for other collateral supporting
commercial loans generally is not observable in the marketplace and therefore, such valuations
have been classified as Level 3. Impaired loans had a principal balance of $2.2&nbsp;million with a
valuation allowance of $570,000 as of December&nbsp;31, 2009 resulting in an additional provision
for loan losses of $570,000 for the year then ended. There were no impaired loans as of
December&nbsp;31, 2008.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> F - 26<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oneida Financial Corp.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Fair Value (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Loan Servicing Rights:</U> Fair value is based on market prices for comparable mortgage
servicing contracts, when available, or alternatively based on a valuation model that
calculates the present value of estimated future net servicing income.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Loans Held for Sale:</U> Loans held for sale are carried at the lower of cost or fair
value, as determined by outstanding commitments, from third party investors.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Assets measured at fair value on a recurring basis for which the Company has elected the fair
value option, are summarized below:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>Fair Value Measurements</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>at December 31, 2009 Using</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Quoted Prices in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Significant</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Active Markets</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Significant</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>for Identical</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Observable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unobservable</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Inputs</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Inputs</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Level 1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Level 2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Level 3)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Trading securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Common and preferred equities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,627,280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,568,437</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,058,843</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Available for sale securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">U.S. Agency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,883,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,883,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Corporate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,205,547</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,955,547</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,250,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Trust preferreds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,920,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,920,764</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">State and municipal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,988,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,988,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Small Business Administration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Residential mortgage-backed securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,692,794</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,692,794</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Collateralized mortgage obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,829,637</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,829,637</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">122,159,858</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">111,930,251</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,229,607</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>Fair Value Measurements</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>at December 31, 2008 Using</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Quoted Prices in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Significant</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Active Markets</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Significant</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>for Identical</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Observable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unobservable</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Inputs</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Inputs</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Level 1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Level 2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Level 3)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Trading securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Common and preferred equities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,941,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,921,096</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,020,380</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Available for sale securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">U.S. Agency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,204,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,204,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Corporate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,673,604</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,173,604</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,500,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Trust preferreds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,207,927</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,207,927</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">State and municipal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,347,316</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,347,316</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Small Business Administration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,908</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,908</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Residential mortgage-backed securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,477,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,709,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">768,169</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Collateralized mortgage obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,838,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,838,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">140,704,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">127,208,154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,496,476</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --> F - 27<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oneida Financial Corp.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Fair Value (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The table below presents a reconciliation for all assets measured at fair value on a recurring
basis using significant unobservable inputs (Level 3) for the year ended December&nbsp;31, 2009:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>Fair Value Measurements Using Significant</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Unobservable Inputs (Level 3)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Trading</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Trust</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Collateralized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Corporate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Preferreds</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Mortgage Obligations</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Beginning balance, January&nbsp;1, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,020,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,207,927</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">768,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,496,476</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total gains or losses (realized/unrealized)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Included in earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Interest income on securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(39,228</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(18,890</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,948</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(50,730</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other changes in fair value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,691</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,691</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net impairment losses recognized in earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,281,741</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,100</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,294,841</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Included in other comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">749,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(986,532</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(184,769</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(421,741</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchases, issuances, and settlements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transfers in and/or out of Level 3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(577,248</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(577,248</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ending balance, December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,058,843</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,920,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,229,607</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>Fair Value Measurements Using Significant</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Unobservable Inputs (Level 3)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Trading</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Trust</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Collateralized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Corporate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Preferreds</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Mortgage Obligations</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Beginning balance, January&nbsp;1, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,996,527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,360,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,094,996</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,451,523</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total gains or losses (realized/unrealized)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Included in earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Interest income on securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(39,228</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(23,271</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(61,920</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other changes in fair value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,384</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,697</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Gains (losses)&nbsp;on sale of securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Included in other comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(860,440</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,167,178</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(64,272</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,091,890</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchases, issuances, and settlements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transfers in and/or out of Level 3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,311,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">832,302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,144,066</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ending balance, December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,020,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,207,927</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">768,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,496,476</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mortgage servicing rights are carried at the lower of cost or fair value. There was no
valuation allowance for mortgage servicing rights as of December&nbsp;31, 2009 and 2008, and no
charges included in earnings were reported for the years then ended.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The carrying amounts and estimated fair values of financial instruments, at December&nbsp;31, 2009
and December&nbsp;31, 2008 are as follows:</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> F - 28<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oneida Financial Corp.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Fair Value (Continued)</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Estimated</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Fair Value</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(Amounts in thousands)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Financial assets:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">39,537</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">39,537</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">13,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">13,294</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investment securities, held-to-maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,966</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loans held for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">749</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loans receivable, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">295,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">301,752</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">317,625</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal Home Loan Bank stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,665</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accrued interest receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,469</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,469</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,659</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,659</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Financial liabilities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">489,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">476,171</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">425,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">421,101</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal Home Loan Bank advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,788</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accrued interest payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">332</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">332</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The methods and assumptions, not previously presented, used to estimate fair value are
described as follows:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Carrying amount is the estimated fair value for cash and cash equivalents, interest bearing
deposits, accrued interest receivable and payable, demand deposits, short-term debt, and
variable rate loans or deposits that reprice frequently and fully. The method for determining
the fair values for securities were described previously. For fixed rate loans or deposits
and for variable rate loans or deposits with infrequent repricing or repricing limits, fair
value is based on discounted cash flows using current market rates applied to the estimated
life and credit risk. Fair value of debt is based on current rates for similar financing. It
is not practicable to determine the fair value of Federal Home Loan Bank stock due to
restrictions placed on its transferability. The fair value of off-balance-sheet items is not
considered material.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Fair Value Option</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company adopted &#147;The Fair Value Option for Financial Assets and Liabilities&#148; on January&nbsp;1,
2008. This guidance permits, but does not require, companies to measure many financial
instruments and certain other items at fair value. The decision to elect the fair value
option is made individually for each instrument and is irrevocable once made. Changes in fair
value for the selected instruments are recorded in earnings. The Company has elected to adopt
this standard for common and preferred equity securities as they do not have stated maturity
values and the fair value fluctuates with market changes and using fair value appears to be an
appropriate measure.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following table summarizes the impact of adopting the fair value option as of January&nbsp;1,
2008:</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --> F - 29<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4. Fair Value (Continued)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Balance Sheet</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Balance Sheet</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Net Gain/(Loss)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>January 1, 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>January 1, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>upon</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>after Adoption of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Prior to Adoption</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Adoption</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair Value Option</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale transferred to trading account assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amortized cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,655,404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,532,235</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,123,169</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrealized depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,532,235</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,532,235</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net transferred to
trading account</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,123,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,123,169</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cumulative effect of adoption (pre-tax)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,532,235</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax impact</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,012,894</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cumulative effect adjustment (net of tax)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Decrease to retained earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,519,341</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following table presents the amount of gains and losses from fair value changes
included in income before income taxes for financial assets and liabilities carried at fair
value for the years ended December&nbsp;31, 2009 and 2008:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 0px solid #000000"><B>Changes in Fair Values for the year ended December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>for Items Measured at Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Pursuant to Election of the Fair Value Option</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total Changes</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Fair Values</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Included in</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gains and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Current Period</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Income</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Expense</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Earnings</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trading securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,725,032</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(39,228</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,685,804</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 0px solid #000000"><B>Changes in Fair Values for the year ended December 31, 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>for Items Measured at Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Pursuant to Election of the Fair Value Option</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total Changes</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Fair Values</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Included in</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gains and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Current Period</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Income</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Expense</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Earnings</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trading securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(7,674,699</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(39,228</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(7,713,927</TD>
    <TD nowrap>)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. Secondary Mortgage Market Activities</B>
</DIV>

 <!-- xbrl,body -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mortgage loans serviced for others are not included in the accompanying consolidated
statements of condition. The principal balance of these loans at year end are as follow:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage loan portfolios serviced for:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Freddie Mac</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">111,043,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">83,133,952</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal Home Loan Bank</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,252,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,970,092</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F -30<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5. Secondary Mortgage Market Activities (Continued)</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Custodial escrow balances maintained in connection with serviced loans were approximately
$1,528,000 and $1,275,000 at December&nbsp;31, 2009 and 2008, respectively.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Activity for mortgage servicing rights and the related valuation allowance follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">320,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">332,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">326,081</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">331,104</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117,026</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Disposals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortized to expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(150,564</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(108,712</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(110,120</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Balance at end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">500,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">320,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">332,987</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Valuation Allowance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The fair value of mortgage servicing rights approximated book value as of year-end 2009
and 2008. Fair value at year-end 2009 was determined using a discount rate of 6.25%,
prepayment speed of 20% and a weighted average default rate of 5%. Fair value at year end
2008 was determined using a discount rate of 7.5%, prepayment speed of 20% and a weighted
average default rate of 5%.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The weighted average amortization period is 8&nbsp;years. Estimated amortization expense for each
of the next five years is:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">142,562</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,927</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,382</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,346</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,888</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<!-- xbrl,n -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. Premises and Equipment</B>
</DIV>

 <!-- xbrl,body -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Premises and equipment consist of the following at December&nbsp;31:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,814,483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,814,483</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Buildings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,803,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,914,538</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equipment and fixtures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,605,092</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,262,948</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction in progress</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">184,692</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,267,568</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,176,661</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accumulated depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,993,052</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14,386,895</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net book value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,274,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,789,766</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Depreciation expense was $1,608,017, $1,609,404 and $1,406,308 in 2009, 2008 and 2007
respectively.</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F -31<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>

<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>7. Goodwill and Other Intangible Assets</B>
</DIV>
 <!-- xbrl,body -->

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Other intangible assets consist of the following at December&nbsp;31:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>As of December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Accumulated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortization</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Net</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Core deposit intangible</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,705,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,485,828</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,219,563</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Customer relationship intangible</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,265,543</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(855,175</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">410,368</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,970,934</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,341,003</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,629,931</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>As of December 31, 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Accumulated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortization</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Net</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Core deposit intangible</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,705,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,158,828</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,546,563</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Customer relationship intangible</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,265,543</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(712,105</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">553,438</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,970,934</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,870,933</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,100,001</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Aggregate amortization expense was $470,070, $540,585, and $547,759 for 2009, 2008 and
2007.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Estimated amortization expense for each of the next five years:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">411,990</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">361,307</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">312,507</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">263,014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125,946</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The changes in the carrying amount of goodwill for the year ended December&nbsp;31 is as
follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Banking</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Insurance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Benefit Consulting</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Activities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Activities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Activities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance as of December&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,577,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,045,301</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,513,826</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,137,040</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill acquired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,457,992</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131,417</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,655,562</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance as of December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,035,905</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,111,454</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,645,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,792,602</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill acquired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30,774</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,567</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129,044</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">170,837</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance as of December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,005,131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,184,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,774,287</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,963,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill acquired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">84,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135,417</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">219,662</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance as of December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,005,131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,268,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,909,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,183,101</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During 2006, the Company completed its acquisition of Parsons, Cote &#038; Company and Benefit
Consulting Group LLC. Goodwill in the amount of $576,000 and intangible assets in the amount
of $71,000 were recorded as part of the Parsons, Cote &#038; Company acquisition. Under the terms
of the agreement, contingent purchase payments based on future performance levels may be made
over a five-year period ending December&nbsp;31, 2010. Additional goodwill in the amount of
$84,245, $72,567 and $66,153 was recorded for the contingent purchase payment made in 2009,
2008 and 2007 respectively.</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F -32<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>7. Goodwill and Other Intangible Assets (Continued)</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During 2006, the Company completed its acquisition of Benefit Consulting Group LLC. Goodwill
in the amount of $2.5&nbsp;million and other intangible assets in the amount of $1.1&nbsp;million were
recorded as part of the acquisition of Benefit Consulting Group LLC. Under the terms of the
agreement, continent purchase payments based on future performance levels may be made over a
five-year period ending December&nbsp;31, 2010. Additional goodwill in the amount of $135,417,
$129,044 and $131,417 was recorded for the contingent purchase payment made in 2009, 2008 and
2007 respectively.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During 2007, the Company completed its acquisition of Vernon Bank Corporation, the stock
holding company of the National Bank of Vernon. Goodwill in the amount of $4.4&nbsp;million and
other intangible assets in the amount of $1.5&nbsp;million were recorded as part of the
acquisition.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Impairment exists when a reporting unit&#146;s carrying value of goodwill exceeds its fair
value, which is determined through a two-step test. Step 1 includes the determination of the
carrying value of our reporting units, including the existing goodwill and intangible assets,
and estimating the fair value of the reporting units. We determined the fair value of our
reporting units and compared them to their carrying amount. If the carrying amount of the
reporting units exceeds their fair value, we are required to perform a second step to the
impairment test. Our annual impairment analysis as of December&nbsp;31, 2009 indicated that a step
2 analysis was not required. As of December&nbsp;31, 2009 and 2008, no impairment was recorded for
goodwill.</TD>
</TR>

</TABLE>
</DIV>
<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. Due to Depositors</B>
</DIV>

 <!-- xbrl,body -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amounts due to depositors at December&nbsp;31 are as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest bearing demand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">62,996,738</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,786,827</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81,889,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,241,962</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Money market and interest-bearing checking</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">186,526,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,748,368</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156,903,181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155,824,510</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage escrow funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,048,567</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,096,430</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total due to depositors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">489,364,407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">425,698,097</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At December&nbsp;31, 2009 and 2008, time deposits with balances in excess of $100,000 totaled
$56,688,882 and $45,851,817, respectively.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The contractual maturity of time deposits as of December&nbsp;31, are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Maturity</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">One year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">123,357,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">78.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">124,083,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">79.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">One to two years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,630,577</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,526,028</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Two to three years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,754,751</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,092,806</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Three to four years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,669,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,744,525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Four to five years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,485,961</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,353,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over five years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,459</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">156,903,181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">155,824,510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F -33<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>

<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>9. Borrowings</B>
</DIV>

 <!-- xbrl,body -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Outstanding borrowings as of December&nbsp;31 are as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-term borrowings:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal Home Loan Bank overnight line of credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,825,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal Home Loan Bank advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term borrowings:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal Home Loan Bank advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">52,825,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Borrowings at December&nbsp;31, 2009 have maturity dates as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Range of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Rates</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">2.87% - 6.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.82</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.34</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.34</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.33</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.33</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thereafter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank has available a $109,922,600 line of credit with the Federal Home Loan Bank of
which $0 is outstanding at December&nbsp;31, 2009. Each advance is payable at its maturity date,
with a prepayment penalty for fixed rate advances. At December&nbsp;31, 2009, borrowings are
collateralized by pledged securities, which had a carrying value of $7.6&nbsp;million and
residential mortgages in the amount of $72,574,283 pledged under a blanket collateral
agreement. The Bank also has available a $5,000,000 unsecured line of credit with Key Bank of
which $0 is outstanding at December&nbsp;31, 2009. In addition, the Bank also has available a
$5,000,000 unsecured line of credit with M&#038;T Bank of which $0 is outstanding at December&nbsp;31,
2009.</TD>
</TR>

</TABLE>
</DIV>

<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10. Income Taxes</B>
</DIV>

 <!-- xbrl,body -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The provision for income taxes for the years ended December&nbsp;31, consists of the following:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">865,283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">626,812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,154,383</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">State</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,547</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,086</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104,202</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">299,057</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,322,612</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,267</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">State</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(531,086</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,798</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,222,800</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,367,650</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A reconciliation of the federal statutory rate to the effective income tax rate for the
years ended December&nbsp;31, is as follow</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F -34<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>10.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Income Taxes (Continued)</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal statutory income tax rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">State tax, net of federal benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax exempt investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings from bank owned life insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1</TD>
    <TD nowrap>)%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Effective tax rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">57</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">28</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The components of deferred income taxes included in other assets in the statements of
condition are approximately as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Asset (Liability)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,093,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">972,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">296,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment security charges/adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,162,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,536,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized losses on securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,324,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,133,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pension benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">514,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">789,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(388,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(296,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage related fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(389,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(336,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Intangible amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(257,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(158,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase accounting adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(314,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(426,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prepaid expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(316,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(307,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(72,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(65,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total deferred income tax asset, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,653,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,070,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At December&nbsp;31, 2009 and December&nbsp;31, 2008, the Company had no unrecognized tax benefits
recorded. The Company does not expect the amount of unrecognized tax benefits to
significantly change within the next twelve months.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company recognizes interest and penalties related to income tax matters as part of income
tax expense. At December&nbsp;31, 2009 and December&nbsp;31, 2008, there were no amounts accrued for
interest and penalties.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company is subject to U.S. federal income tax as well as New York state income tax. The
Company is no longer subject to federal or state examinations for tax years prior to 2006.
The tax years 2006-2008 remain open to federal and state examination.</TD>
</TR>

</TABLE>
</DIV>

<!-- xbrl,n -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Benefit Plans</B></TD>
</TR>

</TABLE>
</DIV>

 <!-- xbrl,body -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank provides a noncontributory defined benefit retirement accumulation plan (cash balance
plan) covering substantially all employees. Under the plan, retirement benefits are primarily
a function of the employee&#146;s years of service and level of compensation. As of June&nbsp;15, 2004,
the Bank had a plan amendment to freeze the plan benefits for plan participants. The Bank
uses a December&nbsp;31 measurement date for its pension plan.</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 35<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Benefit Plans (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Information about changes in obligations and funded status of the defined benefit pension plan
follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in benefit obligation:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefit obligation at beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,253,399</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,312,486</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163,330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">212,080</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actuarial gain (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,346</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefits paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(186,805</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(332,513</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Benefit obligation at end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,288,665</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,253,399</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in plan assets, at fair value:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Beginning plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,747,228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,010,169</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actual return</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">509,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,013,908</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefits paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(186,805</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(332,513</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Employer contributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">164,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,480</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Settlements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Ending plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,233,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,747,228</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Funded status at year end (plan assets less benefit obligation)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,055,242</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,506,171</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amounts recognized in accumulated other comprehensive income at December&nbsp;31 consist of:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net actuarial loss (gain)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,436,186</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,828,011</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prior service cost (credit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,436,186</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,828,011</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The accumulated benefit obligation for the pension plan was $4,288,665 and $4,253,399, at
year-end 2009 and 2008 respectively.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The net periodic pension cost and other amounts recognized in other comprehensive income for
the years ended December&nbsp;31 includes the following components:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Service cost benefits earned during the period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest cost on projected benefit obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163,330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">212,080</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220,870</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected return on plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(205,187</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(291,424</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(292,236</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net amortization and deferral</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146,753</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,154</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net periodic pension (benefit)&nbsp;cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">104,896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(13,608</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(13,212</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss (gain)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(391,825</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,300,942</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(113,978</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prior service cost (credit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization of prior service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total recognized in other comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(391,825</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,300,942</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(113,978</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total recognized in net periodic benefit
cost and other comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(286,929</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,287,334</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(127,190</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F - 36<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Benefit Plans (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The estimated net loss for the defined benefit pension plan that will be amortized from
accumulated other comprehensive income into net periodic benefit cost over the next fiscal
year is $146,000.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Assumptions</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Weighted-average assumptions used to determine
benefit obligation at
year-end</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discount rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.97</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.06</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.18</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Weighted-average assumptions used to determine
net cost</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discount rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.06</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.08</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected return on plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.50</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Plan Assets</U></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s overall investment strategy is to achieve a mix of approximately 65% of
investments for long-term growth and 35% for near-term benefit payments with a wide
diversification of asset types, fund strategies, and fund managers. The target allocations
for plan assets are shown in the table below. Equity securities primarily include investments
in common stock. Fixed income securities include corporate bonds, government issues and
mortgage-backed securities. Other fixed income securities include a money market account and
checking account.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The weighted average expected long-term rate of return is estimated based on current trends in
the plan assets as well as projected future rates of return on those assets. The following
assumptions were used in determining the long-term rate of return:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Equity securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dividend discount model, the smoothed earnings yield model and the
equity risk premium model</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fixed income securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Current yield to maturity and forecasts of future yields</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The long term rate of return considers historical returns. There were no adjustments made to
historical returns.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan is not prohibited from investing in any investments as long as they meet fiduciary
standards as set forth in the plan document.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s pension plan asset allocation at year-end 2009 and 2008, target allocation for
2010, and expected long-term rate of return by asset category are as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted-</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Target</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Plan Assets</B></TD>
     <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average Expected</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allocation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>at December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Long Term Rate</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Asset Category</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>of Return</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">65</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Debt Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">71</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-37<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Benefit Plans (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The fair value of the plan assets, as previously defined, at December&nbsp;31, 2009, by asset
category, is as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 0px solid #000000"><B>Fair Value Measurements</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>at December 31, 2009 Using</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Quoted Prices in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Significant</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Active Markets</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Significant</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>for Identical</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Observable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unobservable</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Inputs</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Inputs</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Level 1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Level 2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Level 3)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plan Assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Equities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Common stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">948,360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">948,360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fixed income securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Corporate bonds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">581,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">581,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Government issues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,277,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,277,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">FHLMC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">FNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,939</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,939</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other fixed income securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,233,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">948,360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,285,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There were no plan assets measured at fair value using significant unobservable inputs
(Level 3) for period ending December&nbsp;31, 2009.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company expects to contribute $200,000 to the Plan for the year ending December&nbsp;31, 2010.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following benefit payments are expected to be paid:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Fiscal year ending December 31:</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">350,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">368,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">386,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">405,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">425,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Years 2015 - 2019</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,468,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>State Bank of Chittenango participated in the New York State Bankers Retirement System
(the System) plan which was a noncontributory defined benefit plan covering substantially all
employees. Under the plan, retirement benefits were primarily a function of the employee&#146;s
years of service and level of compensation. The plan was frozen as of May&nbsp;31, 2002. State
Bank of Chittenango uses a December&nbsp;31 measurement date for its pension plan.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In September&nbsp;2006, the FASB issued guidance which requires that defined benefit plan assets
and obligations to be measured as of the date of the employer&#146;s fiscal year-end, starting in
2008. Through 2007, the Company utilized the early measurement date, and measured the funded
status of the defined benefit plan assets and obligations as of September&nbsp;30<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> each
year. In accordance with the new guidance, the net periodic benefit cost for the period
between the September&nbsp;30 measurement date and the 2008 fiscal year end measurement were
allocated proportionately between amounts to be recognized as an adjustment to retained
earnings and net period benefit cost</TD>
</TR>




</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 38<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Benefit Plans (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for the fiscal year. As a result, the Company increased January&nbsp;1, 2008 opening retained
earnings by $8,215, increased deferred income taxes by $41,093, decreased the pension
liability by $102,732 and debited accumulated other comprehensive income for $69,854.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following table represents a reconciliation of the change in benefit obligation, plan
assets and funded status of the plan as of December&nbsp;31:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in benefit obligation:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Beginning benefit obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,351,556</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,250,073</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,716</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134,793</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actuarial gain (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,755</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158,930</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefits paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(221,788</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(219,440</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Ending benefit obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,332,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,351,556</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in plan assets, at fair value:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Beginning plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,952,609</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,878,899</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actual return on plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">370,819</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(706,850</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Contributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefits paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(213,981</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(219,440</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Ending plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,169,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,952,609</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Funded status at end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(162,592</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(398,947</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amounts recognized in accumulated other comprehensive income at December&nbsp;31 consist of:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>

</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net actuarial loss (gain)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">854,151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,110,377</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">(80,740</TD>
    <TD>)&nbsp;</TD>

</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prior service cost (credit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">854,151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,110,377</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">(80,740</TD>
    <TD>)&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>

        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The accumulated benefit obligation for the pension plan was $2,332,039 and $2,351,556 at
year-end 2009 and 2008 respectively.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The net periodic pension cost and other amounts recognized in other comprehensive income for
the years ended December&nbsp;31 includes the following components:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Transition</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Service cost benefits earned during the period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,716</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest cost on projected benefit obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,564</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected return on plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(139,125</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(208,914</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,365</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(203,130</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization of net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,480</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net periodic pension benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">79,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(46,921</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(13,691</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(45,166</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss (gain)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(199,746</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,074,694</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(115,016</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prior service cost (credit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization of net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(56,480</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total recognized in other comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(256,226</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,074,694</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(115,016</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total recognized in net periodic benefit
cost and other comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(176,355</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,027,773</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(13,691</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(160,182</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F - 39<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Benefit Plans (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The estimated net loss for the defined benefit pension plan that will be amortized from
accumulated other comprehensive income into net periodic benefit cost over the next fiscal
year is $42,783.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Assumptions</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Weighted-average assumptions used to determine
benefit obligation at
year-end</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discount rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.25</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Weighted-average assumptions used to determine
net periodic pension cost</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discount rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.25</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected return on plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.50</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Plan Assets</U></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s overall investment strategy is to achieve a mix of approximately 97% of
investments for long-term growth and 3% for near-term benefit payments with a wide
diversification of asset types, fund strategies, and fund managers. The target allocations
for System assets are shown in the table below. Cash equivalents consist primarily of short
term investment funds. Equity securities primarily include investments in common stock and
depository receipts.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fixed income securities include corporate bonds, government issues and mortgage-backed
securities. Other financial instruments primarily include rights and warrants.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The weighted average expected long-term rate of return is estimated based on current trends in
the System&#146;s assets as well as projected future rates of return on those assets and reasonable
actuarial assumptions based on the guidance provided by ASOP No.&nbsp;27 for long term inflation,
and the real and nominal rate of investment return for a specific mix of asset classes. The
following assumptions were used in determining the long-term rate of return:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Equity securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dividend discount model, the smoothed earnings yield model and the equity
risk premium model</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fixed income securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Current yield to maturity and forecasts of future yields</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Other financial instruments
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Comparison of the specific investment&#146;s risk to that of fixed
income and equity instruments and using judgment</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The long term rate of return considers historical returns. Adjustments were made to
historical returns in order to reflect expectations of future returns. These adjustments
were
due to factor forecasts by economists and long-term U.S. Treasury yields to forecast long-term
inflation. In addition, forecasts by economists and others for long-term GDP growth were
factored into the development of assumptions for earnings growth and per capital income.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective March&nbsp;2009, the System revised its investment guidelines. The System currently
prohibits its investment managers from purchasing the following investments; (1)&nbsp;Equity
securities in emerging market countries as defined by the Morgan Stanley Emerging Markets
Index, short sales, unregistered securities and margin purchases; (2)&nbsp;fixed income securities
that are of BBB quality or less, CMOs that have an inverse floating rate and whose payments
don&#146;t include principal or which aren&#146;t certified and guaranteed by the U.S. Government, ABS
that aren&#146;t issued or guaranteed by the U.S. or its agencies or its instrumentalities,
non-agency residential subprime or ALT-A MBS and structured notes; and (3)&nbsp;other financial
instruments such as unhedged currency exposure in</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F - 40<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Benefit Plans (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>countries not defined as &#147;high income economies&#148; by the World Bank. All other investments not
prohibited by the System are permitted. At December&nbsp;31, 2009, the System holds certain
investments which are no longer deemed acceptable to acquire. These positions will be
liquidated when the investment managers deem that such liquidation is in the best interest of
the System.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s pension plan asset allocation at year-end 2009 and 2008, target allocation for
2010 and expected long-term rate of return by asset category are as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted-</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Target</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Plan Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average Expected</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allocation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>at December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Long Term Rate</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Asset Category</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Return</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">0 - 20</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">40 - 60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">46</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">48</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fixed income securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">40 - 60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">40</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">41</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other financial instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">0 - 5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following table represents the Plan&#146;s fair value hierarchy for its financial assets
(investments), as defined previously measured at fair value on a recurring basis as of
December&nbsp;31, 2009:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>Fair Value Measurements</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>at December 31, 2009 Using</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Quoted Prices in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Significant</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Active Markets</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Significant</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>for Identical</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Observable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unobservable</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Inputs</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Inputs</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Level 1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Level 2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Level 3)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plan Assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Short term investment funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">294,071</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">294,071</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Equities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Common stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">970,858</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">970,858</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Depository receipts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other equities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fixed income securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Corporate bonds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">206,883</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">206,883</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Government issues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">361,394</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">361,394</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Collateralized mortgage obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">FHLMC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">FNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135,382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135,382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">GNMA I</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,881</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,881</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other fixed income securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,232</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,232</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,169,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,289,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">         880,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The table below presents a reconciliation of all plan assets measured at fair value using
significant unobservable inputs (Level 3) for the year ended December&nbsp;31, 2009:</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 41<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>11. Benefit Plans (Continued)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Beginning balance, January&nbsp;1, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">790,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Actual return on plan assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Relating to assets still held at the reporting date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">321,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Relating to assets sold during the period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(348,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchases, sales, and settlements, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(763,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Transfers in and/or out of Level 3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ending balance, December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company expects to contribute $0 for the year ending December&nbsp;31, 2010.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following benefit payments are expected to be paid:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Fiscal year ending December 31:</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">187,950</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">183,155</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">178,245</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">179,926</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,926</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Years 2015 - 2019</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">846,413</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition to the retirement plan, the Company sponsors a 401(k) savings plan which
enables employees who meet the plan&#146;s eligibility requirements to defer income on a pre-tax
basis. Employees may elect to contribute a portion of their compensation, with the Company
matching the contribution up to 5% of compensation. Employer contributions associated with
the plan amounted
to $570,401, $531,426 and $493,218 for the years ended December&nbsp;31, 2009, 2008 and 2007,
respectively.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank provides The Oneida Savings Bank Employee Stock Ownership Plan with all employees
meeting the age and service requirements eligible to participate in the Plan. Employees are
eligible for the Plan if they are twenty-one years of age and have one year of service with at
least 1,000 hours. The ESOP purchased 299,655 shares of common stock which was funded by a
loan from the Company payable in ten equal installments over 10&nbsp;years bearing a variable
interest rate of prime at the beginning of the year which was 8.25% for 2007. Loan payments
are to be funded by cash contributions from the Bank. The loan can be prepaid without
penalty. Shares purchased by the ESOP are maintained in a suspense account and held for
allocation among the participants. As loan payments are made, shares are committed to be
released and subsequently allocated to employee accounts at each calendar year end.
Compensation expense is recognized related to the shares committed to be released based on the
average market price during the period. Cash dividends received on unallocated shares are
used to pay debt service. For the purpose of computing earnings per share, unallocated ESOP
shares are not considered outstanding.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Compensation expense approximated $337,000 for the year ended 2007. Of the 299,655 shares
acquired on behalf of the ESOP 29,045 were released in December&nbsp;31, 2007. As of December&nbsp;31,
2007, all shares had been released and allocated to participants. In 2009 and 2008, the
Company made a discretionary contribution to the plan and recorded compensation expense of
$300,000 and $200,000 respectively for the plan to purchase additional shares to allocate to
participants.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 42<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>

<!-- xbrl,n -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>12.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Stock Based Compensation Plans</B></TD>
</TR>

</TABLE>
</DIV>
 <!-- xbrl,body -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has two share based compensation plans as described below. Total compensation
cost that has been charged against income for those plans was $258,830, $165,654 and $174,806
for 2009, 2008 and 2007. The total income tax benefit was $99,649, $63,777, and $67,300.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Stock Option Plan</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s 2000 Stock Option Plan, which is shareholder approved, permits the granting of
share options to its directors, officer and key employees for up to 374,568 share of common
stock. The exercise price of options granted is equal to the market value of the Company&#146;s
shares at the date of grant. All options granted expire by April&nbsp;2010 and options vest and
become exercisable ratably over a one to five-year period. The plan also has a reload feature
which entitles the option holder, who has delivered common stock as payment of the exercise
price for option stock, to a new option to acquire additional shares in the amount equal to
the shares traded in. The option period during which the reload option may be exercised
expires at the same time as that of the original option that the holder has exercised. The
Company has a policy of using shares held as treasury stock to satisfy share option exercises.
There were 9,243 shares available for future grants under the plan described above as of
December&nbsp;31, 2009 and 2008. Compensation recorded in conjunction with these plans was
$78,543, $0 and $0 for 2009, 2008, and 2007, respectively.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The fair value of each option award is estimated on the date of grant using a closed form
option valuation (Black-Scholes) model that uses the assumptions noted in the table below.
Expected volatilities are based on historical volatilities of the Company&#146;s common stock. The
Company uses historical data to estimate option exercise and post-vesting termination
behavior. The expected term of options granted is based on historical data and represents the
period of time that options granted
are expected to be outstanding, which takes into account that the options are not
transferable. The risk-free interest rate for the expected term of the option is based on the
U.S. Treasury yield curve in effect at the time of the grant. The fair value of options
granted was determined using the following weighted-average assumptions as of grant date:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Risk-free interest rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected stock price volatility</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">62.09</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected dividend rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected life</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A summary of the activity in the stock option plan for 2009 follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Range of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Exercise Price</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Price</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Intrinsic</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Exercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Per Share</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Value</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168,967</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD nowrap align="right">4.722 - $18.167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.707</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">315,434</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD nowrap align="right">10.750 - $11.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(77,131</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,500</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.773</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122,175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD nowrap align="right">4.722 - $18.167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.401</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">152,346</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 43<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>12.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Stock Based Compensation Plans (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There was no unrecognized compensation cost for this plan as of December&nbsp;31, 2009 as all
shares are vested under the terms of the plan. New grants are for the reload option feature
which are expensed at date of grant.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Information related to the stock option plan during each year follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Intrinsic value of options exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">489,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">49,378</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash received from option exercises</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,326</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,118</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares received from option exercises</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax benefit realized from option exercises</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average fair value of options granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At December&nbsp;31, 2009, the weighted average information for outstanding and exercisable
shares is as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Options Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Options Exercisable</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Range of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Remaining</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Life</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Exercise</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Price</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Years)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Price</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$4.722 - $5.45</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.722</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$9.084 - $10.90</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.216</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.216</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$10.90 - $12.717</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,957</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,957</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.532</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$12.717 - $14.534</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14.000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$14.534 - $16.350</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14.800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14.800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$16.350 - $18.167</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17.247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17.247</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total/Average</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122,175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.401</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122,175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.401</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Recognition Plan</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Management Recognition and Retention Plan provides for the issuance of shares of
restricted stock to directors, officers and key employees. Compensation expense equal to the
market value of Oneida Financial Corp.&#146;s stock on the grant date is recognized ratably over
the five year vesting period for shares of restricted stock granted that will be fully vested
at December&nbsp;31, 2010. Compensation recorded in conjunction with these plans was $180,287,
$165,654 and $174,806 for 2009, 2008, and 2007, respectively. Shares unallocated under the
plan available for future awards were 11,286, 15,886 and 12,886 as of December&nbsp;31, 2009, 2008
and 2007 respectively.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A summary of changes in the Company&#146;s nonvested shares for the year follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Grant-Date</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center">Nonvested Shares</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonvested at January&nbsp;1, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.98</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Vested</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16,400</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonvested at December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 44<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>12.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Stock Based Compensation Plans (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of December&nbsp;31, 2009, there was a total of $165,376 of unrecognized compensation cost
related to nonvested shares granted under the Plan. The cost is expected to be recognized
over a weighted average of 2&nbsp;years. The total fair value of shares vested during the years
ended December&nbsp;31, 2009, 2008 and 2007 were $146,780, $111,148 and $164,552 respectively.</TD>
</TR>

</TABLE>
</DIV>
<!-- xbrl,n -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>13.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Non-Interest Income and Expenses</B></TD>
</TR>

</TABLE>
</DIV>
 <!-- xbrl,body -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Non-interest income and non-interest expenses for the years ended December&nbsp;31 consist of the
following:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest income:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Service charges on deposit accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,615,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,775,053</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,546,514</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commissions and fees on sales
of non-banking products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,836,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,618,392</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,520,891</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash surrender value increase</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">696,916</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">587,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">626,385</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,735,606</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,337,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,144,157</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total non-interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,884,330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,318,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,837,947</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest expenses:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Salaries and employee benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,425,328</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,127,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,984,755</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Building occupancy and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,748,134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,739,353</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,427,212</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FDIC and N.Y.S. assessment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,121,204</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94,849</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Advertising</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">542,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">551,311</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">577,474</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Postage and telephone</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">681,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">697,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">717,718</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Director compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">243,185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220,609</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">242,508</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Professional fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">386,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">462,027</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">372,793</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Travel and meetings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">752,836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">826,206</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">918,049</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">344,388</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">257,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">388,703</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dues and subscriptions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">167,944</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205,661</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Service fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">720,755</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">597,377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">566,729</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ORE expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,344</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Contributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,497</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,178</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sales tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,279</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,376</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,455,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,239,498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">795,774</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Minority interest dividends</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">255,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,975</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Intangible amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">470,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">540,585</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">547,759</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total non-interest expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32,445,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,712,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,963,857</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>
<!-- xbrl,n -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>14.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Commitments</B></TD>
</TR>

</TABLE>
</DIV>
 <!-- xbrl,body -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Some financial instruments, such as loan commitments, credit lines, letters of credit, and
overdraft protection, are issued to meet customer financing needs. These are agreements to
provide credit or
to support the credit of others, as long as conditions established in the contract are met,
and usually have expiration dates. Commitments may expire without being used.
Off-balance-sheet risk to credit loss exists up to the face amount of these instruments,
although material losses are not anticipated. The same credit policies are used to make such
commitments as are used for loans, including obtaining collateral at exercise of the
commitment.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The contractual amounts of financial instruments with off-balance-sheet risk at year end were
as follows:</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 45<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>14.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Commitments (Continued)</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fixed</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Variable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fixed</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Variable</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial instruments whose contract
amounts represent credit risk:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commitments to extend credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,373,320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,034,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,556,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,528,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unused lines of credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,663,317</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,880,467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,573,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,797,752</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Commitments to make loans are generally made for periods of 60&nbsp;days or less. The fixed
rate loan commitments have interest rates ranging from 4.36% to 6.75% and maturities ranging
from 15&nbsp;years to 30&nbsp;years. Commitments to extend credit are agreements to lend to a customer
as long as there is no violation of any condition established in the contract. Commitments
generally have fixed expiration dates or other termination clauses and may require payment of
a fee. The commitments for equity lines of credit may expire without being drawn upon.
Therefore, the total commitment amounts do not necessarily represent future cash requirements.
The Bank evaluates each customer&#146;s creditworthiness on a case-by-case basis. The amount of
collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on
management&#146;s credit evaluation of the counterparty. Collateral held varies, but includes
residential and commercial real estate.</TD>
</TR>

</TABLE>
</DIV>
<!-- xbrl,n -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>15.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Dividends and Restrictions</B></TD>
</TR>

</TABLE>
</DIV>
 <!-- xbrl,body -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s ability to pay dividends to its shareholders is largely dependent on the Bank&#146;s
ability to pay dividends to the Company. In addition to state law requirements and the
capital requirements discussed below, the circumstances under which the Bank may pay dividends
are limited by federal statutes, regulations, and policies. Retained earnings of the Bank are
subject to certain restrictions under New York State Banking regulations. The amount of
retained earnings legally available for dividends under these regulations was $703,565 and
$1,891,284 as of December&nbsp;31, 2009 and 2008 respectively.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition, the Office of Thrift Supervision and the Federal Deposit Insurance Corporation
are authorized to determine under certain circumstances that the payment of dividends would be
an unsafe or unsound practice and to prohibit payment of such dividends. The payment of
dividends that deplete a bank&#146;s capital base could be deemed to constitute such an unsafe or
unsound practice. The Federal Reserve Board has indicated that banking organizations could
generally pay dividends only out of current operating earnings.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Board of Trustees of Oneida Financial MHC determines whether the MHC will waive or receive
cash dividends declared by the Company each time the Company declares a cash dividend, which
is expected to be on a semi-annual basis. The MHC may elect to receive dividends and utilize
such funds to pay expenses or for other allowable purposes. The Office of Thrift Supervision
(the &#147;OTS&#148;) has indicated that it does not object to the waiver of cash dividends by MHC
subject to the following: (i)&nbsp;the Bank notifies OTS prior to paying any cash dividends to the
Company if such a capital distribution becomes necessary and (ii)&nbsp;the Board of Trustees of the
MHC must ratify the determination that the dividend waiver is consistent with the director&#146;s
fiduciary duties to the members of the federally chartered mutual holding company.</TD>
</TR>

</TABLE>
</DIV>
<!-- xbrl,n -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>16.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Regulatory Matters</B></TD>
</TR>

</TABLE>
</DIV>
 <!-- xbrl,body -->
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank is subject to regulatory capital requirements administered by the federal banking
agencies. Capital adequacy guidelines and prompt corrective action regulations involve
quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated
under regulatory accounting</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F - 46<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>16.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Regulatory Matters (Continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>practices. Capital amounts and classifications are also subject to qualitative judgments by
regulators. Failure to meet capital requirements can initiate regulatory action. Management
believes as of December&nbsp;31, 2009, the Bank meets all capital adequacy requirements to which it
is subject.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prompt corrective action regulations provide five classifications: well capitalized,
adequately capitalized, undercapitalized, significantly undercapitalized, and critically
undercapitalized, although these terms are not used to represent overall financial condition.
If adequately capitalized, regulatory approval is required to accept brokered deposits. If
undercapitalized, capital distributions are limited, as is asset growth and expansion, and
capital restoration plans are required. At year-end 2009 and 2008, the most recent
regulatory notifications categorized the Bank as well capitalized under the regulatory
framework for prompt corrective action. There are no conditions or events since that
notification that management believes have changed the institution&#146;s category.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank&#146;s actual capital amounts and ratios are as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>To Be Well</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Capitalized Under</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>For Capital</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Prompt Corrective</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Actual</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Adequacy Purposes</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Action Provisions</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">As of December&nbsp;31, 2009:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total Capital <br>
(to Risk Weighted Assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,634,376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31,799,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39,749,286</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tier I Capital <br>
(to Risk Weighted Assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39,733,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,899,714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,849,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tier I Capital <br>
(to Average Assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39,733,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,101,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,626,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">As of December&nbsp;31, 2008:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total Capital <br>
(to Risk Weighted Assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,214,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,164,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">36,456,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tier I Capital <br>
(to Risk Weighted Assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,589,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,582,279</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,873,418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tier I Capital <br>
(to Average Assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,589,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.64</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,836,854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,046,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Qualified Thrift Lender test requires at least 65% of assets be maintained in
housing-related finance and other specified areas. If this test is not met, limits are placed
on growth, branching, new investments, Federal Home Loan Bank advances and new dividends.
Management believes this test is met.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F - 47<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>
<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>17. Parent Company Statements</B>
</DIV>

  <!-- xbrl,body -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Condensed financial information of Oneida Financial Corp. follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Condensed Balance Sheets</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">149,797</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,385</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investments in and advances to subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,735,244</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,008,623</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,030</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,072,813</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,120,038</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liabilities and shareholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">139,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Due to related parties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">817,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">850,796</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,116,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,269,242</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total liabilities and shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,072,813</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,120,038</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Condensed Statements of Income</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 0px solid #000000"><B>Years Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dividends from subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest on investments and deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,571</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,941</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Rental income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,322</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">307,935</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000,725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64,893</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">360,876</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expenses:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Compensations and benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">93,739</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">171,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">254,117</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">310,936</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">347,856</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income (loss)&nbsp;before taxes and equity
in undistributed net
income of subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,689,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(112,087</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,020</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit for income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(120,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income (loss)&nbsp;before equity in undistributed
net income of subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,809,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(77,087</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,020</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity in undistributed net income (loss):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Subsidiary bank</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,303,568</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,600,003</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,491,287</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,113,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,677,090</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,504,307</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F - 48<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>17. Parent Company Statements (Continued)</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Condensed Statements of Cash Flow</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 0px solid #000000"><B>Years Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,113,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,677,090</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,504,307</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjustments to reconcile net income (loss)&nbsp;to
net cash provided by operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Depreciation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,976</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">105,377</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">ESOP shares earned</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">337,408</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other assets/liabilities, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(125,882</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(44,077</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Equity in undistributed net loss (income)&nbsp;of
subsidiary bank</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,303,568</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,600,003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,491,287</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net cash provided by (used by) operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,835,546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(185,993</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">411,728</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from sales of investment securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">292,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of premises and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(287,416</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Disposition of premises and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,204,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Change in due from related parties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(33,655</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,155,199</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,474,836</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net cash (used in) provided by investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(33,655</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,049,083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,479,420</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of treasury stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(379,976</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,277</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(65,159</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dividends paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,673,714</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,662,053</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,648,916</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Exercise of stock options (using treasury stock)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">364,211</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,118</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net cash (used in) provided by financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,689,479</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,649,983</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,679,957</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net increase (decrease)&nbsp;in cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(786,893</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">211,191</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents at beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">824,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">613,087</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Cash and cash equivalents at end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">149,797</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">824,278</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F - 49<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>
<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>18. Earnings per Share</B>
</DIV>


 <!-- xbrl,body -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Earnings per common share have been computed based on the following for the years ended
December&nbsp;31:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Basic</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Distributed earnings allocated to common stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,659,891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,640,933</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,618,964</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Undistributed earnings allocated to common stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,434,505</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,320,069</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,844,445</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net earnings allocated to common stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,094,396</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,679,136</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,463,409</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Weighted average common shares outstanding
including shares considered participating
securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,789,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,757,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,729,653</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Less: Average participating securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16,400</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(28,800</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45,600</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Weighted average shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,772,621</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,728,405</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,684,053</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Basic earnings per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.22</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Diluted</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net earnings allocated to common stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,094,396</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,679,136</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,463,409</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Weighted average common shares outstanding for basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,772,621</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,728,405</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,684,053</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dilutive effect of stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,592</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,485</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Weighted average shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,800,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,782,997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,751,538</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Diluted earnings per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.22</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Stock options for 86,166, 106,675 and 53,820 shares of common stock were not considered
in computing dilutive earnings per common share for 2009, 2008, and 2007 respectively because
they were anti-dilutive.
</DIV>
<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>19. Other Comprehensive Income (Loss)</B>
</DIV>

  <!-- xbrl,body -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Other comprehensive income (loss)&nbsp;components and related tax effects were as follows:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 50<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>19. Other Comprehensive Income (Loss)  (Continued)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized (losses)&nbsp;gains on available for sale securities
Available for sale securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Unrealized holding gains (losses)&nbsp;on securities arising
during period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,422,451</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,979,420</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,167,052</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: reclassification adjustment for (gains)
realized in income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(787,842</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(62,854</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(352,825</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net unrealized gains (losses)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,634,609</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,042,274</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,519,877</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Tax effect</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,053,844</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,616,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,007,951</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net-of-tax amount</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,580,765</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,425,364</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,511,926</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other-than-temporary impaired securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Unrealized holding (losses)&nbsp;on securities arising
during period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,908,143</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,021,845</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: reclassification adjustment for losses
realized in income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,294,841</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,021,845</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net unrealized (losses)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(613,302</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Tax effect</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">245,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net-of-tax amount</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(367,981</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in unrealized loss on pension liability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">648,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,375,636</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228,994</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Tax effect</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(259,220</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">950,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(91,598</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net-of-tax amount</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">388,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,425,382</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">137,396</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,601,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,850,746</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,374,530</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The following is a summary of the accumulated other comprehensive income balances, net of
tax:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Current</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>at</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Period</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>at</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>12/31/2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Change</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>12/31/2009</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized (losses)&nbsp;gains on securities
available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,199,447</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,212,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,986,664</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized loss on pension benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,363,034</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">388,832</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,974,202</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(5,562,481</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,601,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,960,866</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>20. Segment Information</B>
</DIV>
 <!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Company has determined that it has four primary business segments, its banking franchise,
its insurance activities, its employee benefit consulting activities and its risk management
activities. For the years ended December&nbsp;31, 2009, 2008 and 2007, the Company&#146;s insurance
activities consisted of those conducted through its wholly owned subsidiary, Bailey &#038; Haskell
Associates, Inc. For the years ended December&nbsp;31, 2009, 2008 and 2007, the benefit consulting
activities consisted of those conducted through its wholly owned subsidiary, Benefit
Consulting Group Inc. For the year ended December&nbsp;31, 2009 and 2008, the risk management
activities consisted of those conducted through its wholly owned subsidiary Workplace Health
Solutions Inc.; a segment that did not exist prior to 2008. Information about the Company is
presented in the following table for the periods indicated:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 51<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>20. Segment Information (Continued)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 0px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Risk</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Banking</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Insurance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Consulting</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Management</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Activities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Activities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Activities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Activities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,427,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,427,420</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">760,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">760,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="6" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income after provision
for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,667,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,667,420</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,266,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,694,191</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,650,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">491,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,102,363</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,545,145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,580,478</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,532,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">709,346</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,367,419</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,699,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">223,847</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,078,087</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="6" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income (loss)&nbsp;before taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,689,162</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">889,866</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">964,766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(219,517</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,324,277</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense (benefit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">517,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">378,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">405,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(90,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,210,920</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="6" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,171,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">511,866</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">559,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(129,517</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,113,357</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="6" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">571,983,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,962,553</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,389,768</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">89,526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">596,425,493</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="6" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 0px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Risk</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Banking</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Insurance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Consulting</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Management</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Activities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Activities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Activities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Activities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,652,705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,652,705</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">525,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">525,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income after provision
for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,127,705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,127,705</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest (loss)&nbsp;income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,933,827</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,483,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,015,527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,684,565</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,497,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,620,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,052,298</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">391,934</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,562,171</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,714,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">249,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,080</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,149,989</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">(Loss) Income before taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,017,182</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">612,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">778,005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(273,470</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,899,890</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax (benefit)&nbsp;expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,773,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">330,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">325,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(105,300</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,222,800</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net (loss)&nbsp;income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,244,182</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">282,257</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">453,005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(168,170</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,677,090</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">523,447,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,607,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,857,175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">57,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">543,970,117</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F - 52<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>20. Segment Information (Continued)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 0px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Banking</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Insurance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Consulting</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Activities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Activities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Activities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,645,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,645,042</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income after provision
for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,645,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,645,042</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,669,881</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,925,204</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,595,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,190,772</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,802,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,197,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,009,337</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,009,790</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,492,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">236,843</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,954,067</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income before taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,019,958</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,490,651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">361,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,871,957</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">759,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,367,650</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,260,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">990,651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">253,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,504,307</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">505,109,464</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,631,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,083,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">528,824,579</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The following represents a reconciliation of the Company&#146;s reported segment assets to
consolidated assets as of December&nbsp;31:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets for reportable segments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">596,425,493</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">543,970,117</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Elimination of intercompany cash balances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,919,162</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,840,349</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Consolidated total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">590,506,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">540,129,768</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The accounting policies of the segment are the same as those described in the summary of
significant accounting policies.
</DIV>
<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>21. Quarterly Financial Data (Unaudited)</B>
</DIV>
 <!-- xbrl,body -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Net Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Net</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 0px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Income</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Income</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Income (Loss)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Basic</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Diluted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>(Dollars in thousands)</B></TD>

    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,232</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,059</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">696</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,311</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px"><B>2008</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,723</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,718</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,867</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,428</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.57</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.57</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,639</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.22</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F - 53<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes to Consolidated Financial Statements</B>

</DIV>
<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>22. Adoption of Plan of Conversion and Reorganization (unaudited)</B>
</DIV>
 <!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">
On February 9, 2010, the Board of Directors of Oneida Financial, MHC (&#147;MHC&#148;) and Oneida
Savings Bank (&#147;Bank&#148;) adopted a Plan of Conversion and Reorganization providing for the
conversion of the MHC into the capital stock form of organization resulting in the formation of a
new federally-chartered stock holding company, Oneida Financial Corp. - New (&#147;Holding Company&#148;).
Under the plan, the existing shares of the Company&#146;s common stock owned by Public  Stockholders will
be converted  pursuant to an  exchange  ratio  into  shares  of  common  stock of the  Holding  Company
(&#147;Holding  Company  Common  Stock&#148;).  Simultaneously,  with the  Conversion  and Reorganization,
the  Holding  Company  will  conduct  a  stock  offering  which represents  the 55.2%  ownership  interest
in Oneida Financial Corp. now owned by the MHC. The Conversion will result in the Bank being wholly owned
by a state-chartered stock holding company which is owned by public stockholders.  Shares of  conversion
stock will be  offered  in a subscription offering in descending order of priority to eligible  deposit
account  holders,  the Bank&#146;s tax qualified  employee  benefit plan,  then to other  depositors
of the Bank.  Any shares of the Stock Holding Company&#146;s common stock not sold in the subscription
offering will be offered for sale to the general public, giving preference to natural persons residing
in the bank&#146;s market area.

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Upon completion of the plan,
the public will own 100% of the outstanding stock of the Holding Company.  The Holding Company will
own 100% of the Bank. The Bank may not pay dividends to the Holding Company if the dividends would
cause the Bank to fall below the &#147;well capitalized&#148; capital threshold.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Holding Company intends
to contribute approximately 50% of the proceeds of the offering to the Bank. The balance will be
retained as the Holding Company&#146;s initial capitalization and may be used for general business
purposes including investment in securities, repurchasing shares of its common stock, paying dividends
as well as to effect corporate transactions, including mergers, acquisitions and branch expansions.
The funds received by the Bank will be used for general business purposes including originating loans
and purchasing securities and may also be used for growth through expansion of the branch office network.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The plan of conversion provides
for the establishment, upon the completion of the conversion, of a liquidation account by the Holding
Company for the benefit of Eligible Account Holders and Supplemental Eligible Account Holders in an
amount equal to (i) the MHC&#146;s ownership interest in the Company&#146;s total stockholders&#146;
equity as of the date of the latest statement of financial condition used in the prospectus plus (ii)
 the value of the net assets of the MHC as of the date of the latest statement of financial condition
of the MHC used in the prospectus.  The plan of conversion also provides the establishment of a bank
liquidation account at the Bank to support the Holding Company&#146;s liquidation account.
The liquidation account is designed to provide payments to depositors of their liquidation
interests in the event of a liquidation of the Holding Company and the Bank or a liquidation
solely of the Bank.  Specifically, in the unlikely event that either the Bank or the Holding
Company and the Bank were to liquidate after the conversion, all claims of creditors, including
those of depositors, would be paid first, followed by distribution to eligible depositors of their
interests in the liquidation account maintained by the Holding Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Offering costs will be
deferred and deducted from the proceeds of the shares sold in the stock offering. If the offering is
not completed, all costs will be charged to expense. At December 31, 2010 (unaudited), approximately
$83,000 of expense has been incurred.
</DIV>
<!-- /xbrl,ns -->

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 54<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt; margin-top: 12pt">&nbsp;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>No person has been authorized to give any information or to make any representation other than
as contained in this prospectus and, if given or made, such other information or representation
must not be relied upon as having been authorized by Oneida Financial Corp. or Oneida Savings Bank.
This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any of
the securities offered hereby to any person in any jurisdiction in which such offer or solicitation
is not authorized or in which the person making such offer or solicitation is not qualified to do
so, or to any person to whom it is unlawful to make such offer or solicitation in such
jurisdiction. Neither the delivery of this prospectus nor any sale hereunder shall under any
circumstances create any implication that there has been no change in the affairs of Oneida
Financial Corp. or Oneida Savings Bank since any of the dates as of which information is furnished
herein or since the date hereof.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Up to 5,207,344 Shares</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Oneida Financial Corp.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>(Proposed Holding Company for<BR>
The Oneida Savings Bank)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMMON STOCK<BR>
par value $0.01 per share</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROSPECTUS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>Stifel Nicolaus</B></FONT>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;Date of Prospectus&#093;</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>These securities are not deposits or accounts and are not federally insured or guaranteed.</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Until </B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>, or 25&nbsp;days after the commencement of the syndicated community offering,
if any, all dealers that effect transactions in the registered securities, whether or not
participating in this distribution, may be required to deliver a prospectus. This is in addition
to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect
to their unsold allotments or subscriptions.</B>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt; margin-top: 12pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROSPECTUS OF ONEIDA FINANCIAL CORP., A MARYLAND CORPORATION<BR>
PROXY STATEMENT OF ONEIDA FINANCIAL CORP., A FEDERAL CORPORATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Savings Bank is converting from the mutual holding company structure to a fully-public
stock holding company structure. Currently, Oneida Savings Bank is a wholly-owned subsidiary of
Oneida Financial Corp., a federally chartered corporation, and Oneida Financial, MHC owns 55.2% of
Oneida Financial Corp.&#146;s common stock. The remaining 44.8% of Oneida Financial Corp.&#146;s common stock
is owned by public stockholders. As a result of the conversion, a newly formed Maryland corporation
named Oneida Financial Corp. (&#147;Oneida Financial-New&#148;) will become the holding company of Oneida
Savings Bank. Each share of Oneida Financial Corp. common stock owned by the public will be
exchanged for between 0.7766 and 1.2083 shares of common stock of Oneida Financial-New, so that
immediately after the conversion Oneida Financial Corp.&#146;s existing public stockholders will own the
same percentage of Oneida Financial-New common stock as they owned of Oneida Financial Corp.&#146;s
common stock immediately prior to the conversion, excluding any new shares purchased by them in the
offering and their receipt of cash in lieu of fractional exchange shares, as further discussed
below. The actual number of shares that you will receive will depend on the percentage of Oneida
Financial Corp. common stock held by the public at the completion of the conversion, the final
independent appraisal of Oneida Financial-New and the number of shares of Oneida Financial-New
common stock sold in the offering described in the following paragraph. It will not depend on the
market price of Oneida Financial Corp. common stock. See &#147;Proposal 1&#151;Approval of the Plan of
Conversion&#151;Share Exchange Ratio for Current Stockholders&#148; for a discussion of the exchange ratio.
Based on the $&nbsp;&nbsp;per share closing price of Oneida Financial Corp. common stock as of the last
trading day prior to the date of this proxy statement/prospectus, unless at least <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>shares
of Oneida Financial-New common stock are sold in the offering (which is between the &#95;&#95;&#95;and the
&#95;&#95;&#95;of the offering range), the initial value of the Oneida Financial-New common stock you receive
in the share exchange would be less than the market value of the Oneida Financial Corp. common
stock you currently own. See &#147;Risk Factors&#151;The market value of Oneida Financial-New common stock
received in the share exchange may be less than the market value of Oneida Financial Corp. common
stock exchanged.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concurrently with the exchange offer, we are offering up to 5,207,344 shares of common stock
of Oneida Financial-New, representing the 55.2% ownership interest of Oneida Financial, MHC in
Oneida Financial Corp., for sale to eligible depositors of Oneida Savings Bank, to Oneida Savings
Bank&#146;s tax qualified benefit plans and to the public, including Oneida Financial Corp.
stockholders, at a price of $8.00 per share. The conversion of Oneida Financial, MHC and the
offering and exchange of common stock by Oneida Financial-New is referred to herein as the
&#147;conversion and offering.&#148; After the conversion and offering are completed, Oneida Savings Bank
will be a wholly-owned subsidiary of Oneida Financial-New, and 100% of the common stock of Oneida
Financial-New will be owned by public stockholders. As a result of the conversion and offering,
Oneida Financial Corp., the federal corporation, and Oneida Financial, MHC will cease to exist.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial Corp.&#146;s common stock is currently traded on the Nasdaq Capital Market under
the trading symbol &#147;ONFC.&#148; For a period of 20 trading days after the completion of the conversion
and offering, we expect Oneida Financial-New&#146;s shares of common stock will trade on the Nasdaq
Global Market under the symbol &#147;ONFCD,&#148; and, thereafter, the trading symbol will revert to &#147;ONFC.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion and offering cannot be completed unless the stockholders of Oneida Financial
Corp. approve the Plan of Conversion and Reorganization of Oneida Financial, MHC, which may be
referred to herein as the &#147;plan of conversion.&#148; Oneida Financial Corp. is holding a special
meeting of stockholders at <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, on &#091;meeting date&#093;, at &#95;&#95;&#95;.m., local time, to
consider and vote upon the plan of conversion. We must obtain the affirmative vote of the holders
of (i)&nbsp;two-thirds of the total number of votes entitled to be cast at the special meeting by Oneida
Financial Corp. stockholders,
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">including shares held by Oneida Financial, MHC, and (ii)&nbsp;a majority of the total number of votes
entitled to be cast at the special meeting by Oneida Financial Corp. stockholders other than Oneida
Financial, MHC. <B>Oneida Financial Corp.&#146;s board of directors unanimously recommends that
stockholders vote &#147;FOR&#148; the plan of conversion.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This document serves as the proxy statement for the special meeting of stockholders of Oneida
Financial Corp. and the prospectus for the shares of Oneida Financial-New common stock to be issued
in exchange for shares of Oneida Financial Corp. common stock. We urge you to read this entire
document carefully. You can also obtain information about us from documents that we have filed with
the Securities and Exchange Commission and the Office of Thrift Supervision. This document does
not serve as the prospectus relating to the offering by Oneida Financial-New of its shares of
common stock in the offering, which will be made pursuant to a separate prospectus. Stockholders
of Oneida Financial Corp. are not required to participate in the stock offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This proxy statement/prospectus contains information that you should consider in evaluating
the plan of conversion. <B>In particular, you should carefully read the section captioned &#147;Risk
Factors&#148; beginning on page 14 for a discussion of certain risk factors relating to the conversion
and offering.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>These securities are not deposits or savings accounts and are not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither the Securities and Exchange Commission, the New York State Banking Department, the
Office of Thrift Supervision, nor any state securities regulator has approved or disapproved of
these securities or determined if this proxy statement/prospectus is accurate or complete. Any
representation to the contrary is a criminal offense.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>For answers to your questions, please read this proxy statement/prospectus including the
Questions and Answers section, beginning on page 1. Questions about voting on the plan of
conversion may be directed to our proxy information agent, </B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>, at 1-888-</B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>, Monday
through Friday from &#95;&#95;&#95; a.m. to &#95;&#95;&#95; p.m., Eastern Time.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The date of this proxy statement/prospectus is &#091;document date&#093;, and it is first being mailed
to stockholders of Oneida Financial Corp. on or about &#95;&#95;&#95;, 2010.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ONEIDA FINANCIAL CORP.<BR>
182 Main Street<BR>
Oneida, New York 13421<BR>
(315)&nbsp;363-2000</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>NOTICE OF SPECIAL MEETING OF STOCKHOLDERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On &#091;meeting date&#093;, Oneida Financial Corp. will hold a special meeting of stockholders at
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>. The meeting will begin at &#95;&#95;&#95;p.m., local time. At the meeting, stockholders will
consider and act on the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The approval of a plan of conversion and reorganization
whereby: (a) Oneida Financial, MHC and Oneida Financial Corp.,
a federal corporation, will convert and reorganize from the mutual
holding company structure to the stock holding company structure;
(b) Oneida Financial Corp., a Maryland corporation (&#147;Oneida
Financial-New&#148;), will become the new stock holding company of
Oneida Savings Bank;  (c) the outstanding shares of Oneida Financial
Corp., other than those held by Oneida Financial, MHC, will be converted
into shares of common stock of Oneida Financial-New; and (d) Oneida Financial-New
will offer shares of its common stock for sale in a subscription offering, a community
offering and, possibly, a syndicated community offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The approval of the adjournment of the special meeting, if necessary, to
solicit additional proxies in the event that there are not sufficient votes at the time
of the special meeting to approve the plan of conversion and reorganization;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following informational proposals:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Approval of a provision in Oneida Financial-New&#146;s articles of
incorporation requiring a super-majority vote to approve certain amendments to
Oneida Financial-New&#146;s articles of incorporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Approval of a provision in Oneida Financial-New&#146;s articles of
incorporation requiring a super-majority vote of stockholders to approve
stockholder-proposed amendments to Oneida Financial-New&#146;s bylaws;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Approval of a provision in Oneida Financial-New&#146;s articles of
incorporation to limit the voting rights of shares beneficially owned in excess
of 10% of Oneida Financial-New&#146;s outstanding voting stock; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Such other business that may properly come before the meeting.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTE: The board of directors is not aware of any other business to come before the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of Oneida Financial-New&#146;s articles of incorporation that are summarized as
informational proposals 3a through 3c were approved as part of the process in which our board of
directors approved the plan of conversion and reorganization (referred to herein as the &#147;plan of
conversion&#148;). These proposals are informational in nature only, because the Office of Thrift
Supervision&#146;s regulations governing mutual-to-stock conversions do not provide for votes on matters
other than the plan of conversion. While we are asking you to vote with respect to each of the
informational proposals listed above, the proposed provisions for which an informational vote is
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">requested will become effective if stockholders approve the plan of conversion, regardless of
whether stockholders vote to approve any or all of the informational proposals.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The board of directors has fixed &#091;record date&#093;, as the record date for the determination of
stockholders entitled to notice of and to vote at the special meeting and at an adjournment or
postponement thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Upon written request addressed to the Corporate Secretary of Oneida Financial Corp. at the
address given above, stockholders may obtain an additional copy of this proxy statement/prospectus
and/or a copy of the plan of conversion. In order to assure timely receipt of the additional copy
of the proxy statement/prospectus and/or the plan of conversion, the written request should be
received by Oneida Financial Corp. by &#95;&#95;&#95;, 2010.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please complete and sign the enclosed proxy, which is solicited by the board of directors, and
mail it promptly in the enclosed envelope. If you prefer, you may vote by using the telephone or
Internet. For information on submitting your proxy or voting by telephone or Internet, please
refer to instructions on the enclosed proxy card. The proxy will not be used if you attend the
meeting and vote in person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">BY ORDER OF THE BOARD OF DIRECTORS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Eric E. Stickels<BR>
Corporate Secretary

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Oneida, New York<BR>
&#091;document date&#093;

</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>QUESTIONS AND ANSWERS FOR STOCKHOLDERS OF ONEIDA FINANCIAL CORP. REGARDING THE PLAN OF CONVERSION</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>SUMMARY</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>RISK FACTORS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>INFORMATION ABOUT THE SPECIAL MEETING</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>PROPOSAL 1 &#151; APPROVAL OF THE PLAN OF CONVERSION AND REORGANIZATION</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>PROPOSAL 2 &#151; ADJOURNMENT OF THE SPECIAL MEETING</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>PROPOSALS 3a THROUGH 3c &#151; INFORMATIONAL PROPOSALS RELATED TO THE ARTICLES OF INCORPORATION AND BYLAWS OF ONEIDA FINANCIAL CORP</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF ONEIDA FINANCIAL CORP</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>FORWARD-LOOKING STATEMENTS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>OUR DIVIDEND POLICY</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>MARKET FOR THE COMMON STOCK</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CAPITALIZATION</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>PRO FORMA DATA</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>BUSINESS OF ONEIDA FINANCIAL-NEW</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>BUSINESS OF ONEIDA FINANCIAL CORP. AND ONEIDA SAVINGS BANK</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>SUPERVISION AND REGULATION</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>TAXATION</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>MANAGEMENT</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>BENEFICIAL OWNERSHIP OF COMMON STOCK</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>COMPARISON OF STOCKHOLDERS&#146; RIGHTS FOR EXISTING STOCKHOLDERS OF ONEIDA FINANCIAL CORP</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>RESTRICTIONS ON ACQUISITION OF ONEIDA FINANCIAL-NEW</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>DESCRIPTION OF CAPITAL STOCK OF ONEIDA FINANCIAL-NEW FOLLOWING THE CONVERSION</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>TRANSFER AGENT</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>EXPERTS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>LEGAL AND TAX MATTERS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>OTHER MATTERS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>ONEIDA FINANCIAL CORP. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right"><B>[&nbsp;&nbsp;&nbsp;&nbsp;]</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>QUESTIONS AND ANSWERS<BR>
FOR STOCKHOLDERS OF ONEIDA FINANCIAL CORP.<BR>
REGARDING THE PLAN OF CONVERSION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You should read this document for more information about the conversion. The plan of conversion
described herein has been conditionally approved by Oneida Financial Corp.&#146;s primary federal
regulator, the Office of Thrift Supervision. However, such approval by this agency does not
constitute a recommendation or endorsement of the plan of conversion.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WHAT ARE STOCKHOLDERS BEING ASKED TO APPROVE?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oneida Financial Corp. stockholders as of &#091;record date&#093; are being asked to vote on the plan
of conversion pursuant to which Oneida Financial, MHC will convert from the mutual to the
stock form of organization. As part of the conversion, a newly formed Maryland corporation,
Oneida Financial-New, is offering its common stock to eligible depositors of Oneida Savings
Bank, to Oneida Savings Bank&#146;s tax qualified benefit plans, to stockholders of Oneida
Financial Corp. as of &#091;record date&#093; and to the public. The shares offered represent Oneida
Financial, MHC&#146;s current 55.2% ownership interest in Oneida Financial Corp. Voting for
approval of the plan of conversion will also include approval of the exchange ratio and the
articles of incorporation and bylaws of Oneida Financial-New (including the anti-takeover
provisions and provisions limiting stockholder rights). <B>Your vote is important. Without
sufficient votes &#147;FOR&#148; its adoption, we cannot implement the plan of conversion.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition, Oneida Financial Corp. stockholders are being asked to approve the adjournment
of the special meeting, if necessary, to solicit additional proxies in the event that there
are not sufficient votes at the time of the special meeting to approve the plan of
conversion.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stockholders also are asked to vote on the following informational proposals with respect to
the articles of incorporation and bylaws of Oneida Financial-New:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oneida Financial-New&#146;s articles of incorporation
requiring a super-majority vote to approve certain amendments to Oneida
Financial-New&#146;s articles of incorporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oneida Financial-New&#146;s articles of incorporation
requiring a super-majority vote of stockholders to approve stockholder-proposed
amendments to Oneida Financial-New&#146;s bylaws; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oneida Financial-New&#146;s articles of incorporation
to limit the voting rights of shares beneficially owned in excess of 10% of
Oneida Financial-New&#146;s outstanding voting stock.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The provisions of Oneida Financial-New&#146;s articles of incorporation that are included as
informational proposals were approved as part of the process in which our board of directors
approved the plan of conversion. These proposals are informational in nature only, because
the Office of Thrift Supervision&#146;s regulations governing mutual-to-stock conversions do not
provide for votes on matters other than the plan of conversion. While we are asking you to
vote with respect to each of the informational proposals listed above, the proposed
provisions for which an informational vote is requested will become effective if
stockholders approve the plan of</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>conversion, regardless of whether stockholders vote to approve any or all of the
informational proposals. The provisions of Oneida Financial-New&#146;s articles of incorporation
that are summarized above as informational proposals may have the effect of deterring, or
rendering more difficult, attempts by third parties to obtain control of Oneida
Financial-New if such attempts are not approved by the board of directors, or may make the
removal of the board of directors or management, or the appointment of new directors, more
difficult.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Your vote is important. Without sufficient votes &#147;FOR&#148; adoption of the plan of conversion,
we cannot implement the plan of conversion and the related stock offering.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WHAT ARE THE REASONS FOR THE CONVERSION AND RELATED OFFERING?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>A. </B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The primary reasons for the conversion and offering are:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>supporting internal growth through increased lending in the communities we serve;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>improving our capital position during a period of significant economic, regulatory
and political uncertainty, especially for the financial services industry;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>providing capital to support acquisitions of financial institutions and other
financial services corporations, including insurance agencies, as opportunities arise,
although we do not currently have any agreements to acquire a financial institution or
other entity;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>enabling us to enhance existing products and services to meet the needs of our
marketplace;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>assisting us in managing interest rate risk; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>improving the liquidity of our shares of common stock and enhancing stockholder
returns through more flexible capital management strategies.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WHAT WILL STOCKHOLDERS RECEIVE FOR THEIR EXISTING ONEIDA FINANCIAL CORP. SHARES?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As more fully described in &#147;Proposal 1 &#151; Approval of the Plan of Conversion &#151; Share
Exchange Ratio,&#148; depending on the number of shares sold in the offering, each share of common
stock that you own at the time of the completion of the conversion will be exchanged for
between 0.7766 shares at the minimum and 1.0507 shares at the maximum of the offering range
(or 1.2083 shares at the adjusted maximum of the offering range) of Oneida Financial-New
common stock (cash will be paid in lieu of any fractional shares). For example, if you own
100 shares of Oneida Financial Corp. common stock, and the exchange ratio is 1.0507 (at the
maximum of the offering range), after the conversion you will receive 105 shares of Oneida
Financial-New common stock and $0.56 in cash, the value of the fractional share, based on the
$8.00 per share purchase price of stock in the offering.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If you own shares of Oneida Financial Corp. common stock in a brokerage account in
&#147;street name,&#148; your shares will be automatically exchanged, and you do not need to take
any action to exchange your shares of common stock. If you own shares in the form of
Oneida Financial Corp. stock certificates after the completion of the conversion and
stock offering, our exchange agent</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will mail to you a transmittal form with instructions to surrender your stock certificates.
New certificates of Oneida Financial-New common stock will be mailed to you within five
business days after the exchange agent receives properly executed transmittal forms and your
Oneida Financial Corp. stock certificates. <B>You should not submit a stock certificate until
you receive a transmittal form.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WHY WILL THE SHARES THAT I RECEIVE BE BASED ON A PRICE OF $8.00 PER SHARE RATHER THAN THE
TRADING PRICE OF THE COMMON STOCK PRIOR TO COMPLETION OF THE CONVERSION?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The $8.00 per share price was determined by us, taking into account, among other factors, the
market price of our stock prior to adoption of the plan of conversion, the requirement under
Office of Thrift Supervision regulations that the common stock be offered in a manner that
will achieve the widest distribution of the stock, and desired liquidity in the common stock
after the offering. The amount of common stock Oneida Financial-New will issue at $8.00 per
share in the offering and the exchange is based on an independent appraisal of the estimated
market value of Oneida Financial-New, assuming the conversion and offering are completed. RP
Financial, LC., an appraisal firm experienced in appraisal of financial institutions, has
estimated that, as of February&nbsp;19, 2010, this market value ranged from $48.5&nbsp;million to $65.6
million, with a midpoint of $57.1&nbsp;million. Based on this valuation, the number of shares of
common stock of Oneida Financial-New that existing public stockholders of Oneida Financial
Corp. will receive in exchange for their shares of Oneida Financial Corp. common stock will
range from 2,717,781 to 3,676,998, with a midpoint of 3,197,390 (a value of $21.7&nbsp;million to
$29.4&nbsp;million, with a midpoint of $25.6&nbsp;million, at $8.00 per share). If market conditions so
warrant, the appraised value can be increased to $75.5&nbsp;million, the adjusted maximum of the
appraisal, and the number of shares issued in the exchange for existing shares of Oneida
Financial Corp. can be increased to 4,228,548 (a value of $33.8&nbsp;million, at $8.00 per share).
The number of shares received by the existing public stockholders of Oneida Financial Corp. is
intended to maintain their existing 44.8% ownership in our organization (excluding any new
shares purchased by them in the offering and their receipt of cash in lieu of fractional
exchange shares). The independent appraisal is based in part on Oneida Financial Corp.&#146;s
financial condition and results of operations, the pro forma impact of the additional capital
raised by the sale of shares of common stock in the offering, and an analysis of a peer group
of ten publicly traded savings bank and thrift holding companies that RP Financial, LC.
considered comparable to Oneida Financial Corp.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DOES THE EXCHANGE RATIO DEPEND ON THE TRADING PRICE OF ONEIDA FINANCIAL CORP. COMMON STOCK?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No, the exchange ratio will not be based on the market price of Oneida Financial Corp. common
stock. Therefore, changes in the price of Oneida Financial Corp. common stock between now and
the completion of the conversion and offering will not affect the calculation of the exchange
ratio.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WHY DOESN&#146;T ONEIDA FINANCIAL CORP. WAIT TO CONDUCT THE CONVERSION AND OFFERING UNTIL THE
STOCK MARKET IMPROVES SO THAT CURRENT STOCKHOLDERS CAN RECEIVE A HIGHER EXCHANGE RATIO?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The board of directors believes that the stock holding company form of organization and the
capital raised in the conversion offer important advantages and that it is in the best
interest of our</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>stockholders to complete the conversion and offering sooner rather than later. There is no
way to know when market conditions will change, when regulations governing conversion to
stock form will change, or how they may change, or how changes in market conditions might
affect stock prices for financial institutions. The board of directors concluded that it
would be better to complete the conversion and offering now, under existing Office of Thrift
Supervision conversion regulations and under a valuation that offers a fair exchange ratio
to existing stockholders and an attractive price to new investors, rather than wait an
indefinite amount of time for potentially better market conditions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SHOULD I SUBMIT MY STOCK CERTIFICATES NOW?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No.&nbsp;If you hold stock certificate(s), instructions for exchanging the certificates will be
sent to you by our exchange agent <I>after </I>completion of the conversion. If your shares are held
in &#147;street name&#148; (<I>e.g., </I>in a brokerage account) rather than in certificate form, the share
exchange will be reflected automatically in your account upon completion of the conversion.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>HOW DO I VOTE?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mark your vote, sign each proxy card enclosed and return the card(s) to us, in the enclosed
proxy reply envelope. For information on submitting your proxy, please refer to instructions
on the enclosed proxy card. <B>YOUR VOTE IS IMPORTANT. PLEASE VOTE PROMPTLY.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>IF MY SHARES ARE HELD IN STREET NAME, WILL MY BROKER, BANK OR OTHER NOMINEE AUTOMATICALLY
VOTE ON THE PLAN ON MY BEHALF?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No.&nbsp;Your broker, bank or other nominee will not be able to vote your shares without
instructions from you. You should instruct your broker, bank or other nominee to vote your
shares, using the directions that they provide to you.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WHAT HAPPENS IF I DON&#146;T VOTE?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Your vote is very important. Not voting all the proxy card(s) you receive will have the same</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>effect as voting </B><B><I>&#147;against&#148; </I></B><B>the plan of conversion. </B>Without sufficient favorable votes <I>&#147;for&#148;</I>
the plan of conversion, we will not proceed with the conversion and offering.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WHAT IF I DO NOT GIVE VOTING INSTRUCTIONS TO MY BROKER, BANK OR OTHER NOMINEE?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Your vote is important. If you do not instruct your broker, bank or other nominee to vote
your shares, the unvoted proxy will have the same effect as a vote <I>&#147;against&#148; </I>the plan of
conversion.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>MAY I PLACE AN ORDER TO PURCHASE SHARES IN THE OFFERING, IN ADDITION TO THE SHARES THAT I
WILL RECEIVE IN THE EXCHANGE?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Yes. If you would like to receive a prospectus and stock order form, you must call our Stock
Information Center at 1-800-&#95;&#95;&#95;, Monday through Friday between 10:00&nbsp;a.m. and 4:00 p.m.,
Eastern Time. The Stock Information Center is closed weekends and bank holidays.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Eligible depositors of Oneida Savings Bank have priority subscription rights allowing them
to purchase common stock in a subscription offering. Shares not purchased in the
subscription</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>offering may be available for sale to the public in a community offering, as described
herein. In the event orders for Oneida Financial-New common stock in a community offering
exceed the number of shares available for sale, shares may be allocated (to the extent
shares remain available) first to cover orders of natural persons residing in the New York
counties of Chenango, Cortland, Herkimer, Lewis, Madison, Oneida, Onondaga, Oswego and
Otsego; second to cover orders of Oneida Financial Corp. stockholders as of &#091;record date&#093;;
and thereafter to cover orders of the general public. Stockholders of Oneida Financial Corp.
are subject to an ownership limitation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Shares of common stock purchased in the offering by a stockholder and his or her associates
or individuals acting in concert with the stockholder, <I>plus </I>any shares a stockholder and
these individuals receive in the exchange for existing shares of Oneida Financial Corp.
common stock, may not exceed 5% of the total shares of common stock of Oneida Financial-New
to be issued and outstanding after the completion of the conversion.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WILL THE CONVERSION HAVE ANY EFFECT ON DEPOSIT AND LOAN ACCOUNTS AT ONEIDA SAVINGS BANK?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No.&nbsp;The account number, amount, interest rate and withdrawal rights of deposit accounts will
remain unchanged. Deposits will continue to be federally insured by the Federal Deposit
Insurance Corporation up to the legal limit. Loans and rights of borrowers will not be
affected. Depositors will no longer have voting rights in the mutual holding company as to
matters currently requiring such vote, which will cease to exist, after the conversion and
offering. Only stockholders of Oneida Financial-New will have voting rights after the
conversion and offering.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Please note that properly completed and signed stock order forms, with full payment, must be
received (not postmarked) by the Stock Information Center no later than 2:00 p.m., Eastern Time on
&#95;&#95;&#95;, 2010.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OTHER QUESTIONS?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>For answers to other questions, please read this proxy statement/prospectus. Questions about</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>voting on the plan of conversion may be directed to our proxy information agent, </B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>, at
1-888-</B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>, Monday through Friday from _____ a.m. to _____ p.m., Eastern Time. Questions
about the stock offering may be directed to our Stock Information Center at 1-800-</B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>, Monday
through Friday between 10:00&nbsp;a.m. and 4:00 p.m., Eastern Time. The Stock Information Center is
closed weekends and bank holidays.</B>
</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUMMARY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>This summary highlights material information from this proxy statement/prospectus and may not
contain all the information that is important to you. To understand the conversion and other
proposals fully, you should read this entire document carefully, including the sections entitled
&#147;Risk Factors,&#148; &#147;Proposal 1 &#151; Approval of The Plan of Conversion and Reorganization,&#148; &#147;Proposal 2
&#151; Adjournment of the Special Meeting,&#148; &#147;Proposals 3a through 3c &#151; Informational Proposals Related
to the Articles of Incorporation and Bylaws of Oneida Financial-New&#148; and the consolidated financial
statements and the notes to the consolidated financial statements.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Special Meeting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Date, Time and Place. </B>Oneida Financial Corp. will hold its special meeting of stockholders at
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, on &#091;meeting date&#093;, at &#95;&#95;&#95;.m., Eastern Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Proposals. </B>Stockholders will be voting on the following proposals at the special meeting:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The approval of a plan of conversion and reorganization
whereby: (a) Oneida Financial, MHC and Oneida Financial Corp.,
a federal corporation, will convert and reorganize from the mutual
holding company structure to the stock holding company structure;
(b) Oneida Financial Corp., a Maryland corporation (&#147;Oneida
Financial-New&#148;), will become the new stock holding company of
Oneida Savings Bank;  (c) the outstanding shares of Oneida Financial
Corp., other than those held by Oneida Financial, MHC, will be converted
into shares of common stock of Oneida Financial-New; and (d) Oneida Financial-New
will offer shares of its common stock for sale in a subscription offering, a community
offering and, possibly, a syndicated community offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The approval of the adjournment of the special meeting, if necessary, to
solicit additional proxies in the event that there are not sufficient votes at the time
of the special meeting to approve the plan of conversion; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following informational proposals:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Approval of a provision in Oneida Financial-New&#146;s articles of
incorporation requiring a super-majority vote to approve certain amendments to
Oneida Financial-New&#146;s articles of incorporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Approval of a provision in Oneida Financial-New&#146;s articles of
incorporation requiring a super-majority vote of stockholders to approve
stockholder-proposed amendments to Oneida Financial-New&#146;s bylaws;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oneida Financial-New&#146;s articles of
incorporation to limit the voting rights of shares beneficially owned in excess
of 10% of Oneida Financial-New&#146;s outstanding voting stock; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Such other business that may properly come before the meeting.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of Oneida Financial-New&#146;s articles of incorporation which are summarized as
informational proposals 3a through 3c were approved as part of the process in which our board of
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">directors approved the plan of conversion. These proposals are informational in nature only,
because the Office of Thrift Supervision&#146;s regulations governing mutual-to-stock conversions do not
provide for votes on matters other than the plan of conversion. While we are asking you to vote
with respect to each of the informational proposals listed above, the proposed provisions for which
an informational vote is requested will become effective if stockholders approve the plan of
conversion, regardless of whether stockholders vote to approve any or all of the informational
proposals. The provisions of Oneida Financial-New&#146;s articles of incorporation which are summarized
as informational proposals may have the effect of deterring or rendering more difficult attempts by
third parties to obtain control of Oneida Financial-New, if such attempts are not approved by the
board of directors, or may make the removal of the board of directors or management, or the
appointment of new directors, more difficult.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Vote Required for Approval of Proposals by the Stockholders of Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Proposal 1: Approval of the Plan of Conversion. </B>We must obtain the affirmative vote of the
holders of (i)&nbsp;two-thirds of the total number of votes entitled to be cast at the special meeting
by Oneida Financial Corp. stockholders, including shares held by Oneida Financial, MHC, and (ii)&nbsp;a
majority of the total number of votes entitled to be cast at the special meeting by Oneida
Financial Corp. stockholders other than Oneida Financial, MHC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Proposal 2: Approval of the adjournment of the special meeting. </B>We must obtain the
affirmative vote of at least a majority of the votes cast by Oneida Financial Corp. stockholders at
the special meeting to adjourn the special meeting, if necessary, to solicit additional proxies in
the event that there are not sufficient votes at the time of the special meeting to approve the
proposal to approve the plan of conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Informational Proposals 3a through 3c. </B>The provisions of Oneida Financial-New&#146;s articles of
incorporation that are summarized as informational proposals were approved as part of the process
in which the board of directors of Oneida Financial Corp. approved the plan of conversion. These
proposals are informational in nature only, because the Office of Thrift Supervision&#146;s regulations
governing mutual-to-stock conversions do not provide for votes on matters other than the plan of
conversion. While we are asking you to vote with respect to each of the informational proposals
listed above, the proposed provisions for which an informational vote is requested will become
effective if stockholders approve the plan of conversion, regardless of whether stockholders vote
to approve any or all of the informational proposals. The provisions of Oneida Financial-New&#146;s
articles of incorporation that are summarized as informational proposals may have the effect of
deterring or rendering more difficult attempts by third parties to obtain control of Oneida
Financial-New, if such attempts are not approved by the board of directors, or may make the removal
of the board of directors or management, or the appointment of new directors, more difficult.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Other Matters. </B>We must obtain the affirmative vote of the majority of the votes cast by
holders of outstanding shares of common stock of Oneida Financial Corp. At this time, we know of
no other matters that may be presented at the special meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proposal 1 must also be approved by the depositors of Oneida Savings Bank at a special meeting
of depositors called for that purpose. Depositors will receive separate informational materials
for Oneida Financial, MHC regarding the conversion.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Revocability of Proxies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may revoke your proxy at any time before the vote is taken at the special meeting. To
revoke your proxy, you must advise the corporate secretary of Oneida Financial Corp. in writing
before your common stock has been voted at the special meeting, deliver a later-dated proxy or
attend the special meeting and vote your shares in person. Attendance at the special meeting will
not in itself constitute revocation of your proxy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Vote by Oneida Financial, MHC</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management anticipates that Oneida Financial, MHC, our majority stockholder, will vote all of
its shares of common stock in favor of all the matters set forth above. If Oneida Financial, MHC
votes all of its shares in favor of each proposal, the approval of the adjournment of the special
meeting, if necessary, would be assured.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of &#091;record date&#093; the directors and executive officers of Oneida Financial Corp.
beneficially owned &#95;&#95;&#95;shares, or approximately &#95;&#95;&#95;% of the outstanding shares of Oneida Financial
Corp. common stock, and Oneida Financial, MHC owned 4,309,750 shares, or approximately 55.2% of the
outstanding shares of Oneida Financial Corp. common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Your board of directors unanimously recommends that you vote &#147;FOR&#148; the plan of conversion,
&#147;FOR&#148; the adjournment of the special meeting, if necessary, and &#147;FOR&#148; the Informational Proposals
3a through 3c.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Companies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Plan of Conversion and Reorganization</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Boards of Directors of Oneida Financial Corp., Oneida Financial, MHC, Oneida Savings Bank
and Oneida Financial-New have adopted a plan of conversion pursuant to which Oneida Savings Bank
will reorganize from a mutual holding company structure to a stock holding company structure.
Public stockholders of Oneida Financial Corp. will receive shares in Oneida Financial-New in
exchange for their shares of Oneida Financial Corp. common stock based on an exchange ratio. This
conversion to a stock holding company structure also includes the offering by Oneida Financial-New
of shares of its common stock to eligible depositors of Oneida Savings Bank and to the public,
including Oneida Financial Corp. stockholders, in a subscription offering and, if necessary, in a
community offering and/or syndicated community offering. Following the conversion and offering,
Oneida Financial, MHC and Oneida Financial Corp. will no longer exist, and Oneida Financial-New
will be the parent company of Oneida Savings Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion and offering cannot be completed unless the stockholders of Oneida Financial
Corp. approve the plan of conversion. Oneida Financial Corp.&#146;s stockholders will vote on the plan
of conversion at Oneida Financial Corp.&#146;s special meeting. This document is the proxy statement
used by Oneida Financial Corp.&#146;s board of directors to solicit proxies for the special meeting. It
is also the prospectus of Oneida Financial-New regarding the shares of Oneida Financial-New common
stock to be issued to Oneida Financial Corp.&#146;s stockholders in the share exchange. This document
does not serve as the prospectus relating to the offering by Oneida Financial-New of its shares of
common stock in the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">subscription offering and any community offering or syndicated community offering , which will be
made pursuant to a separate prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Current Organizational Structure</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Organizational Structure Following the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Reasons for the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Conditions to Completion of the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Office of Thrift Supervision has conditionally approved the plan of conversion. However,
such approval does not constitute a recommendation or endorsement of the plan of conversion by that
agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot complete the conversion unless:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion is approved by at least <I>a majority of votes
eligible </I>to be cast by depositors of Oneida Savings Bank as of &#95;&#95;&#95;, 2010;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion is approved by a vote of at least <I>two-thirds of
the outstanding shares </I>of common stock of Oneida Financial Corp. as of &#091;record date&#093;,
including shares held by Oneida Financial, MHC. (Because Oneida Financial, MHC owns
55.2% of the outstanding shares of Oneida Financial Corp. common stock, we expect
that Oneida Financial, MHC, together with our directors, executive officers and
employees, will control the outcome of this vote);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion is approved by a vote of at least <I>a majority of
the outstanding shares </I>of common stock of Oneida Financial Corp. as of &#091;record date&#093;,
excluding those shares held by Oneida Financial, MHC;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We sell at least the minimum number of shares of common stock offered;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We receive the final approval of the Office of Thrift Supervision to
complete the conversion; however, such approval does not constitute a recommendation
or endorsement of the plan of conversion by that agency.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial, MHC intends to vote its ownership interest in favor of the plan of
conversion. At &#091;record date&#093;, Oneida Financial, MHC owned 55.2% of the outstanding shares of
common stock of Oneida Financial Corp. The directors and executive officers of Oneida Financial
Corp. and their affiliates owned 758,674 shares of Oneida Financial Corp., or 9.71% of the
outstanding shares of common stock and 21.68% of the outstanding shares of common stock, excluding
shares owned by Oneida Financial,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">MHC, as of &#091;record date&#093;. They have indicated their intention to vote those shares in favor of
the plan of conversion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Exchange of Existing Shares of Oneida Financial Corp. Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office of Thrift Supervision regulations provide that in a conversion of a mutual holding
company to fully stock form, the public stockholders will be entitled to exchange their shares for
common stock of the new holding company, provided that the mutual holding company demonstrates to
the satisfaction of the Office of Thrift Supervision that the basis for the exchange is fair and
reasonable. Each publicly held share of Oneida Financial Corp. common stock will, at the
completion of the conversion, be automatically converted into the right to receive a number of
shares of Oneida Financial-New common stock. The number of shares of common stock will be
determined pursuant to the exchange ratio that ensures that the public stockholders will own the
same percentage of common stock in Oneida Financial-New after the conversion as they held in Oneida
Financial Corp. immediately prior to the conversion, excluding any new shares purchased by them in
the offering and their receipt of cash in lieu of fractional exchange shares. The exchange ratio is
not dependent on the market value of our currently outstanding Oneida Financial Corp. common stock.
The exchange ratio is based on the percentage of Oneida Financial Corp. common stock held by the
public, the independent valuation of Oneida Financial-New prepared by RP Financial, LC. and the
number of shares of common stock issued in the offering. The exchange ratio is expected to range
from approximately 0.7766 exchange shares for each publicly held share of Oneida Financial Corp. at
the minimum of the offering range to 1.2083 exchange shares for each publicly held share of Oneida
Financial Corp. at the adjusted maximum of the offering range.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a stockholder of Oneida Financial Corp., at the conclusion of the conversion, your
shares will be exchanged for shares of Oneida Financial-New. The number of shares you receive will
be based on the number of shares of common stock you own and the final exchange ratio determined as
of the conclusion of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows how the exchange ratio will adjust, based on the number of shares of
common stock issued in the offering and the shares of common stock issued and outstanding on the
date of this proxy statement/prospectus. The table also shows how many whole shares of Oneida
Financial-New a hypothetical owner of Oneida Financial Corp. common stock would receive in the
exchange for 100 shares of Oneida Financial Corp. common stock owned at the completion of the
conversion, depending on the number of shares issued in the offering.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Shares of Oneida</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Financial-New to be</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common Stock to be</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Equivalent  Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Shares to be Sold in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Issued for Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Issued in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Shares Based</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares to be</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>This Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Oneida Financial Corp.</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Conversion and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Upon Current Market</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Received for 100</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Exchange Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Price (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Existing Shares</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minimum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,346,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">55.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,717,781</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">44.81</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,064,656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">              0.7766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Midpoint</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,937,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,197,390</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,134,890       </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">       0.9136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,528,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,676,998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,205,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">              1.0507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">105</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15% above Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,207,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,228,548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,435,892</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">              1.2083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the value of shares of Oneida Financial-New common stock to be received in
the conversion by a holder of one share of Oneida Financial Corp., pursuant to the exchange
ratio, assuming the market price of $8.00 per share.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All currently outstanding options to purchase shares of Oneida Financial Corp. common
stock will expire on April&nbsp;25, 2010, prior to the consummation of the conversion, unless previously
exercised. At December&nbsp;31, 2009, there were 122,175 outstanding options to purchase shares of
Oneida Financial Corp. common stock, all of which have vested. If any such options are exercised
prior to their expiration on April&nbsp;25, 2010, they will be funded with newly issued shares rather
than through open market purchases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Exchange of Existing Stockholders&#146; Stock Certificates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion of existing outstanding shares of Oneida Financial Corp. common stock into the
right to receive shares of Oneida Financial-New common stock will occur automatically at the
completion of the conversion. As soon as practicable after the completion of the conversion, our
exchange agent will send a transmittal form to each public stockholder of Oneida Financial Corp.
who holds stock certificates. The transmittal forms will contain instructions on how to exchange
stock certificates of Oneida Financial Corp. common stock for stock certificates of Oneida
Financial-New common stock. We expect that stock certificates evidencing shares of Oneida
Financial-New common stock will be distributed within five business days after we receive properly
executed transmittal forms, Oneida Financial Corp. stock certificates and other required documents.
Shares held by public stockholders in street name (such as in a brokerage account) will be
exchanged automatically upon the completion of the conversion; no transmittal forms will be mailed
relating to these shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractional shares of Oneida Financial-New common stock will be issued to any public
stockholder of Oneida Financial Corp. when the conversion is completed. For each fractional share
that would otherwise be issued to a stockholder who holds a stock certificate, we will pay by check
an amount equal to the product obtained by multiplying the fractional share interest to which the
holder would otherwise be entitled by the $8.00 offering purchase price per share. Payment for
fractional shares will be made as soon as practicable after the receipt by the exchange agent of
the transmittal forms and the surrendered Oneida Financial Corp. stock certificates. If your
shares of common stock are held in street name, you will automatically receive cash in lieu of
fractional shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>You should not forward your stock certificates until you have received transmittal forms,
which will include forwarding instructions. </B>After the conversion, stockholders will not receive
shares of Oneida Financial-New common stock and will not be paid dividends on the shares of Oneida
Financial-New common stock until existing certificates representing shares of Oneida Financial
Corp. common stock are surrendered for exchange in compliance with the terms of the transmittal
form. When stockholders surrender their certificates, any unpaid dividends will be paid without
interest. For all other purposes, however, each certificate that represents shares of Oneida
Financial Corp. common stock outstanding at the effective date of the conversion will be considered
to evidence ownership of shares of Oneida Financial-New common stock into which those shares have
been converted by virtue of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a certificate for Oneida Financial Corp. common stock has been lost, stolen or destroyed,
our exchange agent will issue a new stock certificate upon receipt of appropriate evidence as to
the loss, theft or destruction of the certificate, appropriate evidence as to the ownership of the
certificate by the claimant, and appropriate and customary indemnification, which is normally
effected by the purchase of a bond from a surety company at the stockholder&#146;s expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shares of Oneida Financial-New common stock that we issue in exchange for existing shares
of Oneida Financial Corp. common stock will be considered to have been issued in full satisfaction
of all
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">rights pertaining to such shares of common stock, subject, however, to our obligation to pay
any dividends or make any other distributions with a record date prior to the effective date of the
conversion that may have been declared by us on or prior to the effective date, and which remain
unpaid at the effective date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How We Determined the Offering Range, the Exchange Ratio and the $8.00 Per Share Stock Price</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How We Intend to Use the Proceeds From the Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Dividend Policy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Purchases and Ownership by Officers and Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect our directors and executive officers, together with their associates, to subscribe
for 163,875 shares (or approximately $1.3&nbsp;million) of common stock in the offering, representing
&#95;&#95;&#95;% of shares to be sold at the midpoint of the offering range. The purchase price paid by them
will be the same $8.00 per share price paid by all other persons who purchase shares of common
stock in the offering. Following the conversion, our directors and executive officers, together
with their associates, are expected to own 857,000 shares of common stock, or 12.01% of our total
outstanding shares of common stock at the midpoint of the offering range, which includes shares
they currently own that will be exchanged for new shares of Oneida Financial-New.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Benefits to Management and Potential Dilution to Stockholders Resulting from the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market for Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Tax Consequences</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a general matter, the conversion will not be a taxable transaction for purposes of federal
or state income taxes to Oneida Financial, MHC, Oneida Financial Corp., Oneida Savings Bank, Oneida
Financial-New, persons eligible to subscribe in the subscription offering, or existing stockholders
of Oneida Financial Corp. Existing stockholders of Oneida Financial Corp. who receive cash in lieu
of fractional share interests in shares of Oneida Financial-New will recognize a gain or loss equal
to the difference between the cash received and the tax basis of the fractional share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Changes in Stockholders&#146; Rights for Existing Stockholders of Oneida Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the conversion, existing stockholders of Oneida Financial Corp. will become
stockholders of Oneida Financial-New. Some rights of stockholders of Oneida Financial-New will be
reduced compared to the rights stockholders currently have in Oneida Financial Corp. The reduction
in
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">stockholder rights results from differences between the federal and Maryland charters and
bylaws, and from distinctions between federal and Maryland law. Many of the differences in
stockholder rights under the articles of incorporation and bylaws of Oneida Financial-New are not
mandated by Maryland law but have been chosen by management as being in the best interests of
Oneida Financial-New and all of its stockholders. The differences in stockholder rights in the
articles of incorporation and bylaws of Oneida Financial-New include the following: (i)&nbsp;approval
by at least 80% of outstanding shares required to amend certain provisions of the articles of
incorporation; (ii)&nbsp;a limitation on the right to vote shares beneficially owned in excess of 10% of
outstanding shares; (iii)&nbsp;approval by at least 80% of outstanding shares required to approve
stockholder-proposed amendments to the bylaws; (iv)&nbsp;greater lead time required for stockholders to
submit proposals for new business or to nominate directors; and (v)&nbsp;a majority of stockholders
required to call special meetings of stockholders. See &#147;Comparison of Stockholders&#146; Rights For
Existing Stockholders of Oneida Financial Corp.&#148; for a discussion of these differences.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Dissenters&#146; Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders of Oneida Financial Corp. do not have dissenters&#146; rights in connection with the
conversion and offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Important Risks in Owning Oneida Financial-New&#146;s Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before you decide to purchase stock, you should read the &#147;Risk Factors&#148; section beginning on
page 14 of this proxy statement/prospectus.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>You should consider carefully the following risk factors when deciding how to vote on the
conversion and before purchasing shares of Oneida Financial-New common stock.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Related to Our Business</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Related to the Offering and the Exchange</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The market value of Oneida Financial-New common stock received in the share exchange may be less
than the market value of Oneida Financial Corp. common stock exchanged.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of shares of Oneida Financial-New common stock you receive will be based on an
exchange ratio that will be determined as of the date of completion of the conversion and offering.
The exchange ratio will be based on the percentage of Oneida Financial Corp. common stock held by
the public prior to the completion of the conversion and offering, the final independent appraisal
of Oneida Financial-New common stock prepared by RP Financial, LC. and the number of shares of
common stock sold in the offering. The exchange ratio will ensure that existing public shareholders
of Oneida Financial Corp. common stock will own the same percentage of Oneida Financial-New common
stock after the conversion and offering as they owned of Oneida Financial Corp. common stock
immediately prior to completion of the conversion and offering (excluding any new shares purchased
by them in the offering and their receipt of cash in lieu of fractional exchange shares). The
exchange ratio will not depend on the market price of Oneida Financial Corp. common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exchange ratio ranges from 0.7766 shares at the minimum to 1.0507 shares at the maximum
(or 1.2083 at the adjusted maximum) of the offering range of Oneida Financial-New common stock per
share of Oneida Financial Corp. common stock. Shares of Oneida Financial-New common stock issued in
the share exchange will have an initial value of $8.00 per share. Depending on the exchange ratio
and the market value of Oneida Financial Corp. common stock at the time of the exchange, the
initial market value of the Oneida Financial-New common stock that you receive in the share
exchange could be less than the market value of the Oneida Financial Corp. common stock that you
currently own. Based on the most recent closing price of Oneida Financial Corp. common stock prior
to the date of this proxy statement/prospectus, which was $&#95;&#95;&#95;, unless at least &#95;&#95;&#95;shares of
Oneida Financial-New common stock are sold in the offering (which is between the &#95;&#95;&#95;and the &#95;&#95;&#95;
of the offering range), the initial value of the Oneida Financial-New common stock you receive in
the share exchange would be less than the market value of the Oneida Financial Corp. common stock
you currently own.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Remaining risks are the same as the offering prospectus&#093;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INFORMATION ABOUT THE SPECIAL MEETING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This proxy statement/prospectus is being furnished to you in connection with the solicitation
by the board of directors of Oneida Financial Corp. of proxies to be voted at the special meeting
of stockholders to be held at <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, on &#091;meeting date&#093;, at <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> &#95;&#95;&#95;.m., Eastern Time, and
any adjournment or postponement thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of the special meeting is to consider and vote upon the Plan of Conversion and
Reorganization of Oneida Financial, MHC (referred to herein as the &#147;plan of conversion&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, stockholders will vote on a proposal to approve the adjournment of the special
meeting, if necessary, to solicit additional proxies in the event that there are not sufficient
votes at the time of the special meeting to approve the proposal. Stockholders also will vote on
informational proposals with respect to the articles of incorporation and bylaws of Oneida
Financial-New.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Voting in favor of or against the plan of conversion includes a vote for or against the
conversion of Oneida Financial, MHC to a stock holding company as contemplated by the plan of
conversion. Voting in favor of the plan of conversion will not obligate you to purchase any shares
of common stock in the offering and will not affect the balance, interest rate or federal deposit
insurance of any deposits at Oneida Savings Bank.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Who Can Vote at the Meeting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You are entitled to vote your Oneida Financial Corp. common stock if our records show that you
held your shares as of the close of business on &#091;record date&#093;. If your shares are held in a stock
brokerage account or by a bank or other nominee, you are considered the beneficial owner of shares
held in street name and these proxy materials are being forwarded to you by your broker or nominee.
As the beneficial owner, you have the right to direct your broker or nominee how to vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the close of business on &#091;record date&#093;, there were <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> shares of Oneida Financial
Corp. common stock outstanding. Each share of common stock has one vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Attending the Meeting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a stockholder as of the close of business on &#091;record date&#093;, you may attend the
meeting. However, if you hold your shares in street name, you will need proof of ownership to be
admitted to the meeting. A recent brokerage statement or a letter from a bank or broker are
examples of proof of ownership. If you want to vote your shares of Oneida Financial Corp. common
stock held in street name in person at the meeting, you will have to get a written proxy in your
name from the broker, bank or other nominee who holds your shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Quorum; Vote Required</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The special meeting will be held only if there is a quorum. A quorum exists if a majority of
the outstanding shares of common stock entitled to vote, represented in person or by proxy, is
present at the meeting. If you return valid proxy instructions or attend the meeting in person,
your shares will be counted for purposes of determining whether there is a quorum, even if you
abstain from voting. Broker non-votes also will be counted for purposes of determining the
existence of a quorum. A broker non-vote occurs when a broker, bank or other nominee holding
shares for a beneficial owner does not vote on a
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">particular proposal because the nominee does not have discretionary voting power with respect to
that item and has not received voting instructions from the beneficial owner.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Proposal 1: Approval of the Plan of Conversion and Reorganization. </B>We must obtain the
affirmative vote of the holders of (i)&nbsp;two-thirds of the outstanding common stock of Oneida
Financial Corp. entitled to be cast at the special meeting, including shares held by Oneida
Financial, MHC, and (ii)&nbsp;a majority of the outstanding shares of common stock of Oneida Financial
Corp. entitled to be cast at the special meeting, other than shares held by Oneida Financial, MHC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Proposal 2: Approval of the adjournment of the special meeting. </B>We must obtain the
affirmative vote of at least a majority of the votes cast by Oneida Financial Corp. stockholders
entitled to vote at the special meeting to adjourn the special meeting, if necessary, to solicit
additional proxies in the event that there are not sufficient votes at the time of the special
meeting to approve the proposal to approve the plan of conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Informational Proposals 3a through 3c: Approval of certain provisions in Oneida
Financial-New&#146;s articles of incorporation. </B>The provisions of Oneida Financial-New&#146;s articles of
incorporation which are summarized as informational proposals were approved as part of the process
in which the board of directors of Oneida Financial Corp. approved the plan of conversion. These
proposals are informational in nature only, because the Office of Thrift Supervision&#146;s regulations
governing mutual-to-stock conversions do not provide for votes on matters other than the plan of
conversion. While we are asking you to vote with respect to each of the informational proposals,
the proposed provisions for which an informational vote is requested will become effective if
stockholders approve the plan of conversion, regardless of whether stockholders vote to approve any
or all of the informational proposals. The provisions of Oneida Financial-New&#146;s articles of
incorporation which are summarized as informational proposals may have the effect of deterring or
rendering more difficult attempts by third parties to obtain control of Oneida Financial-New, if
such attempts are not approved by the board of directors, or may make the removal of the board of
directors or management, or the appointment of new directors, more difficult.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Other Matters. </B>We must obtain the affirmative vote of the majority of the votes cast by
holders of outstanding shares of common stock of Oneida Financial Corp. At this time, we know of
no other matters that may be presented at the special meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Shares Held by Oneida Financial, MHC and Our Officers and Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of &#091;record date&#093;, Oneida Financial, MHC beneficially owned 4,309,750 shares of Oneida
Financial Corp. common stock. This equals approximately 55.2% of our outstanding shares. Oneida
Financial, MHC intends to vote all of its shares in favor of Proposal 1&#151;Approval of the plan of
conversion, Proposal 2&#151;Approval of the adjournment of the special meeting, and Informational
Proposals 3a through 3c.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of &#091;record date&#093;, our officers and directors beneficially owned &#95;&#95;&#95; shares of Oneida
Financial Corp. common stock, not including shares that they may acquire upon the exercise of
outstanding stock options. This equals &#95;&#95;&#95;% of our outstanding shares and &#95;&#95;&#95;% of shares held by
persons other than Oneida Financial, MHC.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Voting by Proxy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our board of directors is sending you this proxy statement/prospectus to request that you
allow your shares of Oneida Financial Corp. common stock to be represented at the special meeting
by the persons named in the enclosed proxy card. All shares of Oneida Financial Corp. common stock
represented at the meeting by properly executed and dated proxies will be voted according to the
instructions indicated on the proxy card. If you sign, date and return a proxy card without giving
voting instructions, your shares will be voted as recommended by our board of directors. Our board
of directors recommends that you vote <B>&#147;FOR&#148; </B>approval of the plan of conversion, <B>&#147;FOR&#148; </B>approval of
the adjournment of the special meeting, and <B>&#147;FOR&#148; </B>each of the Informational Proposals 3a through
3c.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any matters not described in this proxy statement/prospectus are properly presented at the
special meeting, the board of directors will use their judgment to determine how to vote your
shares. We do not know of any other matters to be presented at the special meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If your Oneida Financial Corp. common stock is held in street name, you will receive
instructions from your broker, bank or other nominee that you must follow to have your shares
voted. Your broker, bank or other nominee may allow you to deliver your voting instructions via
the telephone or the Internet. Please see the instruction form provided by your broker, bank or
other nominee that accompanies this proxy statement/prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Revocability of Proxies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may revoke your proxy at any time before the vote is taken at the special meeting. To
revoke your proxy, you must advise the corporate secretary of Oneida Financial Corp. in writing
before your common stock has been voted at the special meeting, deliver a later-dated proxy or
attend the special meeting and vote your shares in person. Attendance at the special meeting will
not in itself constitute revocation of your proxy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Solicitation of Proxies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This proxy statement/prospectus and the accompanying proxy card are being furnished to you in
connection with the solicitation of proxies for the special meeting by the board of directors.
Oneida Financial Corp. will pay the costs of soliciting proxies from its stockholders. To the
extent necessary to permit approval of the plan of conversion and the other proposals being
considered, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, our proxy solicitor, directors, officers or employees of Oneida
Financial Corp. and Oneida Savings Bank may solicit proxies by mail, telephone and other forms of
communication. We will reimburse such persons for their reasonable out-of-pocket expenses incurred
in connection with such solicitation. For its services as information agent and stockholder proxy
solicitor, we will pay
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, $&#95;&#95;&#95; plus out-of-pocket expenses and charges for
telephone calls in connection with the solicitation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will also reimburse banks, brokers, nominees and other fiduciaries for the expenses they
incur in forwarding the proxy materials to you.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Participants in the Employee Stock Ownership Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you participate in Oneida Savings Bank Employee Stock Ownership Plan, you will receive a
voting instruction form that reflects all shares you may direct the trustees to vote on your behalf
under the plan. Under the terms of the Employee Stock Ownership Plan, the Employee Stock Ownership
Plan trustee votes all shares held by the Employee Stock Ownership Plan, but each Employee Stock
Ownership Plan participant may direct the trustee how to vote the shares of common stock allocated
to his or her account. The Employee Stock Ownership Plan trustee, subject to the exercise of its
fiduciary duties, will vote all unallocated shares of Oneida Financial Corp. common stock held by
the ESOP and allocated shares for which no voting instructions are received in the same proportion
as shares for which it has received timely voting instructions. The deadline for returning your
voting instructions to the plan&#146;s trustee is <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Participants in the 401(k) Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you hold shares of common stock through the Oneida Savings Bank 401(k) Savings Plan
(&#147;401(k) Plan&#148;), you will receive a voting instruction form that reflects all shares that you may
direct the trustee to vote on your behalf under the 401(k) Plan. Under the terms of the 401(k)
Plan, a participant is entitled to direct the trustee as to how to vote his or her interest in any
shares of common stock held by the Oneida Financial Corp. Stock Fund. The trustee will vote all
shares for which no directions are given, or for which instructions were not timely received, in
the same proportion as the shares for which the trustee received voting instructions. The deadline
for returning your voting instructions to the 401(k) Plan&#146;s trustee is <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Recommendation of the Board of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The board of directors recommends that you promptly sign and mark the enclosed proxy in favor
of the above described proposals, including the adoption of the plan of conversion, and promptly
return it in the enclosed envelope. Voting the proxy card will not prevent you from voting in
person at the special meeting. For information on submitting your proxy, please refer to the
instructions on the enclosed proxy.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Your prompt vote is very important. Failure to vote will have the same effect as voting
against the plan of conversion.</B>
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROPOSAL 1 &#151; APPROVAL OF THE PLAN OF CONVERSION AND REORGANIZATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The boards of directors of Oneida Financial Corp. and of Oneida Financial, MHC have approved
the plan of conversion, referred to herein as the &#147;plan of conversion.&#148; The plan of conversion
must also be approved by the members of Oneida Financial, MHC and the stockholders of Oneida
Financial Corp. A special meeting of members and a special meeting of stockholders have been
called for this purpose. The Office of Thrift Supervision has conditionally approved the plan of
conversion; however, such approval does not constitute a recommendation or endorsement of the plan
of conversion by that agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the plan of conversion, our organization will convert from the mutual holding
company form of organization to the fully stock form. Currently, Oneida Savings Bank is a
wholly-owned subsidiary of Oneida Financial Corp. and Oneida Financial, MHC owns approximately
55.2% of Oneida Financial Corp.&#146;s common stock. The remaining 44.8% of Oneida Financial Corp.&#146;s
common stock is owned by public stockholders. As a result of the conversion, our newly formed
company, Oneida Financial-New, will become the holding company of Oneida Savings Bank. Each share
of Oneida Financial Corp. common stock owned by the public will be exchanged for between 0.7766
shares at the minimum and 1.0507 shares at the maximum of the offering range (or 1.2083 at the
adjusted maximum of the offering range) of Oneida Financial-New common stock, so that Oneida
Financial Corp.&#146;s existing public stockholders will own the same percentage of Oneida Financial-New
common stock as they owned of Oneida Financial Corp.&#146;s common stock immediately prior to the
conversion (excluding any new shares purchased by them in the offering and their receipt of cash in
lieu of fractional exchange shares). The actual number of shares that you will receive will depend
on the percentage of Oneida Financial Corp. common stock held by the public at the completion of
the conversion, the final independent appraisal of Oneida Financial-New and the number of shares of
Oneida Financial-New common stock sold in the offering described in the following paragraph. It
will not depend on the market price of Oneida Financial Corp. common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concurrently with the exchange offer, we are offering up to 5,207,344 shares of common stock
of Oneida Financial-New, representing the 55.2% ownership interest of Oneida Financial, MHC in
Oneida Financial Corp., for sale to eligible depositors and to the public at a price of $8.00 per
share. After the conversion and offering are completed, Oneida Savings Bank will be a wholly-owned
subsidiary of Oneida Financial-New, and 100% of the common stock of Oneida Financial-New will be
owned by public stockholders. As a result of the conversion and offering, Oneida Financial Corp.
and Oneida Financial, MHC will cease to exist.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial-New intends to contribute between $12.2&nbsp;million and $16.8&nbsp;million of net
proceeds, or $19.4&nbsp;million if the offering range is increased by 15%, to the Oneida Savings Bank
and to retain between $11.1&nbsp;million and $15.3&nbsp;million of the net proceeds, or $17.7&nbsp;million if the
offering range is increased by 15%. The conversion will be consummated only upon the issuance of
at least the minimum number of shares of our common stock offered pursuant to the plan of
conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plan of conversion provides that we will offer shares of common stock in a &#147;subscription
offering&#148; in the following descending order of priority:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>First, to depositors with accounts at Oneida Savings Bank with aggregate
balances of at least $50 at the close of business on December&nbsp;31, 2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Second, to our tax-qualified employee benefit plans (including Oneida Savings
Bank&#146;s employee stock ownership plan and 401(k) plan), which will receive, without
payment
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>therefor, nontransferable subscription rights to purchase in the aggregate up to 10%
of the shares of common stock sold in the offering. We expect our employee stock
ownership plan to purchase 4% of the shares of common stock sold in the stock
offering.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Third, to depositors with accounts at Oneida Savings Bank with aggregate
balances of at least $50 at the close of business on March&nbsp;31, 2010.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fourth, to depositors of Oneida Savings Bank at the close of business on
&#091;member voting date&#093;.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of common stock not purchased in the subscription offering may be offered for sale to
the general public in a &#147;community offering,&#148; with a preference given first to natural persons
residing in the New York Counties of Chenango, Cortland, Herkimer, Lewis, Madison, Oneida,
Onondaga, Oswego and Otsego, and then to Oneida Financial Corp.&#146;s public stockholders as of
&#091;stockholder record date&#093;. The community offering, if held, may begin concurrently with, during or
promptly after the subscription offering as we may determine at any time. We also may offer for
sale shares of common stock not purchased in the subscription offering or community offering
through a &#147;syndicated community offering&#148; managed by Stifel, Nicolaus &#038; Company, Incorporated. We
have the right to accept or reject, in our sole discretion, orders received in the community
offering or syndicated community offering. Any determination to accept or reject stock orders in
the community offering and the syndicated community offering will be based on the facts and
circumstances available to management at the time of the determination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The community offering, if any, may begin at the same time as, during, or after the
subscription offering and must be completed within 45&nbsp;days after the completion of the subscription
offering unless otherwise extended by the Office of Thrift Supervision. See &#147;&#151;Community Offering.&#148;
The syndicated community offering may begin at any time following the commencement of the
subscription offering and must be completed within 45&nbsp;days after the completion of the subscription
offering unless otherwise extended by us, with approval of the Office of Thrift Supervision.
Alternatively, we may sell any remaining shares in an underwritten public offering, which would be
conducted on a firm commitment basis. See &#147;&#151;Syndicated Community Offering.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We determined the number of shares of common stock to be offered in the offering based upon an
independent valuation of the estimated pro forma market value of Oneida Financial-New. All shares
of common stock to be sold in the offering will be sold at $8.00 per share. Investors will not be
charged a commission to purchase shares of common stock in the offering. The independent valuation
will be updated and the final number of shares of common stock to be issued in the offering will be
determined at the completion of the offering. See &#147;&#151;Stock Pricing and Number of Shares to be
Issued&#148; for more information as to the determination of the estimated pro forma market value of the
common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a brief summary of the conversion and is qualified in its entirety by
reference to the provisions of the plan of conversion. A copy of the plan of conversion is
available for inspection at each branch office of Oneida Savings Bank and at the Northeast Regional
and the Washington, D.C. offices of the Office of Thrift Supervision. The plan of conversion is
also filed as an exhibit to Oneida Financial, MHC&#146;s application to convert from mutual to stock
form of which this prospectus is a part, copies of which may be obtained from the Office of Thrift
Supervision. The plan of conversion is also filed as an exhibit to the registration statement we
have filed with the Securities and Exchange Commission, of which this prospectus is a part, copies
of which may be obtained from the Securities and Exchange Commission or online at the Securities
and Exchange Commission&#146;s website. See &#147;Where You Can Find Additional Information.&#148;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The board of directors recommends that you vote &#147;FOR&#148; the Plan of Conversion of Oneida
Financial, MHC.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Reasons for the Conversion and Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROPOSAL 2 &#151; ADJOURNMENT OF THE SPECIAL MEETING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If there are not sufficient votes to constitute a quorum or to approve the plan of conversion
at the time of the special meeting, the proposals may not be approved unless the special meeting is
adjourned to a later date or dates in order to permit further solicitation of proxies. In order to
allow proxies that have been received by Oneida Financial Corp. at the time of the special meeting
to be voted for an adjournment, if necessary, Oneida Financial Corp. has submitted the question of
adjournment to its stockholders as a separate matter for their consideration. The board of
directors of Oneida Financial Corp. recommends that stockholders vote &#147;FOR&#148; the adjournment
proposal. If it is necessary to adjourn the special meeting, no notice of the adjourned special
meeting is required to be given to stockholders (unless the adjournment is for more than 30&nbsp;days or
if a new record date is fixed), other than an announcement at the special meeting of the hour, date
and place to which the special meeting is adjourned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The board of directors recommends that you vote &#147;FOR&#148; the adjournment of the special meeting,
if necessary, to solicit additional proxies in the event that there are not sufficient votes at the
time of the special meeting to approve the plan of conversion.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROPOSALS 3a THROUGH 3c &#151; INFORMATIONAL PROPOSALS RELATED TO THE<BR>
ARTICLES OF INCORPORATION AND BYLAWS OF ONEIDA FINANCIAL CORP.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By their approval of the plan of conversion as set forth in Proposal 1, the board of directors
of Oneida Financial Corp. has approved each of the informational proposals numbered 3a through 3c,
all of which relate to provisions included in the articles of incorporation of Oneida
Financial-New. Each of these informational proposals is discussed in more detail below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the conversion, the public stockholders of Oneida Financial Corp., whose rights
are presently governed by the charter and bylaws of Oneida Financial Corp., will become
stockholders of Oneida Financial-New, whose rights will be governed by the articles of
incorporation and bylaws of Oneida Financial-New. The following informational proposals address
the material differences between the governing documents of the two companies. This discussion is
qualified in its entirety by reference to the charter and bylaws of Oneida Financial Corp. and the
articles of incorporation and bylaws of Oneida Financial-New. See &#147;Where You Can Find Additional
Information&#148; for procedures for obtaining a copy of those documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of Oneida Financial-New&#146;s articles of incorporation that are summarized as
informational proposals 3a through 3c were approved as part of the process in which the board of
directors of Oneida Financial Corp. approved the plan of conversion. These proposals are
informational in nature only, because the Office of Thrift Supervision&#146;s regulations governing
mutual-to-stock conversions do not provide for votes on matters other than the plan of conversion.
Oneida Financial Corp.&#146;s stockholders are not being asked to approve these informational proposals
at the special meeting. While we are asking you to vote with respect to each of the informational
proposals set forth below, the proposed provisions for which an informational vote is requested
will become effective if stockholders
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">approve the plan of conversion, regardless of whether stockholders vote to approve any or all of
the informational proposals. The provisions of Oneida Financial-New&#146;s articles of incorporation
and bylaws which are summarized as informational proposals may have the effect of deterring or
rendering more difficult attempts by third parties to obtain control of Oneida Financial-New, if
such attempts are not approved by the board of directors, or may make the removal of the board of
directors or management, or the appointment of new directors, more difficult.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Informational Proposal 3a. &#150; Approval of a Provision in Oneida Financial-New&#146;s Articles of
Incorporation Requiring a Super-Majority Vote to Amend Certain Provisions of the Articles of
Incorporation of Oneida Financial-New. </B>No amendment of the charter of Oneida Financial Corp. may
be made unless it is first proposed by the board of directors, then preliminarily approved by the
Office of Thrift Supervision, and thereafter approved by the holders of a majority of the total
votes eligible to be cast at a legal meeting. The articles of incorporation of Oneida
Financial-New may generally be amended, upon the submission of an amendment by the board of
directors to a vote of the stockholders, by the affirmative vote of at least two-thirds of the
outstanding shares of common stock, or by the affirmative vote of a majority of the outstanding
shares of common stock if at least two-thirds of the members of the whole board of directors
approves such amendment; provided, however, that any amendment of Section&nbsp;C, D, E or F of Article
Fifth (Preferred Stock, Restrictions on Voting Rights of the Corporation&#146;s Equity Securities,
Majority Vote, Quorum), Article&nbsp;7 (Directors), Article&nbsp;8 (Bylaws), Article&nbsp;9 (Evaluation of Certain
Offers), Article&nbsp;10 (Indemnification, etc. of Directors and Officers), Article&nbsp;11 (Limitation of
Liability) and Article&nbsp;12 (Amendment of the Articles of Incorporation) must be approved by the
affirmative vote of the holders of at least 80% of the outstanding shares entitled to vote, except
that the board of directors may amend the articles of incorporation without any action by the
stockholders to increase or decrease the aggregate number of shares of capital stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These limitations on amendments to specified provisions of Oneida Financial-New&#146;s articles of
incorporation are intended to ensure that the referenced provisions are not limited or changed upon
a simple majority vote. While this limits the ability of stockholders to amend those provisions,
Oneida Financial, MHC, as a 55.2% stockholder, currently can effectively block any stockholder
proposed change to the charter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The requirement of a super-majority stockholder vote to amend specified provisions of Oneida
Financial-New&#146;s articles of incorporation could have the effect of discouraging a tender offer or
other takeover attempt where the ability to make fundamental changes through amendments to the
articles of incorporation is an important element of the takeover strategy of the potential
acquiror. The board of directors believes that the provisions limiting certain amendments to the
articles of incorporation will put the board of directors in a stronger position to negotiate with
third parties with respect to transactions potentially affecting the corporate structure of Oneida
Financial-New and the fundamental rights of its stockholders, and to preserve the ability of all
stockholders to have an effective voice in the outcome of such matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The board of directors recommends that you vote &#147;FOR&#148; the approval of a provision in Oneida
Financial-New&#146;s articles of incorporation requiring a super-majority vote to approve certain
amendments to Oneida Financial-New&#146;s articles of incorporation.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Informational Proposal 3b. &#150; Approval of a Provision in Oneida Financial-New&#146;s Articles of
Incorporation Requiring a Super-Majority Vote of Stockholders to Approve Stockholder Proposed
Amendments to Oneida Financial-New&#146;s Bylaws. </B>An amendment to Oneida Financial Corp.&#146;s bylaws
proposed by stockholders must be approved by the holders of a majority of the total votes eligible
to be cast at a legal meeting subject to applicable approval by the Office of Thrift Supervision.
The articles of incorporation of Oneida Financial-New provide that stockholders may only amend the
bylaws if such
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">proposal is approved by the affirmative vote of the holders of at least 80% of the outstanding
shares entitled to vote.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The requirement of a super-majority stockholder vote to amend the bylaws of Oneida
Financial-New is intended to ensure that the bylaws are not limited or changed upon a simple
majority vote of stockholders. While this limits the ability of stockholders to amend the bylaws,
Oneida Financial, MHC, as a 55.2% stockholder, currently can effectively block any stockholder
proposed change to the bylaws. Also, the board of directors of both Oneida Financial Corp. and
Oneida Financial-New may by a majority vote amend either company&#146;s bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This provision in Oneida Financial-New&#146;s articles of incorporation could have the effect of
discouraging a tender offer or other takeover attempt where the ability to make fundamental changes
through amendments to the bylaws is an important element of the takeover strategy of the potential
acquiror. The board of directors believes that the provision limiting amendments to the bylaws will
put the board of directors in a stronger position to negotiate with third parties with respect to
transactions potentially affecting the corporate structure of Oneida Financial-New and the
fundamental rights of its stockholders, and to preserve the ability of all stockholders to have an
effective voice in the outcome of such matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The board of directors recommends that you vote &#147;FOR&#148; the approval of the provision in Oneida
Financial-New&#146;s articles of incorporation requiring a super-majority vote of stockholders to
approve stockholder proposed amendments to Oneida Financial-New&#146;s bylaws.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Informational Proposal 3c. &#150; Approval of a Provision in Oneida Financial-New&#146;s Articles of
Incorporation to Limit the Voting Rights of Shares Beneficially Owned in Excess of 10% of Oneida
Financial-New&#146;s Outstanding Voting Stock. </B>The articles of incorporation of Oneida Financial-New
provide that in no event shall any person, who directly or indirectly beneficially owns in excess
of 10% of the then-outstanding shares of common stock as of the record date for the determination
of stockholders entitled or permitted to vote on any matter, be entitled or permitted to any vote
in respect of the shares held in excess of the 10% limit. Beneficial ownership is determined
pursuant to the federal securities laws and includes, but is not limited to, shares as to which any
person and his or her affiliates (i)&nbsp;have the right to acquire pursuant to any agreement,
arrangement or understanding or upon the exercise of conversion rights, exchange rights, warrants
or options and (ii)&nbsp;have or share investment or voting power (but shall not be deemed the
beneficial owner of any voting shares solely by reason of a revocable proxy granted for a
particular meeting of stockholders, and that are not otherwise beneficially, or deemed by Oneida
Financial-New to be beneficially, owned by such person and his or her affiliates).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing restriction does not apply to any employee benefit plans of Oneida Financial-New
or any subsidiary or a trustee of a plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The restated organization certificate of Oneida Savings Bank will provide that, for a period
of five years from the effective date of the conversion, no person shall directly or indirectly
offer to acquire or acquire more than 10% of the then-outstanding shares of common stock. The
foregoing restriction does not apply to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the purchase of shares by underwriters in connection with a public offering; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the purchase of shares by any employee benefit plans of Oneida Financial Corp. or
any subsidiary.</TD>
</TR>




</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provision in Oneida Financial-New&#146;s articles of incorporation limiting the voting rights
of beneficial owners of more than 10% of Oneida Financial-New&#146;s outstanding voting stock is
intended to limit the ability of any person to acquire a significant number of shares of Oneida
Financial-New common stock and thereby gain sufficient voting control so as to cause Oneida
Financial-New to effect a transaction that may not be in the best interests of Oneida Financial-New
and its stockholders generally. This provision will not prevent a stockholder from seeking to
acquire a controlling interest in Oneida Financial-New, but it will prevent a stockholder from
voting more than 10% of the outstanding shares of common stock unless that stockholder has first
persuaded the board of directors of the merits of the course of action proposed by the stockholder.
The board of directors of Oneida Financial-New believes that fundamental transactions generally
should be first considered and approved by the board of directors as it generally believes that it
is in the best position to make an initial assessment of the merits of any such transactions and
that its ability to make the initial assessment could be impeded if a single stockholder could
acquire a sufficiently large voting interest so as to control a stockholder vote on any given
proposal. This provision in Oneida Financial-New&#146;s articles of incorporation makes an acquisition,
merger or other similar corporate transaction less likely to occur, even if such transaction is
supported by most stockholders, because it can prevent a holder of shares in excess of the 10%
limit from voting the excess shares in favor of the transaction. Thus, it may be deemed to have an
anti-takeover effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The board of directors recommends that you vote &#147;FOR&#148; the approval of a provision in Oneida
Financial-New&#146;s articles of incorporation to limit the voting rights of shares beneficially owned
in excess of 10% of Oneida Financial-New&#146;s outstanding voting stock.</B>
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA<BR>
OF<BR>
ONEIDA FINANCIAL CORP.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OUR DIVIDEND POLICY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MARKET FOR THE COMMON STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CAPITALIZATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PRO FORMA DATA</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<BR>
AND RESULTS OF OPERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BUSINESS OF ONEIDA FINANCIAL-NEW</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->25<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BUSINESS OF ONEIDA FINANCIAL CORP. AND ONEIDA SAVINGS BANK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUPERVISION AND REGULATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TAXATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MANAGEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BENEFICIAL OWNERSHIP OF COMMON STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMPARISON OF STOCKHOLDERS&#146; RIGHTS FOR EXISTING<BR>
STOCKHOLDERS OF ONEIDA FINANCIAL CORP.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RESTRICTIONS ON ACQUISITION OF ONEIDA FINANCIAL-NEW</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF CAPITAL STOCK OF ONEIDA FINANCIAL-NEW FOLLOWING THE CONVERSION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TRANSFER AGENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The transfer agent and registrar for Oneida Financial-New&#146;s common stock is Registrar and
Transfer Company, Cranford, New York.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->26<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPERTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements of Oneida Financial Corp. as of December&nbsp;31, 2009 and
2008, and for each of the years in the three year period ended December&nbsp;31, 2009, appearing in this
proxy statement/prospectus and elsewhere in the registration statement have been audited by Crowe
Horwath LLP, independent registered public accountants, as stated in their reports with respect
thereto, and are included herein in reliance given upon the authority of said firm as experts in
accounting and auditing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RP Financial, LC. has consented to the publication herein of the summary of its report to
Oneida Financial-New setting forth its opinion as to the estimated pro forma market value of the
shares of common stock upon completion of the conversion and offering and its letters with respect
to subscription rights and the liquidation accounts.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL AND TAX MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luse Gorman Pomerenk &#038; Schick, P.C., Washington, D.C., counsel to Oneida Financial-New, Oneida
Financial, MHC, Oneida Financial Corp. and Oneida Savings Bank, will issue to Oneida Financial-New
its opinion regarding the legality of the common stock and the federal income tax consequences of
the conversion. Crowe Horwath LLP has provided an opinion to us regarding the New York income tax
consequences of the conversion. Certain legal matters will be passed upon for Stifel, Nicolaus &#038;
Company, Incorporated by Kilpatrick Stockton LLP, Washington, D.C.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial-New has filed with the Securities and Exchange Commission a registration
statement under the Securities Act of 1933 with respect to the shares of common stock offered
hereby. As permitted by the rules and regulations of the Securities and Exchange Commission, this
proxy statement/prospectus does not contain all the information set forth in the registration
statement. Such information, including the appraisal report which is an exhibit to the
registration statement, can be examined without charge at the public reference facilities of the
Securities and Exchange Commission located at 100 F Street, N.E., Washington, D.C. 20549, and
copies of such material can be obtained from the Securities and Exchange Commission at prescribed
rates. The Securities and Exchange Commission telephone number is 1-800-SEC-0330. In addition,
the Securities and Exchange Commission maintains a web site (<U>http://www.sec.gov</U>) that
contains reports, proxy and information statements and other information regarding registrants that
file electronically with the Securities and Exchange Commission, including Oneida Financial-New.
The statements contained in this proxy statement/prospectus as to the contents of any contract or
other document filed as an exhibit to the registration statement are, of necessity, brief
descriptions of the material terms of, and should be read in conjunction with, such contract or
document.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oneida Financial, MHC has filed with the Office of Thrift Supervision an Application on Form
AC with respect to the conversion. This proxy statement/prospectus omits certain information
contained in the application. The application may be examined at the principal office of the Office
of Thrift Supervision, 1700 G Street, N.W., Washington, D.C. 20552, and at the Northeast Regional
Office of the Office of Thrift Supervision, Harborside Financial Center Plaza Five, Suite&nbsp;1600,
Jersey City, New York 07311. Our plan of conversion is available, upon request, at each of our
banking offices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>In connection with the offering, Oneida Financial-New will register its common stock under
Section&nbsp;</B><B>12(b)</B><B> of the Securities Exchange Act of 1934 and, upon such registration, Oneida
Financial-New and the holders of its common stock will become subject to the proxy solicitation
rules, reporting requirements and restrictions on common stock purchases and sales by directors,
officers</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->27<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>and greater than 10% stockholders, the annual and periodic reporting and certain other
requirements of the Securities Exchange Act of 1934. Under the plan of conversion, Oneida
Financial-New has undertaken that it will not terminate such registration for a period of at least
three years following the offering.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OTHER MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the date of this document, the board of directors is not aware of any business to come
before the special meeting other than the matters described above in the proxy
statement/prospectus. However, if any matters should properly come before the special meeting, it
is intended that the holders of the proxies will act in accordance with their best judgment.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INDEX TO CONSOLIDATED FINANCIAL STATEMENTS OF<BR>
ONEIDA FINANCIAL CORP.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Same as the offering prospectus&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;Financial Statements that are the same as the offering prospectus to appear here&#093;</B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->28<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PART II: INFORMATION NOT REQUIRED IN PROSPECTUS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;13. Other Expenses of Issuance and Distribution</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Amount (1)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registrant&#146;s Legal Fees and Expenses </TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">550,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registrant&#146;s Accounting Fees and Expenses </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conversion Agent and Data Processing Fees </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Marketing Agent Fees (1) </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,511,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Marketing Agent Expenses (Including Legal Fees and Expenses) </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appraisal Fees and Expenses </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Printing, Postage, Mailing and EDGAR Fees </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Filing Fees (OTS, Nasdaq, FINRA and SEC) </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transfer Fees and Expenses </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Business Plan Fees and Expenses </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">105,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Total </TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,892,100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Oneida Financial Corp. has retained Stifel, Nicolaus &#038; Company, Incorporated to assist in the
sale of common stock on a best efforts basis in the offerings. Fees are estimated at the
adjusted maximum of the offering range assuming 40% of the shares are sold in the subscription
and community offering and 60% of the shares are sold in the syndicated community offering.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;14. Indemnification of Directors and Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Articles 10 and 11 of the Articles of Incorporation of Oneida Financial Corp. (the
&#147;Corporation&#148;) set forth circumstances under which directors, officers, employees and agents of the
Corporation may be insured or indemnified against liability which they incur in their capacities as
such:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>ARTICLE 10. Indemnification, etc. of Directors and Officers.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>A.&nbsp;Indemnification. </B>The Corporation shall indemnify (1)&nbsp;its current and former directors and
officers, whether serving the Corporation or at its request any other entity, to the fullest extent
required or permitted by the MGCL now or hereafter in force, including the advancement of expenses
under the procedures and to the fullest extent permitted by law, and (2)&nbsp;other employees and agents
to such extent as shall be authorized by the Board of Directors and permitted by law; provided,
however, that, except as provided in Section&nbsp;B of this Article&nbsp;10 with respect to proceedings to
enforce rights to indemnification, the Corporation shall indemnify any such indemnitee in
connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding
(or part thereof) was authorized by the Board of Directors of the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>B.&nbsp;Procedure. </B>If a claim under Section&nbsp;A of this Article&nbsp;10 is not paid in full by the
Corporation within sixty (60)&nbsp;days after a written claim has been received by the Corporation,
except in the case of a claim for an advancement of expenses, in which case the applicable period
shall be twenty (20)&nbsp;days, the indemnitee may at any time thereafter bring suit against the
Corporation to recover the unpaid amount of the claim. If successful in whole or in part in any
such suit, or in a suit brought by the Corporation to recover an advancement of expenses pursuant
to the terms of an undertaking, the indemnitee shall also be entitled to be reimbursed the expense
of prosecuting or defending such suit. It shall be a defense to any action for advancement of
expenses that the Corporation has not received both (i)&nbsp;an undertaking as required by law to repay
such advances in the event it shall ultimately be determined that the standard of conduct has not
been met and (ii)&nbsp;a written affirmation by the indemnitee of his good faith belief that the
standard of conduct necessary for indemnification by the Corporation has been met. In (i)&nbsp;any suit
brought by the indemnitee to enforce a right to indemnification hereunder (but not in a suit
brought by the indemnitee to enforce a right to an advancement of expenses) it shall be a defense
that, and (ii)&nbsp;any suit by the Corporation to recover an advancement of expenses pursuant to the
terms of an undertaking the Corporation shall be entitled to recover such expenses upon a final
adjudication that, the indemnitee has not met the applicable standard
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">for indemnification set forth in the MGCL. Neither the failure of the Corporation (including
its Board of Directors, independent legal counsel, or its stockholders) to have made a
determination prior to the commencement of such suit that indemnification of the indemnitee is
proper in the circumstances because the indemnitee has met the applicable standard of conduct set
forth in the MGCL, nor an actual determination by the Corporation (including its Board of
Directors, independent legal counsel, or its stockholders) that the indemnitee has not met such
applicable standard of conduct, shall create a presumption that the indemnitee has not met the
applicable standard of conduct or, in the case of such a suit brought by the indemnitee, be a
defense to such suit. In any suit brought by the indemnitee to enforce a right to indemnification
or to an advancement of expenses hereunder, or by the Corporation to recover an advancement of
expenses pursuant to the terms of an undertaking, the burden of proving that the indemnitee is not
entitled to be indemnified, or to such advancement of expenses, under this Article&nbsp;10 or otherwise
shall be on the Corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>C.&nbsp;Non-Exclusivity. </B>The rights to indemnification and to the advancement of expenses
conferred in this Article&nbsp;10 shall not be exclusive of any other right that any Person may have or
hereafter acquire under any statute, these Articles, the Corporation&#146;s Bylaws, any agreement, any
vote of stockholders or the Board of Directors, or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>D.&nbsp;Insurance. </B>The Corporation may maintain insurance, at its expense, to insure itself and
any director, officer, employee or agent of the Corporation or another corporation, partnership,
joint venture, trust or other enterprise against any expense, liability or loss, whether or not the
Corporation would have the power to indemnify such Person against such expense, liability or loss
under the MGCL.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>E.&nbsp;Miscellaneous. </B>The Corporation shall not be liable for any payment under this Article&nbsp;10
in connection with a claim made by any indemnitee to the extent such indemnitee has otherwise
actually received payment under any insurance policy, agreement, or otherwise, of the amounts
otherwise indemnifiable hereunder. The rights to indemnification and to the advancement of
expenses conferred in Sections&nbsp;A and B of this Article&nbsp;10 shall be contract rights and such rights
shall continue as to an indemnitee who has ceased to be a director or officer and shall inure to
the benefit of the indemnitee&#146;s heirs, executors and administrators.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>F.&nbsp;Limitations Imposed by Federal Law</B>. Notwithstanding any other provision set forth in this
Article&nbsp;10, in no event shall any payments made by the Corporation pursuant to this Article&nbsp;10
exceed the amount permissible under applicable federal law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any repeal or modification of this Article&nbsp;10 shall not in any way diminish any rights to
indemnification or advancement of expenses of such director or officer or the obligations of the
Corporation arising hereunder with respect to events occurring, or claims made, while this
Article&nbsp;10 is in force.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>ARTICLE 11. Limitation of Liability. </B>An officer or director of the Corporation, as such,
shall not be liable to the Corporation or its stockholders for money damages, except (A)&nbsp;to the
extent that it is proved that the Person actually received an improper benefit or profit in money,
property or services, for the amount of the benefit or profit in money, property or services
actually received; or (B)&nbsp;to the extent that a judgment or other final adjudication adverse to the
Person is entered in a proceeding based on a finding in the proceeding that the Person&#146;s action, or
failure to act, was the result of active and deliberate dishonesty and was material to the cause of
action adjudicated in the proceeding; or (C)&nbsp;to the extent otherwise provided by the MGCL. If the
MGCL is amended to further eliminate or limit the personal liability of officers and directors,
then the liability of officers and directors of the Corporation shall be eliminated or limited to
the fullest extent permitted by the MGCL, as so amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any repeal or modification of the foregoing paragraph by the stockholders of the Corporation
shall not adversely affect any right or protection of a director or officer of the Corporation
existing at the time of such repeal or modification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;15. Recent Sales of Unregistered Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not Applicable.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;16. Exhibits and Financial Statement Schedules:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exhibits and financial statement schedules filed as part of this registration statement
are as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;List of Exhibits</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Engagement Letter between Oneida Financial Corp., Oneida Financial, MHC and Stifel, Nicolaus
&#038; Company, Incorporated</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Agency Agreement between Oneida Financial Corp., a Federal corporation, Oneida
Financial, MHC, Oneida Savings Bank, Oneida Financial Corp., a Maryland corporation, and
Stifel, Nicolaus &#038; Company, Incorporated</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Plan of Conversion and Reorganization</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Articles of Incorporation of Oneida Financial Corp.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bylaws of Oneida Financial Corp.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Common Stock Certificate of Oneida Financial Corp.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Luse Gorman Pomerenk &#038; Schick, P.C. regarding legality of securities being registered</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Federal Tax Opinion of Luse Gorman Pomerenk &#038; Schick, P.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement by and among Oneida Financial Corp., Oneida Savings Bank and Michael R.
Kallet<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement by and among Oneida Financial Corp., Oneida Savings Bank and Eric E.
Stickels<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement by and among Oneida Financial Corp., Oneida Savings Bank and Thomas H.
Dixon<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement between Bailey &#038; Haskell Associates, Inc. and John E. Haskell</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment to Employment Agreement between Bailey &#038; Haskell Associates, Inc. and John E.Haskell</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement between Benefit Consulting Group, Inc. and John F. Catanzarita</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oneida Financial Corp. Performance Based Compensation Plan</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oneida Financial Corp. 2006 Recognition and Retention Plan<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oneida Financial Corp. 2000 Stock Option Plan<SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment to the Oneida Financial Corp. 2000 Stock Option<SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oneida Financial Corp. 2000 Recognition and Retention Plan<SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">21
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subsidiaries of Registrant</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Luse Gorman Pomerenk &#038; Schick, P.C. (contained in Opinions included as Exhibits 5 and 8)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Crowe Horwath LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of RP Financial, LC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">24
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney (set forth on signature page)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appraisal Agreement between Oneida Savings Bank and RP Financial, LC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter of RP Financial, LC. with respect to Subscription Rights</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appraisal Report of RP Financial, LC.**</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Marketing Materials*</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stock Order and Certification Form*</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Business Plan Agreement with FinPro, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Engagement Letter between Oneida Financial Corp., Oneida Financial, MHC, Oneida Savings Bank
and Stifel, Nicolaus &#038; Company, Incorporated regarding records processing services</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter of RP Financial, LC. with respect to Liquidation Account</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>To be filed supplementally</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Supporting financial schedules filed in paper format only pursuant to Rule&nbsp;202 of Regulation
S-T. Available for inspection during business hours at the principal offices of the SEC in
Washington, D.C.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Exhibit&nbsp;10.1 to the Current Report on Form 8-K filed by Oneida Financial Corp. (File No. 000-25101)  with the
Securities and Exchange Commission on June&nbsp;10, 2009.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Exhibit&nbsp;10.2 to the Current Report on Form 8-K filed by Oneida Financial Corp. (File No. 000-25101) with the
Securities and Exchange Commission on June&nbsp;10, 2009.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-3<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Exhibit&nbsp;10.3 to the Current Report on Form 8-K filed by Oneida Financial Corp. (File No. 000-25101) with the
Securities and Exchange Commission on June&nbsp;10, 2009.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Appendix&nbsp;A of the Proxy Statement filed by Oneida Financial Corp. (File No. 000-25101) with the Securities and
Exchange Commission on March&nbsp;30, 2006.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Appendix&nbsp;A of the Proxy Statement filed by Oneida Financial Corp. (File No. 000-25101) with the Securities and
Exchange Commission on March&nbsp;23, 2000.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Exhibit&nbsp;10.2 to the Annual Report on Form 10-K filed by Oneida Financial Corp. (File No. 000-25101) with the
Securities and Exchange Commission on March&nbsp;31, 2006.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Appendix&nbsp;B of the Proxy Statement filed by Oneida Financial Corp. (File No. 000-25101) with the Securities and
Exchange Commission on March&nbsp;23, 2000.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Financial Statement Schedules</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No financial statement schedules are filed because the required information is not applicable
or is included in the consolidated financial statements or related notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;17. Undertakings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned Registrant hereby undertakes:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;To file, during any period in which it offers or sales are being made, a post-effective
amendment to this registration statement:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;To include any prospectus required by Section&nbsp;10(a)(3) of the
Securities Act of 1933;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;To reflect in the prospectus any facts or events arising after the effective
date of the registration statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the
information set forth in the registration statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered) and any deviation from
the low or high end of the estimated maximum offering range may be reflected in the form
of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate,
the changes in volume and price represent no more than a 20&nbsp;percent change in the
maximum aggregate offering price set forth in the &#147;Calculation of Registration Fee&#148;
table in the effective registration statement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;To include any material information with respect to the plan of distribution
not previously disclosed in the registration statement or any material change to such
information in the registration statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Act, and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with
the securities being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->II-4<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">court of appropriate jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of such issue.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;That, for the purpose of determining liability of the registrant under the Securities Act
of 1933 to any purchaser in the initial distribution of the securities:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned registrant undertakes that in a primary offering of securities of the
undersigned registrant pursuant to this registration statement, regardless of the underwriting
method used to sell the securities to the purchaser, if the securities are offered or sold to such
purchaser by means of any of the following communications, the undersigned registrant will be a
seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Any preliminary prospectus or prospectus of the undersigned registrant relating
to the offering required to be filed pursuant to Rule&nbsp;424 (&#167;230.424 of this chapter);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Any free writing prospectus relating to the offering prepared by or on behalf
of the undersigned registrant or used or referred to by the undersigned registrant;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;The portion of any other free writing prospectus relating to the offering
containing material information about the undersigned registrant or its securities
provided by or on behalf of the undersigned registrant; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;Any other communication that is an offer in the offering made by the
undersigned registrant to the purchaser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;That, for purposes of determining any liability under the Securities Act of 1933, the
information omitted from the form of prospectus filed as part of this registration statement in
reliance upon Rule&nbsp;430A and contained in a form of prospectus filed by the registrant pursuant to
Rule&nbsp;424(b)(1) or (4)&nbsp;or 497(h) under the Securities Act shall be deemed to be part of this
registration statement as of the time it was declared effective.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;That, for the purpose of determining any liability under the Securities Act of 1933, each
post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)&nbsp;The undersigned registrant hereby undertakes to provide to the underwriter at the closing
specified in the underwriting agreement, certificates in such denominations and registered in such
names as required by the underwriter to permit prompt delivery to each purchaser.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->II-5<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused
this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized in the City of Oneida, State of New York on March&nbsp;12, 2010.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>ONEIDA FINANCIAL CORP.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<tr><TD>&nbsp;</TD></tr>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Michael R. Kallet
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Michael R. Kallet&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">President and Chief Executive Officer<BR>
(Duly Authorized Representative)&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>POWER OF ATTORNEY</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We, the undersigned directors and officers of Oneida Financial Corp. (the &#147;Company&#148;) hereby
severally constitute and appoint Michael R. Kallet as our true and lawful attorney and agent, to do
any and all things in our names in the capacities indicated below which said Michael R. Kallet may
deem necessary or advisable to enable the Company to comply with the Securities Act of 1933, and
any rules, regulations and requirements of the Securities and Exchange Commission, in connection
with the registration statement on Form S-1 relating to the offering of the Company&#146;s common stock,
including specifically, but not limited to, power and authority to sign for us in our names in the
capacities indicated below the registration statement and any and all amendments (including
post-effective amendments) thereto; and we hereby approve, ratify and confirm all that said Michael
R. Kallet shall do or cause to be done by virtue thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Signatures</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Title</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Date</TD>
</TR>
<tr><td>&nbsp;</td></tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Michael R. Kallet
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Michael R. Kallet
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President, Chief
Executive Officer
and Director
(Principal
Executive Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;12, 2010</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Eric E. Stickels
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Eric E. Stickels
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice
President, Chief
Financial Officer
and Secretary
(Principal
Financial and
Accounting Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;12, 2010</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Patricia D. Caprio
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;12, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Patricia D. Caprio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Edward J. Clarke
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;12, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Edward J. Clarke</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ John E. Haskell
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;12, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John E. Haskell</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Rodney D. Kent
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;12, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Rodney D. Kent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Richard B. Myers
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;12, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Richard B. Myers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Nancy E. Ryan
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;12, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Nancy E. Ryan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Signatures</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Title</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Date</TD>
</TR>
<tr><td>&nbsp;</td></tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Ralph L. Stevens, M.D.
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;12, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ralph L. Stevens, M.D.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Gerald N. Volk
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;12, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Gerald N. Volk</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Frank O. White, Jr.
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;12, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Frank O. White, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ John A. Wight, M.D.
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;12, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John A. Wight, M.D.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>As filed with the Securities and Exchange Commission on March&nbsp;12, 2010</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Registration No.&nbsp;333-</B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 3pt"><DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBITS<BR>
TO<BR>
REGISTRATION STATEMENT<BR>
ON<BR>
FORM S-1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Oneida Financial Corp.<BR>
Oneida, New York</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>
</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Engagement Letter between Oneida Financial Corp., Oneida Financial, MHC and Stifel, Nicolaus
&#038; Company, Incorporated</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Agency Agreement between Oneida Financial Corp., a Federal corporation, Oneida
Financial, MHC, Oneida Savings Bank, Oneida Financial Corp., a Maryland corporation, and
Stifel, Nicolaus &#038; Company, Incorporated</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Plan of Conversion and Reorganization</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Articles of Incorporation of Oneida Financial Corp.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bylaws of Oneida Financial Corp.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Common Stock Certificate of Oneida Financial Corp.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Luse Gorman Pomerenk &#038; Schick, P.C. regarding legality of securities being registered</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Federal Tax Opinion of Luse Gorman Pomerenk &#038; Schick, P.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement by and among Oneida Financial Corp., Oneida Savings Bank and Michael R.
Kallet<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement by and among Oneida Financial Corp., Oneida Savings Bank and Eric E.
Stickels<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement by and among Oneida Financial Corp., Oneida Savings Bank and Thomas H.
Dixon<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement between Bailey &#038; Haskell Associates, Inc. and John E. Haskell</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment to Employment Agreement between Bailey &#038; Haskell Associates, Inc. and John E.
Haskell</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement between Benefit Consulting Group, Inc. and John F. Catanzarita</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oneida Financial Corp. Performance Based Compensation Plan</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oneida Financial Corp. 2006 Recognition and Retention Plan<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oneida Financial Corp. 2000 Stock Option Plan<SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment to Oneida Financial Corp. 2000 Stock Option Plan<SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oneida Financial Corp. 2000 Recognition and Retention Plan<SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">21
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subsidiaries of Registrant</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Luse Gorman Pomerenk &#038; Schick, P.C. (contained in Opinions included as Exhibits 5 and 8)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Crowe Horwath LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of RP Financial, LC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">24
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney (set forth on signature page)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appraisal Agreement between Oneida Savings Bank and RP Financial, LC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter of RP Financial, LC. with respect to Subscription Rights</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appraisal Report of RP Financial, LC.**</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Marketing Materials*</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stock Order and Certification Form*</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Business Plan Agreement with FinPro, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Engagement Letter between Oneida Financial Corp., Oneida Financial, MHC, Oneida Savings Bank
and Stifel, Nicolaus &#038; Company, Incorporated regarding records processing services</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter of RP Financial, LC. with respect to Liquidation Account</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>To be filed supplementally</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Supporting financial schedules filed in paper format only pursuant to Rule&nbsp;202 of Regulation
S-T. Available for inspection during business hours at the principal offices of the SEC in
Washington, D.C.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Exhibit&nbsp;10.1 to the Current Report on Form 8-K filed by Oneida Financial Corp. (File No.&nbsp;000-25101) with the
Securities and Exchange Commission on June&nbsp;10, 2009.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Exhibit&nbsp;10.2 to the Current Report on Form 8-K filed by Oneida Financial Corp. (File No.&nbsp;000-25101) with the
Securities and Exchange Commission on June&nbsp;10, 2009.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Exhibit&nbsp;10.3 to the Current Report on Form 8-K filed by Oneida Financial Corp. (File No.&nbsp;000-25101) with the
Securities and Exchange Commission on June&nbsp;10, 2009.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Appendix&nbsp;A of the Proxy Statement filed by Oneida Financial Corp. (File No.&nbsp;000-25101) with the Securities and
Exchange Commission on March&nbsp;30, 2006.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Appendix&nbsp;A of the Proxy Statement filed by Oneida Financial Corp. (File No.&nbsp;000-25101) with the Securities and
Exchange Commission on March&nbsp;23, 2000.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Exhibit&nbsp;10.2 to the Annual Report on Form 10-K filed by Oneida Financial Corp. (File No.&nbsp;000-25101) with the
Securities and Exchange Commission on March&nbsp;31, 2006.</TD>
</TR>

</TABLE>


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    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Appendix&nbsp;B of the Proxy Statement filed by Oneida Financial Corp. (File No.&nbsp;000-25101) with the Securities and
Exchange Commission on March&nbsp;23, 2000.</TD>
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sv1
Table of Contents
As filed with the Securities and Exchange Commission on March 12, 2010
Registration No. 333-
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-1
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
Oneida Financial Corp. and
Oneida Savings Bank 401(k) Savings Plan
(Exact Name of Registrant as Specified in Its Charter)
Maryland
6712
Being applied for
(State or Other Jurisdiction of
Incorporation or Organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
182 Main Street
Oneida, New York 13421
(315) 363-2000
(Address, Including Zip Code, and Telephone Number, Including Area Code, of
Registrant's Principal Executive Offices)
Mr. Michael R. Kallet
President and Chief Executive Officer
182 Main Street
Oneida, New York 13421
(315) 363-2000
(Address, Including Zip Code, and Telephone Number, Including Area Code, of
Agent for Service)
Copies to:
Eric Luse, Esq.
Robert I. Lipsher, Esq.
Luse Gorman Pomerenk & Schick, P.C.
5335 Wisconsin Avenue, N.W., Suite 780
Washington, D.C. 20015
(202) 274-2000
Approximate date of commencement of proposed sale to the public:
As soon as practicable after
this registration statement becomes effective.
If any of the securities being registered on this Form are to be offered on a delayed or continuous
basis pursuant to Rule 415 under the Securities Act of 1933, check the following box:
þ
If this Form is filed to register additional shares for an offering pursuant to Rule 462(b)
under the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering:
o
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act,
check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering:
o
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act,
check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering:
o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated
filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
(Check one):
Large accelerated filer
o
Accelerated filer
o
Non-accelerated filer
þ
(Do not check if a smaller reporting company)
Smaller reporting company
o
CALCULATION OF REGISTRATION FEE
Proposed maximum
Proposed maximum
Title of each class of
Amount to be
offering price per
aggregate offering
Amount of
securities to be registered
registered
share
price
registration fee
Common Stock, $0.01 par
value per share
9,435,892 shares
$8.00
$75,487,136(1)
$5,383
Participation Interests
1,883,832 interests
(2)
(1)
Estimated solely for the purpose of calculating the registration fee.
(2)
The securities of Oneida Financial Corp. to be purchased by the Oneida Savings Bank 401(k)
Plan are included in the amount shown for common stock. However, pursuant to Rule 457(h) of
the Securities Act of 1933, as amended, no separate fee is required for the participation
interests. Pursuant to such rule, the amount being registered has been calculated on the
basis of the number of shares of common stock that may be purchased with the current assets of
such plan.
The registrant hereby amends this registration statement on such date or dates as may be necessary
to delay its effective date until the registrant shall file a further amendment which specifically
states that this registration shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the registration statement shall become effective on such date
as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
Table of Contents
Prospectus Supplement
Interests in
ONEIDA SAVINGS BANK
401(k) SAVINGS PLAN
Offering of Participation Interests in up to 1,883,832 Shares of
ONEIDA FINANCIAL CORP.
Common Stock
In connection with the conversion of Oneida Financial, MHC from the mutual to the stock form
of organization, Oneida Financial Corp., a newly formed Maryland corporation ("Oneida
Financial-New"), is offering shares of common stock for sale. Accordingly, in connection with the
conversion, Oneida Financial-New is allowing participants in the Oneida Savings Bank 401(k) Savings
Plan (the "Plan") to invest all or a portion of their accounts in the common stock of Oneida
Financial-New. Based upon the value of the Plan assets at December 31, 2009, the trustee of the
Plan could purchase up to 1,883,832 shares of the common stock, at the purchase price of $8.00 per
share. This prospectus supplement relates to the initial election of Plan participants to direct
the trustee of the Plan to invest all or a portion of their Plan accounts in the Oneida
Financial-New Stock Fund at the time of the stock offering.
The prospectus of Oneida Financial-New dated
, 2010, accompanies this prospectus
supplement. It contains detailed information regarding the conversion and stock offering of Oneida
Financial-New and the financial condition, results of operations and business of Oneida
Financial-New and Oneida Savings Bank. This prospectus supplement provides information regarding
the Plan. You should read this prospectus supplement together with the prospectus and keep both for
future reference.
For a discussion of risks that you should consider, see "Risk Factors" beginning on page
of the prospectus.
The interests in the Plan and the offering of the common stock have not been approved or
disapproved by the Office of Thrift Supervision, the Securities and Exchange Commission or any
other federal or state agency. Any representation to the contrary is a criminal offense.
The securities offered in this prospectus supplement are not deposits or accounts and are not
insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Table of Contents
This prospectus supplement may be used only in connection with offers and sales by Oneida
Financial-New, in the stock offering, of participation interests in the common stock acquired by
the Plan. No one may use this prospectus supplement to reoffer or resell interests in shares of
common stock acquired through the Plan.
You should rely only on the information contained in this prospectus supplement and the
attached prospectus. Oneida Financial-New, Oneida Savings Bank and the Plan have not authorized
anyone to provide you with information that is different.
This prospectus supplement does not constitute an offer to sell or solicitation of an offer to
buy any securities in any jurisdiction to any person to whom it is unlawful to make an offer or
solicitation in that jurisdiction. Neither the delivery of this prospectus supplement and the
prospectus nor any sale of common stock or participation interests representing an ownership
interest in common stock shall under any circumstances imply that there has been no change in the
affairs of Oneida Financial-New, Oneida Savings Bank, or the Plan since the date of this prospectus
supplement, or that the information contained in this prospectus supplement or incorporated by
reference is correct as of any time after the date of this prospectus supplement.
The date of this prospectus supplement is
, 2010.
TABLE OF CONTENTS
THE OFFERING
1
Securities Offered
1
New Employer Stock Fund
1
Purchase Priorities
1
Allocation of Units
3
Composition of and Purpose of Stock Units
3
Value of Plan Assets
4
Election to Purchase Stock Units in the Offering
4
How to Order Stock in the Offering
4
Order Deadline
6
Irrevocability of Transfer Direction
6
Future Direction to Purchase Common Stock
6
Voting Rights of Common Stock
6
DESCRIPTION OF THE PLAN
8
Introduction
8
Eligibility and Participation
8
Contributions Under the Plan
9
Limitations on Contributions
9
Benefits Under the Plan
10
Withdrawals and Distributions from the Plan
10
Investment of Contributions and Account Balances
11
Performance History and Description of Funds
12
Administration of the Plan
16
Amendment and Termination
17
Merger, Consolidation or Transfer
17
Federal Income Tax Consequences
17
Additional Employee Retirement Income Security Act ("ERISA") Considerations
18
Securities and Exchange Commission Reporting and Short-Swing Profit Liability
19
Financial Information Regarding Plan Assets
19
LEGAL OPINION
20
Table of Contents
THE OFFERING
Securities Offered
Oneida Financial-New is offering stock units in the Oneida
Savings Bank 401(k) Savings Plan (the "Plan"). The stock
units represent indirect ownership of Oneida Financial-New
common stock through the Oneida Financial-New Stock Fund ("New
Employer Stock Fund") being established under the Plan in
connection with the stock offering. At the purchase price of
$8.00 per share, the Plan may acquire up to 1,883,832 shares
of Oneida Financial-New common stock in the stock offering,
based on the fair market value of the Plan's assets as of
December 31, 2009.
Only employees of Oneida Savings Bank may become participants
in the Plan and only participants may purchase stock units
through the New Employer Stock Fund. Your investment in stock
units in connection with the stock offering through the New
Employer Stock Fund is subject to the purchase priorities
listed below.
Information with regard to the Plan is contained in this
prospectus supplement and information with regard to the
financial condition, results of operations and business of
Oneida Financial Corp. and Oneida Savings Bank is contained in
the accompanying prospectus. The address of the principal
executive office of Oneida Financial Corp. and Oneida Savings
Bank is 182 Main Street, Oneida, New York 13421. Oneida
Savings Bank's telephone number at this address is (315)
363-2000.
New Employer Stock Fund
The New Employer Stock Fund is a new fund in the Plan
established to hold shares of Oneida Financial-New common
stock that are purchased in the stock offering. It is
different from the Oneida Financial Corp. Stock Fund (the "Old
Employer Stock Fund"), which presently holds shares of the
common stock of Oneida Financial Corp., the mid-tier holding
company of Oneida Savings Bank that will be eliminated in the
reorganization of Oneida Financial, MHC into Oneida
Financial-New, the newly formed stock holding company of
Oneida Savings Bank. At the close of the reorganization and
offering, shares of Oneida Financial Corp. held in the Old
Employer Stock Fund will be exchanged for shares of Oneida
Financial-New pursuant to the exchange ratio (discussed in
greater detail in the accompanying prospectus) and the Old
Employer Stock Fund will be merged into and become part of the
New Employer Stock Fund.
Purchase Priorities
All Plan participants are eligible to purchase stock units in
the New Employer Stock Fund. However, such directions are
subject to the purchase priorities in the Plan of Conversion
and Reorganization of Oneida Financial, MHC, which
contemplates a subscription offering
Table of Contents
and a community offering.
In the offering, the purchase priorities are as follows and
apply in case more shares are ordered than are available for
sale:
Subscription Offering:
(1) Depositors of Oneida Savings Bank with $50 or more on
deposit as of December 31, 2008, get first priority.
(2) Oneida Savings Bank's tax-qualified plans, including the
employee stock ownership plan, get second priority.
(3) Depositors of Oneida Savings Bank with $50 or more on
deposit as of March 31, 2010, get third priority.
(4) Depositors of Oneida Savings Bank as of
get
fourth priority.
Community Offering:
(5) Residents of the New York counties of Chenango, Cortland,
Herkimer, Lewis, Madison, Oneida, Onondaga, Oswego and Otsego
get fifth priority.
(6) Public stockholders of Oneida Financial Corp. as of
get sixth priority.
Syndicated Community Offering:
(7) Persons who do not qualify under any other priority listed
above get last priority.
If you fall into subscription offering categories
(1), (3) or (4), you have subscription rights to purchase
stock units representing an ownership interest in shares of
Oneida Financial-New common stock in the subscription offering
and you may use funds in the Plan to pay for the stock units.
You may also be able to purchase stock units representing an
ownership interest in shares of Oneida Financial-New common
stock in the subscription offering even though you are
ineligible to purchase through subscription offering
categories (1), (3) or (4), if Oneida Financial-New determines
to allow the Plan to purchase stock through subscription
offering category (2), reserved for its tax-qualified employee
plans. If the Plan is not included in category (2), then any
order for stock units placed by those ineligible to subscribe
in categories (1), (3), and (4) will be considered an order
placed in the community offering to members of the general
public. Subscription offering orders, however, will have
preference over orders placed in a community offering.
2
Table of Contents
Allocation of Units
The trustee of the New Employer Stock Fund will purchase
common stock in the stock offering in accordance with your
directions. No later than the end of the subscription and
community offering period, the amount that you elect to
transfer from your existing account balances for the purchase
of stock units in the New Employer Stock Fund will be removed
from your existing accounts and transferred to the Stock
Offering Option, a money market fund established to hold your
transferred assets that will be used by the trustee to
purchase Oneida Financial-New common stock, pending the
closing of the stock offering. Following the offering period,
we will determine whether all or any portion of your order
will be filled (if the offering is oversubscribed you may not
receive any or all of your order, depending on your purchase
priority, as described above, and whether the Plan will
purchase through category (2)). The amount that can be used
toward your order will be applied to the purchase of stock
units.
In the event the offering is oversubscribed,
i.e.
, there are
more orders for common stock of Oneida Financial-New than
shares available for sale in the offering, and the trustee is
unable to use the full amount allocated by you to purchase
common stock in the offering, the amount that cannot be
invested in common stock, and any interest earned on such
amount will be transferred from the Stock Offering Option and
reinvested in the existing investment funds of the Plan, in
accordance with your then existing investment election (in
proportion to your investment direction for future
contributions to the Plan). The prospectus describes the
allocation procedures in the event of an oversubscription. If
you choose not to direct the investment of your account
balances towards the purchase of any stock units in connection
with the stock offering, your account balances will remain in
the investment funds of the Plan as previously directed by
you.
Composition of and Purpose of Stock Units
The New Employer Stock Fund will invest in the common stock of
Oneida Financial-New. In addition, the New Employer Stock
Fund will maintain a cash component for liquidity purposes.
Liquidity is required in order to facilitate daily
transactions such as investment transfers or distributions
from the New Employer Stock Fund. For purchases in the
offering, there will be no cash component. A stock unit will
be valued at $8.00 and will consist of one share of Oneida
Financial-New. After the offering, stock units will consist
of a percentage interest in both the common stock and cash
held in the New Employer Stock Fund. Unit values (similar to
the stock's share price) and the number of units (similar to
number of shares) are used to communicate the dollar value of
a participant's investment in the New Employer Stock Fund.
Following the stock offering, each day
3
Table of Contents
the stock unit value of
the New Employer Stock Fund will be determined by dividing the
total market value of the fund at the end of the day by the
total number of units held in the fund by all participants as
of the previous day's end. The change in stock unit value
reflects the day's change in stock price, any cash dividends
accrued and the interest earned on the cash component of the
fund, less any investment management fees, and any new cash
that is added to the fund for liquidity purposes. The market
value and unit holdings of your account in the New Employer
Stock Fund will be reported to you on your quarterly
statements.
Value of Plan Assets
As of December 31, 2009, the market value of the assets of the
Plan was approximately $15,070,663, which is eligible to be
used to purchase common stock in the offering. The Plan
administrator informed each participant of the value of his or
her account balance under the Plan as of December 31, 2009.
Election to Purchase Stock Units in the Offering
In connection with the stock offering, the Plan will permit
you to direct the trustee to transfer all or part of your
account balance in the Plan to purchase stock units in the
stock offering. You do not have to elect to transfer amounts
that you invested in the Old Employer Stock Fund into the New
Employer Stock Fund. This exchange will take place
automatically. The shares of common stock of Oneida Financial
Corp. in the Old Employer Stock Fund will be exchanged for
Oneida Financial-New common stock pursuant to the exchange
ratio. The trustee of the Plan will subscribe for Oneida
Financial-New common stock offered for sale in connection with
the stock offering, in accordance with each participant's
direction. In order to purchase stock units through the Plan,
you must purchase stock units representing an ownership
interest in at least 25 shares of common stock in the offering
through the Plan. The prospectus describes maximum purchase
limits for investors in the stock offering. The trustee will
pay $8.00 per share in the offering, which will be the same
price paid by all other persons who purchase shares in the
subscription and community offerings.
How to Order Stock in the Offering
You can elect to transfer all or a portion of your account
balance in the Plan to the Stock Offering Option, which will
be used by the Plan trustee to purchase shares of common stock
that will be transferred to the New Employer Stock Fund in
connection with the stock offering. This is done by following
the procedures described below. Please note the following
stipulations concerning this election:
• You can direct all or a portion of your current
account to the Stock Offering Option in increments of $8.00.
• Your election is subject to a minimum purchase of 25
stock units, which equals $200.
4
Table of Contents
• Your election, plus any order you placed outside the
Plan, are together subject to a maximum purchase of 37,500
shares, which equals $300,000.
• The election period opens
, 2010 and
closes
p.m., Eastern Time, on
, 2010.
• Your election to purchase stock units in the offering
through the Plan will be accepted by Benefit Plans
Administrative Services, Inc. ("BPAS"), the recordkeeper of
the Plan. After your election is accepted by BPAS, the
portion of your account balance transferred to the Stock
Offering Option will be rounded down to the closest dollar
amount divided by $8.00, and will be used by the trustee to
purchase shares of common stock in the offering. The
difference will remain in the Stock Offering Option until the
formal closing of the offering has been completed. At that
time, the common stock of Oneida Financial-New purchased by
the trustee based on your election will be transferred to the
New Employer Stock Fund and any remaining funds will be
transferred out of the Stock Offering Option for investment in
other funds under the Plan, based on your investment elections
currently on file for future contributions.
• You will continue to have the ability to transfer
amounts not transferred to the Stock Offering Option among all
the other investment funds on a daily basis during the
offering period.
• The amount transferred to the Stock Offering Option
needs to be segregated and held until the offering closes.
Therefore, this money is not available for distributions,
loans, or withdrawals until the completion of the stock
offering.
Follow these steps to make your election to use all or a part
of your account balance in the Plan to purchase stock units in
the stock offering.
• Go to
www.bpas.com
and log into your Plan account.
[Procedures to purchase online to come]
After you have completed your online election, you will also
need to complete the Stock Information Form and return it in
the self-addressed envelope to be received by
Holly Kann, Vice
President —
5
Table of Contents
Administration, at Oneida Savings Bank, 182 Main
Street, Oneida, New York 13421. It is critical that this
Stock Information Form be completed and returned.
Order Deadline
You must make your election online at www.bpas.com and return
your Stock Information Form to
Holly Kann, Vice President —
Administration, at Oneida Savings Bank, 182 Main
Street, Oneida, New York, 13421, by no later than       p.m.
Eastern Standard Time on
, 2010. You may return
your Stock Information Form by U.S. mail, interoffice mail or
by faxing it to (315)-366-3809, so long as it is returned by
the time specified.
Irrevocability of Transfer Direction
Once you make an election to transfer amounts in your Plan
account to the Stock Offering Option to be used by the trustee
to purchase common stock in connection with the stock
offering, you may not change your election.
Your election is
irrevocable until after the stock offering has concluded. You
will, however, continue to have the ability to transfer
amounts not directed towards the purchase of stock units among
all of the other investment funds on a daily basis. You may
also continue to transfer funds into and out of the Old
Employer Stock Fund which will purchase shares of Oneida
Financial Corp. common stock in the open market (but not in
the offering) or sell the shares in your account until the
closing of the offering.
Future Direction to Purchase Common Stock
You will be able to purchase stock units representing an
ownership interest in Oneida Financial-New common stock after
the offering through your investment in the New Employer Stock
Fund. You may direct that your future contributions or your
account balance in the Plan be transferred to the New Employer
Stock Fund. After the offering, to the extent that shares are
available, the trustee of the Plan will acquire common stock
at your election in open market transactions at the prevailing
price, which may be less than or more than $8.00 per share.
You may change your investment allocation on a daily basis.
Special restrictions may apply to transfers directed to and
from the New Employer Stock Fund by the participants who are
subject to the provisions of Section 16(b) of the Securities
Exchange Act of 1934, as amended, relating to the purchase and
sale of securities by officers, directors and principal
shareholders of Oneida Financial-New.
Voting Rights of Common Stock
The Plan provides that you may direct the trustee as to how to
vote any shares of Oneida Financial-New common stock held by
the New Employer Stock Fund, and the interest in such shares
that is credited to your account. If the trustee does not
receive your voting instructions, the Plan administrator will
exercise these rights as it determines in its discretion and
will direct the trustee accordingly.
6
Table of Contents
All voting instructions
will be kept confidential.
7
Table of Contents
DESCRIPTION OF THE PLAN
Introduction
Oneida Savings Bank originally adopted the Oneida Savings Bank 401(k) Savings Plan effective
as of January 1, 1973, as subsequently amended and restated effective January 1, 2008, and further
restated effective January 1, 2010 (the "Plan"). The Plan is a tax-qualified plan with a cash or
deferred compensation feature established in accordance with the requirements under Section 401(a)
and Section 401(k) of the Internal Revenue Code of 1986, as amended (the "Code").
Oneida Savings Bank intends that the Plan, in operation, will comply with the requirements
under Section 401(a) and Section 401(k) of the Code. Oneida Savings Bank will adopt any amendments
to the Plan that may be necessary to ensure the continuing qualified status of the Plan under the
Code and applicable Treasury Regulations.
Employee Retirement Income Security Act ("ERISA")
. The Plan is an "individual account plan"
other than a "money purchase pension plan" within the meaning of ERISA. As such, the Plan is
subject to all of the provisions of Title I (Protection of Employee Benefit Rights) and Title II
(Amendments to the Code Relating to Retirement Plans) of ERISA, except to the funding requirements
contained in Part 3 of Title I of ERISA which by their terms do not apply to an individual account
plan (other than a money purchase plan). The Plan is not subject to Title IV (Plan Termination
Insurance) of ERISA. The funding requirements contained in Title IV of ERISA are not applicable to
participants or beneficiaries under the Plan.
Reference to Full Text of Plan.
The following portions of this prospectus supplement summarize
certain provisions of the Plan. They are not complete and are qualified in their entirety by the
full text of the Plan. Copies of the Plan are available to all employees by filing a request with
the Plan administrator at
Oneida Savings Bank, 182 Main Street, Oneida, New York 13421
.
You are urged to read carefully the full text of the Plan.
Eligibility and Participation
To participate in the Plan and receive an employer contribution, you must complete one year of
service with Oneida Savings Bank in which you have 1,000 hours of service. If you complete three
months of service, you will be eligible to make "salary deferrals" to the Plan (as discussed in
more detail below). Once you have met the eligibility requirements, you will begin participation
on the first day of the month next following the date on which you meet the eligibility
requirements. Non-resident aliens, leased employees, and employees who are covered by a collective
bargaining agreement are not eligible to participate in the Plan. The Plan year is January 1 to
December 31 (the "Plan Year").
As of December 31, 2009, there were approximately 355 employees and former employees eligible
to participate in the Plan and 250 employees participating by making elective deferral
contributions.
8
Table of Contents
Contributions Under the Plan
Salary Deferrals
. You are permitted to defer on a pre-tax basis up to 100% of your
compensation (expressed in terms of whole percentages), subject to certain restrictions imposed by
the Code, and to have that amount contributed to the Plan on your behalf. For purposes of the
Plan, "compensation" means your total compensation received from Oneida Savings Bank, including
your salary contributions to any of Oneida Savings Bank's plans that are not taxable. In 2010, the
annual compensation of each participant taken into account under the Plan is limited to $245,000.
(Limits established by the Internal Revenue Service are subject to increase pursuant to an annual
cost-of-living adjustment, as permitted by the Code). You may elect to modify the amount
contributed to the Plan by filing a new elective deferral agreement with the Plan administrator at
any time prior to the first day of the next month in which you want the modification to take
effect.
Employer Matching Contributions
. Oneida Savings Bank will make matching contributions to the
Plan in an amount equal to 100% of your salary deferrals that are not in excess of 4% of your
compensation, plus 50% of your salary deferrals that exceed 4% of your compensation but which do
not exceed 6% of your compensation.
Employer Profit Sharing Contributions
. Oneida Savings Bank may make discretionary profit
sharing contributions to the Plan.
Rollover Contributions
. You may make rollover contributions to the Plan.
Limitations on Contributions
Limitations on Employee Salary Deferrals
. For the Plan Year beginning January 1, 2010, the
amount of your before-tax contributions may not exceed $16,500 per calendar year. In addition, if
you are 50 years old in 2010, you will be able to make a "catch-up" contribution of up to $5,500 in
addition to the $16,500 limit. The "catch-up" contribution limit may be adjusted periodically by
law, based on changes in the cost of living. Contributions in excess of these limits, as
applicable to you, are known as excess deferrals. If you defer amounts in excess of these
limitations, as applicable to you, your gross income for federal income tax purposes will include
the excess in the year of the deferral. In addition, unless the excess deferral is distributed
before April 15 of the following year, it will be taxed again in the year distributed. Income on
the excess deferral distributed by April 15 of the immediately succeeding year will be treated, for
federal income tax purposes, as earned and received by you in the tax year in which the
contribution is made.
Contribution Limit
. Generally, the law imposes a maximum limit on the amount of contributions
you may receive under the Plan. This limit applies to all contributions to the Plan, including
your salary deferrals and all other employer contributions made on your behalf during the year,
excluding earnings and any transfers/rollovers. For the Plan Year beginning January 1, 2010, this
total cannot exceed the lesser of $49,000 or 100% of your annual base compensation.
9
Table of Contents
Benefits Under the Plan
Vesting
. At all times, you have a fully vested, nonforfeitable interest in the salary
deferrals you have made, the employer matching contributions, and their investment earnings.
Employer discretionary contributions are subject to a 5-year graded vesting schedule in which such
amounts vest in 20% increments after completion of one year of service until a participant is 100%
vested upon completion of 5 years of service. Prior services with predecessor organizations, as
identified in the Plan, will be recognized for purposes of vesting.
Withdrawals and Distributions from the Plan
Applicable federal law requires the Plan to impose substantial restrictions on the right of a
Plan participant to withdraw amounts held for his or her benefit under the Plan prior to the
participant's termination of employment with the employer.
Withdrawal upon Retirement
. You may withdraw from your account upon attainment of your Normal
Retirement Date (the later of age 65 or the date 5 years after you first become eligible to
participate in the Plan) or Early Retirement Date (age 55 and completion of 5 years of service).
However, if you continue working past your Normal Retirement Date or Early Retirement Date, the
distribution of your benefits will be postponed until you actually retire, unless you elect to
receive an in-service distribution (as described below). You may also leave your account in the
Plan and defer commencement of receipt of your vested balance until April 1 of the calendar year
following the calendar year in which you attain age 70
1
/
2
, except that distributions to a
participant (other than a 5% owner) with respect to benefits accrued after the later of the
adoption of the Plan or the effective date of the amendment of the Plan must commence no later than
the April 1 of the calendar year following the later of the calendar year in which the participant
attains age 70
1
/
2
or the calendar year in which the participant retires.
Withdrawal upon Termination
. You may request a distribution from your account if your
termination of employment occurs before your Normal Retirement Date or Early Retirement Date.
Withdrawal upon Disability
. If you are disabled in accordance with the definition of
disability under the Plan, you will be entitled to the same withdrawal rights as if you had
terminated your employment.
Withdrawal upon Death
. If you die while you are a participant in the Plan, the value of your
entire account will be payable to your beneficiary. You may elect to have your beneficiary receive
the distribution in either a lump sum or in installment payments over any period that does not
exceed the life expectancy of your beneficiary.
In-Service Distribution
. While employed, you are eligible to receive an in-service
distribution from your account upon the earlier of your attainment of age 59
1
/
2
or the Normal
Retirement Date. However, you will be eligible to request a distribution of your rollover
contributions at any time.
10
Table of Contents
Hardship
. In the event you incur a financial hardship, you may request an in-service
withdrawal of a portion of your Plan account attributable to your salary deferrals and rollover
contributions.
Loan
. You may request a loan from your Plan account pursuant to the procedures established in
the Plan.
Form of Distribution
. You will have the right to elect to be paid your benefit under the Plan
in either a lump sum or various forms of installments or annuities offered under the Plan.
Investment of Contributions and Account Balances
All amounts credited to your account under the Plan are held in the Plan trust which is
administered by the trustee appointed by the Oneida Savings Bank Board of Directors.
Prior to the effective date of the offering, you are provided the opportunity to direct the
investment of your account into any of the following funds:
1.
Lazard Emerging Markets Equity Open
2.
Harbor International Instl
3.
American Funds EuroPacific Gr R5
4.
Janus Overseas J
5.
ING Global Real Estate A Load Waived
6.
TCW Total Return Bond I
7.
American Funds Fundamental Invs R5
8.
American Funds Growth Fund of Amer R
9.
Pioneer Cullen Value A
10.
Sentinel Mid Cap Value Instl
11.
BlackRock US Opportunities Inv A
12.
Perkins Mid Cap Value A
13.
Manning & Napier Pro-Blend Mod Term S
14.
Manning & Napier Target Income K
15.
Vanguard Short-Term Treasury
16.
Royce Value Svc
17.
Vanguard Small Cap Growth Index Instl
18.
Van Kampen Small Cap Value A LW
19.
Manning & Napier Target 2010 K
20.
Manning & Napier Target 2020 K
21.
Manning & Napier Target 2030 K
22.
Manning & Napier Target 2040 K
23.
Manning & Napier Retirement Target Income Collective Investment Trust Fund
24.
Templeton Global Bond A
25.
American Funds Capital World G/I R5
26.
SEI Stable Asset Fund (A)
27.
Oneida Financial Corp. Stock Fund (Old Employer Stock Fund)
11
Table of Contents
Performance History and Description of Funds
The following provides performance data with respect to the investment funds available under
the Plan:
Performance as of December 31, 2009
Total Return
Total Return
Total Return
Total Return
Annualized
Annualized
Total Return
Fund
YTD
1 Yr
3 Yrs
5 Yrs
Annualized 10 Yrs
Lazard Emerging Markets Equity Open
69.14
%
69.14
%
5.23
%
16.43
%
11.22
%
Harbor International Instl
38.57
%
38.57
%
-1.08
%
9.19
%
7.26
%
American Funds EuroPacific Gr R5
39.55
%
39.55
%
-0.27
%
8.03
%
3.92
%
Janus Overseas J
78.12
%
78.12
%
2.45
%
15.95
%
4.94
%
ING Global Real Estate A Load Waived
33.37
%
33.37
%
10.11
%
3.08
%
n/a
TCW Total Return Bond I
19.88
%
19.88
%
8.91
%
7.05
%
7.72
%
American Funds Fundamental Invs R5
33.75
%
33.75
%
-2.73
%
4.25
%
3.81
%
American Funds Growth Fund of Amer R
34.91
%
34.91
%
-2.84
%
3.17
%
2.56
%
Pioneer Cullen Value A
19.01
%
19.01
%
-4.68
%
2.75
%
n/a
Sentinel Mid Cap Value Instl
35.85
%
35.85
%
-4.74
%
2.80
%
n/a
BlackRock US Opportunities Inv A
35.61
%
35.61
%
2.01
%
7.46
%
1.77
%
Perkins Mid Cap Value A
30.37
%
30.37
%
0.52
%
5.21
%
10.91
%
Manning & Napier Pro-Blend Mod Term S
18.91
%
18.91
%
1.04
%
4.59
%
6.00
%
Manning & Napier Target Income K
10.48
%
10.48
%
n/a
n/a
n/a
Vanguard Short-Term Treasury
1.44
%
1.44
%
5.30
%
4.28
%
4.92
%
Royce Value Svc
44.71
%
44.71
%
-0.40
%
6.22
%
n/a
Vanguard Small Cap Growth Index Instl
42.13
%
42.13
%
-2.13
%
2.72
%
5.00
%
Van Kampen Small Cap Value A LW
29.68
%
29.68
%
-1.80
%
5.03
%
9.64
%
Manning & Napier Target 2010 K
18.80
%
18.80
%
n/a
n/a
n/a
Manning & Napier Target 2020 K
24.21
%
24.21
%
n/a
n/a
n/a
Manning & Napier Target 2030 K
29.92
%
29.92
%
n/a
n/a
n/a
Manning & Napier Target 2040 K
35.10
%
35.10
%
n/a
n/a
n/a
Manning & Napier Retirement Target -
Income Collective
Investment Trust Fund
11.39
%
11.39
%
4.90
%
6.05
%
n/a
Templeton Global Bond A
18.86
%
18.86
%
11.88
%
9.03
%
10.66
%
American Funds Capital World G/I R5
32.65
%
32.65
%
-1.17
%
6.36
%
7.36
%
SEI Stable Asset Fund (A)
1.36
%
1.36
%
3.07
%
3.56
%
4.39
%
Old Employer Stock Fund
The following is a description of each of the Plan's investment funds:
Lazard Emerging Markets Equity Open.
The fund seeks long-term capital appreciation. The fund
normally invests primarily in equity securities of companies whose principal business activities
are located in emerging market countries but focuses on companies in Latin America, the Pacific
Basin and Eastern Europe.
Harbor International Instl.
The fund seeks long-term total return, principally from growth of
capital. The fund invests primarily in common and preferred stocks of foreign companies that have
market capitalizations in excess of $1 billion, including those located in emerging market. The
fund invests in a minimum of ten countries throughout the world.
American Funds EuroPacific Gr R5.
The fund seeks long-term growth of capital. The fund normally
invests primarily in growth-oriented, equity-type securities of issuers located in Europe and the
Pacific Basin. The fund may also hold cash, money market instruments and fixed-income securities.
12
Table of Contents
Janus Overseas J.
The fund seeks long-term growth of capital. The fund normally invests
primarily in securities of issuers from countries outside of the United States. The fund normally
invests in securities of issuers from several different countries. The fund may invest in foreign
equity and debt securities and may have significant exposure to emerging markets.
ING Global Real Estated A Load Waived.
The fund seeks to provide investors with high total return.
The fund normally invests primarily in a portfolio of equity securities of companies in a number
of different countries, including the U.S., that are principally engaged in the real estate
industry. The fund may invest in common stocks of large, mid- and small-sized companies, including
REITs.
TCW Total Return Bond I.
The fund seeks to maximize current income and achieve above average total
return consistent with prudent investment management over a full market cycle. The fund invests
primarily in fixed income securities.
American Funds Fundamental Invs R5.
The fund seeks long-term growth of capital and income. The
fund invests primarily in common stocks or securities convertible into common stocks. The fund may
also invest significantly in non-U.S. securities.
American Funds Growth Fund of Amer R.
The fund seeks growth of capital. The fund invests
primarily in attractively valued common stocks of companies that appear to offer superior
opportunities for growth of capital.
Pioneer Cullen Value A.
The fund seeks capital appreciation; current income is a secondary
objective. The fund invests primarily in equity securities believed to be undervalued. The fund
may invest a significant portion of its assets in equity securities of medium- and
large-capitalization companies. The fund may invest in securities of issuers that are not U.S. or
Canadian issuers.
Sentinel Mid Cap Value Instl.
The fund seeks long-term capital appreciation. The fund normally
invests primarily in stocks of mid-capitalization U.S. companies that are believed to have a solid
risk/return profile and can be purchased at attractive prices, with the potential to generate
superior relative long-term investment returns.
BlackRock US Opportunities Inv A.
The fund seeks long-term capital appreciation. The fund
normally invests primarily in equity securities issued by U.S. emerging capitalization companies
with relatively attractive earnings growth potential and valuation.
Perkins Mid Cap Value A.
The fund seeks capital appreciation. The fund primarily invests in the
common stocks of mid-sized companies whose stock prices are believed to be undervalued. The fund
normally invests primarily in equity securities of companies whose market capitalization falls
within the capitalization range of the Russell Midcap Value Index.
Manning & Napier Pro-Blend Mod Term S.
The fund seeks long-term growth of capital and preservation
of capital. The fund primarily invests in a combination of stocks and intermediate to long-term,
fixed-income securities with maturities of 5 to 10 years. The fund may also invest in American
Depository Receipts.
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Table of Contents
Manning & Napier Target Income K.
The funds seeks current income and, secondarily, capital
appreciation consistent with its asset allocation strategy. The fund invests in an underlying
fund, which invests primarily in fixed income securities of the U.S. government, although it may
also invest in mortgage-backed securities, corporate bonds and in common stocks of U.S. issuers.
Vanguard Short-Term Treasury.
The fund seeks to provide current income while maintaining limited
price volatility. The fund primarily invests in U.S. Treasury securities, including bills, bonds
and notes issued by the U.S. Treasury. The fund is expected to maintain a dollar-weighted average
maturity of one to four years.
Royce Value Svc.
The fund seeks long-term growth of capital. The fund invests primarily in a
diversified portfolio of equity securities issued by small- and mid-cap companies believed to
trading significantly below their estimated current worth.
Vanguard Small Cap Growth Index Instl.
The fund seeks to track the performance of the MSCI US
Small Cap Growth Index, a broadly diversified index of growth stocks of smaller U.S. companies.
The fund invests all, or substantially all, of its assets in the stocks that make up the index,
holding each stock in approximately the same proportion as its weighting in the index.
Van Kampen Small Cap Value A LW.
The fund's investment objective is to seek capital appreciation.
The fund normally invests primarily in a portfolio of equity securities of small cap companies
believed to be undervalued.
Manning & Napier Retirement Target 2010 Collective Investment Trust Fund.
The Manning & Napier
Retirement Target 2010 Collective Investment Trust Fund is invested in the Manning & Napier
Pro-Mix
®
Moderate Term Collective Investment Trust Fund, a moderately conservative mix
of individual stock, bond, and cash securities that seeks a more stable rate of growth than that of
a broad investment in the stock market. The fund manager diversifies the underlying fund primarily
among intermediate to long-term fixed income securities and various stocks. Stocks will typically
be a minority in the fund unless the fund manager sees the stock market as particularly attractive.
Manning & Napier Retirement Target 2020 Collective Investment Trust Fund.
The Manning & Napier
Retirement Target 2020 Collective Investment Trust Fund is invested in the Manning & Napier
Pro-Mix
®
Extended Term Collective Investment Trust Fund, a growth-oriented mix of
individual stock, bond, and cash securities that seeks to earn a good portion of the long-term
growth of the stock market without full market risk. The fund manager diversifies the underlying
fund primarily among various stock investments as long as stock market valuations are favorable
versus long-term bond yields. A substantial portion of the fund may be invested in long-term,
fixed income securities.
Manning & Napier Retirement Target 2030 Collective Investment Trust Fund.
The Manning & Napier
Retirement Target 2030 Collective Investment Trust Fund is invested 50% in the Manning & Napier
Pro-Mix
®
Maximum Collective Investment Trust Fund and 50% in the Manning & Napier
Pro-Mix
®
Extended Term Collective Investment Trust Fund to create a moderately
aggressive, growth-oriented mix of individual stock, bond, and cash securities that
14
Table of Contents
seeks to earn the long-term growth typically associated with the stock market over time with
slightly less risk. The resulting portfolio is diversified primarily among various stock
investments in both domestic and foreign markets, typically with a portion of the portfolio
invested in fixed income securities.
Manning & Napier Retirement Target 2040 Collective Investment Trust Fund.
The Manning & Napier
Retirement Target 2040 Collective Investment Trust Fund is invested in the Manning & Napier
Pro-Mix
®
Maximum Term Collective Investment Trust Fund, an aggressive, growth-oriented
mix of individual stock, bond, and cash securities that seeks to earn the high returns typically
associated with the stock market over time. The fund manager diversifies the underlying fund
primarily among various stock investments in both domestic and foreign markets, typically investing
only a minor portion of the fund in fixed income securities.
Manning & Napier Retirement Target Income Collective Investment Trust Fund
The Manning & Napier
Retirement Target Income Collective Investment Trust Fund is invested in the Manning & Napier
Pro-Mix
®
Conservative Term Collective Investment Trust Fund, a conservative mix of
individual stock, bond, and cash securities that seeks protection of capital while generating
income. The fund manager diversifies the underlying fund primarily among fixed income securities,
typically focusing on short to intermediate term maturities. A minor position in stocks adds
potential for modest growth when equity market risk is low. However, this approach clearly favors
stability over growth.
Templeton Global Bond A.
The fund seeks current income with capital appreciation and growth of
income. The fund invests predominantly in bonds issued by companies, governments and government
agencies located around the world. Although the fund focuses on bonds rated investment-grade, it
may invest a portion of its assets in bonds that are rated below investment-grade.
American Funds Capital World G/I R5.
The fund seeks long-term growth of capital while providing
current income. The fund invests, on a global basis, in common stocks that are denominated in U.S.
dollars or other currencies. The fund may also hold cash or money market instruments.
SEI Stable Asset Fund (A).
The SEI Stable Asset Fund seeks to provide high current income with the
preservation of capital. The fund will diversify investments among guaranteed investment contracts
(GICs) issued by major life insurance companies and money center banks, as well as synthetic GICs.
Synthetic GICs are used to improve the credit quality of a GIC portfolio and reduce the insurance
company exposure. The fund's average maturity will normally be maintained between two and four
years. The fund's cash will be invested in short-term government issues.
Oneida Financial Corp. Stock Fund (Old Employer Stock Fund).
The Oneida Financial Corp. Stock Fund
(i.e., the Old Employer Stock Fund) consists primarily of investments in common stock of Oneida
Financial Corp. Oneida Financial Corp. is a federally chartered majority-owned subsidiary of
Oneida Financial, MHC, a mutual holding company. Investments in the Old Employer Stock Fund
involves special risks common to investments in the shares of common stock of Oneida Financial
Corp.
15
Table of Contents
Following the offering, Oneida Financial Corp., a federal corporation, will cease to exist, but
will be succeeded by a new Maryland corporation with the name Oneida Financial Corp. ("Oneida
Financial-New"), which will be 100% owned by its public shareholders. Shares of Oneida Financial
Corp. which were held in the Old Employer Stock Fund prior to the conversion and offering will be
converted into new shares of common stock of Oneida Financial-New, in accordance with the exchange
ratio. As soon as practicable after the closing of the stock offering, the Old Employer Stock Fund
will be merged into the New Employer Stock Fund.
Oneida Financial-New Stock Fund (New Employer Stock Fund).
In connection with the stock offering,
you may, in the manner described earlier, direct the trustee to invest all or a portion of your
Plan account in the Oneida Financial-New Stock Fund (i.e., the New Employer Stock Fund).
Subsequent to the stock offering, you may elect to invest all or a portion of your contributions in
the New Employer Stock Fund; you may also elect to transfer into the New Employer Stock Fund all or
a portion of your accounts currently invested in other funds under the Plan. After the offering,
the trustee will, to the extent practicable, use amounts held by it in the New Employer Stock Fund,
including cash dividends paid on common stock held in the New Employer Stock Fund, to purchase
shares of common stock of Oneida Financial-New, taking into consideration cash amounts needed to
maintain liquidity in the account. It is expected that all purchases will be made at prevailing
market prices. Performance of the New Employer Stock Fund depends on a number of factors,
including the financial condition and profitability of Oneida Financial-New and Oneida Savings Bank
and market conditions for shares of Oneida Financial-New common stock generally. Investments in
the New Employer Stock Fund involves special risks common to investments in the shares of common
stock of Oneida Financial-New.
An investment in any of the funds listed above is not a deposit of a bank and
is not insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency. As with any mutual fund investment, there is
always a risk that you may lose money on your investment in any of the funds
listed above.
Administration of the Plan
The Trustee and Custodian
. The trustee of the Plan is Hand Benefit & Trust Company. Hand
Benefit & Trust Company serves as trustee for all the investments funds under the Plan, including
during the offering period for Oneida Financial-New common stock. Following the offering period,
Hand Benefit & Trust Company will also serve as the trustee of the New Employer Stock Fund.
Plan Administrator
.
Pursuant to the terms of the Plan, the Plan is administered by the Plan
administrator, Oneida Savings Bank. The address of the Plan administrator is 182 Main St., Oneida,
New York 13421, telephone number (315) 363-3701. The Plan administrator is responsible for the
administration of the Plan, interpretation of the provisions of the Plan, prescribing procedures
for filing applications for benefits, preparation and distribution of information explaining the
Plan, maintenance of Plan records, books of account and all other data necessary for the proper
administration of the Plan, preparation and filing of all returns and reports relating to the Plan
which are required to be filed with the U.S. Department of Labor and
16
Table of Contents
the Internal Revenue Service, and for all disclosures required to be made to participants,
beneficiaries and others under Sections 104 and 105 of ERISA.
Reports to Plan Participants
. The Plan administrator will furnish you a statement at least
quarterly showing the balance in your account as of the end of that period, the amount of
contributions allocated to your account for that period, and any adjustments to your account to
reflect earnings or losses (if any).
Amendment and Termination
It is the intention of Oneida Savings Bank to continue the Plan indefinitely. Nevertheless,
Oneida Savings Bank may terminate the Plan at any time. If the Plan is terminated in whole or in
part, then regardless of other provisions in the Plan, you will have a fully vested interest in
your accounts. Oneida Savings Bank reserves the right to make any amendment or amendments to the
Plan which do not cause any part of the trust to be used for, or diverted to, any purpose other
than the exclusive benefit of participants or their beneficiaries; provided, however, that Oneida
Savings Bank may make any amendment it determines necessary or desirable, with or without
retroactive effect, to comply with ERISA.
Merger, Consolidation or Transfer
In the event of the merger or consolidation of the Plan with another plan, or the transfer of
the trust assets to another plan, the Plan requires that you would, if either the Plan or the other
plan terminates, receive a benefit immediately after the merger, consolidation or transfer which is
equal to or greater than the benefit you would have been entitled to receive immediately before the
merger, consolidation or transfer, if the Plan had then terminated.
Federal Income Tax Consequences
The following is a brief summary of the material federal income tax aspects of the Plan. You
should not rely on this summary as a complete or definitive description of the material federal
income tax consequences relating to the Plan. Statutory provisions change, as do their
interpretations, and their application may vary in individual circumstances. Finally, the
consequences under applicable state and local income tax laws may not be the same as under the
federal income tax laws. Please consult your tax advisor with respect to any distribution from the
Plan and transactions involving the Plan.
As a "tax-qualified retirement plan," the Plan is afforded special tax treatment under the
Code, including:
(1) the sponsoring employer is allowed an immediate tax deduction for the amount contributed
to the Plan each year;
(2) participants pay no current income tax on amounts contributed by the employer on their
behalf; and
(3) earnings of the Plan are tax-deferred, thereby permitting the tax-free accumulation of
income and gains on investments.
17
Table of Contents
Oneida Savings Bank will administer the Plan to comply with the requirements of the Code as of
the applicable effective date of any change in the law.
Lump-Sum Distribution
. A distribution from the Plan to a participant or the beneficiary of a
participant will qualify as a lump-sum distribution if it is made within one taxable year, on
account of the participant's death, disability or separation from service, or after the participant
attains age 59
1
/
2
, and consists of the balance credited to participants under the Plan and all other
profit sharing plans, if any, maintained by Oneida Savings Bank. The portion of any lump-sum
distribution required to be included in your taxable income for federal income tax purposes
consists of the entire amount of the lump-sum distribution, less the amount of after-tax
contributions, if any, you have made to this Plan and any other profit sharing plans maintained by
Oneida Savings Bank, which is included in the distribution.
Oneida Financial-New Common Stock Included in Lump-Sum Distribution
. If a lump-sum
distribution includes Oneida Financial-New common stock, the distribution generally will be taxed
in the manner described above, except that the total taxable amount may be reduced by the amount of
any net unrealized appreciation with respect to Oneida Financial-New common stock; that is, the
excess of the value of Oneida Financial-New common stock at the time of the distribution over its
cost or other basis of the securities to the trust. The tax basis of Oneida Financial-New common
stock, for purposes of computing gain or loss on its subsequent sale, equals the value of Oneida
Financial-New common stock at the time of distribution, less the amount of net unrealized
appreciation. Any gain on a subsequent sale or other taxable disposition of Oneida Financial-New
common stock, to the extent of the amount of net unrealized appreciation at the time of
distribution, will constitute long-term capital gain, regardless of the holding period of Oneida
Financial-New common stock. Any gain on a subsequent sale or other taxable disposition of Oneida
Financial-New common stock, in excess of the amount of net unrealized appreciation at the time of
distribution, will be considered long-term capital gain. The recipient of a distribution may elect
to include the amount of any net unrealized appreciation in the total taxable amount of the
distribution, to the extent allowed by regulations to be issued by the Internal Revenue Service.
Distributions: Rollovers and Direct Transfers to Another Qualified Plan or to an IRA
. You may
roll over virtually all distributions from the Plan to another qualified plan or to an individual
retirement account in accordance with the terms of the other plan or account.
Additional Employee Retirement Income Security Act ("ERISA") Considerations
As noted above, the Plan is subject to certain provisions of ERISA, including special
provisions relating to control over the Plan's assets by participants and beneficiaries. The
Plan's feature that allows you to direct the investment of your account balances is intended to
satisfy the requirements of Section 404(c) of ERISA relating to control over plan assets by a
participant or beneficiary. The effect of this is two-fold. First, you will not be deemed a
"fiduciary" because of your exercise of investment discretion. Second, no person who otherwise is
a fiduciary, such as Oneida Savings Bank, the Plan administrator, or the Plan's trustee is liable
under the fiduciary responsibility provision of ERISA for any loss which results from your exercise
of control over the assets in your Plan account.
18
Table of Contents
Because you will be entitled to invest all or a portion of your account balance in the Plan in
Oneida Financial-New common stock, the regulations under Section 404(c) of the ERISA require that
the Plan establish procedures that ensure the confidentiality of your decision to purchase, hold,
or sell employer securities, except to the extent that disclosure of such information is necessary
to comply with federal or state laws not preempted by ERISA. These regulations also require that
your exercise of voting and similar rights with respect to the common stock be conducted in a way
that ensures the confidentiality of your exercise of these rights.
Securities and Exchange Commission Reporting and Short-Swing Profit Liability
Section 16 of the Securities Exchange Act of 1934 imposes reporting and liability requirements
on officers, directors, and persons beneficially owning more than 10% of public companies such as
Oneida Financial-New. Section 16(a) of the Securities Exchange Act of 1934 requires the filing of
reports of beneficial ownership. Within 10 days of becoming an officer, director or person
beneficially owning more than 10% of the shares of Oneida Financial-New, a Form 3 reporting initial
beneficial ownership must be filed with the Securities and Exchange Commission. Changes in
beneficial ownership, such as purchases, sales and gifts generally must be reported periodically,
either on a Form 4 within 2 business days after the change occurs, or annually on a Form 5 within
45 days after the close of Oneida Financial-New's fiscal year. Discretionary transactions in and
beneficial ownership of the common stock through the New Employer Stock Fund of the Plan by
officers, directors and persons beneficially owning more than 10% of the common stock of Oneida
Financial-New generally must be reported to the Securities and Exchange Commission by such
individuals.
In addition to the reporting requirements described above, Section 16(b) of the Securities
Exchange Act of 1934 provides for the recovery by Oneida Financial-New of profits realized by an
officer, director or any person beneficially owning more than 10% of Oneida Financial-New's common
stock resulting from non-exempt purchases and sales of Oneida Financial-New common stock within any
six-month period.
The Securities and Exchange Commission has adopted rules that provide exemptions from the
profit recovery provisions of Section 16(b) for all transactions in employer securities within an
employee benefit plan, provided certain requirements are met. These requirements generally involve
restrictions upon the timing of elections to acquire or dispose of employer securities for the
accounts of Section 16(b) persons.
Except for distributions of common stock due to death, disability, retirement, termination of
employment or under a qualified domestic relations order, persons affected by Section 16(b) are
required to hold shares of common stock distributed from the Plan for six months following such
distribution and are prohibited from directing additional purchases of units within the New
Employer Stock Fund for six months after receiving such a distribution.
Financial Information Regarding Plan Assets
Financial information representing the net assets available for Plan benefits and the change
in net assets available for Plan benefits at December 31, 2009, is available upon written request
to the Plan administrator at the address shown above.
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LEGAL OPINION
The validity of the issuance of the common stock has been passed upon by Luse Gorman Pomerenk
& Schick, P.C., Washington, D.C., which firm acted as special counsel to Oneida Financial-New in
connection with Oneida Financial-New's stock offering.
20
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PROSPECTUS
ONEIDA FINANCIAL CORP.
(Proposed Holding Company for The Oneida Savings Bank)
Up to 4,528,125 Shares of Common Stock
Oneida Financial Corp., a Maryland corporation ("Oneida Financial-New"), is offering shares of
common stock for sale in connection with the "second step" conversion of Oneida Financial, MHC from
the mutual to the stock form of organization. The shares of common stock we are offering represent
the 55.2% ownership interest in Oneida Financial Corp., a federally chartered company, now owned by
Oneida Financial, MHC. The existing shares of Oneida Financial Corp. common stock held by the
public will be exchanged for shares of common stock of Oneida Financial-New. All shares of common
stock are being offered for sale at a price of $8.00 per share. Oneida Financial Corp.'s common
stock is currently quoted on the Nasdaq Capital Market under the symbol "ONFC." We expect that
shares of Oneida Financial-New common stock will trade on the Nasdaq Global Market under the symbol
"ONFCD" for a period of 20 trading days after the completion of the offering. Thereafter, the
trading symbol will revert to "ONFC."
If you are or were a depositor of Oneida Savings Bank:
•
You may have priority rights to purchase shares of common stock.
If you are currently a stockholder of Oneida Financial Corp.:
•
Each of your shares of common stock will be exchanged at the conclusion of the offering
for between 0.7766 and 1.0507 shares (subject to adjustment to up to 1.2083 shares) of
common stock of Oneida Financial-New.
•
Your percentage ownership will remain the same as your current percentage ownership
interest in Oneida Financial Corp., exclusive of additional shares that you may purchase in
the offering and your receipt of cash in lieu of fractional exchange shares.
•
You may have the opportunity to purchase additional shares of common stock in the
offering after priority orders are filled.
If you fit neither of the categories above, but are interested in purchasing shares of our
common stock:
•
You may have the opportunity to purchase shares of common stock after priority orders
are filled.
We are offering up to 4,528,125 shares of common stock for sale on a best efforts basis. We
may sell up to 5,207,344 shares of common stock because of demand for the shares or changes in
market conditions, without resoliciting subscribers. In addition to the shares we are selling, we
also will simultaneously issue up to 3,676,998 shares of common stock to current stockholders of
Oneida Financial Corp. in exchange for their existing shares. The number of shares to be issued in
exchange may be increased to up to 4,228,548 shares, depending on the number of shares sold in the
offering. We must sell a minimum of 3,346,875 shares in the offering, and we must issue at least
2,717,781 shares in the exchange in order to complete the offering and the exchange of existing
shares.
The minimum number of shares you may order is 25. The offering is expected to expire at
_:___ __.m., Eastern Time, on [expiration date]. We may extend this expiration date without notice
to you until [extension date], unless the Office of Thrift Supervision approves a later date, which
may not be beyond [final expiration date]. Once submitted, orders are irrevocable unless the
offering is terminated or is extended beyond [extension date], or the number of shares of common
stock to be sold is increased to more than 5,207,344 shares or decreased to less than 3,346,875
shares. If the offering is extended beyond [extension date], or if the number of shares of common
stock to be sold is increased to more than 5,207,344 shares or decreased to less than 3,346,875
shares, we will resolicit subscribers, and you will have the opportunity to maintain, change or
cancel your order. If you do not provide us with a written indication of your intent, your funds
will be returned promptly to you, with interest. Funds received prior to the completion of the
stock offering will be held in a segregated account at The Oneida Savings Bank or, at our
discretion, at another federally insured depository institution. All subscriptions received will
bear interest at The Oneida Savings Bank's passbook savings rate, which is currently 0.40% per
annum. Shares of common stock not purchased in the subscription offering may be offered for sale to
the general public in a community offering, with a preference given first to natural persons
residing in the New York counties of Chenango, Cortland, Herkimer, Lewis, Madison, Oneida,
Onondaga, Oswego and Otsego, and then to Oneida Financial Corp. public stockholders as of
[stockholder record date]. The community offering, if held, may begin concurrently with, during or
promptly after the subscription offering as we may determine at any time. Stifel, Nicolaus &
Company, Incorporated will assist us in selling our shares of common stock on a best efforts basis
in the subscription offering and community offering. We also may offer for sale shares of
common stock not purchased in the subscription offering or community offering through a syndicated
community offering managed by Stifel, Nicolaus & Company, Incorporated. Stifel, Nicolaus & Company,
Incorporated is not obligated to purchase any shares of the common stock that are being offered for
sale. Purchasers will not pay a commission to purchase shares of common stock in the offering.
OFFERING SUMMARY
Price: $8.00 per Share
Minimum
Midpoint
Maximum
Adjusted Maximum
Number of shares:
3,346,875
3,937,500
4,528,125
5,207,344
Gross offering proceeds:
$
26,775,000
$
31,500,000
$
36,225,000
$
41,658,752
Estimated offering expenses,
excluding selling agent
commissions and expenses:
$
1,195,500
$
1,195,500
$
1,195,500
$
1,195,500
Estimated selling agent
commissions and expenses (1):
$
1,151,855
$
1,324,790
$
1,497,725
$
1,696,600
Estimated net proceeds:
$
24,427,645
$
28,979,710
$
33,531,775
$
38,766,652
Estimated net proceeds per share:
$
7.30
$
7.36
$
7.41
$
7.44
(1)
For information regarding compensation to be received by Stifel,
Nicolaus & Company, Incorporated and the other broker-dealers that may
participate in the syndicated community offering, including the assumptions
regarding the number of shares that may be sold in the
subscription and community offerings and the syndicated community offering to
determine the estimated offering expenses, see "Pro Forma Data" on page ___and
"The Conversion and Offering—Marketing Arrangements" on page ___.
This investment involves a degree of risk, including the possible loss of principal.
Please read "Risk Factors" beginning on page ___.
These securities are not deposits or accounts and are not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Neither the Securities and Exchange
Commission, the Office of Thrift Supervision, nor any state securities regulator has approved or
disapproved of these securities or determined if this Prospectus is accurate or complete. Any
representation to the contrary is a criminal offense.
Stifel Nicolaus
For assistance, please contact the Stock Information Center at (877)
.
The date of this prospectus is
.
Table of Contents
[MAP TO BE INSERTED HERE]
TABLE OF CONTENTS
Page
SUMMARY
1
RISK FACTORS
20
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF ONEIDA FINANCIAL CORP.
32
FORWARD-LOOKING STATEMENTS
34
HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING
35
OUR DIVIDEND POLICY
37
MARKET FOR THE COMMON STOCK
37
HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE
39
CAPITALIZATION
40
PRO FORMA DATA
42
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
46
BUSINESS OF ONEIDA FINANCIAL-NEW
68
BUSINESS OF ONEIDA FINANCIAL CORP. AND ONEIDA SAVINGS BANK
68
SUPERVISION AND REGULATION
99
TAXATION
109
MANAGEMENT
111
BENEFICIAL OWNERSHIP OF COMMON STOCK
138
SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS
139
THE CONVERSION AND OFFERING
140
COMPARISON OF STOCKHOLDERS' RIGHTS FOR EXISTING STOCKHOLDERS OF ONEIDA FINANCIAL CORP.
166
RESTRICTIONS ON ACQUISITION OF ONEIDA FINANCIAL-NEW
173
DESCRIPTION OF CAPITAL STOCK OF ONEIDA FINANCIAL-NEW
177
FOLLOWING THE CONVERSION
177
TRANSFER AGENT
178
EXPERTS
178
LEGAL AND TAX MATTERS
179
WHERE YOU CAN FIND ADDITIONAL INFORMATION
179
ONEIDA FINANCIAL CORP. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
180
i
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SUMMARY
The following summary explains the significant aspects of the conversion, the offering and the
exchange of existing public shares of Oneida Financial Corp. common stock for shares of Oneida
Financial-New common stock. It may not contain all of the information that is important to you. For
additional information before making an investment decision, you should read this entire document
carefully, including the consolidated financial statements and the notes to the consolidated
financial statements, and the section entitled "Risk Factors."
The Companies
Oneida Financial, MHC
Oneida Financial, MHC is the federally chartered mutual holding company of Oneida Financial
Corp., a federal corporation. Oneida Financial, MHC's principal business activity is the ownership
of 4,309,750 shares of common stock of Oneida Financial Corp., or 55.2% of the issued and
outstanding shares as of February 28, 2010. Upon completion of the conversion and offering, Oneida
Financial, MHC will no longer exist.
Oneida Financial, MHC's executive offices are located at 182 Main Street, Oneida, New York
13421. Its telephone number at this address is (315) 363-2000.
Oneida Financial Corp.
Oneida Financial Corp. is a federally chartered corporation that owns all of the outstanding
common stock of The Oneida Savings Bank, a New York chartered savings bank. At December 31, 2009,
Oneida Financial Corp. had consolidated assets of $590.5 million, deposits of $489.4 million and
stockholders' equity of $59.1 million. After the completion of the conversion and offering, Oneida
Financial Corp. will cease to exist, but will be succeeded by a new Maryland corporation with the
name Oneida Financial Corp. As of February 28, 2010, Oneida Financial Corp., the federally
chartered corporation, had 7,809,420 shares of common stock issued and outstanding. As of that
date, Oneida Financial, MHC owned 4,309,750 shares of common stock of Oneida Financial Corp.,
representing 55.2% of the issued and outstanding shares of common stock. The remaining shares were
owned by the public.
Oneida Financial Corp.'s executive offices are located at 182 Main Street, Oneida, New York
13421. Its telephone number at this address is (315) 363-2000 and its website address is
www.oneidafinancial.com
. Information on this website is not and should not be considered to be a
part of this prospectus.
Oneida Financial-New
Oneida Financial-New is a newly formed Maryland corporation that will own all of the
outstanding common stock of Oneida Savings Bank upon completion of the conversion and the offering.
Oneida Financial-New will be the successor to Oneida Financial Corp.
Oneida Financial—New's executive offices are located at 182 Main Street, Oneida, New York
13421. Its telephone number at this address is (315) 363-2000.
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Oneida Savings Bank
Oneida Savings Bank is a New York chartered savings bank headquartered in Oneida, New York.
Oneida Savings Bank was originally founded in 1866 as a mutual (meaning no stockholders) savings
bank. In 1998, Oneida Savings Bank converted to a New York chartered stock savings bank and
reorganized from the mutual to the two-tiered mutual holding company form of organization. Since
1998 the Bank has grown its traditional community banking franchise organically and through
acquisitions of banks and nonbank companies that offer insurance sales, financial services,
employee benefit consulting and other risk management products and services. The expansion into
insurance and other financial services businesses has enabled Oneida Savings Bank to evolve from a
traditional savings bank to a full-service financial services organization.
Oneida Savings Bank's deposits are insured by the Federal Deposit Insurance Corporation up to
the maximum amount permitted by law. Oneida Savings Bank is a community bank engaged primarily in
the business of accepting deposits from customers through its main office and 11 full-service
branch offices and using those deposits, together with funds generated from operations and
borrowings, to make one-to-four family residential and commercial real estate loans, consumer loans
and commercial business loans and to invest in mortgage-backed and other securities. Municipal
deposit banking services are provided through a limited purpose commercial bank subsidiary, The
State Bank of Chittenango. Oneida Savings Bank also sells insurance and other commercial services
and products through Bailey & Haskell Associates, Inc., its wholly owned insurance agency
subsidiary, and provides employee benefits consulting services through Benefit Consulting Group,
Inc., its wholly owned consulting services subsidiary. In addition, Oneida Savings Bank provides
risk management services to help mitigate and prevent work related injuries through its wholly
owned subsidiary Workplace Health Solutions, Inc. Oneida Savings Bank is subject to comprehensive
regulation and examination by the Federal Deposit Insurance Corporation and the New York State
Banking Department.
Oneida Savings Bank's executive offices are located at 182 Main Street, Oneida, New York
13421. Its telephone number at this address is (315) 363-2000 and its website address is
www.oneidabank.com
. Information on this website is not and should not be considered to be a part
of this prospectus.
The State Bank of Chittenango
The State Bank of Chittenango is a New York chartered limited purpose commercial bank
headquartered in Chittenango, New York. Oneida Savings Bank acquired State Bank of Chittenango in
2002 and retained the municipal banking operations of the bank in a limited purpose wholly owned
subsidiary. New York State law prohibits a savings bank from soliciting and servicing public funds
(deposits of counties, cities, towns, school districts, etc.). Holding The State Bank of
Chittenango as a limited purpose commercial bank subsidiary has enabled us to offer municipal
deposit banking services throughout our market area. At December 31, 2009, State Bank of
Chittenango held $110.6 million in assets, consisting primarily of U.S. Government obligations and
mortgage-backed securities. The investment securities maintained at State Bank of Chittenango are
used to collateralize $86.0 million in municipal deposits. All disclosures in this prospectus
relating to Oneida Financial Corp.'s investments and deposits include the investments and deposits
that are held by State Bank of Chittenango.
Bailey & Haskell Associates
Bailey & Haskell Associates, Inc. is the wholly owned insurance agency subsidiary of Oneida
Savings Bank and is headquartered in Oneida, New York. It has six other offices in New York State
and one office in South Carolina. Oneida Savings Bank completed the acquisition of Bailey &
Haskell
2
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Associates in 2000. Bailey & Haskell Associates is a full-service insurance and financial services
firm with over 90 employees providing services to over 19,000 customers. Bailey & Haskell
Associates offers personal and commercial property insurance and other risk management products and
services. Bailey & Haskell Associates represents many leading insurance companies, including
Travelers, CNA, Hartford, Progressive, Cincinnati and Utica National. We have acquired five
insurance agencies in the six years following the acquisition of Bailey & Haskell Associates,
including Parsons, Cote & Company which was added during 2006. All of the acquired insurance
agencies were merged into Bailey & Haskell Associates. The combination of acquired agencies and
organic growth has resulted in total revenue for the year ended December 31, 2009 of $9.7 million.
All disclosures in this prospectus relating to Oneida Financial Corp. are consolidated to include
the activities of Bailey & Haskell Associates.
Benefit Consulting Group
Benefit Consulting Group, Inc., originally acquired in 2006, is the wholly owned employee
benefits consulting and retirement plan administration subsidiary of Oneida Savings Bank. Benefit
Consulting Group is headquartered in Oneida, New York and operates from offices in North Syracuse,
New York and satellite offices in several branch offices of Oneida Savings Bank. Benefit
Consulting Group currently serves more than 700 corporate and personal clients and offers employee
benefit related services that are complementary to those provided by Oneida Savings Bank and Bailey
& Haskell Associates. Benefit Consulting Group provides investment management, financial planning
and estate planning services to individuals, and provides defined contribution and benefit plans,
actuarial services and human resources management services to businesses. Benefit Consulting Group
had total revenue of $5.7 million for the year ended December 31, 2009. All disclosures in this
prospectus relating to Oneida Financial Corp. are consolidated to include the activities of Benefit
Consulting Group.
Workplace Health Solutions
Workplace Health Solutions, Inc. is the wholly owned risk management subsidiary of Oneida
Savings Bank. It is headquartered in Oneida, New York and operates from offices in North Syracuse,
New York. Workplace Health Solutions was established in January 2008 as a risk management company
with services to help mitigate and prevent work related injuries. Specifically, Workplace Health
Solutions works with employers to develop informed hiring programs, coordinates employee training
programs and consults with and advises employers relative to workers' compensation coverage and
incidents. In addition, this subsidiary develops a network of medical professionals to evaluate
injured workers and arrange for the proper treatment of and recovery from workplace injuries from a
risk management perspective. Workplace Health Solutions was developed to complement and refer the
products and services offered by our other subsidiaries with an overall philosophy of providing
innovative risk management services. Workplace Health Solutions had total revenue of $491,000 for
the year ended December 31, 2009. All disclosures in this prospectus relating to Oneida Financial
Corp. are consolidated to include the activities of Workplace Health Solutions.
Oneida Preferred Funding Corp.
Oneida Savings Bank established Oneida Preferred Funding Corp. in 1999 as a wholly owned real
estate investment trust subsidiary. At December 31, 2009, Oneida Preferred Funding Corp. held
$51.1 million in mortgage and mortgage related assets. All disclosures in this prospectus relating
to Oneida Financial Corp.'s loans and investments include loans and investments that are held by
Oneida Preferred Funding Corp.
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Our Current Organizational Structure
In 1998 Oneida Savings Bank completed its conversion from a mutual savings bank into the
two-tier mutual holding company structure and became a wholly owned subsidiary of Oneida Financial
Corp., a Delaware corporation. Oneida Financial Corp. sold a minority of its common stock to the
public. The remaining majority of its shares were retained by Oneida Financial, MHC, a New York
chartered mutual holding company. In 2001, Oneida Financial Corp. and Oneida Financial, MHC
converted to federal charters and became subject to the exclusive regulation of the Office of
Thrift Supervision.
Pursuant to the terms of Oneida Financial, MHC's plan of conversion and reorganization, Oneida
Financial, MHC will convert from the mutual holding company to the stock holding company corporate
structure. As part of the conversion, we are offering for sale in a subscription offering and
possibly in a community offering and syndicated community offering the majority ownership interest
in Oneida Financial Corp. that is currently held by Oneida Financial, MHC. Upon completion of the
conversion and offering, Oneida Financial, MHC will cease to exist, and we will complete the
transition from partial to full public stock ownership. Upon completion of the conversion, public
stockholders of Oneida Financial Corp. will receive shares of common stock of Oneida Financial-New
in exchange for their shares of Oneida Financial Corp.
The following diagram shows our current organizational structure, which is commonly referred
to as the "two-tier" mutual holding company structure:
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Our Organizational Structure Following the Conversion
After the conversion and offering are completed, we will be organized as a fully public
holding company, as follows:
Market Area
We conduct business from our headquarters and 10 full service branch offices throughout
Madison and Oneida Counties and 1 full service branch office in Onondaga County in New York. The
City of Oneida is located approximately 30 miles east of Syracuse and 20 miles west of Utica. Our
market area is characterized as rural and serves as a bedroom community to the cities of Syracuse
and Utica, New York. The economy in our market area is relatively diverse with health care,
college/university, financial/insurance and tourism/recreation being the most prominent sectors as
well as light manufacturing and technology related industries. Since 2000, our primary market area
has had population declines, with the exception of Madison County which has generally grown in line
with the New York state average. In view of the current economic downturn and despite the
population trends, our primary market area has remained a stable banking market with lower
unemployment rates than the State of New York and national averages. Median household income
growth rates of persons residing in Oneida, Madison and Onondaga Counties were below that of New
York State and the United States from 2000 to 2009. However, median household income growth rates
in Madison, Oneida and Onondaga Counties are expected to grow at rates above the State of New York
and national averages between 2009 to 2014 according to estimates by SNL Financial.
Business Strategy
Our business strategy is to grow and improve profitability, consistent with safety and
soundness considerations, by:
•
continuing our community-oriented focus;
5
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•
expanding our geographic reach;
•
continuing to improve earnings and diversify our sources of income;
•
growing our loan portfolios;
•
continuing our conservative underwriting standards while maintaining our strong
asset quality; and
•
growing our core deposit base.
Our strategy is designed to expand our banking relationships with customers and to diversify
our revenue stream. A full description of our products and services begins on page ___of this
prospectus under the heading "Business of Oneida Financial Corp. and Oneida Savings Bank."
These strategies are intended to guide our investment of the net proceeds of the offering. We
intend to continue to pursue our business strategy after the conversion and the offering, subject
to changes necessitated by future market conditions and other factors. See "Management's
Discussion and Analysis of Financial Condition and Results of Operations—Business Strategy" for a
more complete discussion of our business strategy.
Reasons for the Conversion
We are converting to the fully public stock form of ownership and conducting the offering at
this time in order to increase our capital position to enhance our capacity to pursue retail growth
and expansion opportunities, including possible acquisitions of financial institutions or other
financial services companies. We believe that our conversion to a fully public company and the
capital that we raise from the sale of our common stock in the offering will facilitate our
continued growth and the implementation of our business strategy by:
•
supporting internal growth through increased lending in the communities we serve;
•
improving our capital position during a period of significant economic, regulatory
and political uncertainty, especially for the financial services industry;
•
increasing capital to support acquisitions of financial institutions and other
financial services corporations, including insurance agencies, as opportunities arise,
although we do not currently have any agreements to acquire a financial institution or
other entity;
•
enabling us to enhance existing products and services to meet the needs of our
marketplace;
•
assisting us in managing interest rate risk; and
•
improving the liquidity of our shares of common stock and enhancing stockholder
returns through more flexible capital management strategies.
We also are undertaking the conversion at this time to reduce the uncertainty to Oneida
Financial Corp. and its stockholders associated with potential changes in applicable statutes,
regulations and policies affecting mutual holding companies. In this regard, recent legislative
proposals would eliminate our primary federal regulator, the Office of Thrift Supervision, and make
the Board of Governors of the
6
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Federal Reserve System the exclusive regulator of all holding companies, including mutual
holding companies. The Federal Reserve Board currently does not allow mutual holding companies to
waive the receipt of dividends from their mid-tier holding company subsidiaries, and any waived
dividends would dilute the ownership interests of minority stockholders in the event of a
second-step conversion.
Terms of the Conversion and Offering
Pursuant to Oneida Financial, MHC's plan of conversion and reorganization, our organization
will convert from a partially public to a fully public holding company structure. In the
conversion, we are selling shares that represent Oneida Financial, MHC's ownership interest in
Oneida Financial Corp.
We are offering between 3,346,875 and 4,528,125 shares of common stock to eligible depositors
of Oneida Savings Bank, to our tax-qualified employee benefit plans and, to the extent shares
remain available, to residents of the New York counties of Chenango, Cortland, Herkimer, Lewis,
Madison, Oneida, Onondaga, Oswego and Otsego, to our existing public stockholders and to the
general public. The number of shares of common stock to be sold may be increased to up to
5,207,344 shares as a result of regulatory considerations, demand for the shares of common stock in
the offering, or changes in the market for financial institution stocks in particular. Unless the
number of shares of common stock to be offered is increased to more than 5,207,344 shares or
decreased to fewer than 3,346,875 shares, or the offering is extended beyond [extension date],
subscribers will not have the opportunity to change or cancel their stock orders once submitted.
If the number of shares of common stock to be sold is increased to more than 5,207,344 shares or
decreased to fewer than 3,346,875 shares, or if the offering is extended beyond [extension date],
we will resolicit subscribers, and they will have the opportunity to maintain, change or cancel
their orders. If a subscriber does not provide us with a written indication of intent, we will
return the subscriber's funds, with interest.
The purchase price of each share of common stock to be offered for sale in the offering is
$8.00. All investors will pay the same purchase price per share. Investors will not be charged a
commission to purchase shares of common stock in the offering. Stifel, Nicolaus & Company,
Incorporated, our conversion advisor and marketing agent in the offering, will use its best efforts
to assist us in selling shares of our common stock. Stifel, Nicolaus & Company, Incorporated is
not obligated to purchase any shares of common stock in the offering.
How We Determined the Offering Range and the $8.00 Per Share Offering Price
The amount of common stock we are offering is based on an independent appraisal of the
estimated market value of Oneida Financial-New, assuming the conversion and offering are completed.
RP Financial, LC., our independent appraiser, has estimated that, as of February 19, 2010, this
market value ranged from $48.5 million to $65.6 million, with a midpoint of $57.1 million. Based
on this valuation, the ownership interest of Oneida Financial, MHC being sold in the offering and
the $8.00 per share price, the number of shares of common stock being offered for sale by Oneida
Financial-New will range from 3,346,875 shares to 4,528,125 shares. The purchase price of $8.00
per share was determined by us, taking into account, among other factors, the market price of our
stock prior to adoption of the plan of conversion, the requirement under Office of Thrift
Supervision regulations that the common stock be offered in a manner that will achieve the widest
distribution of the stock, and desired liquidity in the common stock after the offering. If market
conditions so warrant, the appraised value can be increased to $75.5 million, the adjusted maximum
of the appraisal, and the number of shares sold in the offering can be increased to 5,207,344.
The independent appraisal is based in part on Oneida Financial Corp.'s financial condition and
results of operations, the pro forma impact of the additional capital raised by the sale of shares
of
7
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common stock in the offering, and an analysis of a peer group of 10 publicly traded savings
bank and thrift holding companies that RP Financial considers comparable to Oneida Financial Corp.
The appraisal peer group consists of the following companies. Total assets are as of December 31,
2009, unless otherwise indicated.
Company Name and Ticker Symbol
Exchange
Headquarters
Total Assets
(in millions)
Beacon Federal Bancorp (BFED)
NASDAQ
East Syracuse, NY
$
1,070
(1)
Elmira Savings Bank, FSB (ESBK)
NASDAQ
Elmira, NY
$
506
(1)
ESSA Bancorp, Inc. (ESSA)
NASDAQ
Stroudsburg, PA
$
1,034
Fidelity Bancorp, Inc.
.
(FSBI)
NASDAQ
Pittsburgh, PA
$
736
Harleysville Savings Financial Corp. (HARL)
NASDAQ
Harleysville, PA
$
840
Newport Bancorp, Inc. (NFSB)
NASDAQ
Newport, RI
$
459
Rome Bancorp, Inc. (ROME)
NASDAQ
Rome, NY
$
330
TF Financial Corp. (THRD)
NASDAQ
Newtown, PA
$
714
Westfield Financial, Inc. (WFD)
NASDAQ
Westfield, MA
$
1,191
WVS Financial Corp. (WVFC)
NASDAQ
Pittsburgh, PA
$
392
(1)
As of September 30, 2009.
The independent valuation appraisal considered the pro forma impact of the offering.
Consistent with the Office of Thrift Supervision appraisal guidelines, the appraisal considered
three primary methodologies: the pro forma price-to-book value approach applied to both reported
book value and tangible book value; the pro forma price-to-earnings approach applied to reported
and core earnings; and the pro forma price-to-assets approach. Based on RP Financial's conclusion
that asset size is not a strong determinant of market value, RP Financial did not place significant
weight on the pro forma price-to assets approach in reaching its conclusions. RP Financial placed
the greatest emphasis on the price-to earnings and price-to-book approaches in estimating pro forma
market value. The market value ratios applied in these methodologies were based upon the current
market valuations of the peer group companies, subject to valuation adjustments applied by RP
Financial to account for differences between Oneida Financial Corp. and the peer group. The
following table presents a summary of selected pricing ratios for the peer group companies and
Oneida Financial-New (on a pro forma basis) based on earnings and other information as of and for
the twelve months ended December 31, 2009, and stock price information for the peer group companies
as of February 19, 2010, as reflected in the appraisal report. Compared to the average pricing of
the peer group, our pro forma pricing ratios at the maximum of the offering range indicated a
discount of 13.4% on a price-to-earnings basis, a discount of 8.0% on a price-to-book basis and a
premium of 20.5% on a price-to-tangible book basis. The pricing ratios result from our generally
higher level of earnings than the companies in the peer group, and comparable equity. The premium
price-to-tangible book value reflects the goodwill related to our subsidiaries, which is supported
by their contribution to our earnings. Our board of directors, in reviewing and approving the
appraisal, considered the range of price-to-earnings multiples and the range of price-to-book value
and price-to-tangible book value ratios at the different amounts of shares to be sold in the
offering, and did not consider one valuation approach to be more important than the other.
Instead, in approving the appraisal, the board concluded that these ranges represented the
appropriate balance of the three approaches to establishing our valuation, and the number of shares
to be sold, in comparison to the peer group institutions. The estimated appraised value and the
resulting premium/discount took into consideration the potential financial impact of the conversion
and offering as well as the trading price of Oneida Financial Corp. common stock. The closing price
of the common stock was $9.32 per share on February 8, 2010, the last trading day immediately
preceding the announcement of the conversion, and $9.50 per share on February 19, 2010, the
effective date of the appraisal.
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Table of Contents
Price-to-earnings
Price-to-book
Price-to-tangible
multiple (1)
value ratio
book value ratio
Oneida
Financial-New (on
a pro forma
basis, assuming
completion of the
conversion)
Adjusted Maximum
18.42x
81.88
%
112.04
%
Maximum
16.09x
75.12
%
104.85
%
Midpoint
14.05x
68.61
%
97.80
%
Minimum
11.99x
61.40
%
89.49
%
Valuation of peer
group companies,
all of which are
fully converted
(on an historical
basis)
Averages
18.58x
81.64
%
87.14
%
Medians
16.22x
88.82
%
92.01
%
(1)
Price-to-earnings multiples calculated by RP Financial in the independent appraisal are
based on an estimate of "core" earnings. Core earnings were determined by adjusting reported
earnings for the twelve months ended December 31, 2009 to omit trading portfolio gains, OTTI
charges and gains on the sale of securities. These ratios are different than those presented
in "Pro Forma Data."
The independent appraisal does not indicate market value. Do not assume or expect that
our valuation as indicated in the appraisal means that after the conversion and offering the shares
of our common stock will trade at or above the $8.00 per share purchase price. Furthermore, the
pricing ratios presented in the appraisal were utilized by RP Financial to estimate our market
value and not to compare the relative value of shares of our common stock with the value of the
capital stock of the peer group. The value of the capital stock of a particular company may be
affected by a number of factors such as financial performance, asset size and market location.
The independent appraisal will be updated prior to the completion of the conversion. If the
appraised value changes to either below $48.5 million or above $75.5 million, we will resolicit
persons who submitted stock orders. See "The Conversion and Offering—Stock Pricing and Number of
Shares to be Issued."
The Exchange of Existing Shares of Oneida Financial Corp. Common Stock
If you are currently a stockholder of Oneida Financial Corp., your shares will be canceled at
the conclusion of the offering and become the right to receive shares of common stock of Oneida
Financial-New. The number of shares of common stock you receive will be based on an exchange ratio
determined as of the closing of the conversion, which will depend upon our final appraised value
and the results of the offering. The following table shows how the exchange ratio will adjust,
based on the valuation of Oneida Financial-New and the number of shares of common stock issued in
the offering. The table also shows the number of shares of Oneida Financial-New common stock a
hypothetical owner of Oneida Financial Corp. common stock would receive in exchange for 100 shares
of Oneida Financial Corp. common stock owned at the consummation of the conversion, depending on
the number of shares of common stock issued in the offering.
Shares of Oneida
Financial-New
to be Issued for
Total Shares of
Equivalent
Shares to be
Shares to be Sold in This
Shares of Oneida
Common Stock
Value of Shares
Received
Offering
Financial Corp.
to be Issued in
Based Upon
for 100
Conversion and
Exchange
Current Market
Existing
Amount
Percent
Amount
Percent
Offering
Ratio
Price (1)
Shares
Minimum
3,346,875
55.19
%
2,717,781
44.81
%
6,064,656
0.7766
$
6.21
77
Midpoint
3,937,500
55.19
3,197,390
44.81
7,134,890
0.9136
7.31
91
Maximum
4,528,125
55.19
3,676,998
44.81
8,205,123
1.0507
8.40
105
15% above Maximum
5,207,344
55.19
4,228,548
44.81
9,435,892
1.2083
9.67
120
(1)
Represents the value of shares of Oneida Financial-New common stock received in the
conversion by a holder of one share of Oneida Financial Corp., at the exchange ratio, assuming the
market price of $8.00 per share.
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Table of Contents
If you own shares of Oneida Financial Corp. common stock in a brokerage account in
"street name," you do not need to take any action to exchange your shares of common stock. If you
own shares in the form of Oneida Financial Corp. stock certificates, our exchange agent will mail
to you a transmittal form with instructions to surrender your stock certificates after consummation
of the conversion. New certificates of Oneida Financial-New common stock will be mailed to you
within five business days after the exchange agent receives your properly executed transmittal form
and your Oneida Financial Corp. stock certificates.
You should not submit a stock certificate until you receive a transmittal form.
No fractional shares of Oneida Financial-New common stock will be issued to any public
stockholder of Oneida Financial Corp. For each fractional share that otherwise would be issued,
Oneida Financial-New will pay in cash an amount equal to the product obtained by multiplying the
fractional share interest to which the holder otherwise would be entitled by the $8.00 per share
subscription price.
All currently outstanding options to purchase shares of Oneida Financial Corp. common stock
will expire on April 25, 2010, prior to the consummation of the conversion, unless previously
exercised. At December 31, 2009, there were 122,175 outstanding options to purchase shares of
Oneida Financial Corp. common stock, all of which have vested. If any such options are exercised
prior to their expiration on April 25, 2010, they will be funded with newly issued shares rather
than through open market purchases.
How We Intend to Use the Proceeds From the Offering
We estimate net proceeds from the offering will be between $24.4 million and $33.5 million, or
$38.8 million if the offering range is increased by 15%. Oneida Financial-New intends to retain
between $11.1 million and $15.3 million of the net proceeds, or $17.7 million if the offering range
is increased by 15%. Approximately $12.2 million to $16.8 million of the net proceeds (or $19.4
million if the offering range is increased by 15%) will be invested in Oneida Savings Bank.
A portion of the net proceeds retained by Oneida Financial-New will be loaned to the employee
stock ownership plan to fund its purchase of shares of common stock in the offering (between
133,875 shares and 181,125 shares, or 208,294 shares if the offering is increased by 15%). The
employee stock ownership plan was established in connection with our 1998 stock offering. As of
December 31, 2009, there were no shares remaining unallocated in the plan. The remainder of the net
proceeds will be used for general corporate purposes, including paying cash dividends and
repurchasing shares of our common stock. Funds invested in Oneida Savings Bank will be used to
support increased lending and new products and services. The net proceeds retained by Oneida
Financial-New and Oneida Savings Bank also may be used to expand our retail banking franchise by
acquiring new branches or by acquiring other financial institutions or other financial services
companies, including insurance agencies, as opportunities arise, although we do not currently have
any agreements or understandings regarding any acquisition transaction and it is impossible to
determine when, if ever, such opportunities may arise. Initially, a substantial portion of the net
proceeds will be invested in short-term investments, investment-grade debt obligations and
mortgage-backed securities.
Please see the section of this prospectus entitled "How We Intend to Use the Proceeds from the
Offering" for more information on the proposed use of the proceeds from the offering.
Our Dividend Policy
Oneida Financial Corp. has paid a semiannual cash dividend since August 1999. During the six
months ended December 31, 2009, Oneida Financial Corp. paid a semiannual cash dividend of $0.24 per
share, which equals $0.48 per share on an annualized basis. After the conversion, we intend to
continue
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Table of Contents
to pay an annual cash dividend of $0.48 per share, payable quarterly. This dividend represents a
6% annual yield based on the offering price of $8.00 per share. However, after the conversion, the
dividend rate and the continued payment of dividends will primarily depend on our earnings,
alternative uses for capital, capital requirements, acquisition opportunities, and our financial
condition and results of operations, and, to a lesser extent, statutory and regulatory limitations,
tax considerations and general economic conditions. No assurance can be given that we will
continue to pay dividends or that they will not be reduced in the future. Additionally, we cannot
guarantee that the amount of dividends that we pay after the conversion and offering will be equal
to the per share dividend amount that Oneida Financial Corp. shareholders currently receive.
See "Selected Consolidated Financial and Other Data of Oneida Financial Corp." and "Market for
the Common Stock" for information regarding our historical dividend payments.
Purchases by Officers and Directors
We expect our directors and executive officers, together with their associates, to subscribe
for 167,000 shares (or approximately $1.3 million) of common stock in the offering. The purchase
price paid by them will be the same $8.00 per share price paid by all other persons who purchase
shares of common stock in the offering. Following the conversion, our directors and executive
officers, together with their associates, are expected to own 860,119 shares of common stock, or
12.06% of our total outstanding shares of common stock at the midpoint of the offering range.
Benefits to Management and Potential Dilution to Stockholders Resulting from the Conversion
Employee Stock Ownership Plan.
Our tax-qualified employee stock ownership plan expects to
purchase up to 4.0% of the shares of common stock we sell in the offering, or 208,294 shares of
common stock, assuming we sell the maximum, as adjusted, number of shares proposed to be sold
which, when combined with the existing employee stock ownership plan, will be less than 8% of the
shares outstanding following the conversion. If we receive orders for more shares of common stock
than the maximum of the offering range, the employee stock ownership plan will have first priority
to purchase shares over this maximum, up to a total of 4% of the shares of common stock sold in the
offering. We reserve the right to purchase shares of common stock in the open market following the
offering in order to fund all or a portion of the employee stock ownership plan. Assuming the
employee stock ownership plan purchases 157,500 shares in the offering, at the midpoint of the
offering range, we will recognize additional compensation expense of approximately $126,000
annually (or approximately $77,000 after tax) over a 10-year period, assuming the loan to the
employee stock ownership plan has a 10-year term and an interest rate equal to the prime rate as
published in
The Wall Street Journal
, and the shares of common stock have a fair market value of
$8.00 per share for the full 10-year period. If, in the future, the shares of common stock have a
fair market value greater or less than $8.00, the compensation expense will increase or decrease
accordingly. We also reserve the right to have the employee stock ownership plan purchase more
than 4% of the shares of common stock sold in the offering if necessary to complete the offering at
the minimum of the offering range. We anticipate that the additional compensation expense for the
purchases by our employee stock ownership program will be offset in part by the reduction in
discretionary contributions that we have made in recent years to our employee stock ownership
plan. For example, in the year ended December 31, 2009, we contributed approximately $300,000 to
the employee stock ownership plan to fund the purchase of shares of our common stock in the open
market. It is expected that these planned reductions in discretionary contributions will offset
the contributions made to pay off the new loan.
Stock-Based Incentive Plan.
We also intend to implement a new stock-based incentive plan no
earlier than six months after completion of the conversion. Stockholder approval of this plan will
be required. If implemented within 12 months following the completion of the conversion, the
stock-based
11
Table of Contents
incentive plan will reserve a number of shares up to 4% of the shares of common stock sold in
the offering, or up to 208,294 shares of common stock at the maximum as adjusted of the offering
range, for awards of restricted stock to key employees and directors, at no cost to the recipients,
subject to adjustment as may be required by Office of Thrift Supervision regulations or policy to
reflect restricted stock awards previously made by Oneida Financial Corp. or Oneida Savings Bank.
If the shares of common stock awarded under the stock-based incentive plan come from authorized but
unissued shares of common stock, stockholders would experience dilution of up to approximately
2.16% in their ownership interest in Oneida Financial-New. If implemented within 12 months
following the completion of the conversion, the stock-based incentive plan will also reserve a
number of shares up to 10% of the shares of common stock sold in the offering, or up to 520,734
shares of common stock at the maximum, as adjusted, of the offering range, for issuance pursuant to
grants of stock options to key employees and directors, subject to adjustment as may be required by
Office of Thrift Supervision regulations or policy to reflect stock options previously granted by
Oneida Financial Corp. or Oneida Savings Bank. If the shares of common stock issued upon the
exercise of options come from authorized but unissued shares of common stock, stockholders would
experience dilution of up to 5.23% in their ownership interest in Oneida Financial-New. Restricted
stock awards and stock option grants made pursuant to a plan implemented within twelve months
following the completion of the conversion and the offering would be subject to Office of Thrift
Supervision regulations, including a requirement that stock awards and stock options vest over a
period of not less than five years. If the stock-based incentive plan is adopted more than one
year after the completion of the conversion, awards of restricted stock or grants of stock options
under the plan may exceed the percentage limitations set forth above. For a description of our
current stock-based incentive plans, see "Management—Benefit Plans."
The following table summarizes the number of shares of common stock and the aggregate dollar
value of grants that are expected under the new stock-based incentive plan as a result of the
conversion. The table also shows the dilution to stockholders if all such shares are issued from
authorized but unissued shares, instead of shares purchased in the open market. A portion of the
stock grants shown in the table below may be made to non-management employees.
Dilution
Number of Shares to be Granted or Purchased (1)
Resulting
Value of Grants, in
As a
From
Thousands (2)
At
Percentage
Issuance of
At
At
Maximum
of Common
Shares for
At
Maximum,
Minimum of
as adjusted
Stock to be
Stock-Based
Minimum
as adjusted,
Offering
of Offering
Sold in the
Incentive
of Offering
of Offering
Range
Range
Offering
Plans (3)
Range
Range
(Dollars in thousands)
Employee stock ownership plan
133,875
208,294
4.00
%
—
%
$
1,071
$
1,666
Restricted stock awards
133,875
208,294
4.00
2.16
%
1,071
1,666
Stock options
334,688
520,734
10.00
5.23
%
1,038
1,614
Total
602,438
937,322
18.00
%
7.17
%
$
3,180
$
4,946
(1)
The table assumes that the stock-based incentive plan awards a number of options and
restricted stock equal to 10% and 4% of the shares of common stock sold in the offering as if
the plan is implemented within 12 months after the completion of the conversion and offering.
If the stock-based incentive plan is implemented more than 12 months after the completion of
the conversion and offering, grants of options and restricted stock may exceed these
percentage limitations.
(2)
The actual value of restricted stock awards will be determined based on their fair value as
of the date grants are made. For purposes of this table, fair value for stock awards is
assumed to be the same as the offering price of $8.00 per share. The fair value of stock
options has been estimated at $3.10 per option using the Black-Scholes option pricing model,
adjusted for the exchange ratio, with the following assumptions: a grant-date share price and
option exercise price of $8.00; an expected option life of 10 years; a dividend yield of 5%;
an interest rate of 2.96%; and a volatility rate of 62.09%. The actual value of option grants
will be determined by the grant-date fair value of the options, which will depend on a number
of factors, including the valuation assumptions used in the option pricing model ultimately
adopted.
(3)
Represents the dilution of stock ownership interest. No dilution is reflected for the
employee stock ownership plan because such shares are assumed to be purchased in the offering.
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Table of Contents
We may fund our stock-based incentive plan through open market purchases, as opposed to
new issuances of stock; however, Office of Thrift Supervision regulations do not permit us to
repurchase our shares during the first year following the completion of this offering except to
fund the grants of restricted stock under our stock-based incentive plan or under extraordinary
circumstances.
The following table presents information as of December 31, 2009 regarding our existing
employee stock ownership plan, our 2000 Stock Option Plan, our 2000 Recognition and Retention Plan,
our 2006 Recognition and Retention Plan, our proposed employee stock ownership plan purchases, and
our proposed stock-based incentive plan. The table below assumes that 8,205,123 shares are
outstanding after the offering, which includes the sale of 4,528,125 shares in the offering at the
maximum of the offering range and the issuance of 3,676,998 shares in exchange for shares of Oneida
Financial Corp. using an exchange ratio of 1.0507. It also assumes that the value of the stock is
$8.00 per share.
Percentage of
Shares Outstanding
Shares at Maximum
Estimated Value of
After the
Existing and New Stock Benefit Plans
Participants
of Offering Range
Shares
Conversion
Employee Stock Ownership Plan:
Employees
Shares purchased in 1998 offering (1) (2)
314,848
(3)
$
2,518,784
3.84
%
Shares to be purchased in this offering
181,125
1,449,000
2.21
Total employee stock ownership plan shares
495,973
$
3,967,784
6.05
%
Restricted Stock Awards:
Directors, Officers
and Employees
2000 Recognition and Retention Plan (1) (2)
196,780
(4)
$
1,574,240
(6)
2.40
%
2006 Recognition and Retention Plan (1)
84,056
(5)
672,448
(6)
1.02
New shares of restricted stock
181,125
1,449,000
(6)
2.21
Total shares of restricted stock
461,961
$
3,695,688
5.63
%(9)
Stock Options:
Directors, Officers
and Employees
2000 Stock Option Plan (1) (2)
393,559
(7)
$
1,220,033
4.80
%
New stock options
452,813
1,403,720
(8)
5.52
Total stock options
846,372
$
2,623,753
10.32
%
Total of stock benefit plans
1,804,306
$
10,287,225
22.00
%(9)
(1)
The number of shares indicated has been adjusted for the 1.0507 exchange ratio at the
maximum of the offering range.
(2)
The number of shares has been adjusted to reflect 3 for 2 stock splits in 2002 and 2004.
(3)
As of December 31, 2009, all of these shares, or 299,655 shares prior to adjustment for the
exchange, have been allocated.
(4)
As of December 31, 2009, 185,342 of these shares, or 176,399 shares prior to adjustment for
the exchange, have been awarded and have vested.
(5)
As of December 31, 2009, 83,636 of these shares, or 79,600 shares prior to adjustment for the
exchange, have been awarded, and 66,404 of these shares, or 63,200 shares prior to adjustment
for the exchange, have vested. All unvested shares will vest on December 31, 2010.
(6)
The value of restricted stock awards is determined based on their fair value as of the date
grants are made. For purposes of this table, the fair value of awards under the new
stock-based incentive plan is assumed to be the same as the offering price of $8.00 per share.
(7)
As of December 31, 2009, options to purchase 383,846 of these shares, or 365,325 shares prior
to adjustment for the exchange, have been awarded and have vested, and 9,711 options, or 9,243
options prior to the adjustment for the exchange, remain available for future grants.
(8)
The weighted-average fair value of stock options has been estimated at $3.10 per option,
adjusted for the exchange ratio, using the Black-Scholes option pricing model. The fair value
of stock options uses the Black-Scholes option pricing model with the following assumptions:
exercise price, $8.00; trading price on date of grant, $8.00; dividend yield, 5%; expected
life, 10 years; expected volatility, 62.09%; and risk-free interest rate, 2.96%.
(9)
The number of shares of restricted stock and stock options set forth in the table would
exceed regulatory limits if a stock-based incentive plan was adopted within one year of the
completion of the conversion and offering. Accordingly, the number of new shares of
restricted stock and stock options set forth in the table would have to be reduced so that the
aggregate amount of outstanding stock awards would be 4.0% or less (3.0% or less if pro forma
tangible capital after the conversion is less than 10%) and outstanding stock options would be
10.0% or less, unless we obtain a waiver from the OTS, or we implement the incentive plan more
than twelve months following the completion of the conversion and offering. Our current
intention is to implement a new stock-based incentive plan no earlier than twelve months after
completion of the conversion and offering.
The value of the shares awarded under the stock-based incentive plan will be based in
part on the price of Oneida Financial-New's common stock at the time the shares are awarded. The
stock-based
13
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incentive plan is subject to stockholder approval, and cannot be implemented until at least
six months after the offering. The following table presents the total value of all shares that
would be available for award and issuance under the stock-based incentive plan, assuming the shares
are awarded when the market price of our common stock ranges from $6.00 per share to $12.00 per
share.
157,500
208,294
133,875 Shares
Shares Awarded
181,125
Shares Awarded
Awarded at Minimum
at Midpoint of
Shares Awarded
at Maximum of
Share Price
of Range
Range
at Maximum of Range
Range, As Adjusted
$
6.00
$
803,250
$
945,000
$
1,086,750
$
1,249,764
8.00
1,071,000
1,260,000
1,449,000
1,666,352
10.00
1,338,750
1,575,000
1,811,250
2,082,940
12.00
1,606,500
1,890,000
2,173,500
2,499,528
The grant-date fair value of the options granted under the stock-based incentive plan
will be based in part on the price of shares of common stock of Oneida Financial-New at the time
the options are granted. The value also will depend on the various assumptions utilized in the
option pricing model ultimately adopted. The following table presents the total estimated value of
the options to be available for grant under the stock-based incentive plan, assuming the market
price and exercise price for the stock options are equal and the range of market prices for the
shares is $6.00 per share to $12.00 per share.
520,734
334,688
393,750
452,813
Options at Maximum
Grant-Date Fair
Options at Minimum
Options at Midpoint
Options at Maximum
of Range, As
Exercise Price
Value Per Option
of Range
of Range
of Range
Adjusted
$
6.00
$
2.33
$
779,823
$
917,438
$
1,055,054
$
1,213,310
8.00
3.10
1,037,533
1,220,625
1,403,720
1,614,275
10.00
3.88
1,298,589
1,527,750
1,756,914
2,020,448
12.00
4.65
1,556,299
1,830,938
2,105,580
2,421,413
The tables presented above are provided for informational purposes only. There can be no
assurance that our stock price will not trade below $8.00 per share. Before you make an investment
decision, we urge you to read this prospectus carefully, including, but not limited to, the section
entitled "Risk Factors" beginning on page ___.
Persons Who May Order Shares of Common Stock in the Offering
We are offering the shares of common stock in a "subscription offering" in the following
descending order of priority:
(i)
First, to depositors with accounts at Oneida Savings Bank with aggregate
balances of at least $50 at the close of business on December 31, 2008.
(ii)
Second, to our tax-qualified employee benefit plans, including Oneida Savings
Bank's employee stock ownership plan.
(iii)
Third, to depositors with accounts at Oneida Savings Bank with aggregate
balances of at least $50 at the close of business on March 31, 2010.
(iv)
Fourth, to depositors of Oneida Savings Bank at the close of business on [VRD].
Shares of common stock not purchased in the subscription offering may be offered for sale to
the general public in a "community offering," with a preference given first to natural persons
residing in the New York counties of Chenango, Cortland, Herkimer, Lewis, Madison, Oneida,
Onondaga, Oswego and Otsego, and then to Oneida Financial Corp. public stockholders as of
[stockholder record date]. The
14
Table of Contents
community offering, if held, may begin concurrently with, during or promptly after the
subscription offering as we may determine at any time. We also may offer for sale shares of common
stock not purchased in the subscription offering or community offering through a "syndicated
community offering" managed by Stifel, Nicolaus & Company, Incorporated. We have the right to
accept or reject, in our sole discretion, orders received in the community offering or syndicated
community offering. Any determination to accept or reject purchase orders in the community
offering and the syndicated community offering will be based on the facts and circumstances
available to management at the time of the determination.
If we receive orders for more shares than we are offering, we may not be able to fully or
partially fill your order. Shares will be allocated first to categories in the subscription
offering. A detailed description of share allocation procedures can be found in the section of
this prospectus entitled "The Conversion and Offering."
Limits on How Much Common Stock You May Purchase
The minimum number of shares of common stock that may be purchased is 25.
If you are not currently an Oneida Financial Corp. stockholder —
No individual may purchase more than 37,500 shares ($300,000) of common stock. If any of the
following persons purchases shares of common stock, their purchases, in all categories of the
offering, when combined with your purchases, cannot exceed 75,000 shares ($600,000) of common
stock:
•
your spouse or relatives of you or your spouse living in your house;
•
most companies, trusts or other entities in which you are a trustee, have a
substantial beneficial interest or hold a senior position; or
•
other persons who may be your associates or persons acting in concert with you.
Unless we determine otherwise, persons having the same address and persons exercising
subscription rights through qualifying deposit accounts registered to the same address will be
subject to the overall purchase limitation of 75,000 shares ($600,000).
See the detailed description of "acting in concert" and "associate" in the section of this
prospectus headed "The Conversion and Offering—Limitations on Common Stock Purchases."
If you are currently an Oneida Financial Corp. stockholder —
In addition to the above purchase limitations, there is an ownership limitation for
stockholders other than our employee stock ownership plan. Shares of common stock that you
purchase in the offering individually and together with persons described above,
plus
any shares
you and they receive in exchange for existing shares of Oneida Financial Corp. common stock, may
not exceed 5% of the total shares of common stock to be issued and outstanding after the completion
of the conversion. However, any Oneida Financial Corp. stockholder who currently owns more than 5%
of the total shares issued and outstanding will not be required to divest any shares of common
stock they currently own as a result of this limit.
Subject to Office of Thrift Supervision approval, we may increase or decrease the purchase and
ownership limitations at any time.
In the event that the maximum purchase limitation is increased to 5% of the shares sold in the
offering, such limitation may be further increased to 9.99%, provided that orders for shares of
common
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stock exceeding 5% of the shares sold in the offering shall not exceed in the aggregate 10.0%
of the total shares sold in the offering.
See the detailed description of purchase limitations and definitions of "acting in concert"
and "associate" in "The Conversion and Offering—Additional Limitations on Common Stock Purchases."
How You May Purchase Shares of Common Stock
In the subscription offering and community offering, you may pay for your shares only by:
(i)
personal check, bank check or money order made payable directly to Oneida
Financial Corp.; or
(ii)
authorizing us to withdraw funds from the types of Oneida Savings Bank deposit
accounts designated on the stock order form.
Oneida Savings Bank is not permitted to lend funds to anyone for the purpose of purchasing
shares of common stock in the offering. Additionally, you may not use an Oneida Savings Bank line
of credit check or third party check to pay for shares of common stock. Please do not submit cash
or wire transfers.
You can subscribe for shares of common stock in the offering by delivering a signed and
properly completed original stock order form, together with full payment payable to Oneida
Financial Corp. or authorization to withdraw funds from one or more of your Oneida Savings Bank
deposit accounts, provided that the stock order form is received before 2:00 p.m., Eastern Time, on
[expiration date], which is the end of the offering period. Checks and money orders will be
deposited with Oneida Savings Bank or another insured depository institution upon receipt. We will
pay interest at Oneida Savings Bank's passbook savings rate from the date funds are processed until
completion or termination of the conversion, at which time subscribers will receive interest
checks. You may not designate a withdrawal from Oneida Savings Bank accounts with check-writing
privileges. Please provide a check instead. If you request direct withdrawal, we reserve the
right to interpret that as your authorization to treat those funds as if we had received a check
for the designated amount, and we will immediately withdraw the amount from your checking account.
You may not designate a withdrawal from an Oneida Savings Bank individual retirement account or
other retirement account. If you wish to use funds in such an account, please see "—Using IRA
Funds".
Withdrawals from certificates of deposit to purchase shares of common stock in the offering
may be made without incurring an early withdrawal penalty. If a withdrawal results in a
certificate account with a balance less than the applicable minimum balance requirement, the
certificate will be canceled at the time of withdrawal without penalty and the remaining balance
will earn interest at the current passbook rate subsequent to the withdrawal.
All funds authorized for withdrawal from deposit accounts at Oneida Savings Bank must be in
the accounts at the time the stock order is received. However, funds will not be withdrawn from the
accounts until the completion of the offering and will earn interest within the account at the
applicable deposit account rate until that time. A hold will be placed on those funds when your
stock order is received, making the designated funds unavailable to you.
Funds withdrawn from deposit accounts at Oneida Savings Bank may reduce or eliminate the
depositor's liquidation rights. Please see the section of this prospectus entitled "The Conversion
and Offering—Liquidation Rights" for further information.
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We are not required to accept copies or facsimiles of stock order forms. By signing the stock
order form, you are acknowledging both receipt of this prospectus and that the shares of common
stock are not deposits or savings accounts that are federally insured or otherwise guaranteed by
Oneida Savings Bank, Oneida Financial-New or the federal government. After we receive an order for
shares of our common stock, the order cannot be cancelled or changed.
Using IRA Funds
You may be able to subscribe for shares of common stock using funds in your individual
retirement account, or IRA, at Oneida Savings Bank or elsewhere. However, shares of common stock
must be held in a self-directed retirement account, such as those offered by a brokerage firm or
Oneida Savings Bank's Trust Department. By regulation, Oneida Savings Bank's individual retirement
accounts that were not established through our Trust Department are not self-directed, so they
cannot be invested in our common stock. If you wish to use some or all of the funds in your Oneida
Savings Bank individual retirement account, the applicable funds must be transferred to a
self-directed account maintained by an independent custodian or trustee, such as a brokerage firm
or our Trust Department. If you do not have such an account, you will need to establish one before
placing your stock order. An annual administrative fee may be payable to the independent trustee.
Because individual circumstances differ and processing of retirement fund orders takes additional
time, we recommend that you contact our Stock Information Center promptly, preferably at least two
weeks before the [expiration date] offering deadline, for assistance with purchases using your
individual retirement account or other retirement account that you may have at Oneida Savings Bank
or elsewhere. Whether you may use such funds for the purchase of shares in the stock offering may
depend on timing constraints and, possibly, limitations imposed by the institution where the funds
are held.
Delivery of Stock Certificates
Certificates representing shares of common stock sold in the subscription offering and
community offering will be mailed by first class mail to the persons entitled thereto at the
certificate registration address noted by them on the order form, as soon as practicable following
consummation of the offering and receipt of all necessary regulatory approvals.
It is possible
that until certificates for the common stock are delivered to purchasers, purchasers might not be
able to sell the shares of common stock that they ordered, even though the common stock will have
begun trading.
Your ability to sell shares of common stock before you receive stock certificates
will depend upon the arrangements you may make with your brokerage firm. If you are currently a
stockholder of Oneida Financial Corp., see "The Conversion and Offering—Exchange of Existing
Stockholders' Stock Certificates."
You May Not Sell or Transfer Your Subscription Rights
Office of Thrift Supervision regulations prohibit you from transferring your subscription
rights. If you order shares of common stock in the subscription offering, you will be required to
acknowledge in writing that you are purchasing the common stock for yourself and that you have no
agreement or understanding to sell or transfer your subscription rights. We intend to take legal
action, including reporting persons to federal agencies, against anyone who we believe has sold or
transferred his or her subscription rights. We will not accept your order if we have reason to
believe that you have sold or transferred your subscription rights. On the stock order form, you
may not add the names of others for joint stock registration who do not have subscription rights or
who qualify only in a lower subscription offering priority than you do. In addition, the stock
order form requires that you list all deposit accounts, giving all names on each account and the
account number at the applicable eligibility date. Failure to provide this information, or
providing incomplete or incorrect information, may result in a loss of part or all of your share
allocation, if there is an oversubscription.
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Deadline for Orders of Common Stock
If you wish to purchase shares of common stock, a properly completed and signed original stock
order form, together with full payment for the shares of common stock, must be received (not
postmarked) by the Stock Information Center no later than _: ___.m., Eastern Time, on [expiration
date], unless we extend this deadline. You may submit your stock order form by mail using the
stock order return envelope provided, by overnight courier to the indicated address on the stock
order form, or by hand delivery to Oneida Savings Bank's main office located at 182 Main Street,
Oneida, New York. Stock order forms may not be delivered to other Oneida Savings Bank offices.
Please do not mail stock order forms to Oneida Savings Bank. Once submitted, your order is
irrevocable unless the offering is terminated or extended beyond [extension date] or the number of
shares of common stock to be sold is increased to more than 5,207,344 shares or decreased to fewer
than 3,346,875 shares. In either of these cases, purchasers will have the right to maintain,
change or cancel their orders. If we do not receive a written response from a subscriber regarding
any resolicitation, the order will be canceled and all funds received will be returned promptly
with interest, and deposit account withdrawal authorizations will be canceled. No extension may
last longer than 90 days. All extensions, in the aggregate, may not last beyond
.
Although we will make reasonable attempts to provide this prospectus and offering materials to
holders of subscription rights, the subscription offering and all subscription rights will expire
at _: ___.m., Eastern Time, on [expiration date], whether or not we have been able to locate each
person entitled to subscription rights.
TO ENSURE THAT EACH PERSON RECEIVES A PROSPECTUS AT LEAST 48 HOURS PRIOR TO THE EXPIRATION
DATE OF [EXPIRATION DATE] IN ACCORDANCE WITH FEDERAL LAW, NO PROSPECTUS WILL BE MAILED ANY LATER
THAN FIVE DAYS PRIOR TO [EXPIRATION DATE] OR HAND-DELIVERED ANY LATER THAN TWO DAYS PRIOR TO
[EXPIRATION DATE].
Steps We May Take if We Do Not Receive Orders for the Minimum Number of Shares
If we do not receive orders for at least 3,346,875 shares of common stock, we may take several
steps in order to issue the minimum number of shares of common stock in the offering range.
Specifically, we may:
(i)
increase the purchase and ownership limitations;
(ii)
seek regulatory approval to extend the offering beyond the [extension date]
expiration date, provided that any such extension will require us to resolicit
subscriptions received in the offering; and/or
(iii)
Increase the purchase of shares by the employee stock ownership plan.
Market for Common Stock
Existing publicly held shares of Oneida Financial Corp.'s common stock are listed on the
Nasdaq Capital Market under the symbol "ONFC." Upon completion of the conversion, the shares of
common stock of Oneida Financial-New will replace the existing shares. We expect the new shares
will trade on the Nasdaq Global Market under the symbol "ONFCD" for a period of 20 trading days
after the completion of the offering. Thereafter, the trading symbol will revert to "ONFC." In
order to list our stock on the Nasdaq Global Market, we are required to have at least three
broker-dealers who will make a market in our common stock. Oneida Financial Corp. currently has
more than three market makers, including Stifel, Nicolaus & Company, Incorporated, and Stifel,
Nicolaus & Company, Incorporated has
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advised us that it intends to make a market in our common stock following the offering, but it
is under no obligation to do so.
Tax Consequences
As a general matter, the conversion will not be a taxable transaction for purposes of federal
or state income taxes to Oneida Financial, MHC, Oneida Financial Corp., Oneida Savings Bank, Oneida
Financial-New, persons eligible to subscribe in the subscription offering, or existing stockholders
of Oneida Financial Corp. Existing stockholders of Oneida Financial Corp. who receive cash in lieu
of fractional share interests in shares of Oneida Financial-New will recognize a gain or loss equal
to the difference between the cash received and the tax basis of the fractional share.
Conditions to Completion of the Conversion
We cannot complete the conversion and offering unless:
•
The plan of conversion and reorganization is approved by at least
a majority of
votes eligible
to be cast by depositors of Oneida Savings Bank as of
;
•
The plan of conversion and reorganization is approved by at least
two-thirds of the
outstanding
shares of common stock of Oneida Financial Corp. as of
,
including shares held by Oneida Financial, MHC. (Because Oneida Financial, MHC owns
55.2% of the outstanding shares of Oneida Financial Corp. common stock, we expect that
Oneida Financial, MHC, together with our directors, executive officers and employees,
will control the outcome of this vote);
•
The plan of conversion and reorganization is approved by at least
a majority of the
outstanding
shares of common stock of Oneida Financial Corp. as of
,
excluding those shares held by Oneida Financial, MHC;
•
We sell at least the minimum number of shares of common stock offered; and
•
We receive the final approval of the Office of Thrift Supervision to complete the
conversion and offering.
Oneida Financial, MHC intends to vote its ownership interest in favor of the plan of
conversion and reorganization. At February 28, 2010, Oneida Financial, MHC owned 55.2% of the
outstanding shares of common stock of Oneida Financial Corp. The directors and executive officers
of Oneida Financial Corp. and their affiliates owned 758,674 shares of Oneida Financial Corp., or
9.71% of the outstanding shares of common stock and 21.68% of the outstanding shares of common
stock, excluding shares owned by Oneida Financial, MHC. They intend to vote those shares in favor
of the plan of conversion and reorganization.
How You Can Obtain Additional Information—Stock Information Center
Our banking personnel may not, by law, assist with investment-related questions about the
offering. If you have any questions regarding the conversion or offering, please call our Stock
Information Center, toll-free, at 1-877-
. The Stock Information Center is open Monday
through Friday between 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will
be closed weekends and bank holidays.
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RISK FACTORS
You should consider carefully the following risk factors in evaluating an investment in the
shares of common stock.
Risks Related to Our Business
Concentration of loans in our primary market area may increase risk.
Our success depends primarily on the general economic conditions in upstate New York, as
nearly all of our loans are to customers in this market. Accordingly, the local economic conditions
in upstate New York have a significant impact on the ability of borrowers to repay loans. As such,
a decline in real estate valuations in this market would lower the value of the collateral securing
those loans. In addition, a significant weakening in general economic conditions such as inflation,
recession, unemployment, or other factors beyond our control could negatively affect our financial
results.
Changes in interest rates could adversely affect our results of operations and financial condition.
Our results of operations and financial condition are significantly affected by changes in
interest rates. Our financial results depend substantially on net interest income, which is the
difference between the interest income that we earn on interest-earning assets, such as loans and
securities, and the interest expense we pay on interest-bearing liabilities, such as deposits and
borrowings. Because our interest-bearing liabilities generally reprice or mature more quickly than
our interest-earning assets, an increase in interest rates generally would tend to result in a
decrease in our net interest income. We have taken steps to mitigate this risk such as holding
fewer longer-term residential mortgages as well as investing excess funds in shorter-term
investments.
Changes in interest rates also affect the value of our interest-earning assets and in
particular our investment securities available for sale. Generally, the value of our investment
securities fluctuates inversely with changes in interest rates. At December 31, 2009, our
investment securities available for sale totaled $114.5 million. Unrealized losses on our
securities available for sale totaled $3.3 million and are reported in other comprehensive income
as a separate component of our stockholders' equity. Decreases in the fair value of our securities
available for sale, therefore, could have an adverse effect on our stockholders' equity or our
earnings if the decrease in fair value is deemed to be other than temporary.
Changes in interest rates may also affect the average life of our loans and mortgage-related
securities. Decreases in interest rates can result in increased prepayments of loans and
mortgage-related securities, as borrowers refinance to reduce borrowing costs. Under these
circumstances, we are subject to reinvestment risk to the extent that we are unable to reinvest the
cash received from such prepayments at rates that are comparable to the rates on our existing loans
and securities. Additionally, increases in interest rates may decrease loan demand and make it more
difficult for borrowers to repay adjustable rate loans.
A majority of our real estate loans held for investment are adjustable-rate loans. Any rise
in market interest rates may result in increased payments for borrowers who have adjustable rate
mortgage loans, increasing the possibility of default. In addition, although adjustable-rate
mortgage loans help make our loan portfolio more responsive to changes in interest rates, the
extent of this interest sensitivity is limited by the annual and lifetime interest rate adjustment
limits. At December 31, 2009, approximately 60.1% of our total loans had adjustable rates of
interest.
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We could record future losses on our securities portfolio.
During the year ended December 31, 2009, we recognized $2.9 million of impairment losses on
securities, of which $600,000 was recognized as other comprehensive loss in the equity section of
our balance sheet, and $2.3 million was recognized in our income statement. At December 31, 2009,
we held trust preferred securities, corporate debt securities and non-government agency
collateralized mortgage obligations with unrealized losses of $3.5 million, $780,000 and $979,000,
respectively.
A number of factors or combinations of factors could require us to conclude in one or more
future reporting periods that an unrealized loss that exists with respect to these securities
constitutes an impairment that is other than temporary, which could result in material losses to
us. These factors include, but are not limited to, continued failure by the issuer to make
scheduled interest payments, an increase in the severity of the unrealized loss on a particular
security, an increase in the continuous duration of the unrealized loss without an improvement in
value or changes in market conditions and/or industry or issuer specific factors that would render
us unable to forecast a full recovery in value. In addition, the fair values of securities could
decline if the overall economy and the financial condition of some of the issuers continues to
deteriorate and there remains limited liquidity for these securities.
We also hold investment securities for which the fair value option has been elected, which are
considered trading securities. Changes in the fair value of these securities are recorded in
earnings and may result in higher volatility in our earnings.
If our non-performing assets increase, our earnings will suffer.
At December 31, 2009, our non-performing assets (which consist of non-accrual loans, loans 90
days or more delinquent, foreclosed real estate assets and non-accruing investment securities)
totaled $2.4 million, which is an increase of $1.9 million over non-performing assets at December
31, 2008. Our non-performing assets adversely affect our net income in various ways. We do not
record interest income on non-accrual loans or investments or on real estate owned. We must reserve
for probable losses, which are established through a current period charge to income in the
provision for loan losses, and from time to time, write down the value of properties in our other
real estate owned portfolio to reflect changing market values. Additionally, there are legal fees
associated with the resolution of problem assets as well as carrying costs such as taxes, insurance
and maintenance related to our other real estate owned. Further, the resolution of non-performing
assets requires the active involvement of management, which can distract us from the overall
supervision of operations and other income-producing activities of Oneida Savings Bank. Finally, if
our estimate of the allowance for loan losses is inadequate, we will have to increase the allowance
accordingly.
Increases to the allowance for loan losses would cause our earnings to decrease.
Our customers may not repay their loans according to the original terms, and the collateral
securing the payment of these loans may be insufficient to repay the remaining principal balance of
the loan. Hence, we may experience significant loan losses, which could have a material adverse
effect on our operating results. We make various assumptions and judgments about the collectability
of our loan portfolio, including the creditworthiness of our borrowers and the value of the real
estate and other assets serving as collateral for the repayment of loans. In determining the amount
of the allowance for loan losses, we rely on loan quality reviews, past loss experience, and an
evaluation of economic conditions, among other factors. If our assumptions prove to be incorrect,
our allowance for loan losses may not be sufficient to cover losses inherent in our loan portfolio,
which would require us to make additions to the allowance. Material additions to the allowance
would materially decrease our net income.
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Our emphasis on the origination of commercial real estate and business loans is one of the
more significant factors in determining the amount of our allowance for loan losses. As we continue
to emphasize the origination of these loans, additional provisions for loan losses may be necessary
which would decrease our earnings.
Bank regulators periodically review our allowance for loan losses and may require us to
increase our provision for loan losses or recognize further loan charge-offs. Any increase in our
allowance for loan losses or loan charge-offs as required by these regulatory authorities would
have an adverse effect on our results of operations and/or financial condition.
Commercial real estate and business loans increase our exposure to credit risks.
At December 31, 2009, our portfolio of commercial real estate and multi-family loans totaled
$68.1 million, or 22.8% of total loans, and our commercial business loans totaled $38.8 million, or
13.0% of total loans. We plan to continue to emphasize the origination of these types of loans.
Commercial real estate and commercial business loans generally expose us to a greater risk of
nonpayment and loss than one-to-four family residential real estate lending because repayment of
such loans often depends on the successful business operations and income stream of the borrowers.
Additionally, such loans typically involve larger loan balances to single borrowers or groups of
related borrowers compared to residential real estate loans. Many of our borrowers have more than
one commercial loan outstanding with us. Consequently, an adverse development with respect to one
loan or one credit relationship may expose us to a significantly greater risk of loss compared to
an adverse development with respect to a one-to-four family residential real estate loan. Finally,
if we foreclose on a commercial real estate or commercial business loan, our holding period for the
collateral, if any, typically is longer than for one-to-four family residential mortgage loans
because there are fewer potential purchasers of the collateral.
We target our business lending and marketing strategy towards small to medium-sized
businesses. These small to medium-sized businesses generally have fewer financial resources in
terms of capital or borrowing capacity than larger entities. If general economic conditions
negatively impact these businesses, our results of operations and financial condition may be
adversely affected.
Our loan portfolio has greater risk due to the substantial number of home equity loans and consumer
loans.
At December 31, 2009, our home equity loans totaled $43.0 million, or 14.4% of our total loan
portfolio. Our home equity loans are primarily secured by second mortgages, and the combined
loan-to-value ratio (first and second mortgage liens) for home equity loans may have been as high
as 90% at the time of origination and may be higher at present. At December 31, 2009, our consumer
loans totaled $43.0 million, or 14.4% of our total loan portfolio, of which $39.1 million consisted
of automobile loans. Our automobile loans include a substantial number of automobile loans that
are referred to us by participating automobile dealerships located in our market area, although our
lending staff underwrites and approves such loans. Our consumer loan portfolio also includes
automobile loans originated directly by us, as well as unsecured loans and loans secured by other
personal property. Home equity loans and consumer loans generally have greater risk than
one-to-four family residential mortgage loans, particularly in the case of loans that are secured
by second mortgages or by rapidly depreciable assets, such as automobiles, or that are unsecured.
In these cases, we face the risk that collateral, when we have it, for a defaulted loan may not
provide an adequate source of repayment of the outstanding loan balance. Particularly with respect
to our home equity loans, any decrease in real estate values that adversely affect the value of the
property serving as collateral for our loans would have a greater effect on the value of collateral
securing a second mortgage. Thus, the recovery of such property could be insufficient to compensate
us for the value of these loans.
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As a result of our large portfolio of home equity loans and consumer loans, it may become
necessary to increase our provision for loan losses, which could reduce our profits.
Municipal deposits are price sensitive and could result in an increase in interest expense or
funding fluctuations.
In recent years we have had significant growth in our municipal deposits from sources within
our market area. These deposits are a price sensitive source of funds from both an interest and
service charge perspective. We may experience a sudden increase in interest expense if market
interest rates rise suddenly or risk the possibility of deposit outflow if we are unwilling to
price these deposits as aggressively as our competition. This liquidity risk may require us to
sell the investment securities collateralizing the municipal deposits at a loss or to access higher
cost borrowings which would result in an increase in our interest expense.
Our operations may be adversely affected if we are unable to hire and retain qualified employees.
Our performance is largely dependent on the talents and efforts of our employees. Our
continued ability to compete effectively in our businesses and to expand into new businesses and
geographic regions depends on our ability to attract, retain and motivate our employees.
Competition for qualified employees is often intense. Moreover, future laws or regulations
limiting the amount of compensation financial institutions may pay to senior management may
adversely affect our ability to hire and retain qualified employees.
We have continued to increase total revenue and net income from non-banking sources such as
insurance commissions and employee benefit consulting and services. Key employees provide
expertise in the management of these business lines and develop and maintain customer
relationships. The loss of those key employees would adversely affect the growth of our
non-banking businesses and their continued profitability.
Conditions in insurance markets could adversely affect our earnings.
As we have diversified our sources of income, we have become increasingly reliant on
non-interest income, particularly insurance fees and commissions. Revenue from these sources
could be negatively affected by fluctuating premiums in the insurance markets or other factors
beyond our control. Other factors that affect our insurance revenue are the profitability and
growth of our clients, continued development of new products and services, as well as our access to
new markets. Our insurance revenues and profitability may also be adversely affected by regulatory
developments impacting the healthcare and insurance markets, possibly including recent legislative
proposals relating to national health insurance.
We hold certain intangible assets that in the future could be classified as either partially or
fully impaired, which would reduce our earnings and the book values of these assets.
We test our intangible assets for impairment at least annually. Our impairment testing
incorporates the current market price of our common stock, the estimated fair value of our assets
and liabilities, and certain information of similar companies. It is possible that future
impairment testing could result in a decline in value of our intangible assets which would
adversely affect our financial condition. If we determine an impairment exists at a given point in
time, our earnings and the book value of the related intangibles would be reduced by the amount of
the impairment. If an impairment loss is recorded, it will have little or no impact on the
tangible book value of our shares of common stock or our regulatory capital levels. If we acquire
additional financial institutions or financial services companies, it is likely that the amount of
goodwill included in our intangible assets will increase.
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Strong competition may limit our growth and profitability.
Competition in the banking and financial services industry is intense. We compete with
commercial banks, savings institutions, mortgage brokerage firms, credit unions, finance companies,
mutual funds, insurance companies, and brokerage and investment banking firms operating locally and
elsewhere. Many of these competitors (whether regional or national institutions) have substantially
greater resources and lending limits than we have and may offer certain services that we do not or
cannot provide. Our profitability depends upon our ability to successfully compete in our market
area.
Higher Federal Deposit Insurance Corporation insurance premiums and special assessments will
adversely affect our earnings.
Recent bank failures coupled with the severe economic recession and continued weakness in the
national economy have significantly reduced the deposit insurance fund's reserve ratio. On February
27, 2009, the Federal Deposit Insurance Corporation issued a final rule that alters the way the
Federal Deposit Insurance Corporation calculates federal deposit insurance assessment rates. Under
the rule, the Federal Deposit Insurance Corporation first establishes an institution's initial base
assessment rate. This initial base assessment rate ranges from 12 to 45 basis points, depending on
the risk category of the institution. The Federal Deposit Insurance Corporation then adjusts the
initial base assessment (higher or lower) to obtain the total base assessment rate. The
adjustments to the initial base assessment rate are based upon an institution's levels of unsecured
debt, secured liabilities, and brokered deposits. The total base assessment rate ranges from 7 to
77.5 basis points of the institution's deposits. In addition, on May 22, 2009, the Federal Deposit
Insurance Corporation adopted a final rule levying a five basis point special assessment on each
insured depository institution's assets minus Tier 1 capital as of June 30, 2009. We recorded an
expense of $258,000 during the quarter ended June 30, 2009, to reflect the special assessment. Any
further special assessments that the Federal Deposit Insurance Corporation levies will be recorded
as an expense during the appropriate period.
The Federal Deposit Insurance Corporation also has adopted a rule pursuant to which all
insured depository institutions were required to prepay their estimated assessments for the fourth
quarter of 2009, and for all of 2010, 2011 and 2012. This pre-payment was due on December 30,
2009. The assessment rate for the fourth quarter of 2009 and for 2010 was based on each
institution's total base assessment rate for the third quarter of 2009, modified to assume that the
assessment rate in effect on September 30, 2009 had been in effect for the entire third quarter,
and the assessment rate for 2011 and 2012 was equal to the modified third quarter assessment rate
plus an additional three basis points. In addition, each institution's base assessment rate for
each period was calculated using its third quarter assessment base, adjusted quarterly for an
estimated 5% annual growth rate in the assessment base through the end of 2012. We are required to
record the pre-payment as a prepaid expense, which will be amortized to expense over three years.
Our prepayment amount was $2.4 million.
These actions will significantly increase our noninterest expense in 2010 and in future years
as long as the increased premiums continue.
The United States economy remains weak and unemployment levels are high. The prolonged economic
downturn will adversely affect our business and financial results.
The United States experienced a severe economic recession in 2008 and 2009. While economic
growth has resumed recently, the rate of growth has been slow and unemployment remains at very high
levels and is not expected to improve in the near future. Loan portfolio quality has deteriorated
at many financial institutions reflecting, in part, the weak U.S. economy and high unemployment.
In addition, the values of real estate collateral supporting many commercial loans and home
mortgages have declined and may continue to decline. The continuing real estate downturn also has
resulted in reduced demand for the
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construction of new housing and in increased delinquencies in construction, residential and
commercial mortgage loans. Bank and bank holding company stock prices have declined substantially,
and it is significantly more difficult for banks and bank holding companies to raise capital or
borrow in the debt markets.
Continued negative developments in the financial services industry and in the domestic and
international credit markets may significantly affect the markets in which we do business, the
market for and value of our loans and investments, and our ongoing operations, costs and
profitability. Moreover, continued declines in the stock market in general, or stock values of
financial institutions and their holding companies specifically, may adversely affect our stock
performance.
A legislative proposal has been introduced that would eliminate the Office of Thrift Supervision,
Oneida Financial Corp.'s primary federal regulator and the primary federal regulator that Oneida
Financial-New intends to elect, which would require Oneida Financial-New to become a bank holding
company.
Legislation has been proposed that would implement sweeping changes to the current bank
regulatory structure. The proposal would, among other things, merge the Office of Thrift
Supervision into the Office of the Comptroller of the Currency or a new Federal bank regulator. As
discussed further under "Supervision and Regulation—Holding Company Regulation," federal law
allows a state savings bank that qualifies as a Qualified Thrift Lender, such as Oneida Savings
Bank, to elect to be treated as a savings association for purposes of the savings and loan holding
company provisions of the Home Owners' Loan Act of 1933, as amended. Such election results in the
state savings bank's holding company being regulated as a savings and loan holding company by the
Office of Thrift Supervision rather than as a bank holding company regulated by the Board of
Governors of the Federal Reserve System. Pursuant to such an election, Oneida Financial Corp. and
Oneida Financial, MHC are currently regulated by the Office of Thrift Supervision, and we intend
for Oneida Financial-New to be regulated by the Office of Thrift Supervision following the
conversion. If the Office of Thrift Supervision is eliminated, Oneida Financial-New would become a
bank holding company subject to regulation and supervision of the Federal Reserve Board under the
Bank Holding Company Act of 1956, which would include holding company regulatory capital
requirements to which Oneida Financial-New is currently not subject.
Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations
may adversely affect our operations and our income.
In response to the financial crisis of 2008 and early 2009, Congress has taken actions that
are intended to strengthen confidence and encourage liquidity in financial institutions, and the
Federal Deposit Insurance Corporation has taken actions to increase insurance coverage on deposit
accounts. In addition, there have been proposals made by members of Congress and others that would
reduce the amount delinquent borrowers are otherwise contractually obligated to pay under their
mortgage loans and limit an institution's ability to foreclose on mortgage collateral.
The potential exists for additional federal or state laws and regulations, or changes in
policy, affecting lending and funding practices and liquidity standards. Moreover, bank regulatory
agencies have been active in responding to concerns and trends identified in examinations, and have
issued many formal enforcement orders requiring capital ratios in excess of regulatory
requirements. Bank regulatory agencies, such as the New York State Banking Department, the Federal
Deposit Insurance Corporation and the Office of Thrift Supervision, govern the activities in which
we may engage, primarily for the protection of depositors, and not for the protection or benefit of
potential investors. In addition, new laws and regulations may increase our costs of regulatory
compliance and of doing business, and otherwise affect our operations. New laws and regulations may
significantly affect the markets in which we do
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business, the markets for and value of our loans and investments, the fees we can charge, and our
ongoing operations, costs and profitability. Further, legislative proposals limiting our rights as
a creditor could result in credit losses or increased expense in pursuing our remedies as a
creditor.
We operate in a highly regulated environment and may be adversely affected by changes in laws and
regulations.
We are subject to extensive regulation, supervision and examination by the Federal Deposit
Insurance Corporation, the New York State Banking Department and the Office of Thrift Supervision.
Such regulation and supervision govern the activities in which an institution and its holding
companies may engage and are intended primarily for the protection of the insurance fund and
depositors. Regulatory authorities have extensive discretion in connection with their supervisory
and enforcement activities, including the imposition of restrictions on the operation of an
institution, the classification of assets by the institution and the adequacy of an institution's
allowance for loan losses. Any change in such regulation and oversight, whether in the form of
regulatory policy, new regulations or legislation or additional deposit insurance premiums could
have a material impact on our operations. Because our business is highly regulated, the laws and
applicable regulations are subject to frequent change. Any new laws, rules and regulations could
make compliance more difficult or expensive or otherwise adversely affect our business, financial
condition or prospects.
If our investment in the Federal Home Loan Bank of New York becomes impaired, our earnings and
stockholders' equity could decrease.
We are required to own common stock of the Federal Home Loan Bank of New York to qualify for
membership in the Federal Home Loan Bank System and to be eligible to borrow funds under the
Federal Home Loan Bank's advance program. The aggregate carrying value of our Federal Home Loan
Bank common stock as of December 31, 2009 was $2.7 million. Federal Home Loan Bank common stock is
not a marketable security and can only be redeemed by the Federal Home Loan Bank.
Federal Home Loan Banks may be subject to accounting rules and asset quality risks that could
materially lower their regulatory capital. In an extreme situation, it is possible that the
capitalization of a Federal Home Loan Bank, including the Federal Home Loan Bank of New York, could
be substantially diminished or reduced to zero. Consequently, we believe that there is a risk that
our investment in Federal Home Loan Bank of New York common stock could be deemed impaired at some
time in the future, and if this occurs, it would cause our earnings and stockholders' equity to
decrease by the amount of the impairment charge.
System failure or breaches of our information systems could subject us to increased operating costs
as well as litigation and other liabilities.
We rely heavily on communications and information systems to conduct business. Any failure,
interruption or breach in security of these systems could result in failures or disruptions in our
general ledger, deposit, loan and other systems, including risk to data integrity. While we have
policies and procedures designed to prevent or limit the effect of the failure, interruption or
security breach of our information systems, there can be no assurance that any such failures,
interruptions or security breaches will not occur or, if they do occur, that they will be
adequately addressed. The occurrence of any failures, interruptions or security breaches of our
information systems could damage our reputation, result in a loss of customer business, subject us
to additional regulatory scrutiny, or expose us to civil litigation and possible financial
liability, any of which could have a material adverse effect on our financial condition and results
of operations.
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Risks Related to the Offering
The future price of the shares of common stock may be less than the $8.00 purchase price per share
in the offering.
If you purchase shares of common stock in the offering, you may not be able to sell them later
at or above the $8.00 purchase price in the offering. In several cases, shares of common stock
issued by newly converted savings institutions or mutual holding companies have traded below the
initial offering price. The aggregate purchase price of the shares of common stock sold in the
offering will be based on an independent appraisal. The independent appraisal is not intended, and
should not be construed, as a recommendation of any kind as to the advisability of purchasing
shares of common stock. The independent appraisal is based on certain estimates, assumptions and
projections, all of which are subject to change from time to time. After our shares begin trading,
the trading price of our common stock will be determined by the marketplace, and may be influenced
by many factors, including prevailing interest rates, the overall performance of the economy,
investor perceptions of Oneida Financial-New and the outlook for the financial services industry in
general. Price fluctuations in our stock may be unrelated to the operating performance of Oneida
Financial-New.
Our failure to effectively deploy the net proceeds may have an adverse impact on our financial
performance and the value of our common stock.
Oneida Financial-New intends to invest between $12.2 million and $16.8 million of the net
proceeds of the offering (or $19.4 million at the adjusted maximum of the offering range) in Oneida
Savings Bank. Oneida Financial-New may use the remaining net proceeds to invest in short-term
investments, repurchase shares of common stock, pay dividends or for other general corporate
purposes. Oneida Financial-New also expects to use a portion of the net proceeds it retains to
fund a loan for the purchase of shares of common stock in the offering by the employee stock
ownership plan. Oneida Savings Bank may use the net proceeds it receives to fund new loans,
purchase investment securities, acquire financial institutions or financial services companies,
build new branches or acquire branches, or for other general corporate purposes. However, with the
exception of the loan to the employee stock ownership plan, we have not allocated specific amounts
of the net proceeds for any of these purposes, and we will have significant flexibility in
determining the amount of the net proceeds we apply to different uses and the timing of such
applications. We have not established a timetable for reinvesting the net proceeds, and we cannot
predict how long we will require to reinvest the net proceeds.
Our return on equity initially will be low compared to our historical performance. A lower return
on equity may negatively impact the trading price of our common stock.
Net income divided by average stockholders' equity, known as "return on average equity" is a
ratio many investors use to compare the performance of a financial institution to its peers. Our
return on average equity ratio for the year ended December 31, 2009 was 7.41%. Although we expect
that our net income will increase following the offering, we expect that our return on average
equity will decrease as a result of the additional capital that we will raise in the offering. For
example, our pro forma return on equity for the year ended December 31, 2009 is 5.05%, assuming the
sale of shares at the midpoint of the offering range. Over time, we intend to use the net proceeds
from the offering to increase earnings per share and book value per share, without assuming undue
risk, with the goal of achieving a return on equity that is comparable to our historical
performance. This goal may take a number of years to achieve, and we cannot assure you that we
will be able to achieve it. Consequently, you should not expect a return on equity similar to our
current return on equity in the near future. Failure to achieve a competitive return on equity may
make an investment in our common stock unattractive to some investors and may cause our common
stock to trade at lower prices than comparable companies with higher returns on equity. See "Pro
Forma Data" for an illustration of the financial impact of the offering.
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The implementation of the stock-based benefit plan may dilute your ownership interest.
We intend to adopt a new stock-based benefit plan following the offering, subject to receipt
of stockholder approval. This stock-based benefit plan may be funded either through open market
purchases or from the issuance of authorized but unissued shares of common stock of Oneida
Financial-New. While our intention is to fund this plan through open market purchases, stockholders
would experience a 7.17% reduction in ownership interest at the adjusted maximum of the offering
range in the event newly issued shares of our common stock are used to fund stock options and
shares of restricted common stock under the plan in an amount equal to up to 10.0% and 4.0%,
respectively, of the shares sold in the offering. In the event we adopt the plan within one year
following the conversion, shares of common stock reserved for issuance pursuant to awards of
restricted stock and grants of options under the stock-based benefit plan would be limited to 4.0%
and 10.0%, respectively, of the total shares sold in the offering, subject to adjustment as may be
required by Office of Thrift Supervision regulations or policy to reflect stock options or
restricted stock previously granted by Oneida Financial Corp. or Oneida Savings Bank. In the event
we adopt the plan more than one year following the conversion, the plan will not be subject to
these limitations.
Implementing the stock-based benefit plan would increase our compensation and benefit expenses and
adversely affect our profitability.
We intend to adopt a new stock-based benefit plan after the offering, subject to stockholder
approval, which would increase our annual employee compensation and benefit expenses related to the
stock options and shares granted to participants under the new stock-based benefit plan. The
actual amount of compensation and benefit expenses will depend on the number of options and stock
awards actually granted under the plan, the fair market value of our stock or options on the date
of grant, the vesting period and other factors which we cannot predict at this time. If the new
stock-based benefit plan is implemented within one year of the completion of the offering, the
number of shares of common stock reserved for issuance for awards of restricted stock or grants of
options under such stock-based benefit plan may not exceed 4.0% and 10.0%, respectively, of the
shares sold in the offering, subject to adjustment as may be required by Office of Thrift
Supervision regulations or policy to reflect stock options or restricted stock previously granted
by Oneida Financial Corp. or Oneida Savings Bank. If we award restricted shares of common stock or
grant options in excess of these amounts under a stock-based benefit plan adopted more than one
year after the completion of the offering, our costs would increase further.
In addition, we would recognize expense for our employee stock ownership plan when shares are
committed to be released to participants' accounts (i.e., as the loan used to acquire these shares
is repaid), and we would recognize expense for restricted stock awards and stock options over the
vesting period of awards made to recipients. The expense for the new stock-based benefit plan and
employee stock ownership plan in the first year following the offering has been estimated to be
approximately $823,000 ($598,000 after tax) at the adjusted maximum of the offering range as set
forth in the pro forma financial information under "Pro Forma Data," assuming the $8.00 per share
purchase price as fair market value. Actual expenses, however, may be higher or lower, depending on
the price of our common stock. We anticipate that the additional compensation expense for the new
stock-based benefit plan and the employee stock ownership plan will be offset in part by the
reduction in discretionary contributions that we have made in recent years to our employee stock
ownership plan. For example, in the year ended December 31, 2009, we contributed approximately
$300,000 to the employee stock ownership plan to fund the purchase of shares of our common stock in
the open market. It is expected that these planned reductions in discretionary contributions will
offset the contributions that would be made to pay off the new loan and the expense of the new
stock-based benefit plan. For further discussion of our proposed
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stock-based plans, see "Management—Benefits to be Considered Following Completion of the
Conversion."
Various factors may make takeover attempts more difficult to achieve.
Our board of directors has no current intention to sell control of Oneida Financial-New.
Provisions of our articles of incorporation and bylaws, federal regulations, Maryland law and
various other factors may make it more difficult for companies or persons to acquire control of
Oneida Financial-New without the consent of our board of directors. You may want a takeover
attempt to succeed because, for example, a potential acquiror could offer a premium over the then
prevailing price of our common stock. The factors that may discourage takeover attempts or make
them more difficult include the following:
•
Office of Thrift Supervision Regulations
.
Office of Thrift Supervision regulations
prohibit, for three years following the completion of a conversion, the direct or
indirect acquisition of more than 10% of any class of equity security of a savings and
loan holding company regulated by the Office of Thrift Supervision without the prior
approval of the Office of Thrift Supervision.
•
New York Banking Law.
In addition to federal law, the New York State Banking Law
generally requires prior approval of the New York State Banking Board before any action
is taken that causes any entity or person to acquire direct or indirect control of a
banking institution which is organized in New York State. Control is presumed to exist
if any company or person directly or indirectly owns, controls or holds with power to
vote 10% or more of the voting stock of a banking institution or of any company or
person that owns, controls or holds with power to vote 10% or more of the voting stock
of a banking institution.
•
Articles of incorporation of Oneida Financial-New and statutory provisions.
Provisions of the articles of incorporation and bylaws of Oneida Financial-New and
Maryland law may make it more difficult and expensive to pursue a takeover attempt that
management opposes, even if the takeover is favored by a majority of our stockholders.
These provisions also would make it more difficult to remove our current board of
directors or management, or to elect new directors. Specifically, under Maryland law
and Oneida Financial-New's bylaws, any person who acquires more than 10% of the common
stock of Oneida Financial-New without the prior approval of its board of directors may
be prohibited by the board of directors from engaging in any type of business
combination with Oneida Financial-New for a five-year period. Any business combination
after the five year prohibition would be subject to super-majority stockholder approval
or minimum price requirements. Additional provisions include limitations on voting
rights of beneficial owners of more than 10% of our common stock, the election of
directors to staggered terms of three years and not permitting cumulative voting in the
election of directors. Our bylaws also contain provisions regarding the timing and
content of stockholder proposals and nominations and qualification for service on the
board of directors.
•
Restated organization certificate of Oneida Savings Bank.
The restated organization
certificate of Oneida Savings Bank provides that for a period of five years from the
closing of the conversion and offering, no person other than Oneida Financial-New may
offer directly or indirectly to acquire the beneficial ownership of more than 10% of
any class of equity security of Oneida Savings Bank. This provision does not apply to
any tax-qualified employee benefit plan of Oneida Savings Bank or Oneida Financial-New
or
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to an underwriter or member of an underwriting or selling group involving the public
sale or resale of securities of Oneida Financial-New or any of its subsidiaries, so
long as after the sale or resale, no underwriter or member of the selling group is a
beneficial owner, directly or indirectly, of more than 10% of any class of equity
securities of Oneida Savings Bank. In addition, during this five-year period, all
shares owned over the 10% limit may not be voted on any matter submitted to
stockholders for a vote.
•
Issuance of stock options and restricted stock
.
We also intend to issue stock
options and shares of restricted stock to key employees and directors that will require
payments to these persons in the event of a change in control of Oneida Financial-New.
These payments may have the effect of increasing the costs of acquiring Oneida
Financial-New, thereby discouraging future takeover attempts.
•
Employment agreements
.
Oneida Financial Corp. has employment agreements with
certain of its executive officers that will remain in effect following the stock
offering. These agreements may have the effect of increasing the costs of acquiring
Oneida Financial-New, thereby discouraging future takeover attempts.
The ownership interest of management and employees could enable insiders to prevent a merger that
may provide stockholders a premium for their shares.
The shares of common stock that our directors and officers intend to purchase in the offering,
when combined with the shares that they will receive in the exchange for shares of Oneida Financial
Corp. common stock they hold as of
, 2010, may result in management and the board
controlling as much as approximately 12.42% of our outstanding shares of common stock at the
minimum of the offering range. Our employee stock ownership plan is also expected to purchase 4% of
the shares of common stock sold in the stock offering at the minimum of the offering range, which
will be in addition to the 4.03% of our outstanding shares of common stock already held by the
employee stock ownership plan as of
, 2010. Additional stock options and shares of
common stock would also be granted to our directors and employees if a new stock-based incentive
plan is adopted in the future. This would result in management and employees controlling a
significant percentage of our shares of common stock. If these individuals were to act together,
they could have significant influence over the outcome of any stockholder vote. This voting power
may discourage or prevent a potential sale of Oneida Financial-New that our stockholders may
desire.
There may be a decrease in stockholders' rights for existing stockholders of Oneida Financial Corp.
As a result of the conversion, existing stockholders of Oneida Financial Corp. will become
stockholders of Oneida Financial-New. In addition to the provisions discussed above that may
discourage takeover attempts that are favored by stockholders, some rights of stockholders of
Oneida Financial-New will be reduced compared to the rights stockholders currently have in Oneida
Financial Corp. The reduction in stockholder rights results from differences between the federal
and Maryland charters and bylaws, and from distinctions between federal and Maryland law. Many of
the differences in stockholder rights under the articles of incorporation and bylaws of Oneida
Financial-New are not mandated by Maryland law but have been chosen by management as being in the
best interests of Oneida Financial-New and its stockholders. The articles of incorporation and
bylaws of Oneida Financial-New include the following provisions: (i) greater lead time required
for stockholders to submit proposals for new business or to nominate directors; and (ii) approval
by at least 80% of outstanding shares of capital stock entitled to vote generally is required to
amend the bylaws and certain provisions of the articles of incorporation. See "Comparison of
Stockholders' Rights For Existing Stockholders of Oneida Financial Corp." for a discussion of these
differences.
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You may not revoke your decision to purchase Oneida Financial-New common stock in the subscription
offering after you send us your subscription.
Funds submitted or automatic withdrawals authorized in the connection with a purchase of
shares of common stock in the subscription offering will be held by us until the completion or
termination of the conversion and offering, including any extension of the expiration date.
Because completion of the conversion and offering will be subject to regulatory approvals and an
update of the independent appraisal prepared by RP Financial, LC., among other factors, there may
be one or more delays in the completion of the conversion and offering. Orders submitted in the
subscription offering are irrevocable, and subscribers will have no access to subscription funds
unless the offering is terminated, or extended beyond [extension date], or the number of shares to
be sold in the offering is increased to more than 5,207,344 shares or decreased to fewer than
3,346,875 shares.
There may be a limited market for our common stock, which may lower our stock price and make it
more difficult for investors to sell their shares of our common stock.
We currently trade on the Nasdaq Capital Market and plan to trade on the Nasdaq Global Market
following the conversion. However, we cannot guarantee that the shares of common stock will be
regularly traded. Even if a liquid market develops for our common stock, there is no assurance that
it can be maintained. An active, orderly trading market depends on the presence and participation
of willing buyers and sellers which neither Oneida Financial-New nor the market makers in the
common stock can control. This may affect your ability to sell your shares on short notice, and
the sale of a large number of shares at one time could temporarily depress the market price of our
common stock. For these reasons, our common stock should not be viewed as a short-term investment.
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Table of Contents
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
OF ONEIDA FINANCIAL CORP.
The summary financial information presented below is derived in part from the consolidated
financial statements of Oneida Financial Corp. The following is only a summary and you should read
it in conjunction with the consolidated financial statements and notes beginning on page F-1. The
information at December 31, 2009 and 2008 and for the fiscal years ended December 31, 2009, 2008
and 2007 is derived in part from the audited consolidated financial statements of Oneida Financial
Corp. that appear in this prospectus. The information at December 31, 2007, 2006 and 2005 and for
the fiscal years ended December 31, 2006 and 2005 is derived in part from audited consolidated
financial statements that do not appear in this prospectus.
At December 31,
2009
2008
2007
2006
2005
(In thousands)
Selected Financial Condition Data:
Total assets
$
590,506
$
540,130
$
522,315
$
442,937
$
436,761
Cash and cash equivalents
39,537
13,294
16,461
18,710
12,877
Loans receivable, net
295,839
302,492
284,418
247,441
236,077
Mortgage-backed securities
65,737
74,316
46,569
29,064
29,074
Investment securities
96,487
60,446
95,825
85,736
106,455
Trading securities
7,627
5,941
—
—
—
Goodwill and other intangibles
24,813
25,063
25,434
19,870
14,364
Interest bearing deposits
426,368
364,911
334,444
260,173
250,142
Non-interest bearing deposits
62,997
60,787
65,685
53,097
51,044
Borrowed funds
31,000
52,825
56,400
65,400
77,270
Total stockholders' equity
59,116
54,829
59,400
58,460
53,648
Years Ended December 31,
2009
2008
2007
2006
2005
(In thousands, except per share amounts)
Selected Operating Data:
Total interest income
$
25,001
$
26,734
$
25,673
$
22,261
$
21,012
Total interest expense
7,574
11,081
12,028
9,446
7,687
Net interest income
17,427
15,653
13,645
12,815
13,325
Provision for loan losses
760
525
—
280
360
Net interest income after provision
for loan losses
16,667
15,128
13,645
12,535
12,965
Net investment (losses) gains
(1,507
)
(959
)
353
308
275
Change in fair value of trading
securities
1,725
(7,675
)
—
—
—
Non-interest income
20,884
18,318
17,838
16,671
11,617
Non-interest expense
31,975
28,171
26,416
23,407
19,496
Intangible amortization
470
541
548
383
113
Income (loss) before income taxes
5,324
(3,900
)
4,872
5,724
5,248
Income tax provision (benefit)
1,211
(2,223
)
1,368
1,526
1,390
Net income (loss)
$
4,113
$
(1,677
)
$
3,504
$
4,198
$
3,858
Earnings (loss) per share — basic
$
0.53
$
(0.22
)
$
0.45
$
0.55
$
0.51
Earnings (loss) per share — diluted
$
0.52
$
(0.22
)
$
0.45
$
0.54
$
0.50
Cash dividends paid
$
0.48
$
0.48
$
0.48
$
0.45
$
0.41
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At or For the Years Ended December 31,
2009
2008
2007
2006
2005
Selected Financial Ratios and Other Data:
Performance Ratios:
Return on average assets (ratio of net
income (loss) to average total assets)
0.73
%
(0.31
)%
0.71
%
0.96
%
0.89
%
Return on average equity (ratio of net
income (loss) to average equity)
7.41
%
(2.99
)%
5.99
%
7.67
%
7.30
%
Interest rate spread (1)
3.55
%
3.18
%
3.02
%
3.05
%
3.15
%
Net interest margin (2)
3.69
%
3.42
%
3.34
%
3.45
%
3.50
%
Efficiency ratio (3)
82.99
%
111.18
%
82.98
%
78.56
%
77.32
%
Non-interest income to average total assets
3.76
%
1.78
%
3.68
%
3.90
%
2.75
%
Non-interest expense to average total assets
5.78
%
5.27
%
5.46
%
5.46
%
4.53
%
Average interest-earning assets as a ratio
of average interest-bearing liabilities
108.73
%
109.73
%
110.99
%
115.73
%
117.37
%
Average equity to average total assets
9.89
%
10.42
%
11.83
%
12.58
%
12.21
%
Equity to total assets (end of period)
10.01
%
10.15
%
11.37
%
13.20
%
12.28
%
Tangible equity to tangible assets (end of
period)
6.06
%
5.78
%
6.84
%
9.12
%
9.30
%
Dividend payout ratio (4)
40.69
%
(99.10
)%
45.07
%
36.05
%
34.82
%
Asset Quality Ratios:
Nonperforming assets to total assets
0.41
%
0.09
%
0.07
%
0.01
%
0.05
%
Nonperforming loans to total loans
0.18
%
0.17
%
0.13
%
0.02
%
0.09
%
Net charge-offs to average loans
0.16
%
0.14
%
0.04
%
0.06
%
0.17
%
Allowance for loan losses to loans
receivable, net
0.98
%
0.87
%
0.88
%
0.84
%
0.83
%
Allowance for loan losses to nonperforming
loans
526.50
%
511.50
%
669.60
%
4,080.39
%
870.67
%
Bank Regulatory Capital Ratios:
Total capital (to risk-weighted assets)
10.73
%
10.21
%
10.18
%
13.36
%
13.64
%
Tier I capital (to risk-weighted assets)
10.00
%
9.49
%
9.45
%
12.63
%
12.96
%
Tier I capital (to average assets)
7.19
%
6.64
%
6.60
%
8.89
%
8.80
%
Other Data:
Number of full service offices
12
12
12
8
8
Number of employees (full time equivalent)
318
314
317
277
237
(1)
The average interest rate spread represents the difference between the weighted-average yield
on interest-earning assets and the weighted- average cost of interest-bearing liabilities for
the period.
(2)
The net interest margin represents net interest income as a percent of average
interest-earning assets for the period.
(3)
The efficiency ratio represents non-interest expense divided by the sum of net interest
income and non-interest income, excluding net impairment losses, net investment gains (losses)
and changes in fair value of trading securities.
(4)
Reflects the waiver of dividends by Oneida Financial, MHC.
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FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements, which can be identified by the use of
words such as "estimate," "project," "believe," "intend," "anticipate," "plan," "seek," "expect"
and words of similar meaning. These forward-looking statements include, but are not limited to:
•
statements of our goals, intentions and expectations;
•
statements regarding our business plans, prospects, growth and operating strategies;
•
statements regarding the asset quality of our loan and investment portfolios; and
•
estimates of our risks and future costs and benefits.
These forward-looking statements are based on current beliefs and expectations of our
management and are inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond our control. In addition, these
forward-looking statements are subject to assumptions with respect to future business strategies
and decisions that are subject to change.
The following factors, among others, could cause actual results to differ materially from the
anticipated results or other expectations expressed in the forward-looking statements:
•
general economic conditions, either nationally or in our market areas, that are
worse than expected;
•
competition among depository and other financial institutions;
•
changes in the interest rate environment that reduce our margins or reduce the fair
value of financial instruments;
•
adverse changes in the securities markets;
•
changes in laws or government regulations or policies affecting financial
institutions, including changes in regulatory fees and capital requirements;
•
our ability to enter new markets successfully and capitalize on growth
opportunities;
•
our ability to successfully integrate acquired entities, if any;
•
changes in consumer spending, borrowing and savings habits;
•
changes in accounting policies and practices, as may be adopted by the bank
regulatory agencies and the Financial Accounting Standards Board;
•
our ability to continue to increase and manage our commercial and residential real
estate, multi-family, and commercial and consumer loans;
•
possible impairments of securities held by us;
•
the level of future deposit premium assessments;
34
Table of Contents
•
the impact of the current recession on our loan portfolio (including cash flow
and collateral values), investment portfolio, customers and capital market activities;
•
the impact of the current governmental effort to restructure the U.S. financial and
regulatory system;
•
changes in the financial performance and/or condition of our borrowers; and
•
changes in our organization, compensation and benefit plans.
Because of these and other uncertainties, our actual future results may be materially
different from the results indicated by these forward-looking statements. Please see "Risk
Factors" beginning on page ___.
HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING
Although we cannot determine what the actual net proceeds from the sale of the shares of
common stock in the offering will be until the offering is completed, we anticipate that the net
proceeds will be between $24.4 million and $33.5 million, or $38.8 million if the offering range is
increased by 15%.
A summary of the anticipated net proceeds at the minimum, midpoint, maximum and adjusted
maximum of the offering range and of the distribution of the net proceeds is as follows:
Based Upon the Sale at $8.00 Per Share of
3,346,875 Shares
3,937,500 Shares
4,528,125 Shares
5,207,344 Shares (1)
Percent of Net
Percent of Net
Percent of Net
Percent of Net
Amount
Proceeds
Amount
Proceeds
Amount
Proceeds
Amount
Proceeds
(Dollars in thousands)
Offering proceeds
$
26,775
$
31,500
$
36,225
$
41,659
Less offering expenses
2,347
2,520
2,693
2,892
Net offering proceeds
$
24,428
100.0
%
$
28,980
100.0
%
$
33,532
100.0
%
$
38,767
100.0
%
Distribution of net proceeds:
To Oneida Savings Bank
$
12,214
50.0
%
$
14,490
50.0
%
$
16,766
50.0
%
$
19,383
50.0
%
To fund loan to employee
stock ownership plan
$
1,071
4.4
%
$
1,260
4.3
%
$
1,449
4.3
%
$
1,666
4.3
%
Retained by Oneida
Financial-New(2)
$
11,143
45.6
%
$
13,230
45.7
%
$
15,317
45.7
%
$
17,718
45.7
%
(1)
As adjusted to give effect to an increase in the number of shares, which could occur due to a
15% increase in the offering range to reflect demand for the shares, changes in market or
general financial conditions following the commencement of the offering, or regulatory
considerations.
(2)
In the event the stock-based incentive plan providing for stock awards and stock options is
approved by stockholders, and assuming shares are purchased for the stock awards at $8.00 per
share, an additional $1.1 million, $1.3 million, $1.4 million and $1.7 million of net proceeds
will be used by the holding company at the minimum, midpoint, maximum and adjusted maximum of
the offering range, respectively. In this case, the net proceeds retained by Oneida
Financial-New would be $10.1 million, $12.0 million, $13.9 million and $16.1 million,
respectively, at the minimum, midpoint, maximum and adjusted maximum of the offering range.
Payments for shares of common stock made through withdrawals from existing deposit
accounts will not result in the receipt of new funds for investment but will result in a reduction
of Oneida Savings Bank's deposits. The net proceeds may vary because total expenses relating to
the offering may be more or less than our estimates. For example, our expenses would increase if a
syndicated community offering were used to sell shares of common stock not purchased in the
subscription and community offerings.
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Table of Contents
Oneida Financial-New May Use the Proceeds it Retains From the Offering:
•
to invest in securities;
•
to finance the acquisition of financial institutions or other financial services
companies, including insurance agencies, as opportunities arise, although we do not
currently have any agreements or understandings regarding any specific acquisition
transaction;
•
to fund a loan to the employee stock ownership plan to purchase shares of common
stock in the offering (between $1.1 million and $1.4 million, or $1.7 million if the
offering is increased by 15%);
•
to pay cash dividends to stockholders;
•
to repurchase shares of our common stock; and
•
for other general corporate purposes.
Initially, a substantial portion of the net proceeds will be invested in short-term
investments, investment-grade debt obligations and mortgage-backed securities.
Under current Office of Thrift Supervision regulations, we may not repurchase shares of our
common stock during the first year following the completion of the conversion, except when
extraordinary circumstances exist and with prior regulatory approval.
Oneida Savings Bank May Use the Net Proceeds it Receives From the Offering:
•
to fund new loans, including one-to-four family residential mortgage loans,
commercial real estate and commercial business loans, home equity loans and automobile
and other consumer loans;
•
to expand its retail banking franchise by acquiring new branches or by acquiring
other financial institutions or other financial services companies, including insurance
agencies, as opportunities arise, although we do not currently have any agreements to
acquire a financial institution or other entity;
•
to enhance existing products and services and to support the development of new
products and services;
•
to invest in securities; and
•
for other general corporate purposes.
Initially, a substantial portion of the net proceeds will be invested in short-term
investments, investment-grade debt obligations and mortgage-backed securities.
Our return on equity may be relatively low until we are able to effectively reinvest the
additional capital raised in the offering. Until we can increase our net interest income and
non-interest income, our return on equity may be below the industry average, which may negatively
affect the value of our common stock. See "Risk Factors—Our return on equity initially will be low
compared to our historical performance. A lower return on equity may negatively impact the trading
price of our common stock."
36
Table of Contents
OUR DIVIDEND POLICY
Oneida Financial Corp. has paid a semiannual cash dividend since August 1999. During the six
months ended December 31, 2009, Oneida Financial Corp. paid a semiannual cash dividend of $0.24 per
share, which equals $0.48 per share on an annualized basis. After the conversion, we intend to
continue to pay an annual cash dividend of $0.48, payable quarterly. This dividend would represent
a 6% annual yield based on the initial offering price of $8.00 per share. However, after the
conversion, the dividend rate and the continued payment of dividends will primarily depend on our
earnings, alternative uses for capital, our capital requirements, acquisition opportunities, our
financial condition and results of operations and, to a lesser extent, statutory and regulatory
limitations, tax considerations and general economic conditions. No assurance can be given that we
will continue to pay dividends or that they will not be reduced in the future. Additionally, we
cannot guarantee that the amount of dividends that we pay after the conversion and offering will be
equal to the per share dividend amount that Oneida Financial Corp. shareholders currently receive.
Under the plan of conversion and reorganization, Oneida Financial-New will not be permitted to
pay dividends on its capital stock if its stockholder's equity would be reduced below the amount of
the liquidation account established in connection with the conversion. See "The Conversion and
Offering—Liquidation Rights." Oneida Financial-New will also be subject to state law limitations
on the payment of dividends. Maryland law generally limits dividends to an amount equal to the
excess of our capital surplus over payments that would be owed upon dissolution to stockholders
whose preferential rights upon dissolution are superior to those receiving the dividend, and to an
amount that would not make us insolvent. In addition, pursuant to Office of Thrift Supervision
regulations, during the three-year period following the conversion, we will not take any action to
declare an extraordinary dividend to stockholders that would be treated by recipients as a tax-free
return of capital for federal income tax purposes.
Funds from which Oneida Financial-New may pay dividends will include the net proceeds retained
by it and earnings thereon, as well as dividends from Oneida Savings Bank. Oneida Savings Bank will
not be permitted to make a capital distribution to Oneida Financial-New if after making such
distribution it would be undercapitalized. Under New York Banking Law, Oneida Savings Bank may
generally only pay dividends out of net profits. The approval of the Superintendent is required if
the total of all dividends declared in any calendar year will exceed net profits for that year plus
the retained net profits of the preceding two years, less any required transfer to surplus or a
fund for the retirement of any preferred stock. In addition, no dividends may be declared,
credited or paid if the effect thereof would cause Oneida Savings Bank's capital to be reduced
below the amount required by the Superintendent or the Federal Deposit Insurance Corporation.
For information concerning additional federal and state law and regulations regarding the
ability of Oneida Savings Bank to make capital distributions, including the payment of dividends to
Oneida Financial Corp., see "Taxation—Federal Taxation" and "Supervision and Regulation—Federal
Banking Regulation."
See "Selected Consolidated Financial and Other Data of Oneida Financial Corp." and "Market for
the Common Stock" for information regarding our historical dividend payments.
MARKET FOR THE COMMON STOCK
Oneida Financial Corp.'s common stock is currently listed on the Nasdaq Capital Market under
the symbol "ONFC." Upon completion of the conversion, we expect the common stock of Oneida
Financial-New will trade on the Nasdaq Global Market under the symbol "ONFCD" for a period of 20
trading days after the completion of the offering. Thereafter, the trading symbol will revert to
"ONFC." To list our stock on the Nasdaq Global Market, we are required to have at least three
broker-dealers who will make a market in our common stock. Oneida Financial Corp. currently has
more than three market
37
Table of Contents
makers, including Stifel, Nicolaus & Company, Incorporated. Stifel, Nicolaus & Company,
Incorporated has advised us that it intends to make a market in our common stock following the
offering, but it is under no obligation to do so.
The development of a public market having the desirable characteristics of depth, liquidity
and orderliness depends on the existence of willing buyers and sellers, the presence of which is
not within our control or that of any market maker. The number of active buyers and sellers of our
common stock at any particular time may be limited, which may have an adverse effect on the price
at which our common stock can be sold. There can be no assurance that persons purchasing the
common stock will be able to sell their shares at or above the $8.00 price per share in the
offering. Purchasers of our common stock should have a long-term investment intent and should
recognize that there may be a limited trading market in our common stock.
The following table sets forth the high and low trading prices for shares of Oneida Financial
Corp. common stock and cash dividends paid per share for the periods indicated. As of
, there were
publicly held shares of Oneida Financial Corp. common stock
issued and outstanding (excluding shares held by Oneida Financial, MHC). In connection with the
conversion, each existing publicly held share of common stock of Oneida Financial Corp. will be
converted into a right to receive a number of shares of Oneida Financial-New common stock, based
upon the exchange ratio that is described in other parts of this prospectus. See "The Conversion
and Offering—Share Exchange Ratio for Current Stockholders."
At the close of business on
, there were
shares outstanding. The
high and low closing prices for the quarterly periods noted below were obtained from the Nasdaq
Capital Market.
Price Per Share
Cash
High
Low
Dividend Per Share
2010
Second quarter (through
)
$
$
$
First quarter
2009
Fourth quarter
$
9.95
$
8.25
$
—
Third quarter
11.75
7.06
0.24
Second quarter
11.25
7.35
—
First quarter
9.00
7.00
0.24
2008
Fourth quarter
$
11.50
$
6.99
$
—
Third quarter
11.25
8.80
0.24
Second quarter
11.49
9.00
—
First quarter
11.37
8.71
0.24
On February 8, 2010, the business day immediately preceding the public announcement of
the conversion, and on
, the closing prices of Oneida Financial Corp. common
stock as reported on the Nasdaq Capital Market were $9.32 per share and $
per share,
respectively. At
, Oneida Financial Corp. had approximately
stockholders of
record. On the effective date of the conversion, all publicly held shares of Oneida Financial Corp.
common stock, including shares of common stock held by our officers and directors, will be
converted automatically into and become the right to receive a number of shares of Oneida
Financial-New common stock determined pursuant to the exchange ratio. See "The Conversion and
Offering—Share Exchange Ratio for Current Stockholders." All currently outstanding options to
purchase shares of Oneida Financial Corp. common stock will expire on April 25, 2010, unless
previously exercised.
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Table of Contents
HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE
At December 31, 2009, Oneida Savings Bank exceeded all of the applicable regulatory capital
requirements and was considered "well capitalized." The table below sets forth the historical
equity capital and regulatory capital of Oneida Savings Bank at December 31, 2009, and the pro
forma regulatory capital of Oneida Savings Bank, after giving effect to the sale of shares of
common stock at a $8.00 per share purchase price and assuming the receipt by Oneida Savings Bank of
between $12.2 million and $19.4 million of the net offering proceeds at the minimum and maximum, as
adjusted, of the offering range, respectively.
Pro Forma at December 31, 2009, Based Upon the Sale in the Offering of
Oneida Savings Bank Historical at
December 31, 2009
3,346,875 Shares
3,937,500 Shares
4,528,125 Shares
5,207,344 Shares (1)
Percent of Assets
Percent of Assets
Percent of Assets
Percent of Assets
Percent of Assets
Amount
(2)
Amount
(2)
Amount
(2)
Amount
(2)
Amount
(2)
(Dollars in thousands)
Equity capital
$
57,176
9.68
%
$
68,476
11.36
%
$
70,563
11.66
%
$
72,650
11.96
%
$
75,050
12.30
%
Core (leverage)
capital (3)
$
39,734
7.19
%
$
51,034
9.03
%
$
53,121
9.37
%
$
55,208
9.69
%
$
57,608
10.07
%
Core (leverage)
requirement (4)
22,101
4.00
22,596
4.00
22,687
4.00
22,778
4.00
22,883
4.00
Excess
$
17,633
3.19
%
$
28,438
5.03
%
$
30,434
5.37
%
$
32,430
5.69
%
$
34,725
6.07
%
Tier 1 risk-based
capital (5) (3)
$
39,734
10.00
%
$
51,034
12.76
%
$
53,121
13.27
%
$
55,208
13.77
%
$
57,608
14.35
%
Tier 1 risk-based
requirement (4)
15,900
4.00
15,999
4.00
16,017
4.00
16,035
4.00
16,056
4.00
Excess
$
23,834
6.00
%
$
35,035
8.76
%
$
37,104
9.27
%
$
39,173
9.77
%
$
41,552
10.35
%
Total risk-based
capital (5) (3)
$
42,635
10.73
%
$
53,935
13.48
%
$
56,022
13.99
%
$
58,109
14.50
%
$
60,509
15.07
%
Risk-based
requirement (4)
31,800
8.00
31,997
8.00
32,034
8.00
32,070
8.00
32,112
8.00
Excess
$
10,835
2.73
%
$
21,938
5.48
%
$
23,988
5.99
%
$
26,039
6.50
%
$
28,397
7.07
%
Net Proceeds Infused
$
12,214
$
14,490
$
16,766
$
19,383
MHC capital
contribution
157
157
157
157
Less: ESOP
(1,071
)
(1,260
)
(1,449
)
(1,666
)
Pro Forma Increase
$
11,300
$
13,387
$
15,474
$
17,874
(1)
As adjusted to give effect to an increase in the number of shares that could occur
due to a 15% increase in the offering range to reflect demand for the shares, changes
in market or general financial conditions following the commencement of the offering,
or regulatory considerations.
(2)
Tangible and core capital levels are shown as a percentage of total adjusted assets.
Risk-based capital levels are shown as a percentage of risk-weighted assets.
(3)
Pro forma capital levels assume that the employee stock ownership plan purchases 4% of the
shares of common stock to be outstanding immediately following the stock offering with funds
we lend. Pro forma GAAP and regulatory capital have been reduced by the amount required to
fund this plan. See "Management—Tax-Qualified Benefit Plans" for a discussion of the employee
stock ownership plan.
(4)
The Federal Deposit Insurance Corporation requires a Tier 1 risk-based capital ratio of 4% or
greater, a leverage capital ratio of 4% or greater, and a total risk-based capital ratio of 8%
or greater.
(5)
Pro forma amounts and percentages assume net proceeds are invested in assets that carry a 20%
risk weighting.
39
Table of Contents
CAPITALIZATION
The following table presents the historical consolidated capitalization of Oneida Financial
Corp. at December 31, 2009 and the pro forma consolidated capitalization of Oneida Financial-New
after giving effect to the conversion and offering, based upon the assumptions set forth in the
"Pro Forma Data" section.
Pro Forma at December 31, 2009, Based upon the Sale in the Offering of
Oneida Financial
Minimum 3,346,875
Midpoint 3,937,500
Maximum 4,528,125
Maximum as adjusted
Corp. Historical at
Shares at
Shares at $8.00 per
Shares at $8.00 per
5,207,344 Shares at
December 31, 2009
$8.00 per Share
Share
Share
$8.00 per Share (1)
(Dollars in thousands)
Deposits (2)
$
489,365
$
489,208
$
489,208
$
489,208
$
489,208
Borrowed funds
31,000
31,000
31,000
31,000
31,000
Total deposits and borrowed funds
$
520,365
$
520,208
$
520,208
$
520,208
$
520,208
Stockholders' equity:
Preferred stock, $.01 par value,
10,000,000 shares authorized
(post-conversion) (3)
—
—
—
—
—
Common stock, $.01 par value,
30,000,000 shares authorized
(post-conversion); shares to be
issued as reflected (3) (4)
83
61
71
82
94
Additional paid-in capital (3)
19,482
40,861
45,403
49,944
55,166
MHC capital contribution (3)
—
157
157
157
157
Retained earnings (5)
44,024
44,024
44,024
44,024
44,024
Accumulated other comprehensive loss
(3,961
)
(3,961
)
(3,961
)
(3,961
)
(3,961
)
Less:
Treasury stock
(3,071
)
—
—
—
—
Common stock held by employee stock
ownership plan (6)
—
(1,071
)
(1,260
)
(1,449
)
(1,666
)
Common stock held by stock-based
incentive plan (7)
—
(1,071
)
(1,260
)
(1,449
)
(1,666
)
Total stockholders'
equity-controlling interest
56,557
79,000
83,174
87,348
92,148
Non-controlling interest (8)
2,559
2,559
2,559
2,559
2,559
Total stockholders' equity
$
59,116
$
81,559
$
85,733
$
89,907
$
94,707
Pro Forma Shares Outstanding
Total shares outstanding
7,809,420
(9)
6,064,656
7,134,890
8,205,123
9,435,892
Exchange shares issued
—
2,717,781
3,197,390
3,676,998
4,228,548
Shares offered for sale
—
3,346,875
3,937,500
4,528,125
5,207,344
Total stockholders' equity as a
percentage of total assets (2)
10.01
%
13.31
%
13.89
%
14.47
%
15.13
%
Tangible equity to total assets ratio
6.06
%
9.26
%
9.87
%
10.48
%
11.16
%
(1)
As adjusted to give effect to an increase in the number of shares of common stock that
could occur due to a 15% increase in the offering range to reflect demand for shares,
changes in market or general financial conditions following the commencement of the
subscription and community offerings, or regulatory considerations.
(2)
Does not reflect withdrawals from deposit accounts for the purchase of shares of common
stock in the conversion and offering. These withdrawals would reduce pro forma deposits
and assets by the amount of the withdrawals. On a pro forma basis, reflects elimination
of $157,000 of cash in Oneida Financial, MHC held as deposits of Oneida Savings Bank.
(3)
Oneida Financial Corp. currently has 1,000,000 authorized shares of preferred stock and
20,000,000 authorized shares of common stock, par value $0.10 per share. On a pro forma
basis, Oneida Financial-New common stock and additional paid-in capital have been revised
to reflect the number of shares of Oneida Financial-New common stock to be outstanding,
which is 6,064,656 shares, 7,134,890 shares, 8,205,123 shares and 9,435,892 shares at the
minimum, midpoint, maximum and adjusted maximum of the offering range, respectively. On a
pro forma basis, reflects transfer to equity of $157,000 of net assets in Oneida
Financial, MHC.
(4)
No effect has been given to the issuance of additional shares of Oneida Financial-New
common stock pursuant to the exercise of options under a stock-based incentive plan. If
this plan is implemented within the first year after the closing of the offering, an
amount up to 10% of the shares of Oneida Financial-New common stock sold in the offering
will be reserved for issuance upon the exercise of options under the plan. No effect has
been given to the exercise of options currently outstanding. See "Management."
(footnotes continue on following page.)
40
Table of Contents
(5)
The retained earnings of Oneida Savings Bank will be substantially restricted after the
conversion. See "The Conversion and Offering—Liquidation Rights" and "Supervision and
Regulation—Federal Banking Regulation."
(6)
Assumes that 4% of the shares sold in the offering will be acquired by the employee stock
ownership plan financed by a loan from Oneida Financial-New , although we reserve the
right to purchase shares in excess of 4% if necessary to complete the offering at the
minimum of the offering range. The loan will be repaid principally from Oneida Savings
Bank's contributions to the employee stock ownership plan. Since Oneida Financial-New
will finance the employee stock ownership plan debt, this debt will be eliminated through
consolidation and no liability will be reflected on Oneida Financial-New's consolidated
financial statements. Accordingly, the amount of shares of common stock acquired by the
employee stock ownership plan is shown in this table as a reduction of total stockholders'
equity.
(7)
A number of shares of common stock equal to 4.0% of the shares of common stock to be sold
in the offering will be purchased by the stock-based incentive plan in open market
purchases. The funds to be used by the plan to purchase the shares will be provided by
Oneida Financial-New. The dollar amount of common stock to be purchased is based on the
$8.00 per share subscription price in the offering and represents unearned compensation.
This amount does not reflect possible increases or decreases in the value of common stock
relative to the subscription price in the offering. As Oneida Financial-New accrues
compensation expense to reflect the vesting of shares pursuant to the plan, the credit to
capital will be offset by a charge to operations. Implementation of the plan will require
stockholder approval.
(8)
The noncontrolling interest represents the preferred shareholder minority interest in
Oneida Preferred Funding Corp., a real estate investment trust.
(9)
Reflects the total number of shares outstanding as of February 28, 2010.
41
Table of Contents
PRO FORMA DATA
The following table summarizes historical data of Oneida Financial Corp. and pro forma data at
and for the fiscal year ended December 31, 2009. This information is based on assumptions set
forth below and in the tables, and should not be used as a basis for projections of market value of
the shares of common stock following the conversion and offering. Moreover, pro forma
stockholders' equity per share does not give effect to the liquidation account to be established in
the conversion or, in the unlikely event of a liquidation of Oneida Savings Bank, to the tax effect
of the recapture of the bad debt reserve. See "The Conversion and Offering—Liquidation Rights."
The net proceeds in the tables are based upon the following assumptions:
(i)
40% of all shares of common stock will be sold in the subscription and
community offerings, including shares purchased by insiders, with the remaining shares
to be sold in the syndicated community offering;
(ii)
167,000 shares of common stock will be purchased by our executive officers and
directors, and their associates;
(iii)
our employee stock ownership plan will purchase 4.0% of the shares of common
stock sold in the offering, with a loan from Oneida Financial-New. The loan will be
repaid in substantially equal payments of principal and interest over a period of 10
years;
(iv)
Stifel, Nicolaus & Company, Incorporated will receive a fee equal to 1.0% of
the dollar amount of shares of common stock sold in the subscription and community
offerings and 5.5% of the dollar amount of shares sold in the syndicated offering. No
fee will be paid with respect to shares of common stock purchased by our qualified and
non-qualified employee stock benefit plans, or stock purchased by our officers,
directors and employees, and their immediate families; and
(v)
total expenses of the offering, including the marketing fees to be paid to
Stifel, Nicolaus & Company, Incorporated, will be between $2.3 million at the minimum
of the offering range and $2.9 million at the maximum of the offering range, as
adjusted.
We calculated pro forma consolidated net earnings for the fiscal year ended December 31, 2009
as if the estimated net proceeds we received had been invested at the beginning of the year at an
assumed interest rate of 3.30% (2.02% on an after-tax basis). This interest rate was calculated
assuming that 50% of the net proceeds are placed into 15 year conforming mortgage-backed securities
with the remaining 50% of the net proceeds invested in five-year U.S. Treasury securities, all
based on market interest rates prevailing as of December 31, 2009. This method reflects the
approximate use of proceeds anticipated by Oneida Financial-New. The effect of withdrawals from
deposit accounts for the purchase of shares of common stock has not been reflected. Historical and
pro forma per share amounts have been calculated by dividing historical and pro forma amounts by
the indicated number of shares of common stock. No effect has been given in the pro forma
stockholders' equity calculations for the assumed earnings on the net proceeds. It is assumed that
Oneida Financial-New will retain between $11.1 million and $15.3 million of the estimated net
proceeds of the offering, or $17.7 million if the offering range is increased by 15%. The actual
net proceeds from the sale of shares of common stock will not be determined until the offering is
completed. However, we currently estimate the net proceeds to be between $24.4 million and $33.5
million, or $38.8 million if the offering range is increased by 15%.
42
Table of Contents
The following pro forma information may not be representative of the financial effects of the
offering at the dates on which the offering actually occurs, and should not be taken as indicative
of future results of operations. Pro forma consolidated stockholders' equity represents the
difference between the stated amounts of our assets and liabilities. The pro forma stockholders'
equity is not intended to represent the fair market value of the shares of common stock.
At or for the Fiscal Year Ended December 31, 2009
Based upon the Sale at $8.00 Per Share of
3,346,875
3,937,500
4,528,125
5,207,344
Shares
Shares
Shares
Shares (1)
(Dollars in thousands, except per share amounts)
Gross proceeds of offering
$
26,775
$
31,500
$
36,225
$
41,659
Plus: market value of shares issued in the exchange
21,742
25,579
29,416
33,828
Pro forma market capitalization
48,517
57,079
65,641
75,487
Gross proceeds of offering
$
26,775
$
31,500
$
36,225
$
41,659
Less: Expenses
2,347
2,520
2,693
2,892
Estimated Net Proceeds
24,428
28,980
33,532
38,767
Less: Common stock purchased by employee stock
ownership plan
(1,071
)
(1,260
)
(1,449
)
(1,666
)
Less: Common stock purchased by stock-based incentive
plan
(1,071
)
(1,260
)
(1,449
)
(1,666
)
Estimated net proceeds, as adjusted
$
22,286
$
26,460
$
30,634
$
35,435
For the Twelve Months Ended December 31, 2009
Consolidated net earnings:
Historical
$
4,113
$
4,113
$
4,113
$
4,113
Pro forma adjustments:
Income on adjusted net proceeds
451
535
620
717
Employee stock ownership plan (2)
(66
)
(77
)
(89
)
(102
)
Recognition and retention plan (3)
(131
)
(155
)
(178
)
(204
)
Stock option plan (4)
(187
)
(221
)
(254
)
(292
)
Pro forma net income
$
4,180
4,195
$
4,212
$
4,232
Earning per share (5):
Historical
$
0.68
$
0.58
$
0.50
$
0.44
Pro form adjustments:
Income on adjusted net proceeds
0.08
0.08
0.08
0.08
Employee stock ownership plan (2)
(0.01
)
(0.01
)
(0.01
)
(0.01
)
Recognition and retention plan (3)
(0.02
)
(0.02
)
(0.02
)
(0.02
)
Stock option plan (4)
(0.03
)
(0.03
)
(0.03
)
(0.03
)
Pro forma earnings per share (5) (6)
$
0.70
$
0.60
$
0.52
$
0.46
Offering price to pro forma net earnings per share
11.43x
13.33x
15.38x
17.39x
Number of shares used in earnings per share calculations
5,944,169
6,993,140
8,042,111
9,248,427
At December 31, 2009
Stockholders' equity-controlling interest:
Historical
$
56,557
$
56,557
$
56,557
$
56,557
Estimated net proceeds
24,428
28,980
33,532
38,767
Equity increase from MHC
157
157
157
157
Less: Common stock acquired by employee stock
ownership plan (2)
(1,071
)
(1,260
)
(1,449
)
(1,666
)
Less: Common stock acquired by recognition and
retention plan (3)
(1,071
)
(1,260
)
(1,449
)
(1,666
)
Pro forma stockholders equity
79,000
83,174
87,348
92,149
Less: Intangible assets
(24,813
)
(24,813
)
(24,813
)
(24,813
)
Pro forma tangible stockholders' equity
$
54,187
$
58,361
$
62,535
$
67,336
Stockholders' equity per share-controlling interest (7):
Historical
$
9.33
$
7.94
$
6.90
$
6.00
Estimated net proceeds
4.03
4.06
4.09
4.11
Plus: Assets received from the MHC
0.03
0.02
0.02
0.02
Less: Common stock acquired by employee stock
ownership plan (2)
(0.18
)
(0.18
)
(0.18
)
(0.18
)
Less: Common stock acquired by recognition and
retention plan (3)
(0.18
)
(0.18
)
(0.18
)
(0.18
)
Pro forma stockholders' equity per share (6) (7)
$
13.03
$
11.66
$
10.65
$
9.77
Intangible assets per share
$
(4.09
)
$
(3.48
)
$
(3.02
)
$
(2.63
)
Pro forma tangible stockholders' equity per share
(6) (7)
$
8.94
$
8.18
$
7.63
$
7.14
(footnotes begin on following page.)
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Table of Contents
At or for the Fiscal Year Ended December 31, 2009
Based upon the Sale at $8.00 Per Share of
3,346,875
3,937,500
4,528,125
5,207,344
Shares
Shares
Shares
Shares (1)
(Dollars in thousands, except per share amounts)
Offering price as percentage of pro forma stockholders'
equity per share
61.40
%
68.61
%
75.12
%
81.88
%
Offering price as percentage of pro forma tangible
stockholders' equity per share
89.49
%
97.80
%
104.85
%
112.04
%
Number of shares outstanding for pro forma book value
per share calculations
6,064,656
7,134,890
8,205,123
9,435,892
(1)
As adjusted to give effect to an increase in the number of shares that could occur due to
a 15% increase in the offering range to reflect demand for the shares, changes in market and
financial conditions following the commencement of the offering, or regulatory considerations.
(2)
Assumes that 4.0% of shares of common stock sold in the offering will be purchased by
the employee stock ownership plan (although we reserve the right to purchase shares in excess
of 4% if necessary to complete the offering at the minimum of the offering range). For
purposes of this table, the funds used to acquire these shares are assumed to have been
borrowed by the employee stock ownership plan from Oneida Financial-New. Oneida Savings Bank
intends to make annual contributions to the employee stock ownership plan in an amount at
least equal to the required principal and interest payments on the debt. Oneida Savings
Bank's total annual payments on the employee stock ownership plan debt are based upon 10 equal
annual installments of principal and interest. ASC Topic 718 requires that an employer record
compensation expense in an amount equal to the fair value of the shares committed to be
released to employees. The pro forma adjustments assume that the employee stock ownership
plan shares are allocated in equal annual installments based on the number of loan repayment
installments assumed to be paid by Oneida Savings Bank, the fair value of the common stock
remains equal to the subscription price and the employee stock ownership plan expense reflects
an effective combined federal and state tax rate of 38.69%. The unallocated employee stock
ownership plan shares are reflected as a reduction of stockholders' equity. No reinvestment
is assumed on proceeds contributed to fund the employee stock ownership plan. The pro forma
net income further assumes that 13,388, 15,750, 18,113 and 20,829 shares were committed to be
released during the period at the minimum, midpoint, maximum, and adjusted maximum of the
offering range, respectively, and in accordance with ASC Topic 718, only the employee stock
ownership plan shares committed to be released during the period were considered outstanding
for purposes of net income per share calculations. The additional compensation expense noted
above does not give effect to our intention to reduce the amount of discretionary
contributions that we have made in recent years to our employee stock ownership plan. For
example, in the year ended December 31, 2009, we contributed approximately $300,000 to the
employee stock ownership plan to fund the purchase of shares of our common stock in the open
market. It is expected that these planned reductions in discretionary contributions will
offset the contributions made to pay off the new loan.
(3)
If approved by Oneida Financial-New's stockholders, the stock recognition and retention
plan may purchase an aggregate number of shares of common stock equal to 4.0% of the shares to
be sold in the offering subject to adjustment as may be required by Office of Thrift
Supervision regulations or policy to reflect stock options previously granted by Oneida
Savings Bank or Oneida Financial Corp. (or a greater number of shares if the plan is
implemented more than one year after completion of the conversion). Stockholder approval of
the stock recognition and retention plan, and purchases by the plan may not occur earlier than
six months after the completion of the conversion. The shares may be acquired directly from
Oneida Financial-New or through open market purchases. Shares in the stock recognition and
retention plan are assumed to vest over a period of five years. The funds to be used by the
stock recognition and retention plan to purchase the shares will be provided by Oneida
Financial-New. The table assumes that (i) the stock recognition and retention plan acquires
the shares through open market purchases at $8.00 per share, (ii) 20% of the amount
contributed to the stock recognition and retention plan is amortized as an expense during the
fiscal year ended December 31, 2009, and (iii) the stock recognition and retention plan
expense reflects an effective combined federal and state tax rate of 38.69%. Assuming
stockholder approval of the stock recognition and retention plan and that shares of common
stock (equal to 4.0% of the shares sold in the offering) are awarded through the use of
authorized but unissued shares of common stock, stockholders would have their ownership and
voting interests diluted by approximately 2.16% at the maximum of the offering range.
(4)
If approved by Oneida Financial-New's stockholders, the stock option plan may grant
options to acquire an aggregate number of shares of common stock equal to 10% of the shares to
be sold in the offering subject to adjustment as may be required by Office of Thrift
Supervision regulations or policy to reflect stock options previously granted by Oneida
Savings Bank or Oneida Financial Corp. (or a greater number of shares if the plan is
implemented more than one year after completion of the conversion). Stockholder approval of
the stock option plan may not occur earlier than six months after the completion of the
conversion. In calculating the pro forma effect of the stock option plan, it is assumed that
the exercise price of the stock options and the trading price of the common stock at the date
of grant were $8.00 per share, the estimated grant-date fair value determined using the
Black-Scholes option pricing model was $3.10 for each option, the aggregate grant-date fair
value
(footnotes continue on following page.)
44
Table of Contents
(5)
of the stock options was amortized to expense on a straight-line basis over a
five-year vesting period of the options, and that 25% of the amortization expense (or the assumed
portion relating to options granted to directors) resulted in a tax benefit using an assumed tax
rate of 38.69%. The actual expense of the stock option plan will be determined by the grant-date
fair value of the options, which will depend on a number of factors, including the valuation
assumptions used in the option pricing model ultimately adopted. Under the above assumptions,
the adoption of the stock option plan will result in no additional shares under the treasury
stock method for purposes of calculating earnings per share. There can be no assurance that the
actual exercise price of the stock options will be equal to the $8.00 price per share. If a
portion of the shares to satisfy the exercise of options under the stock option plan is obtained
from the issuance of authorized but unissued shares, our net income per share and stockholders'
equity per share would decrease. The issuance of authorized but unissued shares of common stock
pursuant to the exercise of options under such plan would dilute stockholders' ownership and
voting interests by approximately 5.23% at the maximum of the offering range.
(6)
Per share figures include publicly held shares of Oneida Financial Corp. common
stock that will be exchanged for shares of Oneida Financial-New common stock in the
conversion. See "The Conversion and Offering—Share Exchange Ratio for Current
Stockholders." Net income per share computations are determined by taking the number of
shares assumed to be sold in the offering and the number of new shares assumed to be
issued in exchange for publicly held shares and, in accordance with ASC Topic 718,
subtracting the employee stock ownership plan shares which have not been committed for
release during the respective periods. See note 2. The number of shares of common stock
actually sold and the corresponding number of exchange shares may be more or less than the
assumed amounts.
(7)
The retained earnings of Oneida Savings Bank will be substantially restricted after
the conversion. See "Our Dividend Policy," "The Conversion and Offering—Liquidation
Rights" and "Supervision and Regulation—Federal Banking Regulation—Capital Distributions."
(8)
Per share figures include publicly held shares of Oneida Financial Corp. common
stock that will be exchanged for shares of Oneida Financial-New common stock in the
conversion. Stockholders' equity per share calculations are based upon the sum of (i) the
number of subscription shares assumed to be sold in the offering and (ii) shares to be
issued in exchange for publicly held shares at the minimum, midpoint, maximum and adjusted
maximum of the offering range, respectively. The exchange shares reflect an exchange ratio
of 0.7766, 0.9136, 1.0507 and 1.2083 at the minimum, midpoint, maximum and adjusted
maximum of the offering range, respectively. The number of subscription shares actually
sold and the corresponding number of exchange shares may be more or less than the assumed
amounts.
45
Table of Contents
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This discussion and analysis reflects our consolidated financial statements and other relevant
statistical data, and is intended to enhance your understanding of our financial condition and
results of operations. The information in this section has been derived from the audited
consolidated financial statements, which appear beginning on page F-1 of this prospectus. You
should read the information in this section in conjunction with the business and financial
information regarding Oneida Financial Corp. provided in this prospectus.
Overview
Our results of operations depend primarily on our net interest income. Net interest income is
the difference between the interest income we earn on our interest-earning assets, consisting
primarily of loans, investment securities, mortgage-backed securities and other interest-earning
assets (primarily cash and cash equivalents), and the interest we pay on our interest-bearing
liabilities, consisting primarily of deposits and Federal Home Loan Bank advances and other
borrowings. Net interest income is a function of our interest rate spread, which is the difference
between the average yield earned on our interest-earning assets and the average rate paid on our
interest-bearing liabilities, as well as a function of the average balance of interest-earning
assets compared to interest-bearing liabilities. Also contributing to our earnings is noninterest
income, which consists primarily of service charges and fees on loan and deposit products and
services, fees from our insurance agency, benefits consulting and risk management subsidiaries and
fees from trust services, and net gains and losses on sale of investments. Interest income and
noninterest income are offset by provisions for loan losses, general administrative and other
expenses, including employee compensation and benefits and occupancy and equipment costs, as well
as by state and federal income tax expense.
Our results of operations are also significantly affected by general economic and competitive
conditions, particularly with respect to changes in interest rates, government policies and actions
of regulatory authorities. Future changes in applicable law, regulations or government policies may
materially affect our financial condition and results of operations. See "Risk Factors" beginning
on page ___.
Business Strategy
In guiding our operations, we seek to implement various strategies designed to enhance the
institution's profitability consistent with safety and soundness considerations. These strategies
include a continuing focus on our community banking franchise while distinguishing our company as a
complete financial services provider, and by promoting and continuing to expand our insurance,
consulting and risk management businesses. We believe these strategies will enable us to continue
to grow our assets, while providing superior service to our customers, remaining focused on high
asset quality, continuing to grow and diversify revenue and generating favorable returns to our
stockholders. The following are the key elements of our business strategy:
Continuing our Community Oriented Focus
.
We have been committed to meeting the financial
needs of the communities we serve and providing quality service to our customers. We believe we
can be more effective than many of our competitors in serving our customers because of our ability
to promptly and effectively respond to customer needs and inquiries. Our ability to succeed in our
communities is enhanced by the stability of senior management. Senior management has an average
tenure with Oneida Savings Bank of over 20 years and each individual who comprises senior
management has over 25 years experience in the banking industry.
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Table of Contents
Our community focus is further supported by the community service activities of our employees
and the charitable activities of The Oneida Savings Bank Charitable Foundation. Our foundation was
established in December 1998 in connection with our initial public offering. The foundation
provides funds to eligible nonprofit organizations to help them carry out unique, innovative
projects in specific fields of interest. The foundation's goal is to fund projects that will
enhance the quality of life in the communities served by Oneida Savings Bank.
Expanding our Geographic Reach
.
Since 1998, we have grown our traditional community banking
franchise organically and through acquisitions of banks and nonbank corporations that offer trust
services, insurance sales, financial services, employee benefits consulting and risk management
services. The expansion into insurance and other financial services businesses has enabled Oneida
Savings Bank to evolve from a traditional savings bank to a full-service financial services
organization. We plan to continue to seek opportunities to grow our business through a combination
of de novo branching and complementary acquisitions in our existing market and contiguous markets.
We will consider acquisition opportunities that expand our geographic reach in banking, insurance
or other complementary financial service businesses, although we do not currently have any
agreements or understandings regarding any specific acquisition.
Continuing to Improve Earnings and Diversify Income Sources.
We continue to seek ways of
increasing our income by increasing our fee income and other sources of non-interest income through
traditional banking sources and insurance and financial services businesses.
•
Community Banking.
We continue to actively market our core banking products to
attract new fee-based deposit accounts and checking account related services to new
and existing customers. We offer our customers internet banking, an account
overdraft program, e-commerce capabilities and debit cards as an account retention
tool and to increase non-interest income. These products and services represent
continuing sources of fee income. We also emphasize our trust department services
with the expectation that fees generated by the trust department will increase as
the assets under management grow. In addition, we receive fee income from
servicing loans sold in the secondary market.
•
Financial Service Subsidiaries.
In recent years, we have increased the services
and products we offer through our insurance agency, benefits consulting, and risk
management subsidiaries. We initially entered the insurance and financial services
business with the acquisition in 2000 of Bailey & Haskell Associates, Inc., which
operates as an insurance agency subsidiary of Oneida Savings Bank with six New York
offices and an office in South Carolina. We acquired Benefit Consulting Group
LLC, an employee benefits consulting and retirement plan administration firm in
2006. The resulting company, Benefit Consulting Group Inc., is also a wholly owned
subsidiary of Oneida Savings Bank. The expansion of our financial services business
has continued to provide an increasing revenue source. During 2008, we established
Workplace Health Solutions, Inc., a wholly owned subsidiary of Oneida Savings Bank,
to develop a series of risk management services to help mitigate and prevent work
related injuries, and to assist injured workers and their employers when a
workplace injury occurs. This subsidiary was designed to complement our other
subsidiaries with an overall philosophy of innovative risk management services. We
intend to continue to expand our financial services businesses to increase our
earnings and diversify our revenue sources.
Growing Our Loan Portfolios.
We intend to grow our loan portfolios while continuing to
exercise prudent loan underwriting and administration standards.
47
Table of Contents
•
Emphasizing Origination of Commercial Real Estate, Consumer and Commercial
Business Loans.
We have sought to increase commercial real estate, consumer and
commercial business lending in a controlled, safe and sound manner. Because these
loans generally have higher yields and shorter terms than one-to-four family
residential mortgage loans, our goal is to increase the origination of these loans
consistent with safety and soundness considerations. At December 31, 2009, our
loan portfolio was composed of 19.8% commercial real estate loans, 14.4% consumer
loans and 13.0% commercial business loans.
•
Continuing the Origination of One-to-Four Family Real Estate Loans.
Historically, Oneida Savings Bank has emphasized the origination of one-to-four
family residential mortgage loans within Madison and Oneida counties and the
surrounding counties. During 2009, our one-to-four family mortgage loan
originations have been primarily fixed-rate loans. We generally sell our
fixed-rate one-to-four family loan originations, and such loans are sold without
recourse and on a servicing-retained basis. During the years ended December 31,
2009 and 2008, we sold $55.9 million and $18.6 million, respectively, in fixed-rate
one-to-four family mortgage loans. In addition, adjustable-rate mortgage ("ARM")
loans and hybrid ARM loans, which have a fixed rate of interest for the first three
to five years and adjust annually thereafter, represented a lower percentage of
total originations. Residential real estate loan origination volume, particularly
fixed-rate originations, increased significantly during 2009 compared with 2008 due
to declining market interest rates and a reduction of non-bank mortgage brokers
competing in the market area.
Continuing Our Conservative Underwriting Standards and Maintaining our Strong Asset Quality.
We continue to maintain exceptional asset quality and reserve coverage. At December 31, 2009, our
non performing loans totaled $551,000, or 0.18% of total loans, and our ratio of allowance for loan
losses to total nonperforming loans was 526.5%. Our asset quality reflects our conservative
underwriting standards, the diligence and experience of our loan collection personnel and the
stability of the local economy. As part of our evaluation of our asset quality, we also use an
independent third party loan review firm to evaluate certain parts of the loan portfolio on a
semiannual basis. Finally, we have not and do not plan to originate or participate in any
sub-prime or Alt-A lending programs or loans.
Growing Our Core Deposit Base.
Oneida Savings Bank is a market leader in offering deposit
accounts in the communities we serve. We continue to emphasize offering core deposits to
individuals, businesses and municipalities located in our market area. Core deposits represent our
best opportunity to develop customer relationships that enable us to cross sell the products and
services of our complementary subsidiaries. Core deposits are our least costly source of funds
which improves our interest rate spread and also contribute non-interest income from account
related services.
Expected Increase in Non-Interest Expense as a Result of the Conversion
Following the completion of the conversion, our non-interest expense is expected to increase
because of the increased compensation expenses associated with the purchase of shares of common
stock by our employee stock ownership plan and the possible implementation of a stock-based
incentive plan, if approved by our stockholders.
Assuming that 5,207,344 shares are sold in the offering:
(i)
the employee stock ownership plan will acquire 208,294 shares of common stock
with a $1.7 million loan that is expected to be repaid over 10 years, resulting in an
annual pre-
48
Table of Contents
tax expense of approximately $166,635 (assuming that the shares of common stock
maintain a value of $8.00 per share); and
(ii)
the new stock-based incentive plan would award a number of shares equal to 4%
of the shares sold in the offering, or 208,294 shares, to eligible participants, and
such awards would be expensed as the awards vest. Assuming all shares are awarded
under the plan at a price of $8.00 per share, and that the awards vest over five years,
the corresponding annual pre-tax expense associated with shares awarded under the plan
would be approximately $333,270; and
(iii)
the new stock-based incentive plan would award options to purchase a number of
shares equal to 10% of the shares
sold in the offering, or 520,734 shares, to eligible
participants, and such options would be expensed as the options vest. Assuming all
options are awarded under the stock-based incentive plan at a price of $8.00 per share,
and that the options vest over a minimum of five years, the corresponding annual
pre-tax expense associated with options awarded under the stock-based incentive plan
would be approximately $322,855 (assuming a grant-date fair value of $3.10 per option,
using the Black-Scholes option valuation methodology).
The actual expense that will be recorded for the employee stock ownership plan will be
determined by the number of shares acquired by the plan in the offering and the market value of the
shares of common stock as they are released to employees over the term of the loan, and whether the
loan is repaid faster than its contractual term. Accordingly, increases in the stock price above
$8.00 per share will increase the total employee stock ownership plan expense, and accelerated
repayment of the loan will increase the employee stock ownership plan expense for those periods in
which accelerated or larger loan repayments are made. Further, the actual expense of the shares
awarded under the stock-based incentive plan will be determined by the number of shares encompassed
by the plan, the fair market value of the stock on the grant date, which might be greater than
$8.00 per share, and the mix of stock options and stock awards granted under the plan.
Financial Condition
Assets.
Total assets at December 31, 2009 were $590.5 million, an increase of $50.4 million,
or 9.3%, from $540.1 million at December 31, 2008. The increase in total assets was
primarily attributable to an increase in cash equivalents and investment securities.
Management continues to maintain a diversified loan portfolio mix. This strategy is supported
through the origination and retention of consumer and commercial business loans with the intent of
increasing the average yield on our interest-earning assets, and the origination for sale in the
secondary market of lower yielding fixed-rate one-to-four family residential real estate loans.
Total consumer, commercial business and commercial real estate loans decreased by $2.3 million
during 2009. The decrease in consumer, commercial business and commercial real estate loans was
primarily due to a decrease in demand, particularly automobile lending, and commercial borrowers
reducing their outstanding commercial line of credit balances during 2009. Residential real estate
loans decreased $4.0 million during 2009. During the year ended December 31, 2009, a total of $55.9
million in fixed-rate residential mortgage loans were sold, compared with loan sales of $18.6
million during 2008.
Oneida Savings Bank reinvests proceeds from loan sales and investment sales and investment
security maturities in other loans as new loan origination volume warrants. Investment and
mortgage-backed securities provide improved liquidity as compared with individual mortgage loans
thereby allowing Oneida Savings Bank to accommodate periods of increased loan demand.
49
Table of Contents
Mortgage-backed securities decreased $8.6 million, or 11.6%, to $65.7 million at December 31,
2009 as compared with $74.3 million at December 31, 2008. The decrease in mortgage-backed
securities is primarily the result of the repayment and sales of securities during 2009.
Investment securities increased $36.1 million, or 60.0%, to $96.5 million at December 31, 2009 as
compared to $60.4 million at December 31, 2008. The increase in investment securities was due to
the increase in municipal deposits which require full collateralization with treasury, agency and
municipal securities.
We adopted
The Fair Value Option of Financial Assets and Financial Liabilities
, resulting in
the reclassification of certain investment securities to that of trading securities as of January
1, 2008. Trading securities increased $1.7 million, or 28.8%, to $7.6 million at December 31, 2009
as compared with $5.9 million at December 31, 2008 and represent common and preferred equity
securities that we have elected to adjust to fair value. The increase in trading securities
represents the increase in fair value during 2009 and was reflected through the income statement.
Cash and cash equivalents increased $26.2 million or 197.4% to $39.5 million at December 31,
2009 from $13.3 million at December 31, 2008. The increase in cash and cash equivalents was due to
our intention to maintain a higher level of cash liquidity, an increase in deposits and maintaining
a larger cash balance with the Federal Reserve Bank of New York for more favorable risk-based
capital treatment.
Liabilities.
Total liabilities increased by $46.1 million or 9.5% to $531.4 million at
December 31, 2009 from $485.3 million at December 31, 2008. The increase was primarily the result
of an increase in deposits of $63.7 million, partially offset by a decrease in borrowings of $21.8
million.
Deposit accounts increased $63.7 million, or 15.0%, to $489.4 million at December 31, 2009
from $425.7 million at December 31, 2008. Interest-bearing deposit accounts increased by $61.5
million, or 16.8%, to $426.4 million at December 31, 2009 from $364.9 million at December 31, 2008.
Non-interest bearing deposit accounts increased $2.2 million, or 3.6%, to $63.0 million at
December 31, 2009 from $60.8 million at December 31, 2008. Core deposit accounts which include
checking, savings and money market accounts increased $62.6 million or 23.3%. Time deposits
increased $1.1 million or 0.7%. The increase in core deposit accounts was distributed throughout
our existing retail banking branch network and as a result of an increase in municipal deposits
offered through our limited purpose commercial banking subsidiary, State Bank of Chittenango.
Municipal deposits increased $31.1 million to $86.0 million at December 31, 2009 from $54.9 million
at December 31, 2008.
Borrowings decreased $21.8 million, or 41.3%, to $31.0 million at December 31, 2009 from $52.8
million at December 31, 2008. The decrease in borrowings was due to our decision not to renew a
portion of the advances that matured during the year. At December 31, 2009, our FHLBNY overnight
line of credit facility was not in use. At December 31, 2008, there was $3.8 million outstanding
in the overnight line of credit facility. Overnight advances are accessed from time to time to
fund loan originations and short-term deposit outflows.
Other liabilities increased $4.2 million, or 61.8%, to $11.0 million at December 31, 2009 from
$6.8 million at December 31, 2008. The increase in other liabilities is primarily due to an
increase in future dated commissions and premiums payable in our insurance subsidiary at December
31, 2009.
Stockholders' Equity.
Total stockholders' equity at December 31, 2009 was $59.1 million, an
increase of $4.3 million, or 7.8%, from $54.8 million at December 31, 2008. The increase in
stockholders' equity reflects the contribution of net income of $4.1 million. In addition, there
was an increase in accumulated other comprehensive income of $1.6 million at December 31, 2009
resulting from an increase in the market value of mortgage-backed and investment securities and the
change in the
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unrealized loss on pension benefits. Changes in interest rates and market volatility resulted
in a decrease in the net unrealized loss on our available for sale securities.
Partially offsetting the increases in stockholders' equity was the payment of cash dividends
to stockholders. Stockholders were paid dividends during 2009 of $0.48 per share resulting in a
reduction in stockholders' equity of $1.7 million. Share based compensation earned under our stock
plans was $259,000 during 2009 as compared to $166,000 during 2008.
Analysis of Net Interest Income
Oneida Savings Bank's principal business has historically consisted of offering savings
accounts and other deposits to the general public and using the funds from such deposits to make
loans secured by residential and commercial real estate, as well as consumer and commercial
business loans. Oneida Savings Bank also invests a significant portion of its assets in investment
securities and mortgage-backed securities, both of which have classifications of available for sale
and held to maturity. Our results of operations depend primarily upon net interest income, which
is the difference between income earned on interest-earning assets, such as loans and investments,
and interest paid on interest-bearing liabilities, such as deposits and borrowings. Net interest
income is directly affected by changes in volume and mix of interest-earning assets and
interest-bearing liabilities which support those assets, as well as the changing interest rates
when differences exist in the repricing of assets and liabilities.
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Table of Contents
Average Balance Sheet.
The following table sets forth certain information relating to
our average balances, average yields and costs, and certain other information for the years ending
December 31, 2009, 2008 and 2007. For the periods indicated, the total dollar amount of interest
income from average interest-earning assets and the resultant yields, as well as the interest
expense on average interest-bearing liabilities is expressed both in dollars and rates. No tax
equivalent adjustments were made. The average balance is an average daily balance. Non-accrual
loans have been included in the average balances.
For the Years Ending December 31,
2009
2008
2007
Average
Yield/
Average
Yield/
Average
Yield/
Balance
Interest
Rate
Balance
Interest
Rate
Balance
Interest
Rate
(dollars in thousands)
Interest-earning assets:
Loans receivable
$
298,449
$
17,761
5.95
%
$
293,499
$
18,535
6.32
%
$
271,789
$
18,552
6.83
%
Investment and MBS securities
154,151
6,905
4.48
%
143,987
7,379
5.12
%
107,120
5,442
5.08
%
Federal funds
13,723
37
0.27
%
7,342
169
2.30
%
15,814
829
5.24
%
Equity securities
6,290
298
4.74
%
12,814
651
5.08
%
13,648
850
6.23
%
Total interest-earning assets
472,613
25,001
5.29
%
457,642
26,734
5.84
%
408,371
25,673
6.29
%
Non interest-earning assets:
Cash and due from banks
13,188
11,725
14,771
Other assets
75,112
74,999
71,107
Total Assets
$
560,913
$
544,366
$
494,249
Interest-bearing
liabilities:
Money market deposits
$
117,472
$
1,516
1.29
%
$
83,115
$
1,654
1.99
%
$
58,370
$
1,831
3.14
%
Savings accounts
80,714
488
0.60
%
77,266
603
0.78
%
74,332
570
0.77
%
Interest-bearing checking
46,359
139
0.30
%
40,459
238
0.59
%
36,024
265
0.74
%
Time deposits
153,870
3,734
2.43
%
159,933
6,020
3.76
%
138,651
6,372
4.60
%
Borrowings
36,235
1,697
4.68
%
56,194
2,561
4.56
%
59,710
2,948
4.94
%
Notes payable
1
0
0.00
%
88
5
5.68
%
836
42
5.02
%
Total interest-bearing liabilities
434,651
7,574
1.74
%
417,055
11,081
2.66
%
367,923
12,028
3.27
%
Non interest-bearing liabilities:
Demand deposits
60,024
63,711
61,187
Other liabilities
10,740
6,867
6,661
Total liabilities
505,415
487,633
435,771
Stockholders' equity
55,498
56,733
58,478
Total Liabilities and
Stockholders' Equity
$
560,913
$
544,366
$
494,249
Net interest income
$
17,427
$
15,653
$
13,645
Net interest spread
3.55
%
3.18
%
3.02
%
Net earning assets
$
37,962
$
40,587
$
40,448
Net interest margin
3.69
%
3.42
%
3.34
%
Ratio of interest-earning assets
to interest-bearing liabilities
108.73
%
109.73
%
110.99
%
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Rate and Volume Analysis
.
The following table presents the extent to which changes in
interest rates and changes in volume of interest-earning assets and interest-bearing liabilities
have affected our interest income and interest expense during the periods indicated. Information
is provided in each category with respect to: (i) changes attributable to changes in volume
(changes in volume multiplied by current rate); (ii) changes attributable to changes in rate
(changes in rate multiplied by prior volume) and (iii) the net change. The changes attributable to
the combined impact of volume and rate have been allocated proportionately to the changes due to
volume and the changes due to rate.
Years Ended December 31,
2009 vs. 2008
2008 vs. 2007
Increase/(Decrease)
Total
Increase/(Decrease)
Total
Due to
Increase/
Due to
Increase/
Volume
Rate
(Decrease)
Volume
Rate
(Decrease)
(In Thousands)
Interest-earning assets:
Loans receivable
$
295
$
(1,069
)
$
(774
)
$
1,371
$
(1,388
)
$
(17
)
Investment and mortgage-backed
securities
455
(929
)
(474
)
1,889
48
1,937
Federal funds
17
(149
)
(132
)
(195
)
(465
)
(660
)
Equity securities
(309
)
(44
)
(353
)
(42
)
(157
)
(199
)
Total interest-earning assets
$
458
$
(2,191
)
$
(1,733
)
$
3,023
$
(1,962
)
$
1,061
Interest-bearing liabilities:
Money market deposits
$
443
$
(581
)
$
(138
)
$
492
$
(669
)
$
(177
)
Savings accounts
21
(136
)
(115
)
23
10
33
Interest-bearing checking
18
(117
)
(99
)
26
(53
)
(27
)
Time deposits
(147
)
(2,139
)
(2,286
)
801
(1,153
)
(352
)
Borrowings
(935
)
71
(864
)
(160
)
(227
)
(387
)
Notes payable
—
(5
)
(5
)
(43
)
6
(37
)
Total interest-bearing liabilities
$
(600
)
$
(2,907
)
$
(3,507
)
$
1,139
$
(2,086
)
$
(947
)
Net increase (decrease) in net
interest income
$
1,774
$
2,008
Comparison of Operating Results for the Years Ended December 31, 2009 and December 31, 2008.
General.
Net income for the year ended December 31, 2009 was $4.1 million compared to a net
loss of $1.7 million for the year ended December 31, 2008. For the year ended December 31, 2009,
the basic net income per share was $0.53 as compared with the 2008 reported basic loss per share of
$0.22. The increase in net income is primarily the result of an increase in net interest income,
an increase in non-interest income and an increase in the fair value of trading securities. These
increases in income were partially offset by an increase in non-interest expense, an increase in
income tax provision, an increase in net investment losses and an increase in provision for loan
losses during 2009 as compared with 2008. The net loss in 2008 was largely due to noncash
investment charges of $8.7 million, an increase in the provision for loan loss reserve and an
increase in non-interest expenses. Partially offsetting the factors attributable to the net loss
were increases in net interest income and non-interest income and a decrease in the provision for
income taxes.
The net income from operations for the year ending December 31, 2009, which excludes non-cash
impairment charges incurred on eight trust preferred securities of $2.3 million and the non-cash
benefit to earnings recognized in the connection with the increase in market value of our trading
securities of $1.7 million, net of $130,000 in income taxes, was $4.6 million or $0.58 per basic
share. This compares to net income from operations for the year ending December 31, 2008 of $3.5
million, or $0.45 per basic share. Net income excluding the non-cash charges and benefits to
earnings increased due primarily to an increase in net interest income, an increase in investment
gains realized and an increase in non-interest income, partially offset by an increase in
non-interest expense, provisions for loan losses and
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income tax provisions. We believe these non-GAAP financial measures provide a meaningful
comparison of the underlying operational performance of our business, and facilitate investors'
assessments of business and performance trends in comparison to others in the financial services
industry. In addition, we believe the exclusion of these items enables management to perform a
more effective evaluation and comparison of our results and assess performance in relation to our
ongoing operations.
Interest and Dividend Income.
Interest and dividend income decreased by $1.7 million, or
6.5%, to $25.0 million for the year ended December 31, 2009 from $26.7 million for the year ended
December 31, 2008. Interest and fees on loans decreased by $774,000 for the year ended December
31, 2009 as compared with the same period in 2008. Interest and dividend income on mortgage-backed
and other investment securities decreased $827,000 to $7.2 million for the year ended December 31,
2009 from $8.0 million for the year ended December 31, 2008. Interest income earned on federal
funds sold decreased $132,000 during 2009 as compared with the year ended December 31, 2008.
The decrease in income on loans resulted from a decrease of 37 basis points in the average
yield on loans to 5.95% from 6.32% partially offset by an increase of $4.9 million in the average
balance of loans to $298.4 million in 2009 from $293.5 million in 2008. As of December 31, 2009,
residential real estate loans totaled $144.1 million, a decrease of $4.0 million from December 31,
2008. During 2009, a total of $55.9 million in fixed-rate residential real estate loans were sold
in the secondary market. In addition, commercial loans decreased $3.4 million to $38.8 million at
December 31, 2009 from $42.2 million at December 31, 2008. At December 31, 2009, total loans
receivable were $298.7 million as compared with $305.1 million at December 31, 2008, a decrease of
2.1%. The decrease in the yield on loans is a result of lower market interest rates during 2009 as
compared with 2008.
The decrease in interest income from investment and mortgage-backed securities was the result
of a decrease of 64 basis points in the average yield earned to 4.48% from 5.12% partially offset
by an increase of $10.2 million in the average balance of investment and mortgage-backed securities
to $154.2 million at December 31, 2009 from $144.0 million at December 31, 2008. The increase in
the average balance on investment and mortgage-backed securities is the result of purchases during
the year reflecting the increase in municipal deposits that require collateral to be pledged
against the balances.
Interest income on federal funds sold decreased as a result of a decrease of 203 basis points
in the average yield partially offset by an increase in the average balance of federal funds sold
of $6.4 million to $13.7 million during the 2009 period as compared with $7.3 million at December
31, 2008. The decrease in the yield is due to decreases in interest rates paid on federal funds
during the period. The increase in the average balance of federal funds sold reflects a decision
in 2009 to increase the total liquidity of Oneida Financial Corp.
Income from equity securities decreased $353,000 due to a decrease in the average yield of 34
basis points. In addition, the average balance decreased $6.5 million from $12.8 million as of
December 31, 2008 to $6.3 million as of December 31, 2009.
Interest Expense
.
Interest expense decreased $3.5 million, or 31.5%, to $7.6 million for the
year ended December 31, 2009 from $11.1 million for the year ended December 31, 2008. The decrease
in interest expense was primarily due to a decrease in interest paid on deposit accounts during
2009 of $2.6 million, decreasing to $5.9 million during 2009 from $8.5 million during 2008. In
addition, borrowing expense decreased to $1.7 million for 2009 compared with $2.6 million for 2008.
The decrease in interest expense paid on deposits was primarily due to a decrease in the
average cost of deposits. Core deposits, including money market accounts, savings accounts and
interest-bearing checking accounts, experienced an increase in the average balance of $43.7
million, or 21.8%, to $244.5
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million at an average cost of 0.88% during 2009 from $200.8 million at an average cost of
1.24% during 2008. During the same period the average balance of time deposits decreased $6.1
million or 3.8%, to $153.9 million in 2009 from $159.9 million during 2008 and the average rate
paid on time deposits decreased 133 basis points.
The decrease in borrowing expense was due to the decrease in the average balance of borrowings
outstanding in the 2009 period to $36.2 million as compared with $56.2 million during the 2008
period, offset by a 12 basis point increase in the average rate paid on borrowed funds to 4.68% for
the 2009 period.
The decrease in notes payable expense was due to the decrease in average balance of $87,000 as
well as a decrease in the average yield outstanding. The notes payable represent the balances owed
to Parsons, Cote & Company and Benefit Consulting Group LLC as part of the acquisition of the
companies during the year ended December 31, 2006 which were paid in full during 2009 according to
the terms of the notes.
Provision for Loan Losses.
Provision for loan losses increased $235,000, or 44.8%, to
$760,000 for the year ended December 31, 2009 as compared with a provision of $525,000 for the year
ended December 31, 2008. Oneida Savings Bank establishes provisions for loan losses, which are
charged to operations, in order to maintain the allowance for loan losses at a level deemed
appropriate to absorb probable incurred credit losses. Management estimates the allowance balance
required using past loan loss experience, the nature and volume of the portfolio, information about
specific borrower situations and estimated collateral values, economic conditions and other
factors. Allocations of the allowance may be made for specific loans, but the entire allowance is
available for any loan that, in management's judgment, should be charged off. Management evaluates
the adequacy of the allowance and determines the appropriate level of provision for loan losses by
applying a range of estimated loss percentages to each category of performing and classified loans.
The evaluation considers volume changes in the loan portfolio mix in response to changes in loan
asset origination and retention toward consumer and commercial business loan assets, and provides
within the allowance adequacy formula for the higher relative degree of credit risk associated with
this activity as compared with traditional residential real estate lending. Management continues to
monitor the adequacy of the allowance for loan losses given the risk assessment of the loan
portfolio and current economic conditions making appropriate provisions for loan losses on a
quarterly basis.
The increase in the provision from 2008 to 2009 was a result of an increase in charge-offs
taken during 2009 and provisions for loan impairments which were partially offset by a decrease in
loan balances. During 2009, we identified an impaired commercial lending relationship with a
principal balance of $2.2 million as of December 31, 2009. At December 31, 2009, a specific
reserve of $570,000 had been established for that loan. As of December 31, 2009, the borrower of
the impaired loan has made all payments as agreed. Nonperforming loans remained at low levels
during the years ended December 31, 2009 and 2008, totaling $551,000 or 0.09% of total assets at
December 31, 2009 compared with $513,000 or 0.09% of total assets at December 31, 2008. Net
charge-off activity for the year ended December 31, 2009 was $483,000 as compared with $412,000 in
net charge-offs during 2008. The balance of the allowance for loan losses was $2.9 million or
0.98% of loans receivable at December 31, 2009 compared with $2.6 million or 0.87% of loans
receivable at December 31, 2008.
Non-interest Income.
Non-interest income consists of non-interest income, changes in fair
value of trading securities, net gains on sales of securities as well as net impairment losses
recognized in earnings. Non-interest income increased by $11.4 million, or 117.5%, to $21.1
million for the year ended December 31, 2009 from $9.7 million for the year ended December 31,
2008. The increase in non-interest income was primarily due to a positive net fair value
adjustment of $1.7 million for the increase
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Table of Contents
in market value of our trading securities at December 31, 2009 from the prior year end. This
compares with a net decrease in the fair value for the 2008 period of $7.7 million that was
recognized in connection with the adoption of fair value accounting for certain preferred and
common equity securities including Freddie Mac preferred securities. In addition, we also recorded
other-than-temporary impairment charges in both 2009 and 2008 periods.
Revenue derived from Oneida Savings Bank's subsidiaries increased $2.2 million or 16.3% to
$15.8 million during 2009 as compared with $13.6 million during 2008. Insurance subsidiary revenue
of Bailey & Haskell Associates was $9.7 million for the year ended December 31, 2009 as compared
with $8.5 million during 2008. The increase in insurance subsidiary revenue is primarily due to
increased sales volume and a high level of account revenue retention from the prior year.
Consulting activities of Benefit Consulting Group generated revenue of $5.7 million for the year
ended December 31, 2009 as compared with $5.0 million during 2008. The increase in consulting
revenue is primarily the result of an increase in employee benefit consulting services and
increased pension administration revenue resulting from required pension plan amendments prepared
for clients. Risk management activities of Workplace Health Solutions generated $491,000 of
revenue for the year ended December 31, 2009 as compared with $120,000 in revenue during 2008. The
increase in risk management revenue was the result of continued client growth for this new
subsidiary established at the beginning of 2008.
Deposit account service fees decreased to $2.6 million during the year ended December 31, 2009
from $2.8 million during 2008. The combination of fee reductions and the higher account balances
currently maintained resulted in the decrease in deposit account service fee revenue.
We experienced an increase in income from the sale and servicing of fixed-rate residential
real estate loans. Such income increased to $985,000 during 2009 compared with $465,000 during
2008. The increase is primarily the result of an increase in the volume of loan activity in 2009 as
compared with 2008.
We have identified the preferred and common equity securities we hold in the investment
portfolio as trading securities and as such the change in fair value of these securities is
reflected as a non-cash adjustment through the income statement. For the year ended December 31,
2009 the market value of our trading securities increased $1.7 million as compared with a decrease
of $7.7 million in the 2008 period. The 2008 period was negatively impacted by the significant
decline in value of Freddie Mac perpetual preferred stock following the announcement by the United
States Treasury and the FHFA that Freddie Mac was placed under conservatorship during September
2008.
Net investment losses for the year ended December 31, 2009 were $1.5 million as compared with
net investment losses of $959,000 during 2008. The net investment loss was the result of a
non-cash impairment charge of $2.3 million recorded for the year ended December 31, 2009 for eight
trust preferred securities which were determined to be other-than-temporarily impaired. The trust
preferred securities are diversified pools of collateralized debt obligations primarily issued by
domestic financial institutions and their holding companies. Partially offsetting the non-cash
impairment charge were investment gains resulting from our decision to realize a portion of the
appreciation in our mortgage-backed and investment securities portfolio resulting in net gains
realized of $788,000 during 2009. For the year ended December 31, 2008, we recorded a non-cash
other-than-temporary impairment charge on a Lehman Brothers medium term note of $1.0 million
following their bankruptcy announcement in September 2008, partially offset by realized net
investment gains of $63,000 during 2008.
Non-interest Expense.
Non-interest expense increased by $3.7 million or 12.9% to $32.4
million for the year ended December 31, 2009 from $28.7 million for the year ended December 31,
2008. The increase was primarily due to an increase in operating expenses associated with our
insurance agency and
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Table of Contents
consulting subsidiaries associated with commissions paid concurrent with revenue increases.
In addition, an increase in premiums being assessed by the Federal Deposit Insurance Corporation
for the current calendar year has resulted in additional non-interest expense of $970,000 for the
year ended December 31, 2009 as compared with the same period in 2008.
Salaries, wages and other compensation paid to the employees of Oneida Financial Corp. during
2009 was $20.4 million, an increase of $2.3 million, or 12.7%, as compared with compensation
expense of $18.1 million during 2008. The increase in compensation expense was primarily the
result of the increase in sales of insurance and other non-banking products through our
subsidiaries resulting in an increase in commissions paid and employee benefit expense. In 2006,
Oneida Financial Corp. approved a Management Recognition and Retention Plan for directors, officers
and key employees. The expense associated with this benefit was $180,000 for 2009 as compared with
$166,000 in 2008. In addition, we recognized compensation expense in connection with the exercise
of stock options during 2009 of $78,000 as compared with no compensation expense recognized in 2008
related to the exercise of stock options.
Building occupancy and equipment expense increased $9,000, or 0.2%, to $4.7 million for the
year ended December 31, 2009 as compared to $4.7 million during 2008.
Non-interest expense was negatively impacted during 2009 as a result of Oneida Savings Bank
being assessed significantly higher deposit insurance premiums, including a special assessment of 5
basis points on its assets. Deposit insurance premiums and assessments during 2009 totaled $1.0
million as compared with FDIC premiums of $58,000 during 2008. At the end of 2009, the FDIC
required all banks to prepay their base deposit insurance premiums for the next three years. This
new requirement resulted in Oneida Financial Corp. transferring $2.4 million to the FDIC
representing a prepaid assessment for 2010, 2011 and 2012. We anticipate additional FDIC insurance
assessments beyond the current assessment level.
Provision for Income Taxes
.
Provision for income taxes was $1.2 million for the year ended
December 31, 2009 an increase of $3.4 million from the 2008 income tax benefit recorded of $2.2
million. The increase in income tax provision reflects the increase in net income for the year
ended December 31, 2009. The effective tax rate was 22.7% during 2009. The increase in income tax
provision is due to a return to profitability in 2009 and the special tax treatment received in
2008 for the investment losses recognized by holders of Freddie Mac preferred stock.
Comparison of Operating Results for the Years Ended December 31, 2008 and December 31, 2007.
General.
For the year ended December 31, 2008 we incurred a net loss of $1.7 million compared
to net income of $3.5 million for the year ended December 31, 2007. For the year ended December
31, 2008, the basic net loss per share was $0.22 as compared with the 2007 reported basic earnings
per share of $0.45. The net loss was largely due to noncash investment charges of $8.7 million, an
increase in the provision for loan loss reserve and an increase in non-interest expenses.
Partially offsetting the factors attributable to the net loss was an increase in net interest
income and non-interest income and a decrease in the provision for income taxes.
The net income from operations for the year ending December 31, 2008, which excludes a
non-cash impairment charge of a medium term note and the non-cash charge to earnings recognized in
connection with the adoption of fair value accounting for certain common and preferred equity
securities of $8.7 million, net of $3.5 million in income taxes, was $3.5 million or $0.45 per
basic share. This compares to net income from operations for the year ending December 31, 2007 of
$3.5 million, or $0.45 per basic share. Net income excluding the non-cash charge to earnings
remained stable as non-interest
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Table of Contents
income remained stable, and non-interest expenses increased offsetting an increase in net
interest income. We believe these non-GAAP financial measures provide a meaningful comparison of
the underlying operational performance of our business, and facilitate investors' assessments of
business and performance trends in comparison to others in the financial services industry. In
addition, we believe the exclusion of these items enables management to perform a more effective
evaluation and comparison of our results and assess performance in relation to Oneida Financial
Corp.'s ongoing operations.
Interest and Dividend Income.
Interest and dividend income increased by $1.0 million or 3.9%,
to $26.7 million for the year ended December 31, 2008 from $25.7 million for the year ended
December 31, 2007. Interest and fees on loans decreased by $17,000 for the year ended December 31,
2008 as compared with the same period in 2007. Interest and dividend income on mortgage-backed and
other investment securities increased $1.7 million to $8.0 million for the year ended December 31,
2008 from $6.3 million for the year ended December 31, 2007. Interest income earned on federal
funds sold decreased $660,000 during 2008 as compared with the year ended December 31, 2007.
The decrease in income on loans resulted from a decrease of 51 basis points in the average
yield on loans to 6.32% from 6.83% partially offset by an increase of $21.7 million in the average
balance of loans to $293.5 million in 2008 from $271.8 million in 2007. As of December 31, 2008,
residential real estate loans totaled $148.8 million, an increase of $16.9 million from December
31, 2007. During 2008, a total of $18.6 million in fixed-rate residential real estate loans were
sold in the secondary market. In addition, commercial loans increased $2.3 million to $42.2
million at December 31, 2008 from $39.9 million at December 31, 2007. At December 31, 2008, total
loans receivable were $305.1 million as compared with $286.9 million at December 31, 2007, an
increase of 6.3%. The decrease in the yield on loans is a result of lower market interest rates
during 2008 as compared with 2007, and the changes in the composition of the loan portfolio to
residential real estate loans.
The increase in interest income from investment and mortgage-backed securities was the result
of an increase of $36.9 million in the average balance of investment and mortgage-backed securities
to $144.0 million at December 31, 2008 from $107.1 million at December 31, 2007 as well as an
increase of 4 basis points in the average yield on investment and mortgage-backed securities. The
increase in the average balance of investment and mortgage-backed securities is the result of
purchases during the year reflecting the increase in municipal deposits that require collateral to
be pledged against the balances.
Interest income on federal funds sold decreased as a result of a decrease in the average
balance of federal funds sold of $8.5 million to $7.3 million during 2008 as compared with $15.8
million during 2007 as well as a 294 basis point decrease in the average yield. The decrease in the
yield is due to the decreases in interest rates paid on federal funds during the period. The
decrease in the average balance of federal funds sold reflects a decision in 2008 to reallocate
assets to investment securities.
Income from equity securities decreased $199,000 due primarily to a decrease in the average
yield of 115 basis points. In addition, the average balance decreased $834,000 from $13.6 million
during 2007 to $12.8 million during 2008.
Interest Expense
.
Interest expense decreased by $947,000, or 7.9%, to $11.1 million for the
year ended December 31, 2008 from $12.0 million for the year ended December 31, 2007. The decrease
in interest expense was primarily due to a decrease in interest paid on deposit accounts during
2008 of $523,000, decreasing to $8.5 million during 2008 from $9.0 million during 2007. In
addition, borrowing expense decreased to $2.6 million for 2008 compared with $3.0 million for 2007.
The decrease in interest expense paid on deposits was primarily due to a decrease in the
average yield of deposits. Core deposits, including money market accounts, savings accounts and
interest-bearing
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checking accounts, experienced an increase in the average balance of $32.1 million, or 19.1%,
to $200.8 million at an average cost of 1.24% during 2008 from $168.7 million at an average cost of
1.58% during 2007. During the same period the average balance of time deposits increased $21.2
million or 15.3%, to $159.9 million in 2008 from $138.7 million during 2007 and the average rate
paid on time deposits increased 84 basis points.
The decrease in borrowing expense was due to the decrease in the average balance of borrowings
outstanding in the 2008 period to $56.2 million as compared with $59.7 million during the 2007
period. The average rate paid on borrowed funds decreased 38 basis points to 4.56% for the 2008
period.
The decrease in notes payable expense was due to the decrease in average balance of $748,000
as well as a decrease in the average yield outstanding. As noted above, the notes payable
represent the balances owed to Parsons, Cote & Company and Benefit Consulting Group LLC as part of
the acquisition of the companies during the year ended December 31, 2006.
Provision for Loan Losses.
For the year ended December, 31 2008, there was a provision of
$525,000 made to the allowance for loan loss as compared with no provision made for the year ended
December 31, 2007. The increase in the provision from 2007 to 2008 was largely due to the increase
in nonperforming loans, an increase in charge-offs that had taken place during the year as well as
an increase in loan growth. Nonperforming loans remained at low levels during the years ended
December 31, 2008 and 2007, totaling $513,000 or 0.09% of total assets at December 31, 2008
compared with $375,000 or 0.07% of total assets at December 31, 2007. Net charge-off activity for
the year ended December 31, 2008 was $412,000 as compared with $95,000 in net charge-offs during
2007. The balance of the allowance for loan losses was $2.6 million or 0.87% of loans receivable
at December 31, 2008 compared with $2.5 million or 0.88% of loans receivable at December 31, 2007.
Non-interest Income.
Non-interest income decreased by $8.5 million, or 46.7%, to $9.7 million
for the year ended December 31, 2008 from $18.2 million for the year ended December 31, 2007. The
decrease in non-interest income was primarily due to a change in fair value of $7.7 million that
was recognized in connection with the adoption of fair value accounting for certain preferred and
common equity securities including Freddie Mac preferred securities. In addition to the noncash
charge due to fair value accounting, we also recorded an other-than-temporary impairment charge on
a Lehman Brothers medium term note.
Revenue derived from Oneida Savings Bank's subsidiaries increased $98,000 or 0.7% to $13.6
million during 2008 as compared with $13.5 million during 2007. Insurance subsidiary revenue of
Bailey & Haskell Associates was $8.5 million for the year ended December 31, 2008 as compared with
$9.9 million for 2007. Consulting activities of Benefit Consulting Group generated revenue of $5.0
million for the year ended December 31, 2008 as compared with $3.6 million in revenue for 2007.
The decrease in insurance subsidiary revenue and the increase in consulting subsidiary revenue is
primarily due to the transfer of the financial services and life insurance sales divisions from
Bailey & Haskell Associates to Benefit Consulting Group during 2008 to better align the services of
the various subsidiaries. Risk management activities generated $120,000 of revenue for the year
ended December 31, 2008 in this new subsidiary established at the beginning of 2008.
Deposit account service fees also contributed to the improvement in non-interest income,
increasing to $2.8 million during December 31, 2008 from $2.5 million during December 31, 2007.
The combination of fees charged on new accounts generated and acquired resulted in the increase in
deposit account service fee revenue.
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We experienced an increase in income from the sale and servicing of fixed-rate residential
real estate loans. Such income increased to $465,000 during 2008 compared with $433,000 during
2007. The increase is primarily the result of an increase in the volume of loan activity in 2008 as
compared with 2007.
Net investment securities losses realized were $8.6 million for the year ended December 31,
2008 as compared to net investment securities gains of $353,000 for the year ended December 31,
2007. The net investment losses recognized in 2008 were the result of fair value non-cash
adjustments for certain investments securities which resulted in cumulative charges against
earnings of $7.7 million and a non-cash impairment charge recorded for our investment in a medium
term note in Lehman Brothers Holdings of $1.0 million during 2008 resulting in a complete
write-down of this investment as we cannot reasonably conclude collection is probable. These
non-cash investment charges were partially offset by realized investment gains of $63,000 during
the year ended December 31, 2008.
Non-interest Expense.
Non-interest expense increased by $1.7 million, or 6.3%, to $28.7
million for the year ended December 31, 2008 from $27.0 million for the year ended December 31,
2007. The increase was primarily due to salary and employee benefits expense which increased $1.1
million to $18.1 million for the year ended December 31, 2008 from $17.0 million for the year ended
December 31, 2007.
The increase in compensation expense was primarily the result of the addition of National Bank
of Vernon employees and the office in Griffiss Park. In 2006, Oneida Financial Corp. approved a
Management Recognition and Retention Plan for directors, officers and key employees. The expense
associated with this benefit was $166,000 for 2008 as compared with $175,000 in the 2007.
Building occupancy and equipment expense increased $312,000 to $4.7 million for the year ended
December 31, 2008 as compared to $4.4 million during 2007. The increase was due to the addition of
four banking offices during 2007.
Provision for Income Taxes
.
Income tax benefit was $2.2 million for the year ended December
31, 2008 a decrease of $3.6 million from the 2007 income tax provision of $1.4 million. The
decrease in income tax provision reflects the decrease in net income for the year ended December
31, 2008. The 2008 tax benefit is compared with an effective tax rate of 28.1% during 2007. The
decrease in the income tax provision in 2008 is due to an increase in tax exempt and tax preferred
investment income of Oneida Financial Corp. which qualifies for dividends received deductions and
the special tax treatment received in 2008 for the investment losses recognized by holders of
Freddie Mac preferred stock.
Application of Critical Accounting Policies
Oneida Financial Corp.'s consolidated financial statements are prepared in accordance with
accounting principles generally accepted in the United States and follow general practices within
the industries in which it operates. Application of these principles requires management to make
estimates, assumptions, and judgments that affect the amounts reported in the financial statements
and accompanying notes. These estimates, assumptions, and judgments are based on information
available as of the date of the financial statements; accordingly, as this information changes, the
financial statements could reflect different estimates, assumptions, and judgments. Certain
policies inherently have a greater reliance on the use of estimates, assumptions, and judgments and
as such have a greater possibility of producing results that could be materially different than
originally reported. Estimates, assumptions, and judgments are necessary when assets and
liabilities are required to be recorded at fair value, when a decline in the value of an asset not
carried on the financial statements at fair value warrants an impairment write-down or valuation
reserve to be established, or when an asset or liability needs to be recorded contingent upon a
future event. Carrying assets and liabilities at fair value inherently results in more
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financial statement volatility. The fair values and the information used to record valuation
adjustments for certain assets and liabilities are based either on quoted market prices or are
provided by other third-party sources, when available. When third-party information is not
available, valuation adjustments are estimated in good faith by management primarily through the
use of internal cash flow modeling techniques.
The most significant accounting policies followed by Oneida Financial Corp. are presented in
Note 1 to the consolidated financial statements. These policies, along with the disclosures
presented in the other financial statement notes and in this financial review, provide information
on how significant assets and liabilities are recorded in the financial statements and how those
values are determined. Based on the valuation techniques used and the sensitivity of financial
statement amounts to the methods, assumptions, and estimates underlying those amounts, management
has identified the determination of the allowance for loan losses, the fair value of trading
securities and investment securities and the evaluation of other-than-temporary impairment on
securities whose fair value is less than amortized cost, actuarial assumptions associated with
Oneida Financial Corp.'s pension plan and the fair value methodologies used to review the carrying
value of goodwill to be the accounting areas that require the most subjective or complex judgments,
and as such could be most subject to revision as new information becomes available.
The allowance for loan losses represents management's estimate of probable incurred credit
losses in the loan portfolio. Determining the amount of the allowance for loan losses is considered
a critical accounting estimate because it requires significant judgment and the use of estimates
related to the collateral value and timing of expected future cash flows on impaired loans,
estimated losses on pools of homogeneous loans based on historical loss experience, and
consideration of current economic trends and conditions, all of which may be susceptible to
significant change. The loan portfolio also represents the largest asset type on the consolidated
balance sheet. Note 1 to the consolidated financial statements describes the methodology used to
determine the allowance for loan losses and a discussion of the factors driving changes in the
amount of the allowance for loan losses is included in the Allowance for Loan Losses section of the
annual report.
As of December 31, 2009, $47.7 million of securities were considered held to maturity and are
carried at amortized cost on our statement of condition. Securities available for sale, which
represented $114.5 million at December 31, 2009, are recorded at current market value on our
statement of condition. Unrealized gains or losses, net of the deferred tax effect, are reported
in other comprehensive income as a separate component of stockholders' equity. Recorded values are
based on prices obtained from nationally recognized resources or securities dealer's valuations.
We conduct a quarterly review and evaluation of the securities portfolios to determine if any
declines in fair value are other than temporary. Any valuation decline that is determined to be
other than temporary would require us to write down the security to fair value through a charge to
current period operations.
Securities in which the fair value option has been elected, which include both common and
preferred equity securities, are classified as trading assets and are recorded at fair value on our
statement of condition. Changes in fair value are included in earnings.
The estimation of fair value is significant to several of our assets, including trading
securities and securities available for sale. Fair values are determined based on third party
sources, when available. Furthermore, accounting principles generally accepted in the United
States require disclosure of the fair value of financial instruments as a part of the notes to the
consolidated financial statements. Fair values may be influenced by a number of factors, including
market interest rates, prepayment speeds, discount rates and the shape of the yield curve.
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Fair values for securities available for sale are typically based on quoted market prices. If
a quoted market price is not available, fair values are estimated using quoted market prices for
similar securities or level 3 values. Note 4 to the consolidated financial statements provides
additional information on how we determine level 3 values.
The valuation of our obligations associated with pension plans utilizes various actuarial
assumptions. These assumptions include discount rate and expected return on plan assets. Specific
discussion of the assumptions used by management is discussed in Note 11.
Although goodwill is not subject to amortization, we must test the carrying value for
impairment at least annually or more frequently if events or circumstances indicate that the asset
might be impaired. Impairment testing requires that the fair value of each of the reporting units
be compared to the carrying amount of its net assets, including goodwill. Determining the fair
value of reporting units requires us to use a high degree of subjective judgment. We utilize
discounted cash flow valuation models that incorporate such variables as revenue growth rates,
expense trends, interest rates, and terminal values. Management also reviews current acquisition
multiples with consideration of market conditions surrounding those acquisitions. Management will
compare multiples of revenue, EBITDA as well as a book value as a determination of estimated fair
value. Future changes in the economic environment or operations of our reporting units could cause
changes to these variables, which could result in impairment being identified.
Management of Market Risk and Other Risks
Our most significant form of market risk is interest rate risk, as the majority of our assets
and liabilities are sensitive to changes in interest rates. Ongoing monitoring and management of
this risk is an important component of our asset and liability management process. We do not own
any trading assets other than common and preferred equity securities classified as trading in
accordance with fair value accounting. We do not engage in hedging transactions, such as interest
rate swaps and caps, other than forward sale commitments on certain mortgage loan commitments. Our
interest rate risk management program focuses primarily on evaluating and managing the composition
of our assets and liabilities in the context of various interest rate scenarios. Factors beyond
management's control, such as market interest rates and competition, also have an impact on
interest income and interest expense.
Interest Rate Risk.
In recent years, we have used the following strategies to manage interest
rate risk: (i) emphasizing the origination and retention of adjustable-rate residential mortgage
loans, adjustable-rate commercial mortgage loans, other business purpose loans and consumer loans
consisting primarily of auto loans; (ii) selling substantially all newly originated longer-term
fixed rate one-to-four family residential mortgage loans into the secondary market without recourse
and on a servicing retained basis; (iii) seeking to increase and diversify our sources of revenue,
particularly non-interest income and (iv) managing our investment activities in a prudent manner in
the context of overall balance sheet asset/liability management. Investing in shorter-term
securities will generally bear lower yields as compared to longer-term investments, but improves
our position for increases in market interest rates and better matches the maturities of our
certificate of deposit accounts. Certificates of deposit that mature in one year or less, at
December 31, 2009 totaled $123.4 million, or 28.4% of total interest-bearing liabilities. Borrowed
funds that mature in one year or less at December 31, 2009 totaled $19.0 million, or 4.4% of total
interest-bearing liabilities. Management believes that this balanced approach to investing will
reduce the exposure to interest rate fluctuations and will enhance long-term profitability.
Net Income and Portfolio Value Analysis
.
Our interest rate sensitivity is monitored by
management through the use of a net income model and a net portfolio value ("NPV") model which
generates estimates of the change in our net income and NPV over a range of interest rate
scenarios. NPV
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is the present value of expected cash flows from assets and liabilities. The model assumes
estimated loan prepayment rates and reinvestment rates. The following sets forth our net interest
income and NPV as of December 31, 2009.
Change in
Interest Rates
Net Interest Income
Net Portfolio Value
In Basis Points
Dollars
Dollar
Percent
Dollars
Dollar
Percent
(Rate Shock)
Amount
Change
Change
Amount
Change
Change
(Dollars in Thousands)
+300
$
16,732
$
(695
)
(3.99
)%
$
39,089
$
(19,109
)
(32.83
)%
+200
$
17,054
$
(373
)
(2.14
)%
$
48,239
$
(9,960
)
(17.11
)%
+100
$
17,281
$
(146
)
(0.84
)%
$
54,597
$
(3,602
)
(6.19
)%
Static
$
17,427
$
—
—
%
$
58,198
$
—
—
%
The following sets forth our net interest income and NPV as of December 31, 2008.
Change in
Interest Rates
Net Interest Income
Net Portfolio Value
In Basis Points
Dollars
Dollar
Percent
Dollars
Dollar
Percent
(Rate Shock)
Amount
Change
Change
Amount
Change
Change
(Dollars in Thousands)
+300
$
14,657
$
(996
)
(6.36
)%
$
36,281
$
(14,709
)
(28.85
)%
+200
$
15,133
$
(520
)
(3.32
)%
$
43,728
$
(7,262
)
(14.24
)%
+100
$
15,450
$
(203
)
(1.30
)%
$
48,848
$
(2,142
)
(4.20
)%
Static
$
15,653
$
—
—
%
$
50,990
$
—
—
%
As of December 31, 2009, a 200 basis point increase in market interest rates was
estimated to have a negative impact of 2.14% on net interest income during 2010 while a 300 basis
point increase in rates would have a negative impact of 3.99% on net interest income during 2010.
This analysis is based on numerous assumptions including the nature and timing of interest rate
levels, prepayment on loans and securities, deposit decay rates, pricing decisions on loans and
deposits and other assumptions, and should not be relied upon as being indicative of expected
operating results.
There are certain shortcomings inherent in the methodology used in the above interest rate
risk measurements. Modeling changes in net interest income and NPV requires the making of certain
assumptions, which may or may not reflect the manner in which actual yields and costs respond to
changes in market interest rates. In this regard, the net interest income in the table assumes that
the composition of our interest sensitive assets and liabilities existing at the beginning of a
period remains constant over the period being measured and also assumes that a particular change in
interest rates is reflected uniformly across the yield curve regardless of the duration to maturity
or repricing of specific assets and liabilities. Accordingly, although the table provides an
indication of our interest rate risk exposure at a particular point in time, such measurements are
not intended to and do not provide a precise forecast of the effect of changes in market interest
rates on our net interest income and will differ from actual results.
Credit Risk.
Our loan and investment portfolios are subject to varying degrees of credit
risk. Credit risk is mitigated through portfolio diversification, limiting exposure to any single
industry or customer, collateral protection, standard lending and investment policies and loan
underwriting criteria.
Note 1 to the consolidated financial statements describes the accounting policies related to
nonperforming loans and charge-offs and describes the methodologies used to develop the allowance
for loan losses. The policies governing nonperforming loans and charge-offs are consistent with
regulatory standards. We maintain an allowance for loan losses sufficient to absorb estimated
probable incurred
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losses in the loan portfolio. The evaluation of each element and the overall allowance are
based on the size and current risk characteristics of the loan portfolio and include an assessment
of individual problem loans, actual loss experience, current economic events in specific industries
and geographical areas, including unemployment levels, and other pertinent factors, including
regulatory guidance and general economic conditions.
While management considers the allowance for loan losses to be adequate based on information
currently available, future adjustments to the allowance may be necessary due to changes in
economic conditions, delinquencies or loss rates, and management's intent with regard to asset
disposition options. In addition, the allowance for loan losses is periodically reviewed by the
bank regulatory agencies as an integral part of their examination process. Based on their review,
the agencies may require us to adjust the allowance for loan losses based on their judgments about
information available to them at the time of their review.
The securities investment policy is established by the Board of Directors. This policy
dictates that investment decisions will be made based on the safety of the investment, liquidity
requirements, potential returns, cash flow targets and desired risk parameters. In pursuing these
objectives, management considers the ability of an investment to provide earnings consistent with
factors of quality, maturity, marketability and risk diversification. We will only purchase
securities rated as investment grade by a nationally recognized investment rating agency. The
ability of an issuer of a corporate debt instrument to repay the obligation is influenced by a
number of factors including general economic conditions, cash flow, events in specific industries,
regional crisis, bankruptcy and many other factors. Corporate bonds are not typically guaranteed
by the issuer beyond their ability to repay and therefore may result in a loss to us if conditions
change from those in place at the time the investment was acquired. We conduct a quarterly
evaluation of the securities portfolio to determine if any declines in fair value are
other-than-temporary. Part of this analysis includes forecasting of rate projections and
investment spreads over bond indices as compared to historical performance. Fluctuations in market
conditions could impact the evaluation and outcome of projections.
Concentration Risk.
Our lending activities are primarily conducted in Madison and Oneida
Counties, located in Central New York State, and the adjacent counties. Our mortgage loan
portfolio, consisting primarily of loans on residential real property located in its market area,
is subject to risks associated with the local economy. If the local economy, national economy or
real estate market weakens, our financial condition and results of operations could be adversely
affected. A weakening in the local real estate market or a decline in the local economy could
increase the number of delinquent or nonperforming loans and reduce the value of the collateral
securing such loans, which would reduce our net income.
Legal Proceedings.
We and our subsidiaries are subject to various legal actions arising in
the normal course of business. For additional information, see "Business of Oneida Financial Corp.
and Oneida Savings Bank — Legal Proceedings" in this prospectus.
Liquidity Risk.
The objective of liquidity management is to ensure the cash flow requirements
of depositors and borrowers, as well as the operating cash needs of our business, are met, taking
into account all on- and off-balance sheet funding demands. Liquidity management also includes
ensuring cash flow needs are met at a reasonable cost. Liquidity risk arises from the possibility
that we may not be able to satisfy current or future financial commitments, or may become unduly
reliant on alternative funding sources. We maintain a liquidity risk management policy to address
and manage this risk. The policy identifies the primary sources of liquidity, establishes
procedures for monitoring and measuring liquidity, and establishes minimum liquidity requirements
which comply with regulatory guidance. The policy also includes a contingency funding plan to
address liquidity needs in the event of an institution-specific or a
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Table of Contents
systemic financial market crisis. The liquidity position is continually monitored and reported
on a monthly basis to the Asset/Liability Management Committee.
Our primary sources of funds are deposits; FHLB borrowings; proceeds from the principal and
interest payments on loans and mortgage-related, debt and equity securities; and to a lesser
extent, proceeds from the sale of fixed rate residential real estate loans and additional borrowing
ability available as needed. While maturities and scheduled amortization of loans and securities
are predictable sources of funds, deposit outflows, mortgage prepayments, mortgage loan sales and
borrowings are greatly influenced by general interest rates, economic conditions and competition.
Liquidity management is both a short-term and long-term responsibility of management. We
adjust our investments in liquid assets based upon management's assessment of (i) expected loan
demand, (ii) projected purchases of investment and mortgage-backed securities, (iii) acquisition
activities, (iv) expected deposit flows, (v) yields available on interest-bearing deposits, and
(vi) liquidity of its asset/liability management program. Excess liquidity is generally invested
in interest-earning overnight deposits, federal funds sold and other short-term U.S. agency
obligations. At December 31, 2009, cash and interest-earning deposits totaled $39.5 million, or
6.7% of total assets.
If Oneida Savings Bank requires funds beyond its ability to generate them internally, it has
the ability to borrow funds from the FHLB. Oneida Savings Bank may borrow from the FHLB under a
blanket agreement, which assigns all investments in FHLB stock as well as qualifying first mortgage
loans equal to 150% of the outstanding balance as collateral to secure the amounts borrowed. At
December 31, 2009, Oneida Savings Bank has available a $109.9 million line of credit with the
Federal Home Loan Bank of which none was outstanding at December 31, 2009. In addition, we can
utilize investment and mortgage-backed securities as collateral for repurchase agreements. We also
maintain lines of credit with various commercial banks as an additional source of short-term
borrowing. At December 31, 2009, we had approximately $10.0 million available under these
borrowing arrangements.
We must also maintain adequate levels of liquidity to satisfy loan commitments. At December
31, 2009, we had outstanding commitments to originate loans of $63.0 million. We anticipate having
sufficient funds to meet current loan commitments.
Certificates of deposit, which are scheduled to mature in one year or less from December 31,
2009, totaled $123.4 million. Based upon our experience and current pricing strategy, management
believes that a significant portion of such deposits will remain with the bank. Deposits less than
$100,000 totaled $279.2 million at December 31, 2009.
Management believes that our liquidity policies and sources are effective to satisfy current
and anticipated financial commitments.
Capital Requirements.
The FDIC has adopted risk-based capital guidelines to which Oneida
Savings Bank is subject. The guidelines establish a systematic analytical framework that makes
regulatory capital requirements more sensitive to differences in risk profiles among banking
organizations. Oneida Savings Bank is required to maintain certain levels of regulatory capital in
relation to regulatory risk-weighted assets. The ratio of such regulatory capital to regulatory
risk-weighted assets is referred to as Oneida Savings Bank's "risk-based capital ratio."
Risk-based capital ratios are determined by allocating assets and specified off-balance sheet items
to four risk-weighted categories ranging from 0% to 100%, with higher levels of capital being
required for the categories perceived as representing greater risk.
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These guidelines divide a savings bank's capital into two tiers. The first tier ("Tier I")
includes common equity, retained earnings, certain non-cumulative perpetual preferred stock
(excluding auction rate issues) and minority interests in equity accounts of consolidated
subsidiaries, less goodwill and other intangible assets (except mortgage servicing rights and
purchased credit card relationships subject to certain limitations). Supplementary ("Tier II")
capital includes, among other items, cumulative perpetual and long-term limited-life preferred
stock, mandatory convertible securities, certain hybrid capital instruments, term subordinated debt
and the allowance for loan and lease losses, subject to certain limitations, less required
deductions.
Based on the foregoing, Oneida Savings Bank is currently classified as a "well capitalized"
savings institution. The following table sets forth information regarding Oneida Savings Bank's
capital levels as of December 31, 2009.
To Be Well
capitalized Under
Minimum
prompt Corrective
Required
Action Provisions
Actual
Tier I Capital to Average Assets
4
%
5
%
7.19
%
Tier I Capital to Risk-Weighted Assets
4
%
6
%
10.00
%
Total Capital to Risk-Weighted Assets
8
%
10
%
10.73
%
Contractual Obligations, Commitments, and Off-Balance Sheet Arrangements.
We have
various financial obligations, including contractual obligations and commitments that may require
future cash payments.
Contractual Obligations:
The following table presents as of December 31, 2009, significant
fixed and determinable contractual obligations to third parties by payment date. Further discussion
of the nature of each obligation is included in the referenced note to the consolidated financial
statements.
(Dollars in thousands)
Payments Due In
Note
One Year or
One to Three
Three to Five
Over Five
Contractual Obligation
Reference
Less
Years
Years
Years
Total
Certificates of Deposit
8
$
123,358
$
22,385
$
11,156
$
4
$
156,903
Borrowings
9
$
19,000
$
6,000
$
6,000
—
$
31,000
Commitments and Off-Balance Sheet Arrangements:
In the normal course of business, to meet
the financing needs of its customers and to reduce its exposure to fluctuations in interest rates,
we are a party to financial instruments with off-balance sheet risk, held for purposes other than
trading. The financial instruments involve, to varying degrees, elements of credit and interest
rate risk in excess of the amount recognized in the consolidated balance sheets. Our exposure to
credit loss in the event of nonperformance by the other party to the financial instrument, for loan
commitments and standby letters of credit, is represented by the contractual amount of those
instruments, assuming that the amounts are fully advanced and that collateral or other security is
of no value. We use the same credit policies in making such commitments as for on-balance sheet
loans. The amount of collateral obtained, if deemed necessary by us upon extension of credit, is
based on management's credit evaluation of the borrower . Commitments to originate loans, unused
lines of credit, and unadvanced portions of construction loans are agreements to lend to a customer
provided there is no violation of any condition established in the contract. Commitments generally
have fixed expiration dates or other termination clauses and may require payment of a fee. Many of
the commitments are expected to expire without being drawn upon. Therefore, the amounts presented
below do not necessarily represent future cash requirements. Standby letters of credit are
conditional commitments that we issue to guarantee the performance by a customer to a third
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party. These guarantees are issued primarily to support public and private borrowing
arrangements, bond financing, and similar transactions. The credit risk involved in issuing letters
of credit is essentially the same as that involved in extending loan commitments to customers.
The following table details the amounts and expected maturities of significant commitments and
off-balance sheet arrangements as of December 31, 2009. Further discussion of these commitments and
off-balance sheet arrangements is included in Note 14 to the consolidated financial statements.
One Year
One to
Three to
Over
Commitments to extend credit:
or Less
Three years
Five years
Five years
Total
(In thousands)
Commercial real estate and commercial business
$
39,197
$
473
$
1,000
$
—
$
40,670
Residential real estate
4,224
—
—
—
4,224
Revolving home equity lines
302
732
3,119
12,236
16,389
Consumer revolving credit
1,308
—
—
—
1,308
Standby letters of credit
360
—
—
—
360
Impact of Inflation and Changing Prices
Our consolidated financial statements and related notes have been prepared in accordance with
accounting principles generally accepted in the United States of America ("GAAP"). GAAP generally
requires the measurement of financial position and operating results in terms of historical dollars
without consideration of changes in the relative purchasing power of money over time due to
inflation. The impact of inflation is reflected in the increased cost of our operations. Unlike
industrial companies, our assets and liabilities are primarily monetary in nature. As a result,
changes in market interest rates have a greater impact on performance than the effects of
inflation.
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BUSINESS OF ONEIDA FINANCIAL—NEW
Oneida Financial-New is a Maryland corporation, organized in March 2010. Upon completion of
the conversion, Oneida Financial-New will become the holding company of Oneida Savings Bank and
will succeed to all of the business and operations of Oneida Financial Corp. and each of Oneida
Financial Corp. and Oneida Financial, MHC will cease to exist.
Initially following the completion of the conversion, Oneida Financial-New will have no
significant assets other than owning 100% of the outstanding common stock of Oneida Savings Bank,
the net proceeds it retains from the offering, part of which will be used to make a loan to the
Oneida Savings Bank Employee Stock Ownership Plan, and will have no significant liabilities. See
"How We Intend to Use the Proceeds From the Offering." Oneida Financial-New intends to use the
support staff and offices of Oneida Savings Bank and will pay Oneida Savings Bank for these
services. If Oneida Financial-New expands or changes its business in the future, it may hire its
own employees.
Oneida Financial-New intends to invest the net proceeds of the offering as discussed under
"How We Intend to Use the Proceeds From the Offering." In the future, we may pursue other business
activities, including mergers and acquisitions, investment alternatives and diversification of
operations. There are, however, no current understandings or agreements for these activities.
BUSINESS OF ONEIDA FINANCIAL CORP.
AND ONEIDA SAVINGS BANK
Oneida Financial Corp.
Oneida Financial Corp. is a federally chartered corporation that was formed in 2001 as the
successor to a Delaware corporation of the same name. Oneida Financial Corp. owns all of the
outstanding shares of common stock of Oneida Savings Bank. At December 31, 2009, Oneida Financial
Corp. had consolidated assets of $590.5 million, deposits of $489.4 million and stockholders'
equity of $59.1 million.
Oneida Savings Bank became the wholly owned subsidiary of Oneida Financial Corp. in 1998 when
Oneida Savings Bank reorganized from a New York chartered mutual savings bank into the two-tiered
mutual holding company structure. In connection with the reorganization, Oneida Financial Corp.
sold 3,745,698 shares, as adjusted for 3 for 2 stock splits in 2002 and 2004 (1,664,755 shares
originally issued) of its common stock to the public, representing 46.5% of the outstanding shares,
at $4.44 per share as adjusted for the stock splits ($10 per share original issue price) and
received net proceeds of $15.9 million. An additional 4,309,750 shares as adjusted for the stock
splits (1,915,445 shares originally issued), or 53.5% of the outstanding shares of Oneida Financial
Corp., were issued to Oneida Financial, MHC. As part of the reorganization and offering, we
established an employee stock ownership plan which acquired 299,655 shares as adjusted for the
stock splits (133,180 shares originally issued) of Oneida Financial Corp. in the offering, financed
by a loan from Oneida Financial Corp., and a charitable foundation which was granted 157,864 shares
as adjusted for the stock splits (70,162 shares originally issued).
Oneida Financial Corp.'s Internet address is www.oneidafinancial.com. Oneida Financial
Corp.'s principal executive office is located at 182 Main Street, Oneida, New York 13421, and its
telephone number at that address is (315) 363-2000.
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Oneida Savings Bank
Oneida Savings Bank is a New York chartered savings bank headquartered in Oneida, New York.
Oneida Savings Bank was originally founded in 1866 as a mutual (meaning no stockholders) savings
bank. In 1998, Oneida Savings Bank converted to a New York chartered stock savings bank and
reorganized from the mutual to the two-tiered mutual holding company form of organization. Since
1998 Oneida Savings Bank has organically grown its traditional community banking franchise while
opportunistically employing an acquisition strategy that has both expanded banking operations and
diversified Oneida Savings Bank into the areas of insurance sales, financial services, employee
benefit consulting and other risk management products and services.
Oneida Savings Bank is a community bank engaged primarily in the business of accepting
deposits from customers through its main office and 11 full service branch offices and using those
deposits, together with funds generated from operations and borrowings to make one-to-four family
residential and commercial real estate loans, commercial business loans, consumer loans and to
invest in mortgage-backed and other securities. Municipal deposit banking services are provided
through a limited purpose commercial bank subsidiary, State Bank of Chittenango. Oneida Savings
Bank also sells insurance and other commercial services and products through Bailey & Haskell
Associates, its insurance agency subsidiary, and provides employee benefit consulting services
through its wholly owned subsidiary Benefit Consulting Group. In addition, Oneida Savings Bank
provides risk management services to help mitigate and prevent work related injuries through its
wholly owned subsidiary Workplace Health Solutions.
Oneida Savings Bank's deposits are insured by the Federal Deposit Insurance Corporation up to
the maximum amount permitted by law. Oneida Savings Bank is subject to comprehensive regulation
and examination by the Federal Deposit Insurance Corporation and the New York State Banking
Department.
Market Area
We conduct business from our headquarters and 10 full service branch offices throughout
Madison and Oneida Counties and 1 full service branch office in Onondaga County in New York. Our
primary lending area is Madison and Oneida Counties in New York and surrounding counties, and most
of our deposit customers reside in the same area. The City of Oneida is located approximately 30
miles east of Syracuse and 20 miles west of Utica. Our market area is characterized as rural and
serves as a bedroom community to the cities of Syracuse and Utica, New York. The economy in our
market area is relatively diverse with health care, college/university, financial/insurance and
tourism/recreation being the most prominent sectors as well as light manufacturing and technology
related industries. The largest employers in our market area includes Oneida Indian Nation's
Turning Stone Casino and Resort, Oneida Healthcare Center and other local and regional medical
facilities, Colgate University and Morrisville College. There are also many small to mid-sized
businesses that employ fewer than 100 persons and support the local economy. Madison, Oneida and
Onondaga Counties have a total population of 760,000 and total households of 302,000 according to
SNL Financial. Since 2000, our primary market area has had population declines, with the exception
of Madison County which has demonstrated population growth generally in line with the New York
state average according to SNL Financial.
In view of the current economic downturn and despite the population trends, our primary market
area has remained a stable banking market. As of December 2009, the unemployment rates in Madison,
Oneida and Onondaga Counties in New York were 8.4%, 7.5% and 7.6%, respectively, compared to the
State of New York average of 8.8% and the national average of 9.7%, according to the United States
Department of Labor. As of June 30, 2009, median household income levels ranged from $47,038 to
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$53,512 in the three counties where we maintain branch offices. The median household income growth
rates of persons residing in Oneida, Madison and Onondaga Counties were below that of New York
State and the United States from 2000 to 2009. However, the median household income growth rates
in Madison, Oneida and Onondaga Counties are expected to grow at rates of 7.8%, 9.8% and 8.7%,
respectively, between 2009 to 2014 compared to 6.1% for the State of New York average and 4.1% for
the national average according to estimates by SNL Financial.
Competition
Competition in the banking and financial services industry is intense. We compete with
commercial banks, savings institutions, mortgage banking firms, credit unions, finance companies,
mutual funds, insurance companies, and brokerage and investment banking firms operating locally and
elsewhere. Many of these competitors have substantially greater resources and lending limits than
we do and may offer certain services that we do not or cannot provide. Moreover, credit unions
which offer substantially the same services as we offer are not subject to federal or state income
taxation. Trends toward the consolidation of the financial services industry and the removal of
restrictions on interstate branching and banking powers may make it more difficult for smaller
institutions such as Oneida Savings Bank to compete effectively with large national and regional
banking institutions. Our profitability depends upon the ability to successfully compete in our
market area.
Lending Activities
General.
Our principal lending activity has been the origination for retention in our
portfolio of adjustable-rate mortgage ("ARM") loans collateralized by one-to-four family
residential real estate located within our primary market area. As a result of the continuation of
relatively low market interest rates in recent periods, borrowers have shown a preference for
fixed-rate loans. Consequently, in recent periods we have originated more fixed-rate one-to-four
family loans for resale in the secondary market, without recourse and on a servicing retained
basis. In order to complement our traditional emphasis of one-to-four family residential real
estate lending, management has sought to increase the number of higher yielding commercial real
estate loans, consumer loans and commercial business loans. To a limited extent, we will originate
loans secured by multi-family properties.
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Loan Portfolio Composition.
Set forth below is selected information concerning the
composition of our loan portfolio (including loans held for sale) in dollar amounts and in
percentages (before deductions for allowance for loan losses) as of the dates indicated.
At December 31,
2009
2008
2007
2006
2005
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
Real Estate Loans
:
One-to-four family
$
101,095
33.8
%
$
108,702
35.7
%
$
98,707
34.4
%
$
85,467
34.2
%
$
81,018
34.1
%
Multi-family
8,915
3.0
5,824
1.9
3,988
1.4
2,423
0.9
2,695
1.1
Home equity
43,014
14.4
39,684
13.0
32,363
11.3
25,088
10.1
22,189
9.3
Construction and land
4,731
1.6
1,331
0.4
4,225
1.5
6,496
2.6
4,860
2.0
Commercial real estate
59,178
19.8
60,516
19.8
63,936
22.2
50,714
20.4
48,746
20.5
Total real estate loans
216,933
72.6
216,057
70.8
203,219
70.8
170,188
68.2
159,508
67.0
Consumer Loans
:
Automobile loans
39,067
13.1
41,879
13.7
38,871
13.5
39,885
16.0
41,123
17.3
Recreational Vehicles
1,278
0.4
1,347
0.4
1,156
0.4
968
0.4
920
0.4
Personal loans
1,897
0.6
2,715
0.9
2,680
1.0
2,236
1.0
2,058
0.9
Other consumer loans
768
0.3
877
0.3
1,070
0.4
953
0.3
794
0.3
Total consumer loans
43,010
14.4
46,818
15.3
43,777
15.3
44,042
17.7
44,895
18.9
Commercial business loans
38,797
13.0
42,241
13.9
39,933
13.9
35,292
14.1
33,633
14.1
Total consumer and
commercial business loans
81,807
27.4
89,059
29.2
83,710
29.2
79,334
31.8
78,528
33.0
Total loans
$
298,740
100.0
%
$
305,116
100.0
%
$
286,929
100.0
%
$
249,522
100.0
%
$
238,036
100.0
%
Less:
Allowance for losses
2,901
2,624
2,511
2,081
1,959
Total loans receivable, net
$
295,839
$
302,492
$
284,418
$
247,441
$
236,077
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The following table sets forth the composition of our loan portfolio (including loans
held for sale) by fixed and adjustable rates at the dates indicated.
At December 31,
2009
2008
2007
2006
2005
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
FIXED-RATE LOANS:
Real Estate Loans:
One-to-four family
$
33,121
11.1
%
$
33,182
11.0
%
$
36,141
12.6
%
$
25,483
10.2
%
$
25,655
10.8
%
Multi-family
145
0.0
175
0.0
67
0.0
—
—
—
—
Home equity
14,736
4.9
20,198
6.6
17,317
6.1
13,002
5.3
10,716
4.5
Construction and land
4,592
1.6
1,191
0.4
2,481
0.9
6,418
2.6
4,275
1.8
Commercial real estate
3,390
1.1
3,212
1.0
4,230
1.4
3,240
1.3
3,928
1.7
Total real estate loans
55,984
18.7
57,958
19.0
60,236
21.0
48,143
19.4
44,574
18.8
Total consumer loans
41,919
14.0
44,992
14.7
42,657
14.9
43,380
17.4
44,189
18.6
Total commercial loans
21,337
7.2
21,112
7.0
17,770
6.2
17,157
6.9
14,112
5.9
Total fixed-rate loans
119,240
39.9
124,062
40.7
120,663
42.1
108,680
43.7
102,875
43.3
ADJUSTABLE-RATE LOANS:
Real Estate Loans:
One-to-four family
$
67,974
22.7
%
$
75,520
24.7
%
$
62,566
21.8
%
$
59,984
24.0
%
$
55,363
23.3
%
Multi-family
8,770
3.0
5,649
1.9
3,921
1.4
2,423
0.9
2,695
1.1
Home equity
28,278
9.5
19,486
6.4
15,046
5.2
12,086
4.8
11,473
4.8
Construction and land
139
0.0
140
0.0
1,744
0.6
78
0.0
585
0.2
Commercial real estate
55,788
18.7
57,304
18.8
59,706
20.8
47,474
19.1
44,818
18.8
Total real estate loans
160,949
53.9
158,099
51.8
142,983
49.8
122,045
48.8
114,934
48.2
Total consumer loans
1,091
0.4
1,826
0.6
1,120
0.4
662
0.3
706
0.3
Total commercial business loans
17,460
5.8
21,129
6.9
22,163
7.7
18,135
7.2
19,521
8.2
Total adjustable-rate loans
179,500
60.1
181,054
59.3
166,266
57.9
140,842
56.3
135,161
56.7
Total loans
298,740
100.0
%
305,116
100.0
%
286,929
100.0
%
249,522
100.0
%
238,036
100.0
%
Less:
Allowance for loan losses
2,901
2,624
2,511
2,081
1,959
Total loans receivable, net
$
295,839
$
302,492
$
284,418
$
247,441
$
236,077
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One-to-four family Residential Loans.
One of our primary lending activities is the
origination of one-to-four family residential mortgage loans secured by property located in our
primary lending area. Generally, one-to-four family residential mortgage loans are made in amounts
up to 80% of the lesser of the appraised value or purchase price of the property. However, we will
originate one-to-four family loans with loan-to-value ratios of up to 97%, provided the borrower
obtains private mortgage insurance. Fixed-rate loans are originated for terms of up to 30 years.
One-to-four family fixed-rate loans are offered with a monthly payment feature. We do not
originate and have not originated sub-prime, Alt-A, negative amortization or other higher risk
residential mortgage loans.
We originate both adjustable-rate and fixed-rate one-to-four family loans. As a result of the
continued low interest rate environment during the past year, a greater percentage of our
one-to-four family loan originations consisted of fixed-rate one-to-four family mortgage loans. We
originate and generally sell in the secondary market fixed-rate one-to-four family loans on a
servicing retained basis without recourse to Oneida Savings Bank. At December 31, 2009, loans
serviced by Oneida Savings Bank for others totaled $126.3 million. During the years ended December
31, 2009 and December 31, 2008, we sold $55.9 million and $18.6 million, respectively, in
fixed-rate one-to-four family loans. As of December 31, 2009, we had $4.7 million of mortgage loan
forward sale commitments. The fair value of these commitments is not material.
The interest rate on ARM loans is indexed to the one year Treasury bill rate. Our ARM loans
currently provide for maximum rate adjustments of 200 basis points per year and 500 basis points
over the term of the loan. We offer ARM loans with initial interest rates that are below the fully
indexed equivalent loan rate, referred to as "teaser rates." Residential ARM loans amortize over a
maximum term of up to 30 years. In addition to one year ARM loans, we offer certain hybrid ARM
loans which provide for an initial fixed term of three or five years and then are converted into a
one year ARM loan after the fixed time period. ARM loans are originated for retention in our
portfolio.
ARM loans decrease the risk associated with changes in market interest rates by periodically
repricing, but involve other risks. As interest rates increase, the underlying required periodic
payments by the borrower increase, thus increasing the potential for default by the borrower. At
the same time, the marketability of the underlying collateral may be adversely affected by higher
interest rates. Upward adjustment of the contractual interest rate is also limited by the maximum
periodic and lifetime interest rate adjustment permitted by the terms of the ARM loans, and
therefore, is potentially limited in effectiveness during periods of rapidly rising interest rates.
Decreasing interest rates could result in a downward adjustment of the contractual interest rates
resulting in lower interest income. At December 31, 2009, 22.7% of our loan portfolio consisted of
one-to-four family residential loans with adjustable interest rates.
All one-to-four family residential mortgage loans originated by Oneida Savings Bank include
"due-on-sale" clauses, which give us the right to declare a loan immediately due and payable in the
event that, among other things, the borrower sells or otherwise disposes of the real property
subject to the mortgage and the loan is not repaid.
At December 31, 2009, approximately $101.1 million, or 33.8% of our loan portfolio, consisted
of one-to-four family residential loans.
Home Equity Loans.
We offer home equity loans that are secured by the borrower's primary
residence. We offer a home equity line of credit under which the borrower is permitted to draw on
the home equity line of credit during the first ten years after it is originated and repay the
outstanding balance over a term not to exceed 25 years from the date the line of credit is
originated. The interest rates on home equity lines of credit are fixed for the first year and
adjust monthly thereafter at a margin over the
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prime interest rate. We also offer a home equity product providing for a fixed-rate of interest.
Both adjustable-rate and fixed-rate home equity loans are underwritten under the same criteria that
we use to underwrite one-to-four family fixed-rate loans. Fixed-rate home equity loans are
originated with terms up to ten years. Home equity loans may be underwritten with a loan to value
ratio of 90% when combined with the principal balance of the existing mortgage loan. The maximum
amount of a home equity loan may not exceed $1.0 million unless approved by the Board of Directors.
We generally require an appraisal on the property securing loans in excess of $75,000 at the time
of the loan application (but not thereafter) in order to determine the value of the property
securing the home equity loans. We utilize alternative methods in determining the value of
properties of loans less than $75,000 such as a limited appraisal or review of tax bills. At
December 31, 2009, the outstanding balance of home equity loans totaled $43.0 million, or 14.4% of
our loan portfolio.
Commercial Real Estate Loans.
At December 31, 2009, $68.1 million, or 22.8% of the total loan
portfolio consisted of commercial real estate and multi-family loans. Commercial real estate and
multi-family residential loans are secured by office buildings, medical facilities, mixed-use
properties, religious facilities, other commercial properties and multi-family residential
properties. We originate adjustable rate commercial mortgage loans with terms of up to 20 years.
The maximum loan-to-value ratio of commercial real estate loans is 80%. At December 31, 2009, the
largest commercial real estate loan had a principal balance of $2.8 million and was secured by a
car dealership building and fixtures. This loan was performing in accordance with its terms at
December 31, 2009.
In underwriting commercial real estate and multi-family residential loans, we review the
expected net operating income generated by the real estate to ensure that it is at least 110% of
the amount of the monthly debt service; the age and condition of the collateral; the financial
resources and income level of the borrower; and the borrower's business experience. Personal
guarantees are routinely obtained from all commercial real estate borrowers.
Loans secured by commercial real estate and multi-family residential properties generally are
larger than one-to-four family residential loans and involve a greater degree of risk. Commercial
and multi-family residential mortgage loans often involve large loan balances to single borrowers
or groups of related borrowers. Payments on these loans depend to a large degree on the results of
operations and management of the properties or underlying businesses, and may be affected to a
greater extent by adverse conditions in the real estate market or the economy in general.
Accordingly, the nature of commercial real estate loans makes them more difficult for management to
monitor and evaluate.
Construction and Land.
At December 31, 2009, construction and land loans totaled $4.7
million, or 1.6% of the total loan portfolio. We generally do not originate speculative
construction loans, and we had no such loans in our portfolio at December 31, 2009. Our
construction and land loans consisted of $700,000 of fixed rate one-to-four family residential
construction loans as well as $4.0 million of commercial construction loans. One-to-four family
residential construction loans are offered as interest-only loans at a fixed rate of interest for
up to a five month construction period. Immediately following the construction period the loan
begins monthly amortizing payments consistent with the terms of the one-to-four family permanent
mortgage loan product. Commercial construction loans can consist of land development loans or new
building construction loans. Land development loans are collateralized by a mortgage on the
property which is supported by an appraisal. Commercial construction loans are given for the
construction phase of a building. There can be an interest only period for new construction loans
not to exceed one year. Once the construction is completed, the loan is transferred into permanent
financing. Draws for both residential and commercial new construction are based on the loan
approval, commitment letter, and a building and loan agreement. Property inspections during the
construction phase are also required.
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Construction financing generally involves greater credit risk than long-term financing on
improved, owner-occupied real estate. Risk of loss on a construction loan depends largely upon the
accuracy of the initial estimate of the value of the property at completion of construction
compared to the estimated cost (including interest) of construction and other assumptions. If the
estimate of construction cost proves to be inaccurate, we may be required to advance additional
funds beyond the amount originally committed in order to protect the value of the property.
Moreover, if the estimated value of the completed project proves to be inaccurate, the borrower may
hold a property with a value that is insufficient to assure full repayment of the construction loan
upon the sale of the property. In the event we make a land acquisition loan on property that is
not yet approved for the planned development, there is the risk that approvals will not be granted
or will be delayed. Construction loans also expose us to the risk that improvements will not be
completed on time in accordance with specifications and projected costs. In addition, the ultimate
sale or rental of the property may not occur as anticipated.
Consumer Lending
. At December 31, 2009, consumer loans totaled $43.0 million, or 14.4% of the
total loan portfolio. Our consumer loans consist of automobile loans, recreational vehicle loans,
secured personal loans (secured by bonds, equity securities or other readily marketable
collateral), and other consumer loans (consisting of passbook loans and unsecured home improvement
loans). Consumer loans are originated with terms to maturity of three to seven years.
Historically, we have sought to increase the level of consumer loans primarily through increased
automobile lending. We participate in a number of indirect automobile lending programs with local
automobile dealerships. All indirect automobile loans must satisfy our underwriting criteria for
automobile loans originated directly by us to the borrower and must be approved by one of our
lending officers. At December 31, 2009, loans secured by automobiles totaled $39.1 million, of
which $31.1 million were originated through our indirect automobile lending program. We have also
sought to increase the level of automobile loans directly to borrowers by increasing marketing
efforts with existing customers. Automobile loans generally do not have terms exceeding five
years. We do not provide financing for leased automobiles.
Consumer loans generally have shorter terms and higher interest rates than one-to-four family
mortgage loans. In addition, consumer loans expand the products and services we offer to better
meet the financial services needs of our customers. Consumer loans generally involve greater
credit risk than residential mortgage loans because of the difference in the underlying collateral.
Repossessed collateral for a defaulted consumer loan may not provide an adequate source of
repayment of the outstanding loan balance because of the greater likelihood of damage to, loss of,
or depreciation in the underlying collateral. The remaining deficiency often does not warrant
further substantial collection efforts against the borrower beyond obtaining a deficiency judgment.
In addition, consumer loan collections depend on the borrower's personal financial stability.
Furthermore, the application of various federal and state laws, including federal and state
bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans.
Our underwriting procedures for consumer loans include an assessment of the applicant's credit
history and the ability to meet existing and proposed debt obligations. Although the applicant's
creditworthiness is the primary consideration, the underwriting process also includes a comparison
of the value of the security to the proposed loan amount. We underwrite consumer loans internally,
which we believe limits our exposure to credit risks associated with loans underwritten or
purchased from brokers and other external sources.
Commercial Business Loans.
At December 31, 2009, we had $38.8 million of commercial business
loans which represented 13.0% of the total loan portfolio. Commercial business loans are
originated with terms of up to seven years, at fixed rates of interest except for lines of credit
which have variable rates of interest. Commercial business loans are generally originated to
persons with a prior relationship with Oneida Savings Bank or referrals from persons with a prior
relationship with Oneida
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Savings Bank. The decision to grant a commercial business loan depends primarily on the
creditworthiness and cash flow of the borrower (and any guarantors) and secondarily on the value of
and ability to liquidate the collateral which generally consists of receivables, inventory and
equipment. We generally require annual financial statements and tax returns from our commercial
business borrowers and personal guarantees from the commercial business borrowers. We also
generally require an appraisal of any real estate that secures the commercial business loan. At
December 31, 2009, the largest commercial business loan totaled $1.8 million, which was secured by
business assets, life insurance and a residential property of a construction management company.
Although this loan was performing in accordance with its terms at December 31, 2009, this loan was
part of a $2.2 million relationship that we had determined to be impaired at that date. See "Asset
Quality, Delinquencies and Classified Assets" herein for additional information. At December 31,
2009, unsecured commercial business loans totaled $861,000.
Commercial business lending generally involves greater risk than residential mortgage lending
and involves risks that are different from those associated with residential and commercial real
estate lending. Real estate lending is generally considered to be collateral based, with loan
amounts based on predetermined loan to collateral values and liquidation of the underlying real
estate collateral is viewed as the primary source of repayment in the event of borrower default.
Although commercial business loans may be collateralized by equipment or other business assets, the
liquidation of collateral in the event of a borrower default is often an insufficient source of
repayment because equipment and other business assets may be obsolete or of limited use, among
other things. Accordingly, the repayment of a commercial business loan depends primarily on the
creditworthiness of the borrower (and any guarantors), while liquidation of collateral is a
secondary and often insufficient source of repayment.
Loan Maturity Schedule.
The following table sets forth certain information as of December 31,
2009, regarding the amount of loans (including loans held for sale) maturing in our portfolio.
Demand loans having no stated schedule of repayment and no stated maturity and overdrafts are
reported as due in one year or less. All loans are included in the period in which the final
contractual repayment is due.
Ten
One
Three
Through
Beyond
Through
Through
Five
Twenty-
Twenty-
Within
Three
Five
Through
Five
Five
One Year
Years
Years
Ten Years
Years
Years
Total
(In thousands)
Real estate loans:
One-to-four family
$
48
$
564
$
2,264
$
10,621
$
66,121
$
21,477
$
101,095
Multi-family
7
41
644
590
7,633
—
8,915
Home equity
235
1,605
5,288
31,368
4,518
—
43,014
Construction and land
4,731
—
—
—
—
—
4,731
Commercial real estate
39
385
1,867
12,945
43,942
—
59,178
Total real estate loans
5,060
2,595
10,063
55,524
122,214
21,477
216,933
Consumer loans
2,187
10,849
22,228
7,307
275
164
43,010
Commercial business loans
13,635
6,159
10,797
7,296
910
—
38,797
Total loans
$
20,882
$
19,603
$
43,088
$
70,127
$
123,399
$
21,641
$
298,740
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Fixed- and Adjustable-Rate Loan Schedule
.
The following table sets forth at December 31,
2009, the dollar amount of all fixed-rate and adjustable-rate loans (including loans held for sale)
due after December 31, 2010. Adjustable- and floating-rate loans are included based on contractual
maturities.
Due After December 31, 2010
Fixed
Adjustable
Total
(In thousands)
Real estate loans
One-to-four family
$
33,105
$
67,942
$
101,047
Multi-family
138
8,770
8,908
Home equity
14,657
28,122
42,779
Construction and land
—
—
—
Commercial real estate
3,385
55,754
59,139
Total real estate loans
51,285
160,588
211,873
Consumer loans
40,488
335
40,823
Commercial business loans
18,909
6,253
25,162
Total loans
$
110,682
$
167,176
$
277,858
77
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Loan Origination, Sales and Repayments.
The following table sets forth our loan
origination, sales and repayment activities for the periods indicated. Purchased loans represent
those purchased as part of the acquisition of the National Bank of Vernon as well as individual
commercial loans which are considered participation loans. The sales of loans represent
one-to-four family fixed rate loans that are sold in the secondary market within the normal course
of business as well as commercial loans in which a portion of the loan has been sold.
Year Ended December 31,
2009
2008
2007
(Dollars in thousands)
Originations by Type:
Adjustable-Rate:
Real estate:
One-to-four family
$
4,687
$
20,365
$
10,868
Multi-family
3,675
125
969
Home equity
10,267
13,444
5,838
Construction and land
—
—
2,157
Commercial real estate
4,900
5,753
2,858
Total real estate loans
23,529
39,687
22,690
Consumer loans
1,314
1,844
1,632
Commercial business loans
9,223
4,211
8,023
Total adjustable rate loans
$
34,066
$
45,742
$
32,345
Fixed-Rate:
Real estate:
One-to-four family
$
60,405
$
19,663
$
18,024
Multi-family
—
2,068
—
Home equity
3,819
5,940
7,166
Construction and land
8,363
5,670
8,351
Commercial real estate
1,393
—
2,264
Total real estate loans
73,980
33,341
35,805
Consumer loans
18,409
25,296
20,987
Commercial business loans
10,004
16,508
12,779
Total fixed rate loans
$
102,393
$
75,145
$
69,571
Total loans originated
$
136,459
$
120,887
$
101,916
Purchased:
Adjustable-Rate:
Real estate:
One-to-four family
$
—
$
—
$
—
Multi-family
—
—
1,013
Home equity
—
—
2,353
Commercial real estate
—
—
—
Total real estate loans
—
—
3,366
Consumer loans
—
—
—
Commercial business loans
—
1,000
4,017
Total adjustable loans
$
—
$
1,000
$
7,383
Fixed-Rate:
Real estate:
One-to-four family
$
—
$
—
$
10,676
Multi-family
—
—
—
Home equity
—
—
768
Commercial real estate
—
—
7,307
Total real estate loans
—
—
18,751
Consumer loans
—
—
1,443
Commercial business loans
—
—
1,906
Total fixed rate loans
$
—
$
—
$
22,100
Total loans purchased
$
—
$
1,000
$
29,483
Sales:
Real estate:
One-to-four family
$
55,935
$
18,572
$
17,938
Commercial loans
1,410
—
—
Total loans sold
$
57,345
$
18,572
$
17,938
Repayments:
Real estate:
One-to-four family
$
16,764
$
11,461
$
8,390
Multi-family
584
357
417
Home equity
10,756
12,063
8,850
Construction and land
4,963
8,564
12,779
Commercial real estate
7,631
9,173
(793
)
Total real estate loans
40,698
41,618
29,643
Consumer loans
23,531
24,099
24,327
Commercial business loans
21,261
19,411
22,084
Total repayments
$
85,490
$
85,128
$
76,054
Total reductions
$
142,835
$
103,700
$
93,992
Net (decrease) increase
$
(6,376
)
$
18,187
$
37,407
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Loan Approval Procedures and Authority.
The Board of Directors establishes our lending
policies and loan approval limits. Loan officers generally have the authority to originate
mortgage loans, consumer loans and commercial business loans up to amounts established for each
lending officer. All residential loans over $500,000 must be approved by the Bank Loan Committee
(consisting of two persons; the President and/or Executive Vice President in charge of credit
administration and either one of two senior lending officers appointed to this committee). All
loan relationships in excess of $500,000 and up to $2.0 million (exclusive of residential mortgages
and home equity loans secured by a lien on the borrower's primary residence) must be approved by
the Bank Loan Committee. All lending relationships in excess of $2.0 million up to $3.0 million
(exclusive of residential mortgages and home equity loans secured by a lien on the borrower's
primary residence) must be approved by the Executive Committee of the Board of Directors. All
lending relationships in excess of $3.0 million must be approved by the Board of Directors.
All independent appraisers are approved by the Board of Directors annually. We require an
environmental site assessment for all non-residential mortgage loans. Our policy is to require
hazard insurance on all mortgage loans and generally to require title insurance on all residential
mortgage loans.
Loan Origination Fees and Other Income
.
In addition to interest earned on loans, we receive
loan origination fees. Such fees and costs vary with the volume and type of loans and commitments
made and purchased, principal repayments and competitive conditions in the mortgage markets, which
in turn respond to the demand and availability of money.
In addition to loan origination fees, we also receive other fees, servicing income and other
income that consist primarily of mortgage servicing fees and late charges.
Loans-to-One Borrower
. Savings banks are subject to the same loans-to-one borrower limits as
those applicable to national banks, which under current regulations restrict loans to one borrower
to an amount equal to 15% of unimpaired net worth on an unsecured basis, and an additional 10% of
unimpaired net worth in the case of loans that are fully secured by readily marketable collateral
having a market value, as determined by reliable and continuously available price quotations at
least equal to the amount of the loan. Our policy provides that loans to one borrower (or related
borrowers) should not exceed 15% of our capital.
At December 31, 2009, the largest amount loaned to one borrower consisted of commercial real
estate loans secured by medical office space to a corporation with an outstanding balance totaling
$4.8 million. This amount consisted of four commercial real estate loans secured by the property
and other business assets. At December 31, 2009, this lending relationship was performing in
accordance with its terms.
Asset Quality, Delinquencies and Classified Assets
Collection Procedures.
A computer generated late notice is sent one day after a loan's grace
period ends. After the late notice has been mailed, accounts are assigned to collectors for
follow-up to determine reasons for delinquency and explore payment options. Generally, loans that
are 30 days delinquent will receive a default notice. With respect to consumer loans, we will
commence efforts to repossess the collateral after the loan becomes 45 days delinquent. Loans
secured by real estate that are delinquent over 60 days are turned over to our Managed Asset
Manager. Generally, after 90 days we will commence legal action.
Loans Past Due and Nonperforming Assets
.
Loans are reviewed on a regular basis and are placed
on non-accrual status when they are 90 days past due or earlier when, in the opinion of
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management, the collection of additional interest is doubtful. Loans are generally placed on
non-accrual status when either principal or interest is 90 days or more past due. Interest accrued
and unpaid at the time a loan is placed on a non-accrual status is reversed from interest income.
Real estate acquired as a result of foreclosure or by deed in lieu of foreclosure is
classified as Other Real Estate ("REO") until such time as it is sold. When real estate is
acquired through foreclosure or by deed in lieu of foreclosure, it is recorded at its fair value,
less estimated costs of disposal. If the value of the property is less than the loan balance, less
any related specific loan loss provisions, the difference is charged against the allowance for loan
losses. Any subsequent write-down of REO is charged against earnings.
The following table sets forth certain delinquencies in our loan portfolio as of December 31,
2009. When a loan is delinquent 90 days or more or earlier when, in the opinion of management, the
collection of additional interest is doubtful, we fully reverse all interest accrued and ceases to
accrue interest thereafter.
Loans Delinquent for:
60-89 Days
90 Days or More
Total Delinquent Loans
Number
Amount
Number
Amount
Number
Amount
(Dollars in thousands)
One-to-four family
1
$
39
3
$
195
$
4
234
Multi-family
—
—
—
—
—
—
Home equity
1
21
2
68
3
89
Construction and land
—
—
—
—
—
—
Commercial real estate
1
25
1
199
2
224
Consumer
2
32
—
—
2
32
Commercial business
—
—
—
—
—
—
Total
5
$
117
6
$
462
11
$
579
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Nonaccrual Loans and Nonperforming Assets
.
The following table sets forth information
regarding nonaccrual loans and other nonperforming assets.
At December 31,
2009
2008
2007
2006
2005
(Dollars in thousands)
Non-accruing loans:
One-to-four family
$
195
$
394
$
223
$
51
$
223
Multi-family
—
—
—
—
—
Home equity
68
—
18
—
—
Construction and land
—
—
—
—
—
Commercial real estate
199
—
—
—
—
Consumer
—
—
—
—
2
Commercial business
89
119
134
—
—
Total
551
513
375
51
225
Accruing loans delinquent more than 90 days:
Total
—
—
—
—
—
Total nonperforming loans
$
551
$
513
$
375
$
51
$
225
Foreclosed assets:
Total
—
—
—
—
—
Non-accruing investment securities
Trust preferred securities
1,897
—
—
—
—
Total
1,897
—
—
—
—
Total nonperforming assets
$
2,448
$
513
$
375
$
51
$
225
Total nonperforming loans as a percentage of total loans
0.18
%
0.17
%
0.13
%
0.02
%
0.09
%
Total nonperforming assets as a percentage of total assets
0.41
%
0.09
%
0.07
%
0.01
%
0.05
%
Of our total nonperforming loans at December 31, 2009 of $551,000, $394,000 consisted of
four one-to-four family loans and one commercial real estate loan. The property underlying the
commercial real estate loan with an outstanding balance of $199,000 was foreclosed upon in January
2010 and is currently in the process of being listed for sale. We do not anticipate any material
loss on this loan. In addition, we believe that the four one-to-four family loans with an
aggregate outstanding balance of $195,000 are adequately collateralized and we do not anticipate
any losses on such loans. These loans are in various stages of foreclosure. In addition, $68,000
of the nonperforming loans consisted of two home equity loans. One of these loans has been brought
current since December 31, 2009 and is no longer considered non-performing, and the property
securing the other loan is in the process of being sold. We do not anticipate losses on either of
these loans. Also included in nonperforming loans was $89,000 representing two commercial loans,
each of which is partially guaranteed by SBA. We do not anticipate a loss on either of these
loans.
During the years ended December 31, 2009 and 2008, respectively, gross interest income of
$30,000 and $19,000 would have been recorded on nonaccruing loans under their original terms, if
the loans had been current throughout the period. No interest income was recorded on nonaccruing
loans during the years ended December 31, 2009 and 2008.
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Classification of Assets
.
On the basis of management's review of its assets, at the dates
indicated we had classified assets and other criticized assets as follows:
2009
2008
2007
(In thousands)
Classified assets:
Substandard
$
2,991
$
4,954
$
4,722
Doubtful
239
146
75
Loss
—
—
—
Total classified assets
$
3,230
$
5,100
$
4,797
Impaired assets
8,549
—
—
Special Mention
533
541
2,509
Total criticized assets
$
12,312
$
5,641
$
7,306
At December 31, 2009, our classified assets included loans identified by bank regulatory
definitions of "substandard" and "doubtful". We had no assets classified as "loss" at December 31,
2009. Substandard assets consisted of (i) four commercial loans with a principal balance of
$147,000, (ii) seven commercial real estate loans with a principal balance of $2.4 million and
(iii) seven one-to-four family residential loans with a principal balance of $447,000. Doubtful
assets consisted of (i) three commercial loans with a principal balance of $203,000 and (ii) one
commercial real estate loan with a principal balance of $36,000. In addition to the classified
assets, we have identified certain impaired assets at December 31, 2009 consisting of (i) two
commercial loans with a principal balance of $2.2 million, (ii) eight trust preferred securities
with a carrying value of $5.6 million and (iii) one private placement collateralized mortgage
obligation with a carrying value of $744,000. Included as a component of criticized assets are
loans identified as "special mention" as determined by management according to regulatory guidance.
At December 31, 2009, we had one commercial loan identified as special mention with a principal
balance of $533,000.
Allowance for Loan Losses
.
The allowance for loan losses is a valuation allowance for
probable incurred credit losses. Loan losses are charged against the allowance when management
believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are
credited to the allowance. Management estimates the allowance balance required using past loan
loss experience, the nature and volume of the portfolio, information about specific borrower
situations and estimated collateral values, economic conditions, and other factors. Allocations of
the allowance may be made for specific loans, but the entire allowance is available for any loan
that, in management's judgment, should be charged off. In addition, various regulatory agencies,
as an integral part of their examination process, periodically review our allowance for loan losses
and valuation of real estate owned. Such agencies may require us to recognize additions to the
allowance based on their judgment about information available to them at the time of their
examination. At December 31, 2009, the total allowance was $2.9 million, which amounted to 0.98%
of loans, net and 526.5% of nonperforming loans. Management monitors and modifies the level of the
allowance for loan losses in order to maintain it at a level which it considers adequate to provide
for probable incurred loan losses. For the years ended December 31, 2009 and 2008, we had net
charge-offs of $483,000 and $412,000, respectively, against this allowance.
Quarterly, management evaluates the adequacy of the allowance for loan losses and determines
the appropriate level of provision for loan losses by applying a range of estimated loss
percentages to each category of performing loans and classified loans. The allowance adjustment is
based upon the net change in each portfolio category, as well as adjustments related to impaired
loans, since the prior quarter. A loan is considered impaired, based on current information and
events, if it is probable that we will be unable to collect the scheduled payments of principal or
interest when due according to the contractual terms of the loan agreement. Factors considered by
management in determining impairment include payment status, collateral value, and the probability
of collecting scheduled principal and interest payments when due. The measurement of impaired
loans is generally based on the present value of
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expected future cash flows discounted at the historical effective interest rate, except that all
collateral-dependent loans are measured for impairment based on the estimated fair value of the
collateral securing the loan. Management believes the current method of determining the adequacy
of the allowance is prudent in light of our intention to continue to emphasize the origination of
consumer loans, commercial business loans and commercial real estate loans.
Analysis of the Allowance For Loan Losses
.
The following table sets forth the analysis of the
allowance for loan losses for the periods indicated.
At or For the Years Ended December 31,
2009
2008
2007
2006
2005
(Dollars in thousands)
Balance at beginning of period
$
2,624
$
2,511
$
2,081
$
1,959
$
1,982
Charge-offs:
One-to-four family
17
23
—
17
9
Multi-family
—
—
—
—
—
Home equity
42
—
—
10
10
Construction and land
—
—
—
—
—
Commercial real estate
27
—
—
—
44
Consumer
547
335
215
301
448
Commercial business
60
168
16
99
10
Total
693
526
231
427
521
Recoveries:
One-to-four family
1
2
6
5
10
Multi-family
—
—
—
—
—
Home equity
—
—
—
19
—
Construction and land
—
—
—
—
—
Commercial real estate
15
—
—
—
—
Consumer
178
91
88
139
127
Commercial business
16
21
41
106
1
Total
210
114
135
269
138
Net charge-offs
(483
)
(412
)
(96
)
(158
)
(383
)
Addition of National Bank of Vernon allowance from
acquisition
—
—
526
—
—
Provision charged to operations
760
525
—
280
360
Balance at end of period
$
2,901
$
2,624
$
2,511
$
2,081
$
1,959
Allowance for loan losses as a percentage of total
loans receivable, net
0.98
%
0.87
%
0.88
%
0.84
%
0.83
%
Ratio of net charge-offs to average loans
0.16
%
0.14
%
0.04
%
0.06
%
0.17
%
Ratio of net charge-offs to non-performing loans
87.66
%
80.3
%
25.6
%
309.80
%
170.22
%
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Table of Contents
Allocation of Allowance for Loan Losses
.
The following table sets forth the allocation
of the allowance for loan losses by loan category for the periods indicated.
At December 31,
2009
2008
2007
Percentage of
Loans
Percentage of
Loans
Percentage of
Loans
Amount of
Loan Loss
Loan
Amounts by
in Each
Category to
Amount of
Loan Loss
Loan
Amounts by
in Each
Category to
Amount of
Loan Loss
Loan
Amounts by
in Each
Category to
Allowance
Category
Total Loans
Allowance
Category
Total Loans
Allowance
Category
Total Loans
(Dollars in Thousands)
One-to-four family
$
385
$
101,095
33.8
%
$
387
$
108,702
35.7
%
$
326
$
98,707
34.4
%
Multi-family
33
8,915
3.0
6
5,824
1.9
7
3,988
1.4
Home equity
191
43,014
14.4
368
39,684
13.0
275
32,363
11.3
Construction and land
17
4,731
1.6
4
1,331
0.4
13
4,225
1.5
Commercial real estate
585
59,178
19.8
535
60,516
19.8
821
63,936
22.2
Consumer
431
43,010
14.4
401
46,818
15.3
413
43,777
15.3
Commercial business
1,259
38,797
13.0
923
42,241
13.9
656
39,933
13.9
Total
$
2,901
$
298,470
100.0
%
$
2,624
$
305,116
100.0
%
$
2,511
$
286,929
100.0
%
At December 31,
2006
2005
Percentage
of Loans
Percentage
of Loans
Amount of
Loan Loss
Loan
Amounts by
in Each
Category to
Amount of
Loan Loss
Loan
Amounts by
in Each
Category to
Allowance
Category
Total Loans
Allowance
Category
Total Loans
(Dollars in Thousands)
One-to-four family
$
272
$
85,467
34.2
%
$
369
$
81,018
34.1
%
Multi-family
7
2,423
0.9
9
2,695
1.1
Home equity
221
25,088
10.1
222
22,189
9.3
Construction and land
21
6,496
2.6
18
4,860
2.0
Commercial real estate
518
50,714
20.4
276
48,746
20.5
Consumer
424
44,042
17.7
451
44,895
18.9
Commercial business
618
35,292
14.1
614
33,633
14.1
Total
$
2,081
$
249,522
100.0
%
$
1,959
$
238,036
100.0
%
84
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Securities Investment Activities
The securities investment policy is established by our Board of Directors. This policy
dictates that investment decisions will be made based on the safety of the investment, our
liquidity needs, potential returns, cash flow targets and desired risk parameters. In pursuing
these objectives, management considers the ability of an investment to provide earnings consistent
with factors of quality, maturity, marketability, liquidity and risk diversification.
Our current policies generally limit security investments to U.S. Government and agency
securities, tax-exempt bonds, public utilities debt obligations, corporate debt obligations and
corporate equity securities. In addition, our policy permits investments in mortgage related
securities, including securities issued by government sponsored enterprises such as Fannie Mae,
Freddie Mac and Ginnie Mae. Our investment strategy is to increase overall investment securities
yields while managing interest rate risk. We will only purchase securities rated as investment
grade by a nationally recognized investment rating agency. We do not engage in any hedging
transactions, such as interest rate swaps or caps.
We evaluate securities for other-than-temporary impairment ("OTTI") at least on a quarterly
basis, and more frequently when economic or market concerns warrant such evaluation. In
determining OTTI for debt securities, management considers many factors, including: (1) the length
of time and extent to which the fair value has been less than cost, (2) the financial condition and
near-term prospects of the issuer, (3) whether the market value decline was affected by
macroeconomic conditions and (4) whether we have the intent to sell the debt security or more
likely than not will be required to sell the debt security before its anticipated recovery. The
assessment of whether an other-than-temporary impairment decline exists involves a high degree of
subjectivity and judgment and is based on the information available to management at a point in
time.
At December 31, 2009, we had nine trust preferred securities with an aggregate fair value of
$5.9 million and aggregate unrealized losses of $3.5 million. Of the $5.9 million, $1.9 million
have variable rates of interest. All of these securities are rated below investment grade as of
December 31, 2009. The $1.9 million of variable rate trust preferred securities are on nonaccrual
as of December 31, 2009. The issuers of these securities are primarily banks, but some of the
pools do include a limited number of insurance companies. As of December 31, 2009, through review
of the current and expected cash flow analysis based on the credit quality of the underlying
collateral, the class of securities we own, default probabilities and anticipated losses given
default assumptions and stress tests performed on these securities, eight of the trust preferred
securities have been considered impaired as of December 31, 2009. The other-than-temporary
impairment loss taken for the year ended December 31, 2009 was $2.3 million.
Unrealized losses on other investments have not been recognized into income because the
issuer(s) securities are of investment grade (except for a General Motors Acceptance Corp. bond and
SLMA bond), management does not intend to sell the security and it is more likely than not that
management would be required to sell the securities prior to their anticipated recovery, and the
decline in fair value is largely due to changes in interest rates. The fair value is expected to
recover as the bond(s) approach maturity.
At December 31, 2009, we had a $2.0 million General Motors Acceptance Corp. (GMAC) bond,
maturing October 15, 2010 which has a rating below investment grade. This is a variable rate note
based on the three month Treasury bill. The unrealized loss at December 31, 2009 was $100,000. In
addition, at December 31, 2009, we had a $2.5 million Sallie Mae (SLMA) bond, maturing May 1, 2012
which has a rating below investment grade. This is a variable rate note based on the consumer
price index. The unrealized loss on this security was $402,000 as of December 31, 2009. Both GMAC
and SLMA are paying as agreed. These losses have not been considered other-than-temporary in that
we do not intend to
85
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sell the securities and it is not more likely than not that we will be required to sell these
securities before the recovery of their cost basis, which may be at maturity.
Investment Securities.
At December 31, 2009, we had $96.5 million, or 16.3% of total assets,
invested in investment securities, which consisted primarily of U.S. Government obligations,
tax-exempt securities and corporate debt obligations. There were trust preferred investments with
an aggregate fair value of $5.9 million and an amortized cost of $9.4 million included in corporate
debt obligations at December 31, 2009. We are required to designate securities as held to
maturity, available for sale or trading, depending on our ability and intent regarding our
investments. During 2009, we have designated certain investment securities as held to maturity in
addition to available for sale. Investment securities in which the fair value option has been
elected are considered trading assets and are recorded at fair value with changes in fair value
included in earnings. Trading securities, which consisted of common and preferred equity
securities, totaled $7.6 million or 1.3% of total assets at December 31, 2009. At December 31,
2009, our investment securities portfolio had a weighted average life of 6.84 years.
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Table of Contents
Investment Securities
.
The following table sets forth certain information regarding the
investment securities and other interest earning assets as of the dates indicated.
At December 31,
2009
2008
2007
2006
2005
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
(Dollars in thousands)
Investment securities
available for sale:
Federal agency securities
$
23,964
$
23,896
$
21,015
$
21,217
$
38,019
$
37,963
$
36,909
$
36,264
$
36,546
$
35,459
Corporate debt securities
26,175
22,126
27,802
21,882
23,791
22,455
18,361
18,067
22,696
21,903
State and municipal bonds
17,644
17,988
17,274
17,347
19,120
19,252
15,747
15,706
32,491
32,498
Equity securities
—
—
—
—
18,688
16,155
15,392
15,699
17,012
16,595
Total
$
67,783
$
64,010
$
66,091
$
60,446
$
99,618
$
95,825
$
86,409
$
85,736
$
108,745
$
106,455
Average remaining life of
investment
securities available for sale
6.34 years
7.92 years
6.89 years
5.99  years
7.18  years
Investment securities held to
maturity:
Federal agency securities
$
23,862
$
23,807
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
State and municipal bonds
8,615
8,925
—
—
—
—
—
—
—
—
Total
$
32,477
$
32,732
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Average remaining life of investment
securities held to maturity
7.84 years
—
—
—
—
Trading securities:
Equity securities
—
7,627
—
5,941
—
—
—
—
—
—
Total
$
—
$
7,627
$
—
$
5,941
$
—
$
—
$
—
$
—
$
—
$
—
Other interest earning assets:
Interest-earning deposits
with banks
3,052
3,052
2,589
2,589
1,234
1,234
854
854
1,437
1,437
Federal funds sold
4,103
4,103
71
71
1,717
1,717
6,196
6,196
730
730
FHLB Stock
2,665
2,665
3,784
3,784
3,404
3,404
3,228
3,228
3,858
3,858
Total
$
9,820
$
9,820
$
6,444
$
6,444
$
6,355
$
6,355
$
10,278
$
10,278
$
6,025
$
6,025
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Investment Portfolio Maturities.
The following table sets forth the scheduled
maturities, market value and weighted average yields for our available for sale investment
portfolio at December 31, 2009.
December 31, 2009
After 1 Year
After 5 Years
Within
but Within
but Within
After
1 Year
5 Years
10 Years
10 Years
Total
Carrying
Carrying
Carrying
Carrying
Carrying
Value
Value
Value
Value
Value
(Dollars in Thousands)
Federal agency securities
$
—
$
6,385
$
15,553
$
1,958
$
23,896
Corporate debt securities
5,050
4,042
4,863
8,171
22,126
Tax exempt bonds
911
4,840
8,356
3,881
17,988
Total securities
$
5,961
$
15,267
$
28,772
$
14,010
$
64,010
Weighted average yield (1)
3.83
%
2.69
%
4.16
%
3.32
%
3.59
%
(1)
Weighted average yield has not been adjusted to reflect tax equivalent adjustments.
The following table sets forth the scheduled maturities, market value and weighted
average yields for our held to maturity investment portfolio at December 31, 2009.
December 31, 2009
After 1 Year
After 5 Years
Within
but Within
but Within
After
1 Year
5 Years
10 Years
10 Years
Total
Carrying
Carrying
Carrying
Carrying
Carrying
Value
Value
Value
Value
Value
(Dollars in Thousands)
Federal agency securities
$
8
$
6,000
$
15,854
$
2,000
$
23,862
Tax exempt bonds
45
1,160
3,748
3,662
8,615
Total securities
$
53
$
7,160
$
19,602
$
5,662
$
32,477
Weighted average yield (1)
2.91
%
3.27
%
4.30
%
6.04
%
4.37
%
(1)
Weighted average yield has not been adjusted to reflect tax equivalent adjustments.
Mortgage-Backed Securities
.
We purchase mortgage-backed securities in order to: (i)
generate positive interest rate spreads with minimal administrative expense; (ii) lower our credit
risk; and (iii) increase liquidity. At December 31, 2009, we had $65.7 million or 11.1% of total
assets invested in mortgage-backed securities, of which $15.2 million were classified as held to
maturity. Prior to January 1, 2009, all mortgage-backed securities were classified as available
for sale. The mortgage-backed securities portfolio had coupon rates ranging from 0.63% to 7.79%, a
weighted average yield of 4.47% and a weighted average life (including payment assumption) of 6.72
years at December 31, 2009.
Mortgage-backed securities are created by the pooling of mortgages and the issuance of a
security with an interest rate that is less than the interest rate on the underlying mortgages.
Mortgage-backed securities typically represent a participation interest in a pool of single-family
or multi-family mortgages, although we focus our investments on mortgage-related securities backed
by single-family mortgages. The issuers of such securities (generally U.S. Government agencies and
government sponsored enterprises, including Fannie Mae, Freddie Mac and Ginnie Mae) pool and resell
the participation interests in the form of securities to investors, such as Oneida Savings Bank,
and guarantee the payment of principal and interest to these investors. Mortgage-backed securities
generally yield less than the loans that underlie such securities because of the cost of payment
guarantees and credit enhancements. In addition, mortgage-related securities are usually more
liquid than individual mortgage loans and may be used to collateralize certain of our liabilities
and obligations. Investments in mortgage-backed securities involve a risk that actual prepayments
will be greater than estimated over the life of the security, which
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may require adjustments to the amortization of any premium or accretion of any discount relating to
such instruments thereby reducing the net yield on such securities. There is also reinvestment risk
associated with the cash flows from such securities or in the event such securities are redeemed by
the issuer. In addition, the market value of such securities may be adversely affected by changes
in interest rates. Management reviews prepayment estimates periodically to ensure that prepayment
assumptions are reasonable considering the underlying collateral for the securities at issue and
current interest rates and to determine the yield and estimated maturity of our mortgage-backed
securities portfolio. Of our $65.7 million mortgage-backed securities portfolio at December 31,
2009, $333,249 with a weighted average yield of 4.21% had contractual maturities within five years,
$2.6 million with a weighted average yield of 4.17% had contractual maturities of five to ten years
and $62.8 million with a weighted average yield of 4.50% had contractual maturities of over ten
years. However, the actual maturity of a mortgage-backed security may be less than its stated
maturity due to prepayments of the underlying mortgages or significant defaults of the underlying
mortgages. Prepayments that are faster than anticipated may shorten the life of the security and
may result in a loss of any premiums paid and thereby reduce the net yield on such securities.
Although prepayments of underlying mortgages depend on many factors, the difference between the
interest rates on the underlying mortgages and the prevailing mortgage interest rates generally is
the most significant determinant of the rate of prepayments. Historically, during periods of
declining mortgage interest rates, refinancing generally increases and accelerates the prepayment
of the underlying mortgages and the related security. Under such circumstances, we may be subject
to reinvestment risk because, to the extent that our mortgage related securities prepay faster than
anticipated, we may not be able to reinvest the proceeds of such repayments and prepayments at a
comparable rate of return. During 2009, mortgage interest rates remained at historical low levels
throughout the year. The impact on our mortgage-backed securities portfolio is to increase the
prepayments at a faster rate than anticipated. Conversely, in a rising interest rate environment
prepayments may decline, thereby extending the estimated life of the security and depriving us of
the ability to reinvest cash flows at the increased rates of interest.
Collateralized mortgage obligations ("CMOs") are debt securities issued by a special-purpose
entity that aggregates pools of mortgages and mortgage-backed securities and creates different
classes of securities with varying maturities and amortization schedules, as well as a residual
interest, with each class possessing different risk characteristics. The cash flows from the
underlying collateral are generally divided into "tranches" or classes that have descending
priorities with respect to the distribution of principal and interest cash flows, while cash flows
on pass-through mortgage-backed securities are distributed pro rata to all security holders.
We have a $1.0 million private placement collateralized mortgage obligation which is not rated
as of December 31, 2009. The unrealized loss at December 31, 2009 was $237,000. As of December
31, 2009, through review of the current and expected cash flow analysis based on the credit quality
of the underlying collateral, default probabilities and anticipated losses, this security has been
considered impaired. The other-than-temporary impairment loss taken for the year ended December
31, 2009 was $13,100.
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Mortgage-Backed Securities.
Set forth below is information relating to our mortgage-backed
securities for the periods indicated.
December 31,
2009
2008
2007
2006
2005
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
Cost
Value
Cost
Value
Cost
Value
(In thousands)
Mortgage-backed securities available for sale:
Ginnie Mae
$
11,983
$
12,298
$
23,939
$
24,447
$
2,860
$
2,888
$
994
$
989
$
—
$
—
Fannie Mae
16,418
16,924
19,640
19,840
15,683
15,678
10,224
10,008
9,226
8,937
Freddie Mac
14,902
15,471
22,857
23,190
22,252
22,193
16,571
16,196
18,494
18,034
CMOs
6,758
5,829
7,569
6,839
5,804
5,810
1,903
1,871
2,161
2,103
Total
$
50,061
$
50,522
$
74,005
$
74,316
$
46,599
$
46,569
$
29,692
$
29,064
$
29,881
$
29,074
Mortgage-backed securities held to maturity:
Ginnie Mae
$
5,250
$
5,227
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Fannie Mae
9,965
10,007
—
—
—
—
—
—
—
—
Total
$
15,215
$
15,234
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
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Table of Contents
Sources of Funds
General.
Our primary sources of funds for use in lending, investing and for other general
purposes are deposits, repayments and prepayments of loans and securities, proceeds from sales of
loans and securities, proceeds from maturing securities and cash flows from operations.
Deposits.
We offer a variety of deposit accounts with a range of interest rates and terms.
Our deposit accounts consist of savings, interest-bearing demand accounts, non interest-bearing
checking accounts, money market accounts and certificates of deposit. We also offer IRAs and other
qualified plan accounts. Through our limited purpose subsidiary, State Bank of Chittenango, we
held $86.0 million in municipal deposits at December 31, 2009.
At December 31, 2009, deposits totaled $489.4 million. At December 31, 2009, we had a total
of $156.9 million in certificates of deposit, of which $123.4 million had maturities of one year or
less. Although we have a significant portion of deposits in shorter term certificates of deposit,
management monitors activity on these accounts. Based on historical experience and our current
pricing strategy, management believes it will retain a large portion of such accounts upon
maturity. At December 31, 2009, certificates of deposit with balances of $100,000 or more totaled
$56.7 million.
The flow of deposits is influenced significantly by general economic conditions, changes in
prevailing interest rates, internal pricing decisions and competition. Deposits are obtained
predominantly from the areas in which our branch offices are located. We rely primarily on
competitive pricing of deposit products and customer service and long-standing relationships with
customers to attract and retain these deposits; however, market interest rates and rates offered by
competing financial institutions significantly affect our ability to attract and retain deposits.
We use traditional means of advertising our deposit products, including radio and print media and
generally do not solicit deposits from outside our market area. While we accept certificates of
deposit in excess of $100,000, and may be subject to preferential rates, we do not actively solicit
such deposits as they are more difficult to retain than core deposits. During 2009, the FDIC
temporarily increased federal deposit insurance to $250,000 per depositor from $100,000. In 2009,
Congress enacted legislation to extend the increase to $250,000 in insurable deposits per depositor
until 2013. Moreover, we have elected to participate in the Temporary Liquidity Guarantee Program
pursuant to which the FDIC will provide unlimited deposit coverage for non-interest bearing
accounts, NOW accounts and certain other designated accounts, until June 30, 2010. Historically,
we have not used brokers to obtain deposits. We participate in the Certificate of Deposit Account
Registry Service ("CDARs") that enables the institution to provide customers to access to up to $50
million in FDIC insurance on CD investments.
The following table sets forth our deposit activities for the periods indicated.
Year Ended December 31,
2009
2008
2007
(Dollars in thousands)
Opening balance
$
425,698
$
400,129
$
313,270
Deposits acquired from National Bank of Vernon
—
—
54,631
Deposits
3,835,906
3,766,461
3,373,810
Withdrawals
(3,778,117
)
(3,749,408
)
(3,350,619
)
Interest credited
5,877
8,516
9,037
Ending balance
$
489,364
$
425,698
$
400,129
Net increase (decrease)
$
63,666
$
25,569
$
86,859
Percent increase (decrease)
14.96
%
6.39
%
27.73
%
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Table of Contents
The following table indicates the amount of our certificates of deposit by time remaining
until maturity as of December 31, 2009.
Maturity
3 Months
Over 3 to 6
Over 6 to 12
Over 12
or Less
Months
Months
Months
Total
(In thousands)
Certificates of deposit less than $100,000
$
27,413
$
20,917
$
28,704
$
23,180
$
100,214
Certificates of deposit of $100,000 or more
13,219
13,134
19,971
10,365
56,689
Total of certificates of deposit
$
40,632
$
34,051
$
48,675
$
33,545
$
156,903
The following tables set forth information, by various rate categories, regarding the
dollar balance of deposits by types of deposit for the periods indicated.
December 31,
2009
2008
2007
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
Transactions and savings deposits:
Noninterest-bearing
$
62,997
12.87
%
$
60,787
14.28
%
$
65,685
16.42
%
Savings accounts
(1)
82,938
16.95
75,338
17.70
71,345
17.83
Interest-bearing checking
50,931
10.41
41,773
9.81
38,170
9.54
Money market accounts
135,595
27.71
91,975
21.61
72,031
18.00
Total
332,461
67.94
269,873
63.40
247,231
61.79
Certificates of deposit:
Less than 2.00% (2)
106,715
21.81
14,941
3.51
4,482
1.12
2.00-3.99%
34,565
7.06
102,381
24.05
17,491
4.37
4.00-5.99%
15,623
3.19
38,503
9.04
129,217
32.29
6.00-7.99%
—
—
—
—
1,708
0.43
Total certificates of deposit
156,903
32.06
155,825
36.60
152,898
38.21
Total deposits
$
489,364
100.00
%
$
425,698
100.00
%
$
400,129
100.00
%
(1)
Includes mortgage escrow accounts.
(2)
At December 31, 2009, includes $20.3 million of certificates of deposit with rates
below 1.00%.
The following table sets forth the amount and remaining maturities of our certificates of
deposit accounts at December 31, 2009.
Percent
<2.00%
2.00-3.99%
4.00-5.99%
6.00-7.99%
Total
of Total
(Dollars in thousands)
Certificate accounts maturing
in quarter ending:
March 31, 2010
29,978
7,729
2,925
—
40,632
25.90
June 30, 2010
30,008
3,088
955
—
34,051
21.70
September 30, 2010
19,061
2,830
1,542
—
23,433
14.93
December 31, 2010
20,485
3,441
1,316
—
25,242
16.09
March 31, 2011
1,854
1,980
2,318
—
6,152
3.92
June 30, 2011
2,791
1,828
538
—
5,157
3.29
September 30, 2011
922
1,564
614
—
3,100
1.97
December 31, 2011
1,047
388
787
—
2,222
1.42
Thereafter
569
11,717
4,628
—
16,914
10.78
Total
$
106,715
(1)
$
34,565
$
15,623
$
—
$
156,903
100.00
%
Percent of total
68.01
%
22.03
%
9.96
%
0.00
%
100.00
%
(1)
Includes $20.3 million of certificates of deposit with rates below 1.00%.
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Table of Contents
Borrowed Funds.
Our borrowings consist of term advances and repurchase agreements
borrowed under agreements with the Federal Home Loan Bank of New York. In addition we have access
to overnight advances with the FHLBNY and other correspondent banks under line of credit facilities
accessed from time to time. At December 31, 2009, we had access to additional FHLBNY advances of
up to $109.9 million. The following table sets forth information concerning balances and interest
rates on our borrowings at the dates and for the periods indicated.
At and For the Years Ended December 31,
2009
2008
2007
(Dollars in thousands)
Overnight line of credit:
Balance at end of period
$
—
$
3,825
$
—
Average balance during period
248
1,457
102
Maximum outstanding at any month end
—
5,150
—
Weighted average interest rate at end of period
0.00
%
0.44
%
0.00
%
Average interest cost during the year
2.43
%
2.08
%
4.95
%
Term advances:
Balance at end of period
$
28,000
$
36,000
$
43,400
Average balance during period
29,945
41,736
46,608
Maximum outstanding at any month end
34,000
43,400
58,830
Weighted average interest rate at end of period
4.44
%
4.46
%
4.86
%
Average interest cost during the year
4.47
%
4.39
%
4.95
%
Repurchase agreements:
Balance at end of period
$
3,000
$
13,000
$
13,000
Average balance during period
6,041
13,000
13,000
Maximum outstanding at any month end
13,000
13,000
13,000
Weighted average interest rate at end of period
6.74
%
5.39
%
5.39
%
Average interest cost during the year
5.83
%
5.39
%
5.39
%
Trust Activities
Oneida Savings Bank provides trust and investment services, acts as executor or administrator
of estates and as trustee or custodian for various types of trusts. Trust services are offered
through Oneida Savings Bank's Trust Department. Services include fiduciary services for trusts and
estates, money management and custodial services. At December 31, 2009, Oneida Savings Bank
maintained 553 trust/fiduciary accounts, with total assets of $116.8 million under management as
compared to 555 trust/fiduciary accounts, with total assets of $105.8 million at December 31, 2008.
Management anticipates that in the future the Trust Department will become a more significant
component of Oneida Savings Bank's business.
Limited Purpose Commercial Bank—State Bank of Chittenango
The State Bank of Chittenango is a New York chartered limited purpose commercial bank
headquartered in Chittenango, New York. Oneida Savings Bank acquired State Bank of Chittenango in
2002 and retained the municipal banking operations of the bank in a limited purpose wholly owned
subsidiary. New York State prohibits a savings bank from soliciting and servicing public funds
(deposits of counties, cities, towns, school districts, etc.). The use of a limited purpose
commercial bank subsidiary has facilitated the expansion of municipal deposit banking services
throughout the service area of Oneida Savings Bank. At December 31, 2009, State Bank of
Chittenango held $110.6 million in assets, consisting primarily of U.S. Government obligations and
mortgage-backed securities. The investment securities maintained at State Bank of Chittenango are
used to collateralize $86.0 million in municipal deposits. All disclosures in this prospectus
relating to Oneida Financial Corp.'s investments and deposits include the investments and deposits
that are held by The State Bank of Chittenango.
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Table of Contents
Insurance Activities—Bailey & Haskell Associates, Inc.
On October 2, 2000, Oneida Savings Bank completed the acquisition of Bailey & Haskell
Associates, Inc., an insurance agency located in Central New York State. Bailey & Haskell
Associates is the wholly owned insurance agency subsidiary of Oneida Savings Bank. It operates
out of its headquarters in Oneida, New York, and six other offices in New York State and one office
in South Carolina. Bailey & Haskell Associates is a full-service insurance and financial services
firm with over 90 employees providing services to over 19,000 customers. The expansion into the
insurance and financial services business has enabled Oneida Savings Bank to evolve from a
traditional depository institution into a full-service financial services organization. Bailey &
Haskell Associates offers personal and commercial property insurance and other risk management
products and services. Bailey & Haskell Associates represents dozens of leading insurance
companies, including Travelers, CNA, Hartford, Progressive, Cincinnati, Utica National and many
others. Our opportunistic acquisition strategy has resulted in five subsequently acquired
insurance agencies in the six years following the acquisition of Bailey & Haskell Associates,
including Parsons, Cote & Company which was added during 2006. All of the acquired insurance
agencies were merged into Bailey & Haskell Associates. The combination of acquired agencies and
organic growth has resulted in total revenue of $9.7 million for the year ended December 31, 2009,
an increase of 14.3% or $1.2 million, from $8.5 million for the year ended December 31, 2008. All
disclosures in this prospectus relating to Oneida Financial Corp. are consolidated to include the
activities of Bailey & Haskell Associates.
Employee Benefit Consulting Activities—Benefit Consulting Group, Inc.
On June 28, 2006, Oneida Savings Bank completed the acquisition of Benefit Consulting Group
L.L.C., an employee benefits consulting and retirement plan administration firm. Benefit
Consulting Group, Inc. is the wholly owned subsidiary of Oneida Savings Bank headquartered in
Oneida, New York and operates from offices in North Syracuse, New York and satellite offices in
several branch offices of Oneida Savings Bank. Benefit Consulting Group currently serves more than
700 corporate and personal clients and offers employee benefit related services that are
complementary to those provided by Oneida Savings Bank and Bailey & Haskell Associates. Benefit
Consulting Group provides defined contribution and benefit plans, actuarial services, investment
management, financial planning, estate planning and human resource management services. Benefit
Consulting Group had total revenue for the year ended December 31, 2009 of $5.7 million, an
increase of 12.7% or $635,000 from $5.0 million for the year ended December 31, 2008. All
disclosures in this prospectus relating to Oneida Financial Corp. are consolidated to include the
activities of Benefit Consulting Group.
Risk Management Activities—Workplace Health Solutions, Inc.
Workplace Health Solutions, Inc. is the wholly owned risk management subsidiary of Oneida
Savings Bank and is headquartered in Oneida, New York and operates from offices in North Syracuse,
New York. Workplace Health Solutions was established in January 2008 as a risk management company
with services to help mitigate and prevent work related injuries. Specifically, Workplace Health
Solutions will work with employers to develop informed hiring programs, coordinate employee
training programs and consults with and advises employers relative to workers' compensation
coverage and incidents. In addition, this subsidiary develops a network of medical professionals
to evaluate injured workers and arrange for the proper treatment of and recovery from workplace
injuries all from a risk management perspective. Workplace Health Solutions was developed to
complement and refer the products and services offered by our other subsidiaries with an overall
philosophy of innovative risk management services. Workplace Health Solutions had total revenue of
$491,000 for the year ended December 31, 2009. All disclosures in this prospectus relating to
Oneida Financial Corp. are consolidated to include the activities of Workplace Health Solutions.
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Table of Contents
Properties
Oneida Savings Bank conducts its business through its main office located in Oneida, New
York, and 11 additional full service branch offices. The following table sets forth certain
information concerning our property and equipment at December 31, 2009. The aggregate net book
value of our premises and equipment was $21.2 million at December 31, 2009. Bailey & Haskell
Associates conducts its business through one owned and four leased facilities with lease
expirations not exceeding five years. Benefit Consulting Group conducts its business through one
leased facility. Workplace Health Solutions conducts its business through one leased facility.
Net Book Value
of Property and
Equipment at
Original Year
Date of Lease
December 31,
Location
Acquired
Expiration
2009
(In thousands)
Main Office:
182 Main Street
1889
N/A
$
2,380
Oneida, New York 13421
Branch Offices:
Camden Branch
1997
N/A
645
41 Harden
Boulevard
Camden, New York 13316
Canastota Branch
1999
N/A
702
104 S.
Peterboro St.
Canastota, New York 13032
Cazenovia Branch
1971
N/A
1,676
48 Albany
Street
Cazenovia, New York 13035
Hamilton Branch
1976
N/A
186
35 Broad Street
Hamilton, New York 13346
Convenience Center
1988
N/A
1,081
585 Main Street
Oneida, New York 13421
Chittenango Branch
2005
N/A
1,780
519 Genesee Street
Chittenango, New York 13037
Bridgeport Branch
2002
December 2012
14
8786 State Route 31
Bridgeport, New York 13030
Griffiss Park Branch
2005
N/A
6,151
160 Brooks Road
Rome, New York 13441
Vernon Branch
2007
N/A
1,125
5238 W. Seneca Street
Vernon, New York 13476
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Net Book Value
of Property and
Equipment at
Original Year
Date of Lease
December 31,
Location
Acquired
Expiration
2009
(In thousands)
Westmoreland Branch
2007
N/A
193
4675 State Route 233
Westmoreland, New York 13490
South Utica Branch
2007
N/A
1,069
2711 Genesee Street
Utica, New York 13505
Mortgage Center:
126 Lenox Avenue
1989
N/A
90
Oneida, New York 13421
Operations Center:
169 Main Street
2001
N/A
1,333
Oneida, New York 13421
Bailey & Haskell Associates, Inc.
2000
Various
468
Various locations
(Headquarters)
169 Main Street
Oneida, New York 13421
Bailey & Haskell Associates, Inc.
2006
N/A
2,137
Benefit Consulting Group Inc.
Workplace Health Solutions
5232 Witz Drive
North Syracuse, New York 13212
Bailey & Haskell Associates, Inc.
1999
May 2010
N/M
8246 Seneca Turnpike
Clinton, NY 13323
Bailey & Haskell Associates, Inc.
2009
Monthly
N/M
111 Clebourne Street
Suite 230A
Fort Mills, SC 29715
Other Bank Property:
102 S. Peterboro Street
2000
N/A
162
Canastota, New York 13032
6 Cambridge Avenue
2006
N/A
83
Morrisville, New York 13408
Legal Proceedings
Much of Oneida Savings Bank's market area is included in the 250,000-acre land claim of the
Oneida Indian Nation ("Oneidas"). The land claim area is held primarily by private persons. Over
16 years ago, the United States Supreme Court ruled in favor of the Oneidas in a lawsuit which
management believes was intended to encourage the State of New York to negotiate an equitable
settlement in a land dispute that has existed for 200 years.
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In June 1998, the United States Justice Department intervened in the action on behalf of the
Oneidas against Madison County and Oneida County in New York State. In September 1998, a United
States District Court removed a stay of litigation, having been in place since the late 1980's
pending settlement negotiations. In December 1998, both the Oneidas and the United States Justice
Department filed motions to amend the long outstanding claim against the State of New York. The
motions attempt to include in the claim, various named and 20,000 unnamed additional defendants,
who own real property in parts of Madison and Oneida Counties, thereby including the additional
defendants in the original suit. The U.S. District Court granted the motions to add as a defendant
the State of New York, but denied the motions to add the private landowners. Neither Oneida
Savings Bank nor Oneida Financial Corp. is a named defendant in the motion. The Court further
rejected as not being viable the remedies of ejectment and/or of monetary damages against private
landowners. In January 2001, amended complaints were served by the Oneidas and the United States,
which seek to eject the Counties of Madison and Oneida from lands owned by the counties, and the
Oneidas also seek a declaration that they have the right to possess all land within the land claim
area. In June 2001, the Court determined that certain land purchased by the Oneidas in 1997 and
1998 are exempt from real estate taxes, accepting the Oneidas argument that the acquired parcels
lie within the boundaries of the "reservation" established in 1794 by the Federal Government. The
State of New York, Counties of Madison and Oneida and the City of Sherrill appealed the Courts
decision with a court date in March 2002. In February 2002, a joint statement was issued by the
Oneidas, State of New York and the Counties of Madison and Oneida, indicating that the framework
for a settlement had been agreed upon, subject to the approval by the State legislature and the
Federal Government. The Oneidas of Wisconsin and the Stockbridge-Munsee Bank of Mohican Indians
have commenced separate actions in the United States District Court for the Northern District of
New York to dispute and interrupt any settlement pending. In July 2003, the United States Court of
Appeals affirmed the decision of the lower court against the City of Sherrill but appeals continue
relative to the decision against the Counties of Madison and Oneida. In January 2005 the United
States Supreme Court heard the appeal brought forward by the City of Sherrill against the Oneidas
arguing that the acquisition of real property by the Oneidas within the land claim area does not
return the property to sovereign status. Therefore, the City of Sherrill contends that the
property is subject to the payment of real property taxes or reverts to the ownership of the taxing
authority if assessed property taxes are not paid. The United States Supreme Court ruled in favor
of the City of Sherrill in June 2005. The Oneida Indian Nation is attempting to put all land
acquired to date in a federal land trust. All parties involved continue to pursue all legal
options available.
To date neither the original claim nor the motion to amend has had an adverse impact on the
local economy or real property values. In addition, title insurance companies continue to
underwrite policies in the land claim area with no change in premiums or underwriting standards.
Oneida Savings Bank requires title insurance on all residential real estate loans, excluding home
equity loans. Both the State of New York and the Oneidas have indicated in their respective
communications that individual landowners will not be adversely affected by the ongoing litigation.
Oneida Financial Corp. continues to monitor the situation.
We and our subsidiaries are subject to various legal actions arising in the normal course of
business. In the opinion of management, the resolution of these legal actions is not expected to
have a material adverse effect on our financial position or results of operations.
Subsidiary Activities
Oneida Financial Corp.'s sole direct subsidiary is Oneida Savings Bank. Oneida Savings Bank
has five wholly owned subsidiaries—Oneida Preferred Funding Corp., Bailey & Haskell Associates,
Inc., The State Bank of Chittenango, Workplace Health Solutions, Inc. and Benefit Consulting Group,
Inc. For financial reporting purposes, all of these companies are included in consolidated
financial statements of
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Oneida Financial Corp. The activities of the various subsidiaries are discussed elsewhere in
this prospectus.
Federal regulations require insured institutions to provide 30 days advance notice to the
Federal Deposit Insurance Corporation before establishing or acquiring a subsidiary or conducting a
new activity in a subsidiary. The insured institution must also provide the Federal Deposit
Insurance Corporation such information as may be required by applicable regulations and must
conduct the activity in accordance with the rules and orders of the Federal Deposit Insurance
Corporation. In addition to other enforcement and supervision powers, the Federal Deposit
Insurance Corporation may determine after notice and opportunity for a hearing that the
continuation of a savings bank's ownership of or relation to a subsidiary constitutes a serious
risk to the safety, soundness or stability of the savings bank, or is inconsistent with the
purposes of federal banking laws. Upon the making of such a determination, the Federal Deposit
Insurance Corporation may order the savings bank to divest the subsidiary or take other actions.
The Oneida Savings Bank Charitable Foundation
The Oneida Savings Bank Charitable Foundation, a nonprofit charitable foundation, was
established in December 1998 by members of Oneida Savings Bank. The Foundation provides funds to
eligible nonprofit organizations to help them carry out unique, innovative projects in specific
fields of interest. The Foundation's goal is to fund projects that will enhance the quality of life
in the communities served by Oneida Savings Bank.
At December 31, 2009, the Foundation had approximately $1.4 million in assets, consisting
primarily of 153,464 shares of our common stock, and annually distributes 5% percent of its net
asset value in grants to the local community. The grants and gifts provided by the Foundation are
generally for charitable causes, and to enhance the quality of life and housing in Oneida Savings
Bank's markets. Oneida Savings Bank indirectly benefits from the favorable publicity and elevated
public standing generated through the Foundation's gifts.
Personnel
As of December 31, 2009, we had 309 full-time employees and 15 part-time employees. Our
employees are not represented by any collective bargaining group. Management believes that we have
good relations with our employees.
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SUPERVISION AND REGULATION
General
Oneida Savings Bank is a New York chartered savings bank and our deposit accounts are insured
up to applicable limits by the Federal Deposit Insurance Corporation under the Deposit Insurance
Fund. Oneida Savings Bank is subject to extensive regulation by the New York State Banking
Department (the "Department") as its chartering agency, and by the Federal Deposit Insurance
Corporation, as the insurer of its deposit accounts. Oneida Savings Bank must file reports with
the Department and the Federal Deposit Insurance Corporation concerning its activities and
financial condition in addition to obtaining regulatory approvals prior to entering into certain
transactions, including acquisitions of other financial institutions. Oneida Savings Bank is
examined periodically by the Department and the Federal Deposit Insurance Corporation to test
Oneida Savings Bank's compliance with various laws and regulations. This regulation and
supervision, as well as federal and state law, establishes a comprehensive framework of activities
in which Oneida Savings Bank may engage and is intended primarily for the protection of the Federal
Deposit Insurance Corporation insurance fund and depositors. The regulatory structure also gives
the regulatory authorities extensive discretion in connection with their supervisory and
enforcement activities and with their examination policies, including policies with respect to the
classification of assets and the establishment of adequate loan loss reserves for regulatory
purposes.
Any change in these laws or regulations, whether by the Department or the Federal Deposit
Insurance Corporation, could have a material adverse impact on Oneida Financial Corp. and Oneida
Savings Bank and their operations.
As a savings and loan holding company following the conversion, Oneida Financial-New will be
required to comply with the rules and regulations of the Office of Thrift Supervision, and will be
required to file certain reports with and will be subject to examination by the Office of Thrift
Supervision. Oneida Financial-New also will be subject to the rules and regulations of the
Securities and Exchange Commission under the federal securities laws.
Set forth below is a brief description of certain regulatory requirements that are or will be
applicable to Oneida Financial-New and Oneida Savings Bank. The description below is limited to
certain material aspects of the statutes and regulations addressed, and is not intended to be a
complete description of such statutes and regulations and their effects on Oneida Financial-New and
Oneida Savings Bank.
Proposed Federal Legislation
Legislation has been introduced in the United States Senate and House of Representatives that
would implement sweeping changes to the current bank regulatory structure described in this
section. The House Bill (H.R. 4173) would eliminate one of our federal regulators, the Office of
Thrift Supervision, by merging the Office of Thrift Supervision into the Comptroller of the
Currency (the primary federal regulator for national banks). The proposed legislation would
authorize the Comptroller of the Currency to charter mutual and stock savings banks and mutual
holding companies, which would be under the supervision of the Division of Thrift Supervision of
the Comptroller of the Currency. The proposed legislation would also establish a Financial
Services Oversight Council and grant the Board of Governors of the Federal Reserve System exclusive
authority to regulate all bank and thrift holding companies. If the proposed legislation is
enacted, Oneida Financial-New would become a holding company subject to the regulation and
supervision of the Federal Reserve Board as opposed to the Office of Thrift Supervision. The
Federal Reserve Board's holding company regulations differ in a number of areas from those of the
Office of Thrift Supervision including holding company capital requirements.
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New York Bank Regulation
Oneida Savings Bank derives its lending, investment, branching and other authority primarily
from the applicable provisions of New York State Banking Law and the regulations of the Department,
as limited by federal laws and regulations. Under these laws and regulations, savings banks,
including Oneida Savings Bank, may invest in real estate mortgages, consumer and commercial loans,
certain types of debt securities, including certain corporate debt securities and obligations of
federal, state and local governments and agencies, certain types of corporate equity securities and
certain other assets. Under the statutory authority for investing in equity securities, a savings
bank may invest up to 7.5% of its assets in corporate stock, with an overall limit of 5% of its
assets invested in common stock. Investment in the stock of a single corporation is limited to the
lesser of 2% of the outstanding stock of such corporation or 1% of the savings bank's assets,
except as set forth below. Such equity securities must meet certain earnings ratios and other
tests of financial performance. A savings bank's lending powers are not subject to percentage of
assets limitations, although there are limits applicable to single borrowers. A savings bank may
also, pursuant to the "leeway" power, make investments not otherwise permitted under the New York
State Banking Law. This power permits investments in otherwise impermissible investments of up to
1% of assets in any single investment, subject to certain restrictions and to an aggregate limit
for all such investments of up to 5% of assets. Additionally, in lieu of investing in such
securities in accordance with and reliance upon the specific investment authority set forth in the
New York State Banking Law, savings banks are authorized to elect to invest under a "prudent
person" standard in a wider range of investment securities as compared to the types of investments
permissible under such specific investment authority. However, in the event a savings bank elects
to utilize the "prudent person" standard, it will be unable to avail itself of the other provisions
of the New York State Banking Law and regulations which set forth specific investment authority.
Oneida Savings Bank has not elected to conduct its investment activities under the "prudent person"
standard. A savings bank may also exercise trust powers upon approval of the Department. See
"—Activities and Investments of Insured Stated-Chartered Banks Acting as Principal."
New York State chartered savings banks may also invest in subsidiaries under their service
corporation investment authority. A savings bank may use this power to invest in corporations that
engage in various activities authorized for savings banks, plus any additional activities that may
be authorized by the Banking Board. Investment by a savings bank in the stock, capital notes and
debentures of its service corporations is limited to 3% of the bank's assets, and such investments,
together with the bank's loans to its service corporations, may not exceed 10% of the savings
bank's assets. Furthermore, New York banking regulations impose requirements on loans which a bank
may make to its executive officers and directors and to certain corporations or partnerships in
which such persons have equity interests. These requirements include that (i) certain loans must
be approved in advance by a majority of the entire board of directors and the interested party must
abstain from participating directly or indirectly in voting on such loan, (ii) the loan must be on
terms that are not more favorable than those offered to unaffiliated third parties, and (iii) the
loan must not involve more than a normal risk of repayment or present other unfavorable features.
Under the New York State Banking Law, the Superintendent may issue an order to a New York
State chartered banking institution to appear and explain an apparent violation of law, to
discontinue unauthorized or unsafe practices and to keep prescribed books and accounts. Upon a
finding by the Department that any director, trustee or officer of any banking organization has
violated any law, or has continued unauthorized or unsafe practices in conducting the business of
the banking organization after having been notified by the Superintendent to discontinue such
practices, such director, trustee or officer may be removed from office after notice and an
opportunity to be heard. Oneida Savings Bank does not know of any past or current practice,
condition or violation that may lead to any proceeding by the
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Superintendent or the Department against Oneida Savings Bank or any of its directors, trustees or
officers.
Insurance of Deposit Accounts
Oneida Savings Bank is a member of the Deposit Insurance Fund, which is administered by the
Federal Deposit Insurance Corporation. Deposit accounts at Oneida Savings Bank are insured by the
Federal Deposit Insurance Corporation, generally up to a maximum of $100,000 for each separately
insured depositor and up to a maximum of $250,000 for self-directed retirement accounts. However,
the Emergency Economic Stabilization Act of 2008 increased the deposit insurance available on all
deposit accounts to $250,000, effective until December 31, 2013. In addition, certain
noninterest-bearing transaction accounts maintained with financial institutions participating in
the Federal Deposit Insurance Corporation's Temporary Liquidity Guarantee Program are fully insured
regardless of the dollar amount until June 30, 2010. Oneida Savings Bank has opted to participate
in the Federal Deposit Insurance Corporation's Temporary Liquidity Guarantee Program.
The Federal Deposit Insurance Corporation imposes an assessment against institutions for
deposit insurance, which is based on the risk category of the institution. Under the final
risk-based assessment rule which was issued on February27, 2009, the Federal Deposit Insurance
Corporation first establishes an institution's initial base assessment rate for determining deposit
insurance premiums. This initial base assessment rate ranges, depending on the risk category of
the institution, from 12 to 45 basis points. The Federal Deposit Insurance Corporation then
adjusts the initial base assessment (higher or lower) to obtain the total base assessment rate.
The adjustments to the initial base assessment rate are based upon an institution's levels of
unsecured debt, secured liabilities, and brokered deposits. The total base assessment rate ranges
from 7 to 77.5 basis points of the institution's deposits. Additionally, on May 22, 2009, the
Federal Deposit Insurance Corporation issued a final rule that imposed a special 5 basis points
assessment on each FDIC-insured depository institution's assets, minus its Tier 1 capital on June
30, 2009, which was collected on September 30, 2009. The special assessment was capped at 10 basis
points of an institution's domestic deposits. Future special assessments could also be assessed.
The Bank's Federal Deposit Insurance Corporation premium assessment for the second quarter of 2009
and the year ended December 31, 2009 increased by approximately $631,000 and $970,000,
respectively, including the special assessment.
The Federal Deposit Insurance Corporation has adopted a final rule pursuant to which all
insured depository institutions were required to prepay their estimated assessments for the fourth
quarter of 2009, and for all of 2010, 2011 and 2012. Under the rule, this pre-payment was made on
December 30, 2009. The assessment rate for the fourth quarter of 2009 and for 2010 is based on
each institution's total base assessment rate for the third quarter of 2009, modified to assume
that the assessment rate in effect on September 30, 2009 had been in effect for the entire third
quarter, and the assessment rate for 2011 and 2012 will be equal to the modified third quarter
assessment rate plus an additional 3 basis points. In addition, each institution's base assessment
rate for each period will be calculated using its third quarter assessment base, adjusted quarterly
for an estimated 5% annual growth rate in the assessment base through the end of 2012. Our
prepayment amount was approximately $2.4 million.
Insurance of deposits may be terminated by the Federal Deposit Insurance Corporation upon a
finding that an institution has engaged in unsafe or unsound practices, is in an unsafe or unsound
condition to continue operations or has violated any applicable law, regulation, rule, order or
condition imposed by the Federal Deposit Insurance Corporation. We do not currently know of any
practice, condition or violation that may lead to termination of our deposit insurance.
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In addition to the Federal Deposit Insurance Corporation assessments, the Financing
Corporation ("FICO") is authorized to impose and collect, with the approval of the Federal Deposit
Insurance Corporation, assessments for anticipated payments, issuance costs and custodial fees on
bonds issued by the FICO in the 1980s to recapitalize the former Federal Savings and Loan Insurance
Corporation. The bonds issued by the FICO are due to mature in 2017 through 2019. For the quarter
ended December 31, 2009, the annualized FICO assessment was equal to 1.04 basis points for each
$100 in domestic deposits.
Temporary Liquidity Guarantee Program
.
On October 14, 2008, the Federal Deposit Insurance
Corporation announced a new program — the Temporary Liquidity Guarantee Program, which guarantees
newly issued senior unsecured debt of a participating organization, up to certain limits
established for each institution, issued between October 14, 2008 and June 30, 2009. The Federal
Deposit Insurance Corporation will pay the unpaid principal and interest on Federal Deposit
Insurance Corporation-guaranteed debt instruments upon the uncured failure of the participating
entity to make timely payments of principal or interest in accordance with the terms of the
instrument. The guarantee will remain in effect until June 30, 2012. In return for the Federal
Deposit Insurance Corporation's guarantee, participating institutions will pay the Federal Deposit
Insurance Corporation a fee based on the amount and maturity of the debt. We opted not to
participate in this part of the Temporary Liquidity Guarantee Program.
The other part of the Temporary Liquidity Guarantee Program provides full federal deposit
insurance coverage for noninterest-bearing transaction deposit accounts, regardless of dollar
amount, until December 31, 2009. An annualized 10 basis point assessment on balances in
noninterest-bearing transaction accounts that exceed the existing deposit insurance limit of
$250,000 will be assessed on a quarterly basis to insured depository institutions that have not
opted out of this component of the Temporary Liquidity Guarantee Program. We opted to participate
in this component of the Temporary Liquidity Guarantee Program. On August 26, 2009, the Federal
Deposit Insurance Corporation extended the program until June 30, 2010. Institutions had until
November 2, 2009 to decide whether to opt out of the extension which became effective on January 1,
2010. An annualized assessment rate between 15 and 25 basis points on balances in
noninterest-bearing transaction accounts that exceed the existing deposit insurance limit of
$250,000 is assessed depending on the institution's risk category. We opted into the extension.
U.S. Treasury's Troubled Asset Relief Program Capital Purchase Program
.
The Emergency
Economic Stabilization Act of 2008, which was enacted on October 3, 2008, provides the U.S.
Secretary of the Treasury with broad authority to implement certain actions to help restore
stability and liquidity to U.S. financial markets. One of the programs resulting from the
legislation is the Troubled Asset Relief Program Capital Purchase Program ("CPP"), which provides
direct equity investment by the U.S. Treasury Department in perpetual preferred stock of qualified
financial institutions. The program is voluntary and requires an institution to comply with a
number of restrictions and provisions, including limits on executive compensation, stock
redemptions and declaration of dividends. The CPP provides for a minimum investment of one percent
of total risk-weighted assets and a maximum investment equal to the lesser of three percent of
total risk-weighted assets or $25 billion. Participation in the program is not automatic and is
subject to approval by the U.S. Treasury Department. We opted not to participate in the CPP.
Regulatory Capital Requirements
The FDIC has adopted risk-based capital guidelines that are applicable to Oneida Savings Bank.
The guidelines establish a systematic analytical framework that makes regulatory capital
requirements more sensitive to differences in risk profiles among banking organizations. Oneida
Savings Bank is required to maintain certain levels of regulatory capital in relation to regulatory
risk-weighted assets. The
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ratio of such regulatory capital to regulatory risk-weighted assets is referred to as Oneida
Savings Bank's "risk-based capital ratio." Risk-based capital ratios are determined by allocating
assets and specified off-balance sheet items to four risk-weighted categories ranging from 0% to
100%, with higher levels of capital being required for the categories perceived as representing
greater risk.
These guidelines divide a savings bank's capital into two tiers. The first tier ("Tier I")
includes common equity, retained earnings, certain non-cumulative perpetual preferred stock
(excluding auction rate issues) and minority interests in equity accounts of consolidated
subsidiaries, less goodwill and other intangible assets (except mortgage servicing rights and
purchased credit card relationships subject to certain limitations). Supplementary ("Tier II")
capital includes, among other items, cumulative perpetual and long-term limited-life preferred
stock, mandatory convertible securities, certain hybrid capital instruments, term subordinated debt
and the allowance for loan and lease losses, subject to certain limitations, less required
deductions. Savings banks are required to maintain a total risk-based capital ratio of at least 8%,
of which at least 4% must be Tier I capital.
In addition, the FDIC has established regulations prescribing a minimum Tier I leverage ratio
(Tier I capital to adjusted total assets as specified in the regulations). These regulations
provide for a minimum Tier I leverage ratio of 3% for banks that meet certain specified criteria,
including that they have the highest examination rating and are not experiencing or anticipating
significant growth. All other banks are required to maintain a Tier I leverage ratio of 3% plus an
additional cushion of at least 100 to 200 basis points. The FDIC may, however, set higher leverage
and risk-based capital requirements on individual institutions when particular circumstances
warrant. Savings banks experiencing or anticipating significant growth are expected to maintain
capital ratios, including tangible capital positions, well above the minimum levels.
Limitations on Dividends and Other Capital Distributions
The FDIC has the authority to use its enforcement powers to prohibit a savings bank from
paying dividends if, in its opinion, the payment of dividends would constitute an unsafe or unsound
practice. Federal law also prohibits the payment of dividends by a bank that will result in the
bank failing to meet its applicable capital requirements on a pro forma basis. New York law also
restricts Oneida Savings Bank from declaring a dividend which would reduce its capital below (i)
the amount required to be maintained under state law and regulation or (ii) the amount of Oneida
Savings Bank's liquidation account established in connection with the Reorganization.
Prompt Corrective Action
The federal banking agencies have promulgated regulations to implement the system of prompt
corrective action required by federal law. Under the regulations, a bank shall be deemed to be (i)
"well capitalized" if it has total risk-based capital of 10.0% or more, has a Tier I risk-based
capital ratio of 6.0% or more, has a Tier I leverage capital ratio of 5.0% or more and is not
subject to any written capital order or directive; (ii) "adequately capitalized" if it has a total
risk-based capital ratio of 8.0% or more, a Tier I risk-based capital ratio of 4.0% or more and a
Tier I leverage capital ratio of 4.0% or more (3.0% under certain circumstances) and does not meet
the definition of "well capitalized"; (iii) "undercapitalized" if it has a total risk-based capital
ratio that is less than 8.0%, a Tier I risk-based capital ratio that is less than 4.0% or a Tier I
leverage capital ratio that is less than 4.0% (3.0% under certain circumstances); (iv)
"significantly undercapitalized" if it has a total risk-based capital ratio that is less than 6.0%,
a Tier I risk-based capital ratio that is less than 3.0% or a Tier I leverage capital ratio that is
less than 3.0%; and (v) "critically undercapitalized" if it has a ratio of tangible equity to total
assets that is equal to or less than 2.0%. Federal law and regulations also specify circumstances
under which a federal banking agency may reclassify a well capitalized institution as adequately
capitalized and may require an adequately
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capitalized institution to comply with supervisory actions as if it were in the next lower category
(except that the FDIC may not reclassify a significantly undercapitalized institution as critically
undercapitalized).
Based on the foregoing, Oneida Savings Bank is currently classified as a well capitalized
savings institution.
Activities and Investments of Insured State-Chartered Banks Acting as Principal
Federal law generally limits the activities and equity investments of FDIC-insured
state-chartered banks to those that are permissible for national banks, notwithstanding state laws.
Under federal regulations dealing with equity investments, an insured state bank generally may
not, directly or indirectly, acquire or retain any equity investment of a type, or in an amount,
that is not permissible for a national bank. An insured state bank is not prohibited from, among
other things, (i) acquiring or retaining a majority interest in a subsidiary, the activities of
which are limited to those permissible for a subsidiary of a national bank; (ii) investing as a
limited partner in a partnership the sole purpose of which is the direct or indirect investment in
the acquisition, rehabilitation, or new construction of a qualified housing project, provided that
such limited partnership investments may not exceed 2% of the bank's total assets; (iii) acquiring
up to 10% of the voting stock of a company that solely provides or reinsures directors', trustees',
and officers' liability insurance coverage or bankers' blanket bond group insurance coverage for
insured depository institutions; and (iv) acquiring or retaining the voting shares of a depository
institution if certain requirements are met.
Federal law and FDIC regulations permit certain exceptions to the foregoing limitation. For
example, certain state-chartered banks, such as Oneida Savings Bank, may continue to invest in
common or preferred stock listed on a National Securities Exchange, and in the shares of an
investment company registered under the Investment Company Act of 1940, as amended. As of December
31, 2009, Oneida Savings Bank had $2.7 million of securities pursuant to this exception. As a
savings bank, Oneida Savings Bank may also continue to sell savings bank life insurance.
Transactions With Affiliates
Under current federal law, transactions between depository institutions and their affiliates
are governed by Sections 23A and 23B of the Federal Reserve Act and its implementing regulations.
An affiliate of a savings bank is any company or entity that controls, is controlled by, or is
under common control with the savings bank, other than a subsidiary of the savings bank. In a
holding company context, at a minimum, the parent holding company of a savings bank and any
companies which are controlled by such parent holding company are affiliates of the savings bank.
Generally, Section 23A limits the extent to which the savings bank or its subsidiaries may engage
in "covered transactions" with any one affiliate to an amount equal to 10% of such savings bank's
capital stock and surplus and contains an aggregate limit on all such transactions with all
affiliates to an amount equal to 20% of such capital stock and surplus. The term "covered
transaction" includes the making of loans or other extensions of credit to an affiliate; the
purchase of assets from an affiliate, the purchase of, or an investment in, the securities of an
affiliate; the acceptance of securities of an affiliate as collateral for a loan or extension of
credit to any person; or issuance of a guarantee, acceptance, or letter of credit on behalf of an
affiliate. Section 23A also establishes specific collateral requirements for loans or extensions of
credit to, or guarantees, acceptances on letters of credit issued on behalf of an affiliate.
Section 23B requires that covered transactions, and a broad list of other specified transactions,
be on terms substantially the same, or no less favorable, to the savings bank or its subsidiary as
similar transactions with nonaffiliates.
Further, the Federal Reserve Act and its implementing regulation restricts a savings bank with
respect to loans to directors, executive officers, principal stockholders, and their related
interests. Under
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these regulations, loans to directors, executive officers and stockholders who control, directly or
indirectly, 10% or more of voting securities of a savings bank and certain related interests of any
of the foregoing, may not exceed, together with all other outstanding loans to such persons and
affiliated entities, the savings bank's total capital and surplus. In addition, federal law also
prohibits loans above amounts prescribed by the appropriate federal banking agency to directors,
executive officers, and stockholders who control 10% or more of voting securities of a stock
savings bank, and their respective related interests, unless such loan is approved in advance by a
majority of the disinterested directors on the board of directors of the savings bank. Any
"interested" director may not participate in the voting. The loan amount (which includes all other
outstanding loans to such person) as to which such prior board of director approval is required, is
the greater of $25,000 or 5% of capital and surplus or any loans over $500,000. Further, loans to
directors, executive officers and principal stockholders must generally be made on terms
substantially the same as offered in comparable transactions to other persons. Additional
limitations are also imposed on loans to executive officers.
Federal Community Reinvestment Regulation
Under the Community Reinvestment Act, as amended (the "CRA"), and its implementing
regulations, a savings bank has a continuing and affirmative obligation, consistent with its safe
and sound operation, to help meet the credit needs of its entire community, including low and
moderate income neighborhoods. The CRA does not establish specific lending requirements or
programs for financial institutions nor does it limit an institution's discretion to develop the
types of products and services that it believes are best suited to its particular community,
consistent with the CRA. The CRA requires the FDIC, in connection with its examination of a
savings institution, to assess the institution's record of meeting the credit needs of its
community and to take such record into account in its evaluation of certain applications by such
institution. The CRA requires the FDIC to provide a written evaluation of an institution's CRA
performance utilizing a four-tiered descriptive rating system. Oneida Savings Bank's latest CRA
rating was "satisfactory."
New York State Community Reinvestment Regulation
Oneida Savings Bank is also subject to provisions of the New York State Banking Law which
imposes continuing and affirmative obligations upon banking institutions organized in New York
State to serve the credit needs of its local community ("NYCRA") which are substantially similar to
those imposed by the CRA. Pursuant to the NYCRA, a bank must file an annual NYCRA report and
copies of all federal CRA reports with the Department. The NYCRA requires the Department to make a
biennial written assessment of a bank's compliance with the NYCRA, utilizing a four-tiered rating
system and make such assessment available to the public. The NYCRA also requires the
Superintendent to consider a bank's NYCRA rating when reviewing a bank's application to engage in
certain transactions, including mergers, asset purchases and the establishment of branch offices or
automated teller machines, and provides that such assessment may serve as a basis for the denial of
any such application. Oneida Savings Bank's NYCRA rating as of its latest examination was
"outstanding."
Federal Home Loan Bank System
Oneida Savings Bank is a member of the FHLB of New York, which is one of 12 regional FHLBs,
that administers the home financing credit function of savings institutions. Each FHLB serves as a
reserve or central bank for its members within its assigned region. It is funded primarily from
proceeds derived from the sale of consolidated obligations of the FHLB System. It makes loans to
members (
i.e.
, advances) in accordance with policies and procedures established by the board of
directors of the FHLB. These policies and procedures are subject to the regulation and oversight
of the Federal Housing Finance Board. All advances from the FHLB are required to be fully secured
by sufficient collateral as
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determined by the FHLB. In addition, all long-term advances are required to provide funds for
residential home financing.
As a member, Oneida Savings Bank is required to purchase and maintain stock in the FHLB of New
York. As of December 31, 2009, Oneida Savings Bank had $2.7 million of FHLB stock. The dividend
yield from FHLB stock was 5.6% at December 31, 2009. No assurance can be given that the FHLB will
pay any dividends in the future.
Under federal law, the FHLBs are required to provide funds for the resolution of troubled
savings institutions and to contribute to low and moderately priced housing programs through direct
loans or interest subsidies on advances targeted for community investment and low- and
moderate-income housing projects. These contributions have affected adversely the level of FHLB
dividends paid and could continue to do so in the future. These contributions could also have an
adverse effect on the value of FHLB stock in the future. A reduction in value of Oneida Savings
Bank's FHLB stock may result in a corresponding reduction in Oneida Savings Bank's capital.
Federal Holding Company Regulation
General
.
Federal law allows a state savings bank, such as Oneida Savings Bank, that qualifies
as a "Qualified Thrift Lender," as discussed below, to elect to be treated as a savings association
for purposes of the savings and loan holding company provisions of the Home Owners' Loan Act of
1933, as amended. Such election results in its holding company being regulated as a savings and
loan holding company by the Office of Thrift Supervision rather than as a bank holding company by
the Federal Reserve Board. In 2001, Oneida Financial Corp. and Oneida Financial, MHC made such
election by converting from a Delaware corporation and a New York mutual holding company to a
Federal corporation and Federal mutual holding company, respectively. In connection with the
conversion, Oneida Financial-New is making a similar election. Therefore, upon completion of the
conversion, Oneida Financial-New will be a savings and loan holding company within the meaning of
the Home Owners' Loan Act. As such, Oneida Financial-New will be registered with the Office of
Thrift Supervision and will be subject to Office of Thrift Supervision regulations, examinations,
supervision and reporting requirements. In addition, the Office of Thrift Supervision will have
enforcement authority over Oneida Financial-New and any non-savings institution subsidiary of
Oneida Financial-New. Among other things, this authority permits the Office of Thrift Supervision
to restrict or prohibit activities that are determined to be a serious risk to the subsidiary
savings institution.
Permissible Activities.
Under present law, the business activities of Oneida Financial-New
will be generally limited to those activities permissible for financial holding companies under
Section 4(k) of the Bank Holding Company Act of 1956, as amended, or for multiple savings and loan
holding companies. A financial holding company may engage in activities that are financial in
nature, including underwriting equity securities and insurance as well as activities that are
incidental to financial activities or complementary to a financial activity. A multiple savings
and loan holding company is generally limited to activities permissible for bank holding companies
under Section 4(c)(8) of the Bank Holding Company Act, subject to the prior approval of the Office
of Thrift Supervision, and certain additional activities authorized by Office of Thrift Supervision
regulations.
Federal law prohibits a savings and loan holding company, including Oneida Financial-New,
directly or indirectly, or through one or more subsidiaries, from acquiring more than 5% of another
savings institution or holding company thereof, without prior written approval of the Office of
Thrift Supervision. It also prohibits the acquisition or retention of, with certain exceptions,
more than 5% of a non-subsidiary company engaged in activities that are not closely related to
banking or financial in nature, or acquiring or retaining control of an institution that is not
federally insured. In evaluating applications
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by holding companies to acquire savings institutions, the Office of Thrift Supervision must
consider the financial and managerial resources, future prospects of the company and institution
involved, the effect of the acquisition on the risk to the federal deposit insurance fund, the
convenience and needs of the community and competitive factors.
The Office of Thrift Supervision is prohibited from approving any acquisition that would
result in a multiple savings and loan holding company controlling savings institutions in more than
one state, subject to two exceptions:
(i)
the approval of interstate supervisory acquisitions by savings and loan holding
companies; and
(ii)
the acquisition of a savings institution in another state if the laws of the
state of the target savings institution specifically permit such acquisition.
The states vary in the extent to which they permit interstate savings and loan holding company
acquisitions.
Qualified Thrift Lender Test
.
To be regulated as a savings and loan holding company by the
Office of Thrift Supervision (rather than as a bank holding company by the Federal Reserve Board),
Oneida Savings Bank must qualify as a Qualified Thrift Lender. To qualify as a Qualified Thrift
Lender, Oneida Savings Bank must be a "domestic building and loan association," as defined in the
Internal Revenue Code, or comply with the Qualified Thrift Lender test under Office of Thrift
Supervision regulations. Under the Qualified Thrift Lender test, a savings institution is required
to maintain at least 65% of its "portfolio assets" (total assets less: (1) specified liquid assets
up to 20% of total assets; (2) intangibles, including goodwill; and (3) the value of property used
to conduct business) in certain "qualified thrift investments" (primarily residential mortgages and
related investments, including certain mortgage-backed and related securities) in at least nine
months out of each 12-month period. As of December 31, 2009, Oneida Savings Bank met the Qualified
Thrift Lender test.
New York State Bank Holding Company Regulation
In addition to the federal regulation, a holding company controlling a state chartered savings
bank organized or doing business in New York State also may be subject to regulation under the New
York State Banking Law. The term "bank holding company," for the purposes of the New York State
Banking Law, is defined generally to include any person, company or trust that directly or
indirectly either controls the election of a majority of the directors or owns, controls or holds
with power to vote more than 10% of the voting stock of a bank holding company or, if the company
is a banking institution, another banking institution, or 10% or more of the voting stock of each
of two or more banking institutions. In general, a bank holding company controlling, directly or
indirectly, only one banking institution will not be deemed to be a bank holding company for the
purposes of the New York State Banking Law. Under New York State Banking Law, the prior approval
of the Banking Board is required before: (1) any action is taken that causes any company to become
a bank holding company; (2) any action is taken that causes any banking institution to become or be
merged or consolidated with a subsidiary of a bank holding company; (3) any bank holding company
acquires direct or indirect ownership or control of more than 5% of the voting stock of a banking
institution; (4) any bank holding company or subsidiary thereof acquires all or substantially all
of the assets of a banking institution; or (5) any action is taken that causes any bank holding
company to merge or consolidate with another bank holding company. Additionally, certain
restrictions apply to New York State bank holding companies regarding the acquisition of banking
institutions, which have been chartered five years or less and are located in smaller communities.
Officers, directors and employees of New York State bank holding companies are subject to
limitations
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regarding their affiliation with securities underwriting or brokerage firms and other bank
holding companies and limitations regarding loans obtained from its subsidiaries.
Bank holding companies that wish to engage in expanded activities but do not wish to become
financial holding companies may elect to establish "financial subsidiaries," which are subsidiaries
of national banks with expanded powers. The Act permits financial subsidiaries to engage in the
same types of activities permissible for nonbank subsidiaries of financial holding companies, with
the exception of merchant banking, insurance underwriting and real estate investment and
development. Merchant banking may be permitted after a five-year waiting period under certain
circumstances.
Federal Securities Laws
We have filed with the Securities and Exchange Commission a registration statement under the
Securities Act of 1933 for the registration of the shares of common stock to be issued pursuant to
the stock offering and in connection with the conversion. Upon completion of the stock offering,
our common stock will be registered with the Securities and Exchange Commission under the
Securities Exchange Act of 1934. We will be subject to the information, proxy solicitation,
insider trading restrictions and other requirements under the Securities Exchange Act of 1934.
The registration under the Securities Act of 1933 of shares of common stock issued in Oneida
Financial-New's public offering does not cover the resale of those shares. Shares of common stock
purchased by persons who are not affiliates of Oneida Financial-New may be resold without
registration. Shares purchased by an affiliate of Oneida Financial-New will be subject to the
resale restrictions of Rule 144 under the Securities Act of 1933. If Oneida Financial-New meets
the current public information requirements of Rule 144 under the Securities Act of 1933, each
affiliate of Oneida Financial-New that complies with the other conditions of Rule 144, including
those that require the affiliate's sale to be aggregated with those of other persons, would be able
to sell in the public market, without registration, a number of shares not to exceed, in any
three-month period, the greater of 1% of the outstanding shares of Oneida Financial-New, or the
average weekly volume of trading in the shares during the preceding four calendar weeks. In the
future, Oneida Financial-New may permit affiliates to have their shares registered for sale under
the Securities Act of 1933.
The USA PATRIOT Act
The USA PATRIOT Act gives the federal government powers to address terrorist threats through
enhanced domestic security measures, expanded surveillance powers, increased information sharing
and broadened anti-money laundering requirements. Title III of the USA PATRIOT Act amended the
Bank Secrecy Act to encourage information sharing among bank regulatory agencies and law
enforcement bodies. Moreover, certain provisions of Title III impose affirmative obligations on a
broad range of financial institutions, including banks, savings associations, brokers, dealers,
credit unions, money transfer agents and parties registered under the Commodity Exchange Act.
Sarbanes-Oxley Act of 2002
The Sarbanes-Oxley Act of 2002 addresses, among other issues, corporate governance, auditing
and accounting, executive compensation, and enhanced and timely disclosure of corporate
information. As directed by the Sarbanes-Oxley Act, our Chief Executive Officer and Chief Financial
Officer will be required to certify that our quarterly and annual reports do not contain any untrue
statement of a material fact. The rules adopted by the Securities and Exchange Commission under the
Sarbanes-Oxley Act have several requirements, including having these officers certify that: they
are responsible for establishing,
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maintaining and regularly evaluating the effectiveness of our internal control over financial
reporting; they have made certain disclosures to our auditors and the audit committee of the Board
of Directors about our internal control over financial reporting; and they have included
information in our quarterly and annual reports about their evaluation and whether there have been
changes in our internal control over financial reporting or in other factors that could materially
affect internal control over financial reporting.
Federal Reserve System
The Federal Reserve Board requires all depository institutions to maintain noninterest-bearing
reserves at specified levels against their transaction accounts (primarily checking, NOW and Super
NOW checking accounts). At December 31, 2009, Oneida Savings Bank was in compliance with these
reserve requirements.
TAXATION
Federal Taxation
General
.
Oneida Financial Corp. and Oneida Savings Bank are, and Oneida Financial-New will
be, subject to federal income taxation in the same general manner as other corporations, with some
exceptions discussed below. The following discussion of federal taxation is intended only to
summarize certain pertinent federal income tax matters and is not a comprehensive description of
the tax rules applicable to Oneida Financial Corp., Oneida Financial-New or Oneida Savings Bank.
Oneida Savings Bank's most recent IRS audit was relative to Oneida Savings Bank's 1993, 1994
and 1995 federal and state income tax returns.
Method of Accounting
.
For federal income tax purposes, Oneida Financial Corp. currently
reports its income and expenses on the accrual method of accounting and uses a tax year ending
December 31 for filing its federal and state income tax returns.
Alternative Minimum Tax
.
The Internal Revenue Code of 1986, as amended (the "Code"), imposes
an alternative minimum tax ("AMT") at a rate of 20% on a base of regular taxable income plus
certain tax preferences ("alternative minimum taxable income" or "AMTI"). The AMT is payable to
the extent such AMTI is in excess of an exemption amount. Net operating losses can offset no more
than 90% of AMTI. Certain payments of AMT may be used as credits against regular tax liabilities
in future years. Oneida Financial Corp. and Oneida Savings Bank are subject to the AMT, however,
neither corporation has any minimum tax credit carryforwards at December 31, 2009.
Net Operating Loss Carryovers.
Generally, a financial institution may carry back net
operating losses to the preceding two taxable years and forward to the succeeding 20 taxable years.
However, as a result of recent legislation, subject to certain limitations, the carryback period
for net operating losses incurred in 2008 or 2009 (but not both years) has been expanded to five
years. At December 31, 2009, Oneida Financial Corp. and Oneida Savings Bank had no net operating
loss carryforward for federal income tax purposes.
Corporate Dividends-Received Deduction
.
Oneida Financial Corp. (and Oneida Financial-New) may
exclude from its federal taxable income 100% of dividends received from Oneida Savings Bank as a
wholly owned subsidiary.
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State Taxation
Oneida Financial Corp. and Oneida Savings Bank report income on a combined calendar year basis
to New York State. New York State Franchise Tax on corporations is imposed in an amount equal to
the greater of (a) 7.1% of "entire net income" allocable to New York State, (b) 3% of "alternative
entire net income" allocable to New York State, (c) 0.01% of the average value of assets allocable
to New York State, or (d) nominal minimum tax. Entire net income is based on federal taxable
income, subject to certain modifications. Alternative entire net income is equal to entire net
income without certain modifications. After the common stock offering, Oneida Financial-New and
Oneida Savings Bank will continue to be subject to these New York State tax premiums.
New York State Department of Taxation's most recent audits were of Oneida Financial Corp.'s
state income tax returns for the years of 1999, 2000 and 2001.
As a Maryland business corporation, Oneida Financial-New will be required to file annual returns
and pay annual fees to the State of Maryland.
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MANAGEMENT
Shared Management Structure
The directors of Oneida Financial-New are the same persons who are the directors of Oneida
Savings Bank. In addition, certain executive officers of Oneida Financial-New are also executive
officers of Oneida Savings Bank. Both Oneida Financial-New and Oneida Savings Bank may choose to
appoint additional or different persons as directors and executive officers in the future. We
expect that Oneida Financial-New and Oneida Savings Bank will continue to have some common
executive officers until there is a business reason to establish separate management structures.
To date, executive officers have been compensated only for their services to Oneida Savings Bank.
Our directors will receive additional compensation for their services to Oneida Financial-New.
Executive Officers
The following table sets forth information regarding the executive officers of Oneida
Financial Corp. and Oneida Savings Bank. These persons will serve in the same positions with
Oneida Financial-New following the common stock offering. The executive officers of Oneida
Financial-New and Oneida Savings Bank are, and will be, elected annually.
Name
Age(1)
Position
Michael R. Kallet
59
President and Chief Executive Officer
Eric E. Stickels
48
Executive Vice President, Chief Financial Officer and Corporate Secretary
Thomas H. Dixon
55
Executive Vice President and Chief Credit Officer
(1)
At December 31, 2009.
Directors of Oneida Financial-New and Oneida Savings Bank
Oneida Financial-New has eleven directors. Directors serve three-year staggered terms so that
approximately one-third of the directors are elected at each annual meeting. Directors of Oneida
Savings Bank will be elected by Oneida Financial-New as its sole stockholder. The following table
states our directors' names, their ages as of December 31, 2009, the years when they began serving
as directors of Oneida Savings Bank and when their current term expires.
Position(s) Held With
Director
Name(1)
Oneida Financial-New
Age
Since(2)
Current Term Expires
Michael R. Kallet
President and Chief
Executive Officer,
Director
59
1997
2010
Patricia D. Caprio
Director
60
1985
2012
Edward J. Clarke
Director
69
1987
2011
John E. Haskell
Director
66
1992
2010
Rodney D. Kent
Director
61
1990
2011
Richard B. Myers
Director
73
1981
2011
Nancy E. Ryan
Director
59
2009
2010
Ralph L. Stevens, M.D.
Director
55
2008
2012
Gerald N. Volk
Director
67
2002
2011
Frank O. White, Jr.
Director
54
1994
2012
John A. Wight, M.D.
Director
54
2008
2010
(1)
The mailing address for each person listed is 182 Main Street, Oneida, New York 13421.
Each of the persons listed as a director, is also a director of Oneida Savings Bank. Each of such
persons, with the exception of Edward J. Clarke and John E. Haskell, is also a director of Oneida
Financial, MHC.
(2)
Reflects initial appointment to the Board of Trustees of the mutual predecessor to Oneida
Savings Bank if prior to 1998.
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Board Independence
The Board of Directors has determined that, with the exception of Mr. Kallet, Mr. Haskell and
Mr. Clarke, each of Oneida Financial Corp.'s directors qualifies as an independent director under
the listing requirements for NASDAQ listed companies. The independent directors constitute a
majority of the Board of Directors. Mr. Kallet is not considered independent because he is an
executive officer of Oneida Financial Corp. Messrs. Haskell and Clarke are not considered
independent because they are employed by Bailey & Haskell Associates, Inc., a subsidiary of Oneida
Savings Bank.
From time to time, Oneida Savings Bank makes loans to its directors and executive officers and
related persons or entities. These loans are made in the ordinary course of business, are made on
substantially the same terms, including interest rates and collateral, as those prevailing at the
time for comparable transactions with other persons, and neither involve more than normal risk of
collectability nor present other unfavorable features. The Board does not believe that originating
these loans affects the independence of our board members.
Meetings and Committees of the Board of Directors
We conduct business through meetings of our Board of Directors and its committees. During the
year ended December 31, 2009, the Board of Directors of Oneida Financial Corp. met 13 times. No
director attended fewer than 75% of the aggregate of total meetings of Oneida Financial Corp.'s
board of directors and the committees on which such director served. Oneida Financial-New did not
exist in fiscal 2009.
In connection with the completion of the conversion and offering, Oneida Financial-New will
establish an audit committee, a compensation committee and a nominating committee. All of the
members of these committees will be independent directors as defined in the listing standards of
The Nasdaq Stock Market. Such committees will operate in accordance with the written charters
currently used by Oneida Financial Corp., which will be re-adopted by Oneida Financial-New.
The table below sets forth the directors of each of our standing committees as of December 31,
2009, and the number of meetings held by the comparable committee of Oneida Financial Corp. during
2009. The members of each committee are independent directors as defined under the NASDAQ Stock
Market listing standards. Director Rodney D. Kent will be designated as an "Audit Committee
Financial Expert" for the Audit Committee, as that term is defined by the rules and regulations of
the Securities and Exchange Commission.
Nominating
Compensation
Audit
Patricia D. Caprio
X
X
Rodney D. Kent
X
X
X
Richard B. Myers
X
X
Gerald N. Volk
X
Frank O. White, Jr.
X
John A. Wight, M.D.
X
Meeting(s) during 2009
1
1
5
Audit Committee.
The audit committee meets at least quarterly to examine and approve the
audit report prepared by the independent registered public accounting firm of Oneida Financial
Corp, to review and recommend the independent registered public accounting firm to be engaged by
Oneida Financial Corp., to review the internal audit function and internal accounting controls of
Oneida Financial Corp.,
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and to review and approve audit policies. In addition, the audit committee
meets with the independent registered public accounting firm to review the results of the annual
audit and other related matters. The audit committee also meets twice a year with Oneida Financial
Corp.'s independent registered public accounting firm.
Compensation Committee.
The compensation committee of Oneida Financial Corp. provides advice
and recommendations to the Board of Directors in the areas of employee salaries, benefit programs
and employment agreement provisions for the senior executive officers. Oneida Savings Bank also
has a human resources committee which deals with employee salaries, benefit programs and general
human resources problems of non-executive employees of Oneida Savings Bank and its subsidiaries.
Nominating Committee.
The committee is responsible for nominating persons for election to the
Board of Directors and also reviews whether shareholder nominations (if any) comply with the notice
procedures set forth in Oneida Financial Corp.'s bylaws.
The Business Background of Our Directors and Executive Officers
Directors:
The business experience for the past five years of each of our directors and executive
officers is set forth below. Unless otherwise indicated, directors and executive officers have
held their positions for the past five years.
Michael R. Kallet
is President and Chief Executive Officer of Oneida Financial Corp. and
Oneida Savings Bank. Mr. Kallet has over 30 years of experience in the banking industry and has
been President and Chief Executive Officer since March 1990. Mr. Kallet joined Oneida Savings Bank
in 1983 as an executive officer. During his tenure at Oneida Savings Bank, Mr. Kallet has served
as an active member of the Asset/Liability, Officer Loan, Trust Investment and Marketing
Committees. Mr. Kallet was appointed to the Board of Directors in 1997 and was elected Chairperson
of the Board of Oneida Savings Bank in 2008. Mr. Kallet is the chairperson of all subsidiary
corporation boards and also serves as President of the State Bank of Chittenango and Oneida
Preferred Funding Corp. Mr. Kallet is also President and a board member of Oneida Savings Bank
Charitable Foundation. Mr. Kallet is actively involved in the community and serves as Vice
Chairperson of the Oneida Healthcare Center, a regional hospital headquartered in Oneida, New York.
Mr. Kallet's extensive banking experience and knowledge of local markets enhances the breadth of
experience of the Board of Directors.
Patricia D. Caprio
is the Director of Leadership Giving at Colgate University and began her
professional career at Colgate in 1972. Mrs. Caprio has been a director of Oneida Savings Bank
since 1985 and a Director of the Oneida Financial Corp. since its inception in 1998. Mrs. Caprio
serves as the Chairperson of the Compensation and Human Resource Development Committees of Oneida
Financial Corp. Mrs. Caprio also serves on the Executive, Investment and Nominating Committees.
Mrs. Caprio has been an active member of the community for many years including serving as a board
member of the Community Memorial Hospital in Hamilton, New York. Mrs. Caprio provides our Board
with knowledge and understanding of our Southern
Madison County market area, as well as experience in the college/university and non-profit
business sectors.
Edward J. Clarke
is the former President of Kennedy & Clarke, Inc., a property and casualty
insurance agency located in Cazenovia, New York, which was acquired by Oneida Savings Bank in July
2002. Mr. Clarke was employed by Bailey & Haskell Associates, Inc., the insurance subsidiary of
Oneida Savings Bank, until his retirement on February 28, 2010. Mr. Clarke has been a Director of
Oneida Savings Bank since 1987 and a Director of Oneida Financial Corp. since its inception in
1998. Mr. Clarke is Chairperson of the Trust Committee and also serves on the Investment
Committee. Mr. Clarke
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provides the Board with knowledge and understanding of our Western Madison
and Eastern Onondaga County market areas, and expertise in financial services including insurance
and wealth management.
John E. Haskell
is the Chief Executive Officer of Bailey & Haskell Associates, Inc., the
insurance subsidiary of Oneida Savings Bank located in Oneida, New York. Mr. Haskell has been a
Director of Oneida Savings Bank since 1992 and a Director of Oneida Financial Corp. since its
inception in 1998. Mr. Haskell serves on the Executive and Investment Committees. In addition,
Mr. Haskell is a member of the subsidiary boards providing policy oversight, strategic advice and
governance for Bailey & Haskell Associates, Inc., Benefit Consulting Group, Inc. and Workplace
Health Solutions, Inc. Mr. Haskell is well known throughout our market area and provides the Board
with significant experience in financial services, insurance and business continuity planning and
succession planning.
Rodney D. Kent
is the President and Chief Executive Officer of International Wire Group, an
international manufacturer of wire products located in Camden, New York with operations in the
United States, Mexico, France and Italy. Mr. Kent has been a Director of Oneida Savings Bank since
1990 and a Director of Oneida Financial Corp. since its inception in 1998. Mr. Kent serves as the
Chairperson of the Audit Committee and the Chairperson of the Executive Committee. Mr. Kent
provides knowledge and expertise to the Board in the areas of financial statement preparation and
reporting, and serves as Oneida Financial Corp.'s Audit Committee Financial Expert. In addition,
Mr. Kent is a member of the Compensation, Human Resource Development and Nominating Committees.
Mr. Kent provides the Board with extensive experience in the manufacturing business sector, as well
as financial management, acquisitions and corporate governance.
Richard B. Myers, D.D.S.
is the Retired President of Orthodontic Associates of C.N.Y., P.C., a
clinical orthodontic practice located in Oneida, New York and Norwich, New York. Dr. Myers is a
graduate of Colgate University in Hamilton, New York and SUNY Buffalo in Buffalo, NY where he
obtained his degree in dentistry and orthodontics. Dr. Myers serves as Chairperson of the Board of
Oneida Financial Corp. and has served on the Board since its inception in 1998. Dr. Myers joined
the Board of Oneida Savings Bank in 1981 and concurrently serves as a Director-Emeritus of Oneida
Savings Bank. Dr. Myers is a member of the Executive, Compensation, Human Resource Development and
Nominating Committees. In addition, Dr. Myers serves as a director of all company subsidiary
boards. Dr. Myers provides the Board with business experience of running a medical practice and
the insight and understanding of the banking industry developed over his 28 years of involvement
with our Company.
Nancy E. Ryan
is the co-owner of Nunn's Hospital Supplies, Inc. located in Rome, New York.
Mrs. Ryan was appointed to the Board of Directors in November 2009. Mrs. Ryan has been involved in
the medical equipment industry for over 30 years and is an active member of the NYS Medical
Equipment Providers Association. Mrs. Ryan's community volunteer activities
include: Rome Memorial Hospital Foundation, Rome Community Foundation, Rome Chamber of
Commerce and Rome Rescue Mission. In addition, Mrs. Ryan is active in programs and organizations
supporting parochial education in the City of Rome and other civic and philanthropic organizations
serving Central New York. Mrs. Ryan is a successful business owner and is well known throughout
our Oneida County market area.
Ralph L. Stevens, M.D.
is the founder and medical director of Oneida Medical Imaging Center
located in Oneida, New York. Dr. Stevens has been a Director of Oneida Financial Corp. and Oneida
Savings Bank since December 2008. Dr. Stevens is a member of the Trust and Investment Committees.
Dr. Stevens is a graduate of Yale College in New Haven, CT and SUNY Upstate College of Medicine in
Syracuse, NY. Prior to developing a technologically advanced radiology and imaging center in 1997,
Dr. Stevens was employed for nearly 10 years by the Oneida City Hospital in the radiology unit. He
has been an active member of the Madison County Medical Society, Oneida Rotary Club, Yale Club of
Central New York and other civic and philanthropic organizations. In addition to his private
medical practice, Dr. Stevens is a Clinical Professor of Radiology at SUNY Upstate Medical
University. Dr. Stevens provides
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the Board with knowledge of the medical community throughout
Central New York. In addition, Dr. Stevens adds value in the oversight of our trust administration
and wealth management business.
Gerald N. Volk
is the President of Prima International Trading, a mining and construction
equipment trading company located in Syracuse, New York. Mr. Volk was a director of SBC Financial
Corporation and State Bank of Chittenango immediately preceding the acquisition of the bank by
Oneida Savings Bank in May 2002, at which time he joined the boards of Oneida Financial Corp. and
Oneida Savings Bank. Mr. Volk also serves on the Investment and Audit Committees. Mr. Volk
provides the Board with an extensive business background and experience in board oversight of two
financial institutions.
Frank O. White, Jr.
is the former Assistant Director of Athletics at Colgate University.
Until January 1998, Mr. White was the President and Chief Executive Officer of Mid-State Raceway,
Inc. located in Vernon, New York. Mr. White has been a director of Oneida Savings Bank since 1994
and a Director of the Oneida Financial Corp. since its inception in 1998. Mr. White serves as the
Chairperson of the Investment Committee and also serves on the Executive and Audit Committees. Mr.
White is well known throughout Madison County and provides insight in business management and the
university business sector.
John A. Wight, M.D
is the founder and managing director of Tri-Valley Family Practice located
in Vernon, New York. Dr. Wight also serves as Chief of Medical Staff at the Oneida Healthcare
Center in Oneida, New York. Dr. Wight has been a Director of Oneida Financial Corp. and Oneida
Savings Bank since December 2008. Dr. Wight is a member of the Audit and Human Resource
Development Committees. Dr. Wight is a graduate of SUNY Geneseo in Geneseo, NY and SUNY
Upstate College of Medicine in Syracuse, NY. Prior to establishing a medical practice in Central
New York in 1988 that currently includes nine practicing physicians, Dr. Wight performed family
practice residency work at St. Margaret Memorial Hospital in Pittsburgh, PA followed by joining a
private medical practice in Canastota, NY. He is a member of the American Academy of Family
Physicians, Central New York Independent Physicians Association and a board member of VVS Dollars
for Scholars. Dr. Wight's medical practice covers Western Oneida County and much of Madison
County. His respect in the medical community and community involvement activities provides
significant value to the Board.
Executive Officers who are not Directors
Eric E. Stickels,
age 48, has been Executive Vice President, Secretary and Chief Financial
Officer of Oneida Financial Corp. since April 2003, and Executive Vice President and Chief
Financial Officer of Oneida Savings Bank since January 2003. Prior to that time, Mr. Stickels held
a variety of positions at Oneida Savings Bank, most recently Senior Vice President and Chief
Financial Officer. Mr. Stickels has been associated with Oneida Savings Bank since 1982 and a
member of the senior management group since 1986. Mr. Stickels currently serves as an active
member of the Asset/Liability, Trust Investment, Compliance, Information Technology and Marketing
Committees. Mr. Stickels is the treasurer and secretary of all Oneida Savings Bank subsidiaries
and serves as a director of all Oneida Savings Bank subsidiary corporation boards. Mr. Stickels is
also Treasurer and a board member of Oneida Savings Bank Charitable Foundation. Mr. Stickels is
actively involved in the community and has served as a member of the executive committee of NYSARC,
Inc. since 2002, a statewide non-profit provider of services for individuals with intellectual and
other developmental disabilities.
Thomas H. Dixon,
age 55, has been Executive Vice President of Oneida Financial Corp. since
April 2003 and Executive Vice President and Chief Credit Officer of Oneida Savings Bank since
January 2003. Prior to that, Mr. Dixon held the position of Senior Vice President-Credit
Administration and has been associated with Oneida Savings Bank since January 1996. Mr. Dixon was
previously affiliated with Oneida Valley National Bank in various capacities since 1982. Mr. Dixon
currently serves as an active member of the Asset/Liability, Officer Loan and Marketing Committees.
Mr. Dixon serves as a director
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of all Oneida Savings Bank subsidiary corporation boards. Mr.
Dixon is also a board member of Oneida Savings Bank Charitable Foundation. Mr. Dixon is actively
involved in the community through various civic, social and educational organizations.
Code of Ethics
Oneida Financial Corp. has adopted a Code of Ethics that is applicable to the officers,
directors and employees of Oneida Financial Corp., including Oneida Financial Corp.'s principal
executive officer, principal financial officer, principal accounting officer or controller, or
persons performing similar functions.
Compensation Committee Interlocks and Insider Participation
The Board of Directors of Oneida Savings Bank, meeting in an "executive session" which
includes only independent directors, determines the salaries to be paid each year to Oneida Savings
Bank's officers. The Compensation Committee of Oneida Financial Corp., meeting in an "executive
session" including only independent directors, determine the base salaries to be paid each year to
the named executive officers of Oneida Financial Corp. which includes Messrs. Kallet, Stickels,
Dixon, Haskell and Catanzarita. Michael R. Kallet, the President and Chief Executive Officer, is
also a director of Oneida Financial Corp. and Oneida Savings Bank. Mr. Kallet has not in the past,
and will not in the future, be present during board deliberations or participate in the Board of
Directors' determination of compensation for the President and Chief Executive Officer.
During the year ended December 31, 2009, (i) no executive served as a member of the
compensation committee (or other board committee performing equivalent functions or, in the absence
of any such committee, the entire board of directors) of another entity, one of whose executive
officers served on Oneida Financial Corp.'s Compensation Committee; (ii) no executive officer of
the company served as a director of another entity, one of whose executive officers served on the
Compensation Committee of Oneida Financial Corp.; and (iii) no executive
officer of the company served as a member of the compensation committee (or other board
committee performing equivalent functions or, in the absence of any such committee, the entire
board of directors) of another entity, one of whose executive officers served as a director of
Oneida Financial Corp.
Compensation Discussion and Analysis
Compensation Philosophy.
Our compensation philosophy begins with the premise that the success
of Oneida Financial Corp. depends, in large part, on the dedication and commitment of the people we
place in key management positions, and the incentives we provide such persons to successfully
implement our business strategy and other corporate objectives. However, we recognize that Oneida
Savings Bank operates in a competitive environment for talent. Therefore, our approach to
compensation considers the full range of compensation techniques that enable us to compare
favorably with our peers as we seek to attract and retain key personnel.
As a public company, we base our compensation decisions on four basic principals:
•
Meeting the Demands of the Market — Our goal is to compensate our employees at
competitive levels that position us as the employer of choice among our peers who
provide similar financial services in the markets we serve.
•
Aligning with Shareholders — We use equity compensation as a key component of our
compensation mix to develop a culture of ownership among our key personnel and to
align their individual financial interests with the interests of our shareholders.
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•
Driving Performance — We base compensation in part on the attainment of
company-wide and business unit targets that return positive results to our bottom
line.
•
Reflecting our Business Philosophy — Our approach to compensation reflects our
values and the way we do business in the communities we serve.
This discussion is focused specifically on the compensation of the following executive
officers, each of whom is named in the Summary Compensation Table which appears later in this
section. These five executives are referred to in this discussion as the "Named Executive
Officers."
Name
Title
Michael R. Kallet
President and Chief Executive Officer
Eric E. Stickels
Executive Vice President and Chief Financial Officer
Thomas H. Dixon
Executive Vice President and Chief Credit Officer
John E. Haskell
Chief Executive Officer, Bailey & Haskell Associates, Inc.
John F. Catanzarita
President, Benefit Consulting Group Inc.
Role of Compensation Committee.
The compensation committee of Oneida Financial Corp. is
responsible for overseeing and making recommendations to the full board of directors with respect
to the compensation, including benefits, of the Named Executive Officers. The compensation
committee meets as necessary. One of the responsibilities of the compensation committee is to
provide, on an annual basis, final approval of the significant components of the total compensation
of the named executive officers. In making these determinations, the
compensation committee considers the executive's level of job responsibility, the compensation paid
by peers for similar levels of responsibility, industry survey data regarding executive
compensation, the financial condition and performance of the company, and an assessment of the
executive's individual performance. The compensation committee also strongly considers the
recommendations of our President and Chief Executive Officer regarding the other Named Executive
Officers. The Board of Directors has ultimate authority to approve the compensation of all Name
Executive Officers, including the President and Chief Executive Officer.
The compensation committee consists of the following directors of Oneida Financial Corp.:
Patricia D. Caprio (Chair), Rodney D. Kent and Richard B. Myers.
Role of Executives in Committee Activities
. The executive officers who serve as a resource to
the compensation committee are the President and Chief Executive Officer and the Executive Vice
President and Chief Financial Officer. Executives provide the compensation committee with input
regarding Oneida Savings Bank's employee compensation philosophy, process, and decisions for
employees other than the Named Executive Officers. In addition to providing factual information
such as company-wide performance on relevant measures, these executives articulate management's
views on current compensation programs and processes, recommend relevant performance measures to be
used for future evaluations, and otherwise supply information to assist the compensation committee.
The Executive Vice President and Chief Financial Officer may provide information to evaluate the
estimated financial impact regarding any proposed changes to the various components of
compensation. The President and Chief Executive Officer also provides information about individual
performance assessments for the other Named Executive Officers, and expresses to the compensation
committee his views on the appropriate levels of compensation for the other Named Executive
Officers for the ensuing year.
Executives participate in compensation committee activities purely in an informational and
advisory capacity and have no vote in the compensation committee's decision-making process. The
President and Chief Executive Officer and Executive Vice President and Chief Financial Officer do
not attend those portions of compensation committee meetings during which their performance is
evaluated or their compensation is being determined. No executive officer other than the President
and Chief
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Executive Officer attends those portions of compensation committee meetings during which
the performance of the other Named Executive Officers is evaluated or their compensation is being
determined.
Market Comparisons.
In determining compensation of the Named Executive Officers, the
compensation committee will utilize market information that is provided by Human Resources. For
the year ended December 31, 2008, our Human Resources Director utilized survey data from the NYBA
Compensation Survey — 2008 and the ACB Compensation Survey — 2007. In addition, the compensation
committee reviews compensation data derived from public filings of similarly situated publicly
traded financial institutions. The following peer group was utilized in determining market
compensation for our executive officers:
Tompkins Financial Corporation
Alliance Financial Corporation
Rome Bancorp, Inc.
Community Bank Systems, Inc.
NBT Bancorp, Inc.
Beacon Federal Bancorp, Inc.
Financial Institutions, Inc.
In reviewing the market comparison data, the compensation committee will review the other
components of executive compensation (broad based benefits and executive perquisites) but does not
necessarily consider changes to those components on an annual basis. Changes to the level or types
of benefits within these categories, including considerations relating to the addition or
elimination of benefits and plan design changes are made by the board of directors of Oneida
Savings Bank on an aggregate basis with respect to the group of employees entitled to those
benefits and not with reference to a particular Named Executive Officer's compensation.
The compensation committee seeks to create what it believes is the best mix of base salary and
annual cash incentives in delivering the Named Executive Officer's total cash compensation. For
each Named Executive Officer, a significant percentage of total cash compensation is at-risk,
meaning that it will generally be earned when Oneida Financial Corp. or the Named Executive Officer
is successful in ways that are aligned with and support Oneida Financial Corp's interest.
Compensation Program.
Compensation paid to our executive officers for 2009 consisted
primarily of base salary, annual cash incentive awards based upon a pre-approved cash incentive
plan, broad based benefits generally available to all full-time employees and perquisites available
only to certain Named Executive Officers.
The following summarizes the significant broad-based benefits in which the Named Executive
Officers were eligible to participate during 2009:
•
A defined contribution 401(k) retirement plan;
•
An employee stock ownership plan;
•
Medical coverage;
•
Life insurance; and
•
Pre-tax health and dependent care spending accounts.
In addition, the Named Executive Officers were also entitled to county club memberships. In
lieu of a monthly automobile allowance, Mr. Kallet has use of an automobile (including operating
expenses) owned by Oneida Savings Bank for business and personal use. Mr. Haskell has use of an
automobile (including operating expenses) leased by Bailey & Haskell Associates Inc. Personal use
of the
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automobiles is reported as taxable income to Mr. Kallet and Mr. Haskell. Messrs. Stickels,
Dixon and Catanzarita each receive a monthly car allowance.
Please refer to the "Summary Compensation Table" for compensation information regarding these
benefits for 2009. These benefits are aligned with our objective to attract and retain highly
qualified management talent for the benefit of all of our stockholders and are considered by the
compensation committee to be reasonable when compared to industry averages.
The compensation committee reviewed 2009 compensation for the Named Executive Officers
relative to the competitive market and relative to results delivered on established objectives and
performance criteria. The compensation committee concluded that the executives' compensation is
consistent with market practice and is reasonable based on performance.
Employment Agreements.
In addition to the components of executive compensation described
above, Messrs. Kallet, Stickels and Dixon are each parties to employment agreements with Oneida
Savings Bank. Messrs. Haskell and Catanzarita are each parties to employment
agreements with Bailey & Haskell Associates, Inc. and Benefit Consulting Group, Inc., respectively,
the wholly owned subsidiaries of Oneida Savings Bank. See "—Employment Agreements" for a
description of these agreements and for information about potential payments to these individuals
upon termination of their employment with Oneida Savings Bank. The employment agreements are
designed to give Oneida Savings Bank and its subsidiaries the ability to retain the services of the
designated executives while reducing, to the extent possible, unnecessary disruptions to Oneida
Savings Bank's operations. The agreements are for a three-year period for Messrs. Kallet, Stickels
and Dixon, and a five-year period for Messrs. Haskell and Catanzarita, and are reviewed and renewed
annually by the compensation committee of the board of directors. The employment agreements
provide for salary and bonus payments, as well as additional post-employment benefits, primarily
health benefits, under certain conditions, as defined in the employment agreements. The employment
agreements were negotiated directly with and recommended for approval by, the compensation
committee. The compensation committee negotiated the agreements with the assistance of outside
counsel, and the compensation committee believes such agreements are consistent with industry
practices and desirable for retaining executive talent.
Annual Compensation-Chief Executive Officer
. In May 2009, the compensation committee
recommended, and the board of directors approved, the various components of Mr. Kallet's 2009
annual compensation. Details regarding base salary and annual incentive cash awards are included
in the compensation tables following this section.
For 2009, the compensation committee established a base salary and a maximum bonus range for
Mr. Kallet of approximately $392,000. This target was established based on the recent and
anticipated financial performance of Oneida Financial Corp, the estimated value of Mr. Kallet's
services in the marketplace, and the compensation committee's view of Mr. Kallet's critical role in
the future success of Oneida Financial Corp.
After establishing the target value for Mr. Kallet's overall total cash compensation, the
compensation committee made detailed determinations for each element of compensation in order to
arrive at the desired overall result:
•
Base Salary
: The compensation committee set Mr. Kallet's base salary at $310,000
for 2009 representing no increase from his base salary in 2008. The base salary was
not increased from the 2008 level given the turbulent economic environment that
existed at the end of 2008. At this level, Mr. Kallet's base salary represented
approximately 80% of the target value of his total cash compensation, consistent with
the compensation committee's philosophy of emphasizing the at-risk components of total
cash compensation for executive officers. For 2010, the compensation committee
increased
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Mr. Kallet's base salary by $20,000, to $330,000 based on the estimated
value of Mr. Kallet's services in the marketplace.
•
Annual Incentive Cash Award
: Mr. Kallet's "target award" for 2009 was established
at approximately 20% of his base salary based on Oneida Financial Corp's 2009
performance.
All compensation committee actions taken with respect to Mr. Kallet's compensation were
presented as recommendations for approval by the full board of directors. The compensation
committee's recommendations regarding Mr. Kallet's 2009 base salary were approved by the full board
of directors in June 2009. The compensation committee's
recommendations regarding Mr. Kallet's 2009 annual incentive cash award were approved by the full
board of directors in May 2009.
Annual Compensation — Other Oneida Savings Bank Named Executive Officers
. In May 2009, the
compensation committee recommended, and the full the board of directors approved, the total cash
components of annual compensation for the other Named Executive Officers of Oneida Savings Bank.
Details regarding base salary and annual incentive cash awards made to the Named Executive Officers
are included in the detailed compensation tables following this section. The compensation
committee evaluated the overall level of total cash compensation for each Named Executive Officer
(other than the Chief Executive Officer) after considering the recent performance of Oneida
Financial Corp. and the role of each Named Executive Officer, the criticality of each Named
Executive Officer to the future success of Oneida Financial Corp in attaining its goals and their
experience, contribution and knowledge of our organization.
The target value of the Named Executive Officers' total cash compensation, as established by
the compensation committee for 2009, generally followed the same steps as outlined above for the
Chief Executive Officer.
After establishing the target value for each Named Executive Officer's overall total cash
compensation, the compensation committee made detailed determinations for each element of that
package in order to arrive at the desired overall result:
•
Base Salary
: The compensation committee set base salary at $190,000 for each of
Messrs. Stickels and Dixon, representing no increase from the base salaries in 2008.
The base salary was not increased from the 2008 level given the turbulent economic
environment that existed at the end of 2008. At this level, Messrs. Stickels and
Dixon's base salary represented approximately 80% of the target value of their total
cash compensation, consistent with the compensation committee's philosophy of
emphasizing the at-risk components of total cash compensation for executive officers.
For 2010, the compensation committee increased both Messrs. Stickel's and Dixon's base
salary by $12,000, to $202,000.
•
Annual Incentive Cash Award:
Messrs. Stickels and Dixon's "target award" for 2009
was established at approximately 20% of his base salary based on Oneida Financial
Corp's 2009 performance.
For 2009, the compensation committee established the target value of each of Messrs. Stickels
and Dixon's base salary and annual incentive cash award at approximately $231,000.
Annual Compensation-Other Non-Bank Named Executive Officers
. In May 2009, the compensation
committee recommended, and the full the board of directors approved, the total cash components of
annual compensation for the other non-banking Named Executive Officers. Messrs. Haskell and
Catanzarita are our non-banking Named Executive Officers. Details regarding base salary
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and annual
incentive cash awards made to the non-banking Named Executive Officers are included in the detailed
compensation tables following this section. The compensation committee evaluated the overall level
of total cash compensation for each non-banking Named Executive Officer (other than the Chief
Executive Officer) after considering the recent performance of the both Bailey & Haskell Associates
Inc. and Benefit Consulting Group Inc. and the role of each Named Executive Officer, the
criticality of each Named Executive
Officer to the future success of Oneida Financial Corp. in attaining its goals and their
experience, contribution and knowledge of our organization.
After establishing the target value for each Named Executive Officer's overall total cash
compensation, the compensation committee made detailed determinations for each element of total
compensation in order to arrive at the desired overall result:
•
Base Salary
: The compensation committee set Messrs. Haskell's and Catanzarita's
base salary at $193,640 and $181,000, respectively, which represented a 3% and 5%
increase respectively from the base salaries in 2008. At this level, Messrs.
Haskell's and Catanzarita's base salary represented approximately 85% and 100% of the
target value of their total cash compensation respectively, consistent with the
compensation committee's philosophy of emphasizing the at-risk components of total
cash compensation for executive officers. For 2010, the compensation committee
increased Mr. Haskell's base salary by $5,810, to $199,450. In addition, Mr.
Catanzarita's current base salary was increased by $12,500 to $193,500.
•
Annual Incentive Cash Award
: Mr. Haskell's "target award" for 2009 was established
at approximately 15% of his base salary based on Bailey & Haskell Associates Inc.'s
2009 performance. Mr. Catanzarita did not receive any annual incentive cash awards
for 2009.
Annual Cash Incentives.
The compensation committee designed, the Performance Based
Compensation Plan in order to link potential payout with our stockholders interests. The
performance objectives are established at the beginning of the year by the compensation
committee. For 2009, the primary corporate financial performance objectives were based on the
Company attaining certain targeted net income growth rates, return on average assets and return
on average tangible equity. Performance levels below the targeted level would result in no
payment being made. Performance levels exceeding the target by specified percentages may result
in increasing payments based on a six tier structure, provided that the total annual incentive
awards paid may not exceed 4% of Oneida Financial Corp.'s net income for the fiscal year. The
compensation committee may, at their discretion, modify the plan from time to time, to negate
the effects of certain non-recurring increases or decreases in the net income levels. The
performance objectives for Mr. Haskell are related to the overall performance of Bailey &
Haskell Associates, Inc. based on increased revenues due to commissions and fees received for
providing retail and whole insurance agency and brokerage services.
Long-Term Stock-Based Compensation
.
The purpose of our 2006 Recognition and Retention Plan
was to provide an additional incentive to certain officers to work to maximize shareholder
value. Stock awarded in 2006 vests 20% in 2006 with the remainder vesting ratably over the next
four years. This approach was designed to encourage key employees to remain in the employ of
Oneida Savings Bank and to encourage employees to take into account the long-term interests of
Oneida Financial Corp. The 2006 Recognition and Retention Plan was approved by our
stockholders.
In making the stock grants to Mr. Kallet and certain Named Executive Officers in 2006, the
compensation committee took into account the duties and responsibilities of the Named Executive
Officers. Accordingly, Messrs. Kallet, Stickels, Dixon and Haskell were awarded 20,000, 10,000,
10,000 and 2,000 shares, respectively. Full vesting of the shares underlying the 2006 awards will
occur as of December 31, 2010 provided that the executive is then employed
with us. In the event of the executive's
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death, disability or retirement, the termination of
the executive's employment without cause (as defined in the plan) or the termination of the
executive's employment by the executive for good reason (as defined in the plan), these shares will
vest immediately and will be distributed to the executive (or his beneficiary in the event of his
death) as soon as practicable. Dividends are being paid on the 2006 award shares including the
non-vested shares.
Retirement Plans
.
In addition to the compensation paid to Named Executive Officers as
described above, the Named Executive Officers received, along with and on the same terms as other
employees, certain life, health and disability benefits and benefits pursuant to our 401(k) plan,
employee stock ownership plan (ESOP), and defined benefit plan. All of our Named Executive
Officers were eligible to participate in the 401(k) plan during 2009. Messrs. Kallet, Stickels,
Dixon, Haskell and Catanzarita are 100% vested in each plan. The 401(k) plan provides that an
eligible employee may elect to defer his or her salary for retirement up to the Internal Revenue
Code Section 402(g) limit (subject to a maximum limitation for 2010 of $16,500, provided, however,
that a participant over age 50 may contribute an additional $5,500 to the 401(k) plan), and that we
will provide a matching contribution of 100% of the first 4% of the employee's salary and a
matching contribution of 50% of the next 2% of the employee's salary that is contributed by the
employee to the 401(k) plan. These contributions were made in the form of a cash contribution and
are invested at the direction of the employee. Compensation taken into account under the Plan
cannot exceed $245,000 for 2010. Our board of directors may amend or terminate this Plan at any
time. All of our employees who have attained age 21 and have completed 12 months of service during
which they have worked at least 1,000 hours are also eligible to participate in our employee stock
ownership plan. Allocations under the plan are based upon an employee's salary in relation to the
salary of all other qualified employees. Annual contributions to this plan are discretionary and
the aggregate contributions for 2009 totaled $300,000. The ESOP provides our employees with
allocations that consist of primarily of our common stock, which is allocated based upon an
employee's salary in relation to the salary of all other qualified employees. The defined benefit
plan has been frozen since June 15, 2004, and as a result no benefits have accrued thereafter.
Tax and Accounting Implications.
In consultation with our advisors, we evaluate the tax and
accounting treatment of each of our compensation programs at the time of adoption and on an annual
basis to ensure that we understand the financial impact of the program. Our analysis includes a
detailed review of recently adopted and pending changes in tax and accounting requirements. As
part of our review, we consider modifications and/or alternatives to existing programs to take
advantage of favorable changes in the tax or accounting environment or to avoid adverse
consequences. To preserve maximum flexibility in the design and implementation of our compensation
program, we have not adopted a formal policy that requires all compensation to be tax deductible.
However, to the greatest extent possible, it is our intent to structure our compensation programs
in a tax efficient manner.
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Executive Compensation
Summary Compensation Table.
The following table sets forth for the years ended December 31,
2009, 2008 and 2007 certain information as to the total remuneration we paid to Michael R. Kallet,
our President and Chief Executive Officer, Eric E. Stickels, our Chief Financial Officer, and the
three other most highly compensated executive officers of Oneida Financial Corp. and its
subsidiaries (the "Named Executive Officers").
Summary Compensation Table
Change in pension
value and
non-qualified
Non-equity
deferred
incentive plan
compensation
All other
Name and
Salary
Option awards
compensation
earnings
compensation
Total
Principal Position
Year
($) (1)
($) (2)
($) (3)
($) (4)
($) (5)
($)
Michael R. Kallet,
2009
310,000
50,220
71,292
12,229
71,630
515,371
President and Chief
2008
310,000
—
—
18,465
69,464
397,929
Executive Officer
2007
278,065
—
61,680
18,224
56,736
414,705
Eric E. Stickels,
2009
190,000
12,540
35,646
3,803
30,342
272,331
Executive Vice
2008
190,000
—
—
5,743
28,292
224,035
President and Chief
2007
166,460
—
30,840
5,668
22,754
225,722
Financial Officer
Thomas H. Dixon,
2009
190,000
14,845
35,646
1,947
32,250
274,688
Executive Vice
2008
190,000
—
—
2,940
28,229
221,169
President and Chief
2007
166,460
—
30,840
2,901
22,540
222,741
Credit Officer
John E. Haskell,
2009
193,640
—
30,980
1,411
59,003
285,034
Chief Executive Officer
2008
188,000
—
—
2,131
64,289
254,420
Bailey & Haskell
2007
181,125
—
41,667
2,103
61,816
286,711
Associates, Inc.
John F. Catanzarita
2009
181,000
—
—
—
32,159
213,159
President
2008
172,500
—
—
—
28,270
200,770
Benefit Consulting
2007
157,500
—
—
—
27,407
184,907
Group, Inc.
(1)
Mr. Kallet deferred $22,000, $20,500 and $20,500 of his salary
to the 401(k) Plan for 2009, 2008 and 2007, respectively. Mr. Stickels
deferred $13,888, $15,500 and $13,905 of his salary to the 401(k) Plan for
2009, 2008 and 2007, respectively. Mr. Dixon deferred $22,000, $20,500 and
$20,500 of his salary to the 401(k) Plan for 2009, 2008 and 2007, respectively.
Mr. Haskell deferred $22,000, $20,500 and $19,989 of his salary to the 401(k)
Plan for 2009, 2008 and 2007, respectively. Mr. Catanzarita deferred $21,980,
$20,500 and $20,491 of his salary to the 401(k) Plan for 2009, 2008 and 2007,
respectively.
(2)
Represents the grant date fair value of reload options received
by the Named Executive Officers under the Oneida Financial Corp. 2000 Stock
Option Plan. The grant date fair value of the reloaded options has been
computed in accordance with the stock-based compensation accounting rules (FASB
ASC Topic 718, formerly FAS 123R) for 2009. A discussion of the assumptions
used in calculating the award values may be found at footnote12 to our audited
financial statements.
(3)
Represents bonuses under the Performance Based Compensation
Plan earned based upon financial targets achieved in the specified year and to
be paid in April 2008, 2009 and 2010, respectively, for Messrs. Kallet,
Stickels and Dixon. Mr. Haskell's non-equity incentive compensation is based
upon criteria established in his employment agreement with Bailey & Haskell
Associates, Inc., as described below.
(4)
This column represents the change in actuarial present value of
the Named Executive Officer's accumulated benefit under the Retirement
Accumulation Plan of Oneida Savings Bank, a non-contributory tax-qualified
defined benefit pension plan utilizing a cash balance plan design.
(5)
The amounts in this column reflect what we paid for, or reimbursed, the applicable Names
Executive Officer for the various benefits and perquisites received. A break-down of the various elements of
compensation in this column is set forth in the table provided below.
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All Other Compensation
Employer
Contributions to
Life and Disability
Dividends
Total All Other
401(k) Plan
ESOP Allocation
Insurance
On Restricted Stock
Board Fees
Auto Expenses
Club Dues
Compensation
Name
Year
($)
($) (1)
($) (2)
($)
($)
($)
($)
($)
Michael R. Kallet,
2009
12,250
5,432
12,335
3,840
18,200
11,856
7,447
71,360
President and Chief
2008
11,500
3,781
12,025
5,760
16,300
12,651
7,447
69,464
Executive Officer
2007
11,250
5,460
9,229
7,680
13,550
4,223
5,344
56,736
Eric E. Stickels,
2009
9,920
4,213
4,864
1,920
—
8,400
1,025
30,342
Executive Vice
2008
11,133
3,629
4,690
2,880
—
4,900
1,060
28,292
President and Chief
2007
9,932
4,809
3,148
3,840
—
—
1,025
22,754
Financial Officer
Thomas H. Dixon,
2009
9,555
4,213
7,137
1,920
—
8,400
1,025
32,250
Executive Vice
2008
8,872
3,629
6,888
2,880
—
4,900
1,060
28,229
President and Chief
2007
8,137
4,804
4,784
3,840
—
—
975
22,540
Credit Officer
John E. Haskell,
2009
9,652
4,292
4,770
384
19,300
13,597
7,008
59,003
Chief Executive Officer
2008
9,399
3,775
4,283
576
19,900
15,927
10,429
64,289
Bailey & Haskell
2007
9,277
5,045
2,306
768
19,350
18,046
7,024
61,816
Associates, Inc.
John F. Catanzarita
2009
9,045
4,011
1,728
—
—
10,193
7,182
32,159
President
2008
8,622
2,803
1,505
—
—
8,428
6,912
28,270
Benefit Consulting
2007
7,875
3,805
1,418
—
—
7,419
6,890
27,407
Group, Inc.
(1)
Based on the fair market value of Oneida Financial Corp. common stock on December
31, 2009 of $8.95.
(2)
Represents the cost to Oneida Savings Bank for disability plan agreements and life insurance
plans, as well as coverage under a supplemental executive life and disability plan for Messrs.
Kallet, Stickels, and Dixon.
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Employment Agreements
Oneida Savings Bank and Oneida Financial Corp. have entered into substantially identical
employment agreements with Messrs. Kallet, Stickels, and Dixon (referred to below as the
"executives" or "executive"). Each employment agreement was originally executed on June 1, 2009
for a three-year term ending on May 31, 2012, (the "Employment Term"). Prior to expiration of the
Employment Term, the employment agreements will automatically be extended for an additional year,
unless the parties negotiate otherwise. The current base salary under the employment agreements is
$310,000, $190,000, $190,000 for Messrs. Kallet, Stickels, and Dixon, respectively. Each
executive's base salary will be reviewed annually. In addition to the base salary, each executive
will receive all benefits and fringe benefits applicable to executive personnel, and will be
entitled to receive supplemental life and long-term disability insurance.
Each executive will be entitled to severance payments and benefits in the event of his
termination of employment under specified circumstances, including (i) involuntary termination of
employment for reasons other than cause, disability, or retirement, or (ii) resignation during the
term of the agreement for "good reason." "Good reason" is defined as (A) the failure to re-elect
the executive to his current position, or a material adverse change in the executive's position,
duties, responsibilities, title or status that would cause the executive's position to have less
responsibility, importance, or scope; (B) a relocation of his principal place of employment by more
than 25 miles from Oneida Savings Bank's principal executive office; (C) a material reduction in
the executive's benefits and perquisites, including the executive's base salary, except for any
reduction that is generally applicable to all officers of Oneida Savings Bank; (D) a liquidation or
dissolution of Oneida Savings Bank or Oneida Financial Corp.; or (E) a material breach of the
employment agreement by Oneida Savings Bank or Oneida Financial Corp. In the event of the
executive's termination of employment as a result of any of these circumstances, the executive will
be entitled to receive a lump sum severance payment within 30 days following his date of
termination equal to: (i) the greater of the base salary due for the remaining term of the
employment agreement or for a period of six months, plus (ii) a cash bonus payment equal to the
estimated amount necessary to pay the premiums (calculated on an after tax basis) for the
executive's supplemental life and disability insurance coverage for 18 months following his date of
termination. Each executive will also be entitled to receive continued life insurance and
non-taxable medical and dental coverage for 18 months following his date of termination.
In the event of the executive's (i) involuntary termination of employment, for reasons other
than cause, death or disability, or (ii) voluntary resignation for "good reason" within six months
before, or twelve months following, a change in control of Oneida Savings Bank or Oneida Financial
Corp., the executive will be entitled to receive a lump sum severance payment within 30 days
following his date of termination equal to (i) 2.99 times the average annual compensation paid to
the executive and included as gross income for income tax purposes during the five full calendar
years (or if less, executive's period of employment) immediately preceding the year during which
the change in control occurs, plus (ii) a cash bonus payment equal to the estimated amount
necessary to pay the premiums (calculated on an after tax basis) for the executive's supplemental
life and disability insurance coverage for 18 months following his date of termination. In
addition, each executive will be entitled to receive continued life insurance and non-taxable
medical and dental coverage for 18 months following his date of termination. In the event any
severance payments or benefits provided to the executive constitute an "excess parachute payment"
as defined in Section 280G of the Code, the severance payments or benefits under each employment
agreement will be reduced accordingly to avoid penalties.
The employment agreements provide that for a period of 24 months following termination, each
executive agrees not to compete with Oneida Savings Bank and Oneida Financial Corp. in Madison,
Oneida, or Onondaga County.
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Mr. Haskell has entered into an employment agreement with Bailey & Haskell Associates, a
wholly owned subsidiary of Oneida Savings Bank. The employment agreement had a 5-year term (the
"Employment Term") and was automatically renewable on an annual basis at the end of the Employment
Term unless either party gave a notice of non-renewal to the other party. The Employment Term
currently expires on September 30, 2010. Prior to the expiration of the Employment Term, the
parties may negotiate for renewal or extension of the employment agreement or indicate through
written notice at least sixty (60) days prior to expiration an intent not to renew. If the
employment agreement is not terminated at the end of the Employment Term, the employment agreement
will automatically be extended for an additional 12-month period. Under the employment agreement,
Mr. Haskell is entitled to a base salary of at least $150,000 (his current base salary is
$193,640). In addition to the base salary, Mr. Haskell is entitled to participate in retirement
plans and other employee and fringe benefits applicable to all personnel. Mr. Haskell is also
entitled to receive a bonus payment equal to 5% of the consideration paid by Bailey & Haskell
Associates, Inc. upon the acquisition of any company providing insurance agency and brokerage
services, provided that Mr. Haskell materially participated in the consummation of the acquisition.
Furthermore, Mr. Haskell is entitled to receive an additional bonus payment equal to 25% of the
increase in the "target revenue" (as defined in the employment agreement) of the acquired company.
The employment agreement requires that following Mr. Haskell's termination of employment for any
reason, he will not compete with Bailey & Haskell Associates in the New York counties of Madison,
Oneida, and Onondaga for a period of 36 months thereafter.
Mr. Catanzarita has entered into an employment agreement with Benefit Consulting Group, a
wholly owned subsidiary of Oneida Savings Bank. The employment agreement was effective on January
1, 2006 and will expire on December 31, 2010 (the "Employment Term"). Prior to the expiration of
the Employment Term, the parties may negotiate for renewal or extension of the employment agreement
or indicate through written notice at least sixty (60) days prior to expiration an intent not to
renew. If the employment agreement is not terminated at the end of the Employment Term, the
employment agreement will automatically be extended for an additional 12-month period. Under the
employment agreement, Mr. Catanzarita is entitled to a base salary of at least $122,500 (his
current base salary is $181,000). In addition to the base salary, Mr. Catanzarita is entitled to
participate in retirement plans and other employee and fringe benefits applicable to all personnel.
The employment agreement requires that following Mr. Catanzarita's termination of employment for
any reason, he will not compete with Benefit Consulting Group in any area located within a 75 mile
radius of Syracuse, New York for a period of two years thereafter.
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Plan-Based Awards.
The following table provides information for the year ended December 31,
2009 as to grants of plan-based awards for our Named Executive Officers.
Grants of Plan-Based Awards For the Fiscal Year Ended 2009
All other option
awards: number of
Exercise or base
Grant Date Fair
Estimated future payouts under
securities
price of option
Value of Option
Non-equity incentive plan awards
underlying options
awards
Awards
Name
Grant date
Threshold ($)
Target ($)
Maximum ($)
(#) (3)
($/Sh)
($)
Michael R. Kallet
12/31/09
0
71,292
82,260
President and Chief (1)
5/18/09
20,168
11.25
50,220
Executive Officer
Eric E. Stickels
12/31/09
0
35,646
41,130
Executive Vice Pres. (1)
7/06/09
2,635
10.75
6,270
and Chief Financial
5/18/09
2,518
11.25
6,270
Officer
Thomas H. Dixon
12/31/09
0
35,646
41,130
Executive Vice Pres., (1)
7/06/09
3,623
10.75
8,620
Chief Credit Officer
5/18/09
2,500
11.25
6,225
John E. Haskell
12/31/09
—
30,980
—
Chief Executive Officer
(2)
Bailey & Haskell
Associates, Inc.
(1)
Represents threshold, target and maximum payments achievable under our
Performance Based Compensation Plan earned based upon financial targets to be achieved
during the year ended December 31, 2009 and to be paid in March 2010 for Messrs. Kallet,
Stickels and Dixon.
(2)
Mr. Haskell's non-equity incentive compensation is based upon criteria
established in his employment agreement with Bailey & Haskell Associates, Inc. Please
see the description of Mr. Haskell's employment agreement set forth above for further
details.
(3)
Represents reload options received upon exercise of stock options when
previously owned common stock was utilized to pay the option exercise price under the
Oneida Financial Corp. 2000 Stock Option Plan.
Benefit Plans
Performance Based Compensation Plan
.
The Performance Based Compensation Plan was established
by Oneida Financial Corp. in 2005 and was amended in January 2006. The purpose of the plan is to
provide financial incentives to a select group of executive officers who contribute materially to
the continued growth, development, and future business success of Oneida Financial Corp. Messrs.
Kallet, Stickels, and Dixon are participants in the plan.
The compensation committee will determine the executive officers who are eligible to
participate in the plan. The participation level of Eligible executives will be based on their
category: category I is reserved for the President and Chief Executive Officer, and category II
applies to all other executive officers. Participants are eligible to receive an annual cash bonus
payment based on the satisfaction of specific targets for each performance metric established by
the compensation committee at the beginning of the fiscal year. For 2009, the compensation
committee used the following three performance metrics of Oneida Financial Corp.: (1) Return on
Average Assets ("ROAA"); (ii) Return on Average Tangible Equity ("ROATE"); and (iii) Net Income
Growth Rate.
At the end of the fiscal year, the compensation committee will establish a potential bonus
award of up to a fixed percentage of 4% of Oneida Financial Corp.'s net income. For 2009, 33.3%,
33.3%, and
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33.4% of the total bonus award was determined based on Oneida Financial Corp.'s satisfaction
of certain target performance levels related to ROAA, ROATE, and Net Income Growth Rate,
respectively. If a bonus award has been established, the compensation committee will allocate 50%
of the bonus award to category I participants and 50% of the bonus award to category II
participants. The allocated bonus award will be divided among the participants in each category
based on the participant's base salary in comparison to the total base salary of all participants
in the category. However, no bonus award will made if for the fiscal year: (i) the ROATE is less
than 7.5%; (ii) the ROAA is less than 0.50%; or (iii) the most recent regulatory examination report
does not reflect an acceptable Uniform Composite Rating.
2006 Recognition and Retention Plan
. During the fiscal year ended December 31, 2006, Oneida
Financial Corp. adopted, and Oneida Financial Corp.'s stockholders approved, the 2006 Recognition
and Retention Plan (the "2006 Recognition Plan"). The 2006 Recognition Plan authorizes the
issuance of up to 80,000 shares of the common stock of Oneida Financial Corp pursuant to grants of
restricted stock awards. Key employees and outside directors are eligible to receive awards under
the 2006 Recognition Plan. Pursuant to the 2006 Recognition Plan, 2000 restricted stock awards
were granted to each non-employee director, and Messrs. Kallet, Stickels, Dixon and Haskell were
granted 20,000, 10,000, 10,000, and 2,000 restricted stock awards, respectively. The restricted
stock awards that were granted vest ratably over a five-year period. During the year ended
December 31, 2009, no additional restricted stock awards were granted to the Named Executive
Officers under the 2006 Recognition Plan.
2000 Recognition and Retention Plan
. Oneida Financial Corp. adopted the 2000 Recognition and
Retention Plan (the "2000 Recognition Plan"). The 2000 Recognition Plan authorizes the issuance of
up to 187,285 shares of the common stock of Oneida Financial Corp. (as adjusted for a three-for-two
stock split in 2002 and 2004) pursuant to grants of restricted stock awards. Key employees and
outside directors are eligible to receive awards under the 2000 Recognition Plan. The restricted
stock awards that were granted vested ratably over a five-year period. During the year ended
December 31, 2009, no additional restricted stock awards were granted under the 2000 Recognition
Plan to the Named Executive Officers.
2000 Option Plan
. Oneida Financial Corp. adopted the 2000 Stock Option Plan ("2000 Option
Plan"), which authorizes the issuance of 374,568 shares of common stock of Oneida Financial Corp.
(as adjusted for a three-for-two stock split in 2002 and 2004) pursuant to grants of stock option
awards. A stock option gives the recipient the right to purchase shares of common stock of Oneida
Financial Corp. at a specified price for a specified period of time. Awards may be granted as
either incentive or nonstatutory stock options. Incentive stock options have certain tax
advantages and must comply with the requirements of Section 422 of the Internal Revenue Code. Only
employees are eligible to receive incentive stock options. Shares of common stock purchased upon
the exercise of a stock option must be paid for in full at the time of exercise either in cash or
with common stock that was owned by the recipient. In addition, the 2000 Option Plan permits the
grant of dividend equivalent rights and reload options.
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Outstanding Equity Awards at Year End.
The following table sets forth information with
respect to our outstanding equity awards as of December 31, 2009 for our Named Executive Officers.
Outstanding Equity Awards at Fiscal Year-End
Option awards
Stock awards
Number of
securities
Number of shares or
Market value of
underlying
units of stock that
shares or units of
unexercised options
Option exercise
Option expiration
have not vested (#)
stock that have not
Name
(#) exercisable (1)
price ($)
date
(2)
vested ($) (3)
Michael R. Kallet,
20,168
11.25
4/25/2010
4,000
35,800
President and Chief
7,160
14.00
4/25/2010
Executive Officer
4,811
17.00
4/25/2010
Eric E. Stickels,
7,000
4.72
4/25/2010
2,000
17,900
Executive Vice
3,600
9.33
4/25/2010
President and Chief
2,635
10.75
4/25/2010
Financial Officer
2,518
11.25
4/25/2010
1,280
14.00
4/25/2010
1,593
17.77
4/25/2010
Thomas H. Dixon,
3,623
10.75
4/25/2010
2,000
17,900
Executive Vice
2,500
11.25
4/25/2010
President, and Chief
5,000
14.15
4/25/2010
Credit Officer
1,500
17.13
4/25/2010
John E. Haskell,
—
—
—
400
3,580
Chief Executive Officer
Bailey & Haskell
Associates, Inc.
(1)
Represents options granted and reload options received (upon the exercise of
stock options when previously owned common stock was utilized to pay the option exercise
price
)
under the Oneida Financial Corp. 2000 Stock Option Plan. The table set forth
below reflects the unexercised reload options received by the Named Executive Officers:
Outstanding Reload Options
Mr. Kallet
Mr. Stickels
Mr. Dixon
# of Unexercised
# of Unexercised
# of Unexercised
Reload Options
Grant Date
Exercise Price
Reload Options
Grant Date
Exercise Price
Reload Options
Grant Date
Exercise Price
4,811
6/10/2003
$
17.00
3,600
8/23/2001
$
9.33
1,500
6/11/2003
$
17.13
7,160
1/21/2005
$
14.00
1,593
5/14/2003
$
17.77
5,000
5/13/2005
$
14.15
20,168
5/18/2009
$
11.25
1,280
1/21/2005
$
14.00
2,500
5/18/2009
$
11.25
2,518
5/18/2009
$
11.25
3,623
7/06/2009
$
10.75
2,635
7/06/2009
$
10.75
(2)
Represents the remaining unvested restricted stock awarded under the Oneida
Financial Corp. 2006 Recognition and Retention Plan as of December 31, 2009. The
remaining unvested shares vest on December 31, 2010.
(3)
Represents value of the unvested shares awarded under the Oneida Financial
Corp. 2006 Recognition and Retention Plan at December 31, 2009, based on the fair market
value of Oneida Financial Corp. common stock on December 31, 2009 of $8.95.
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Options Exercised and Stock Vested
. The following table sets forth information with
respect to option exercises and common stock awards that have vested during the year ended December
31, 2009 for our Named Executive Officers.
Option Exercises and Stock Vested for the Fiscal Year
Option awards
Stock awards
Number of shares
Number of shares
acquired on
Value realized on
acquired on vesting
Value realized on
Name
exercise (#)
exercise ($)
(#)(1)
vesting ($)(2)
Michael R. Kallet,
48,050
313,670
4,000
35,800
President and Chief Executive
Officer
Eric E. Stickels,
12,000
75,336
2,000
17,900
Executive Vice President and
Chief Financial Officer
Thomas H. Dixon,
14,206
88,612
2,000
17,900
Executive Vice President and
Chief Credit Officer
John E. Haskell,
—
—
400
3,580
Chief Executive Officer
Bailey & Haskell Associates, Inc.
(1)
The number of shares shown in this column represents the vesting of restricted stock
awarded under the Oneida Financial Corp. 2006 Recognition and Retention Plan as of December
31, 2009.
(2)
Represents value at December 31, 2009, which is based on the fair market value of Oneida
Financial Corp. common stock on December 31, 2009 of $8.95.
Pension Benefits.
The following table sets forth information with respect to pension
benefits at and for the year ended December 31, 2009 for the Named Executive Officers.
Pension Benefits at and for the Fiscal Year
Number of years
Present value of
Payments during
credited service
accumulated benefit
last fiscal year
Name
Plan name
(#) (2)
($)
($)
Michael R. Kallet,
Retirement Accumulation Plan of
22
438,320
—
President and Chief Executive Officer
Oneida Savings Bank
Eric E. Stickels,
Retirement Accumulation Plan of
23
136,321
—
Executive Vice President and Chief
Oneida Savings Bank
Financial Officer
Thomas H. Dixon,
Retirement Accumulation Plan of
9
69,785
—
Executive Vice President and Chief
Oneida Savings Bank
Credit Officer
John E. Haskell,
Retirement Accumulation Plan of
4
50,583
—
Chief Executive Officer
Oneida Savings Bank
Bailey & Haskell Associates, Inc.
(1)
The above table represents the account value of the executive's hypothetical account
balance at December 31, 2009 in the Retirement Accumulation Plan of Oneida Savings Bank, a
non-contributory defined benefit pension plan utilizing a cash balance plan design.
(2)
No years of service have been credited since June 15, 2004, the date on which the Retirement
Accumulation Plan was frozen.
Tax-Qualified Benefit Plans
Defined Benefit Plan.
Oneida Savings Bank maintains the Retirement Accumulation Plan of
Oneida Savings Bank, a tax-qualified defined benefit plan utilizing a cash balance plan design.
Employees of Oneida Savings Bank who are 21 or older and have completed one year of employment are
eligible to participate in the plan. Each participant has an individual retirement account. For
each plan year in which a participant completes one year of service, the participant's account will
be credited with an allocation equal to a percentage of the participant's compensation, where the
percentage is determined based on the number of years of service the participant has with Oneida
Savings Bank. As of June 15, 2004, the plan was amended to freeze participation and the accrual of benefits thereunder.
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Generally, a participant's retirement benefit will be payable following the participant's
retirement on or after attaining age 65. However, if a participant terminates employment prior to
age 65, he will be entitled to receive his vested benefit. The participant's retirement benefit is
equal to his or her accrued benefit under the plan, and will be payable in either a lump sum or
various forms of life annuities or joint and survivor annuities that are offered under the plan.
4
01(k)
Plan.
Oneida Savings Bank maintains the Oneida Savings Bank 401(k) Profit Savings
Plan, a tax-qualified defined contribution retirement plan, for all employees who have satisfied
the 401(k) plan's eligibility requirements. All eligible employees can begin participation in the
401(k) plan on the first entry date that coincides with or next follows the date the employee has
completed one year of service. A participant may contribute up to 100% of his or her compensation
to the 401(k) plan, on a pre-tax basis, subject to the limitations imposed by the Internal Revenue
Code. For 2009 and 2010, the salary deferral contribution was $16,500, provided, however that a
participant over age 50 may contribute an additional $5,500 to the 401(k) plan. In addition to
salary deferral contributions, Oneida Savings Bank will make matching contributions equal to 100%
of the participant's salary deferral contributions for the plan year that is not in excess of 4% of
the participant's annual salary, plus 50% of the participant's salary deferral contributions in
excess of 4% of his or her annual salary but not in excess of 6% of the participant's annual
salary. In addition, Oneida Savings Bank may also provide a discretionary employer contribution.
A participant is always 100% vested in his or her salary deferral contributions and employer
matching contributions. All other employer discretionary contributions vest at a rate of 20% per
year, and will be fully vested upon completion of five years of credited service. However, a
participant will immediately become 100% vested in any discretionary employer contributions
received upon the participant's death, disability, or attainment of age 65 while employed with
Oneida Savings Bank. Generally, unless the participant elects otherwise, the participant's benefit
under the 401(k) plan will be payable in the form of a lump sum payment by no later than the last
day of the plan year immediately following the participant's date of termination.
Each participant has an individual account under the 401(k) plan and may direct the investment
of his or her account among a variety of investment options or vehicles available. In addition,
participants in the 401(k) plan can purchase shares of Oneida Financial-New common stock through a
new employer stock fund (the "New Employer Stock Fund") that will be established in connection with
the conversion. Upon consummation of the conversion, all shares of Oneida Financial Corp. common
stock currently held in the Oneida Financial Corp. Stock Fund (the "Old Employer Stock Fund") under
the 401(k) plan will automatically be converted into shares of Oneida Financial-New common stock
(pursuant to the exchange ratio). As soon as practicable following the closing of the conversion,
the Old Employer Stock Fund will then be merged into the New Employer Stock Fund.
Employee Stock Ownership Plan.
Oneida Savings Bank maintains the Oneida Savings Bank
Employee Stock Ownership Plan for eligible employees. Employees who are at least 21 years old with
at least one year of service are eligible to participate in the plan. The plan borrowed funds from
Oneida Financial Corp. and used those funds to purchase shares of common stock for the plan in
connection with our 1998 stock offering. This loan was fully repaid in 2007 and all the common
stock that was purchased with the loan has been fully allocated to the participants' accounts.
Oneida Savings Bank continues to make discretionary contributions to the employee stock ownership
plan, which the contributions are used to purchase shares of Oneida Financial Corp. common stock on
the open market. In connection with the conversion, all shares of Oneida Financial Corp. common
stock currently held by the employee stock ownership plan will automatically be converted into
shares of Oneida Financial-New common stock pursuant to the exchange ratio.
The employee stock ownership plan trustee is expected to purchase, on behalf of the employee
stock ownership plan, 4% of the total number of shares of Oneida Financial-New common stock issued
in
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the offering. When combined with the common stock that was purchased by the employee stock
ownership plan in connection with the 1998 stock offering of Oneida Financial Corp. that will be
converted to shares of Oneida Financial-New (pursuant to the exchange ratio), the total shares
purchased by the plan will be less than 8% of the shares of Oneida Financial-New that will be
outstanding following the conversion, as required by the Office of Thrift Supervision regulations.
We anticipate that the employee stock ownership plan will fund its stock purchase with a loan from
Oneida Financial-New equal to the aggregate purchase price of the common stock. The loan will be
repaid principally through Oneida Savings Bank's contribution to the employee stock ownership plan
and dividends payable on the common stock held by the employee stock ownership plan over the
anticipated 10-year term of the loan. The interest rate for the employee stock ownership plan loan
is expected to be an adjustable-rate equal to the prime rate, as published in
The Wall Street
Journal
, on the closing date of the offering. Thereafter the interest rate will adjust annually.
The trustee will hold the shares purchased by the employee stock ownership plan in an
unallocated suspense account, and shares will be released to the participants' accounts as the loan
is repaid. Shares released from the unallocated suspense account will be allocated to each
eligible participant's plan account based on the ratio of each participant's compensation to the
total compensation of all eligible participants. Vested benefits will be payable generally upon
the participants' termination of employment, and will be paid in the form of common stock, or to
the extent participants' accounts contain cash, benefits will be paid in cash. However,
participants have the right to elect to receive their benefits entirely in the form of cash or
common stock, or a combination of both.
Under applicable accounting requirements, Oneida Savings Bank will record a compensation
expense for the employee stock ownership plan at the fair market value of the shares as they are
committed to be released from the unallocated suspense account to participants' accounts. The
compensation expense resulting from the release of the common stock from the suspense account and
allocation to plan participants will result in a corresponding reduction in Oneida Financial-New's
earnings.
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Potential Payments to Named Executive Officers
The following table sets forth estimates of the amounts that would be payable to the Named
Executive Officers upon the executive's retirement, termination without cause, termination
following a change in control, disability or death, if such termination was effective as of
December 31, 2009. The table does not include vested or accrued benefits under tax-qualified
benefit plans that are disclosed elsewhere in the prospectus. The actual amounts to be paid upon
any future termination can only be determined at the time of such actual separation.
Mr. Kallet
Mr. Stickels
Mr. Dixon
Mr. Haskell
Mr. Catanzarita
Discharge without Cause or Resignation
with Good Reason — No Change in
Control
Cash Wages (1)
$
749,167
$
459,157
$
459,167
—
—
Life, Health and Welfare Benefits (2)
$
15,681
$
13,264
$
14,586
—
—
Total
$
764,848
$
472,421
$
473,753
—
—
Discharge without Cause or Resignation
with Good Reason —Change in Control
Cash Wages (1)
$
926,900
$
568,100
$
568,100
—
—
Life, Health and Welfare Benefits (2)
$
15,681
$
13,264
$
14,586
—
—
Total (3)
$
942,581
$
581,364
$
582,686
—
—
Disability
Cash Wages (4)
$
—
$
—
$
—
$
47,747
—
Life, Health and Welfare Benefits (5)
$
779,210
$
1,077,120
$
348,000
$
—
—
Total
$
779,210
$
1,077,120
$
348,000
$
47,747
—
Death
Cash Wages (6)
$
76,439
$
46,850
$
46,850
—
—
Life, Health and Welfare Benefits (7)
$
870,000
$
550,000
$
550,000
—
—
Total
$
946,439
$
596,850
$
596,850
—
—
Retirement
Cash Wages
—
—
—
—
—
Life, Health and Welfare Benefits
—
—
—
—
—
Total
—
—
—
—
—
(1)
Reflects the cash severance payment as stipulated in each Named Executive Officer's
employment agreement.
(2)
Reflects the cost of continued life insurance coverage, non-taxable medical and dental
insurance coverage, through the remaining term of the employment agreement.
(3)
In the event the total payment includes an "excess parachute payment" as defined under
Section 280G of the Internal Revenue Code, the total payment would be reduced in order to
avoid having an excess parachute payment.
(4)
Oneida Savings Bank will be obligated to pay the base salary of Messrs. Kallet, Stickels,
Dixon, and Haskell for 26 weeks, 26 weeks, 26 weeks, and 90 days, respectively, which is
reflected above. However, the base salary will be reduced by any benefits received by the
executive under any disability insurance policy or arrangement maintained by Oneida Savings
bank.
(5)
Reflects the benefits received under the Named Executive Officer's supplemental disability
insurance policy. Messrs. Kallet and Stickels are entitled to receive a monthly disability
benefit equal to $11,630 and $5,440, respectively, which is payable until they reach age 65.
Mr. Dixon is entitled to receive a monthly disability benefit equal to $5,440, which is
payable for 5 years.
(6)
Reflects the base salary and payments related to benefit plans that would have otherwise been
due for 90 days following the executive's death.
(7)
Reflects the benefits received under the Named Executive Officer's supplemental life
insurance policy, and also the life insurance policy provided by Oneida Savings Bank to all of
its employees. Messrs. Kallet, Stickels ad Dixon are each entitled to receive an additional
$250,000 (which is not reflected in the table above) in the event that their death is
considered accidental.
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Directors' Compensation
The following table sets forth for the year ended December 31, 2009 certain information as to
the total remuneration we paid to our directors, except for any director who is also a Named
Executive Officer. Director compensation paid to directors who also are Named Executive Officers
is reflected above in "Executive Compensation — Summary Compensation Table."
Director Compensation (3)
Fees earned or paid
All other
in cash
Stock awards
Option awards
compensation
Total
Name
($) (1)
($) (2)
($)
($)
($)
Patricia D. Caprio
30,880
—
—
—
30,880
Edward J. Clarke
22,480
—
—
—
22,480
Rodney D. Kent
29,500
—
—
—
29,500
Richard B. Myers
28,680
—
—
—
28,680
Nancy E. Ryan
1,200
7,184
—
—
8,384
Ralph A. Stevens, M.D.
17,700
7,184
—
—
24,884
Gerald N. Volk
21,580
—
—
—
21,580
Frank O. White, Jr.
26,780
—
—
—
26,780
John Wight, M.D.
16,900
7,184
—
—
24,084
(1)
Represents board stipend plus meeting fees paid when the director attends a board
or committee meeting.
(2)
Represents the grant date fair value of the restricted stock awarded under the 2006
Recognition and Retention Plan. 800 restricted stock awards were granted to new
directors in 2009. The shares vest ratably over two years with the first 50% vesting on
December 31, 2009. The grant date fair value of the restricted stock awards has been
computed in accordance with the stock based accounting rules (FASB ASC Topic 718,
formerly FAS 123R).
(3)
As of December 31, 2009, the directors have the following outstanding equity
awards: Ms. Caprio has 6,750 option awards and 400 unvested stock awards, Mr. Clarke has
6,444 option awards and 400 unvested stock awards, Mr. Kent has 400 unvested stock
awards, Mr. Myers has 400 unvested stock awards, Ms. Ryan has 400 unvested stock awards,
Dr. Stevens has 400 unvested stock awards, Mr. White has 6,750 option awards and 400
unvested stock awards, and Dr. Wight has 400 unvested stock awards.
Directors of Oneida Financial Corp. are not separately compensated. Directors of Oneida
Savings Bank receive an annual retainer of $7,500 and a fee of $600 for each Oneida Savings Bank
Board of Directors meeting attended. Directors receive $400 for each committee meeting attended.
Members of the executive committee receive $400 for each executive committee meeting attended. The
Chairman of the Board receives an additional $100 for every Board of Directors meeting attended and
each committee chair receives an additional $100 for every committee meeting attended. Oneida
Savings Bank paid a total of $212,000 in director fees during the year ending December 31, 2009.
In addition, the Directors are eligible to participate in the 2000 Stock Option Plan and the
2006 Recognition and Retention Plan. Please see the descriptions of each plan set forth above
under the "Executive Compensation — Grants of Plan-Based Awards Table" for further details.
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Benefits to be Considered Following Completion of the Conversion
Stock-Based Incentive Plan
.
Following the stock offering, we intend to adopt a new
stock-based incentive plan that will provide for grants of stock options and restricted common
stock awards. The number of options granted or shares awarded under the plan may not exceed 10%
and 4%, respectively, of the shares sold in the stock offering subject to adjustment as may be
required by Office of Thrift Supervision regulations or policy to reflect stock options or awards
previously made by Oneida Financial Corp. or Oneida Savings Bank if the stock-based incentive plan
is adopted within one year after the stock offering, in accordance with Office of Thrift
Supervision regulations and policy.
The stock-based incentive plan will not be established sooner than six months after the stock
offering and if adopted within one year after the stock offering would require the approval by
stockholders owning a majority of the outstanding shares of Oneida Financial-New common stock
eligible to be cast. If the stock-based incentive plan is established after one year after the
stock offering, it would require the approval of our stockholders by a majority of votes cast. The
following additional restrictions would apply to our stock-based incentive plan only if the plan is
adopted within one year after the stock offering:
•
non-employee directors in the aggregate may not receive more than 30% of the options
and restricted stock awards authorized under the plan;
•
any one non-employee director may not receive more than 5% of the options and
restricted stock awards authorized under the plan;
•
any officer or employee may not receive more than 25% of the options and restricted
stock awards authorized under the plan;
•
any tax-qualified employee stock benefit plans and management stock benefit plans,
in the aggregate, may not hold more than 10% of the shares sold in the offering, unless
Oneida Savings Bank has tangible capital of 10% or more, in which case any
tax-qualified employee stock benefit plans and management stock benefit plans, may be
increased to up to 12% of the shares sold in the offering;
•
the options and restricted stock awards may not vest more rapidly than 20% per year,
beginning on the first anniversary of stockholder approval of the plan;
•
accelerated vesting is not permitted except for death, disability or upon a change
in control of Oneida Savings Bank or Oneida Financial-New; and
•
our executive officers or directors must exercise or forfeit their options in the
event that Oneida Savings Bank becomes critically undercapitalized, is subject to
enforcement action or receives a capital directive.
We have not yet determined whether we will present the stock-based incentive plan for
stockholder approval within 12 months following the completion of the conversion or more than 12
months after the completion of the conversion. In the event either federal or state regulators
change their regulations or policies regarding stock-based incentive plans, including any
regulations or policies restricting the size of awards and vesting of benefits as described above,
the restrictions described above may not be applicable.
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Transactions With Certain Related Persons
All transactions between Oneida Financial Corp. and its executive officers, directors, holders
of 10% or more of the shares of its Common Stock and affiliates thereof, are on terms no less
favorable to Oneida Financial Corp. than could have been obtained by it in arm's-length
negotiations with unaffiliated persons. Such transactions must be approved by a majority of
independent outside directors of Oneida Financial Corp. not having any interest in the transaction.
Section 402 of the Sarbanes-Oxley Act of 2002 generally prohibits an issuer from: (1)
extending or maintaining credit; (2) arranging for the extension of credit; or (3) renewing an
extension of credit in the form of a personal loan for an officer or director. There are several
exceptions to this general prohibition, one of which is applicable to Oneida Financial Corp.
Sarbanes-Oxley does not apply to loans made by a depository institution that is insured by the FDIC
and is subject to the insider lending restrictions of the Federal Reserve Act. All loans to Oneida
Savings Bank's directors and officers are made in conformity with the Federal Reserve Act and
applicable regulations. These loans are made in the ordinary course of business, are made on
substantially the same terms, including interest rates and collateral, as those prevailing at the
time for comparable transactions with other persons, and neither involve more than normal risk of
collectability nor present other unfavorable features.
Director John E. Haskell is the Chief Executive Officer of Bailey & Haskell Associates, Inc.,
the wholly owned insurance agency subsidiary of Oneida Savings Bank. During fiscal 2000 Oneida
Financial Corp. completed the acquisition of Bailey & Haskell Associates, Inc. Under the terms of
the agreement, contingent purchase payments were to be made based upon future performance levels of
the subsidiary over a five-year period. An additional contingent purchase payment in the amount of
$1,556,070 was paid in fiscal 2006 to an entity in which Mr. Haskell has approximately a 50%
beneficial interest. This represents the final payment under the terms of the agreement
During fiscal 2006 the Bank completed its acquisition of Benefit Consulting Group L.L.C., an
employee benefits consulting and retirement plan administration firm for $3.7 million. Thomas J.
Bader, Jerome A. Lindberg, John F. Catanzarita, Donald J. Abernethy, James R. Mersfelder and Pamela
S. Stobnicke were the Members (collectively "Members") of the selling company. All Members of the
selling company became employees of the resulting company Benefit Consulting Group Inc., as a
wholly owned subsidiary of Oneida Savings Bank. All Members entered into employment agreements
with Benefit Consulting Group, Inc. in substantially the same form as described for Mr. Catanzarita
under the "Employment Agreement" section of this prospectus. Under the terms of the purchase
agreement, contingent purchase payments may be made based upon future performance levels of the
subsidiary over a five-year period. An additional contingent purchase payment in the amount of
$135,417 and $129,044 was paid in fiscal 2009 and 2008 respectively to Benefit Consulting Group
L.L.C. in which Mr. Catanzarita has a beneficial interest.
Pursuant to the Audit Committee charter, the Audit Committee oversees transactions with
related persons and reviews such transactions for potential conflicts of interest on an on-going
basis. Our Conflict of Interest Policy and Code of Conduct requires that our executive officers and
directors disclose any existing or emerging conflicts of interest. In addition, the board of
directors reviews all loans made to directors and executive officers. Other than as described
above, we do not maintain a written policy with respect to related party transactions.
Indemnification of
Directors
and Officers
The officers, directors, agents and employees of Oneida Financial-New are indemnified with
respect to certain actions pursuant to Oneida Financial-New's articles of incorporation and
Maryland law. Maryland law allows Oneida Financial-New to indemnify any person for expenses,
liabilities, settlements,
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judgments and fines in suits in which such person has been made a party by reason of the fact
that he or she is or was a director, officer or employee of Oneida Financial-New. No such
indemnification may be given (i) to the extent that it is proved that the person actually received
an improper benefit or profit in money, property or services for the amount of the benefit or
profit in money, property or services actually received, (ii) to the extent that a judgment or
other final adjudication adverse to the person is entered in a proceeding based on a finding that
the person's action, or failure to act, was the result of active and deliberate dishonesty and was
material to the cause of action adjudicated, or (iii) to the extent otherwise provided by Maryland
law. The right to indemnification includes the right to be paid the expenses incurred in advance
of final disposition of a proceeding.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to our directors, officers and controlling persons by our bylaws or otherwise, we have
been advised that, in the opinion of the Securities and Exchange Commission, such indemnification
is against public policy as expressed in the Securities Act of 1933 and is, therefore,
unenforceable.
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BENEFICIAL OWNERSHIP OF COMMON STOCK
The following table provides the beneficial ownership of our common stock held by our
directors and executive officers, individually and as a group, and all individuals known to
management to own more than 5% of our common stock as of
, 2010. The business address
of each director and executive officer is 182 Main Street, Oneida, New York 13421. Unless
otherwise indicated, each of the named individuals has sole voting power and sole investment power
with respect to the number of shares shown.
Total Shares
Percent of All
Beneficially Owned
Common Stock
Name of Beneficial Owner
(1)
Outstanding
Directors:
(2)
Michael R. Kallet
193,286
(4)
2.43
%
Patricia D. Caprio
36,050
(5)
*
Edward J. Clarke
26,117
(6)
*
John E. Haskell
119,918
(7)
1.51
Rodney D. Kent
68,628
(8)
*
Richard B. Myers
52,500
(9)
*
Nancy E. Ryan
800
(10)
*
Ralph L. Stevens M.D.
14,117
(11)
*
Gerald N. Volk
23,369
(12)
*
Frank O. White, Jr.
36,245
(13)
*
John A. Wight M.D.
12,989
(14)
*
Executive Officers Who Are Not Also Directors:
Thomas H. Dixon
85,972
(15)
1.08
Eric E. Stickels
88,683
(16)
1.12
All Directors and Executive Officers
as a Group (13 persons)
(3)
758,674
(17)
9.54
%
Principal Stockholders:
Oneida Financial, MHC
(3)
182 Main Street
Oneida, New York 13421
4,309,750
55.19
%
*
Less than 1%.
(1)
A person is deemed to be the beneficial owner for purposes of this table, of any shares of
common stock if he has shared voting or investment power with respect to such security, or has
a right to acquire beneficial ownership at any time within 60 days from the record date. As
used herein, "voting power" is the power to vote or direct the voting of shares and
"investment power" is the power to dispose or direct the disposition of shares. Includes all
shares held directly as well as by spouses and minor children, in trust and other indirect
ownership, over which shares the named individuals effectively exercise sole or shared voting
and investment power. Unless otherwise indicated, the named individual has sole voting and
investment power.
(2)
The mailing address for each person is listed as 182 Main Street, Oneida, New York 13421.
(3)
Oneida Financial Corp.'s executive officers and directors are also executive officers and
directors of Oneida Financial, MHC, with the exception of John E. Haskell and Edward J.
Clarke.
(4)
Includes shared voting and investment power over 64,117 shares and sole voting and investment
power over 129,169 shares; includes options to purchase 32,140 shares of common stock.
(5)
Includes sole voting and investment power over 36,050 shares; includes options to purchase
6,750 shares of common stock.
(6)
Includes shared voting and investment power over 7,606 shares and sole voting and investment
power over 18,511 shares; includes options to purchase 5,186 shares of common stock.
(7)
Includes shared voting and investment power over 64,117 shares and sole voting and investment
power over 55,801 shares.
(8)
Includes sole voting and investment power over 68,628 shares.
(9)
Includes shared voting and investment power over 5,500 shares and sole voting and investment
power over 47,000 shares.
(10)
Includes sole voting and investment power over 800 shares.
(11)
Includes sole voting and investment power over 14,117 shares.
(12)
Includes shared voting and investment power over 9,069 shares and sole voting and investment
power over 14,300 shares; includes options to purchase 4,500 shares of common stock.
(13)
Includes shared voting and investment power over 36,245 shares; includes options to purchase
5,492 shares of common stock.
(14)
Includes sole voting and investment power over 12,989 shares.
(15)
Includes shared voting and investment power over 12,144 shares and sole voting and investment
power over 73,828 shares; includes options to purchase 12,624 shares of common stock.
(16)
Includes shared voting and investment power over 22,799 shares and sole voting and investment
power over 65,884 shares; includes options to purchase 17,368 shares of common stock.
(17)
Includes options to purchase 84,060 shares of common stock.
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SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS
The table below sets forth, for each of Oneida Financial-New's directors and executive
officers and for all of the directors and executive officers as a group, the following information:
(i)
the number of exchange shares to be held upon consummation of the conversion,
based upon their beneficial ownership of Oneida Financial Corp. common stock as of
[stockholder record date];
(ii)
the proposed purchases of subscription shares, assuming sufficient shares of
common stock are available to satisfy their subscriptions; and
(iii)
the total amount of Oneida Financial-New common stock to be held upon
consummation of the conversion.
In each case, it is assumed that subscription shares are sold at the midpoint of the offering
range. See "The Conversion and Offering—Limitations on Common Stock Purchases." Regulations of
the Office of Thrift Supervision prohibit our directors and officers from selling the shares they
purchase in the offering for one year after the date of purchase.
Proposed Purchases of Stock in
the Offering (1)
Total Common Stock to be Held
Number of
Percentage of
Name of Beneficial
Exchange Shares to
Shares Outstanding
Owner
Be Held (2)
Number of Shares
Amount
Number of Shares
(3)
Directors:
Michael R. Kallet
176,586
37,500
$
300,000
214,086
3.00
%
Patricia D. Caprio
32,935
1,250
10,000
34,185
*
Edward J. Clarke
23,860
3,125
25,000
26,985
*
John E. Haskell
109,557
2,500
20,000
112,057
1.57
%
Rodney D. Kent
62,698
37,500
300,000
100,198
1.40
%
Richard B. Myers
47,964
8,750
70,000
56,714
*
Nancy E. Ryan
730
8,125
65,000
8,855
*
Ralph L. Stevens, M.D.
12,897
37,500
300,000
50,397
*
Gerald N. Volk
21,349
3,125
25,000
24,474
*
Frank O. White, Jr.
33,113
1,875
15,000
34,988
*
John A. Wight, M.D.
11,866
5,000
40,000
16,866
*
Executive Officers Who
Are Not Also
Directors:
Thomas H. Dixon
78,544
2,000
16,000
80,544
1.13
%
Eric E. Stickels
81,020
18,750
150,000
99,770
1.40
%
Total for Directors and
Executive Officers
693,119
167,000
$
1,336,000
860,119
12.06
%
*
Less than 1%.
(1)
Includes proposed subscriptions, if any, by associates.
(2)
Based on information presented in "Beneficial Ownership of Common Stock" assuming an exchange
ratio of 0.9136 at the midpoint of the offering range.
(3)
Based upon 7,134,890 total shares outstanding at the midpoint of the offering range.
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THE CONVERSION AND OFFERING
The Boards of Directors of Oneida Financial Corp. and Oneida Financial, MHC have adopted the
plan of conversion and reorganization. The plan of conversion and reorganization must also be
approved by the eligible depositors of Oneida Savings Bank and the stockholders of Oneida Financial
Corp. A special meeting of depositors and a special meeting of stockholders have been called for
this purpose. The Office of Thrift Supervision has conditionally approved the plan of conversion
and reorganization; however, such approval does not constitute a recommendation or endorsement of
the plan of conversion and reorganization by that agency.
General
The respective Boards of Directors of Oneida Financial, MHC and Oneida Financial Corp. adopted
the plan of conversion and reorganization on February 9, 2010. Pursuant to the plan of conversion
and reorganization, our organization will convert from the mutual holding company form of
organization to the fully stock form. Oneida Financial, MHC, the mutual holding company parent of
Oneida Financial Corp., will be merged into Oneida Financial Corp. (Oneida Financial-New), and
Oneida Financial, MHC will no longer exist. Oneida Financial Corp., which owns 100% of Oneida
Savings Bank, will be merged into a new Maryland corporation named Oneida Financial Corp., with the
new Maryland corporation as the surviving entity. As part of the conversion, the ownership
interest of Oneida Financial, MHC in Oneida Financial Corp. will be offered for sale in the stock
offering. When the conversion is completed, all of the outstanding common stock of Oneida Savings
Bank will be owned by Oneida Financial-New, and all of the outstanding common stock of Oneida
Financial-New will be owned by public stockholders. A diagram of our corporate structure before
and after the conversion is set forth in the Summary of this prospectus.
Under the plan of conversion and reorganization, at the conclusion of the conversion and
offering, each share of Oneida Financial Corp. common stock owned by persons other than Oneida
Financial, MHC will be converted automatically into the right to receive new shares of Oneida
Financial-New common stock determined pursuant to an exchange ratio. The exchange ratio will
ensure that immediately after the exchange of existing shares of Oneida Financial Corp. for new
shares, the public stockholders will own the same aggregate percentage of shares of common stock of
Oneida Financial-New that they owned in Oneida Financial Corp. immediately prior to the conversion,
excluding any shares they purchased in the offering and cash paid in lieu of fractional shares.
Oneida Financial-New intends to retain between $11.1 million and $17.7 million of the net
proceeds of the offering and to invest the balance of the net proceeds in Oneida Savings Bank. The
conversion will be consummated only upon the issuance of at least the minimum number of shares of
our common stock offered pursuant to the plan of conversion and reorganization.
The plan of conversion and reorganization provides that we will offer shares of common stock
for sale in the subscription offering to eligible account holders, our tax-qualified employee
benefit plans, including our employee stock ownership plan and 401(k) plan, supplemental eligible
account holders and other depositors. If all shares are not subscribed for in the subscription
offering, we may, at our discretion, offer common stock for sale in a community offering to members
of the general public, with a preference given in the following order:
(i)
Natural persons residing in the New York counties of Chenango, Cortland,
Herkimer, Lewis, Madison, Oneida, Onondaga, Oswego and Otsego; and
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(ii)
Oneida Financial Corp.'s public stockholders as of [stockholder record date].
We have the right to accept or reject, in whole or in part, any orders to purchase shares of
the common stock received in the community offering. The community offering, if any, may begin at
the same time as, during, or after the subscription offering and must be completed within 45 days
after the completion of the subscription offering unless otherwise extended with the approval of
the Office of Thrift Supervision. See "—Community Offering."
We also may offer for sale shares of common stock not purchased in the subscription or
community offerings through a syndicated community offering to be managed by Stifel, Nicolaus &
Company, Incorporated. For a more complete description of the syndicated community offering, see
"— Syndicated Community Offering" herein.
We determined the number of shares of common stock to be offered in the offering based upon an
independent valuation appraisal of the estimated pro forma market value of Oneida Financial-New.
All shares of common stock to be sold in the offering will be sold at $8.00 per share. Investors
will not be charged a commission to purchase shares of common stock. The independent valuation
will be updated and the final number of the shares of common stock to be issued in the offering
will be determined at the completion of the offering. See "—Stock Pricing and Number of Shares to
be Issued" for more information as to the determination of the estimated pro forma market value of
the common stock.
The following is a brief summary of the conversion and is qualified in its entirety by
reference to the provisions of the plan of conversion and reorganization. A copy of the plan of
conversion and reorganization is available for inspection at each branch office of Oneida Savings
Bank and at the Northeast Regional and the Washington, D.C. offices of the Office of Thrift
Supervision. The plan of conversion and reorganization is also filed as an exhibit to Oneida
Financial, MHC's application to convert from mutual to stock form of which this prospectus is a
part, copies of which may be obtained from the Office of Thrift Supervision. The plan of
conversion and reorganization is also an exhibit to Oneida Financial-New's Registration Statement
on Form S-1, which is accessible on the Securities and Exchange Commission website,
www.sec.gov
.
See "Where You Can Find Additional Information."
Reasons for the Conversion
Our Board of Directors decided to convert to the fully public stock form of ownership and to
conduct the offering at this time to increase our capital position, and to pursue growth and
expansion opportunities. We believe that our conversion to a fully public company and the capital
that we will raise from the sale of our common stock in the offering will facilitate our continued
growth and the successful implementation of our business strategy by:
•
supporting internal growth through increased lending in the communities we serve;
•
improving our capital position during a period of significant economic uncertainty,
especially for the financial services industry;
•
increasing capital to support acquisitions of financial institutions and other
financial services companies, including insurance agencies, as opportunities arise,
although we do not currently have any arrangements or agreements regarding any specific
acquisition transaction;
•
enabling us to enhance existing products and services to meet the needs of our
marketplace;
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•
assisting us in managing interest rate risk; and
•
improving the liquidity of our shares of common stock and enhancing shareholder
returns through more flexible capital management strategies.
As a fully converted stock holding company, we will have greater flexibility in structuring
future mergers and acquisitions, including the form of consideration that we can use to pay for an
acquisition. Our current mutual holding company structure and our relatively small asset size
limit our ability to offer shares of our common stock as consideration for a merger or acquisition
since Oneida Financial, MHC is required to own a majority of our shares of common stock. Potential
sellers often want stock for at least part of the purchase price. Our new stock holding company
structure will enable us to offer stock or cash consideration, or a combination of stock and cash,
and will therefore enhance our ability to compete with other bidders when acquisition opportunities
arise. We do not currently have any agreement or understanding as to any specific acquisition.
We also are undertaking the conversion at this time to reduce the uncertainty to Oneida
Financial Corp. and its stockholders associated with potential changes in applicable statutes,
regulations and policies affecting mutual holding companies. In this regard, recent legislative
proposals would eliminate our primary federal regulator, the Office of Thrift Supervision, and make
the Board of Governors of the Federal Reserve System the exclusive regulator of all holding
companies, including mutual holding companies. The Federal Reserve Board currently does not allow
mutual holding companies to waive the receipt of dividends from their mid-tier holding company
subsidiaries, and any waived dividends would dilute the ownership interests of minority
stockholders in the event of a second-step conversion.
Approvals Required
The affirmative vote of a majority of the total votes eligible to be cast by the depositors of
Oneida Savings Bank is required to approve the plan of conversion and reorganization. By their
approval of the plan of conversion and reorganization, the depositors of Oneida Savings Bank will
also be approving the merger of Oneida Financial, MHC into Oneida Financial Corp. The affirmative
vote of the holders of at least two-thirds of the outstanding shares of common stock of Oneida
Financial Corp. and the affirmative vote of the holders of a majority of the outstanding shares of
common stock of Oneida Financial Corp. held by the public stockholders of Oneida Financial Corp.
are also required to approve the plan of conversion and reorganization. The plan of conversion and
reorganization also must be approved by the Office of Thrift Supervision, which has given its
conditional approval.
Share Exchange Ratio for Current Stockholders
Office of Thrift Supervision regulations provide that in a conversion of a mutual holding
company to fully stock form, the public stockholders will be entitled to exchange their shares for
common stock of the new holding company, provided that the mutual holding company demonstrates to
the satisfaction of the Office of Thrift Supervision that the basis for the exchange is fair and
reasonable. On the effective date of the conversion, each publicly held share of Oneida Financial
Corp. common stock will be automatically converted into the right to receive a number of shares of
Oneida Financial-New common stock. The number of shares of common stock will be determined
pursuant to the exchange ratio, which ensures that the public stockholders will own the same
percentage of common stock in Oneida Financial-New after the conversion as they held in Oneida
Financial Corp. immediately prior to the conversion, exclusive of their purchase of additional
shares of common stock in the offering and their receipt of cash in lieu of fractional exchange
shares. The exchange ratio is not dependent on the market value of the currently outstanding Oneida
Financial Corp. common stock. The exchange ratio is based on the percentage of Oneida Financial
Corp. common stock held by the public, the independent valuation of
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Oneida Financial-New prepared by RP Financial and the number of shares of common stock issued
in the offering. The exchange ratio is expected to range from approximately 0.7766 exchange shares
for each publicly held share of Oneida Financial Corp. at the minimum of the offering range to
1.2083 exchange shares for each publicly held share of Oneida Financial Corp. at the adjusted
maximum of the offering range.
If you are currently a stockholder of Oneida Financial Corp., your existing shares will be
canceled and exchanged for shares of Oneida Financial-New. The number of shares you receive will
be based on the final exchange ratio determined as of the closing of the conversion.
The following table shows how the exchange ratio will adjust, based on the number of shares of
common stock issued in the offering. The table also shows how many shares of Oneida Financial-New
a hypothetical owner of Oneida Financial Corp. common stock would receive in the exchange for 100
shares of Oneida Financial Corp. common stock owned at the closing of the conversion, depending on
the number of shares issued in the offering.
New Shares to be
Exchanged for Existing
Equivalent  Value
Shares to be Sold in
Shares of Oneida
Total Shares of Common
of Shares Based
Shares to be
This Offering
Financial Corp.
Stock to be Issued in
Upon Current Market
Received for 100
Amount
Percent
Amount
Percent
Conversion and Offering
Exchange Ratio
Price (1)
Existing Shares
Minimum
3,346,875
55.19
%
2,717,781
44.81
%
6,064,656
0.7766
$
6.21
77
Midpoint
3,937,500
55.19
3,197,390
44.81
7,134,890
0.9136
7.31
91
Maximum
4,528,125
55.19
3,676,998
44.81
8,205,123
1.0507
8.41
105
15% above Maximum
5,207,344
55.19
4,228,548
44.81
9,435,892
1.2083
9.67
120
(1)
Represents the value of shares of Oneida Financial-New common stock received in the conversion
by a holder of one share of Oneida Financial Corp., at the exchange ratio, assuming the market
price of $8.00 per share.
All currently outstanding options to purchase shares of Oneida Financial Corp. common
stock will expire on April 25, 2010, unless previously exercised.
Exchange of Existing Stockholders' Stock Certificates
The conversion of existing outstanding shares of Oneida Financial Corp. common stock into the
right to receive shares of Oneida Financial-New common stock will occur automatically on the
effective date of the conversion. As soon as practicable after the effective date of the
conversion, our exchange agent will send a transmittal form to each public stockholder of Oneida
Financial Corp. who holds stock certificates. The transmittal forms will contain instructions on
how to exchange stock certificates of Oneida Financial Corp. common stock for stock certificates of
Oneida Financial-New common stock. We expect that stock certificates evidencing shares of Oneida
Financial-New common stock will be distributed within five business days after we receive properly
executed transmittal forms, Oneida Financial Corp. stock certificates and other required documents.
Shares held by public stockholders in street name (such as in a brokerage account) will be
exchanged automatically upon the effective date of the conversion; no transmittal forms will be
mailed relating to these shares.
No fractional shares of Oneida Financial-New common stock will be issued to any public
stockholder of Oneida Financial Corp. when the conversion is completed. For each fractional share
that would otherwise be issued to a stockholder who holds a stock certificate, we will pay by check
an amount equal to the product obtained by multiplying the fractional share interest to which the
holder would otherwise be entitled by the $8.00 offering purchase price per share. Payment for
fractional shares will be made as soon as practicable after the receipt by the exchange agent of
the transmittal forms and the
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surrendered Oneida Financial Corp. stock certificates. If your shares of common stock
are held in street name, you will automatically receive cash in lieu of fractional shares in your
account.
You should not forward your stock certificates until you have received transmittal forms,
which will include forwarding instructions.
After the conversion, stockholders will not receive
shares of Oneida Financial-New common stock and will not be paid dividends on the shares of Oneida
Financial-New common stock until existing certificates representing shares of Oneida Financial
Corp. common stock are surrendered for exchange in compliance with the terms of the transmittal
form. When stockholders surrender their certificates, any unpaid dividends will be paid without
interest. For all other purposes, however, each certificate that represents shares of Oneida
Financial Corp. common stock outstanding at the effective date of the conversion will be considered
to evidence ownership of shares of Oneida Financial-New common stock into which those shares have
been converted by virtue of the conversion.
If a certificate for Oneida Financial Corp. common stock has been lost, stolen or destroyed,
our exchange agent will issue a new stock certificate upon receipt of appropriate evidence as to
the loss, theft or destruction of the certificate, appropriate evidence as to the ownership of the
certificate by the claimant, and appropriate and customary indemnification, which is normally
effected by the purchase of a bond from a surety company at the stockholder's expense.
All shares of Oneida Financial-New common stock that we issue in exchange for existing shares
of Oneida Financial Corp. common stock will be considered to have been issued in full satisfaction
of all rights pertaining to such shares of common stock, subject, however, to our obligation to pay
any dividends or make any other distributions with a record date prior to the effective date of the
conversion that may have been declared by us on or prior to the effective date, and which remain
unpaid at the effective date.
Effects of Conversion on Depositors, Borrowers and Members
Continuity
.
While the conversion is being accomplished, the normal business of Oneida Savings
Bank of accepting deposits and making loans will continue without interruption. Oneida Savings Bank
will continue to be a New York chartered savings bank and will continue to be regulated by the
Federal Deposit Insurance Corporation and the New York State Banking Department. After the
conversion, Oneida Savings Bank will continue to offer existing services to depositors, borrowers
and other customers. The directors serving Oneida Financial Corp. at the time of the conversion
will be the directors of Oneida Financial-New after the conversion.
Effect on Deposit Accounts
.
Pursuant to the plan of conversion and reorganization, each
depositor of Oneida Savings Bank at the time of the conversion will automatically continue as a
depositor after the conversion, and the deposit balance, interest rate and other terms of such
deposit accounts will not change as a result of the conversion. Each such account will be insured
by the Federal Deposit Insurance Corporation to the same extent as before the conversion.
Depositors will continue to hold their existing certificates, passbooks and other evidences of
their accounts.
Effect on Loans
.
No loan outstanding from Oneida Savings Bank will be affected by the
conversion, and the amount, interest rate, maturity and security for each loan will remain as it
was contractually fixed prior to the conversion.
Effect on Voting Rights of Depositors
.
At present, all depositors of Oneida Savings Bank have
voting rights in Oneida Financial, MHC as to all matters requiring depositor action. However,
depositors of Oneida Savings Bank do not generally have voting rights except in certain limited
situations, such as
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the conversion, and the control of Oneida Financial, MHC is vested in its Board of Directors.
Upon completion of the conversion, depositors will no longer have voting rights. Upon completion of
the conversion, all voting rights in Oneida Savings Bank will be vested in Oneida Financial-New as
the sole stockholder of Oneida Savings Bank. The stockholders of Oneida Financial-New will
possess exclusive voting rights with respect to Oneida Financial-New common stock.
Tax Effects
.
We will receive an opinion of counsel or tax advisor with regard to federal and
state income tax consequences of the conversion to the effect that the conversion will not be
taxable for federal or state income tax purposes to Oneida Financial, MHC, Oneida Financial Corp.,
the public stockholders of Oneida Financial Corp., members of Oneida Financial, MHC, eligible
account holders, supplemental eligible account holders, or Oneida Savings Bank. See "—Material
Income Tax Consequences."
Effect on Liquidation Rights
.
Each depositor in Oneida Savings Bank has both a deposit
account in Oneida Savings Bank and a pro rata ownership interest in the net worth of Oneida
Financial, MHC based upon the deposit balance in his or her account. This ownership interest is
tied to the depositor's account and has no tangible market value separate from the deposit account.
This interest may only be realized in the event of a complete liquidation of Oneida Financial, MHC
and Oneida Savings Bank. Any depositor who opens a deposit account obtains a pro rata ownership
interest in Oneida Financial, MHC without any additional payment beyond the amount of the deposit.
A depositor who reduces or closes his or her account receives a portion or all of the balance in
the deposit account but nothing for his or her ownership interest in the net worth of Oneida
Financial, MHC, which is lost to the extent that the balance in the account is reduced or closed.
Consequently, depositors in a stock subsidiary of a mutual holding company normally have no
way of realizing the value of their ownership interest, which has realizable value only in the
unlikely event that Oneida Financial, MHC and Oneida Savings Bank are liquidated. If this occurs,
the depositors of record at that time, as owners, would share pro rata in any residual surplus and
reserves of Oneida Financial, MHC after other claims, including claims of depositors to the amounts
of their deposits, and payments to certain depositors of Oneida Savings Bank under liquidation
accounts that have been established for the benefit of such depositors, are paid.
Under the plan of conversion, however, certain depositors will receive rights in a liquidation
account maintained by Oneida Financial-New representing the amount of (i) Oneida Financial, MHC's
ownership interest in Oneida Financial Corp.'s total stockholders' equity as of the date of the
latest statement of financial condition used in this prospectus plus (ii) the value of the net
assets of Oneida Financial, MHC as of the date of the latest statement of financial condition of
Oneida Financial, MHC prior to the consummation of the conversion (excluding its ownership of
Oneida Financial Corp.).
Oneida Financial-New will continue to hold the liquidation account for the benefit of Eligible
Account Holders and Supplemental Eligible Account Holders who continue to maintain deposits in
Oneida Savings Bank. The liquidation account is also designed to provide payments to depositors of
their liquidation interests in the event of a liquidation of Oneida Financial-New and Oneida
Savings Bank or of Oneida Savings Bank. Pursuant to the rules and regulations of the Office of
Thrift Supervision, a post-conversion merger, consolidation, sale of bulk assets or similar
combination or transaction with another insured savings institution would not be considered a
liquidation and, in such a transaction, the liquidation account would be assumed by the surviving
institution. See "—Liquidation Rights."
Stock Pricing and Number of Shares to be Issued
The plan of conversion and reorganization and federal regulations require that the aggregate
purchase price of the common stock sold in the offering must be based on the appraised pro forma
market
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value of the common stock, as determined by an independent valuation. Oneida Savings Bank and
Oneida Financial Corp. have retained RP Financial to prepare an independent valuation appraisal.
For its services in preparing the initial valuation, RP Financial will receive a fee of $50,000 and
$10,000 for expenses and an additional $5,000 for each valuation update, as necessary. Oneida
Savings Bank and Oneida Financial Corp. have agreed to indemnify RP Financial and its employees and
affiliates against specified losses, including any losses in connection with claims under the
federal securities laws, arising out of its services as independent appraiser, except where such
liability results from its negligence or bad faith.
The independent valuation appraisal considered the pro forma impact of the offering.
Consistent with the Office of Thrift Supervision appraisal guidelines, the appraisal considered
three primary methodologies: the pro forma price-to-book value approach applied to both reported
book value and tangible book value; the pro forma price-to-earnings approach applied to reported
and core earnings; and the pro forma price-to-assets approach. Based on RP Financial's conclusion
that asset size is not a strong determinant of market value, RP Financial did not place significant
weight on the pro forma price-to-assets approach in reaching its conclusions. RP Financial placed
the greatest emphasis on the price-to-earnings and price-to-book approaches in estimating pro forma
market value. The market value ratios applied in these three methodologies were based upon the
current market valuations of the peer group companies, subject to valuation adjustments applied by
RP Financial to account for differences between Oneida Financial Corp. and the peer group.
The independent valuation was prepared by RP Financial in reliance upon the information
contained in this prospectus, including the consolidated financial statements of Oneida Financial
Corp. RP Financial also considered the following factors, among others:
•
the present results and financial condition of Oneida Financial Corp. and the
projected results and financial condition of Oneida Financial-New;
•
the economic and demographic conditions in Oneida Financial Corp.'s existing market
area;
•
certain historical, financial and other information relating to Oneida Financial
Corp., including the diversification of earnings provided by the subsidiaries;
•
a comparative evaluation of the operating and financial characteristics of Oneida
Financial Corp. with those of other similarly situated publicly traded savings
institutions located in New York, Pennsylvania and other states in the Mid-Atlantic and
Northeastern United States;
•
the aggregate size of the offering of the shares of common stock;
•
the impact of the conversion and offering on Oneida Financial Corp.'s stockholders'
equity and earnings potential;
•
the proposed dividend policy of Oneida Financial-New; and
•
the trading market for securities of comparable institutions and general conditions
in the market for such securities.
Included in RP Financial's independent valuation were certain assumptions as to the pro forma
earnings of Oneida Financial-New after the conversion that were utilized in determining the
appraised value. These assumptions included estimated expenses, an assumed after-tax rate of
return of 2.02% for
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the year ended December 31, 2009 on the net offering proceeds and purchases in the open market
of 4% of the common stock issued in the offering by the recognition and retention plan at the $8.00
per share purchase price. See "Pro Forma Data" for additional information concerning these
assumptions. The use of different assumptions may yield different results.
The independent valuation states that as of February 19, 2010, the estimated pro forma market
value, or valuation range, of Oneida Financial-New ranged from a minimum of $48.5 million to a
maximum of $65.6 million, with a midpoint of $57.1 million. The Board of Directors of Oneida
Financial-New decided to offer the shares of common stock for a price of $8.00 per share. The
aggregate offering price of the shares will be equal to the valuation range multiplied by the
percentage of Oneida Financial Corp. common stock owned by Oneida Financial, MHC. The number of
shares offered will be equal to the aggregate offering price of the shares divided by the price per
share. Based on the valuation range, the percentage of Oneida Financial Corp. common stock owned by
Oneida Financial, MHC and the $8.00 price per share, the minimum of the offering range will be
3,346,875 shares, the midpoint of the offering range will be 3,937,500 shares and the maximum of
the offering range will be 4,528,125 shares.
The Board of Directors of Oneida Financial-New reviewed the independent valuation and, in
particular, considered the following:
•
Oneida Financial Corp.'s financial condition and results of operations;
•
comparison of financial performance ratios of Oneida Financial Corp. to those of
other financial institutions of similar size;
•
market conditions generally and in particular for financial institutions; and
•
the historical trading price of the publicly held shares of Oneida Financial Corp.
common stock.
All of these factors are set forth in the independent valuation. The Board of Directors also
reviewed the methodology and the assumptions used by RP Financial in preparing the independent
valuation and believes that such assumptions were reasonable. The offering range may be amended
with the approval of the Office of Thrift Supervision, if required, as a result of subsequent
developments in the financial condition of Oneida Financial Corp. or Oneida Savings Bank or market
conditions generally. In the event the independent valuation is updated to amend the pro forma
market value of Oneida Financial-New to less than $48.5 million or more than $75.5 million, the
appraisal will be filed with the Securities and Exchange Commission by a post-effective amendment
to Oneida Financial-New's registration statement.
The independent valuation is not intended, and must not be construed, as a recommendation of
any kind as to the advisability of purchasing our shares of common stock. RP Financial did not
independently verify our consolidated financial statements and other information that we provided
to them, nor did RP Financial independently value our assets or liabilities. The independent
valuation considers Oneida Savings Bank as a going concern and should not be considered as an
indication of the liquidation value of Oneida Savings Bank. Moreover, because the valuation is
necessarily based upon estimates and projections of a number of matters, all of which may change
from time to time, no assurance can be given that persons purchasing our common stock in the
offering will thereafter be able to sell their shares at prices at or above the $8.00 price per
share.
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Following commencement of the subscription offering, the maximum of the valuation range may be
increased by up to 15%, or up to $75.5 million, without resoliciting subscribers, which will result
in a corresponding increase of up to 15% in the maximum of the offering range to up to 5,207,344
shares, to reflect changes in the market and financial conditions or demand for the shares. We
will not decrease the minimum of the valuation range and the minimum of the offering range without
a resolicitation of subscribers. The subscription price of $8.00 per share will remain fixed. See
"—Limitations on Common Stock Purchases" as to the method of distribution of additional shares to
be issued in the event of an increase in the offering range of up to 5,207,344 shares.
If the update to the independent valuation at the conclusion of the offering results in an
increase in the maximum of the valuation range to more than $75.5 million and a corresponding
increase in the offering range to more than 5,207,344 shares, or a decrease in the minimum of the
valuation range to less than $48.5 million and a corresponding decrease in the offering range to
fewer than 3,346,875 shares, then, after consulting with the Office of Thrift Supervision, we may
terminate the plan of conversion and reorganization, cancel deposit account withdrawal
authorizations and promptly return by check all funds received with interest at Oneida Savings
Bank's passbook savings rate of interest. Alternatively, we may establish a new offering range,
extend the offering period and commence a resolicitation of purchasers or take other actions as
permitted by the Office of Thrift Supervision in order to complete the offering. In the event that
we extend the offering and conduct a resolicitation, purchasers would have the opportunity to
maintain, change or cancel their stock orders within a specified period. If a purchaser does not
respond during the period, his or her stock order will be canceled and payment will be returned
promptly, with interest at Oneida Savings Bank's passbook savings rate, and deposit account
withdrawal authorizations will be canceled. Any single offering extension will not exceed 90 days;
aggregate extensions may not conclude beyond
, 2012, which is two years after the
special meeting of depositors to vote on the conversion. An increase in the number of shares to be
issued in the offering would decrease both a subscriber's ownership interest and Oneida
Financial-New's pro forma earnings and stockholders' equity on a per share basis while increasing
pro forma earnings and stockholders' equity on an aggregate basis. A decrease in the number of
shares to be issued in the offering would increase both a subscriber's ownership interest and
Oneida Financial-New's pro forma earnings and stockholders' equity on a per share basis, while
decreasing pro forma earnings and stockholders' equity on an aggregate basis. For a presentation of
the effects of these changes, see "Pro Forma Data."
Copies of the independent valuation appraisal report of RP Financial and the detailed
memorandum setting forth the method and assumptions used in the appraisal report are available for
inspection at the main office of Oneida Savings Bank and as specified under "Where You Can Find
Additional Information."
Subscription Offering and Subscription Rights
In accordance with the plan of conversion and reorganization, rights to subscribe for shares
of common stock in the subscription offering have been granted in the following descending order of
priority. The filling of all subscriptions that we receive will depend on the availability of
common stock after satisfaction of all subscriptions of all persons having prior rights in the
subscription offering and to the maximum, minimum and overall purchase and ownership limitations
set forth in the plan of conversion and reorganization and as described below under "—Limitations
on Common Stock Purchases."
Priority 1: Eligible Account Holders
.
Each Oneida Savings Bank depositor with aggregate
deposit account balances of $50.00 or more (a "Qualifying Deposit") at the close of business on
December 31, 2008 ( "Eligible Account Holder") will receive, without payment therefor,
nontransferable subscription rights to purchase up to the greater of: (i) $300,000 (37,500 shares)
of our common stock; (ii)
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one-tenth of one percent of the total number of shares of common stock issued in the offering;
or (iii) 15 times the product, rounded down to the nearest whole number, obtained by multiplying
the total number of shares of common stock offered by a fraction, the numerator of which is the
amount of the Qualifying Deposit of the Eligible Account Holder and the denominator is the total
amount of Qualifying Deposits of all Eligible Account Holders, subject to the overall purchase and
ownership limitations. See "—Limitations on Common Stock Purchases." If there are not
sufficient shares available to satisfy all subscriptions, shares will first be allocated so as to
permit each Eligible Account Holder to purchase a number of shares sufficient to make his or her
total allocation equal to the lesser of 100 shares or the number of shares for which he or she
subscribed. Thereafter, unallocated shares will be allocated to each Eligible Account Holder whose
subscription remains unfilled in the proportion that the amount of his or her Qualifying Deposit
bears to the total amount of Qualifying Deposits of all subscribing Eligible Account Holders whose
subscriptions remain unfilled. If an amount so allocated exceeds the amount subscribed for by any
one or more Eligible Account Holders, the excess shall be reallocated among those Eligible Account
Holders whose subscriptions are not fully satisfied until all available shares have been allocated.
To ensure proper allocation of our shares of common stock, each Eligible Account Holder must
list on his or her stock order form all deposit accounts in which he or she has an ownership
interest on December 31, 2008. In the event of oversubscription, failure to list an account could
result in fewer shares being allocated than if all accounts had been disclosed. In the event of an
oversubscription, the subscription rights of Eligible Account Holders who are also directors or
executive officers of Oneida Financial Corp. or their associates will be subordinated to the
subscription rights of other Eligible Account Holders to the extent attributable to their increased
deposits in the twelve months preceding December 31, 2008.
Priority 2: Tax-Qualified Plans
.
Our tax-qualified employee plans, including our employee
stock ownership plan and 401(k) plan, will receive, without payment therefor, nontransferable
subscription rights to purchase up to 10% of the shares of common stock issued in the offering,
although our employee stock ownership plan intends to purchase 4.0% of the shares of common stock
issued in the offering (unless additional purchases are necessary to complete the offering at the
minimum of the offering range). If market conditions warrant, in the judgment of its trustees, the
employee stock ownership plan may elect to purchase shares in the open market following the
completion of the conversion.
Priority 3: Supplemental Eligible Account Holders
.
To the extent that there are sufficient
shares of common stock remaining after satisfaction of subscriptions by Eligible Account Holders
and our tax-qualified employee stock benefit plans, each Oneida Savings Bank depositor with a
Qualifying Deposit at the close of business on March 31, 2010 who is not an Eligible Account Holder
("Supplemental Eligible Account Holder") will receive, without payment therefor, nontransferable
subscription rights to purchase up to the greater of: (i) $300,000 (37,500 shares) of common stock;
(ii) one-tenth of one percent of the total number of shares of common stock issued in the offering;
or (iii) 15 times the product, rounded down to the nearest whole number, obtained by multiplying
the total number of shares of common stock to be offered by a fraction, the numerator of which is
the amount of the Qualifying Deposit of the Supplemental Eligible Account Holder and the
denominator is the total amount of Qualifying Deposits of all Supplemental Eligible Account Holders
subject to the overall purchase and ownership limitations. See "—Limitations on Common Stock
Purchases." If there are not sufficient shares available to satisfy all subscriptions, shares will
be allocated so as to permit each Supplemental Eligible Account Holder to purchase a number of
shares sufficient to make his or her total allocation equal to the lesser of 100 shares of common
stock or the number of shares for which he or she subscribed. Thereafter, unallocated shares will
be allocated to each Supplemental Eligible Account Holder whose subscription remains unfilled in
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the proportion that the amount of his or her Qualifying Deposit bears to the total amount of
Qualifying Deposits of all Supplemental Eligible Account Holders whose subscriptions remain
unfilled.
To ensure proper allocation of common stock, each Supplemental Eligible Account Holder must
list on the stock order form all deposit accounts in which he or she has an ownership interest at
March 31, 2010. In the event of oversubscription, failure to list an account could result in fewer
shares being allocated than if all accounts had been disclosed.
Priority 4: Other Depositors
.
To the extent that there are shares of common stock remaining
after satisfaction of subscriptions by Eligible Account Holders, our tax-qualified employee stock
benefit plans, and Supplemental Eligible Account Holders, each depositor of Oneida Savings Bank as
of the close of business on [SRD] who is not an Eligible Account Holder or Supplemental Eligible
Account Holder ("Other Depositors") will receive, without payment therefor, nontransferable
subscription rights to purchase up to $300,000 (37,500 shares) of common stock or one-tenth of one
percent of the total number of shares of common stock issued in the offering, subject to the
overall purchase and ownership limitations. See "—Limitations on Common Stock Purchases." If there
are not sufficient shares available to satisfy all subscriptions, shares will be allocated so as to
permit each Other Depositor to purchase a number of shares sufficient to make his or her total
allocation equal to the lesser of 100 shares of common stock or the number of shares for which he
or she subscribed. Thereafter, available shares will be allocated in the proportion that the
amount of the subscription of each Other Depositor bears to the total amount of the subscriptions
of all Other Depositors whose subscriptions remain unsatisfied. To ensure proper allocation of
common stock, each Other Depositor must list on the stock order form all deposit accounts in which
he or she had an ownership interest at [SRD]. In the event of oversubscription, failure to list an
account could result in fewer shares being allocated than if all accounts had been disclosed.
Expiration Date
. The subscription offering will expire at _: ___.m., Eastern Time, on
[expiration date], unless extended by us for up to 45 days or such additional periods with the
approval of the Office of Thrift Supervision, if necessary. Subscription rights will expire whether
or not each eligible depositor can be located. We may decide to extend the expiration date of the
subscription offering for any reason, whether or not subscriptions have been received for shares at
the minimum, midpoint or maximum of the offering range. Subscription rights which have not been
exercised prior to the expiration date will become void.
We will not execute orders until at least the minimum number of shares of common stock have
been sold in the offering. If at least 3,346,875 shares have not been sold in the offering within
45 days after [extension date] and the Office of Thrift Supervision has not consented to an
extension, all funds delivered to purchase shares of common stock in the offering will be returned
promptly to the subscribers with interest at Oneida Savings Bank's passbook savings rate and all
deposit account withdrawal authorizations will be canceled. If an extension beyond
,
2010 is granted by the Office of Thrift Supervision, we will resolicit purchasers in the offering
as described under "—Procedures for Purchasing Shares—Expiration Date."
Community Offering
To the extent that shares of common stock remain available for purchase after satisfaction of
all subscriptions of Eligible Account Holders, our tax-qualified employee stock benefit plans,
Supplemental Eligible Account Holders and Other Depositors, we may offer shares pursuant to the
plan of conversion and reorganization to members of the general public in a community offering.
Shares will be offered with the following preferences:
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(i)
Natural persons residing in the New York counties of Chenango, Cortland,
Herkimer, Lewis, Madison, Oneida, Onondaga, Oswego and Otsego;
(ii)
Oneida Financial Corp.'s public stockholders as of [stockholder record date];
and
(iii)
Other members of the general public.
Subscribers in the community offering may purchase up to $300,000 (37,500 shares) of common
stock, subject to the overall purchase and ownership limitations. See "—Limitations on Common
Stock Purchases." The minimum purchase is 25 shares.
The opportunity to purchase shares of common
stock in the community offering category is subject to our right, in our sole discretion, to accept
or reject any such orders, in whole or in part, either at the time of receipt of an order or as
soon as practicable following the expiration date of the offering.
If we do not have sufficient shares of common stock available to fill the orders of natural
persons residing in the New York counties of Chenango, Cortland, Herkimer, Lewis, Madison, Oneida,
Onondaga, Oswego and Otsego, we will allocate the available shares among those persons in a manner
that permits each of them, to the extent possible, to purchase the lesser of 100 shares or the
number of shares subscribed for by such person. Thereafter, unallocated shares will be allocated
among natural persons residing in the counties listed above whose orders remain unsatisfied on an
equal number of shares basis per order. If oversubscription occurs due to the orders of public
stockholders of Oneida Financial Corp. as of [stockholder record date], the allocation procedures
described above will apply to the stock orders of such persons. In the event of an
oversubscription among members of the general public, these same allocation procedures will also
apply. In connection with the allocation process, unless the Office of Thrift Supervision permits
otherwise, orders received for Oneida Financial-New common stock in the community offering will
first be filled up to a maximum of two percent of the shares sold in the offering, and thereafter
any remaining shares will be allocated on an equal number of shares basis per order until all
shares have been allocated.
The term "residing" or "resident" as used in this prospectus means any person who occupies a
dwelling within the New York counties of Chenango, Cortland, Herkimer, Lewis, Madison, Oneida,
Onondaga, Oswego and Otsego, has a present intent to remain within this community for a period of
time, and manifests the genuineness of that intent by establishing an ongoing physical presence
within the community, together with an indication that this presence within the community is
something other than merely transitory in nature. We may utilize deposit or loan records or other
evidence provided to us to decide whether a person is a resident. In all cases, however, the
determination shall be in our sole discretion.
Expiration Date.
The community offering, if any, may begin during or after the subscription
offering, and is currently expected to terminate at the same time as the subscription offering, and
must terminate no more than 45 days following the subscription offering unless further extended
with Office of Thrift Supervision approval. Oneida Financial-New may decide to extend the community
offering for any reason and is not required to give purchasers notice of any such extension unless
such period extends beyond [final expiration date], in which event we will resolicit purchasers in
the offering as described under "—Procedures for Purchasing Shares—Expiration Date."
Syndicated Community Offering
As a final step in the conversion, the plan of conversion and reorganization provides that, if
feasible, all shares of common stock not purchased in the subscription offering and community
offering, may be offered for sale to members of the general public in a syndicated community
offering through a
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syndicate of registered broker-dealers managed by Stifel, Nicolaus & Company, Incorporated.
We expect that the syndicated community offering, if any, will begin as soon as practicable after
termination of the subscription offering and the community offering. We, in our sole discretion,
have the right to reject orders, in whole or in part, received in the syndicated community
offering. Neither Stifel, Nicolaus & Company, Incorporated nor any registered broker-dealer shall
have any obligation to take or purchase any shares of common stock in the syndicated community
offering; however, Stifel, Nicolaus & Company, Incorporated has agreed to use its best efforts in
the sale of shares in any syndicated community offering.
The price at which common stock is sold in the syndicated community offering will be the same
price at which shares are offered and sold in the subscription offering and community offering. No
person may purchase more than $300,000 (37,500 shares) of common stock in the syndicated community
offering, subject to the maximum purchase limitations. See "— Limitations on Common Stock
Purchases."
If a syndicated community offering is held, Stifel, Nicolaus & Company, Incorporated will
serve as sole book running manager. In such capacity, Stifel, Nicolaus & Company, Incorporated may
form a syndicate of other broker-dealers who are Financial Industry Regulatory Authority member
firms. Neither Stifel, Nicolaus & Company, Incorporated nor any registered broker-dealer will have
any obligation to take or purchase any shares of the common stock in the syndicated community
offering. The syndicated community offering will be conducted in accordance with certain
Securities and Exchange Commission rules applicable to best efforts offerings. Generally under
those rules, Stifel, Nicolaus & Company, Incorporated, a broker-dealer, will deposit funds it
receives prior to closing from interested investors into a separate non-interest-bearing bank
account at a bank other than Oneida Savings Bank. The closing of the syndicated community offering
is subject to conditions set forth in an agency agreement among Oneida Financial Corp., Oneida
Financial, MHC and Oneida Savings Bank on one hand and Stifel, Nicolaus & Company, Incorporated on
the other hand. If and when all the conditions for the closing are met, funds for common stock
sold in the syndicated community offering, less fees and commissions payable by us, will be
delivered promptly to us. If the offering is consummated, but some or all of an interested
investor's funds are not accepted by us, those funds will be returned to the interested investor
promptly after closing, without interest. If the offering is not consummated, funds in the account
will be returned promptly, without interest, to the potential investor. Normal customer ticketing
will be used for order placement. In the syndicated community offering, order forms will not be
used.
In the event that we sell common stock in a "stand by" underwritten public offering instead of
a syndicated community offering, we have agreed that Stifel, Nicolaus & Company, Incorporated will
have the right to serve as sole book-running manager. Any underwritten public offering will be
conducted on a firm commitment basis. In such case, the underwriters will purchase all shares of
common stock not sold in the subscription offering or the community offering, if any such shares
are purchased. The aggregate price paid to us by or through the underwriters for the shares of
common stock will be the number of shares sold multiplied by the $8.00 price per share, less the
amount of an underwriting discount as negotiated between us and the underwriters and approved by
the Office of Thrift Supervision and the Financial Industry Regulatory Authority. If we determine
to sell stock in an underwritten public offering, the terms of such offering, including the names
of the underwriters participating in such offering, will be described in a supplement to this
prospectus.
The syndicated community offering or underwritten public offering will be completed within 45
days after the termination of the subscription offering, unless extended by Oneida Savings Bank
with the approval of the Office of Thrift Supervision.
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If for any reason we cannot effect a syndicated community offering or underwritten public
offering of shares of common stock not purchased in the subscription and community offerings, or in
the event that there is an insignificant number of shares remaining unsold after the subscription,
community and syndicated community offerings, we will try to make other arrangements for the sale
of unsubscribed shares, if possible. The Office of Thrift Supervision must approve any such
arrangements.
Limitations on Common Stock Purchases
The plan of conversion and reorganization includes the following limitations on the number of
shares of common stock that may be purchased in the offering:
(i)
No person may purchase fewer than 25 shares ($200) of common stock or more than
37,500 shares ($300,000);
(ii)
Tax qualified employee benefit plans, including our employee stock ownership
plan and 401(k) plan, may purchase in the aggregate up to 10% of the shares of common
stock issued in the offering, including shares issued in the event of an increase in
the offering range of up to 15%;
(iii)
Except for the tax qualified employee stock benefit plans, including our
employee stock ownership plan and 401(k) plan, as described above, no person or entity,
together with associates or persons acting in concert with such person or entity, may
purchase more than 75,000 shares ($600,000) in all categories of the offering combined;
(iv)
Current stockholders of Oneida Financial Corp. are subject to an ownership
limitation. As previously described, current stockholders of Oneida Financial Corp.
will receive shares of Oneida Financial-New common stock in exchange for their existing
shares of Oneida Financial Corp. common stock. The number of shares of common stock
that a stockholder may purchase in the offering, together with associates or persons
acting in concert with such stockholder, when combined with the shares that the
stockholder and his or her associates will receive in exchange for existing Oneida
Financial Corp. common stock, may not exceed 5% of the shares of common stock of Oneida
Financial-New to be issued and outstanding at the completion of the conversion; and
(v)
The maximum number of shares of common stock that may be purchased in all
categories of the offering by executive officers and directors of Oneida Savings Bank
and their associates, in the aggregate, when combined with shares of common stock
issued in exchange for existing shares, may not exceed 25% of the shares issued in the
conversion.
Depending upon market or financial conditions, our Board of Directors, with the approval of
the Office of Thrift Supervision and without further approval of depositors of Oneida Savings Bank,
may decrease or increase the purchase and ownership limitations. If a purchase limitation is
increased, subscribers in the subscription offering who ordered the maximum amount will be given,
and, in our sole discretion, some other large subscribers who through their subscriptions evidence
a desire to purchase the maximum allowable number of shares may be given, the opportunity to
increase their subscriptions up to the then applicable limit. The effect of this type of
resolicitation will be an increase in the number of shares of common stock owned by subscribers who
choose to increase their subscriptions. In the event that the maximum purchase limitation is
increased to 5% of the shares sold in the offering, such limitation may be further increased to
9.99%, provided that orders for Oneida Financial-New common stock exceeding 5% of the shares sold
in the offering shall not exceed in the aggregate 10% of the total shares sold in the offering.
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In the event of an increase in the offering range of up to 5,207,344 shares of common stock,
shares will be allocated in the following order of priority in accordance with the plan of
conversion and reorganization:
(i)
to fill the subscriptions of our tax-qualified employee benefit plans,
including the employee stock ownership plan, for up to 4% of the total number of shares
of common stock issued in the offering;
(ii)
in the event that there is an oversubscription at the Eligible Account Holder,
Supplemental Eligible Account Holder or Other Depositor levels, to fill unfilled
subscriptions of these subscribers according to their respective priorities; and
(iii)
to fill unfilled subscriptions in the community offering, with preference
given first to natural persons residing in the New York counties of Chenango, Cortland,
Herkimer, Lewis, Madison, Oneida, Onondaga, Oswego and Otsego, then to Oneida Financial
Corp.'s public stockholders as of [stockholder record date] and then to members of the
general public.
The term "associate" of a person means:
(i)
any corporation or organization, other than Oneida Financial Corp., Oneida
Savings Bank or a majority-owned subsidiary of Oneida Savings Bank, of which the
person is a senior officer, partner or 10% beneficial stockholder;
(ii)
any trust or other estate in which the person has a substantial beneficial
interest or serves as a trustee or in a similar fiduciary capacity; provided, however,
that for the purposes of subscriptions in the offering and restrictions on the sale of
stock after the conversion, the term "associate" does not include a person who has a
substantial beneficial interest in an employee stock benefit plan of Oneida Savings
Bank, or who is a trustee or fiduciary of such plan, and for purposes of aggregating
total shares that may be held by officers, trustees and directors of Oneida Savings
Bank, Oneida Financial, MHC or Oneida Financial Corp., the term "associate" does not
include any tax-qualified employee stock benefit plan of Oneida Savings Bank; and
(iii)
any blood or marriage relative of the person, who either has the same home as
the person or who is a director or officer of Oneida Financial, MHC, Oneida Financial
Corp. or Oneida Savings Bank.
The term "acting in concert" means:
(i)
knowing participation in a joint activity or interdependent conscious parallel
action towards a common goal whether or not pursuant to an express agreement; or
(ii)
a combination or pooling of voting or other interests in the securities of an
issuer for a common purpose pursuant to any contract, understanding, relationship,
agreement or other arrangement, whether written or otherwise.
A person or company that acts in concert with another person or company ("other party") will
also be deemed to be acting in concert with any person or company who is also acting in concert
with that other party, except that any tax-qualified employee stock benefit plan will not be deemed
to be acting in concert with its trustee or a person who serves in a similar capacity solely for
the purpose of determining
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whether common stock held by the trustee and common stock held by the employee stock benefit
plan will be aggregated.
We have the sole discretion to determine whether prospective purchasers are "associates" or
"acting in concert." Persons having the same address, and persons exercising subscription rights
through qualifying deposits registered at the same address will be deemed to be acting in concert
unless we determine otherwise.
Our directors are not treated as associates of each other solely because of their membership
on the Board of Directors. Common stock purchased in the offering will be freely transferable
except for shares purchased by executive officers and directors of Oneida Financial-New or Oneida
Savings Bank and except as described below. Any purchases made by any associate of Oneida
Financial-New or Oneida Savings Bank for the explicit purpose of meeting the minimum number of
shares of common stock required to be sold in order to complete the offering shall be made for
investment purposes only and not with a view toward redistribution. In addition, under Financial
Industry Regulatory Authority guidelines, members of the Financial Industry Regulatory Authority
and their associates are subject to certain restrictions on transfer of securities purchased in
accordance with subscription rights and to certain reporting requirements upon purchase of these
securities. For a further discussion of limitations on purchases of our shares of common stock at
the time of conversion and thereafter, see "—Certain Restrictions on Purchase or Transfer of Our
Shares after Conversion" and "Restrictions on Acquisition of Oneida Financial-New."
Plan of Distribution; Selling Agent Compensation
To assist in the marketing of our common stock, we have retained Stifel, Nicolaus & Company,
Incorporated, which is a broker-dealer registered with the Financial Industry Regulatory Authority.
Stifel, Nicolaus & Company, Incorporated will assist us on a best efforts basis in the offering by:
(i)
acting as our financial advisor for the conversion and offering;
(ii)
providing administrative services and managing the Stock Information Center;
(iii)
educating our employees regarding the offering;
(iv)
targeting our sales efforts, including assisting in the preparation of
marketing materials; and
(v)
soliciting orders for common stock.
For these services, Stifel, Nicolaus & Company, Incorporated will receive an advisory and
administrative fee of $30,000 and 1% of the dollar amount of all shares of common stock sold in the
subscription and community offerings. No sales fee will be payable to Stifel, Nicolaus & Company,
Incorporated with respect to shares purchased by officers, directors and employees or their
immediate families and shares purchased by our tax-qualified and non-qualified employee benefit
plans. In the event that Stifel, Nicolaus & Company, Incorporated sells common stock through a
group of broker-dealers in a syndicated community offering, it will be paid a fee equal to 1% of
the dollar amount of total shares sold in the syndicated community offering, which fee along with
the fee payable to selected dealers (which will include Stifel, Nicolaus & Company, Incorporated)
shall not exceed 5.5% in the aggregate. Stifel, Nicolaus & Company, Incorporated will serve as
sole book running manager. Alternatively, in the event that Stifel, Nicolaus & Company,
Incorporated sells common stock through a group of broker-dealers in an underwritten public
offering (for which Stifel, Nicolaus & Company, Incorporated will serve as sole
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book running manager), the underwriting discount will not exceed 5.5% of the dollar amount of
total shares sold in such offering. Stifel, Nicolaus & Company, Incorporated also will be
reimbursed for allocable expenses in amount not to exceed $25,000 for the subscription offering and
community offering and $30,000 for the syndicated offering and $75,000 for attorney's fees
(excluding reimbursement for allocable expenses of Stifel, Nicolaus & Company, Incorporated's
counsel).
In the event that we are required to resolicit subscribers for shares of our common stock in
the subscription and community offerings, Stifel, Nicolaus & Company, Incorporated will be required
to provide significant additional services in connection with the resolicitation (including
repeating the services described above), and we shall pay Stifel, Nicolaus & Company, Incorporated
an additional fee for those services that will not exceed $40,000. In the event of a material
delay in the offering, Stifel, Nicolaus & Company, Incorporated also will be reimbursed for
additional allowable expenses in an amount not to exceed $10,000 and additional attorneys' fees in
an amount not to exceed $20,000.
We will indemnify Stifel, Nicolaus & Company, Incorporated against liabilities and expenses,
including legal fees, incurred in connection with certain claims or litigation arising out of or
based upon untrue statements or omissions contained in the offering materials for the common stock,
including liabilities under the Securities Act of 1933, as amended.
Some of our directors and executive officers may participate in the solicitation of offers to
purchase common stock. These persons will be reimbursed for their reasonable out-of-pocket expenses
incurred in connection with the solicitation. Other regular employees of Oneida Savings Bank may
assist in the offering, but only in ministerial capacities, and may provide clerical work in
effecting a sales transaction. No offers or sales may be made by tellers or at the teller
counters. No sales activity will be conducted in a Oneida Savings Bank banking office.
Investment-related questions of prospective purchasers will be directed to executive officers or
registered representatives of Stifel, Nicolaus & Company, Incorporated. Our other employees have
been instructed not to solicit offers to purchase shares of common stock or provide advice
regarding the purchase of common stock. We will rely on Rule 3a4-1 under the Securities Exchange
Act of 1934, as amended, and sales of common stock will be conducted within the requirements of
Rule 3a4-1, so as to permit officers, directors and employees to participate in the sale of common
stock. None of our officers, directors or employees will be compensated in connection with their
participation in the offering.
In addition, we have engaged Stifel, Nicolaus & Company, Incorporated to act as our records
management agent in connection with the conversion and offering. In its role as records management
agent, Stifel, Nicolaus & Company, Incorporated will coordinate with our data processing contacts
and interface with the Stock Information Center to provide records processing and proxy and stock
order services, including but not limited to: consolidation of deposit accounts and vote
calculation; preparation of information for order forms and proxy cards; interfacing with our
financial printer; recording stock order information; and tabulating proxy votes. For these
services, Stifel, Nicolaus & Company, Incorporated will receive a fee of $20,000 (which may be
negotiated in the event unexpected circumstances arise), and we will have made an advance payment
of $10,000 with respect to this fee. We will also reimburse Stifel, Nicolaus & Company,
Incorporated for its reasonable out-of-pocket expenses associated with its acting as information
agent in an amount not to exceed $5,000.
Prospectus Delivery
To ensure that each purchaser receives a prospectus at least 48 hours before the expiration
date of the offering in accordance with Rule 15c2-8 of the Securities Exchange Act of 1934, we may
not mail a prospectus any later than five days prior to the expiration date or hand deliver any
later than two days
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prior to the expiration date. Execution of an order form will confirm receipt of delivery in
accordance with Rule 15c2-8. Order forms will only be distributed with or preceded by a prospectus.
In the syndicated community offering or any underwritten public offering, a prospectus in
electronic format may be made available on the Internet sites or through other online services
maintained by Stifel, Nicolaus & Company, Incorporated or one or more other members of the
syndicate, or by their respective affiliates. In those cases, prospective investors may view
offering terms online and, depending upon the syndicate member, prospective investors may be
allowed to place orders online. The members of the syndicate may agree with us to allocate a
specific number of shares for sale to online brokerage account holders. Any such allocation for
online distributions will be made on the same basis as other allocations.
Other than the prospectus in electronic format, the information on the Internet sites
referenced in the preceding paragraph and any information contained in any other Internet site
maintained by any member of the syndicate is not part of this prospectus or the registration
statement of which this prospectus forms a part, has not been approved and/or endorsed by us or by
Stifel, Nicolaus & Company, Incorporated or any other member of the syndicate in its capacity as
selling agent or syndicate member and should not be relied upon by investors.
Lock-up Agreements
We and our directors and executive officers have agreed not to, directly or indirectly, offer,
sell, transfer, pledge, assign, hypothecate or otherwise encumber any shares of our common stock or
options, warrants or other securities exercisable, convertible or exchangeable for our common stock
during the period commencing with the filing of the registration statement for the offering and
conversion and ending 90 days after completion of the offering and conversion without the prior
written consent of Stifel, Nicolaus & Company, Incorporated. In addition, except for securities
issued pursuant to existing employee benefit plans in accordance with past practices or securities
issued in connection with a merger or acquisition by us, we have agreed not to issue, offer to sell
or sell any shares of our common stock or options, warrants or other securities exercisable,
convertible or exchangeable for our common stock without the prior written consent of Stifel,
Nicolaus & Company, Incorporated for a period of 90 days after completion of the offering and
conversion.
Procedure for Purchasing Shares in the Subscription Offering and Community Offering
Expiration Date
.
The subscription and community offerings will expire at _: ___.m., Eastern
Time, on [expiration date], unless extended for up to 45 days, with the approval of the Office of
Thrift Supervision, if required. This extension may be approved by us, in our sole discretion,
without further approval or notice to purchasers in the offering. Any extension of the subscription
and/or community offering beyond [final expiration date] would require the Office of Thrift
Supervision's approval. If the offering is so extended, or if the offering range is decreased or
is increased above the adjusted maximum of the offering range, we will be required to resolicit
purchasers before proceeding with the offering.
We reserve the right in our sole discretion to terminate the offering at any time and for any
reason, in which case we will cancel any deposit account withdrawal orders and promptly return all
funds submitted, with interest at Oneida Savings Bank's passbook savings rate from the date of
receipt.
Use of Stock Order Forms in the Subscription and Community Offerings
.
In order to purchase
shares of common stock in the subscription and community offerings, you must properly complete and
sign an original stock order form and remit full payment. We are not required to accept orders
submitted on photocopied or facsimiled order forms. All order forms must be received (not
postmarked) prior to _:
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___.m., Eastern Time, on [expiration date]. We are not required to accept order forms that are
not received by that time, are not signed or are otherwise executed defectively or are received
without full payment or without appropriate withdrawal instructions. We are not required to notify
subscribers of incomplete or improperly executed order forms, and we have the right to waive or
permit the correction of incomplete or improperly executed order forms. We do not represent,
however, that we will do so. You may submit your order form and payment by mail using the stock
order reply envelope provided by overnight delivery to the Stock Information Center address noted
on the order form or by bringing your order form to Oneida Savings Bank's main office located at
182 Main Street, Oneida, New York. Stock order forms may not be delivered to Oneida Savings Bank's
other offices. Please do not mail stock order forms to Oneida Savings Bank. Once tendered, an
order form cannot be modified or revoked without our consent. We reserve the absolute right, in
our sole discretion, to reject orders received in the community offering, in whole or in part, at
the time of receipt or at any time prior to completion of the offering. If you are ordering shares
in the subscription offering, you must represent that you are purchasing shares for your own
account and that you have no agreement or understanding with any person for the sale or transfer of
the shares. We have the right to reject any order submitted in the offering by a person who we
believe is making false representations or who we otherwise believe, either alone or acting in
concert with others, is violating, evading, circumventing, or intends to violate, evade or
circumvent the terms and conditions of the plan of conversion. Our interpretation of the terms and
conditions of the plan of conversion and reorganization and of the acceptability of the order forms
will be final.
By signing the order form, you will be acknowledging that the common stock is not a deposit or
savings account and is not federally insured or otherwise guaranteed by Oneida Savings Bank or the
federal government, and that you received a copy of this prospectus. However, signing the order
form will not result in you waiving your rights under the Securities Act of 1933 or the Securities
Exchange Act of 1934.
Payment for Shares
.
Payment for all shares of common stock will be required to accompany all
completed order forms for the purchase to be valid. Payment for shares may be made by:
(i)
personal check, bank check or money order, made payable to Oneida Financial
Corp.; or
(ii)
authorization of withdrawal from the types of Oneida Savings Bank deposit
accounts described on the stock order form.
Appropriate means for designating withdrawals from deposit accounts at Oneida Savings Bank are
provided on the order form. The funds designated must be available in the account(s) at the time
the order form is received. A hold will be placed on these funds, making them unavailable to the
depositor. Funds authorized for withdrawal will continue to earn interest within the account at the
contract rate until the offering is completed, at which time the designated withdrawal will be
made. Interest penalties for early withdrawal applicable to certificate accounts will not apply to
withdrawals authorized for the purchase of shares of common stock; however, if a withdrawal results
in a certificate account with a balance less than the applicable minimum balance requirement, the
certificate will be canceled at the time of withdrawal without penalty and the remaining balance
will earn interest at the current passbook rate subsequent to the withdrawal. In the case of
payments made by personal check, these funds must be available in the account(s). Checks and money
orders will be immediately cashed and placed in a segregated account at Oneida Savings Bank and/or
another insured depository institution and will earn interest at Oneida Savings Bank's passbook
savings rate from the date payment is processed until the offering is completed or terminated.
You may not remit cash, wire transfers, Oneida Savings Bank line of credit checks, or
third-party checks (including those payable to you and endorsed over to Oneida Financial Corp.).
You may not
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designate on your stock order form a direct withdrawal from an Oneida Savings Bank retirement
account. See "—Using IRA Funds to Purchase Shares" for information on using such funds.
Additionally, you may not designate a direct withdrawal from Oneida Savings Bank accounts with
check-writing privileges. Please provide a check instead. If you request direct withdrawal, we
reserve the right to interpret that as your authorization to treat those funds as if we had
received a check for the designated amount, and we will immediately withdraw the amount from your
checking account.
Once we receive your executed stock order form, it may not be modified, amended or rescinded
without our consent, unless the offering is not completed by
, in which event
purchasers may be given the opportunity to increase, decrease or rescind their orders for a
specified period of time.
Regulations prohibit Oneida Savings Bank from lending funds or extending credit to any persons
to purchase shares of common stock in the offering.
We shall have the right, in our sole discretion, to permit institutional investors to submit
irrevocable orders together with the legally binding commitment for payment and to thereafter pay
for the shares of common stock for which they subscribe in the community offering at any time prior
to 48 hours before the completion of the conversion. This payment may be made by wire transfer.
If our employee stock ownership plan purchases shares in the offering, it will not be required
to pay for such shares until consummation of the offering, provided that there is a loan commitment
from an unrelated financial institution or Oneida Financial-New to lend to the employee stock
ownership plan the necessary amount to fund the purchase.
Using IRA Funds
. If you are interested in using your individual retirement account funds to
purchase shares of common stock, you must do so through a self-directed individual retirement
account such as a brokerage firm individual retirement account or those offered by Oneida Savings
Bank's Trust Department. By regulation, Oneida Savings Bank's individual retirement accounts that
were not established through our Trust Department are not self-directed, so they cannot be invested
in our shares of common stock. Therefore, if you wish to use your funds that are currently in an
Oneida Savings Bank individual retirement account, you may not designate on the order form that you
wish funds to be withdrawn from the account for the purchase of common stock. The funds you wish to
use for the purchase of common stock will have to be transferred to a self-directed account
maintained by an independent trustee such as a brokerage firm or Oneida Savings Bank's Trust
Department. There will be no early withdrawal or Internal Revenue Service interest penalties for
these transfers. Depositors interested in using funds in an individual retirement account or any
other retirement account to purchase shares of common stock should contact our Stock Information
Center as soon as possible, preferably at least two weeks prior to the end of the offering period,
because processing such transactions takes additional time, and whether such funds can be used may
depend on limitations imposed by the institutions where such funds are currently held. We cannot
guarantee that you will be able to use such funds.
Delivery of Stock Certificates
.
Certificates representing shares of common stock sold in the
subscription and community offerings will be mailed by first class mail to the persons entitled
thereto at the certificate registration address noted by them on the order form, as soon as
practicable following consummation of the offering and receipt of all necessary regulatory
approvals. Any certificates returned as undeliverable will be held by the transfer agent until
claimed by persons legally entitled thereto or otherwise disposed of in accordance with applicable
law.
Until certificates for the shares of common stock are available and delivered to purchasers,
purchasers may not be able to sell the shares of common stock which they ordered, even though the
common stock will have begun trading.
Your
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ability to sell shares of common stock before you receive stock certificates will depend upon
the arrangements you may make with your brokerage firm.
Other Restrictions
.
Notwithstanding any other provision of the plan of conversion and
reorganization, no person is entitled to purchase any shares of common stock to the extent the
purchase would be illegal under any federal or state law or regulation, including state "blue sky"
regulations, or would violate regulations or policies of the Financial Industry Regulatory
Authority, particularly those regarding free riding and withholding. We may ask for an acceptable
legal opinion from any purchaser as to the legality of his or her purchase and we may refuse to
honor any purchase order if an opinion is not timely furnished. In addition, we are not required
to offer shares of common stock to any person who resides in a foreign country, or in a State of
the United States with respect to which any of the following apply: (i) a small number of persons
otherwise eligible to subscribe for shares under the plan of conversion reside in such state; (ii)
the issuance of subscription rights or the offer or sale of shares of common stock to such persons
would require us, under the securities laws of such state, to register as a broker, dealer,
salesman or agent or to register or otherwise qualify our securities for sale in such state; or
(iii) such registration or qualification would be impracticable for reasons of cost or otherwise.
Restrictions on Transfer of Subscription Rights and Shares
Office of Thrift Supervision regulations prohibit any person with subscription rights,
including the Eligible Account Holders, Supplemental Eligible Account Holders and Other Depositors,
from transferring or entering into any agreement or understanding to transfer the legal or
beneficial ownership of the subscription rights issued under the plan of conversion and
reorganization or the shares of common stock to be issued upon their exercise. These rights may be
exercised only by the person to whom they are granted and only for his or her account. When
registering your stock purchase on the order form, you should not add the name(s) of persons who do
not have subscription rights or who qualify only in a lower purchase priority than you do. Doing
so may jeopardize your subscription rights. Each person exercising subscription rights will be
required to certify that he or she is purchasing shares solely for his or her own account and that
he or she has no agreement or understanding regarding the sale or transfer of such shares. The
regulations also prohibit any person from offering or making an announcement of an offer or intent
to make an offer to purchase subscription rights or shares of common stock to be issued upon their
exercise prior to completion of the offering.
We will pursue any and all legal and equitable remedies in the event we become aware of the
transfer of subscription rights, and we will not honor orders that we believe involve the transfer
of subscription rights.
Stock Information Center
Our banking office personnel may not, by law, assist with investment-related questions about
the offering. If you have any questions regarding the conversion or offering, please call our
Stock Information Center, toll-free, at 1-877-
. The Stock Information Center is open
Monday through Friday between 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center
will be closed on weekends and bank holidays.
Liquidation Rights
Prior to the Conversion
. In the unlikely event that Oneida Financial, MHC is liquidated prior
to the conversion, all claims of creditors of Oneida Financial, MHC would be paid first.
Thereafter, if there were any assets of Oneida Financial, MHC remaining, these assets would be
distributed to certain
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depositors of Oneida Savings Bank. The amount received by such depositors would be equal to
their pro rata interest in the remaining value of Oneida Financial, MHC after claims of creditors,
based on the relative size of their deposit accounts in Oneida Savings Bank.
After the Conversion
. The plan of conversion provides for the establishment, upon the
completion of the conversion, of a liquidation account by Oneida Financial-New for the benefit of
Eligible Account Holders and Supplemental Eligible Account Holders in an amount equal to (i) Oneida
Financial, MHC's ownership interest in Oneida Financial Corp.'s total stockholders' equity as of
the date of the latest statement of financial condition used in this prospectus plus (ii) the value
of the net assets of Oneida Financial, MHC as of the date of the latest statement of financial
condition of Oneida Financial, MHC prior to the consummation of the conversion (excluding its
ownership of Oneida Financial Corp.). The plan of conversion also provides the establishment of a
bank liquidation account at Oneida Savings Bank to support the Oneida Financial-New liquidation
account.
In the unlikely event that Oneida Savings Bank were to liquidate after the conversion, all
claims of creditors, including those of depositors, would be paid first. However, except with
respect to the liquidation account to be established in Oneida Financial-New, a depositor's claim
would be solely for the principal amount of his or her deposit accounts plus accrued interest.
Depositors generally would not have an interest in the value of the assets of Oneida Savings Bank
or Oneida Financial-New above that amount.
The liquidation account established by Oneida Financial-New is designed to provide payments to
depositors of their liquidation interests (exchanged for the liquidation rights such persons had in
Oneida Financial MHC) in the event of a liquidation of Oneida Financial-New and Oneida Savings Bank
or a liquidation solely of Oneida Savings Bank. Specifically, in the unlikely event that either
(i) Oneida Savings Bank or (ii) Oneida Financial-New and Oneida Savings Bank were to liquidate
after the conversion, all claims of creditors, including those of depositors, would be paid first,
followed by distribution to depositors as of December 31, 2008 and March 31, 2010 of their
interests in the liquidation account maintained by Oneida Financial-New. Also, in a complete
liquidation of both entities, or of Oneida Savings Bank alone, when Oneida Financial-New has
insufficient assets (other than the stock of Oneida Savings Bank) to fund its obligation under the
liquidation account due to Eligible Account Holders and Supplemental Eligible Account Holders and
Oneida Savings Bank has positive net worth, Oneida Savings Bank is required to make a distribution
to fund Oneida Financial-New's remaining obligations under the liquidation account. If Oneida
Financial-New is completely liquidated or sold apart from a sale or liquidation of Oneida Savings
Bank, then the Oneida Financial-New liquidation account will cease to exist and Eligible Account
Holders and Supplemental Eligible Account Holders will receive an equivalent interest in the
liquidation account maintained in Oneida Savings Bank, subject to the same rights and terms as the
Oneida Financial-New liquidation account.
Pursuant to the plan of conversion, after two years from the date of conversion and upon the
written request of the Office of Thrift Supervision Oneida Financial-New will transfer the
liquidation account and the depositors' interests in such account to Oneida Savings Bank and the
liquidation account shall thereupon become the liquidation account of Oneida Savings Bank. The
liquidation account also may be transferred to Oneida Savings Bank at the discretion of the board
of directors of Oneida Financial-New no earlier than two years after the conversion.
Under the rules and regulations of the Office of Thrift Supervision, a post-conversion merger,
consolidation, or similar combination or transaction with another depository institution in which
Oneida Financial-New or Oneida Savings Bank is not the surviving institution would not be
considered a liquidation. In such a transaction, the liquidation account would be assumed by the
surviving institution.
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Each Eligible Account Holder and Supplemental Eligible Account Holder would have an initial
interest in the liquidation account for each deposit account, including savings accounts,
transaction accounts such as negotiable order of withdrawal accounts, money market deposit
accounts, and certificates of deposit, with a balance of $50 or more held in Oneida Savings Bank on
December 31, 2008, or March 31, 2010 the proportion that the balance of each such Eligible Account
Holders and Supplemental Eligible Account Holders deposit account on December 31, 2008, and March
31, 2010, respectively, bears to the balance of all deposit accounts of Eligible Account Holders
and Supplemental Eligible Account Holders in Oneida Savings Bank on such dates.
If, however, on any December 31 annual closing date commencing after the effective date of the
conversion, the amount in any such deposit account is less than the amount in the deposit account
on December 31, 2008 or March 31, 2010 or any other annual closing date, then the interest in the
liquidation account relating to such deposit account would be reduced from time to time by the
proportion of any such reduction, and such interest will cease to exist if such deposit account is
closed. In addition, no interest in the liquidation account would ever be increased despite any
subsequent increase in the related deposit account. Payment pursuant to liquidation rights of
Eligible Account Holders and Supplemental Eligible Account Holders would be separate and apart from
the payment of any insured deposit accounts to such depositor. Any assets remaining after the above
liquidation rights of Eligible Account Holders and Supplemental Eligible Account Holders are
satisfied would be available for distribution to stockholders.
Material Income Tax Consequences
Completion of the conversion is subject to the prior receipt of an opinion of counsel or tax
advisor with respect to federal and state income tax consequences of the conversion to Oneida
Financial, MHC, Oneida Financial Corp., Oneida Savings Bank, Eligible Account Holders, Supplemental
Eligible Account Holders and Other Depositors of Oneida. Unlike private letter rulings, opinions
of counsel or tax advisors are not binding on the Internal Revenue Service or any state taxing
authority, and such authorities may disagree with such opinions. In the event of such disagreement,
there can be no assurance that Oneida Financial-New or Oneida Savings Bank would prevail in a
judicial proceeding.
Oneida Financial, MHC, Oneida Financial Corp., Oneida Savings Bank and Oneida Financial-New
have received an opinion of counsel, Luse Gorman Pomerenk & Schick, P.C., regarding all of the
material federal income tax consequences of the conversion, which includes the following:
1.
The merger of Oneida Financial, MHC with and into Oneida Financial Corp. will
qualify as a tax-free reorganization within the meaning of Section 368(a)(1)(A) of the
Internal Revenue Code.
2.
The constructive exchange of Eligible Account Holders' and Supplemental
Eligible Account Holders' liquidation interests in Oneida Financial, MHC for
liquidation interests in Oneida Financial Corp. will satisfy the continuity of interest
requirement of Section 1.368-1(b) of the Federal Income Tax Regulations.
3.
None of Oneida Financial, MHC, Oneida Savings Bank, Eligible Account Holders
nor Supplemental Eligible Account Holders, will recognize any gain or loss on the
transfer of the assets of Oneida Financial, MHC to Oneida Financial Corp. in
constructive exchange for liquidation interests established in Oneida Financial Corp.
for the benefit of such persons who remain depositors or borrowers of Oneida Savings
Bank.
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4.
The basis of the assets of Oneida Financial, MHC and the holding period of such
assets to be received by Oneida Financial Corp. will be the same as the basis and
holding period in such assets in the hands of Oneida Financial, MHC immediately before
the exchange. (Sections 362(b) and 1223(2) of the Internal Revenue Code.)
5.
The merger of Oneida Financial Corp. with and into Oneida Financial-New will
constitute a mere change in identity, form or place of organization within the meaning
of Section 368(a)(1)(F) of the Code and therefore will qualify as a tax-free
reorganization within the meaning of Section 368(a)(1)(F) of the Code. Neither Oneida
Financial Corp. nor Oneida Financial-New will recognize gain or loss as a result of
such merger. (Sections 361(a) and 1032(a) of the Internal Revenue Code).
6.
The basis of the assets of Oneida Financial Corp. and the holding period of
such assets to be received by Oneida Financial-New will be the same as the basis and
holding period in such assets in the hands of Oneida Financial Corp. immediately before
the exchange. (Sections 362(b) and 1223(2) of the Internal Revenue Code.)
7.
Current stockholders of Oneida Financial Corp. will not recognize any gain or
loss upon their constructive exchange of Oneida Financial Corp. common stock for Oneida
Financial-New common stock.
8.
Eligible Account Holders and Supplemental Eligible Account Holders will not
recognize any gain or loss upon their constructive exchange of their liquidation
interests in Oneida Financial Corp. for the liquidation accounts in Oneida
Financial-New.
9.
The constructive exchange of the Eligible Account Holders and Supplemental
Eligible Account Holders liquidation interests in Oneida Financial Corp. for interests
in a liquidation account established in Oneida Financial-New will satisfy the
continuity of interest requirement of Section 1.368-1(b) of the Federal Income Tax
Regulations.
10.
Each stockholder's aggregate basis in shares of Oneida Financial-New common
stock (including fractional share interests) received in the exchange will be the same
as the aggregate basis of Oneida Financial Corp. common stock surrendered in the
exchange.
11.
Each stockholder's holding period in his or her Oneida Financial-New common
stock received in the exchange will include the period during which the Oneida
Financial Corp. common stock surrendered was held, provided that the Oneida Financial
Corp. common stock surrendered is a capital asset in the hands of the stockholder on
the date of the exchange.
12.
Cash received by any current stockholder of Oneida Financial Corp. in lieu of a
fractional share interest in shares of Oneida Financial-New common stock will be
treated as having been received as a distribution in full payment in exchange for a
fractional share interest of Oneida Financial-New common stock, which such stockholder
would otherwise be entitled to receive. Accordingly, a stockholder will recognize gain
or loss equal to the difference between the cash received and the basis of the
fractional share. If the common stock is held by the stockholder as a capital asset,
the gain or loss will be capital gain or loss.
13.
It is more likely than not that the fair market value of the nontransferable
subscription rights to purchase Oneida Financial-New common stock is zero. Accordingly,
no gain or
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loss will be recognized by Eligible Account Holders, Supplemental Eligible Account
Holders or Other Depositors upon distribution to them of nontransferable
subscription rights to purchase shares of Oneida Financial-New common stock.
Eligible Account Holders, Supplemental Eligible Account Holders and Other Depositors
will not realize any taxable income as the result of the exercise by them of the
nontransferable subscriptions rights.
14.
It is more likely than not that the fair market value of the benefit provided
by the liquidation account of Oneida Savings Bank supporting the payment of the Oneida
Financial-New liquidation account in the event Oneida Financial-New lacks sufficient
net assets is zero. Accordingly, it is more likely than not that no gain or loss will
be recognized by Eligible Account Holders and Supplemental Eligible Account Holders
upon the constructive distribution to them of such rights in the Oneida Savings Bank
liquidation account as of the effective date of the merger of Oneida Financial Corp.
with and into Oneida Financial-New (Section 356(a) of the Code.).
15.
It is more likely than not that the basis of the shares of Oneida Financial-New
common stock purchased in the offering by the exercise of nontransferable subscription
rights will be the purchase price. The holding period of the Oneida Financial-New
common stock purchased pursuant to the exercise of nontransferable subscription rights
will commence on the date on which the right to acquire such stock was exercised.
16.
No gain or loss will be recognized by Oneida Financial-New on the receipt of
money in exchange for Oneida Financial-New common stock sold in the offering.
We believe that the tax opinions summarized above address all material federal income tax
consequences that are generally applicable to Oneida Financial, MHC, Oneida Financial Corp., Oneida
Savings Bank, Oneida Financial-New and persons receiving subscription rights and shareholders of
Oneida Financial Corp. With respect to items 8 and 13 above, Luse Gorman Pomerenk & Schick, P.C.
noted that the subscription rights will be granted at no cost to the recipients, are legally
non-transferable and of short duration, and will provide the recipient with the right only to
purchase shares of common stock at the same price to be paid by members of the general public in
any community offering. The firm further noted that RP Financial, LC. has issued a letter that the
subscription rights have no ascertainable fair market value. The firm also noted that the Internal
Revenue Service has not in the past concluded that subscription rights have value. Based on the
foregoing, Luse Gorman Pomerenk & Schick, P.C. believes that it is more likely than not that the
nontransferable subscription rights to purchase shares of common stock have no value. However, the
issue of whether or not the nontransferable subscription rights have value is based on all the
facts and circumstances. If the subscription rights granted to Eligible Account Holders,
Supplemental Eligible Account Holders and Other Depositors are deemed to have an ascertainable
value, receipt of these rights could result in taxable gain to those Eligible Account Holders,
Supplemental Eligible Account Holders and Other Depositors who exercise the subscription rights in
an amount equal to the ascertainable value, and we could recognize gain on a distribution. Eligible
Account Holders, Supplemental Eligible Account Holders and Other Depositors are encouraged to
consult with their own tax advisors as to the tax consequences in the event that subscription
rights are deemed to have an ascertainable value.
The opinion as to item 14 above is based on the position that: (i) no holder of an interest
in a liquidation account has ever received a payment attributable to a liquidation account; (ii)
the interests in the liquidation accounts are not transferable; (iii) the amounts due under the
liquidation account with respect to each Eligible Account Holder, Supplemental Eligible Account
Holder will be reduced as their deposits in Oneida Savings Bank are reduced; and (iv) the Oneida
Savings Bank liquidation account payment obligation arises only if Oneida Financial-New lacks
sufficient net assets to fund the liquidation account.
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In addition, we have received a letter from RP Financial, LC. stating its belief that the
benefit provided by the Oneida Savings Bank liquidation account supporting the payment of the
liquidation account in the event Oneida Financial-New lacks sufficient net assets does not have any
economic value at the time of the conversion. Based on the foregoing, Luse Gorman Pomerenk &
Schick, P.C. believes it is more likely than not that such rights in the Oneida Savings Bank
liquidation account have no value. If such rights are subsequently found to have an economic
value, income may be recognized by each Eligible Account Holder or Supplemental Eligible Account
Holder in the amount of such fair market value as of the date of the conversion.
The opinion of Luse Gorman Pomerenk & Schick, P.C., unlike a letter ruling issued by the
Internal Revenue Service, is not binding on the Internal Revenue Service and the conclusions
expressed therein may be challenged at a future date. The Internal Revenue Service has issued
favorable rulings for transactions substantially similar to the proposed reorganization and stock
offering, but any such ruling may not be cited as precedent by any taxpayer other than the taxpayer
to whom the ruling is addressed. We do not plan to apply for a letter ruling concerning the
transactions described herein.
We have also received an opinion from Crowe Horwath LLP that the New York state income tax
consequences are consistent with the federal income tax consequences.
The federal and state tax opinions have been filed with the Securities and Exchange Commission
as an exhibit to Oneida Financial-New's registration statement. See "Where You Can Find Additional
Information."
Certain Restrictions on Purchase or Transfer of Our Shares after Conversion
All shares of common stock purchased in the offering by a director or an executive officer of
Oneida Savings Bank generally may not be sold for a period of one year following the closing of the
conversion, except in the event of the death of the director or executive officer. Each certificate
for restricted shares will bear a legend giving notice of this restriction on transfer, and
instructions will be issued to the effect that any transfer within this time period of any
certificate or record ownership of the shares other than as provided above is a violation of the
restriction. Any shares of common stock issued at a later date as a stock dividend, stock split, or
otherwise, with respect to the restricted stock will be similarly restricted. The directors and
executive officers of Oneida Financial-New also will be restricted by the insider trading rules
under the Securities Exchange Act of 1934.
Purchases of shares of our common stock by any of our directors, executive officers and their
associates, during the three-year period following the closing of the conversion may be made only
through a broker or dealer registered with the Securities and Exchange Commission, except with the
prior written approval of the Office of Thrift Supervision. This restriction does not apply,
however, to negotiated transactions involving more than 1% of our outstanding common stock or to
purchases of our common stock by our stock option plan or any of our tax-qualified employee stock
benefit plans or non-tax-qualified employee stock benefit plans, including any restricted stock
plans.
Office of Thrift Supervision regulations prohibit Oneida Financial-New from repurchasing its
shares of common stock during the first year following conversion unless compelling business
reasons exist for such repurchases. After one year, the Office of Thrift Supervision does not
impose any repurchase restrictions.
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COMPARISON OF STOCKHOLDERS' RIGHTS FOR EXISTING STOCKHOLDERS OF ONEIDA FINANCIAL CORP.
General.
As a result of the conversion, existing stockholders of Oneida Financial Corp. will
become stockholders of Oneida Financial-New. There are differences in the rights of stockholders
of Oneida Financial Corp. and stockholders of Oneida Financial-New caused by differences between
federal and Maryland law and regulations and differences in Oneida Financial Corp.'s federal stock
charter and bylaws and the Maryland articles of incorporation and bylaws of Oneida Financial-New.
This discussion is not intended to be a complete statement of the differences affecting the
rights of stockholders, but rather summarizes the material differences and similarities affecting
the rights of stockholders. See "Where You Can Find Additional Information" for procedures for
obtaining a copy of Oneida Financial-New's articles of incorporation and bylaws.
Authorized Capital Stock.
The authorized capital stock of Oneida Financial Corp. consists of
20,000,000 shares of common stock, $0.10 par value per share, and 1,000,000 shares of serial
preferred stock.
The authorized capital stock of Oneida Financial-New consists of 30,000,000 shares of common
stock, $0.01 par value per share, and 10,000,000 shares of preferred stock, par value $0.01 per
share.
Under the Maryland General Corporation Law and the articles of incorporation of Oneida
Financial-New, the board of directors may increase or decrease the number of authorized shares
without stockholder approval. Stockholder approval is required to increase or decrease the number
of authorized shares of Oneida Financial Corp.
The charter of Oneida Financial Corp. and the articles of incorporation of
Oneida Financial-New authorize the board of directors to establish one or more series of preferred
stock and, for any series of preferred stock, to determine the terms and rights of the series,
including voting rights, dividend rights, conversion and redemption rates and liquidation
preferences. As a result of the ability to fix voting rights for a series of preferred stock, our
board of directors has the power, to the extent consistent with its fiduciary duty, to issue a
series of preferred stock to persons friendly to management in order to attempt to block a hostile
tender offer, merger or other transaction by which a third party seeks control. We currently have
no plans for the issuance of additional shares for such purposes.
Issuance of Capital Stock.
Pursuant to applicable laws and regulations, Oneida Financial, MHC
is required to own not less than a majority of the outstanding shares of Oneida Financial Corp.
common stock. Oneida Financial, MHC will no longer exist following consummation of the conversion.
The articles of incorporation of Oneida Financial-New do not contain restrictions on the
issuance of shares of capital stock to directors, officers or controlling persons, whereas Oneida
Financial Corp.'s stock charter restricts such issuances to general public offerings, or to
directors for qualifying shares, unless the share issuance or the plan under which they would
generally be issued has been approved by the stockholders. However, stock-based compensation plans,
such as stock option plans and restricted stock plans, would have to be submitted for approval by
Oneida Financial-New stockholders due to requirements of the Nasdaq Stock Market and in order to
qualify stock options for favorable federal income tax treatment.
Voting Rights.
Neither Oneida Financial Corp.'s stock charter or bylaws nor the articles of
incorporation or bylaws of Oneida Financial-New provide for cumulative voting for the election of
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directors. For additional information regarding voting rights, see "—Limitations on Voting Rights
of Greater-than-10% Stockholders" below.
Payment of Dividends.
Oneida Financial Corp.'s ability to pay dividends depends, to a large
extent, upon Oneida Savings Bank's ability to pay dividends to Oneida Financial Corp., and the
ability of Oneida Savings Bank to pay dividends to Oneida Financial Corp. is restricted by New York
laws. Under New York Banking Law, dividends may be paid by Oneida Savings Bank only out of net
profits. A dividend may not be declared or paid if there is any impairment of capital stock.
Dividends may also not be declared or paid if Oneida Savings Bank is in default in payment of any
assessment due to the Federal Deposit Insurance Corporation.
The same restrictions will apply to Oneida Savings Bank's payment of dividends to Oneida
Financial-New. In addition, Maryland law generally provides that Oneida Financial-New is limited
to paying dividends in an amount equal to its capital surplus over payments that would be owed upon
dissolution to stockholders whose preferential rights upon dissolution are superior to those
receiving the dividend, and to an amount that would not make it insolvent.
Board of Directors
.
Oneida Financial Corp.'s bylaws and the articles of incorporation and
bylaws of Oneida Financial-New require the board of directors to be divided into three classes and
that the members of each class shall be elected for a term of three years and until their
successors are elected and qualified, with one class being elected annually.
Under Oneida Financial Corp.'s bylaws, any vacancies on the board of directors of Oneida
Financial Corp. may be filled by the affirmative vote of a majority of the remaining directors
although less than a quorum of the board of directors. Persons elected by the board of directors of
Oneida Financial Corp. to fill vacancies may only serve until the next election of directors by
stockholders. Under the bylaws of Oneida Financial-New, any vacancy occurring on the board of
directors, including any vacancy created by reason of an increase in the number of directors, may
be filled only by the affirmative vote of two-thirds of the remaining directors, and any director
so chosen shall hold office for the remainder of the term to which the director has been elected
and until his or her successor is elected and qualified.
Under Oneida Financial Corp.'s bylaws, any director may be removed for cause by the holders of
a majority of the outstanding voting shares. The articles of incorporation of Oneida Financial-New
provide that any director may be removed for cause by the holders of at least a majority of the
outstanding voting shares of Oneida Financial-New.
Limitations on Liability.
The charter and bylaws of Oneida Financial Corp. do not limit the
personal liability of directors or officers.
The articles of incorporation of Oneida Financial-New provide that directors and officers will not be
personally liable for monetary damages to Oneida Financial-New for certain actions as directors or officers,
except for (i) receipt of an improper personal benefit from their positions as directors or officers, (ii)
actions or omissions that are determined to have involved active and deliberate dishonesty, or
(iii) to the extent allowed by Maryland law. These provisions might, in certain instances,
discourage or deter stockholders or management from bringing a lawsuit against directors or officers for a
breach of their duties even though such an action, if successful, might benefit Oneida
Financial-New.
Indemnification of Directors, Officers, Employees and Agents.
Under current Office of Thrift
Supervision regulations, Oneida Financial Corp. shall indemnify its directors, officers and
employees for any costs incurred in connection with any litigation involving such person's
activities as a director, officer or employee if such person obtains a final judgment on the merits
in his or her favor. In addition,
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indemnification is permitted in the case of a settlement, a final judgment against such person, or
final judgment other than on the merits, if a majority of disinterested directors determines that
such person was acting in good faith within the scope of his or her employment as he or she could
reasonably have perceived it under the circumstances and for a purpose he or she could reasonably
have believed under the circumstances was in the best interests of Oneida Financial Corp. or its
stockholders. Oneida Financial Corp. also is permitted to pay ongoing expenses incurred by a
director, officer or employee if a majority of disinterested directors concludes that such person
may ultimately be entitled to indemnification. Before making any indemnification payment, Oneida
Financial Corp. is required to notify the Office of Thrift Supervision of its intention, and such
payment cannot be made if the Office of Thrift Supervision objects to such payment.
The articles of incorporation of Oneida Financial-New provide that it shall indemnify its
current and former directors and officers to the fullest extent required or permitted by Maryland
law, including the advancement of expenses. Maryland law allows Oneida Financial-New to indemnify
any person for expenses, liabilities, settlements, judgments and fines in suits in which such
person has been made a party by reason of the fact that he or she is or was a director, officer or
employee of Oneida Financial-New. No such indemnification may be given if the acts or omissions of
the person are adjudged to be in bad faith and material to the matter giving rise to the
proceeding, if such person is liable to the corporation for an unlawful distribution, or if such
person personally received a benefit to which he or she was not entitled. The right to
indemnification includes the right to be paid the expenses incurred in advance of final disposition
of a proceeding.
Special Meetings of Stockholders.
Oneida Financial Corp.'s bylaws provide that special
meetings of Oneida Financial Corp.'s stockholders may be called by the Chairman, the president, a
majority of the members of the board of directors or the holders of not less than one-tenth of the
outstanding capital stock of Oneida Financial Corp. entitled to vote at the meeting. The bylaws of
Oneida Financial-New provide that special meetings of the stockholders of Oneida Financial-New may
be called by the president, by a majority vote of the total authorized directors, or upon the
written request of stockholders entitled to cast at least a majority of all votes entitled to vote
at the meeting.
Stockholder Nominations and Proposals.
Oneida Financial Corp.'s bylaws provide that
stockholders may submit nominations for election of directors at an annual meeting of stockholders
and may propose any new business to be taken up at such a meeting by filing the proposal in writing
with Oneida Financial Corp. at least five days before the date of any such meeting.
The bylaws of Oneida Financial-New provide that any stockholder desiring to make a nomination
for the election of directors or a proposal for new business at a meeting of stockholders must
submit written notice to Oneida Financial-New at least 80 days prior and not earlier than 90 days
prior to such meeting. However, if less than 90 days' notice or prior public disclosure of the
date of the meeting is given to stockholders, such written notice must be submitted by a
stockholder not later than the tenth day following the day on which notice of the meeting was
mailed to stockholders or such public disclosure was made.
Management believes that it is in the best interests of Oneida Financial-New and its
stockholders to provide sufficient time to enable management to disclose to stockholders
information about a dissident slate of nominations for directors. This advance notice requirement
may also give management time to solicit its own proxies in an attempt to defeat any dissident
slate of nominations, should management determine that doing so is in the best interests of
stockholders generally. Similarly, adequate advance notice of stockholder proposals will give
management time to study such proposals and to determine whether to recommend to the stockholders
that such proposals be adopted. In certain instances, such
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provisions could make it more difficult to oppose management's nominees or proposals, even if
stockholders believe such nominees or proposals are in their best interests.
Stockholder Action Without a Meeting.
The bylaws of Oneida Financial Corp. provide that any
action to be taken or which may be taken at any annual or special meeting of stockholders may be
taken if a consent in writing, setting forth the actions so taken, is given by the holders of all
outstanding shares entitled to vote. The bylaws of Oneida Financial-New do not provide for action
to be taken by stockholders without a meeting. Under Maryland law, action may be taken by
stockholders without a meeting if all stockholders entitled to vote on the action consent to taking
such action without a meeting.
Stockholder's Right to Examine Books and Records.
A federal regulation, which is applicable to
Oneida Financial Corp., provides that stockholders may inspect and copy specified books and records
after proper written notice for a proper purpose. Maryland law provides that a stockholder may
inspect a company's bylaws, stockholder minutes, annual statement of affairs and any voting trust
agreements. However, only a stockholder or group of stockholders who together, for at least six
months, hold at least 5% of the company's total shares, have the right to inspect a company's stock
ledger, list of stockholders and books of accounts.
Limitations on Voting Rights of Greater-than-10% Stockholders.
The articles of incorporation
of Oneida Financial-New provide that no beneficial owner, directly or indirectly, of more than 10%
of the outstanding shares of common stock will be permitted to vote any shares in excess of such
10% limit. Oneida Financial Corp.'s charter does not provide such a limit on voting common stock.
In addition, Office of Thrift Supervision regulations provide that for a period of three years
following the date of the completion of the offering, no person, acting singly or together with
associates in a group of persons acting in concert, may directly or indirectly offer to acquire or
acquire the beneficial ownership of more than 10% of a class of Oneida Financial-New's equity
securities without the prior written approval of the Office of Thrift Supervision. Where any person
acquires beneficial ownership of more than 10% of a class of Oneida Financial-New's equity
securities without the prior written approval of the Office of Thrift Supervision, the securities
beneficially owned by such person in excess of 10% may not be voted by any person or counted as
voting shares in connection with any matter submitted to the stockholders for a vote, and will not
be counted as outstanding for purposes of determining the affirmative vote necessary to approve any
matter submitted to the stockholders for a vote.
Mergers, Consolidations and Sales of Assets.
A federal regulation applicable to Oneida
Financial Corp. generally requires the approval of two-thirds of the board of directors of Oneida
Financial Corp. and the holders of two-thirds of the outstanding stock of Oneida Financial Corp.
entitled to vote thereon for mergers, consolidations and sales of all or substantially all of
Oneida Financial Corp.'s assets. Such regulation permits Oneida Financial Corp. to merge with
another corporation without obtaining the approval of its stockholders if:
(i)
it does not involve an interim savings institution;
(ii)
Oneida Financial Corp.'s federal stock charter is not changed;
(iii)
each share of Oneida Financial Corp.'s stock outstanding immediately prior to
the effective date of the transaction will be an identical outstanding share or a
treasury share of Oneida Financial Corp. after such effective date; and
(iv)
either:
(a)
no shares of voting stock of Oneida Financial Corp. and no
securities convertible into such stock are to be issued or delivered under the
plan of combination; or
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(b)
the authorized but unissued shares or the treasury shares of
voting stock of Oneida Financial Corp. to be issued or delivered under the plan
of combination, plus those initially issuable upon conversion of any securities
to be issued or delivered under such plan, do not exceed 15% of the total shares of voting stock of Oneida Financial Corp. outstanding immediately prior
to the effective date of the transaction.
Under Maryland law, as may be made applicable by the board of directors of Oneida
Financial-New pursuant to its bylaws, "business combinations" between Oneida Financial-New and an
interested stockholder or an affiliate of an interested stockholder are prohibited for five years
after the most recent date on which the interested stockholder becomes an interested stockholder.
These business combinations include a merger, consolidation, statutory share exchange or, in
circumstances specified in the statute, certain transfers of assets, certain stock issuances and
transfers, liquidation plans and reclassifications involving interested stockholders and their
affiliates or issuance or reclassification of equity securities. Maryland law defines an interested
stockholder as: (i) any person who beneficially owns 10% or more of the voting power of Oneida
Financial-New's voting stock after the date on which Oneida Financial-New had 100 or more
beneficial owners of its stock; or (ii) an affiliate or associate of Oneida Financial-New at any
time after the date on which Oneida Financial-New had 100 or more beneficial owners of its stock
who, within the two-year period prior to the date in question, was the beneficial owner of 10% or
more of the voting power of the then-outstanding voting stock of Oneida Financial-New. A person is
not an interested stockholder under the statute if the board of directors approved in advance the
transaction by which the person otherwise would have become an interested stockholder. However, in
approving a transaction, the board of directors may provide that its approval is subject to
compliance, at or after the time of approval, with any terms and conditions determined by the
board.
After the five-year prohibition, any business combination between Oneida Financial-New and an
interested stockholder generally must be recommended by the board of directors of Oneida
Financial-New and approved by the affirmative vote of at least: (i) 80% of the votes entitled to be
cast by holders of outstanding shares of voting stock of Oneida Financial-New; and (ii) two-thirds
of the votes entitled to be cast by holders of voting stock of Oneida Financial-New other than
shares held by the interested stockholder with whom or with whose affiliate the business
combination is to be effected or held by an affiliate or associate of the interested stockholder.
These super-majority vote requirements do not apply if Oneida Financial-New's common stockholders
receive a minimum price, as defined under Maryland law, for their shares in the form of cash or
other consideration in the same form as previously paid by the interested stockholder for its
shares.
Evaluation of Offers.
The articles of incorporation of Oneida Financial-New provide that its
board of directors, when evaluating a transaction that would or may involve a change in control of
Oneida Financial-New (whether by purchases of its securities, merger, consolidation, share
exchange, dissolution, liquidation, sale of all or substantially all of its assets, proxy
solicitation or otherwise), may, in connection with the exercise of its business judgment in
determining what is in the best interests of Oneida Financial-New and its stockholders and in
making any recommendation to the stockholders, give due consideration to all relevant factors,
including, but not limited to:
•
the economic effect, both immediate and long-term, upon Oneida Financial-New's
stockholders, including stockholders, if any, who do not participate in the
transaction;
•
the social and economic effect on the present and future employees, creditors and
customers of, and others dealing with, Oneida Financial-New and its subsidiaries and on
the communities in which Oneida Financial-New and its subsidiaries operate or are
located;
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•
whether the proposal is acceptable based on the historical, current or projected
future operating results or financial condition of Oneida Financial-New;
•
whether a more favorable price could be obtained for Oneida Financial-New's stock or
other securities in the future;
•
the reputation and business practices of the other entity to be involved in the
transaction and its management and affiliates as they would affect the employees of
Oneida Financial-New and its subsidiaries;
•
the future value of the stock or any other securities of Oneida Financial-New or the
other entity to be involved in the proposed transaction;
•
any antitrust or other legal and regulatory issues that are raised by the proposal;
•
the business and historical, current or expected future financial condition or
operating results of the other entity to be involved in the transaction, including, but
not limited to, debt service and other existing financial obligations, financial
obligations to be incurred in connection with the proposed transaction, and other
likely financial obligations of the other entity to be involved in the proposed
transaction; and
•
the ability of Oneida Financial-New to fulfill its objectives as a financial
institution holding company and on the ability of its subsidiary financial
institution(s) to fulfill the objectives of a federally insured financial institution
under applicable statutes and regulations.
If the board of directors determines that any proposed transaction should be rejected, it may
take any lawful action to defeat such transaction.
Oneida Financial Corp.'s charter and bylaws do not contain a similar provision.
Dissenters' Rights of Appraisal
.
Office of Thrift Supervision regulations generally provide
that a stockholder of a federally chartered corporation that engages in a merger, consolidation or
sale of all or substantially all of its assets shall have the right to demand from such institution
payment of the fair or appraised value of his or her stock in the corporation, subject to specified
procedural requirements. The regulations also provide, however, that a stockholder of a federally
chartered corporation whose shares are listed on a national securities exchange are not entitled to
dissenters' rights in connection with a merger if the stockholder is required to accept only
"qualified consideration" for his or her stock, which is defined to include cash, shares of stock
of any institution or corporation that at the effective date of the merger will be listed on a
national securities exchange, or any combination of such shares of stock and cash.
Under Maryland law, stockholders of Oneida Financial-New will not have dissenters' appraisal
rights in connection with a plan of merger or consolidation to which Oneida Financial-New is a
party as long as the common stock of Oneida Financial-New trades on a national securities exchange.
Amendment of Governing Instruments
.
No amendment of Oneida Financial Corp.'s stock charter may
be made unless it is first proposed by the board of directors of Oneida Financial Corp., then
preliminarily approved by the Office of Thrift Supervision, and thereafter approved by the holders
of a majority of the total votes eligible to be cast at a legal meeting.
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The articles of incorporation of Oneida Financial-New may be amended, upon the submission of
an amendment by the board of directors to a vote of the stockholders, by the affirmative vote of at
least two-thirds of the outstanding shares of common stock, or by the affirmative vote of a
majority of the outstanding shares of common stock if at least two-thirds of the members of the
whole board of directors approves such amendment; provided, however, that approval by at least 80%
of the outstanding voting stock is generally required to amend the following provisions:
(i)
The limitation on voting rights of persons who directly or indirectly
beneficially own more than 10% of the outstanding shares of common stock;
(ii)
The division of the board of directors into three staggered classes;
(iii)
The ability of the board of directors to fill vacancies on the board;
(iv)
The requirement that directors may only be removed for cause and by the
affirmative vote of at least a majority of the votes eligible to be cast by
stockholders;
(v)
The ability of the board of directors to amend and repeal the bylaws;
(vi)
The ability of the board of directors to evaluate a variety of factors in
evaluating offers to purchase or otherwise acquire Oneida Financial-New;
(vii)
The authority of the board of directors to provide for the issuance of
preferred stock;
(viii)
The validity and effectiveness of any action lawfully authorized by the affirmative
vote of the holders of a majority of the total number of outstanding shares of common
stock;
(ix)
The number of stockholders constituting a quorum or required for stockholder
consent;
(x)
The indemnification of current and former directors and officers, as well as
employees and other agents, by Oneida Financial-New;
(xi)
The limitation of liability of officers and directors to Oneida Financial-New
for money damages;
(xii)
The inability of stockholders to cumulate their votes in the election of
directors;
(xiii)
The advance notice requirements for stockholder proposals and nominations; and
(xiv)
The provision of the articles of incorporation requiring approval of at least
80% of the outstanding voting stock to amend the provisions of the articles of
incorporation provided in (i) through (xiii) of this list.
The articles of incorporation also provide that the bylaws may be amended by the affirmative
vote of a majority of our directors or by the stockholders by the affirmative vote of at least 80%
of the total votes eligible to be voted at a duly constituted meeting of stockholders. Any
amendment of this super-majority requirement for amendment of the bylaws would also require the
approval of 80% of the outstanding voting stock.
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RESTRICTIONS ON ACQUISITION OF ONEIDA FINANCIAL-NEW
Although the board of directors of Oneida Financial-New is not aware of any effort that might
be made to obtain control of Oneida Financial-New after the conversion, the board of directors
believes that it is appropriate to include certain provisions as part of Oneida Financial-New's
articles of incorporation to protect the interests of Oneida Financial-New and its stockholders
from takeovers which our board of directors might conclude are not in the best interests of Oneida
Savings Bank, Oneida Financial-New or Oneida Financial-New's stockholders.
The following discussion is a general summary of the material provisions of Oneida
Financial-New's articles of incorporation and bylaws, Oneida Savings Bank's charter and bylaws and
certain other regulatory provisions that may be deemed to have an "anti-takeover" effect. The
following description of certain of these provisions is necessarily general and is not intended to
be a complete description of the document or regulatory provision in question. The articles of
incorporation and bylaws of Oneida Financial-New are included as part of Oneida Financial, MHC's
application for conversion filed with the Office of Thrift Supervision and Oneida Financial-New's
registration statement filed with the Securities and Exchange Commission. See "Where You Can Find
Additional Information."
Articles of Incorporation and Bylaws of Oneida Financial-New
The articles of incorporation and bylaws of Oneida Financial-New contain a number of
provisions relating to corporate governance and rights of stockholders that may discourage future
takeover attempts. As a result, stockholders who may desire to participate in such transactions
may not have an opportunity to do so. In addition, these provisions will also render the removal of
the board of directors or management of Oneida Financial-New more difficult.
Directors
.
The board of directors will be divided into three classes. The members of each
class will be elected for a term of three years and only one class of directors will be elected
annually. Thus, it would take at least two annual elections to replace a majority of our board of
directors. Further, the bylaws impose notice and information requirements in connection with the
nomination by stockholders of candidates for election to the board of directors or the proposal by
stockholders of business to be acted upon at an annual meeting of stockholders.
Restrictions on Calling Special Meetings
.
The bylaws provide
that special meetings of stockholders can be called by the President, by a majority of the whole
board of directors or upon the written request of stockholders entitled to cast at least a majority
of all votes entitled to vote at the meeting.
Prohibition of Cumulative Voting
.
The articles of incorporation prohibit cumulative voting
for the election of directors.
Limitation of Voting Rights
.
The articles of incorporation provide that in no event will any
person who beneficially owns more than 10% of the then-outstanding shares of common stock, be
entitled or permitted to vote any of the shares of common stock held in excess of the 10% limit.
This provision has been included in the articles of incorporation in reliance on Section 2-507(a)
of the Maryland General Corporation Law, which entitles stockholders to one vote for each share of
stock unless the articles of incorporation provide for a greater or lesser number of votes per
share or limit or deny voting rights.
Restrictions on Removing Directors from Office
.
The articles of incorporation provide that
directors may be removed only for cause, and only by the affirmative vote of the holders of at
least a
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majority of the voting power of all of our then-outstanding common stock entitled to vote (after
giving effect to the limitation on voting rights discussed above in "—Limitation of Voting
Rights.").
Authorized but Unissued Shares
. After the conversion, Oneida Financial-New will have
authorized but unissued shares of common and preferred stock. See "Description of Capital Stock of
Oneida Financial-New Following the Conversion." The articles of incorporation authorize 10,000,000
shares of serial preferred stock. Oneida Financial-New is authorized to issue preferred stock from
time to time in one or more series subject to applicable provisions of law, and the board of
directors is authorized to fix the designations, and relative preferences, limitations, voting
rights, if any, including without limitation, offering rights of such shares (which could be
multiple or as a separate class). In the event of a proposed merger, tender offer or other attempt
to gain control of Oneida Financial-New that the board of directors does not approve, it may be
possible for the board of directors to authorize the issuance of a series of preferred stock with
rights and preferences that would impede the completion of the transaction. An effect of the
possible issuance of preferred stock therefore may be to deter a future attempt to gain control of
Oneida Financial-New The board of directors has no present plan or understanding to issue any
preferred stock.
Amendments to Articles of Incorporation and Bylaws.
Amendments to the articles of
incorporation must be approved by our board of directors and also by at least a majority of the
outstanding shares of our voting stock; provided, however, that approval by at least 80% of the
outstanding voting stock is generally required to amend certain provisions. A list of these
provisions is provided under "Comparison of Stockholders' Rights For Existing Stockholders of
Oneida Financial Corp.—Amendment of Governing Instruments" above.
The articles of incorporation also provide that the bylaws may be amended by the affirmative
vote of a majority of Oneida Financial-New's directors or by the stockholders by the affirmative
vote of at least 80% of the total votes eligible to be voted at a duly constituted meeting of
stockholders. Any amendment of this super-majority requirement for amendment of the bylaws would
also require the approval of 80% of the outstanding voting shares.
The provisions requiring the affirmative vote of 80% of outstanding shares for certain
stockholder actions have been included in the articles of incorporation of Oneida Financial-New in
reliance on Section 2-104(b)(4) of the Maryland General Corporation Law. Section 2-104(b)(4)
permits the articles of incorporation to require a greater proportion of votes than the proportion
that would otherwise be required for stockholder action under the Maryland General Corporation Law.
Business Combinations with Interested Stockholders
.
The bylaws of Oneida Financial-New
allow the board of directors to restrict mergers, consolidations, sales of assets and other business combinations
between Oneida Financial-New and an "interested stockholder." See "Comparison of Stockholder
Rights for Existing Stockholders of Oneida Financial Corp.—Mergers, Consolidations and Sales of
Assets," above.
Evaluation of Offers.
The articles of incorporation of Oneida Financial-New provide that its
board of directors, when evaluating a transaction that would or may involve a change in control of
Oneida Financial-New (whether by purchases of its securities, merger, consolidation, share
exchange, dissolution, liquidation, sale of all or substantially all of its assets, proxy
solicitation or otherwise), may, in connection with the exercise of its business judgment in
determining what is in the best interests of Oneida Financial-New and its stockholders and in
making any recommendation to the stockholders, give due consideration to all relevant factors,
including, but not limited to, certain enumerated factors. For a list of enumerated factors, see
"Comparison of Stockholder Rights for Existing Stockholders of Oneida Financial Corp.—Evaluation
of Offers," above.
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Purpose and Anti-Takeover Effects of the Articles of Incorporation and Bylaws of Oneida
Financial-New
.
Our board of directors believes that the provisions described above are prudent and
will reduce our vulnerability to takeover attempts and certain other transactions that have not
been negotiated with and approved by our board of directors. These provisions also will assist us
in the orderly deployment of the offering proceeds into productive assets during the initial period
after the conversion. Our board of directors believes these provisions are in the best interests of
Oneida Financial-New and our stockholders. Our board of directors believes that it will be in the
best position to determine the true value of Oneida Financial-New and to negotiate more effectively
for what may be in the best interests of all our stockholders. Accordingly, our board of directors
believes that it is in the best interests of Oneida Financial-New and all of our stockholders to
encourage potential acquirers to negotiate directly with the board of directors and that these
provisions will encourage such negotiations and discourage hostile takeover attempts. Our board of
directors also believes that these provisions should not discourage persons from proposing a merger
or other transaction at a price reflective of the true value of Oneida Financial-New and that is in
the best interests of all our stockholders.
Takeover attempts that have not been negotiated with and approved by our board of directors
present the risk of a takeover on terms that may be less favorable than might otherwise be
available. A transaction that is negotiated and approved by our board of directors, on the other
hand, can be carefully planned and undertaken at an opportune time in order to obtain maximum value
of Oneida Financial-New for our stockholders, with due consideration given to matters such as the
management and business of the acquiring corporation and maximum strategic development of our
assets.
Although a tender offer or other takeover attempt may be made at a price substantially above
the current market price, such offers are sometimes made for less than all of the outstanding
shares of a target company. As a result, stockholders may be presented with the alternative of
partially liquidating their investment at a time that may be disadvantageous, or retaining their
investment in an enterprise that is under different management and whose objectives may not be
similar to those of the remaining stockholders.
Despite our belief as to the benefits to stockholders of these provisions of Oneida
Financial-New's articles of incorporation and bylaws, these provisions may also have the effect of
discouraging a future takeover attempt that would not be approved by our board of directors, but
pursuant to which stockholders may receive a substantial premium for their shares over then current
market prices. As a result, stockholders who might desire to participate in such a transaction may
not have any opportunity to do so. Such provisions will also make it more difficult to remove our
board of directors and management. Our board of directors, however, has concluded that the
potential benefits outweigh the possible disadvantages.
Restated Organization Certificate of Oneida Savings Bank
Oneida Savings Bank's Restated Organization Certificate will be amended to provide that for a
period of five years from the closing of the conversion and offering, no person other than Oneida
Financial-New may offer directly or indirectly to acquire the beneficial ownership of more than 10%
of any class of equity security of Oneida Savings Bank. This provision does not apply to any
tax-qualified employee benefit plan of Oneida Savings Bank or Oneida Financial-New or to an
underwriter or member of an underwriting or selling group involving the public sale or resale of
securities of Oneida Financial-New or any of its subsidiaries, so long as after the sale or resale,
no underwriter or member of the selling group is a beneficial owner, directly or indirectly, of
more than 10% of any class of equity securities of Oneida Savings Bank. In addition, during this
five-year period, all shares owned over the 10% limit may not be voted on any matter submitted to
stockholders for a vote.
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Conversion Regulations
Office of Thrift Supervision regulations prohibit any person from making an offer, announcing
an intent to make an offer or participating in any other arrangement to purchase stock or acquiring
stock or subscription rights in a converting institution or its holding company from another person
prior to completion of its conversion. Further, without the prior written approval of the Office of
Thrift Supervision, no person may make an offer or announcement of an offer to purchase shares or
actually acquire shares of a converted institution or its holding company for a period of three
years from the date of the completion of the conversion if, upon the completion of such offer,
announcement or acquisition, the person would become the beneficial owner of more than 10% of the
outstanding stock of the institution or its holding company. The Office of Thrift Supervision has
defined "person" to include any individual, group acting in concert, corporation, partnership,
association, joint stock company, trust, unincorporated organization or similar company, a
syndicate or any other group formed for the purpose of acquiring, holding or disposing of
securities of an insured institution. However, offers made exclusively to a bank or its holding
company, or an underwriter or member of a selling group acting on the converting institution's or
its holding company's behalf for resale to the general public are excepted. The regulation also
provides civil penalties for willful violation or assistance in any such violation of the
regulation by any person connected with the management of the converting institution or its holding
company or who controls more than 10% of the outstanding shares or voting rights of a converted
institution or its holding company.
Change in Control Regulations
Under the Change in Bank Control Act, no person may acquire control of an insured federal
savings bank or its parent holding company unless the Office of Thrift Supervision has been given
60 days' prior written notice and has not issued a notice disapproving the proposed acquisition. In
addition, Office of Thrift Supervision regulations provide that no company may acquire control of a
savings bank without the prior approval of the Office of Thrift Supervision. Any company that
acquires such control becomes a "savings and loan holding company" subject to registration,
examination and regulation by the Office of Thrift Supervision.
Control, as defined under federal law, means ownership, control of or holding irrevocable
proxies representing more than 25% of any class of voting stock, control in any manner of the
election of a majority of the institution's directors, or a determination by the Office of Thrift
Supervision that the acquiror has the power to direct, or directly or indirectly to exercise a
controlling influence over, the management or policies of the institution. Acquisition of more than
10% of any class of a savings bank's voting stock, if the acquiror is also subject to any one of
eight "control factors," constitutes a rebuttable determination of control under the regulations.
Such control factors include the acquiror being one of the two largest stockholders. The
determination of control may be rebutted by submission to the Office of Thrift Supervision, prior
to the acquisition of stock or the occurrence of any other circumstances giving rise to such
determination, of a statement setting forth facts and circumstances which would support a finding
that no control relationship will exist and containing certain undertakings. The regulations
provide that persons or companies that acquire beneficial ownership exceeding 10% or more of any
class of a savings bank's stock who do not intend to participate in or seek to exercise control
over a savings bank's management or policies may qualify for a safe harbor by filing with the
Office of Thrift Supervision a certification form that states, among other things, that the holder
is not in control of such institution, is not subject to a rebuttable determination of control and
will take no action which would result in a determination or rebuttable determination of control
without prior notice to or approval of the Office of Thrift Supervision, as applicable. There are
also rebuttable presumptions in the regulations concerning whether a group "acting in concert"
exists, including presumed action in concert among members of an "immediate family."
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The Office of Thrift Supervision may prohibit an acquisition of control if it finds, among
other things, that:
(i)
the acquisition would result in a monopoly or substantially lessen competition;
(ii)
the financial condition of the acquiring person might jeopardize the financial
stability of the institution; or
(iii)
the competence, experience or integrity of the acquiring person indicates that
it would not be in the interest of the depositors or the public to permit the
acquisition of control by such person.
New York Banking Law
In addition to federal law, the New York State Banking Law generally requires prior approval
of the New York State Banking Board before any action is taken that causes any entity or person to
acquire direct or indirect control of a banking institution which is organized in New York State.
Control is presumed to exist if any company or person directly or indirectly owns, controls or
holds with power to vote 10% or more of the voting stock of a banking institution or of any company
or person that owns, controls or holds with power to vote 10% or more of the voting stock of a
banking institution.
DESCRIPTION OF CAPITAL STOCK OF ONEIDA FINANCIAL-NEW
FOLLOWING THE CONVERSION
General
Oneida Financial-New is authorized to issue 30,000,000 shares of common stock, par value of
$0.01 per share, and 10,000,000 shares of preferred stock, par value $0.01 per share. Oneida
Financial-New currently expects to issue in the offering and exchange up to 8,205,123 shares of
common stock, subject to adjustment up to 9,435,892 shares. Oneida Financial-New will not issue
shares of preferred stock in the conversion. Each share of Oneida Financial-New common stock will
have the same relative rights as, and will be identical in all respects to, each other share of
common stock. Upon payment of the subscription price for the common stock, in accordance with the
plan of conversion and reorganization, all of the shares of common stock will be duly authorized,
fully paid and nonassessable.
The shares of common stock of Oneida Financial-New will represent nonwithdrawable capital,
will not be an account of an insurable type, and will not be insured by the Federal Deposit
Insurance Corporation or any other government agency.
Common Stock
Dividends
.
Oneida Financial-New may pay dividends to an amount equal to the excess of our
capital surplus over payments that would be owed upon dissolution to stockholders whose
preferential rights upon dissolution are superior to those receiving the dividend, and to an amount
that would not make us insolvent, as and when declared by our board of directors. The payment of
dividends by Oneida Financial-New is subject to limitations that are imposed by law and applicable
regulation. The holders of common stock of Oneida Financial-New will be entitled to receive and
share equally in dividends as may be declared by our board of directors out of funds legally
available therefor. If Oneida Financial-New issues shares of preferred stock, the holders thereof
may have a priority over the holders of the common stock with respect to dividends.
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Voting Rights
.
Upon consummation of the conversion, the holders of common stock of Oneida
Financial-New will have exclusive voting rights in Oneida Financial-New. They will elect Oneida
Financial-New's board of directors and act on other matters as are required to be presented to them
under Maryland law or as are otherwise presented to them by the board of directors. Generally, each
holder of common stock will be entitled to one vote per share and will not have any right to
cumulate votes in the election of directors. Any person who beneficially owns more than 10% of the
then-outstanding shares of Oneida Financial-New's common stock, however, will not be entitled or
permitted to vote any shares of common stock held in excess of the 10% limit. If Oneida
Financial-New issues shares of preferred stock, holders of the preferred stock may also possess
voting rights. Certain matters require the approval of 80% of our outstanding common stock.
As a New York stock savings bank, corporate powers and control of Oneida Savings Bank are
vested in its board of directors, who elect the officers of Oneida Savings Bank and who fill any
vacancies on the board of directors. Voting rights of Oneida Savings Bank are vested exclusively in
the owners of the shares of capital stock of Oneida Savings Bank, which will be Oneida
Financial-New, and voted at the direction of Oneida Financial-New's board of directors.
Consequently, the holders of the common stock of Oneida Financial-New will not have direct control
of Oneida Savings Bank.
Liquidation
.
In the event of any liquidation, dissolution or winding up of Oneida Savings
Bank, Oneida Financial-New, as the holder of 100% of Oneida Savings Bank's capital stock, would be
entitled to receive all assets of Oneida Savings Bank available for distribution, after payment or
provision for payment of all debts and liabilities of Oneida Savings Bank, including all deposit
accounts and accrued interest thereon, and after distribution of the balance in the liquidation
account to Eligible Account Holders and Supplemental Eligible Account Holders. In the event of
liquidation, dissolution or winding up of Oneida Financial-New, the holders of its common stock
would be entitled to receive, after payment or provision for payment of all its debts and
liabilities, all of the assets of Oneida Financial-New available for distribution. If preferred
stock is issued, the holders thereof may have a priority over the holders of the common stock in
the event of liquidation or dissolution.
Preemptive Rights
.
Holders of the common stock of Oneida Financial-New will not be entitled to
preemptive rights with respect to any shares that may be issued. The common stock is not subject to
redemption.
Preferred Stock
None of the shares of Oneida Financial-New's authorized preferred stock will be issued as part
of the offering or the conversion. Preferred stock may be issued with preferences and designations
as our board of directors may from time to time determine. Our board of directors may, without
stockholder approval, issue shares of preferred stock with voting, dividend, liquidation and
conversion rights that could dilute the voting strength of the holders of the common stock and may
assist management in impeding an unfriendly takeover or attempted change in control.
TRANSFER AGENT
The transfer agent and registrar for Oneida Financial-New's common stock is Registrar and
Transfer Company.
EXPERTS
The consolidated financial statements of Oneida Financial Corp. as of December 31, 2009 and
2008, and for each of the years in the three-year period ended December 31, 2009, appearing in this
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prospectus and elsewhere in the registration statement have been audited by Crowe Horwath LLP,
independent registered public accountants, as stated in their reports with respect thereto, and are
included herein in reliance given upon the authority of said firm as experts in accounting and
auditing.
RP Financial has consented to the publication herein of the summary of its report to Oneida
Financial-New setting forth its opinion as to the estimated pro forma market value of the shares of
common stock upon completion of the conversion and offering and its letter with respect to
subscription rights.
LEGAL AND TAX MATTERS
Luse Gorman Pomerenk & Schick, P.C., Washington, D.C., counsel to Oneida Financial-New, Oneida
Financial, MHC and Oneida Savings Bank, will issue to Oneida Financial-New its opinion regarding
the legality of the common stock and the federal income tax consequences of the conversion. Crowe
Horwath LLP has provided an opinion to us regarding the New York income tax consequences of the
conversion. Certain legal matters will be passed upon for Stifel, Nicolaus & Company, Incorporated
by Kilpatrick Stockton LLP, Washington, D.C.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
Oneida Financial-New has filed with the Securities and Exchange Commission a registration
statement under the Securities Act of 1933 with respect to the shares of common stock offered
hereby. As permitted by the rules and regulations of the Securities and Exchange Commission, this
prospectus does not contain all the information set forth in the registration statement. Such
information, including the appraisal report which is an exhibit to the registration statement, can
be examined without charge at the public reference facilities of the Securities and Exchange
Commission located at 100 F Street, N.E., Washington, D.C. 20549, and copies of such material can
be obtained from the Securities and Exchange Commission at prescribed rates. The Securities and
Exchange Commission telephone number is 1-800-SEC-0330. In addition, the Securities and Exchange
Commission maintains a web site (http://www.sec.gov) that contains reports, proxy and information
statements and other information regarding registrants that file electronically with the Securities
and Exchange Commission, including Oneida Financial-New. The statements contained in this
prospectus as to the contents of any contract or other document filed as an exhibit to the
registration statement are, of necessity, brief descriptions of the material terms of, and should
be read in conjunction with, such contract or document.
Oneida Financial, MHC has filed with the Office of Thrift Supervision an Application on Form
AC with respect to the conversion. This prospectus omits certain information contained in the
application. The application may be examined at the principal office of the Office of Thrift
Supervision, 1700 G Street, N.W., Washington, D.C. 20552, and at the Northeast Regional Office of
the Office of Thrift Supervision, Harborside Financial Center, Plaza Five, Suite 1600, Jersey City,
New Jersey 07311. Our Plan of Conversion and Reorganization is available, upon request, at each of
our branch offices.
In connection with the offering, Oneida Financial-New will register its common stock under
Section
12(b)
of the Securities Exchange Act of 1934 and, upon such registration, Oneida
Financial-New and the holders of its common stock will become subject to the proxy solicitation
rules, reporting requirements and restrictions on common stock purchases and sales by directors,
officers and greater than 10% stockholders, the annual and periodic reporting and certain other
requirements of the Securities Exchange Act of 1934. Under the plan of conversion and
reorganization, Oneida Financial-New has undertaken that it will not terminate such registration
for a period of at least three years following the offering.
179
Oneida Financial Corp.
Index to Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
F-1
Consolidated Statements of Condition as of December 31, 2009 and 2008
F-2
Consolidated Statements of Income for the Years Ended
December 31, 2009, 2008 and 2007
F-3
Consolidated Statements of Stockholders' Equity for the Years Ended
December 31, 2009, 2008 and 2007
F-4
Consolidated Statements of Cash Flows for the Years Ended
December 31, 2009, 2008 and 2007
F-6
Notes to Consolidated Financial Statements
F-8
All schedules are omitted as the required information either is not applicable or is included in the financial statements or related notes.
Separate financial statements for new Oneida Financial Corp. have not been included in this
prospectus because new Oneida Financial Corp., which has engaged only in organizational activities
to date, has no significant assets, contingent or other liabilities, revenues or expenses.
180
Table of Contents
Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders
Oneida Financial Corp.
Oneida, New York
We have audited the accompanying consolidated statements of condition of Oneida Financial Corp. as
of December 31, 2009 and 2008 and the related consolidated statements of income, changes in
stockholders' equity and cash flows for each of the three years in the period ended December 31,
2009. These financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. The
Company is not required to have, nor were we engaged to perform, an audit of its internal controls
over financial reporting. Our audit included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Company's internal control
over financial reporting. Accordingly, we express no such opinion. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all
material respects, the financial position of Oneida Financial Corp. as of December 31, 2009 and
2008 and the results of its operations and its cash flows for each of the three years in the period
ended December 31, 2009 in conformity with U.S. generally accepted accounting principles.
/s/ Crowe Horwath LLP
Crowe Horwath LLP
March 12, 2010
Livingston, New Jersey
F-1
Table of Contents
Oneida Financial Corp.
Consolidated Statements of Condition
December 31, 2009 and 2008
2009
2008
Assets
Cash and due from banks
$
35,433,901
$
13,223,027
Federal funds sold
4,103,101
71,036
Total cash and cash equivalents
39,537,002
13,294,063
Trading securities
7,627,280
5,941,476
Securities available for sale
114,532,578
134,763,154
Securities held to maturity (fair value 2009 $47,966,244)
47,692,150
—
Mortgage loans held for sale
687,424
740,730
Loans receivable
298,052,583
304,375,976
Allowance for loan losses
(2,900,587
)
(2,624,283
)
Net loans receivable
295,151,996
301,751,693
Federal Home Loan Bank stock
2,664,800
3,784,200
Premises and equipment, net
21,274,516
21,789,766
Accrued interest receivable
2,468,977
2,659,074
Bank owned life insurance
15,712,187
15,019,970
Other assets
18,344,389
15,322,202
Goodwill
23,183,101
22,963,439
Other intangible assets
1,629,931
2,100,001
Total Assets
$
590,506,331
$
540,129,768
Liabilities and Stockholders' Equity
Interest bearing deposits
$
426,367,669
$
364,911,270
Non-interest bearing deposits
62,996,738
60,786,827
Borrowings
31,000,000
52,825,000
Notes payable
—
12,481
Other liabilities
11,025,751
6,764,948
Total liabilities
531,390,158
485,300,526
Commitments and contingent liabilities (Note 14)
—
—
Stockholders' equity:
Preferred stock, 1,000,000 shares authorized
—
—
Common stock, $.01 par value, 20,000,000 shares authorized;
8,322,452 shares issued
83,225
83,225
Additional paid-in capital
19,481,956
19,221,421
Retained earnings
44,024,272
41,584,629
Accumulated other comprehensive loss
(3,960,866
)
(5,562,481
)
Treasury stock (at cost, 490,620 and 533,106 shares)
(3,071,414
)
(3,057,552
)
Total stockholders' equity — controlling interest
56,557,173
52,269,242
Noncontrolling interest
2,559,000
2,560,000
Total stockholders'equity
59,116,173
54,829,242
Total Liabilities and Stockholders' Equity
$
590,506,331
$
540,129,768
The accompanying notes are an integral part of the consolidated financial statements.
F-2
Table of Contents
Oneida Financial Corp.
Consolidated Statements of Income
Years Ended December 31, 2009, 2008 and 2007
2009
2008
2007
Interest and dividend income:
Interest and fees on loans
$
17,761,357
$
18,535,294
$
18,551,557
Interest and dividends on investment securities:
U. S. Government and agency obligations
1,068,409
1,371,440
1,727,445
Corporate debt and equity obligations
1,333,524
2,232,170
2,080,557
Mortgage-backed securities
3,481,521
3,377,135
1,588,704
Tax exempt securities
988,844
809,620
600,702
Other
330,233
239,026
294,781
Interest on federal funds sold
and interest-earning deposits
37,324
169,340
829,079
Total interest and dividend income
25,001,212
26,734,025
25,672,825
Interest expense:
Savings deposits
488,033
602,747
569,628
Money market and interest-bearing checking
1,654,830
1,892,303
2,095,836
Time deposits
3,734,008
6,020,667
6,371,634
Federal funds purchased
—
—
53,120
Short-term borrowings
245,156
288,187
364,976
Long-term borrowings
1,451,765
2,277,416
2,572,589
Total interest expense
7,573,792
11,081,320
12,027,783
Net interest income
17,427,420
15,652,705
13,645,042
Provision for loan losses
760,000
525,000
—
Net interest income after
provision for loan losses
16,667,420
15,127,705
13,645,042
Other-than-temporary loss
Total impairment loss
(2,908,143
)
(1,021,845
)
—
Loss recognized in other comprehensive income
613,302
—
—
Net impairment loss recognized in earnings
(2,294,841
)
(1,021,845
)
—
Net gains on sales of securities
787,842
62,854
352,825
Changes in fair value of trading securities
1,725,032
(7,674,699
)
—
Non-interest income
20,884,330
18,318,255
17,837,947
Non-interest expenses
32,445,506
28,712,160
26,963,857
Income (Loss) before income taxes
5,324,277
(3,899,890
)
4,871,957
Provision (Benefit) for income taxes
1,210,920
(2,222,800
)
1,367,650
Net Income (Loss)
$
4,113,357
$
(1,677,090
)
$
3,504,307
Earnings (Loss) per share — basic
$
0.53
($0.22
)
$
0.45
Earnings (Loss) per share — diluted
$
0.52
($0.22
)
$
0.45
The accompanying notes are an integral part of the consolidated financial statements.
F-3
Table of Contents
Oneida Financial Corp.
Consolidated Statements of Stockholders' Equity
Years Ended December 31, 2009, 2008 and 2007
Common Stock
Accumulated
Issued Under
Additional
Other
Employee
Common Stock
Paid-In
Retained
Comprehensive
Comprehensive
Treasury
Stock Plans -
Noncontrolling
Shares
Amount
Capital
Earnings
Income
Income(Loss)
Stock
Unearned
Interest
Total
Balance at December 31, 2006
8,322,452
$
83,225
$
18,704,350
$
44,579,507
—
$
(1,786,692
)
$
(3,038,926
)
$
(141,678
)
$
60,000
$
58,459,786
Net income
3,504,307
$
3,504,307
3,504,307
Other comprehensive income, net of tax
Unrealized losses on securities arising
during period
(2,167,052
)
Reclassification adjustment for gains included in net income
(352,825
)
Net unrealized holding losses
(2,519,877
)
Change in unrealized loss on pension benefits
228,994
Other comprehensive loss before tax
(2,290,883
)
Income tax benefit
916,353
Other comprehensive loss, net of tax
(1,374,530
)
(1,374,530
)
(1,374,530
)
Comprehensive income
$
2,129,777
Shares issued under ESOP plan
195,730
141,678
337,408
Shares earned under stock plans
153,210
153,210
Common stock cash dividends: $.48 per share
(1,648,916
)
(1,648,916
)
Stock repurchased
(1,000
)
(1,000
)
Treasury stock purchased
(65,159
)
(65,159
)
Treasury stock reissued
(177
)
34,295
34,118
Balance at December 31, 2007
8,322,452
$
83,225
$
19,053,113
$
46,434,898
—
$
(3,161,222
)
$
(3,069,790
)
$
—
$
59,000
$
59,399,224
Reclassification adjustment to initially apply fair value guidance, net of tax
(1,519,341
)
1,519,341
—
Adjustment to initially apply measurement provisions of pension guidance
8,215
(69,854
)
(61,639
)
Net loss
(1,677,090
)
$
(1,677,090
)
(1,677,090
)
Other comprehensive loss, net of tax
Unrealized losses on securities arising
during period
(5,001,265
)
Reclassification adjustment for losses included
in net income
958,991
Net unrealized holding losses
(4,042,274
)
Change in unrealized loss on pension benefits
(2,375,636
)
Other comprehensive loss before tax
(6,417,910
)
Income tax benefit
2,567,164
Other comprehensive loss, net of tax
(3,850,746
)
(3,850,746
)
(3,850,746
)
Comprehensive loss
$
(5,527,836
)
Shares earned under stock plans
165,654
165,654
Tax benefit from stock plans
2,822
2,822
Common stock cash dividends: $.48 per share
(1,662,053
)
(1,662,053
)
Stock issued
2,501,000
2,501,000
Treasury stock purchased
(20,277
)
(20,277
)
Treasury stock reissued
(168
)
32,515
32,347
Balance at December 31, 2008
8,322,452
$
83,225
$
19,221,421
$
41,584,629
—
$
(5,562,481
)
$
(3,057,552
)
$
—
$
2,560,000
$
54,829,242
(Continued)
F-4
Table of Contents
Oneida Financial Corp.
Consolidated Statements of Stockholders' Equity (Continued)
Years Ended December 31, 2009, 2008 and 2007
Common Stock
Accumulated
Issued Under
Additional
Other
Employee
Common Stock
Paid-In
Retained
Comprehensive
Comprehensive
Treasury
Stock Plans -
Noncontrolling
Shares
Amount
Capital
Earnings
Income (Loss)
Income(Loss)
Stock
Unearned
Interest
Total
Balance at December 31, 2008 (continued)
8,322,452
$
83,225
$
19,221,421
$
41,584,629
$
(5,562,481
)
$
(3,057,552
)
$
—
$
2,560,000
$
54,829,242
Net income
4,113,357
$
4,113,357
4,113,357
Other comprehensive loss, net of tax
Unrealized gains on securities arising
during period
514,308
Reclassification adjustment for losses included
in net income
1,506,999
Net unrealized holding losses
2,021,307
Change in unrealized loss on pension benefits
648,051
Other comprehensive income before tax
2,669,358
Income tax benefit
1,067,743
Other comprehensive income, net of tax
1,601,615
1,601,615
1,601,615
Comprehensive income
$
5,714,972
Shares earned under stock plans
258,830
258,830
Tax benefit from stock plans
3,608
3,608
Common stock cash dividends: $.48 per share
(1,673,714
)
(1,673,714
)
Stock repurchased
(1,000
)
(1,000
)
Treasury stock purchased
(379,976
)
(379,976
)
Treasury stock reissued
(1,903
)
366,114
364,211
Balance at December 31, 2009
8,322,452
$
83,225
$
19,481,956
$
44,024,272
—
$
(3,960,866
)
$
(3,071,414
)
$
—
$
2,559,000
$
59,116,173
The accompanying notes are an integral part of the consolidated financial statements.
F - 5
Table of Contents
Oneida Financial Corp.
Consolidated Statements of Cash Flows
Years Ended December 31, 2009, 2008 and 2007
2009
2008
2007
Operating activities:
Net (loss) income
$
4,113,357
$
(1,677,090
)
$
3,504,307
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization
2,078,087
2,149,989
1,954,067
Amortization of premiums and
(accretion of discounts) on securities, net
242,344
95,508
75,141
Net change in fair value of trading securities
(1,725,032
)
7,674,699
—
Provision for loan losses
760,000
525,000
—
Provision for deferred income taxes
349,184
(2,853,698
)
109,065
Gain on sale of premises and equipment
—
(135,395
)
(15,000
)
Loss (gain) on available for sale securities, net
1,506,999
958,991
(352,825
)
ESOP shares earned
—
—
337,408
Stock compensation earned
258,830
165,654
174,806
Loss (gain) on sale of foreclosed assets
61,762
29,249
(1,808
)
Gain on sale of loans
(343,622
)
(134,809
)
(137,415
)
Income taxes payable
(16,549
)
355,719
(318,216
)
Accrued interest receivable
190,097
(1,362
)
(298,312
)
Other assets
(3,818,757
)
(502,167
)
(1,146,961
)
Other liabilities
4,896,373
(1,211,634
)
(328,794
)
Earnings on bank owned life insurance, net
(692,217
)
(552,250
)
(566,692
)
Origination of loans held for sale
(55,882,280
)
(15,719,216
)
(19,949,867
)
Proceeds from sale of loans
56,279,208
18,706,624
18,075,307
Net cash provided by operating activities
8,257,784
7,873,812
1,114,211
Investing activities:
Purchase of securities available for sale
(54,791,609
)
(77,674,551
)
(57,479,297
)
Proceeds from sales of securities available for sale
31,953,561
31,666,785
22,928,266
Maturities and calls of securities available for sale
20,813,063
24,355,809
16,328,554
Principal collected on securities available for sale
22,614,146
10,570,453
6,346,991
Purchase of securities held to maturity
(50,040,459
)
—
—
Maturities and calls of securities held to maturity
1,000,000
—
—
Principal collected on securities held to maturity
1,300,916
—
—
Purchase of FHLB stock
(600,200
)
(4,329,000
)
(1,207,400
)
Redemption of FHLB Stock
1,119,400
3,948,500
1,031,300
Net decrease (increase) in loans
5,404,815
(21,711,825
)
(9,004,402
)
Purchase of bank premises and equipment
(1,092,767
)
(870,449
)
(4,604,612
)
Proceeds from sale of bank premises and equipment
—
139,166
15,000
Proceeds from sale of foreclosed assets
373,120
230,400
23,950
Purchase of insurance agency
(84,245
)
(72,567
)
(66,153
)
Purchase of employee benefits company
(135,417
)
(129,044
)
(131,417
)
Purchase of bank, net of cash received
—
(8,800
)
907,934
Net cash used in investing activities
(22,165,676
)
(33,885,123
)
(24,911,286
)
(Continued)
F - 6
Table of Contents
Oneida Financial Corp.
Consolidated Statements of Cash Flows (Continued)
Years Ended December 31, 2009, 2008 and 2007
2009
2008
2007
Financing activities:
Net increase in demand deposits,
savings, money market, interest-bearing checking and
mortgagor's escrow accounts
$
62,587,639
$
22,642,526
$
15,924,715
Net increase in time deposits
1,078,671
2,926,277
16,303,696
Proceeds from borrowings
2,975,000
50,825,000
67,180,000
Repayment of borrowings
(24,800,000
)
(54,400,000
)
(76,180,000
)
Cash dividends
(1,673,714
)
(1,662,053
)
(1,648,916
)
Stock issued — minority interest
—
2,501,000
—
Stock repurchased — minority interest
(1,000
)
—
(1,000
)
Exercise of stock options (using treasury stock)
364,211
32,347
34,118
Purchase of treasury stock
(379,976
)
(20,277
)
(65,159
)
Net cash provided by financing activities
40,150,831
22,844,820
21,547,454
Increase (decrease) in cash and cash equivalents
26,242,939
(3,166,491
)
(2,249,621
)
Cash and cash equivalents at beginning of year
13,294,063
16,460,554
18,710,175
Cash and Cash Equivalents at End of Year
$
39,537,002
$
13,294,063
$
16,460,554
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest on deposits and obligations
$
7,753,508
$
11,125,771
$
12,106,305
Income taxes
875,285
551,000
1,615,000
Non-cash investing activities:
Transfer of loans to foreclosed assets
434,882
259,649
22,142
The accompanying notes are an integral part of the consolidated financial statements.
F - 7
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
1.
Summary of Significant Accounting Policies
Nature of Operations
The consolidated financial statements include Oneida Financial Corp. (the "Company") and its
wholly-owned subsidiary, Oneida Savings Bank (the "Bank"). Inter-company transactions and
balances are eliminated in consolidation.
The Bank is located in Central New York with offices in the City of Oneida, Rome and South
Utica and the Villages of Cazenovia, Hamilton, Canastota, Camden, Chittenango, Bridgeport,
Vernon and Westmoreland and owns two banking related subsidiaries; Oneida Preferred Funding
Corporation (OPFC) and The State Bank of Chittenango (SBC). The Bank is engaged primarily in
accepting deposits and providing various types of loans to the community. The Bank also
provides trust and brokerage services. OPFC, a Real Estate Investment Trust, primarily engages
in investing activities of residential and commercial real estate mortgages. SBC is a limited
purpose commercial bank subsidiary which is permitted to accept municipal deposit accounts
from various municipalities, school districts and other public sources; a source of funds not
available to the Bank under New York Law. The Bank also owns one insurance and risk
management subsidiary; Bailey & Haskell Associates, Inc. (B&H) which has six central New York
offices. During 2006, the Bank purchased an employee benefits consulting and retirement plan
administration firm, Benefit Consulting Group Inc. (BCG) which has an office in central New
York. During 2007, the Bank purchased Vernon Bank Corporation, the stock holding company for
National Bank of Vernon which had offices in Vernon, Westmoreland and South Utica. Workplace
Health Solutions was established in January 2008 as a risk management company with services to
help mitigate and prevent work related injuries. This subsidiary was developed to complement
the products and services offered by our other subsidiaries with an overall philosophy of
innovative risk management services.
Oneida Financial MHC, (the "Holding Company") a mutual holding company whose activity is not
included in the accompanying financial statements, owns approximately 55.2% of the outstanding
common stock of the Company at December 31, 2009. Salaries, employee benefits and rent
approximating $21,000 were allocated from the Company to the MHC during 2009, 2008 and 2007.
Subsequent Events
The Company reviews subsequent events for recognition and disclosure.
Use of Estimates
To prepare financial statements in conformity with U.S. generally accepted accounting
principles, management makes estimates and assumptions based on available information. These
estimates and assumptions affect the amounts reported in the financial statements and the
disclosures provided, and actual results could differ. The allowance for loan losses,
mortgage servicing rights, deferred tax assets, the evaluation of other-than-temporary
impairment for securities whose fair value is less than amortized cost and fair values of
financial instruments are particularly subject to change.
Cash and Cash Equivalents
Cash and cash equivalents include cash, deposits in other financial institutions with original
maturities under 90 days and federal funds sold. Generally, federal funds are purchased and
sold for one-day periods.
F - 8
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
1.
Summary of Significant Accounting Policies (Continued)
Trading Assets
Securities in which the fair value option has been elected are considered trading assets and
are recorded at fair value with changes in fair value included in earnings. Interest and
dividends are included in net interest income based on the contractual amount of interest
income. Cash flows from the purchase and sale of securities for which the fair value option
has been elected are shown as investing activities within the consolidated statement of cash
flows. The Company has elected the fair value option for certain common and preferred equity
securities as of January 1, 2008. The cumulative effect of the adoption was to decrease
retained earnings by $1.5 million, net of tax.
Investment Securities (including Mortgage-Backed Securities)
Debt securities are classified as held-to-maturity and carried at amortized cost when
management has the positive intent and ability to hold them to maturity. Debt securities are
classified as available-for-sale when they might be sold before maturity. Securities
available-for-sale are carried at fair value, with unrealized holding gains and losses
reported in other comprehensive income, net of tax. Interest income includes amortization of
purchase premium or discount. Premiums and discounts on securities are amortized on the
level-yield method without anticipating prepayments, except for mortgage backed securities
where prepayments are anticipated. Gains and losses on sales are recorded on the trade date
and determined using the specific identification method.
Declines in the fair value of securities below their cost that are other-than-temporary are
reflected as realized losses. The Company evaluates securities for other-than-temporary
impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market
conditions warrant such an evaluation. In determining OTTI for debt securities, management
considers many factors, including: (1) the length of time and the extent to which the fair
value has been less than cost, (2) the financial condition and near-term prospects of the
issuer, (3) whether the market value decline was affected by macroeconomic conditions, and (4)
whether the Company has the intent to sell the debt security or more likely than not will be
required to sell the debt security before its anticipated recovery. The assessment of whether
an other-than-temporary decline exists involves a high degree of subjectivity and judgment and
is based on the information available to management at a point in time.
Loans Held for Sale
Mortgage loans originated and intended for sale in the secondary market are carried at the
lower of aggregate cost or fair value, as determined by outstanding commitments from
investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged
to earnings.
Mortgage loans held for sale are generally sold with servicing rights retained. The carrying
value of mortgage loans sold is reduced by the amount allocated to the servicing right. Gains
and losses on sales of mortgage loans are based on the difference between the selling price
and the carrying value of the related loan sold.
Loans
Loans that management has the intent and ability to hold for the foreseeable future or until
maturity or payoff are reported at the principal balance outstanding, net of deferred
origination fees and costs and the allowance for loan losses. Interest income is accrued on
the unpaid principal balance. Loan origination fees, net of certain direct origination costs,
are deferred and recognized in interest income using the level-yield method without
anticipating prepayments.
F - 9
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
1.
Summary of Significant Accounting Policies (Continued)
Loans (Continued)
Interest income on loans is discontinued at the time the loan is 90 days delinquent unless the
loan is well-secured and in process of collection. Past due status is based on the
contractual terms of the loan. In all cases, loans are placed on nonaccrual or
charged-off at an earlier date if collection of principal or interest is considered
doubtful.
All interest accrued but not received for loans placed on nonaccrual is reversed
against interest income. Interest received on such loans is accounted for on the
cash-basis until qualifying for return to accrual. Loans are returned to accrual status
when all the principal and interest amounts contractually due are brought current and
future payments are reasonably assured.
Concentration of Credit Risk
Most of the Company's business activity is with customers located throughout Madison and
Oneida Counties. Therefore, the Company's exposure to credit risk is significantly
affected by changes in the economy in those counties.
Allowance for Loan Losses
The allowance for loan losses is a valuation allowance for probable incurred credit
losses. Loan losses are charged against the allowance when management believes the
uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited
to the allowance. Management estimates the allowance balance required using past loan loss
experience, the nature and volume of the portfolio, information about specific borrower
situations and estimated collateral values, economic conditions, and other factors.
Allocations of the allowance may be made for specific loans, but the entire allowance is
available for any loan that, in management's judgment, should be charged off.
The allowance consists of specific and general components. The specific component relates to
loans that are individually classified as impaired. Loans that have been classified but not
considered impaired or homogenous loans not evaluated for impairment but which are classified
are considered part of the general component of the allowance but are calculated using a
higher estimated loss percentage. The general component covers non-classified loans and is
based on historical loss experience adjusted for current factors. Quarterly, management
evaluates the adequacy of the allowance and determines the appropriate level of provision for
loan losses by applying a range of estimated loss percentages to each category of performing
loans and classified loans. The allowance adjustment is based upon the net change in each
portfolio category, as well as adjustments related to impaired loans, since the prior quarter.
Management monitors and modifies the level of the allowance for loan losses to maintain it at
a level which it considers adequate to provide for probable incurred loan losses.
A loan is considered impaired, based on current information and events, if it is probable that
the Bank will be unable to collect the scheduled payments of principle or interest when due
according
to the contractual terms of the loan agreement. Factors considered by management in
determining impairment include payment status, collateral value, and the probability of
collecting scheduled principal and interest payments when due. The measurement of impaired
loans is generally based on the present value of expected future cash flows discounted at the
historical effective interest rate, except that all collateral dependent loans are measured
for impairment based on the estimated fair value of the collateral. Loans, for which the
terms have been modified, and for which the borrower
F - 10
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
1.
Summary of Significant Accounting Policies (Continued)
Allowance for Loan Losses (Continued)
is experiencing financial difficulties, are considered troubled debt restructurings and
classified as impaired.
Mortgage Servicing Rights
Servicing rights are recognized separately when they are acquired through sales of loans.
When mortgage loans are sold, servicing rights are initially recorded at fair value with the
income statement effect recorded in gains on sales of loans. Fair value is based on market
prices for comparable mortgage servicing contracts, when available or alternatively, is based
on a valuation model that calculates the present value of estimated future net servicing
income. The valuation model incorporates assumptions that market participants would use in
estimating future net servicing income, such as the cost to service, the discount rate, the
custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default
rates and losses. The Company compares the valuation model inputs and results to published
industry data in order to validate the model results and assumptions. All classes of
servicing assets are subsequently measured using the amortization method which requires
servicing rights to be amortized into non-interest income in proportion to, and over the
period of, the estimated future net servicing income of the underlying loans.
Servicing assets are evaluated for impairment based upon the fair value of the rights as
compared to carrying amounts. Impairment is determined by stratifying rights into groupings
based on predominant risk characteristics, such as interest rate, loan type and investor type.
Impairment is recognized through a valuation allowance for an individual grouping, to the
extent that fair value is less than the carrying amount. If the Company later determines that
all or a portion of the impairment no longer exists for a particular grouping, a reduction of
the allowance may be recorded as an increase in income. The fair values of servicing rights
are subject to significant fluctuations as a result of changes in estimated and actual
prepayment speeds and default rates and losses.
Servicing fee income which is reported on the income statement as other non-interest income is
recorded for fees earned for servicing loans. The fees are based on a contractual percentage
of the outstanding principal; or a fixed amount per loan and are recorded as income when
earned. The amortization of mortgage servicing rights is netted against loan servicing fee
income. Servicing fees totaled $641,358, $329,920 and $295,526 for the years ended December
31, 2009, 2008 and 2007.
Federal Home Loan Bank (FHLB) Stock
The Bank is a member of the FHLB system. Members are required to own a certain amount of
stock based on the level of borrowings and other factors, and may invest additional amounts.
FHLB stock is carried at cost and periodically evaluated for impairment based on the ultimate
recovery of par value. Both cash and stock dividends are reported as income.
Foreclosed Assets
Assets acquired through or instead of loan foreclosure are initially recorded at lower of cost
or fair value less costs to sell when acquired, establishing a new cost basis. If fair value
declines subsequent to foreclosure, a valuation allowance is recorded through expense.
Operating costs after acquisition are expensed.
F - 11
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
1.
Summary of Significant Accounting Policies (Continued)
Premises and Equipment
Land is carried at cost. Premises and equipment are stated at cost, less accumulated
depreciation. Buildings and related components are depreciated using the straight-line method
with useful lives ranging from 5 to 39 years. Furniture, fixtures and equipment are
depreciated using the straight-line method with useful lives ranging from 3 to 10 years.
Maintenance and repairs are charged to operating expense as incurred.
Bank Owned Life Insurance
The Company has purchased life insurance policies on certain key officers. Bank owned life
insurance is recorded at the amount that can be realized under the insurance contract at the
balance sheet date, which is the cash surrender value adjusted for other charges or other
amounts due that are probable at settlement.
Goodwill and Other Intangible Assets
All goodwill resulted from business combinations prior to January 1, 2009 and represents the
excess of the purchase price over the fair value of the net assets of businesses acquired.
Goodwill and intangible assets acquired in a purchase business combination and determined to
have an indefinite useful life are not amortized, but tested for impairment at least annually.
The Company has selected December 31 as the date to perform the annual impairment test.
Other intangible assets consist of core deposit and acquired customer relationship intangible
assets arising from whole bank and other acquisitions. They are initially measured at fair
value and then are amortized on an accelerated method over their estimated useful lives. Core
deposit intangibles are being amortized over a range of 10 to 12 years and acquired customer
relationship intangible over 5 years.
Long Term Assets
Premises and equipment, core deposit and other intangible assets, and other long-term assets
are reviewed for impairment when events indicate their carrying amount may not be recoverable
from future undiscounted cash flows. If impaired, the assets are recorded at fair value.
Loan Commitments
Financial instruments include off-balance sheet credit instruments, such as commitments to
make loans and commercial letters of credit, issued to meet customer financing needs. The
face amount for these items represents exposure to loss, before considering customer
collateral or ability to repay. Such financial instruments are recorded when they are funded.
Income Taxes
Income tax expense is the total of the current year income tax due or refundable and the
change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the
expected future tax amounts for the temporary differences between carrying amounts and tax
basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if
needed, reduces deferred tax assets to the amount expected to be realized.
The Company adopted guidance issued by the FASB with respect to accounting for uncertainty in
income taxes as of January 1, 2007. A tax position is recognized as a benefit only if it is
"more likely than not" that the tax position would be sustained in a tax examination, with a
tax
F - 12
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
1.
Summary of Significant Accounting Policies (Continued)
Income Taxes (Continued)
examination being presumed to occur. The amount recognized is the largest amount of tax
benefit that is greater than 50% likely of being realized on examination. For tax positions
not meeting the "more likely than not" test, no tax benefit is recorded. The adoption had no
affect on the Company's financial statements.
The Company recognizes interest and/or penalties related to income tax matters in income tax
expense.
Insurance
Commissions from sales of insurance are recorded as income when earned.
Trust Department Assets
Assets held in fiduciary or agency capacities for customers are not included in the
accompanying consolidated statements of condition, since such items are not assets of the
Company. Fees associated with providing trust management services are recorded as earned, and
are included Non-Interest Income. At December 31, 2009, the Bank maintained 553
trust/fiduciary accounts, with total assets of $116.8 million under management as compared to
555 trust/fiduciary accounts with $105.8 million of total assets at December 31, 2008.
Employee Benefits
Pension expense is the net of service and interest cost, return on plan assets and
amortization of gains and losses not immediately recognized. Employee 401(k) expense is the
amount of matching contributions. Deferred compensation allocates the benefits over years of
service.
Stock-Based Compensation
Compensation cost is recognized for stock options and restricted stock awards issued to
employees, based on the fair value of these awards at the date of grant. A Black-Scholes model
is utilized to estimate the fair value of stock options, while the market price of the
Company's common stock at the date of grant is used for restricted stock awards. Compensation
cost is recognized over the required period, generally defined as the vesting period. For
awards with graded vesting, compensation cost is recognized on a straight-line basis over the
requisite service period for the entire award.
Employee Stock Ownership Plan
The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a
reduction of stockholders' equity. Compensation expense is based on the market price of shares as they are
committed to be released to participant accounts. Dividends on allocated ESOP shares reduce
retained earnings; dividends on unearned ESOP shares reduce debt and accrued interest.
Earnings per Share
Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. ESOP shares are considered outstanding for the
calculation unless unearned. All outstanding unvested share-based payment awards that contain
nonforfeitable dividends are considered participating securities for this calculation.
Diluted earnings per common share includes the dilutive effect of additional potential common shares
F - 13
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
1.
Summary of Significant Accounting Policies (Continued)
Earnings per Share (Continued)
issuable under stock options and awards using the treasury stock method. Earnings and
dividends per share are restated for all stock splits and stock dividends through the date of
issuance of the financial statements.
Other Comprehensive Income (Loss)
Comprehensive income (loss) consists of net income (loss) and other comprehensive income
(loss). Other comprehensive income (loss) includes unrealized gains and losses on securities
available-for-sale and changes in funded status of pension plans which are also recognized as
separate components of equity.
Loss Contingencies
Loss contingencies, including claims and legal actions arising in the ordinary course of
business, are recorded as liabilities when the likelihood of loss is probable and an amount or
range of loss can be reasonably estimated. Management does not believe there are such matters
that will have a material effect on the financial statements.
Restrictions on Cash
The Bank is required to maintain a reserve balance, as established by the Federal Reserve Bank
of New York. The required average total reserve for the 14-day maintenance period including
December 31, 2009 and 2008 was $850,000 and $850,000 respectively, which was represented by
cash on hand or on deposit with the Federal Reserve Bank. Balances with the Federal Reserve
Bank earn nominal interest.
Equity
Common stock has $0.01 par and 20,000,000 shares authorized. In addition, one million shares
of serial preferred stock were authorized. There is no serial preferred stock outstanding as
of December 31, 2009.
Dividend Restrictions
Banking regulations require maintaining certain capital levels and may limit the dividends
paid by the Bank to the holding company or by the holding company to shareholders.
Treasury Stock
Common stock that upon purchase is classified as treasury stock is recorded at cost. During
2009 and 2008, the Company purchased 34,645 and 2,700 shares classified as treasury stock at
an
average cost of $10.97 and $7.51 per share respectively. During 2009 and 2008, 77,131 and
6,850 shares of treasury stock were reissued at an average cost of $4.75 and $4.75,
respectively. The shares reissued during 2009 and 2008 were issued on the exercise of stock
options.
Fair Value of Financial Instruments
Fair values of financial instruments are estimated using relevant market information and other
assumptions, as more fully disclosed in a separate note. Fair value estimates involve
uncertainties and matters of significant judgment regarding interest rates, credit risk,
prepayments, and other factors, especially in the absence of broad markets for particular
items. Changes in assumptions or in market conditions could significantly affect the
estimates.
F - 14
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
1.
Summary of Significant Accounting Policies (Continued)
Segments
Internal financial information is primarily reported and aggregated in four lines of business;
banking, insurance, employee benefit consulting and risk management activities.
Reclassification
Some items in the prior year financial statements were reclassified to conform to the current
presentation.
Adoption of New Accounting Standards
In December 2007, the FASB issued guidance that establishes principles and requirements for
how an acquirer recognizes and measures in its financial statements the identifiable assets
acquired, the liabilities assumed, and any noncontrolling interest in an acquiree, including
the recognition and measurement of goodwill acquired in a business combination. The guidance
is effective for fiscal years beginning on or after December 15, 2008. The adoption of this
standard did not have an impact on the Company's results of operations or financial position.
In September 2006, the FASB issued guidance that defines fair value, establishes a framework
for measuring fair value and expands disclosures about fair value measurements. This guidance
also establishes a fair value hierarchy about the assumptions used to measure fair value and
clarifies assumptions about risk and the effect of a restriction on the sale or use of an
asset. The guidance was effective for fiscal years beginning after November 15, 2007. In
February 2008, the FASB issued guidance that delayed the effective date of this fair value
guidance for all nonfinancial assets and nonfinancial liabilities, except those that are
recognized or disclosed at fair value on a recurring basis (at least annually) to fiscal years
beginning after November 15, 2008, and interim periods within those fiscal years. The impact
of this adoption was not material.
In December 2007, the FASB issued guidance that changes the accounting and reporting for
minority interests, which is recharacterized as noncontrolling interests and classified as a
component of equity within the consolidated balance sheets. The guidance was effective as of
the beginning of the first fiscal year beginning on or after December 15, 2008. The
presentation and disclosure requirements have been applied retrospectively for all periods
presented. The adoption of this standard resulted in a reclassification of $60,000 from other
liabilities to equity as of December 31, 2006. The adoption of this standard did not have an
impact on the results of operations. The noncontrolling interest represents the preferred
shareholder minority interest in Oneida Preferred Funding Corp, a real estate investment
trust.
In June 2009, the FASB replaced
The Hierarchy of Generally Accepted Accounting Principles
,
with the
FASB Accounting Standards Codification
(The Codification) as the source of
authoritative accounting principles recognized by the FASB to be applied by nongovernmental
entities in the preparation of financial statements in conformity with GAAP. Rules and
interpretive releases of the Securities and Exchange Commission under authority of federal
securities laws are also sources of authoritative GAAP for SEC registrants. The Codification
was effective for financial statements issued for periods ending after September 15, 2009.
In June 2008, the FASB issued guidance which addresses whether instruments granted in
share-based payment transactions are participating securities prior to vesting and, therefore,
included in the earnings allocation in computing earnings per share (EPS) under the two-class
method. Unvested share-based payment awards that contain non-forfeitable rights to dividends
or dividend
F - 15
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
1.
Summary of Significant Accounting Policies (Continued)
Adoption of New Accounting Standards (Continued)
equivalents (whether paid or unpaid) are participating securities and shall be included in the
computation of EPS pursuant to the two-class method. This guidance was effective for
financial statements issued for fiscal years beginning after December 15, 2008, and interim
periods within those years. All prior-period EPS data presented were to be adjusted
retrospectively (including interim financial statements, summaries of earnings and, selected
financial data) to conform to the provisions of this guidance. The impact of this adoption was
not material.
In December 2008, the FASB issued guidance on an employer's disclosure about plan assets of a
defined benefit pension or post retirement plan. These additional disclosures include
disclosure of investment policies and fair value disclosures of plan assets, including fair
value hierarchy. The guidance also includes a technical amendment that requires a nonpublic
entity to disclose net period benefit cost for each annual period for which a statement of
income is presented. This guidance is effective for fiscal years ending after December 15,
2009. Upon initial application, provisions of the new guidance are not required for earlier
periods that are presented for comparative purposes. The new disclosures have been presented
in the notes to the consolidated financial statements.
In April 2009, the FASB amended existing guidance for determining whether impairment is
other-than-temporary for debt securities. The guidance requires an entity to assess whether
it intends to sell, or it is more likely than not that it will be required to sell, a security
in an unrealized loss position before recovery of its amortized cost basis. If either of
these criteria is met, the entire difference between amortized cost and fair value is
recognized as impairment in earnings. For securities that do not meet the aforementioned
criteria, the amount of impairment is split into two components as follows: 1)
other-than-temporary impairment (OTTI) related to other factors, which is recognized in other
comprehensive income and 2) OTTI related to credit loss, which must be recognized in the
income statement. The credit loss is defined as the difference between the present value of
the cash flows expected to be collected and the amortized cost basis. Additionally,
disclosures about other-than-temporary impairments for debt and equity securities were
expanded.
This guidance was effective for interim and annual reporting periods ending after June 15,
2009, with early adoption permitted for periods ending after March 15, 2009. This guidance
was adopted April 1, 2009. There was no transfers between retained earnings and accumulated
other comprehensive income upon adoption of this guidance. As a result of implementing this
guidance, the amount of other-than-temporary impairment recognized in the income statement for
the year ended December 31, 2009 was $2.3 million. Had the standard not been issued, the
other-than-
temporary impairment that would have been recognized in income for the period would have been
$2.9 million.
In April, 2009, the FASB issued guidance that emphasizes that the objective of a fair value
measurement does not change even when market activity for the asset or liability has decreased
significantly. Fair value is the price that would be received for an asset sold or paid to
transfer a liability in an orderly transaction (that is, not forced liquidation or distressed
sale) between market participants at the measurement date under current market conditions.
When observable transactions or quoted prices are not considered orderly, then little if any
weight should be assigned to the indication of the asset or liability's fair value.
Adjustments to those transactions or prices should be applied to determine the appropriate
fair value. The guidance, which was applied prospectively, was effective for interim and
annual reporting periods ending after June 15, 2009, early adoption for periods ending after
March 15, 2009. The adoption of this guidance did not have an impact on the consolidated
financial statements.
F - 16
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
1.
Summary of Significant Accounting Policies (Continued)
Adoption of New Accounting Standards (Continued)
In August 2009, the FASB amended existing guidance for the fair value measurement of
liabilities by clarifying that in circumstances in which a quoted price in an active market
for the identical liability is not available, a reporting entity is required to measure fair
value using a valuation technique that uses the quoted price of the identical liability when
traded as an asset, quoted prices for similar liabilities or similar liabilities when traded
as assets, or that is consistent with existing fair value guidance. The amendments in this
guidance also clarify that both a quoted price in an active market for the identical liability
at the measurement date and the quoted price for the identical liability when traded as an
asset in an active market when no adjustments to the quoted price of the asset are required
are Level 1 fair value measurements. The guidance was effective for the first reporting period
beginning after issuance. The adoption of this guidance did not have an impact on the
consolidated financial statements.
Effect of Newly Issued But Not Yet Effective Accounting Standards
In June 2009, the FASB amended previous guidance related to transfers of financial assets and
eliminates the concept of a qualifying special purpose entity. This guidance must be applied
as of the beginning of each reporting entity's first annual reporting period that begins after
November 15, 2009, for interim periods within that first annual reporting period and for
interim and annual reporting periods thereafter. This guidance must be applied to transfers
occurring on or after the effective date. Additionally, on and after the effective date, the
concept of a qualifying special purpose entity is no longer relevant for accounting purposes.
Therefore, formerly qualifying special purpose entities should be evaluated for consolidation
by reporting entities on and after the effective date in accordance with the applicable
consolidation guidelines. The disclosure provisions were also amended and apply to transfers
that occurred both before and after the effective date of this guidance. The Company does not
expect that the adoption to have a material impact on the Company's consolidated financial
statements.
In June 2009, the FASB amended guidance for consolidation of variable interest entity guidance
by replacing the quantitative-based risks and rewards calculation for determining which
enterprise, if any, has a controlling financial interest in a variable interest entity with an
approach focused on identifying which enterprise has the power to direct the activities of a
variable interest entity that most significantly impact the entity's economic performance and
(1) the obligation to absorb losses of the entity or (2) the right to receive benefits from
the entity. Additional disclosures about an
enterprise's involvement in variable interest entities are also required. This guidance is
effective as of the beginning of each reporting entity's first annual reporting period that
begins after November 15, 2009, for interim periods within that first annual reporting period,
and for interim and annual reporting periods thereafter. Early adoption is prohibited. The
Company does not expect that the adoption to have a material impact on the Company's
consolidated financial statements.
F - 17
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
2. Investment Securities and Mortgage-Backed Securities
The following table summarizes the amortized cost and fair value of the available-for-sale
securities and held-to-maturity investment securities portfolio at December 31, 2009 and 2008
and the corresponding amounts of gross unrealized gains and losses recognized in accumulated
other comprehensive income (loss) are as follows. There were no held-to-maturity investments
at December 31, 2008.
2009
Amortized
Gross Unrealized
Fair
Cost
Gains
Losses
Value
Available-for-sale
Investment Securities
Debt securities:
U. S. Agencies
$
23,951,698
$
162,684
$
230,648
$
23,883,734
Corporate
16,739,255
246,263
779,971
16,205,547
Trust preferred securities
9,435,890
—
3,515,126
5,920,764
State and municipals
17,643,641
486,916
142,555
17,988,002
Small Business Administration
12,243
—
143
12,100
$
67,782,727
$
895,863
$
4,668,443
$
64,010,147
Mortgage-backed securities
Fannie Mae
$
16,418,038
$
548,210
$
42,357
$
16,923,891
Freddie Mac
14,901,761
574,751
5,833
15,470,679
Government National Mortgage Assoc.
11,982,885
330,582
15,243
12,298,224
Collateralized Mortgage Obligations
6,758,271
49,957
978,591
5,829,637
$
50,060,955
$
1,503,500
$
1,042,024
$
50,522,431
Total available-for-sale
$
117,843,682
$
2,399,363
$
5,710,467
$
114,532,578
Held-to-Maturity
Investment Securities
Debt securities:
U. S. Agencies
$
22,975,417
$
113,368
$
164,311
$
22,924,474
State and municipals
8,615,302
335,117
25,410
8,925,009
Small Business Administration
886,546
—
3,865
882,681
$
32,477,265
$
448,485
$
193,586
$
32,732,164
Mortgage-backed securities
Fannie Mae
$
9,964,536
$
42,842
$
—
$
10,007,378
Government National Mortgage Assoc.
5,250,349
3,629
27,276
5,226,702
$
15,214,885
$
46,471
$
27,276
$
15,234,080
Total held-to-maturity
$
47,692,150
$
494,956
$
220,862
$
47,966,244
F - 18
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
2.
Investment Securities and Mortgage-Backed Securities (Continued)
2008
Amortized
Gross Unrealized
Fair
Cost
Gains
Losses
Value
Available-for-sale
Investment Securities
Debt securities:
U. S. Agencies
$
21,002,009
$
215,847
$
13,254
$
21,204,602
Corporate
16,052,259
—
3,378,655
12,673,604
Trust preferred securities
11,749,677
—
2,541,750
9,207,927
State and municipals
17,273,625
223,495
149,804
17,347,316
Small Business Administration
13,096
—
188
12,908
$
66,090,666
$
439,342
$
6,083,651
$
60,446,357
Mortgage-backed securities
Fannie Mae
19,640,184
$
282,417
$
82,617
$
19,839,984
Freddie Mac
22,857,048
416,112
82,672
23,190,488
Government National Mortgage Assoc.
23,938,697
533,185
24,422
24,447,460
Collateralized Mortgage Obligations
7,568,970
—
730,105
6,838,865
$
74,004,899
$
1,231,714
$
919,816
$
74,316,797
Total available for sale
$
140,095,565
$
1,671,056
$
7,003,467
$
134,763,154
The amortized cost and fair value of the investment securities portfolio are shown by
expected maturities. Expected maturities will differ from contractual maturities because
borrowers may have the right to call or prepay obligations with or without call or prepayment
penalties.
December 31, 2009
Amortized
Fair
Cost
Value
Available-for-sale
Within one year
$
6,055,255
$
5,960,786
After one year through five years
15,477,926
15,267,625
After five years through ten years
28,431,307
28,772,022
After ten years
17,818,239
14,009,714
Total
$
67,782,727
$
64,010,147
Held-to-maturity
Within one year
$
53,179
$
53,593
After one year through five years
7,160,000
7,272,752
After five years through ten years
19,602,014
19,554,985
After ten years
5,662,072
5,850,834
Total
$
32,477,265
$
32,732,164
December 31, 2008
Amortized
Fair
Cost
Value
Available-for-sale
Within one year
$
3,645,788
$
3,659,301
After one year through five years
16,711,146
14,686,950
After five years through ten years
25,639,849
25,643,133
After ten years
20,093,883
16,456,973
Total
$
66,090,666
$
60,446,357
F - 19
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
2.
Investment Securities and Mortgage-Backed Securities (Continued)
Sales and write-downs of available-for-sale securities were as follows:
2009
2008
2007
Proceeds
$
31,953,561
$
31,666,785
$
22,928,266
Gross Gains
$
790,839
$
200,727
$
372,074
Gross Losses
$
2,297,838
$
1,159,718
$
19,249
The tax (benefit) provision related to these net realized gains and losses was
($583,058), ($371,034) and $136,508 respectively.
Investment securities with a carrying value of $112,007,067 and $79,845,752 at December 31,
2009 and 2008 respectively were pledged to collateralize borrowing arrangements, secure public
deposits and for other purposes required or permitted by law. At year-end 2009 and 2008,
there were no
holdings of securities of any one issuer, other than the U.S. Government, its agencies and
government sponsored enterprises, in an amount greater than 10% of stockholders' equity.
The following table summarizes the investment securities with unrealized losses at December
31, 2009 and 2008 aggregated by major security type and length of time in a continuous
unrealized loss position:
December 31, 2009
Less than 12 Months
More than 12 Months
Total
Fair
Unrealized
Fair
Unrealized
Fair
Unrealized
Description of Securities
Value
Loss
Value
Loss
Value
Loss
Available-for-Sale
U. S. Agencies
$
15,767,782
$
230,648
$
—
$
—
$
15,767,782
$
230,648
Corporate
—
—
7,167,660
779,971
7,167,660
779,971
Trust preferreds
5,920,764
3,515,126
5,920,764
3,515,126
State and municipals
1,914,637
17,465
2,921,616
125,090
4,836,253
142,555
Small Business Administration
12,100
143
—
—
12,100
143
Fannie Mae
2,621,059
42,357
—
—
2,621,059
42,357
Freddie Mac
464,352
5,833
—
—
464,352
5,833
Government National Mortgage
Assoc
1,418,705
15,243
—
—
1,418,705
15,243
Collateralized Mortgage
Obligations
1,400,904
37,314
3,544,626
941,277
4,945,530
978,591
Total available-for-sale
$
23,599,539
$
349,003
$
19,554,666
$
5,361,464
$
43,154,205
$
5,710,467
Held-to-Maturity
U. S. Agencies
$
11,812,292
$
164,311
$
—
$
—
$
11,812,292
$
164,311
State and municipals
2,157,214
25,410
—
—
2,157,214
25,410
Small Business Administration
882,681
3,865
—
—
882,681
3,865
Government National Mortgage
Assoc
3,015,496
27,276
—
—
3,015,496
27,276
Total held-to-maturity
$
17,867,683
$
220,862
$
—
$
—
$
17,867,683
$
220,862
F - 20
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
2. Investment Securities and Mortgage-Backed Securities (Continued)
December 31, 2008
Less than 12 Months
More than 12 Months
Total
Fair
Unrealized
Fair
Unrealized
Fair
Unrealized
Description of Securities
Value
Loss
Value
Loss
Value
Loss
Available-for-sale
U. S. Agencies
$
1,588,769
$
13,254
$
—
$
—
$
1,588,769
$13,254
Corporate
7,203,397
676,419
2,070,206
2,702,236
9,273,603
3,378,655
Trust preferreds
9,207,927
2,541,750
9,207,927
2,541,750
State and municipals
4,346,876
149,804
—
—
4,346,876
149,804
Small Business Administration
12,908
188
—
—
12,908
188
Fannie Mae
4,481,752
60,422
1,192,322
22,195
5,674,074
82,617
Freddie Mac
3,919,533
79,349
119,495
3,323
4,039,028
82,672
Government National Mortgage
Assoc
1,115,863
24,422
—
—
1,115,863
24,422
Collateralized Mortgage
Obligations
6,837,590
730,103
1,275
2
6,838,865
730,105
Total available-for-sale
$
29,506,688
$
1,733,961
$
12,591,225
$
5,269,506
$
42,097,913
$7,003,467
As of December 31, 2009, the Company's security portfolio consisted of 286 securities, 73
of which were in an unrealized loss position. The majority of the unrealized losses are
related to the Company's agency, mortgage-backed securities, corporate and trust preferred
securities as discussed below.
U.S. Agency and Agency Mortgage-Backed Securities
Fannie Mae, Freddie Mac, Ginnie Mae and the Small Business Administration guarantee the
contractual cash flows of our agency and mortgage-backed securities. Fannie Mae and Freddie
Mac are institutions which the government has affirmed its commitment to support. Our Ginnie
Mae mortgage-backed securities are backed by the full faith and credit of the U.S. Government.
At December 31, 2009, of the forty-two U.S. Government sponsored enterprise agency and
mortgage-backed securities in an unrealized loss position in our available-for-sale and
held-to-maturity portfolios, none were in a continuous unrealized loss position for 12 months
or more. The unrealized losses at December 31, 2009 were primarily attributable to changes in
interest rates and illiquidity, and not credit quality, and because the Company does not have
the intent to sell these agency and mortgage-backed securities and it is likely that it will
not be required to sell the securities before their anticipated recovery, the Company does not
consider these securities to be other-than-temporarily impaired at December 31, 2009.
Non-Agency Collateralized Mortgage Obligations.
All of our non-agency collateralized mortgage obligations carry various amounts of credit
enhancement and none are collateralized with subprime loans. These securities were purchased
based on the underlying loan characteristics such as loan to value ratio, credit scores,
property type, location and the level of credit enhancement. Current characteristics of each
security are reviewed regularly by management. If the level of credit loss coverage is
sufficient, it indicates that we will receive all of the originally scheduled cash flows.
F - 21
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
2.
Investment Securities and Mortgage-Backed Securities (Continued)
At December 31, 2009, of the five non-agency collateralized mortgage obligations in an
unrealized loss position; four were in a continuous unrealized loss position of 12 months or
more. All were rated Aaa or better at time of purchase. Two are currently rated below
investment grade. We have assessed these securities in an unrealized loss position at December
31, 2009 and determined that the decline in fair value was temporary except for one
collateralized mortgage obligation. The Bank currently has a $1.0 million obligation rated
below investment grade that based on expected cash flows, delinquencies and credit support
that the Company has considered impaired. The unrealized losses at December 31, 2009 and 2008
were $237,000 and $224,000 respectively. The one security had an OTTI loss of $25,000 of
which $13,100 was recorded as expense during the period and $12,000 was recorded in other
comprehensive income. This security remains classified as available-for-sale at December 31,
2009. For the other securities, we believe the decline in fair value was caused by the
significant widening in liquidity spreads across sectors related to the continued illiquidity
and uncertainty in the markets and not the credit quality of the individual issuer or
underlying assets. In making this determination, we considered the period of time the
securities were in a loss position, the percentage decline in comparison to the securities'
amortized cost, the financial condition of the issuer, and the delinquency or default rates of
the underlying collateral. The Company monitors to insure it has adequate credit support. In
addition, we do not intend to sell these securities and it is likely that it will not be
required to sell the securities before their anticipated recovery. Included in the four
securities with unrealized losses considered temporary was a $1.4 million collateralized
mortgage obligation, maturing August 25, 2035 which has an interest rate of 5.5% and is rated
below investment grade. The unrealized loss on this security was $422,000 and $90,000 at
December 31, 2009 and 2008, respectively.
Corporate Debt and Municipal Securities
At December 31, 2009, of the seventeen corporate debt and municipal securities in an
unrealized loss position, seven were in a continuous unrealized loss position of 12 months or
more. We have assessed these securities and determined that the decline in fair value was
temporary. In making this determination, we considered the period of time the securities were
in a loss position, the percentage decline in comparison with the securities' amortized cost,
the financial condition of the issuer, and the delinquency or default rates based on the
applicable bond ratings. In addition, we do not have the intent to sell these securities and
it is not more likely than not that we will be required to sell these securities before the
recovery of their cost basis, which may be at maturity. Included in the nine securities whose
unrealized loss position exceeds 12 months was a $2.0 million General Motors Acceptance Corp.
(GMAC) bond, maturing October 15, 2010 which has a rating below investment grade. This is a
variable rate note based on the three month Treasury bill whose unrealized loss was $100,000
and $1.1 million at December 31, 2009 and December 31, 2008 respectively. In addition, also
included was a $2.5 million Sallie Mae (SLMA) bond, maturing May 1, 2012 which is rated below
investment grade. This is a variable rate note based on the consumer price index. The
unrealized loss at December 31, 2009 and December 31, 2008 was $402,000 and $875,000,
respectively. Both GMAC and SLMA are paying as agreed.
Trust Preferred Securities
The Company currently has $5.9 million invested in nine trust preferred securities as of
December 31, 2009 whose unrealized losses have been in a continuous loss position exceeding 12
months or
F - 22
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
2.
Investment Securities and Mortgage-Backed Securities (Continued)
more. Of the $5.9 million, $1.9 million have variable rates of interest. $1.9 million of the
investments are on nonaccrual as of December 31, 2009. The unrealized losses at December 31,
2009 and December 31, 2008 on the nine securities totaled $3.5 million and $2.5 million
respectively. All of the securities are rated below investment grade as of December 31, 2009.
The issuers of these securities are primarily banks, but some of the pools do include a
limited number of insurance companies. The Company uses the OTTI evaluation model to compare
the present value of expected cash flows to the previous estimates to ensure there are no
adverse changes in cash flows during the quarter. The OTTI model considers the structure and
term of the trust preferred securities and the financial condition of the underlying issuers,
the timing and amount of interest and principal payments of the underlying issuers, and the
allocation of the payments to the note classes. The current estimate of expected cash flows
is based on the most recent trustee reports and any other relevant market information
including announcements of interest payment deferrals or defaults of underlying trust
preferred securities. Assumptions used in the models are as follows:
Significant inputs at December 31, 2009
Annual prepayment
0% annually, 100% at maturity
Projected specific defaults/deferrals
19.50% - 52.26
%
Projected severity of loss on specific
defaults/deferrals
85% - 100
%
Projected additional defaults:
QTR 1 — 2010
1% (not annualized)
Thereafter
0.50% applied annually
Projected severity of loss on additional defaults
85% - 100
%
Present value discount rates
5.39% - 9.48
%
The discount rates range can vary depending on the index the instruments are tied to as well
as the spread for each instrument. In addition, three of the nine trust preferred securities
are fixed rate instruments. Upon completion of the December 31, 2009 analysis, our model
indicated other-than-temporary impairment on eight of these securities, all of which
experienced additional defaults or deferrals during the period.
These eight securities had OTTI losses of $2.9 million of which $2.3 million was recorded as
expense during the period and $600,000 was recorded in other comprehensive income. These
eight securities remain classified as available-for-sale at December 31, 2009. It is possible
that the underlying collateral of these securities will perform worse than expectations
including an increase in deferrals/defaults above projections, which may lead to adverse
changes in cash flows on these securities and potential future other-than-temporary impairment
losses. Events that may trigger material declines in fair value for these securities in the
future would include, but are not limited to, deterioration of credit metrics, such as
significantly higher levels of defaults, and severity of loss on the underlying collateral and
further illiquidity.
F - 23
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
2.
Investment Securities and Mortgage-Backed Securities (Continued)
The table below presents a roll-forward of the credit losses recognized in earnings for the
twelve months ended December 31, 2009:
Beginning Balance
$
—
Amounts related to credit loss for which an other-than
temporary impairment was not previously recognized
2,294,841
Additions/Subtractions
Amounts realized for securities sold during the period
—
Amounts related to securities for which the company intends
to sell or that it will be more likely than not that the company
will be required to sell prior to recovery of amortized cost basis
—
Reductions for increases in cash flows expected to be collected
that are recognized over the remaining life of the security
—
Increases to the amount related to the credit loss for which
other-than-temporary was previously recognized
—
Ending Balance December 31, 2009
$
2,294,841
The Company has a $1.0 million Lehman Brothers Holding Inc. medium term fixed rate note.
The security has been considered other-than-temporarily impaired as a result of Lehman
Brothers having filed for Chapter 11 bankruptcy protection on September 15, 2008. As a
result, the Company recorded a non-cash charge to earnings of $1.0 million during 2008.
Unrealized losses on other investments have not been recognized into income because the
issuer(s) securities are of investment grade (except as indicated above), management does not
intend to sell and it is more likely than not that management would be required to sell the
securities prior to their anticipated recovery, and the decline in fair value is largely due
to changes in interest rates. The fair value is expected to recover as the bond(s) approach
maturity.
3.
Loans Receivable
The components of loans receivable at December 31 are as follows:
2009
2008
Residential
$
144,118,057
$
148,097,760
Consumer loans
43,010,889
46,817,598
Commercial real estate
72,127,037
67,218,848
Commercial loans
38,796,600
42,241,770
298,052,583
304,375,976
Allowance for loan losses
(2,900,587
)
(2,624,283
)
Net loans
$
295,151,996
$
301,751,693
At December 31, 2009 and 2008 loans to officers and directors were approximately $7.1
million and $4.1 million respectively. During 2009 and 2008, $1.6 million and $1.7 million of
new loans were made to officers and directors respectively. Net pay downs and repayments in
aggregate on loans to officers and directors were approximately $1.6 million and $883,000
during 2009 and 2008 respectively. Effect of changes in the composition of related parties
was approximately $3.1 million and $124,000 during 2009 and 2008 respectively.
F - 24
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
3.
Loans Receivable (Continued)
At December 31, 2009, Federal Home Loan Bank advances are collateralized by residential
mortgages in the amount of $72,574,283 pledged under a blanket collateral agreement.
An analysis of the change in the allowance for loan losses for the years ended December 31 is
as follows:
2009
2008
2007
Balance at beginning of year
$
2,624,283
$
2,511,310
$
2,080,913
Loans charged off
(693,066
)
(526,196
)
(230,877
)
Recoveries
209,640
114,169
135,703
Provision for loan losses
760,000
525,000
—
NBV Acquisition
—
—
525,571
Balance at end of year
$
2,900,857
$
2,624,283
$
2,511,310
Impaired loans were as follows:
2009
2008
2007
Impaired loans
$
2,158,500
$
—
$
—
Allocated allowance for loan losses
$
569,978
$
—
$
—
Average of impaired loans during the year
$
1,060,019
$
—
$
—
Cash-basis interest income recognized
$
106,862
$
—
$
—
Nonperforming loans were as follows:
2009
2008
Loans past due over 90 days still on accrual
$
—
$
—
Nonaccrual loans
$
551,409
$
512,612
Nonperforming loans includes both smaller balance homogeneous loans that are collectively
evaluated for impairment and individually classified impaired loans.
Loans having carrying values of $434,882 and $259,649 were transferred to foreclosed assets in
2009 and 2008, respectively.
4.
Fair Value
Fair value is the exchange price that would be received for an asset or paid to transfer a
liability (exit price) in the principal or most advantageous market for the asset or liability
in an orderly transaction between market participants on the measurement date. There are
three levels of inputs that may be used to measure fair values:
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets
that the entity has the ability to access as of the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices such as quoted
prices for similar assets or liabilities; quoted prices in markets that are not active;
or other inputs that are observable or can be corroborated by observable market data.
F - 25
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
4.
Fair Value (Continued)
Level 3: Significant unobservable inputs that reflect a reporting entity's own
assumptions about the assumptions that market participants would use in pricing an asset
or liability.
The company uses the following methods and significant assumptions to estimate the fair value
of each type of financial instrument.
Securities
: The fair values of trading securities and investment securities are
determined by quoted market prices, if available (Level 1 inputs). For securities where
quoted prices are not available, fair values are calculated based on market price of similar
securities (Level 2). For securities where quoted prices or market prices of similar
securities are not available, fair values are calculated using discounted cash flows or other
market indicators (Level 3). Discounted cash flows are calculated using spread to swap and
LIBOR curves that are updated to incorporate loss severities, volatility, credit spread and
optionality. Defaults and deferrals on individual securities are reviewed and incorporated
into the calculations. During times when trading is more liquid, broker quotes are used (if
available) to validate the model .
Trust Preferred Securities which are issued by financial institutions and insurance companies
were historically priced using Level 2 inputs. The decline in the level of observable inputs
and market activity in this class of investments by the measurement date has been significant
and resulted in unreliable external pricing. Broker pricing and bid/ask spreads, when
available, vary widely. The once active market has become comparatively inactive. As such,
these investments are now priced using Level 3 inputs.
The Company has developed an internal model for pricing these securities. Information such as
historical and current performance of the underlying collateral, deferral/default rates,
collateral coverage ratios, break in yield calculations, cash flow projections, liquidity and
credit premiums required by a market participant, and financial trend analysis with respect to
the individual issuing financial institutions and insurance companies, are utilized in
determining individual security valuations. Due to current market conditions as well as the
limited trading activity of these securities, the market value of the securities is highly
sensitive to assumption changes and market volatility.
Corporate securities were historically priced using Level 2 inputs. Due to the lack of market
of similar type investments, one of our corporate securities is considered Level 3. The
Company does
obtain some broker quotes on this investment based on trading desk information in which the
prices are heavily influenced by unobservable market inputs.
Common and preferred equity securities are generally priced using Level 1 or Level 2 inputs
due to the market activity of these types of securities. One of the preferred securities is
considered level 3 pricing due to the limited trading activity of the individual security in
the market and lack of certain brokers providing quotes on this type of security. The company
does obtain available, if any broker quotes, reviews past history of contractual payments and
financial condition of the corporation in determining an appropriate market value for this
type of security.
Impaired Loans:
Estimates of fair value used for other collateral supporting
commercial loans generally is not observable in the marketplace and therefore, such valuations
have been classified as Level 3. Impaired loans had a principal balance of $2.2 million with a
valuation allowance of $570,000 as of December 31, 2009 resulting in an additional provision
for loan losses of $570,000 for the year then ended. There were no impaired loans as of
December 31, 2008.
F - 26
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
4.
Fair Value (Continued)
Loan Servicing Rights:
Fair value is based on market prices for comparable mortgage
servicing contracts, when available, or alternatively based on a valuation model that
calculates the present value of estimated future net servicing income.
Loans Held for Sale:
Loans held for sale are carried at the lower of cost or fair
value, as determined by outstanding commitments, from third party investors.
Assets measured at fair value on a recurring basis for which the Company has elected the fair
value option, are summarized below:
Fair Value Measurements
at December 31, 2009 Using
Quoted Prices in
Significant
Active Markets
Other
Significant
for Identical
Observable
Unobservable
Carrying
Assets
Inputs
Inputs
Value
(Level 1)
(Level 2)
(Level 3)
Assets:
Trading securities
Common and preferred equities
$
7,627,280
$
—
$
5,568,437
$
2,058,843
Available for sale securities
U.S. Agency
23,883,734
—
23,883,734
—
Corporate
16,205,547
—
13,955,547
2,250,000
Trust preferreds
5,920,764
—
—
5,920,764
State and municipal
17,988,002
—
17,988,002
—
Small Business Administration
12,100
—
12,100
—
Residential mortgage-backed securities
44,692,794
—
44,692,794
—
Collateralized mortgage obligations
5,829,637
—
5,829,637
—
Total
$
122,159,858
$
—
$
111,930,251
$
10,229,607
Fair Value Measurements
at December 31, 2008 Using
Quoted Prices in
Significant
Active Markets
Other
Significant
for Identical
Observable
Unobservable
Carrying
Assets
Inputs
Inputs
Value
(Level 1)
(Level 2)
(Level 3)
Assets:
Trading securities
Common and preferred equities
$
5,941,476
$
—
$
3,921,096
$
2,020,380
Available for sale securities
U.S. Agency
21,204,602
—
21,204,602
—
Corporate
12,673,604
—
11,173,604
1,500,000
Trust preferreds
9,207,927
—
—
9,207,927
State and municipal
17,347,316
—
17,347,316
—
Small Business Administration
12,908
—
12,908
—
Residential mortgage-backed securities
67,477,932
—
66,709,763
768,169
Collateralized mortgage obligations
6,838,865
—
6,838,865
—
Total
$
140,704,630
$
—
$
127,208,154
$
13,496,476
F - 27
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
4.
Fair Value (Continued)
The table below presents a reconciliation for all assets measured at fair value on a recurring
basis using significant unobservable inputs (Level 3) for the year ended December 31, 2009:
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
Trading
Trust
Collateralized
Securities
Corporate
Preferreds
Mortgage Obligations
Total
Beginning balance, January 1, 2009
$
2,020,380
$
1,500,000
$
9,207,927
$
768,169
$
13,496,476
Total gains or losses (realized/unrealized)
Included in earnings
Interest income on securities
(39,228
)
440
(18,890
)
6,948
(50,730
)
Other changes in fair value
77,691
—
—
—
77,691
Net impairment losses recognized in earnings
—
—
(2,281,741
)
(13,100
)
(2,294,841
)
Included in other comprehensive income
—
749,560
(986,532
)
(184,769
)
(421,741
)
Purchases, issuances, and settlements
—
—
—
—
—
Transfers in and/or out of Level 3
—
—
—
(577,248
)
(577,248
)
Ending balance, December 31, 2009
$
2,058,843
$
2,250,000
$
5,920,764
$
—
$
10,229,607
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
Trading
Trust
Collateralized
Securities
Corporate
Preferreds
Mortgage Obligations
Total
Beginning balance, January 1, 2008
$
1,996,527
$
2,360,000
$
6,094,996
$
—
$
10,451,523
Total gains or losses (realized/unrealized)
Included in earnings
Interest income on securities
(39,228
)
440
(23,271
)
139
(61,920
)
Other changes in fair value
63,081
—
(8,384
)
—
54,697
Gains (losses) on sale of securities
—
—
—
—
—
Included in other comprehensive income
—
(860,440
)
(1,167,178
)
(64,272
)
(2,091,890
)
Purchases, issuances, and settlements
—
—
—
—
—
Transfers in and/or out of Level 3
—
—
4,311,764
832,302
5,144,066
Ending balance, December 31, 2008
$
2,020,380
$
1,500,000
$
9,207,927
$
768,169
$
13,496,476
Mortgage servicing rights are carried at the lower of cost or fair value. There was no
valuation allowance for mortgage servicing rights as of December 31, 2009 and 2008, and no
charges included in earnings were reported for the years then ended.
The carrying amounts and estimated fair values of financial instruments, at December 31, 2009
and December 31, 2008 are as follows:
F - 28
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
4.
Fair Value (Continued)
2009
2008
Carrying
Estimated
Carrying
Estimated
Amount
Fair Value
Amount
Fair Value
(Amounts in thousands)
Financial assets:
Cash and cash equivalents
$
39,537
$
39,537
$
13,294
$
13,294
Investment securities, held-to-maturity
47,692
47,966
N/A
N/A
Loans held for sale
687
700
$
741
$
749
Loans receivable, net
295,152
297,331
301,752
317,625
Federal Home Loan Bank stock
2,665
N/A
3,784
N/A
Accrued interest receivable
2,469
2,469
2,659
2,659
Financial liabilities:
Deposits
$
489,364
$
476,171
$
425,698
$
421,101
Federal Home Loan Bank advances
31,000
31,335
52,825
52,788
Notes payable
—
—
12
12
Accrued interest payable
117
117
332
332
The methods and assumptions, not previously presented, used to estimate fair value are
described as follows:
Carrying amount is the estimated fair value for cash and cash equivalents, interest bearing
deposits, accrued interest receivable and payable, demand deposits, short-term debt, and
variable rate loans or deposits that reprice frequently and fully. The method for determining
the fair values for securities were described previously. For fixed rate loans or deposits
and for variable rate loans or deposits with infrequent repricing or repricing limits, fair
value is based on discounted cash flows using current market rates applied to the estimated
life and credit risk. Fair value of debt is based on current rates for similar financing. It
is not practicable to determine the fair value of Federal Home Loan Bank stock due to
restrictions placed on its transferability. The fair value of off-balance-sheet items is not
considered material.
Fair Value Option
The Company adopted "The Fair Value Option for Financial Assets and Liabilities" on January 1,
2008. This guidance permits, but does not require, companies to measure many financial
instruments and certain other items at fair value. The decision to elect the fair value
option is made individually for each instrument and is irrevocable once made. Changes in fair
value for the selected instruments are recorded in earnings. The Company has elected to adopt
this standard for common and preferred equity securities as they do not have stated maturity
values and the fair value fluctuates with market changes and using fair value appears to be an
appropriate measure.
The following table summarizes the impact of adopting the fair value option as of January 1,
2008:
F - 29
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
4. Fair Value (Continued)
Balance Sheet
Balance Sheet
Net Gain/(Loss)
January 1, 2008
January 1, 2008
upon
after Adoption of
Prior to Adoption
Adoption
Fair Value Option
Securities available for sale transferred to trading account assets:
Amortized cost
$
13,655,404
$
(2,532,235
)
$
11,123,169
Unrealized depreciation
(2,532,235
)
2,532,235
—
Net transferred to
trading account
$
11,123,169
$
—
$
11,123,169
Cumulative effect of adoption (pre-tax)
(2,532,235
)
Tax impact
1,012,894
Cumulative effect adjustment (net of tax)
Decrease to retained earnings
$
(1,519,341
)
The following table presents the amount of gains and losses from fair value changes
included in income before income taxes for financial assets and liabilities carried at fair
value for the years ended December 31, 2009 and 2008:
Changes in Fair Values for the year ended December 31, 2009
for Items Measured at Fair Value
Pursuant to Election of the Fair Value Option
Total Changes
in Fair Values
Other
Included in
Gains and
Interest
Interest
Current Period
Losses
Income
Expense
Earnings
Trading securities
$
1,725,032
$
(39,228
)
$
—
$
1,685,804
Changes in Fair Values for the year ended December 31, 2008
for Items Measured at Fair Value
Pursuant to Election of the Fair Value Option
Total Changes
in Fair Values
Other
Included in
Gains and
Interest
Interest
Current Period
Losses
Income
Expense
Earnings
Trading securities
$
(7,674,699
)
$
(39,228
)
$
—
$
(7,713,927
)
5. Secondary Mortgage Market Activities
Mortgage loans serviced for others are not included in the accompanying consolidated
statements of condition. The principal balance of these loans at year end are as follow:
2009
2008
Mortgage loan portfolios serviced for:
Freddie Mac
$
111,043,793
$
83,133,952
Federal Home Loan Bank
$
15,252,193
$
18,970,092
F -30
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
5. Secondary Mortgage Market Activities (Continued)
Custodial escrow balances maintained in connection with serviced loans were approximately
$1,528,000 and $1,275,000 at December 31, 2009 and 2008, respectively.
Activity for mortgage servicing rights and the related valuation allowance follows:
2009
2008
2007
Balance at beginning of year
$
320,210
$
332,987
$
326,081
Additions
331,104
95,935
117,026
Disposals
—
—
—
Amortized to expense
(150,564
)
(108,712
)
(110,120
)
Balance at end of year
$
500,750
$
320,210
$
332,987
Valuation Allowance
$
—
$
—
$
—
The fair value of mortgage servicing rights approximated book value as of year-end 2009
and 2008. Fair value at year-end 2009 was determined using a discount rate of 6.25%,
prepayment speed of 20% and a weighted average default rate of 5%. Fair value at year end
2008 was determined using a discount rate of 7.5%, prepayment speed of 20% and a weighted
average default rate of 5%.
The weighted average amortization period is 8 years. Estimated amortization expense for each
of the next five years is:
2010
$
142,562
2011
103,927
2012
75,382
2013
54,346
2014
38,888
6. Premises and Equipment
Premises and equipment consist of the following at December 31:
2009
2008
Land
$
2,814,483
$
2,814,483
Buildings
23,803,681
22,914,538
Equipment and fixtures
10,605,092
10,262,948
Construction in progress
44,312
184,692
37,267,568
36,176,661
Accumulated depreciation
(15,993,052
)
(14,386,895
)
Net book value
$
21,274,516
$
21,789,766
Depreciation expense was $1,608,017, $1,609,404 and $1,406,308 in 2009, 2008 and 2007
respectively.
F -31
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
7. Goodwill and Other Intangible Assets
Other intangible assets consist of the following at December 31:
As of December 31, 2009
Gross
Carrying
Accumulated
Value
Amortization
Net
Core deposit intangible
$
2,705,391
$
(1,485,828
)
$
1,219,563
Customer relationship intangible
1,265,543
(855,175
)
410,368
Total
$
3,970,934
$
(2,341,003
)
$
1,629,931
As of December 31, 2008
Gross
Carrying
Accumulated
Value
Amortization
Net
Core deposit intangible
$
2,705,391
$
(1,158,828
)
$
1,546,563
Customer relationship intangible
1,265,543
(712,105
)
553,438
Total
$
3,970,934
$
(1,870,933
)
$
2,100,001
Aggregate amortization expense was $470,070, $540,585, and $547,759 for 2009, 2008 and
2007.
Estimated amortization expense for each of the next five years:
2010
$
411,990
2011
361,307
2012
312,507
2013
263,014
2014
125,946
The changes in the carrying amount of goodwill for the year ended December 31 is as
follows:
Banking
Insurance
Benefit Consulting
Activities
Activities
Activities
Total
Balance as of December 31, 2006
$
5,577,913
$
10,045,301
$
2,513,826
$
18,137,040
Goodwill acquired
4,457,992
66,153
131,417
4,655,562
Balance as of December 31, 2007
10,035,905
10,111,454
2,645,243
22,792,602
Goodwill acquired
(30,774
)
72,567
129,044
170,837
Balance as of December 31, 2008
10,005,131
10,184,021
2,774,287
22,963,439
Goodwill acquired
—
84,245
135,417
219,662
Balance as of December 31, 2009
$
10,005,131
$
10,268,266
$
2,909,704
$
23,183,101
During 2006, the Company completed its acquisition of Parsons, Cote & Company and Benefit
Consulting Group LLC. Goodwill in the amount of $576,000 and intangible assets in the amount
of $71,000 were recorded as part of the Parsons, Cote & Company acquisition. Under the terms
of the agreement, contingent purchase payments based on future performance levels may be made
over a five-year period ending December 31, 2010. Additional goodwill in the amount of
$84,245, $72,567 and $66,153 was recorded for the contingent purchase payment made in 2009,
2008 and 2007 respectively.
F -32
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
7. Goodwill and Other Intangible Assets (Continued)
During 2006, the Company completed its acquisition of Benefit Consulting Group LLC. Goodwill
in the amount of $2.5 million and other intangible assets in the amount of $1.1 million were
recorded as part of the acquisition of Benefit Consulting Group LLC. Under the terms of the
agreement, continent purchase payments based on future performance levels may be made over a
five-year period ending December 31, 2010. Additional goodwill in the amount of $135,417,
$129,044 and $131,417 was recorded for the contingent purchase payment made in 2009, 2008 and
2007 respectively.
During 2007, the Company completed its acquisition of Vernon Bank Corporation, the stock
holding company of the National Bank of Vernon. Goodwill in the amount of $4.4 million and
other intangible assets in the amount of $1.5 million were recorded as part of the
acquisition.
Impairment exists when a reporting unit's carrying value of goodwill exceeds its fair
value, which is determined through a two-step test. Step 1 includes the determination of the
carrying value of our reporting units, including the existing goodwill and intangible assets,
and estimating the fair value of the reporting units. We determined the fair value of our
reporting units and compared them to their carrying amount. If the carrying amount of the
reporting units exceeds their fair value, we are required to perform a second step to the
impairment test. Our annual impairment analysis as of December 31, 2009 indicated that a step
2 analysis was not required. As of December 31, 2009 and 2008, no impairment was recorded for
goodwill.
8. Due to Depositors
Amounts due to depositors at December 31 are as follows:
2009
2008
Non-interest bearing demand
$
62,996,738
$
60,786,827
Savings
81,889,687
74,241,962
Money market and interest-bearing checking
186,526,234
133,748,368
Time deposits
156,903,181
155,824,510
Mortgage escrow funds
1,048,567
1,096,430
Total due to depositors
$
489,364,407
$
425,698,097
At December 31, 2009 and 2008, time deposits with balances in excess of $100,000 totaled
$56,688,882 and $45,851,817, respectively.
The contractual maturity of time deposits as of December 31, are as follows:
2009
2008
Maturity
Amount
Percent
Amount
Percent
One year or less
$
123,357,912
78.6
%
$
124,083,627
79.6
%
One to two years
16,630,577
10.6
17,526,028
11.2
Two to three years
5,754,751
3.7
7,092,806
4.6
Three to four years
3,669,521
2.3
3,744,525
2.4
Four to five years
7,485,961
4.8
3,353,795
2.2
Over five years
4,459
0.0
23,729
0.0
$
156,903,181
100.0
%
$
155,824,510
100.0
%
F -33
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
9. Borrowings
Outstanding borrowings as of December 31 are as follows:
2009
2008
Short-term borrowings:
Federal Home Loan Bank overnight line of credit
$
—
$
3,825,000
Federal Home Loan Bank advances
19,000,000
18,000,000
Long-term borrowings:
Federal Home Loan Bank advances
12,000,000
31,000,000
$
31,000,000
$
52,825,000
Borrowings at December 31, 2009 have maturity dates as follows:
Range of
Average
Rates
Rate
2010
2.87% - 6.74
%
4.82
%
19,000,000
2011
5.74
%
5.74
%
1,000,000
2012
3.34
%
3.34
%
5,000,000
2013
5.00
%
5.00
%
5,000,000
2014
5.33
%
5.33
%
1,000,000
Thereafter
—
$
31,000,000
The Bank has available a $109,922,600 line of credit with the Federal Home Loan Bank of
which $0 is outstanding at December 31, 2009. Each advance is payable at its maturity date,
with a prepayment penalty for fixed rate advances. At December 31, 2009, borrowings are
collateralized by pledged securities, which had a carrying value of $7.6 million and
residential mortgages in the amount of $72,574,283 pledged under a blanket collateral
agreement. The Bank also has available a $5,000,000 unsecured line of credit with Key Bank of
which $0 is outstanding at December 31, 2009. In addition, the Bank also has available a
$5,000,000 unsecured line of credit with M&T Bank of which $0 is outstanding at December 31,
2009.
10. Income Taxes
The provision for income taxes for the years ended December 31, consists of the following:
2009
2008
2007
Current:
Federal
$
865,283
$
626,812
$
1,154,383
State
(3,547
)
4,086
104,202
Deferred:
Federal
299,057
(2,322,612
)
21,267
State
50,127
(531,086
)
87,798
$
1,210,920
$
(2,222,800
)
$
1,367,650
A reconciliation of the federal statutory rate to the effective income tax rate for the
years ended December 31, is as follow
F -34
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
10.
Income Taxes (Continued)
2009
2008
2007
Federal statutory income tax rate
34
%
34
%
34
%
State tax, net of federal benefit
1
%
9
%
3
%
Tax exempt investment income
(7
)%
7
%
(4
)%
Earnings from bank owned life insurance
(4
)%
5
%
(4
)%
Other
(1
)%
2
%
(1
)%
Effective tax rate
23
%
57
%
28
%
The components of deferred income taxes included in other assets in the statements of
condition are approximately as follows:
2009
2008
Asset (Liability)
Allowance for loan losses
$
1,093,000
$
972,000
Deferred compensation
296,000
228,000
Investment security charges/adjustments
4,162,000
4,536,000
Unrealized losses on securities available for sale
1,324,000
2,133,000
Pension benefits
514,000
789,000
Depreciation
(388,000
)
(296,000
)
Mortgage related fees
(389,000
)
(336,000
)
Intangible amortization
(257,000
)
(158,000
)
Purchase accounting adjustments
(314,000
)
(426,000
)
Prepaid expenses
(316,000
)
(307,000
)
Other
(72,000
)
(65,000
)
Total deferred income tax asset, net
$
5,653,000
$
7,070,000
At December 31, 2009 and December 31, 2008, the Company had no unrecognized tax benefits
recorded. The Company does not expect the amount of unrecognized tax benefits to
significantly change within the next twelve months.
The Company recognizes interest and penalties related to income tax matters as part of income
tax expense. At December 31, 2009 and December 31, 2008, there were no amounts accrued for
interest and penalties.
The Company is subject to U.S. federal income tax as well as New York state income tax. The
Company is no longer subject to federal or state examinations for tax years prior to 2006.
The tax years 2006-2008 remain open to federal and state examination.
11.
Benefit Plans
The Bank provides a noncontributory defined benefit retirement accumulation plan (cash balance
plan) covering substantially all employees. Under the plan, retirement benefits are primarily
a function of the employee's years of service and level of compensation. As of June 15, 2004,
the Bank had a plan amendment to freeze the plan benefits for plan participants. The Bank
uses a December 31 measurement date for its pension plan.
F - 35
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
11.
Benefit Plans (Continued)
Information about changes in obligations and funded status of the defined benefit pension plan
follows:
2009
2008
Change in benefit obligation:
Benefit obligation at beginning of year
$
4,253,399
$
4,312,486
Service cost
—
—
Interest cost
163,330
212,080
Actuarial gain (loss)
58,741
61,346
Benefits paid
(186,805
)
(332,513
)
Benefit obligation at end of year
$
4,288,665
$
4,253,399
Change in plan assets, at fair value:
Beginning plan assets
$
2,747,228
$
4,010,169
Actual return
509,000
(1,013,908
)
Benefits paid
(186,805
)
(332,513
)
Employer contributions
164,000
83,480
Settlements
—
—
Ending plan assets
$
3,233,423
$
2,747,228
Funded status at year end (plan assets less benefit obligation)
$
(1,055,242
)
$
(1,506,171
)
Amounts recognized in accumulated other comprehensive income at December 31 consist of:
2009
2008
Net actuarial loss (gain)
$
2,436,186
$
2,828,011
Prior service cost (credit)
—
—
$
2,436,186
$
2,828,011
The accumulated benefit obligation for the pension plan was $4,288,665 and $4,253,399, at
year-end 2009 and 2008 respectively.
The net periodic pension cost and other amounts recognized in other comprehensive income for
the years ended December 31 includes the following components:
2009
2008
2007
Service cost benefits earned during the period
$
—
$
—
$
—
Interest cost on projected benefit obligation
163,330
212,080
220,870
Expected return on plan assets
(205,187
)
(291,424
)
(292,236
)
Net amortization and deferral
146,753
65,736
58,154
Net periodic pension (benefit) cost
$
104,896
$
(13,608
)
$
(13,212
)
Net loss (gain)
(391,825
)
1,300,942
(113,978
)
Prior service cost (credit)
—
—
—
Amortization of prior service cost
—
—
—
Total recognized in other comprehensive income
(391,825
)
1,300,942
(113,978
)
Total recognized in net periodic benefit
cost and other comprehensive income
$
(286,929
)
$
1,287,334
$
(127,190
)
F - 36
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
11.
Benefit Plans (Continued)
The estimated net loss for the defined benefit pension plan that will be amortized from
accumulated other comprehensive income into net periodic benefit cost over the next fiscal
year is $146,000.
Assumptions
2009
2008
2007
Weighted-average assumptions used to determine
benefit obligation at
year-end
Discount rate
3.97
%
5.06
%
5.18
%
Weighted-average assumptions used to determine
net cost
Discount rate
5.06
%
5.18
%
5.08
%
Expected return on plan assets
7.50
%
7.50
%
7.50
%
Plan Assets
The Company's overall investment strategy is to achieve a mix of approximately 65% of
investments for long-term growth and 35% for near-term benefit payments with a wide
diversification of asset types, fund strategies, and fund managers. The target allocations
for plan assets are shown in the table below. Equity securities primarily include investments
in common stock. Fixed income securities include corporate bonds, government issues and
mortgage-backed securities. Other fixed income securities include a money market account and
checking account.
The weighted average expected long-term rate of return is estimated based on current trends in
the plan assets as well as projected future rates of return on those assets. The following
assumptions were used in determining the long-term rate of return:
Equity securities
Dividend discount model, the smoothed earnings yield model and the
equity risk premium model
Fixed income securities
Current yield to maturity and forecasts of future yields
The long term rate of return considers historical returns. There were no adjustments made to
historical returns.
The plan is not prohibited from investing in any investments as long as they meet fiduciary
standards as set forth in the plan document.
The Company's pension plan asset allocation at year-end 2009 and 2008, target allocation for
2010, and expected long-term rate of return by asset category are as follows:
Percentage of
Weighted-
Target
Plan Assets
Average Expected
Allocation
at December 31
Long Term Rate
Asset Category
2010
2009
2008
of Return
Equity Securities
65
%
29
%
50
%
10
%
Debt Securities
35
%
71
%
50
%
5
%
Other
0
%
0
%
0
%
Total
100
%
100
%
100
%
8
%
F-37
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
11.
Benefit Plans (Continued)
The fair value of the plan assets, as previously defined, at December 31, 2009, by asset
category, is as follows:
Fair Value Measurements
at December 31, 2009 Using
Quoted Prices in
Significant
Active Markets
Other
Significant
for Identical
Observable
Unobservable
Carrying
Assets
Inputs
Inputs
Value
(Level 1)
(Level 2)
(Level 3)
Plan Assets:
Equities
Common stock
$
948,360
$
948,360
$
—
$
—
Fixed income securities
Corporate bonds
581,348
—
581,348
—
Government issues
1,277,704
—
1,277,704
—
FHLMC
142,795
—
142,795
—
FNMA
133,939
—
133,939
—
Other fixed income securities
149,277
—
149,277
—
Total
$
3,233,423
$
948,360
$
2,285,063
$
—
There were no plan assets measured at fair value using significant unobservable inputs
(Level 3) for period ending December 31, 2009.
The Company expects to contribute $200,000 to the Plan for the year ending December 31, 2010.
The following benefit payments are expected to be paid:
Fiscal year ending December 31:
2010
$
350,000
2011
368,000
2012
386,000
2013
405,000
2014
425,000
Years 2015 - 2019
2,468,000
State Bank of Chittenango participated in the New York State Bankers Retirement System
(the System) plan which was a noncontributory defined benefit plan covering substantially all
employees. Under the plan, retirement benefits were primarily a function of the employee's
years of service and level of compensation. The plan was frozen as of May 31, 2002. State
Bank of Chittenango uses a December 31 measurement date for its pension plan.
In September 2006, the FASB issued guidance which requires that defined benefit plan assets
and obligations to be measured as of the date of the employer's fiscal year-end, starting in
2008. Through 2007, the Company utilized the early measurement date, and measured the funded
status of the defined benefit plan assets and obligations as of September 30
th
each
year. In accordance with the new guidance, the net periodic benefit cost for the period
between the September 30 measurement date and the 2008 fiscal year end measurement were
allocated proportionately between amounts to be recognized as an adjustment to retained
earnings and net period benefit cost
F - 38
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
11.
Benefit Plans (Continued)
for the fiscal year. As a result, the Company increased January 1, 2008 opening retained
earnings by $8,215, increased deferred income taxes by $41,093, decreased the pension
liability by $102,732 and debited accumulated other comprehensive income for $69,854.
The following table represents a reconciliation of the change in benefit obligation, plan
assets and funded status of the plan as of December 31:
2009
2008
Change in benefit obligation:
Beginning benefit obligation
$
2,351,556
$
2,250,073
Service cost
26,716
27,200
Interest cost
135,800
134,793
Actuarial gain (loss)
39,755
158,930
Benefits paid
(221,788
)
(219,440
)
Ending benefit obligation
$
2,332,039
$
2,351,556
Change in plan assets, at fair value:
Beginning plan assets
$
1,952,609
$
2,878,899
Actual return on plan assets
370,819
(706,850
)
Contributions
60,000
—
Benefits paid
(213,981
)
(219,440
)
Ending plan assets
2,169,447
1,952,609
Funded status at end of year
$
(162,592
)
$
(398,947
)
Amounts recognized in accumulated other comprehensive income at December 31 consist of:
2009
2008
2007
Net actuarial loss (gain)
$
854,151
$
1,110,377
$
(80,740
)
Prior service cost (credit)
—
—
—
$
854,151
$
1,110,377
$
(80,740
)
The accumulated benefit obligation for the pension plan was $2,332,039 and $2,351,556 at
year-end 2009 and 2008 respectively.
The net periodic pension cost and other amounts recognized in other comprehensive income for
the years ended December 31 includes the following components:
2009
2008
Transition
2007
Service cost benefits earned during the period
$
26,716
$
27,200
$
6,800
$
24,400
Interest cost on projected benefit obligation
135,800
134,793
33,874
133,564
Expected return on plan assets
(139,125
)
(208,914
)
(54,365
)
(203,130
)
Amortization of net loss
56,480
—
—
—
Net periodic pension benefit
$
79,871
$
(46,921
)
$
(13,691
)
$
(45,166
)
Net loss (gain)
(199,746
)
1,074,694
—
(115,016
)
Prior service cost (credit)
—
—
—
—
Amortization of net loss
(56,480
)
—
—
—
Total recognized in other comprehensive income
(256,226
)
1,074,694
—
(115,016
)
Total recognized in net periodic benefit
cost and other comprehensive income
$
(176,355
)
$
1,027,773
$
(13,691
)
$
(160,182
)
F - 39
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
11.
Benefit Plans (Continued)
The estimated net loss for the defined benefit pension plan that will be amortized from
accumulated other comprehensive income into net periodic benefit cost over the next fiscal
year is $42,783.
Assumptions
2009
2008
2007
Weighted-average assumptions used to determine
benefit obligation at
year-end
Discount rate
6.03
%
6.03
%
6.25
%
Weighted-average assumptions used to determine
net periodic pension cost
Discount rate
6.03
%
6.25
%
6.25
%
Expected return on plan assets
7.50
%
7.50
%
7.50
%
Plan Assets
The Company's overall investment strategy is to achieve a mix of approximately 97% of
investments for long-term growth and 3% for near-term benefit payments with a wide
diversification of asset types, fund strategies, and fund managers. The target allocations
for System assets are shown in the table below. Cash equivalents consist primarily of short
term investment funds. Equity securities primarily include investments in common stock and
depository receipts.
Fixed income securities include corporate bonds, government issues and mortgage-backed
securities. Other financial instruments primarily include rights and warrants.
The weighted average expected long-term rate of return is estimated based on current trends in
the System's assets as well as projected future rates of return on those assets and reasonable
actuarial assumptions based on the guidance provided by ASOP No. 27 for long term inflation,
and the real and nominal rate of investment return for a specific mix of asset classes. The
following assumptions were used in determining the long-term rate of return:
Equity securities
Dividend discount model, the smoothed earnings yield model and the equity
risk premium model
Fixed income securities
Current yield to maturity and forecasts of future yields
Other financial instruments
Comparison of the specific investment's risk to that of fixed
income and equity instruments and using judgment
The long term rate of return considers historical returns. Adjustments were made to
historical returns in order to reflect expectations of future returns. These adjustments
were
due to factor forecasts by economists and long-term U.S. Treasury yields to forecast long-term
inflation. In addition, forecasts by economists and others for long-term GDP growth were
factored into the development of assumptions for earnings growth and per capital income.
Effective March 2009, the System revised its investment guidelines. The System currently
prohibits its investment managers from purchasing the following investments; (1) Equity
securities in emerging market countries as defined by the Morgan Stanley Emerging Markets
Index, short sales, unregistered securities and margin purchases; (2) fixed income securities
that are of BBB quality or less, CMOs that have an inverse floating rate and whose payments
don't include principal or which aren't certified and guaranteed by the U.S. Government, ABS
that aren't issued or guaranteed by the U.S. or its agencies or its instrumentalities,
non-agency residential subprime or ALT-A MBS and structured notes; and (3) other financial
instruments such as unhedged currency exposure in
F - 40
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
11.
Benefit Plans (Continued)
countries not defined as "high income economies" by the World Bank. All other investments not
prohibited by the System are permitted. At December 31, 2009, the System holds certain
investments which are no longer deemed acceptable to acquire. These positions will be
liquidated when the investment managers deem that such liquidation is in the best interest of
the System.
The Company's pension plan asset allocation at year-end 2009 and 2008, target allocation for
2010 and expected long-term rate of return by asset category are as follows:
Percentage of
Weighted-
Target
Plan Assets
Average Expected
Allocation
at December 31,
Long Term Rate
Asset Category
2010
2009
2008
of Return
Cash equivalents
0 - 20
%
14
%
10
%
0
%
Equity securities
40 - 60
%
46
%
48
%
4.6
%
Fixed income securities
40 - 60
%
40
%
41
%
2.1
%
Other financial instruments
0 - 5
%
0
%
1
%
0
%
Total
100
%
100
%
6.7
%
The following table represents the Plan's fair value hierarchy for its financial assets
(investments), as defined previously measured at fair value on a recurring basis as of
December 31, 2009:
Fair Value Measurements
at December 31, 2009 Using
Quoted Prices in
Significant
Active Markets
Other
Significant
for Identical
Observable
Unobservable
Carrying
Assets
Inputs
Inputs
Value
(Level 1)
(Level 2)
(Level 3)
Plan Assets:
Cash equivalents
Short term investment funds
$
294,071
$
294,071
$
—
$
—
Equities
Common stock
970,858
970,858
Depository receipts
13,581
13,581
Other equities
10,764
10,764
Fixed income securities
Corporate bonds
206,883
206,883
Government issues
361,394
361,394
Collateralized mortgage obligations
52,565
52,565
FHLMC
87,836
87,836
FNMA
135,382
135,382
GNMA I
23,881
23,881
Other fixed income securities
12,232
12,232
Total
$
2,169,447
$
1,289,274
$
880,173
$
—
The table below presents a reconciliation of all plan assets measured at fair value using
significant unobservable inputs (Level 3) for the year ended December 31, 2009:
F - 41
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
11. Benefit Plans (Continued)
Beginning balance, January 1, 2009
$
790,000
Actual return on plan assets:
Relating to assets still held at the reporting date
321,000
Relating to assets sold during the period
(348,000
)
Purchases, sales, and settlements, net
(763,000
)
Transfers in and/or out of Level 3
—
Ending balance, December 31, 2009
$
—
The Company expects to contribute $0 for the year ending December 31, 2010.
The following benefit payments are expected to be paid:
Fiscal year ending December 31:
2010
$
187,950
2011
183,155
2012
178,245
2013
179,926
2014
174,926
Years 2015 - 2019
846,413
In addition to the retirement plan, the Company sponsors a 401(k) savings plan which
enables employees who meet the plan's eligibility requirements to defer income on a pre-tax
basis. Employees may elect to contribute a portion of their compensation, with the Company
matching the contribution up to 5% of compensation. Employer contributions associated with
the plan amounted
to $570,401, $531,426 and $493,218 for the years ended December 31, 2009, 2008 and 2007,
respectively.
The Bank provides The Oneida Savings Bank Employee Stock Ownership Plan with all employees
meeting the age and service requirements eligible to participate in the Plan. Employees are
eligible for the Plan if they are twenty-one years of age and have one year of service with at
least 1,000 hours. The ESOP purchased 299,655 shares of common stock which was funded by a
loan from the Company payable in ten equal installments over 10 years bearing a variable
interest rate of prime at the beginning of the year which was 8.25% for 2007. Loan payments
are to be funded by cash contributions from the Bank. The loan can be prepaid without
penalty. Shares purchased by the ESOP are maintained in a suspense account and held for
allocation among the participants. As loan payments are made, shares are committed to be
released and subsequently allocated to employee accounts at each calendar year end.
Compensation expense is recognized related to the shares committed to be released based on the
average market price during the period. Cash dividends received on unallocated shares are
used to pay debt service. For the purpose of computing earnings per share, unallocated ESOP
shares are not considered outstanding.
Compensation expense approximated $337,000 for the year ended 2007. Of the 299,655 shares
acquired on behalf of the ESOP 29,045 were released in December 31, 2007. As of December 31,
2007, all shares had been released and allocated to participants. In 2009 and 2008, the
Company made a discretionary contribution to the plan and recorded compensation expense of
$300,000 and $200,000 respectively for the plan to purchase additional shares to allocate to
participants.
F - 42
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
12.
Stock Based Compensation Plans
The Company has two share based compensation plans as described below. Total compensation
cost that has been charged against income for those plans was $258,830, $165,654 and $174,806
for 2009, 2008 and 2007. The total income tax benefit was $99,649, $63,777, and $67,300.
Stock Option Plan
The Company's 2000 Stock Option Plan, which is shareholder approved, permits the granting of
share options to its directors, officer and key employees for up to 374,568 share of common
stock. The exercise price of options granted is equal to the market value of the Company's
shares at the date of grant. All options granted expire by April 2010 and options vest and
become exercisable ratably over a one to five-year period. The plan also has a reload feature
which entitles the option holder, who has delivered common stock as payment of the exercise
price for option stock, to a new option to acquire additional shares in the amount equal to
the shares traded in. The option period during which the reload option may be exercised
expires at the same time as that of the original option that the holder has exercised. The
Company has a policy of using shares held as treasury stock to satisfy share option exercises.
There were 9,243 shares available for future grants under the plan described above as of
December 31, 2009 and 2008. Compensation recorded in conjunction with these plans was
$78,543, $0 and $0 for 2009, 2008, and 2007, respectively.
The fair value of each option award is estimated on the date of grant using a closed form
option valuation (Black-Scholes) model that uses the assumptions noted in the table below.
Expected volatilities are based on historical volatilities of the Company's common stock. The
Company uses historical data to estimate option exercise and post-vesting termination
behavior. The expected term of options granted is based on historical data and represents the
period of time that options granted
are expected to be outstanding, which takes into account that the options are not
transferable. The risk-free interest rate for the expected term of the option is based on the
U.S. Treasury yield curve in effect at the time of the grant. The fair value of options
granted was determined using the following weighted-average assumptions as of grant date:
2009
2008
2007
Risk-free interest rate
0.50
%
N/A
N/A
Expected stock price volatility
62.09
%
N/A
N/A
Expected dividend rate
3.00
%
N/A
N/A
Expected life
0.94
N/A
N/A
A summary of the activity in the stock option plan for 2009 follows:
Options
Range of
Weighted Average
Outstanding
Option
Exercise Price
and
Price
Shares
Intrinsic
Exercisable
Per Share
Outstanding
Value
Outstanding at December 31, 2008
168,967
$
4.722 - $18.167
$
7.707
$
315,434
Granted
31,839
$
10.750 - $11.250
Exercised
(77,131
)
$
4.722
Forfeited
(1,500
)
14.773
Outstanding at December 31, 2009
122,175
$
4.722 - $18.167
$
10.401
$
152,346
F - 43
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
12.
Stock Based Compensation Plans (Continued)
There was no unrecognized compensation cost for this plan as of December 31, 2009 as all
shares are vested under the terms of the plan. New grants are for the reload option feature
which are expensed at date of grant.
Information related to the stock option plan during each year follows:
2009
2008
2007
Intrinsic value of options exercised
$
489,449
$
26,164
$
49,378
Cash received from option exercises
9,326
32,348
34,118
Shares received from option exercises
31,839
—
—
Tax benefit realized from option exercises
—
—
—
Weighted average fair value of options granted
2.467
—
—
At December 31, 2009, the weighted average information for outstanding and exercisable
shares is as follows:
Options Outstanding
Options Exercisable
Weighted Average
Weighted
Range of
Remaining
Average
Exercise
Exercise
Life
Exercise
Price
Shares
Price
(Years)
Shares
Price
$4.722 - $5.45
36,009
$
4.722
0.32
36,009
$
4.722
$9.084 - $10.90
11,118
$
10.216
0.32
11,118
$
10.216
$10.90 - $12.717
40,957
$
11.532
0.32
40,957
$
11.532
$12.717 - $14.534
18,689
$
14.000
0.32
18,689
$
14.000
$14.534 - $16.350
5,100
$
14.800
0.32
5,100
$
14.800
$16.350 - $18.167
10,302
$
17.247
0.32
10,302
$
17.247
Total/Average
122,175
$
10.401
0.32
122,175
$
10.401
Recognition Plan
The Management Recognition and Retention Plan provides for the issuance of shares of
restricted stock to directors, officers and key employees. Compensation expense equal to the
market value of Oneida Financial Corp.'s stock on the grant date is recognized ratably over
the five year vesting period for shares of restricted stock granted that will be fully vested
at December 31, 2010. Compensation recorded in conjunction with these plans was $180,287,
$165,654 and $174,806 for 2009, 2008, and 2007, respectively. Shares unallocated under the
plan available for future awards were 11,286, 15,886 and 12,886 as of December 31, 2009, 2008
and 2007 respectively.
A summary of changes in the Company's nonvested shares for the year follows:
Weighted Average
Grant-Date
Nonvested Shares
Shares
Fair Value
Nonvested at January 1, 2009
28,800
$
11.44
Granted
4,000
8.98
Vested
(16,400
)
11.14
Forfeited
—
Nonvested at December 31, 2009
16,400
$
11.14
F - 44
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
12.
Stock Based Compensation Plans (Continued)
As of December 31, 2009, there was a total of $165,376 of unrecognized compensation cost
related to nonvested shares granted under the Plan. The cost is expected to be recognized
over a weighted average of 2 years. The total fair value of shares vested during the years
ended December 31, 2009, 2008 and 2007 were $146,780, $111,148 and $164,552 respectively.
13.
Non-Interest Income and Expenses
Non-interest income and non-interest expenses for the years ended December 31 consist of the
following:
2009
2008
2007
Non-interest income:
Service charges on deposit accounts
$
2,615,542
$
2,775,053
$
2,546,514
Commissions and fees on sales
of non-banking products
15,836,266
13,618,392
13,520,891
Cash surrender value increase
696,916
587,602
626,385
Other
1,735,606
1,337,208
1,144,157
Total non-interest income
$
20,884,330
$
18,318,255
$
17,837,947
Non-interest expenses:
Salaries and employee benefits
$
20,425,328
$
18,127,522
$
16,984,755
Building occupancy and equipment
4,748,134
4,739,353
4,427,212
FDIC and N.Y.S. assessment
1,121,204
121,300
94,849
Advertising
542,817
551,311
577,474
Postage and telephone
681,307
697,763
717,718
Director compensation
243,185
220,609
242,508
Professional fees
386,333
462,027
372,793
Travel and meetings
752,836
826,206
918,049
Insurance
344,388
257,052
388,703
Dues and subscriptions
167,944
185,356
205,661
Service fees
720,755
597,377
566,729
ORE expenses
38,423
11,898
26,344
Contributions
87,497
59,020
83,178
Sales tax
4,279
6,783
8,376
Other
1,455,056
1,239,498
795,774
Minority interest dividends
255,950
68,500
5,975
Intangible amortization
470,070
540,585
547,759
Total non-interest expenses
$
32,445,506
$
28,712,160
$
26,963,857
14.
Commitments
Some financial instruments, such as loan commitments, credit lines, letters of credit, and
overdraft protection, are issued to meet customer financing needs. These are agreements to
provide credit or
to support the credit of others, as long as conditions established in the contract are met,
and usually have expiration dates. Commitments may expire without being used.
Off-balance-sheet risk to credit loss exists up to the face amount of these instruments,
although material losses are not anticipated. The same credit policies are used to make such
commitments as are used for loans, including obtaining collateral at exercise of the
commitment.
The contractual amounts of financial instruments with off-balance-sheet risk at year end were
as follows:
F - 45
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
14.
Commitments (Continued)
2009
2008
Fixed
Variable
Fixed
Variable
Rate
Rate
Rate
Rate
Financial instruments whose contract
amounts represent credit risk:
Commitments to extend credit
$
10,373,320
$
2,034,200
$
7,556,680
$
4,528,250
Unused lines of credit
1,663,317
48,880,467
2,573,940
43,797,752
Commitments to make loans are generally made for periods of 60 days or less. The fixed
rate loan commitments have interest rates ranging from 4.36% to 6.75% and maturities ranging
from 15 years to 30 years. Commitments to extend credit are agreements to lend to a customer
as long as there is no violation of any condition established in the contract. Commitments
generally have fixed expiration dates or other termination clauses and may require payment of
a fee. The commitments for equity lines of credit may expire without being drawn upon.
Therefore, the total commitment amounts do not necessarily represent future cash requirements.
The Bank evaluates each customer's creditworthiness on a case-by-case basis. The amount of
collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on
management's credit evaluation of the counterparty. Collateral held varies, but includes
residential and commercial real estate.
15.
Dividends and Restrictions
The Company's ability to pay dividends to its shareholders is largely dependent on the Bank's
ability to pay dividends to the Company. In addition to state law requirements and the
capital requirements discussed below, the circumstances under which the Bank may pay dividends
are limited by federal statutes, regulations, and policies. Retained earnings of the Bank are
subject to certain restrictions under New York State Banking regulations. The amount of
retained earnings legally available for dividends under these regulations was $703,565 and
$1,891,284 as of December 31, 2009 and 2008 respectively.
In addition, the Office of Thrift Supervision and the Federal Deposit Insurance Corporation
are authorized to determine under certain circumstances that the payment of dividends would be
an unsafe or unsound practice and to prohibit payment of such dividends. The payment of
dividends that deplete a bank's capital base could be deemed to constitute such an unsafe or
unsound practice. The Federal Reserve Board has indicated that banking organizations could
generally pay dividends only out of current operating earnings.
The Board of Trustees of Oneida Financial MHC determines whether the MHC will waive or receive
cash dividends declared by the Company each time the Company declares a cash dividend, which
is expected to be on a semi-annual basis. The MHC may elect to receive dividends and utilize
such funds to pay expenses or for other allowable purposes. The Office of Thrift Supervision
(the "OTS") has indicated that it does not object to the waiver of cash dividends by MHC
subject to the following: (i) the Bank notifies OTS prior to paying any cash dividends to the
Company if such a capital distribution becomes necessary and (ii) the Board of Trustees of the
MHC must ratify the determination that the dividend waiver is consistent with the director's
fiduciary duties to the members of the federally chartered mutual holding company.
16.
Regulatory Matters
The Bank is subject to regulatory capital requirements administered by the federal banking
agencies. Capital adequacy guidelines and prompt corrective action regulations involve
quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated
under regulatory accounting
F - 46
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
16.
Regulatory Matters (Continued)
practices. Capital amounts and classifications are also subject to qualitative judgments by
regulators. Failure to meet capital requirements can initiate regulatory action. Management
believes as of December 31, 2009, the Bank meets all capital adequacy requirements to which it
is subject.
Prompt corrective action regulations provide five classifications: well capitalized,
adequately capitalized, undercapitalized, significantly undercapitalized, and critically
undercapitalized, although these terms are not used to represent overall financial condition.
If adequately capitalized, regulatory approval is required to accept brokered deposits. If
undercapitalized, capital distributions are limited, as is asset growth and expansion, and
capital restoration plans are required. At year-end 2009 and 2008, the most recent
regulatory notifications categorized the Bank as well capitalized under the regulatory
framework for prompt corrective action. There are no conditions or events since that
notification that management believes have changed the institution's category.
The Bank's actual capital amounts and ratios are as follows:
To Be Well
Capitalized Under
For Capital
Prompt Corrective
Actual
Adequacy Purposes
Action Provisions
Amount
Ratio
Amount
Ratio
Amount
Ratio
As of December 31, 2009:
Total Capital
(to Risk Weighted Assets)
$
42,634,376
10.73
%
$
31,799,429
8
%
$
39,749,286
10
%
Tier I Capital
(to Risk Weighted Assets)
$
39,733,789
10.00
%
$
15,899,714
4
%
$
23,849,572
6
%
Tier I Capital
(to Average Assets)
$
39,733,789
7.19
%
$
22,101,172
4
%
$
27,626,465
5
%
As of December 31, 2008:
Total Capital
(to Risk Weighted Assets)
$
37,214,182
10.21
%
$
29,164,557
8
%
$
36,456,596
10
%
Tier I Capital
(to Risk Weighted Assets)
$
34,589,899
9.49
%
$
14,582,279
4
%
$
21,873,418
6
%
Tier I Capital
(to Average Assets)
$
34,589,899
6.64
%
$
20,836,854
4
%
$
26,046,068
5
%
The Qualified Thrift Lender test requires at least 65% of assets be maintained in
housing-related finance and other specified areas. If this test is not met, limits are placed
on growth, branching, new investments, Federal Home Loan Bank advances and new dividends.
Management believes this test is met.
F - 47
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
17. Parent Company Statements
Condensed financial information of Oneida Financial Corp. follows:
Condensed Balance Sheets
December 31,
2009
2008
Assets:
Cash
$
149,797
$
37,385
Investments in and advances to subsidiary
59,735,244
53,008,623
Other assets
187,772
74,030
Total assets
$
60,072,813
$
53,120,038
Liabilities and shareholders' equity:
Other liabilities
$
139,500
$
—
Due to related parties
817,140
850,796
Shareholders' equity
59,116,173
52,269,242
Total liabilities and shareholders' equity
$
60,072,813
$
53,120,038
Condensed Statements of Income
Years Ended December 31,
2009
2008
2007
Revenue:
Dividends from subsidiary
$
2,000,000
$
—
$
—
Interest on investments and deposits
725
13,571
52,941
Rental income
—
51,322
307,935
Total revenue
2,000,725
64,893
360,876
Expenses:
Compensations and benefits
139,500
23,360
93,739
Other expenses
171,436
153,620
254,117
Total expenses
310,936
176,980
347,856
Income (loss) before taxes and equity
in undistributed net
income of subsidiary
1,689,789
(112,087
)
13,020
Benefit for income taxes
(120,000
)
(35,000
)
—
Income (loss) before equity in undistributed
net income of subsidiary
1,809,789
(77,087
)
13,020
Equity in undistributed net income (loss):
Subsidiary bank
2,303,568
(1,600,003
)
3,491,287
Net income (loss)
$
4,113,357
$
(1,677,090
)
$
3,504,307
F - 48
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
17. Parent Company Statements (Continued)
Condensed Statements of Cash Flow
Years Ended December 31,
2009
2008
2007
Operating activities:
Net income (loss)
$
4,113,357
$
(1,677,090
)
$
3,504,307
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation expense
—
16,976
105,377
ESOP shares earned
—
—
337,408
Other assets/liabilities, net
25,757
(125,882
)
(44,077
)
Equity in undistributed net loss (income) of
subsidiary bank
(2,303,568
)
1,600,003
(3,491,287
)
Net cash provided by (used by) operating activities
1,835,546
(185,993
)
411,728
Investing activities:
Proceeds from sales of investment securities
—
—
292,000
Purchase of premises and equipment
—
—
(287,416
)
Disposition of premises and equipment
—
3,204,282
—
Change in due from related parties
(33,655
)
(2,155,199
)
1,474,836
Net cash (used in) provided by investing activities
(33,655
)
1,049,083
1,479,420
Financing activities:
Purchase of treasury stock
(379,976
)
(20,277
)
(65,159
)
Dividends paid
(1,673,714
)
(1,662,053
)
(1,648,916
)
Exercise of stock options (using treasury stock)
364,211
32,347
34,118
Net cash (used in) provided by financing activities
(1,689,479
)
(1,649,983
)
(1,679,957
)
Net increase (decrease) in cash and cash equivalents
112,412
(786,893
)
211,191
Cash and cash equivalents at beginning of year
37,385
824,278
613,087
Cash and cash equivalents at end of year
$
149,797
$
37,385
$
824,278
F - 49
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
18. Earnings per Share
Earnings per common share have been computed based on the following for the years ended
December 31:
2009
2008
2007
Basic
Distributed earnings allocated to common stock
$
1,659,891
$
1,640,933
$
1,618,964
Undistributed earnings allocated to common stock
2,434,505
(3,320,069
)
1,844,445
Net earnings allocated to common stock
$
4,094,396
$
(1,679,136
)
$
3,463,409
Weighted average common shares outstanding
including shares considered participating
securities
7,789,021
7,757,205
7,729,653
Less: Average participating securities
(16,400
)
(28,800
)
(45,600
)
Weighted average shares
7,772,621
7,728,405
7,684,053
Basic earnings per share
$
0.53
$
(0.22
)
$
0.45
Diluted
Net earnings allocated to common stock
$
4,094,396
$
(1,679,136
)
$
3,463,409
Weighted average common shares outstanding for basic
7,772,621
7,728,405
7,684,053
Dilutive effect of stock options
27,949
54,592
67,485
Weighted average shares
7,800,570
7,782,997
7,751,538
Diluted earnings per share
$
0.52
$
(0.22
)
$
0.45
Stock options for 86,166, 106,675 and 53,820 shares of common stock were not considered
in computing dilutive earnings per common share for 2009, 2008, and 2007 respectively because
they were anti-dilutive.
19. Other Comprehensive Income (Loss)
Other comprehensive income (loss) components and related tax effects were as follows:
F - 50
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
19. Other Comprehensive Income (Loss)  (Continued)
2009
2008
2007
Unrealized (losses) gains on available for sale securities
Available for sale securities:
Unrealized holding gains (losses) on securities arising
during period
$
3,422,451
$
(3,979,420
)
$
(2,167,052
)
Less: reclassification adjustment for (gains)
realized in income
(787,842
)
(62,854
)
(352,825
)
Net unrealized gains (losses)
2,634,609
(4,042,274
)
(2,519,877
)
Tax effect
(1,053,844
)
1,616,910
1,007,951
Net-of-tax amount
1,580,765
(2,425,364
)
(1,511,926
)
Other-than-temporary impaired securities:
Unrealized holding (losses) on securities arising
during period
$
(2,908,143
)
$
(1,021,845
)
$
—
Less: reclassification adjustment for losses
realized in income
2,294,841
1,021,845
—
Net unrealized (losses)
(613,302
)
—
—
Tax effect
245,321
—
—
Net-of-tax amount
(367,981
)
—
—
Change in unrealized loss on pension liability
648,051
(2,375,636
)
228,994
Tax effect
(259,220
)
950,254
(91,598
)
Net-of-tax amount
388,831
(1,425,382
)
137,396
$
1,601,615
$
(3,850,746
)
$
(1,374,530
)
The following is a summary of the accumulated other comprehensive income balances, net of
tax:
Balance
Current
Balance
at
Period
at
12/31/2008
Change
12/31/2009
Unrealized (losses) gains on securities
available for sale
$
(3,199,447
)
$
1,212,783
$
(1,986,664
)
Unrealized loss on pension benefits
(2,363,034
)
388,832
(1,974,202
)
Total
$
(5,562,481
)
$
1,601,615
$
(3,960,866
)
20. Segment Information
The Company has determined that it has four primary business segments, its banking franchise,
its insurance activities, its employee benefit consulting activities and its risk management
activities. For the years ended December 31, 2009, 2008 and 2007, the Company's insurance
activities consisted of those conducted through its wholly owned subsidiary, Bailey & Haskell
Associates, Inc. For the years ended December 31, 2009, 2008 and 2007, the benefit consulting
activities consisted of those conducted through its wholly owned subsidiary, Benefit
Consulting Group Inc. For the year ended December 31, 2009 and 2008, the risk management
activities consisted of those conducted through its wholly owned subsidiary Workplace Health
Solutions Inc.; a segment that did not exist prior to 2008. Information about the Company is
presented in the following table for the periods indicated:
F - 51
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
20. Segment Information (Continued)
2009
Risk
Banking
Insurance
Consulting
Management
Activities
Activities
Activities
Activities
Total
Net interest income
$
17,427,420
$
—
$
—
$
—
$
17,427,420
Provision for loan losses
760,000
—
—
—
760,000
Net interest income after provision
for loan losses
16,667,420
—
—
—
16,667,420
Non-interest income
5,266,097
9,694,191
5,650,646
491,429
21,102,363
Non-interest expenses
16,545,145
8,580,478
4,532,450
709,346
30,367,419
Depreciation and amortization
1,699,210
223,847
153,430
1,600
2,078,087
Income (loss) before taxes
3,689,162
889,866
964,766
(219,517
)
5,324,277
Income tax expense (benefit)
517,720
378,000
405,200
(90,000
)
1,210,920
Net income (loss)
$
3,171,442
$
511,866
$
559,566
$
(129,517
)
$
4,113,357
Total Assets
$
571,983,646
$
19,962,553
$
4,389,768
$
89,526
$
596,425,493
2008
Risk
Banking
Insurance
Consulting
Management
Activities
Activities
Activities
Activities
Total
Net interest income
$
15,652,705
$
—
$
—
$
—
$
15,652,705
Provision for loan losses
525,000
—
—
—
525,000
Net interest income after provision
for loan losses
15,127,705
—
—
—
15,127,705
Non-interest (loss) income
(3,933,827
)
8,483,321
5,015,527
119,544
9,684,565
Non-interest expenses
14,497,015
7,620,924
4,052,298
391,934
26,562,171
Depreciation and amortization
1,714,045
249,640
185,224
1,080
2,149,989
(Loss) Income before taxes
(5,017,182
)
612,757
778,005
(273,470
)
(3,899,890
)
Income tax (benefit) expense
(2,773,000
)
330,500
325,000
(105,300
)
(2,222,800
)
Net (loss) income
$
(2,244,182
)
$
282,257
$
453,005
$
(168,170
)
$
(1,677,090
)
Total Assets
$
523,447,403
$
15,607,987
$
4,857,175
$
57,552
$
543,970,117
F - 52
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Oneida Financial Corp.
Notes to Consolidated Financial Statements
20. Segment Information (Continued)
2007
Banking
Insurance
Consulting
Activities
Activities
Activities
Total
Net interest income
$
13,645,042
$
—
$
—
$
13,645,042
Provision for loan losses
—
—
—
—
Net interest income after provision
for loan losses
13,645,042
—
—
13,645,042
Non-interest income
4,669,881
9,925,204
3,595,687
18,190,772
Non-interest expenses
13,802,743
8,197,710
3,009,337
25,009,790
Depreciation and amortization
1,492,222
236,843
225,002
1,954,067
Income before taxes
3,019,958
1,490,651
361,348
4,871,957
Income tax expense
759,650
500,000
108,000
1,367,650
Net income
$
2,260,308
$
990,651
$
253,348
$
3,504,307
Total Assets
$
505,109,464
$
19,631,205
$
4,083,910
$
528,824,579
The following represents a reconciliation of the Company's reported segment assets to
consolidated assets as of December 31:
Assets
2009
2008
Total assets for reportable segments
$
596,425,493
$
543,970,117
Elimination of intercompany cash balances
(5,919,162
)
(3,840,349
)
Consolidated total
$
590,506,331
$
540,129,768
The accounting policies of the segment are the same as those described in the summary of
significant accounting policies.
21. Quarterly Financial Data (Unaudited)
Interest
Net Interest
Net
2009
Income
Income
Income (Loss)
Basic
Diluted
(Dollars in thousands)
First Quarter
$
6,232
$
4,059
$
1,114
$
0.14
$
0.14
Second Quarter
6,225
4,291
1,069
0.14
0.14
Third Quarter
6,234
4,442
696
0.09
0.09
Fourth Quarter
6,311
4,635
1,234
0.16
0.16
2008
First Quarter
$
6,725
$
3,723
$
429
$
0.06
$
0.06
Second Quarter
6,718
3,867
646
0.08
0.08
Third Quarter
6,651
3,924
(4,428
)
(0.57
)
(0.57
)
Fourth Quarter
6,639
4,139
1,676
0.22
0.22
F - 53
Table of Contents
Oneida Financial Corp.
Notes to Consolidated Financial Statements
22. Adoption of Plan of Conversion and Reorganization (unaudited)
On February 9, 2010, the Board of Directors of Oneida Financial, MHC ("MHC") and Oneida
Savings Bank ("Bank") adopted a Plan of Conversion and Reorganization providing for the
conversion of the MHC into the capital stock form of organization resulting in the formation of a
new federally-chartered stock holding company, Oneida Financial Corp. - New ("Holding Company").
Under the plan, the existing shares of the Company's common stock owned by Public  Stockholders will
be converted  pursuant to an  exchange  ratio  into  shares  of  common  stock of the  Holding  Company
("Holding  Company  Common  Stock").  Simultaneously,  with the  Conversion  and Reorganization,
the  Holding  Company  will  conduct  a  stock  offering  which represents  the 55.2%  ownership  interest
in Oneida Financial Corp. now owned by the MHC. The Conversion will result in the Bank being wholly owned
by a state-chartered stock holding company which is owned by public stockholders.  Shares of  conversion
stock will be  offered  in a subscription offering in descending order of priority to eligible  deposit
account  holders,  the Bank's tax qualified  employee  benefit plan,  then to other  depositors
of the Bank.  Any shares of the Stock Holding Company's common stock not sold in the subscription
offering will be offered for sale to the general public, giving preference to natural persons residing
in the bank's market area.
Upon completion of the plan,
the public will own 100% of the outstanding stock of the Holding Company.  The Holding Company will
own 100% of the Bank. The Bank may not pay dividends to the Holding Company if the dividends would
cause the Bank to fall below the "well capitalized" capital threshold.
The Holding Company intends
to contribute approximately 50% of the proceeds of the offering to the Bank. The balance will be
retained as the Holding Company's initial capitalization and may be used for general business
purposes including investment in securities, repurchasing shares of its common stock, paying dividends
as well as to effect corporate transactions, including mergers, acquisitions and branch expansions.
The funds received by the Bank will be used for general business purposes including originating loans
and purchasing securities and may also be used for growth through expansion of the branch office network.
The plan of conversion provides
for the establishment, upon the completion of the conversion, of a liquidation account by the Holding
Company for the benefit of Eligible Account Holders and Supplemental Eligible Account Holders in an
amount equal to (i) the MHC's ownership interest in the Company's total stockholders'
equity as of the date of the latest statement of financial condition used in the prospectus plus (ii)
 the value of the net assets of the MHC as of the date of the latest statement of financial condition
of the MHC used in the prospectus.  The plan of conversion also provides the establishment of a bank
liquidation account at the Bank to support the Holding Company's liquidation account.
The liquidation account is designed to provide payments to depositors of their liquidation
interests in the event of a liquidation of the Holding Company and the Bank or a liquidation
solely of the Bank.  Specifically, in the unlikely event that either the Bank or the Holding
Company and the Bank were to liquidate after the conversion, all claims of creditors, including
those of depositors, would be paid first, followed by distribution to eligible depositors of their
interests in the liquidation account maintained by the Holding Company.
Offering costs will be
deferred and deducted from the proceeds of the shares sold in the stock offering. If the offering is
not completed, all costs will be charged to expense. At December 31, 2010 (unaudited), approximately
$83,000 of expense has been incurred.
F - 54
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No person has been authorized to give any information or to make any representation other than
as contained in this prospectus and, if given or made, such other information or representation
must not be relied upon as having been authorized by Oneida Financial Corp. or Oneida Savings Bank.
This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any of
the securities offered hereby to any person in any jurisdiction in which such offer or solicitation
is not authorized or in which the person making such offer or solicitation is not qualified to do
so, or to any person to whom it is unlawful to make such offer or solicitation in such
jurisdiction. Neither the delivery of this prospectus nor any sale hereunder shall under any
circumstances create any implication that there has been no change in the affairs of Oneida
Financial Corp. or Oneida Savings Bank since any of the dates as of which information is furnished
herein or since the date hereof.
Up to 5,207,344 Shares
Oneida Financial Corp.
(Proposed Holding Company for
The Oneida Savings Bank)
COMMON STOCK
par value $0.01 per share
PROSPECTUS
Stifel Nicolaus
[Date of Prospectus]
These securities are not deposits or accounts and are not federally insured or guaranteed.
Until
, or 25 days after the commencement of the syndicated community offering,
if any, all dealers that effect transactions in the registered securities, whether or not
participating in this distribution, may be required to deliver a prospectus. This is in addition
to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect
to their unsold allotments or subscriptions.
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PROSPECTUS OF ONEIDA FINANCIAL CORP., A MARYLAND CORPORATION
PROXY STATEMENT OF ONEIDA FINANCIAL CORP., A FEDERAL CORPORATION
Oneida Savings Bank is converting from the mutual holding company structure to a fully-public
stock holding company structure. Currently, Oneida Savings Bank is a wholly-owned subsidiary of
Oneida Financial Corp., a federally chartered corporation, and Oneida Financial, MHC owns 55.2% of
Oneida Financial Corp.'s common stock. The remaining 44.8% of Oneida Financial Corp.'s common stock
is owned by public stockholders. As a result of the conversion, a newly formed Maryland corporation
named Oneida Financial Corp. ("Oneida Financial-New") will become the holding company of Oneida
Savings Bank. Each share of Oneida Financial Corp. common stock owned by the public will be
exchanged for between 0.7766 and 1.2083 shares of common stock of Oneida Financial-New, so that
immediately after the conversion Oneida Financial Corp.'s existing public stockholders will own the
same percentage of Oneida Financial-New common stock as they owned of Oneida Financial Corp.'s
common stock immediately prior to the conversion, excluding any new shares purchased by them in the
offering and their receipt of cash in lieu of fractional exchange shares, as further discussed
below. The actual number of shares that you will receive will depend on the percentage of Oneida
Financial Corp. common stock held by the public at the completion of the conversion, the final
independent appraisal of Oneida Financial-New and the number of shares of Oneida Financial-New
common stock sold in the offering described in the following paragraph. It will not depend on the
market price of Oneida Financial Corp. common stock. See "Proposal 1—Approval of the Plan of
Conversion—Share Exchange Ratio for Current Stockholders" for a discussion of the exchange ratio.
Based on the $  per share closing price of Oneida Financial Corp. common stock as of the last
trading day prior to the date of this proxy statement/prospectus, unless at least
shares
of Oneida Financial-New common stock are sold in the offering (which is between the ___and the
___of the offering range), the initial value of the Oneida Financial-New common stock you receive
in the share exchange would be less than the market value of the Oneida Financial Corp. common
stock you currently own. See "Risk Factors—The market value of Oneida Financial-New common stock
received in the share exchange may be less than the market value of Oneida Financial Corp. common
stock exchanged."
Concurrently with the exchange offer, we are offering up to 5,207,344 shares of common stock
of Oneida Financial-New, representing the 55.2% ownership interest of Oneida Financial, MHC in
Oneida Financial Corp., for sale to eligible depositors of Oneida Savings Bank, to Oneida Savings
Bank's tax qualified benefit plans and to the public, including Oneida Financial Corp.
stockholders, at a price of $8.00 per share. The conversion of Oneida Financial, MHC and the
offering and exchange of common stock by Oneida Financial-New is referred to herein as the
"conversion and offering." After the conversion and offering are completed, Oneida Savings Bank
will be a wholly-owned subsidiary of Oneida Financial-New, and 100% of the common stock of Oneida
Financial-New will be owned by public stockholders. As a result of the conversion and offering,
Oneida Financial Corp., the federal corporation, and Oneida Financial, MHC will cease to exist.
Oneida Financial Corp.'s common stock is currently traded on the Nasdaq Capital Market under
the trading symbol "ONFC." For a period of 20 trading days after the completion of the conversion
and offering, we expect Oneida Financial-New's shares of common stock will trade on the Nasdaq
Global Market under the symbol "ONFCD," and, thereafter, the trading symbol will revert to "ONFC."
The conversion and offering cannot be completed unless the stockholders of Oneida Financial
Corp. approve the Plan of Conversion and Reorganization of Oneida Financial, MHC, which may be
referred to herein as the "plan of conversion." Oneida Financial Corp. is holding a special
meeting of stockholders at
, on [meeting date], at ___.m., local time, to
consider and vote upon the plan of conversion. We must obtain the affirmative vote of the holders
of (i) two-thirds of the total number of votes entitled to be cast at the special meeting by Oneida
Financial Corp. stockholders,
Table of Contents
including shares held by Oneida Financial, MHC, and (ii) a majority of the total number of votes
entitled to be cast at the special meeting by Oneida Financial Corp. stockholders other than Oneida
Financial, MHC.
Oneida Financial Corp.'s board of directors unanimously recommends that
stockholders vote "FOR" the plan of conversion.
This document serves as the proxy statement for the special meeting of stockholders of Oneida
Financial Corp. and the prospectus for the shares of Oneida Financial-New common stock to be issued
in exchange for shares of Oneida Financial Corp. common stock. We urge you to read this entire
document carefully. You can also obtain information about us from documents that we have filed with
the Securities and Exchange Commission and the Office of Thrift Supervision. This document does
not serve as the prospectus relating to the offering by Oneida Financial-New of its shares of
common stock in the offering, which will be made pursuant to a separate prospectus. Stockholders
of Oneida Financial Corp. are not required to participate in the stock offering.
This proxy statement/prospectus contains information that you should consider in evaluating
the plan of conversion.
In particular, you should carefully read the section captioned "Risk
Factors" beginning on page 14 for a discussion of certain risk factors relating to the conversion
and offering.
These securities are not deposits or savings accounts and are not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.
Neither the Securities and Exchange Commission, the New York State Banking Department, the
Office of Thrift Supervision, nor any state securities regulator has approved or disapproved of
these securities or determined if this proxy statement/prospectus is accurate or complete. Any
representation to the contrary is a criminal offense.
For answers to your questions, please read this proxy statement/prospectus including the
Questions and Answers section, beginning on page 1. Questions about voting on the plan of
conversion may be directed to our proxy information agent,
, at 1-888-
, Monday
through Friday from ___ a.m. to ___ p.m., Eastern Time.
The date of this proxy statement/prospectus is [document date], and it is first being mailed
to stockholders of Oneida Financial Corp. on or about ___, 2010.
Table of Contents
ONEIDA FINANCIAL CORP.
182 Main Street
Oneida, New York 13421
(315) 363-2000
NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
On [meeting date], Oneida Financial Corp. will hold a special meeting of stockholders at
. The meeting will begin at ___p.m., local time. At the meeting, stockholders will
consider and act on the following:
1.
The approval of a plan of conversion and reorganization
whereby: (a) Oneida Financial, MHC and Oneida Financial Corp.,
a federal corporation, will convert and reorganize from the mutual
holding company structure to the stock holding company structure;
(b) Oneida Financial Corp., a Maryland corporation ("Oneida
Financial-New"), will become the new stock holding company of
Oneida Savings Bank;  (c) the outstanding shares of Oneida Financial
Corp., other than those held by Oneida Financial, MHC, will be converted
into shares of common stock of Oneida Financial-New; and (d) Oneida Financial-New
will offer shares of its common stock for sale in a subscription offering, a community
offering and, possibly, a syndicated community offering;
2.
The approval of the adjournment of the special meeting, if necessary, to
solicit additional proxies in the event that there are not sufficient votes at the time
of the special meeting to approve the plan of conversion and reorganization;
3.
The following informational proposals:
3a.
Approval of a provision in Oneida Financial-New's articles of
incorporation requiring a super-majority vote to approve certain amendments to
Oneida Financial-New's articles of incorporation;
3b.
Approval of a provision in Oneida Financial-New's articles of
incorporation requiring a super-majority vote of stockholders to approve
stockholder-proposed amendments to Oneida Financial-New's bylaws;
3c.
Approval of a provision in Oneida Financial-New's articles of
incorporation to limit the voting rights of shares beneficially owned in excess
of 10% of Oneida Financial-New's outstanding voting stock; and
4.
Such other business that may properly come before the meeting.
NOTE: The board of directors is not aware of any other business to come before the meeting.
The provisions of Oneida Financial-New's articles of incorporation that are summarized as
informational proposals 3a through 3c were approved as part of the process in which our board of
directors approved the plan of conversion and reorganization (referred to herein as the "plan of
conversion"). These proposals are informational in nature only, because the Office of Thrift
Supervision's regulations governing mutual-to-stock conversions do not provide for votes on matters
other than the plan of conversion. While we are asking you to vote with respect to each of the
informational proposals listed above, the proposed provisions for which an informational vote is
Table of Contents
requested will become effective if stockholders approve the plan of conversion, regardless of
whether stockholders vote to approve any or all of the informational proposals.
The board of directors has fixed [record date], as the record date for the determination of
stockholders entitled to notice of and to vote at the special meeting and at an adjournment or
postponement thereof.
Upon written request addressed to the Corporate Secretary of Oneida Financial Corp. at the
address given above, stockholders may obtain an additional copy of this proxy statement/prospectus
and/or a copy of the plan of conversion. In order to assure timely receipt of the additional copy
of the proxy statement/prospectus and/or the plan of conversion, the written request should be
received by Oneida Financial Corp. by ___, 2010.
Please complete and sign the enclosed proxy, which is solicited by the board of directors, and
mail it promptly in the enclosed envelope. If you prefer, you may vote by using the telephone or
Internet. For information on submitting your proxy or voting by telephone or Internet, please
refer to instructions on the enclosed proxy card. The proxy will not be used if you attend the
meeting and vote in person.
BY ORDER OF THE BOARD OF DIRECTORS
Eric E. Stickels
Corporate Secretary
Oneida, New York
[document date]
Table of Contents
TABLE OF CONTENTS
QUESTIONS AND ANSWERS FOR STOCKHOLDERS OF ONEIDA FINANCIAL CORP. REGARDING THE PLAN OF CONVERSION
1
SUMMARY
6
RISK FACTORS
1
INFORMATION ABOUT THE SPECIAL MEETING
2
PROPOSAL 1 — APPROVAL OF THE PLAN OF CONVERSION AND REORGANIZATION
6
PROPOSAL 2 — ADJOURNMENT OF THE SPECIAL MEETING
8
PROPOSALS 3a THROUGH 3c — INFORMATIONAL PROPOSALS RELATED TO THE ARTICLES OF INCORPORATION AND BYLAWS OF ONEIDA FINANCIAL CORP
8
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF ONEIDA FINANCIAL CORP
12
FORWARD-LOOKING STATEMENTS
12
HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING
12
OUR DIVIDEND POLICY
12
MARKET FOR THE COMMON STOCK
12
HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE
12
CAPITALIZATION
12
PRO FORMA DATA
12
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
12
BUSINESS OF ONEIDA FINANCIAL-NEW
12
BUSINESS OF ONEIDA FINANCIAL CORP. AND ONEIDA SAVINGS BANK
13
SUPERVISION AND REGULATION
13
TAXATION
13
MANAGEMENT
13
BENEFICIAL OWNERSHIP OF COMMON STOCK
13
SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS
13
COMPARISON OF STOCKHOLDERS' RIGHTS FOR EXISTING STOCKHOLDERS OF ONEIDA FINANCIAL CORP
13
RESTRICTIONS ON ACQUISITION OF ONEIDA FINANCIAL-NEW
13
DESCRIPTION OF CAPITAL STOCK OF ONEIDA FINANCIAL-NEW FOLLOWING THE CONVERSION
13
TRANSFER AGENT
13
EXPERTS
14
LEGAL AND TAX MATTERS
14
WHERE YOU CAN FIND ADDITIONAL INFORMATION
14
OTHER MATTERS
15
ONEIDA FINANCIAL CORP. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
[    ]
Table of Contents
QUESTIONS AND ANSWERS
FOR STOCKHOLDERS OF ONEIDA FINANCIAL CORP.
REGARDING THE PLAN OF CONVERSION
You should read this document for more information about the conversion. The plan of conversion
described herein has been conditionally approved by Oneida Financial Corp.'s primary federal
regulator, the Office of Thrift Supervision. However, such approval by this agency does not
constitute a recommendation or endorsement of the plan of conversion.
Q.
WHAT ARE STOCKHOLDERS BEING ASKED TO APPROVE?
A.
Oneida Financial Corp. stockholders as of [record date] are being asked to vote on the plan
of conversion pursuant to which Oneida Financial, MHC will convert from the mutual to the
stock form of organization. As part of the conversion, a newly formed Maryland corporation,
Oneida Financial-New, is offering its common stock to eligible depositors of Oneida Savings
Bank, to Oneida Savings Bank's tax qualified benefit plans, to stockholders of Oneida
Financial Corp. as of [record date] and to the public. The shares offered represent Oneida
Financial, MHC's current 55.2% ownership interest in Oneida Financial Corp. Voting for
approval of the plan of conversion will also include approval of the exchange ratio and the
articles of incorporation and bylaws of Oneida Financial-New (including the anti-takeover
provisions and provisions limiting stockholder rights).
Your vote is important. Without
sufficient votes "FOR" its adoption, we cannot implement the plan of conversion.
In addition, Oneida Financial Corp. stockholders are being asked to approve the adjournment
of the special meeting, if necessary, to solicit additional proxies in the event that there
are not sufficient votes at the time of the special meeting to approve the plan of
conversion.
Stockholders also are asked to vote on the following informational proposals with respect to
the articles of incorporation and bylaws of Oneida Financial-New:
•
Approval of a provision in Oneida Financial-New's articles of incorporation
requiring a super-majority vote to approve certain amendments to Oneida
Financial-New's articles of incorporation;
•
Approval of a provision in Oneida Financial-New's articles of incorporation
requiring a super-majority vote of stockholders to approve stockholder-proposed
amendments to Oneida Financial-New's bylaws; and
•
Approval of a provision in Oneida Financial-New's articles of incorporation
to limit the voting rights of shares beneficially owned in excess of 10% of
Oneida Financial-New's outstanding voting stock.
The provisions of Oneida Financial-New's articles of incorporation that are included as
informational proposals were approved as part of the process in which our board of directors
approved the plan of conversion. These proposals are informational in nature only, because
the Office of Thrift Supervision's regulations governing mutual-to-stock conversions do not
provide for votes on matters other than the plan of conversion. While we are asking you to
vote with respect to each of the informational proposals listed above, the proposed
provisions for which an informational vote is requested will become effective if
stockholders approve the plan of
1
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conversion, regardless of whether stockholders vote to approve any or all of the
informational proposals. The provisions of Oneida Financial-New's articles of incorporation
that are summarized above as informational proposals may have the effect of deterring, or
rendering more difficult, attempts by third parties to obtain control of Oneida
Financial-New if such attempts are not approved by the board of directors, or may make the
removal of the board of directors or management, or the appointment of new directors, more
difficult.
Your vote is important. Without sufficient votes "FOR" adoption of the plan of conversion,
we cannot implement the plan of conversion and the related stock offering.
Q.
WHAT ARE THE REASONS FOR THE CONVERSION AND RELATED OFFERING?
A.
The primary reasons for the conversion and offering are:
•
supporting internal growth through increased lending in the communities we serve;
•
improving our capital position during a period of significant economic, regulatory
and political uncertainty, especially for the financial services industry;
•
providing capital to support acquisitions of financial institutions and other
financial services corporations, including insurance agencies, as opportunities arise,
although we do not currently have any agreements to acquire a financial institution or
other entity;
•
enabling us to enhance existing products and services to meet the needs of our
marketplace;
•
assisting us in managing interest rate risk; and
•
improving the liquidity of our shares of common stock and enhancing stockholder
returns through more flexible capital management strategies.
Q.
WHAT WILL STOCKHOLDERS RECEIVE FOR THEIR EXISTING ONEIDA FINANCIAL CORP. SHARES?
A.
As more fully described in "Proposal 1 — Approval of the Plan of Conversion — Share
Exchange Ratio," depending on the number of shares sold in the offering, each share of common
stock that you own at the time of the completion of the conversion will be exchanged for
between 0.7766 shares at the minimum and 1.0507 shares at the maximum of the offering range
(or 1.2083 shares at the adjusted maximum of the offering range) of Oneida Financial-New
common stock (cash will be paid in lieu of any fractional shares). For example, if you own
100 shares of Oneida Financial Corp. common stock, and the exchange ratio is 1.0507 (at the
maximum of the offering range), after the conversion you will receive 105 shares of Oneida
Financial-New common stock and $0.56 in cash, the value of the fractional share, based on the
$8.00 per share purchase price of stock in the offering.
If you own shares of Oneida Financial Corp. common stock in a brokerage account in
"street name," your shares will be automatically exchanged, and you do not need to take
any action to exchange your shares of common stock. If you own shares in the form of
Oneida Financial Corp. stock certificates after the completion of the conversion and
stock offering, our exchange agent
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will mail to you a transmittal form with instructions to surrender your stock certificates.
New certificates of Oneida Financial-New common stock will be mailed to you within five
business days after the exchange agent receives properly executed transmittal forms and your
Oneida Financial Corp. stock certificates.
You should not submit a stock certificate until
you receive a transmittal form.
Q.
WHY WILL THE SHARES THAT I RECEIVE BE BASED ON A PRICE OF $8.00 PER SHARE RATHER THAN THE
TRADING PRICE OF THE COMMON STOCK PRIOR TO COMPLETION OF THE CONVERSION?
A.
The $8.00 per share price was determined by us, taking into account, among other factors, the
market price of our stock prior to adoption of the plan of conversion, the requirement under
Office of Thrift Supervision regulations that the common stock be offered in a manner that
will achieve the widest distribution of the stock, and desired liquidity in the common stock
after the offering. The amount of common stock Oneida Financial-New will issue at $8.00 per
share in the offering and the exchange is based on an independent appraisal of the estimated
market value of Oneida Financial-New, assuming the conversion and offering are completed. RP
Financial, LC., an appraisal firm experienced in appraisal of financial institutions, has
estimated that, as of February 19, 2010, this market value ranged from $48.5 million to $65.6
million, with a midpoint of $57.1 million. Based on this valuation, the number of shares of
common stock of Oneida Financial-New that existing public stockholders of Oneida Financial
Corp. will receive in exchange for their shares of Oneida Financial Corp. common stock will
range from 2,717,781 to 3,676,998, with a midpoint of 3,197,390 (a value of $21.7 million to
$29.4 million, with a midpoint of $25.6 million, at $8.00 per share). If market conditions so
warrant, the appraised value can be increased to $75.5 million, the adjusted maximum of the
appraisal, and the number of shares issued in the exchange for existing shares of Oneida
Financial Corp. can be increased to 4,228,548 (a value of $33.8 million, at $8.00 per share).
The number of shares received by the existing public stockholders of Oneida Financial Corp. is
intended to maintain their existing 44.8% ownership in our organization (excluding any new
shares purchased by them in the offering and their receipt of cash in lieu of fractional
exchange shares). The independent appraisal is based in part on Oneida Financial Corp.'s
financial condition and results of operations, the pro forma impact of the additional capital
raised by the sale of shares of common stock in the offering, and an analysis of a peer group
of ten publicly traded savings bank and thrift holding companies that RP Financial, LC.
considered comparable to Oneida Financial Corp.
Q.
DOES THE EXCHANGE RATIO DEPEND ON THE TRADING PRICE OF ONEIDA FINANCIAL CORP. COMMON STOCK?
A.
No, the exchange ratio will not be based on the market price of Oneida Financial Corp. common
stock. Therefore, changes in the price of Oneida Financial Corp. common stock between now and
the completion of the conversion and offering will not affect the calculation of the exchange
ratio.
Q.
WHY DOESN'T ONEIDA FINANCIAL CORP. WAIT TO CONDUCT THE CONVERSION AND OFFERING UNTIL THE
STOCK MARKET IMPROVES SO THAT CURRENT STOCKHOLDERS CAN RECEIVE A HIGHER EXCHANGE RATIO?
A.
The board of directors believes that the stock holding company form of organization and the
capital raised in the conversion offer important advantages and that it is in the best
interest of our
3
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stockholders to complete the conversion and offering sooner rather than later. There is no
way to know when market conditions will change, when regulations governing conversion to
stock form will change, or how they may change, or how changes in market conditions might
affect stock prices for financial institutions. The board of directors concluded that it
would be better to complete the conversion and offering now, under existing Office of Thrift
Supervision conversion regulations and under a valuation that offers a fair exchange ratio
to existing stockholders and an attractive price to new investors, rather than wait an
indefinite amount of time for potentially better market conditions.
Q.
SHOULD I SUBMIT MY STOCK CERTIFICATES NOW?
A.
No. If you hold stock certificate(s), instructions for exchanging the certificates will be
sent to you by our exchange agent
after
completion of the conversion. If your shares are held
in "street name" (
e.g.,
in a brokerage account) rather than in certificate form, the share
exchange will be reflected automatically in your account upon completion of the conversion.
Q.
HOW DO I VOTE?
A.
Mark your vote, sign each proxy card enclosed and return the card(s) to us, in the enclosed
proxy reply envelope. For information on submitting your proxy, please refer to instructions
on the enclosed proxy card.
YOUR VOTE IS IMPORTANT. PLEASE VOTE PROMPTLY.
Q.
IF MY SHARES ARE HELD IN STREET NAME, WILL MY BROKER, BANK OR OTHER NOMINEE AUTOMATICALLY
VOTE ON THE PLAN ON MY BEHALF?
A.
No. Your broker, bank or other nominee will not be able to vote your shares without
instructions from you. You should instruct your broker, bank or other nominee to vote your
shares, using the directions that they provide to you.
Q.
WHAT HAPPENS IF I DON'T VOTE?
A.
Your vote is very important. Not voting all the proxy card(s) you receive will have the same
effect as voting
"against"
the plan of conversion.
Without sufficient favorable votes
"for"
the plan of conversion, we will not proceed with the conversion and offering.
Q.
WHAT IF I DO NOT GIVE VOTING INSTRUCTIONS TO MY BROKER, BANK OR OTHER NOMINEE?
A.
Your vote is important. If you do not instruct your broker, bank or other nominee to vote
your shares, the unvoted proxy will have the same effect as a vote
"against"
the plan of
conversion.
Q.
MAY I PLACE AN ORDER TO PURCHASE SHARES IN THE OFFERING, IN ADDITION TO THE SHARES THAT I
WILL RECEIVE IN THE EXCHANGE?
A.
Yes. If you would like to receive a prospectus and stock order form, you must call our Stock
Information Center at 1-800-___, Monday through Friday between 10:00 a.m. and 4:00 p.m.,
Eastern Time. The Stock Information Center is closed weekends and bank holidays.
Eligible depositors of Oneida Savings Bank have priority subscription rights allowing them
to purchase common stock in a subscription offering. Shares not purchased in the
subscription
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offering may be available for sale to the public in a community offering, as described
herein. In the event orders for Oneida Financial-New common stock in a community offering
exceed the number of shares available for sale, shares may be allocated (to the extent
shares remain available) first to cover orders of natural persons residing in the New York
counties of Chenango, Cortland, Herkimer, Lewis, Madison, Oneida, Onondaga, Oswego and
Otsego; second to cover orders of Oneida Financial Corp. stockholders as of [record date];
and thereafter to cover orders of the general public. Stockholders of Oneida Financial Corp.
are subject to an ownership limitation.
Shares of common stock purchased in the offering by a stockholder and his or her associates
or individuals acting in concert with the stockholder,
plus
any shares a stockholder and
these individuals receive in the exchange for existing shares of Oneida Financial Corp.
common stock, may not exceed 5% of the total shares of common stock of Oneida Financial-New
to be issued and outstanding after the completion of the conversion.
Q.
WILL THE CONVERSION HAVE ANY EFFECT ON DEPOSIT AND LOAN ACCOUNTS AT ONEIDA SAVINGS BANK?
A.
No. The account number, amount, interest rate and withdrawal rights of deposit accounts will
remain unchanged. Deposits will continue to be federally insured by the Federal Deposit
Insurance Corporation up to the legal limit. Loans and rights of borrowers will not be
affected. Depositors will no longer have voting rights in the mutual holding company as to
matters currently requiring such vote, which will cease to exist, after the conversion and
offering. Only stockholders of Oneida Financial-New will have voting rights after the
conversion and offering.
Please note that properly completed and signed stock order forms, with full payment, must be
received (not postmarked) by the Stock Information Center no later than 2:00 p.m., Eastern Time on
___, 2010.
OTHER QUESTIONS?
For answers to other questions, please read this proxy statement/prospectus. Questions about
voting on the plan of conversion may be directed to our proxy information agent,
, at
1-888-
, Monday through Friday from _____ a.m. to _____ p.m., Eastern Time. Questions
about the stock offering may be directed to our Stock Information Center at 1-800-
, Monday
through Friday between 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center is
closed weekends and bank holidays.
5
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SUMMARY
This summary highlights material information from this proxy statement/prospectus and may not
contain all the information that is important to you. To understand the conversion and other
proposals fully, you should read this entire document carefully, including the sections entitled
"Risk Factors," "Proposal 1 — Approval of The Plan of Conversion and Reorganization," "Proposal 2
— Adjournment of the Special Meeting," "Proposals 3a through 3c — Informational Proposals Related
to the Articles of Incorporation and Bylaws of Oneida Financial-New" and the consolidated financial
statements and the notes to the consolidated financial statements.
The Special Meeting
Date, Time and Place.
Oneida Financial Corp. will hold its special meeting of stockholders at
, on [meeting date], at ___.m., Eastern Time.
The Proposals.
Stockholders will be voting on the following proposals at the special meeting:
1.
The approval of a plan of conversion and reorganization
whereby: (a) Oneida Financial, MHC and Oneida Financial Corp.,
a federal corporation, will convert and reorganize from the mutual
holding company structure to the stock holding company structure;
(b) Oneida Financial Corp., a Maryland corporation ("Oneida
Financial-New"), will become the new stock holding company of
Oneida Savings Bank;  (c) the outstanding shares of Oneida Financial
Corp., other than those held by Oneida Financial, MHC, will be converted
into shares of common stock of Oneida Financial-New; and (d) Oneida Financial-New
will offer shares of its common stock for sale in a subscription offering, a community
offering and, possibly, a syndicated community offering;
2.
The approval of the adjournment of the special meeting, if necessary, to
solicit additional proxies in the event that there are not sufficient votes at the time
of the special meeting to approve the plan of conversion; and
3.
The following informational proposals:
3a.
Approval of a provision in Oneida Financial-New's articles of
incorporation requiring a super-majority vote to approve certain amendments to
Oneida Financial-New's articles of incorporation;
3b.
Approval of a provision in Oneida Financial-New's articles of
incorporation requiring a super-majority vote of stockholders to approve
stockholder-proposed amendments to Oneida Financial-New's bylaws;
3c.
Approval of a provision in Oneida Financial-New's articles of
incorporation to limit the voting rights of shares beneficially owned in excess
of 10% of Oneida Financial-New's outstanding voting stock; and
4.
Such other business that may properly come before the meeting.
The provisions of Oneida Financial-New's articles of incorporation which are summarized as
informational proposals 3a through 3c were approved as part of the process in which our board of
6
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directors approved the plan of conversion. These proposals are informational in nature only,
because the Office of Thrift Supervision's regulations governing mutual-to-stock conversions do not
provide for votes on matters other than the plan of conversion. While we are asking you to vote
with respect to each of the informational proposals listed above, the proposed provisions for which
an informational vote is requested will become effective if stockholders approve the plan of
conversion, regardless of whether stockholders vote to approve any or all of the informational
proposals. The provisions of Oneida Financial-New's articles of incorporation which are summarized
as informational proposals may have the effect of deterring or rendering more difficult attempts by
third parties to obtain control of Oneida Financial-New, if such attempts are not approved by the
board of directors, or may make the removal of the board of directors or management, or the
appointment of new directors, more difficult.
Vote Required for Approval of Proposals by the Stockholders of Oneida Financial Corp.
Proposal 1: Approval of the Plan of Conversion.
We must obtain the affirmative vote of the
holders of (i) two-thirds of the total number of votes entitled to be cast at the special meeting
by Oneida Financial Corp. stockholders, including shares held by Oneida Financial, MHC, and (ii) a
majority of the total number of votes entitled to be cast at the special meeting by Oneida
Financial Corp. stockholders other than Oneida Financial, MHC.
Proposal 2: Approval of the adjournment of the special meeting.
We must obtain the
affirmative vote of at least a majority of the votes cast by Oneida Financial Corp. stockholders at
the special meeting to adjourn the special meeting, if necessary, to solicit additional proxies in
the event that there are not sufficient votes at the time of the special meeting to approve the
proposal to approve the plan of conversion.
Informational Proposals 3a through 3c.
The provisions of Oneida Financial-New's articles of
incorporation that are summarized as informational proposals were approved as part of the process
in which the board of directors of Oneida Financial Corp. approved the plan of conversion. These
proposals are informational in nature only, because the Office of Thrift Supervision's regulations
governing mutual-to-stock conversions do not provide for votes on matters other than the plan of
conversion. While we are asking you to vote with respect to each of the informational proposals
listed above, the proposed provisions for which an informational vote is requested will become
effective if stockholders approve the plan of conversion, regardless of whether stockholders vote
to approve any or all of the informational proposals. The provisions of Oneida Financial-New's
articles of incorporation that are summarized as informational proposals may have the effect of
deterring or rendering more difficult attempts by third parties to obtain control of Oneida
Financial-New, if such attempts are not approved by the board of directors, or may make the removal
of the board of directors or management, or the appointment of new directors, more difficult.
Other Matters.
We must obtain the affirmative vote of the majority of the votes cast by
holders of outstanding shares of common stock of Oneida Financial Corp. At this time, we know of
no other matters that may be presented at the special meeting.
Proposal 1 must also be approved by the depositors of Oneida Savings Bank at a special meeting
of depositors called for that purpose. Depositors will receive separate informational materials
for Oneida Financial, MHC regarding the conversion.
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Revocability of Proxies
You may revoke your proxy at any time before the vote is taken at the special meeting. To
revoke your proxy, you must advise the corporate secretary of Oneida Financial Corp. in writing
before your common stock has been voted at the special meeting, deliver a later-dated proxy or
attend the special meeting and vote your shares in person. Attendance at the special meeting will
not in itself constitute revocation of your proxy.
Vote by Oneida Financial, MHC
Management anticipates that Oneida Financial, MHC, our majority stockholder, will vote all of
its shares of common stock in favor of all the matters set forth above. If Oneida Financial, MHC
votes all of its shares in favor of each proposal, the approval of the adjournment of the special
meeting, if necessary, would be assured.
As of [record date] the directors and executive officers of Oneida Financial Corp.
beneficially owned ___shares, or approximately ___% of the outstanding shares of Oneida Financial
Corp. common stock, and Oneida Financial, MHC owned 4,309,750 shares, or approximately 55.2% of the
outstanding shares of Oneida Financial Corp. common stock.
Your board of directors unanimously recommends that you vote "FOR" the plan of conversion,
"FOR" the adjournment of the special meeting, if necessary, and "FOR" the Informational Proposals
3a through 3c.
The Companies
[Same as the offering prospectus]
Plan of Conversion and Reorganization
The Boards of Directors of Oneida Financial Corp., Oneida Financial, MHC, Oneida Savings Bank
and Oneida Financial-New have adopted a plan of conversion pursuant to which Oneida Savings Bank
will reorganize from a mutual holding company structure to a stock holding company structure.
Public stockholders of Oneida Financial Corp. will receive shares in Oneida Financial-New in
exchange for their shares of Oneida Financial Corp. common stock based on an exchange ratio. This
conversion to a stock holding company structure also includes the offering by Oneida Financial-New
of shares of its common stock to eligible depositors of Oneida Savings Bank and to the public,
including Oneida Financial Corp. stockholders, in a subscription offering and, if necessary, in a
community offering and/or syndicated community offering. Following the conversion and offering,
Oneida Financial, MHC and Oneida Financial Corp. will no longer exist, and Oneida Financial-New
will be the parent company of Oneida Savings Bank.
The conversion and offering cannot be completed unless the stockholders of Oneida Financial
Corp. approve the plan of conversion. Oneida Financial Corp.'s stockholders will vote on the plan
of conversion at Oneida Financial Corp.'s special meeting. This document is the proxy statement
used by Oneida Financial Corp.'s board of directors to solicit proxies for the special meeting. It
is also the prospectus of Oneida Financial-New regarding the shares of Oneida Financial-New common
stock to be issued to Oneida Financial Corp.'s stockholders in the share exchange. This document
does not serve as the prospectus relating to the offering by Oneida Financial-New of its shares of
common stock in the
8
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subscription offering and any community offering or syndicated community offering , which will be
made pursuant to a separate prospectus.
Our Current Organizational Structure
[Same as the offering prospectus]
Our Organizational Structure Following the Conversion
[Same as the offering prospectus]
Reasons for the Conversion
[Same as the offering prospectus]
Conditions to Completion of the Conversion
The Office of Thrift Supervision has conditionally approved the plan of conversion. However,
such approval does not constitute a recommendation or endorsement of the plan of conversion by that
agency.
We cannot complete the conversion unless:
•
The plan of conversion is approved by at least
a majority of votes
eligible
to be cast by depositors of Oneida Savings Bank as of ___, 2010;
•
The plan of conversion is approved by a vote of at least
two-thirds of
the outstanding shares
of common stock of Oneida Financial Corp. as of [record date],
including shares held by Oneida Financial, MHC. (Because Oneida Financial, MHC owns
55.2% of the outstanding shares of Oneida Financial Corp. common stock, we expect
that Oneida Financial, MHC, together with our directors, executive officers and
employees, will control the outcome of this vote);
•
The plan of conversion is approved by a vote of at least
a majority of
the outstanding shares
of common stock of Oneida Financial Corp. as of [record date],
excluding those shares held by Oneida Financial, MHC;
•
We sell at least the minimum number of shares of common stock offered;
and
•
We receive the final approval of the Office of Thrift Supervision to
complete the conversion; however, such approval does not constitute a recommendation
or endorsement of the plan of conversion by that agency.
Oneida Financial, MHC intends to vote its ownership interest in favor of the plan of
conversion. At [record date], Oneida Financial, MHC owned 55.2% of the outstanding shares of
common stock of Oneida Financial Corp. The directors and executive officers of Oneida Financial
Corp. and their affiliates owned 758,674 shares of Oneida Financial Corp., or 9.71% of the
outstanding shares of common stock and 21.68% of the outstanding shares of common stock, excluding
shares owned by Oneida Financial,
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MHC, as of [record date]. They have indicated their intention to vote those shares in favor of
the plan of conversion.
The Exchange of Existing Shares of Oneida Financial Corp. Common Stock
Office of Thrift Supervision regulations provide that in a conversion of a mutual holding
company to fully stock form, the public stockholders will be entitled to exchange their shares for
common stock of the new holding company, provided that the mutual holding company demonstrates to
the satisfaction of the Office of Thrift Supervision that the basis for the exchange is fair and
reasonable. Each publicly held share of Oneida Financial Corp. common stock will, at the
completion of the conversion, be automatically converted into the right to receive a number of
shares of Oneida Financial-New common stock. The number of shares of common stock will be
determined pursuant to the exchange ratio that ensures that the public stockholders will own the
same percentage of common stock in Oneida Financial-New after the conversion as they held in Oneida
Financial Corp. immediately prior to the conversion, excluding any new shares purchased by them in
the offering and their receipt of cash in lieu of fractional exchange shares. The exchange ratio is
not dependent on the market value of our currently outstanding Oneida Financial Corp. common stock.
The exchange ratio is based on the percentage of Oneida Financial Corp. common stock held by the
public, the independent valuation of Oneida Financial-New prepared by RP Financial, LC. and the
number of shares of common stock issued in the offering. The exchange ratio is expected to range
from approximately 0.7766 exchange shares for each publicly held share of Oneida Financial Corp. at
the minimum of the offering range to 1.2083 exchange shares for each publicly held share of Oneida
Financial Corp. at the adjusted maximum of the offering range.
If you are a stockholder of Oneida Financial Corp., at the conclusion of the conversion, your
shares will be exchanged for shares of Oneida Financial-New. The number of shares you receive will
be based on the number of shares of common stock you own and the final exchange ratio determined as
of the conclusion of the conversion.
The following table shows how the exchange ratio will adjust, based on the number of shares of
common stock issued in the offering and the shares of common stock issued and outstanding on the
date of this proxy statement/prospectus. The table also shows how many whole shares of Oneida
Financial-New a hypothetical owner of Oneida Financial Corp. common stock would receive in the
exchange for 100 shares of Oneida Financial Corp. common stock owned at the completion of the
conversion, depending on the number of shares issued in the offering.
Shares of Oneida
Total Shares of
Financial-New to be
Common Stock to be
Equivalent  Value
Shares to be Sold in
Issued for Shares of
Issued in
of Shares Based
Shares to be
This Offering
Oneida Financial Corp.
Conversion and
Upon Current Market
Received for 100
Amount
Percent
Amount
Percent
Offering
Exchange Ratio
Price (1)
Existing Shares
Minimum
3,346,875
55.19
%
2,717,781
44.81
%
6,064,656
0.7766
$
6.21
77
Midpoint
3,937,500
55.19
3,197,390
44.81
7,134,890
0.9136
7.31
91
Maximum
4,528,125
55.19
3,676,998
44.81
8,205,123
1.0507
8.40
105
15% above Maximum
5,207,344
55.19
4,228,548
44.81
9,435,892
1.2083
9.67
120
(1)
Represents the value of shares of Oneida Financial-New common stock to be received in
the conversion by a holder of one share of Oneida Financial Corp., pursuant to the exchange
ratio, assuming the market price of $8.00 per share.
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All currently outstanding options to purchase shares of Oneida Financial Corp. common
stock will expire on April 25, 2010, prior to the consummation of the conversion, unless previously
exercised. At December 31, 2009, there were 122,175 outstanding options to purchase shares of
Oneida Financial Corp. common stock, all of which have vested. If any such options are exercised
prior to their expiration on April 25, 2010, they will be funded with newly issued shares rather
than through open market purchases.
The Exchange of Existing Stockholders' Stock Certificates
The conversion of existing outstanding shares of Oneida Financial Corp. common stock into the
right to receive shares of Oneida Financial-New common stock will occur automatically at the
completion of the conversion. As soon as practicable after the completion of the conversion, our
exchange agent will send a transmittal form to each public stockholder of Oneida Financial Corp.
who holds stock certificates. The transmittal forms will contain instructions on how to exchange
stock certificates of Oneida Financial Corp. common stock for stock certificates of Oneida
Financial-New common stock. We expect that stock certificates evidencing shares of Oneida
Financial-New common stock will be distributed within five business days after we receive properly
executed transmittal forms, Oneida Financial Corp. stock certificates and other required documents.
Shares held by public stockholders in street name (such as in a brokerage account) will be
exchanged automatically upon the completion of the conversion; no transmittal forms will be mailed
relating to these shares.
No fractional shares of Oneida Financial-New common stock will be issued to any public
stockholder of Oneida Financial Corp. when the conversion is completed. For each fractional share
that would otherwise be issued to a stockholder who holds a stock certificate, we will pay by check
an amount equal to the product obtained by multiplying the fractional share interest to which the
holder would otherwise be entitled by the $8.00 offering purchase price per share. Payment for
fractional shares will be made as soon as practicable after the receipt by the exchange agent of
the transmittal forms and the surrendered Oneida Financial Corp. stock certificates. If your
shares of common stock are held in street name, you will automatically receive cash in lieu of
fractional shares.
You should not forward your stock certificates until you have received transmittal forms,
which will include forwarding instructions.
After the conversion, stockholders will not receive
shares of Oneida Financial-New common stock and will not be paid dividends on the shares of Oneida
Financial-New common stock until existing certificates representing shares of Oneida Financial
Corp. common stock are surrendered for exchange in compliance with the terms of the transmittal
form. When stockholders surrender their certificates, any unpaid dividends will be paid without
interest. For all other purposes, however, each certificate that represents shares of Oneida
Financial Corp. common stock outstanding at the effective date of the conversion will be considered
to evidence ownership of shares of Oneida Financial-New common stock into which those shares have
been converted by virtue of the conversion.
If a certificate for Oneida Financial Corp. common stock has been lost, stolen or destroyed,
our exchange agent will issue a new stock certificate upon receipt of appropriate evidence as to
the loss, theft or destruction of the certificate, appropriate evidence as to the ownership of the
certificate by the claimant, and appropriate and customary indemnification, which is normally
effected by the purchase of a bond from a surety company at the stockholder's expense.
All shares of Oneida Financial-New common stock that we issue in exchange for existing shares
of Oneida Financial Corp. common stock will be considered to have been issued in full satisfaction
of all
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rights pertaining to such shares of common stock, subject, however, to our obligation to pay
any dividends or make any other distributions with a record date prior to the effective date of the
conversion that may have been declared by us on or prior to the effective date, and which remain
unpaid at the effective date.
How We Determined the Offering Range, the Exchange Ratio and the $8.00 Per Share Stock Price
[Same as the offering prospectus]
How We Intend to Use the Proceeds From the Offering
[Same as the offering prospectus]
Our Dividend Policy
[Same as the offering prospectus]
Purchases and Ownership by Officers and Directors
We expect our directors and executive officers, together with their associates, to subscribe
for 163,875 shares (or approximately $1.3 million) of common stock in the offering, representing
___% of shares to be sold at the midpoint of the offering range. The purchase price paid by them
will be the same $8.00 per share price paid by all other persons who purchase shares of common
stock in the offering. Following the conversion, our directors and executive officers, together
with their associates, are expected to own 857,000 shares of common stock, or 12.01% of our total
outstanding shares of common stock at the midpoint of the offering range, which includes shares
they currently own that will be exchanged for new shares of Oneida Financial-New.
Benefits to Management and Potential Dilution to Stockholders Resulting from the Conversion
[Same as the offering prospectus]
Market for Common Stock
[Same as the offering prospectus]
Tax Consequences
As a general matter, the conversion will not be a taxable transaction for purposes of federal
or state income taxes to Oneida Financial, MHC, Oneida Financial Corp., Oneida Savings Bank, Oneida
Financial-New, persons eligible to subscribe in the subscription offering, or existing stockholders
of Oneida Financial Corp. Existing stockholders of Oneida Financial Corp. who receive cash in lieu
of fractional share interests in shares of Oneida Financial-New will recognize a gain or loss equal
to the difference between the cash received and the tax basis of the fractional share.
Changes in Stockholders' Rights for Existing Stockholders of Oneida Financial Corp.
As a result of the conversion, existing stockholders of Oneida Financial Corp. will become
stockholders of Oneida Financial-New. Some rights of stockholders of Oneida Financial-New will be
reduced compared to the rights stockholders currently have in Oneida Financial Corp. The reduction
in
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stockholder rights results from differences between the federal and Maryland charters and
bylaws, and from distinctions between federal and Maryland law. Many of the differences in
stockholder rights under the articles of incorporation and bylaws of Oneida Financial-New are not
mandated by Maryland law but have been chosen by management as being in the best interests of
Oneida Financial-New and all of its stockholders. The differences in stockholder rights in the
articles of incorporation and bylaws of Oneida Financial-New include the following: (i) approval
by at least 80% of outstanding shares required to amend certain provisions of the articles of
incorporation; (ii) a limitation on the right to vote shares beneficially owned in excess of 10% of
outstanding shares; (iii) approval by at least 80% of outstanding shares required to approve
stockholder-proposed amendments to the bylaws; (iv) greater lead time required for stockholders to
submit proposals for new business or to nominate directors; and (v) a majority of stockholders
required to call special meetings of stockholders. See "Comparison of Stockholders' Rights For
Existing Stockholders of Oneida Financial Corp." for a discussion of these differences.
Dissenters' Rights
Stockholders of Oneida Financial Corp. do not have dissenters' rights in connection with the
conversion and offering.
Important Risks in Owning Oneida Financial-New's Common Stock
Before you decide to purchase stock, you should read the "Risk Factors" section beginning on
page 14 of this proxy statement/prospectus.
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RISK FACTORS
You should consider carefully the following risk factors when deciding how to vote on the
conversion and before purchasing shares of Oneida Financial-New common stock.
Risks Related to Our Business
[Same as the offering prospectus]
Risks Related to the Offering and the Exchange
The market value of Oneida Financial-New common stock received in the share exchange may be less
than the market value of Oneida Financial Corp. common stock exchanged.
The number of shares of Oneida Financial-New common stock you receive will be based on an
exchange ratio that will be determined as of the date of completion of the conversion and offering.
The exchange ratio will be based on the percentage of Oneida Financial Corp. common stock held by
the public prior to the completion of the conversion and offering, the final independent appraisal
of Oneida Financial-New common stock prepared by RP Financial, LC. and the number of shares of
common stock sold in the offering. The exchange ratio will ensure that existing public shareholders
of Oneida Financial Corp. common stock will own the same percentage of Oneida Financial-New common
stock after the conversion and offering as they owned of Oneida Financial Corp. common stock
immediately prior to completion of the conversion and offering (excluding any new shares purchased
by them in the offering and their receipt of cash in lieu of fractional exchange shares). The
exchange ratio will not depend on the market price of Oneida Financial Corp. common stock.
The exchange ratio ranges from 0.7766 shares at the minimum to 1.0507 shares at the maximum
(or 1.2083 at the adjusted maximum) of the offering range of Oneida Financial-New common stock per
share of Oneida Financial Corp. common stock. Shares of Oneida Financial-New common stock issued in
the share exchange will have an initial value of $8.00 per share. Depending on the exchange ratio
and the market value of Oneida Financial Corp. common stock at the time of the exchange, the
initial market value of the Oneida Financial-New common stock that you receive in the share
exchange could be less than the market value of the Oneida Financial Corp. common stock that you
currently own. Based on the most recent closing price of Oneida Financial Corp. common stock prior
to the date of this proxy statement/prospectus, which was $___, unless at least ___shares of
Oneida Financial-New common stock are sold in the offering (which is between the ___and the ___
of the offering range), the initial value of the Oneida Financial-New common stock you receive in
the share exchange would be less than the market value of the Oneida Financial Corp. common stock
you currently own.
[Remaining risks are the same as the offering prospectus]
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INFORMATION ABOUT THE SPECIAL MEETING
General
This proxy statement/prospectus is being furnished to you in connection with the solicitation
by the board of directors of Oneida Financial Corp. of proxies to be voted at the special meeting
of stockholders to be held at
, on [meeting date], at
___.m., Eastern Time, and
any adjournment or postponement thereof.
The purpose of the special meeting is to consider and vote upon the Plan of Conversion and
Reorganization of Oneida Financial, MHC (referred to herein as the "plan of conversion").
In addition, stockholders will vote on a proposal to approve the adjournment of the special
meeting, if necessary, to solicit additional proxies in the event that there are not sufficient
votes at the time of the special meeting to approve the proposal. Stockholders also will vote on
informational proposals with respect to the articles of incorporation and bylaws of Oneida
Financial-New.
Voting in favor of or against the plan of conversion includes a vote for or against the
conversion of Oneida Financial, MHC to a stock holding company as contemplated by the plan of
conversion. Voting in favor of the plan of conversion will not obligate you to purchase any shares
of common stock in the offering and will not affect the balance, interest rate or federal deposit
insurance of any deposits at Oneida Savings Bank.
Who Can Vote at the Meeting
You are entitled to vote your Oneida Financial Corp. common stock if our records show that you
held your shares as of the close of business on [record date]. If your shares are held in a stock
brokerage account or by a bank or other nominee, you are considered the beneficial owner of shares
held in street name and these proxy materials are being forwarded to you by your broker or nominee.
As the beneficial owner, you have the right to direct your broker or nominee how to vote.
As of the close of business on [record date], there were
shares of Oneida Financial
Corp. common stock outstanding. Each share of common stock has one vote.
Attending the Meeting
If you are a stockholder as of the close of business on [record date], you may attend the
meeting. However, if you hold your shares in street name, you will need proof of ownership to be
admitted to the meeting. A recent brokerage statement or a letter from a bank or broker are
examples of proof of ownership. If you want to vote your shares of Oneida Financial Corp. common
stock held in street name in person at the meeting, you will have to get a written proxy in your
name from the broker, bank or other nominee who holds your shares.
Quorum; Vote Required
The special meeting will be held only if there is a quorum. A quorum exists if a majority of
the outstanding shares of common stock entitled to vote, represented in person or by proxy, is
present at the meeting. If you return valid proxy instructions or attend the meeting in person,
your shares will be counted for purposes of determining whether there is a quorum, even if you
abstain from voting. Broker non-votes also will be counted for purposes of determining the
existence of a quorum. A broker non-vote occurs when a broker, bank or other nominee holding
shares for a beneficial owner does not vote on a
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particular proposal because the nominee does not have discretionary voting power with respect to
that item and has not received voting instructions from the beneficial owner.
Proposal 1: Approval of the Plan of Conversion and Reorganization.
We must obtain the
affirmative vote of the holders of (i) two-thirds of the outstanding common stock of Oneida
Financial Corp. entitled to be cast at the special meeting, including shares held by Oneida
Financial, MHC, and (ii) a majority of the outstanding shares of common stock of Oneida Financial
Corp. entitled to be cast at the special meeting, other than shares held by Oneida Financial, MHC.
Proposal 2: Approval of the adjournment of the special meeting.
We must obtain the
affirmative vote of at least a majority of the votes cast by Oneida Financial Corp. stockholders
entitled to vote at the special meeting to adjourn the special meeting, if necessary, to solicit
additional proxies in the event that there are not sufficient votes at the time of the special
meeting to approve the proposal to approve the plan of conversion.
Informational Proposals 3a through 3c: Approval of certain provisions in Oneida
Financial-New's articles of incorporation.
The provisions of Oneida Financial-New's articles of
incorporation which are summarized as informational proposals were approved as part of the process
in which the board of directors of Oneida Financial Corp. approved the plan of conversion. These
proposals are informational in nature only, because the Office of Thrift Supervision's regulations
governing mutual-to-stock conversions do not provide for votes on matters other than the plan of
conversion. While we are asking you to vote with respect to each of the informational proposals,
the proposed provisions for which an informational vote is requested will become effective if
stockholders approve the plan of conversion, regardless of whether stockholders vote to approve any
or all of the informational proposals. The provisions of Oneida Financial-New's articles of
incorporation which are summarized as informational proposals may have the effect of deterring or
rendering more difficult attempts by third parties to obtain control of Oneida Financial-New, if
such attempts are not approved by the board of directors, or may make the removal of the board of
directors or management, or the appointment of new directors, more difficult.
Other Matters.
We must obtain the affirmative vote of the majority of the votes cast by
holders of outstanding shares of common stock of Oneida Financial Corp. At this time, we know of
no other matters that may be presented at the special meeting.
Shares Held by Oneida Financial, MHC and Our Officers and Directors
As of [record date], Oneida Financial, MHC beneficially owned 4,309,750 shares of Oneida
Financial Corp. common stock. This equals approximately 55.2% of our outstanding shares. Oneida
Financial, MHC intends to vote all of its shares in favor of Proposal 1—Approval of the plan of
conversion, Proposal 2—Approval of the adjournment of the special meeting, and Informational
Proposals 3a through 3c.
As
of [record date], our officers and directors beneficially owned ___ shares of Oneida
Financial Corp. common stock, not including shares that they may acquire upon the exercise of
outstanding stock options. This equals ___% of our outstanding shares and ___% of shares held by
persons other than Oneida Financial, MHC.
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Voting by Proxy
Our board of directors is sending you this proxy statement/prospectus to request that you
allow your shares of Oneida Financial Corp. common stock to be represented at the special meeting
by the persons named in the enclosed proxy card. All shares of Oneida Financial Corp. common stock
represented at the meeting by properly executed and dated proxies will be voted according to the
instructions indicated on the proxy card. If you sign, date and return a proxy card without giving
voting instructions, your shares will be voted as recommended by our board of directors. Our board
of directors recommends that you vote
"FOR"
approval of the plan of conversion,
"FOR"
approval of
the adjournment of the special meeting, and
"FOR"
each of the Informational Proposals 3a through
3c.
If any matters not described in this proxy statement/prospectus are properly presented at the
special meeting, the board of directors will use their judgment to determine how to vote your
shares. We do not know of any other matters to be presented at the special meeting.
If your Oneida Financial Corp. common stock is held in street name, you will receive
instructions from your broker, bank or other nominee that you must follow to have your shares
voted. Your broker, bank or other nominee may allow you to deliver your voting instructions via
the telephone or the Internet. Please see the instruction form provided by your broker, bank or
other nominee that accompanies this proxy statement/prospectus.
Revocability of Proxies
You may revoke your proxy at any time before the vote is taken at the special meeting. To
revoke your proxy, you must advise the corporate secretary of Oneida Financial Corp. in writing
before your common stock has been voted at the special meeting, deliver a later-dated proxy or
attend the special meeting and vote your shares in person. Attendance at the special meeting will
not in itself constitute revocation of your proxy.
Solicitation of Proxies
This proxy statement/prospectus and the accompanying proxy card are being furnished to you in
connection with the solicitation of proxies for the special meeting by the board of directors.
Oneida Financial Corp. will pay the costs of soliciting proxies from its stockholders. To the
extent necessary to permit approval of the plan of conversion and the other proposals being
considered,
, our proxy solicitor, directors, officers or employees of Oneida
Financial Corp. and Oneida Savings Bank may solicit proxies by mail, telephone and other forms of
communication. We will reimburse such persons for their reasonable out-of-pocket expenses incurred
in connection with such solicitation. For its services as information agent and stockholder proxy
solicitor, we will pay
, $___ plus out-of-pocket expenses and charges for
telephone calls in connection with the solicitation.
We will also reimburse banks, brokers, nominees and other fiduciaries for the expenses they
incur in forwarding the proxy materials to you.
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Participants in the Employee Stock Ownership Plan
If you participate in Oneida Savings Bank Employee Stock Ownership Plan, you will receive a
voting instruction form that reflects all shares you may direct the trustees to vote on your behalf
under the plan. Under the terms of the Employee Stock Ownership Plan, the Employee Stock Ownership
Plan trustee votes all shares held by the Employee Stock Ownership Plan, but each Employee Stock
Ownership Plan participant may direct the trustee how to vote the shares of common stock allocated
to his or her account. The Employee Stock Ownership Plan trustee, subject to the exercise of its
fiduciary duties, will vote all unallocated shares of Oneida Financial Corp. common stock held by
the ESOP and allocated shares for which no voting instructions are received in the same proportion
as shares for which it has received timely voting instructions. The deadline for returning your
voting instructions to the plan's trustee is
, 2010.
Participants in the 401(k) Plan
If you hold shares of common stock through the Oneida Savings Bank 401(k) Savings Plan
("401(k) Plan"), you will receive a voting instruction form that reflects all shares that you may
direct the trustee to vote on your behalf under the 401(k) Plan. Under the terms of the 401(k)
Plan, a participant is entitled to direct the trustee as to how to vote his or her interest in any
shares of common stock held by the Oneida Financial Corp. Stock Fund. The trustee will vote all
shares for which no directions are given, or for which instructions were not timely received, in
the same proportion as the shares for which the trustee received voting instructions. The deadline
for returning your voting instructions to the 401(k) Plan's trustee is
, 2010.
Recommendation of the Board of Directors
The board of directors recommends that you promptly sign and mark the enclosed proxy in favor
of the above described proposals, including the adoption of the plan of conversion, and promptly
return it in the enclosed envelope. Voting the proxy card will not prevent you from voting in
person at the special meeting. For information on submitting your proxy, please refer to the
instructions on the enclosed proxy.
Your prompt vote is very important. Failure to vote will have the same effect as voting
against the plan of conversion.
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PROPOSAL 1 — APPROVAL OF THE PLAN OF CONVERSION AND REORGANIZATION
The boards of directors of Oneida Financial Corp. and of Oneida Financial, MHC have approved
the plan of conversion, referred to herein as the "plan of conversion." The plan of conversion
must also be approved by the members of Oneida Financial, MHC and the stockholders of Oneida
Financial Corp. A special meeting of members and a special meeting of stockholders have been
called for this purpose. The Office of Thrift Supervision has conditionally approved the plan of
conversion; however, such approval does not constitute a recommendation or endorsement of the plan
of conversion by that agency.
General
Pursuant to the plan of conversion, our organization will convert from the mutual holding
company form of organization to the fully stock form. Currently, Oneida Savings Bank is a
wholly-owned subsidiary of Oneida Financial Corp. and Oneida Financial, MHC owns approximately
55.2% of Oneida Financial Corp.'s common stock. The remaining 44.8% of Oneida Financial Corp.'s
common stock is owned by public stockholders. As a result of the conversion, our newly formed
company, Oneida Financial-New, will become the holding company of Oneida Savings Bank. Each share
of Oneida Financial Corp. common stock owned by the public will be exchanged for between 0.7766
shares at the minimum and 1.0507 shares at the maximum of the offering range (or 1.2083 at the
adjusted maximum of the offering range) of Oneida Financial-New common stock, so that Oneida
Financial Corp.'s existing public stockholders will own the same percentage of Oneida Financial-New
common stock as they owned of Oneida Financial Corp.'s common stock immediately prior to the
conversion (excluding any new shares purchased by them in the offering and their receipt of cash in
lieu of fractional exchange shares). The actual number of shares that you will receive will depend
on the percentage of Oneida Financial Corp. common stock held by the public at the completion of
the conversion, the final independent appraisal of Oneida Financial-New and the number of shares of
Oneida Financial-New common stock sold in the offering described in the following paragraph. It
will not depend on the market price of Oneida Financial Corp. common stock.
Concurrently with the exchange offer, we are offering up to 5,207,344 shares of common stock
of Oneida Financial-New, representing the 55.2% ownership interest of Oneida Financial, MHC in
Oneida Financial Corp., for sale to eligible depositors and to the public at a price of $8.00 per
share. After the conversion and offering are completed, Oneida Savings Bank will be a wholly-owned
subsidiary of Oneida Financial-New, and 100% of the common stock of Oneida Financial-New will be
owned by public stockholders. As a result of the conversion and offering, Oneida Financial Corp.
and Oneida Financial, MHC will cease to exist.
Oneida Financial-New intends to contribute between $12.2 million and $16.8 million of net
proceeds, or $19.4 million if the offering range is increased by 15%, to the Oneida Savings Bank
and to retain between $11.1 million and $15.3 million of the net proceeds, or $17.7 million if the
offering range is increased by 15%. The conversion will be consummated only upon the issuance of
at least the minimum number of shares of our common stock offered pursuant to the plan of
conversion.
The plan of conversion provides that we will offer shares of common stock in a "subscription
offering" in the following descending order of priority:
(i)
First, to depositors with accounts at Oneida Savings Bank with aggregate
balances of at least $50 at the close of business on December 31, 2008.
(ii)
Second, to our tax-qualified employee benefit plans (including Oneida Savings
Bank's employee stock ownership plan and 401(k) plan), which will receive, without
payment
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therefor, nontransferable subscription rights to purchase in the aggregate up to 10%
of the shares of common stock sold in the offering. We expect our employee stock
ownership plan to purchase 4% of the shares of common stock sold in the stock
offering.
(iii)
Third, to depositors with accounts at Oneida Savings Bank with aggregate
balances of at least $50 at the close of business on March 31, 2010.
(iv)
Fourth, to depositors of Oneida Savings Bank at the close of business on
[member voting date].
Shares of common stock not purchased in the subscription offering may be offered for sale to
the general public in a "community offering," with a preference given first to natural persons
residing in the New York Counties of Chenango, Cortland, Herkimer, Lewis, Madison, Oneida,
Onondaga, Oswego and Otsego, and then to Oneida Financial Corp.'s public stockholders as of
[stockholder record date]. The community offering, if held, may begin concurrently with, during or
promptly after the subscription offering as we may determine at any time. We also may offer for
sale shares of common stock not purchased in the subscription offering or community offering
through a "syndicated community offering" managed by Stifel, Nicolaus & Company, Incorporated. We
have the right to accept or reject, in our sole discretion, orders received in the community
offering or syndicated community offering. Any determination to accept or reject stock orders in
the community offering and the syndicated community offering will be based on the facts and
circumstances available to management at the time of the determination.
The community offering, if any, may begin at the same time as, during, or after the
subscription offering and must be completed within 45 days after the completion of the subscription
offering unless otherwise extended by the Office of Thrift Supervision. See "—Community Offering."
The syndicated community offering may begin at any time following the commencement of the
subscription offering and must be completed within 45 days after the completion of the subscription
offering unless otherwise extended by us, with approval of the Office of Thrift Supervision.
Alternatively, we may sell any remaining shares in an underwritten public offering, which would be
conducted on a firm commitment basis. See "—Syndicated Community Offering."
We determined the number of shares of common stock to be offered in the offering based upon an
independent valuation of the estimated pro forma market value of Oneida Financial-New. All shares
of common stock to be sold in the offering will be sold at $8.00 per share. Investors will not be
charged a commission to purchase shares of common stock in the offering. The independent valuation
will be updated and the final number of shares of common stock to be issued in the offering will be
determined at the completion of the offering. See "—Stock Pricing and Number of Shares to be
Issued" for more information as to the determination of the estimated pro forma market value of the
common stock.
The following is a brief summary of the conversion and is qualified in its entirety by
reference to the provisions of the plan of conversion. A copy of the plan of conversion is
available for inspection at each branch office of Oneida Savings Bank and at the Northeast Regional
and the Washington, D.C. offices of the Office of Thrift Supervision. The plan of conversion is
also filed as an exhibit to Oneida Financial, MHC's application to convert from mutual to stock
form of which this prospectus is a part, copies of which may be obtained from the Office of Thrift
Supervision. The plan of conversion is also filed as an exhibit to the registration statement we
have filed with the Securities and Exchange Commission, of which this prospectus is a part, copies
of which may be obtained from the Securities and Exchange Commission or online at the Securities
and Exchange Commission's website. See "Where You Can Find Additional Information."
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The board of directors recommends that you vote "FOR" the Plan of Conversion of Oneida
Financial, MHC.
Reasons for the Conversion and Offering
[Same as the offering prospectus]
PROPOSAL 2 — ADJOURNMENT OF THE SPECIAL MEETING
If there are not sufficient votes to constitute a quorum or to approve the plan of conversion
at the time of the special meeting, the proposals may not be approved unless the special meeting is
adjourned to a later date or dates in order to permit further solicitation of proxies. In order to
allow proxies that have been received by Oneida Financial Corp. at the time of the special meeting
to be voted for an adjournment, if necessary, Oneida Financial Corp. has submitted the question of
adjournment to its stockholders as a separate matter for their consideration. The board of
directors of Oneida Financial Corp. recommends that stockholders vote "FOR" the adjournment
proposal. If it is necessary to adjourn the special meeting, no notice of the adjourned special
meeting is required to be given to stockholders (unless the adjournment is for more than 30 days or
if a new record date is fixed), other than an announcement at the special meeting of the hour, date
and place to which the special meeting is adjourned.
The board of directors recommends that you vote "FOR" the adjournment of the special meeting,
if necessary, to solicit additional proxies in the event that there are not sufficient votes at the
time of the special meeting to approve the plan of conversion.
PROPOSALS 3a THROUGH 3c — INFORMATIONAL PROPOSALS RELATED TO THE
ARTICLES OF INCORPORATION AND BYLAWS OF ONEIDA FINANCIAL CORP.
By their approval of the plan of conversion as set forth in Proposal 1, the board of directors
of Oneida Financial Corp. has approved each of the informational proposals numbered 3a through 3c,
all of which relate to provisions included in the articles of incorporation of Oneida
Financial-New. Each of these informational proposals is discussed in more detail below.
As a result of the conversion, the public stockholders of Oneida Financial Corp., whose rights
are presently governed by the charter and bylaws of Oneida Financial Corp., will become
stockholders of Oneida Financial-New, whose rights will be governed by the articles of
incorporation and bylaws of Oneida Financial-New. The following informational proposals address
the material differences between the governing documents of the two companies. This discussion is
qualified in its entirety by reference to the charter and bylaws of Oneida Financial Corp. and the
articles of incorporation and bylaws of Oneida Financial-New. See "Where You Can Find Additional
Information" for procedures for obtaining a copy of those documents.
The provisions of Oneida Financial-New's articles of incorporation that are summarized as
informational proposals 3a through 3c were approved as part of the process in which the board of
directors of Oneida Financial Corp. approved the plan of conversion. These proposals are
informational in nature only, because the Office of Thrift Supervision's regulations governing
mutual-to-stock conversions do not provide for votes on matters other than the plan of conversion.
Oneida Financial Corp.'s stockholders are not being asked to approve these informational proposals
at the special meeting. While we are asking you to vote with respect to each of the informational
proposals set forth below, the proposed provisions for which an informational vote is requested
will become effective if stockholders
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approve the plan of conversion, regardless of whether stockholders vote to approve any or all of
the informational proposals. The provisions of Oneida Financial-New's articles of incorporation
and bylaws which are summarized as informational proposals may have the effect of deterring or
rendering more difficult attempts by third parties to obtain control of Oneida Financial-New, if
such attempts are not approved by the board of directors, or may make the removal of the board of
directors or management, or the appointment of new directors, more difficult.
Informational Proposal 3a. – Approval of a Provision in Oneida Financial-New's Articles of
Incorporation Requiring a Super-Majority Vote to Amend Certain Provisions of the Articles of
Incorporation of Oneida Financial-New.
No amendment of the charter of Oneida Financial Corp. may
be made unless it is first proposed by the board of directors, then preliminarily approved by the
Office of Thrift Supervision, and thereafter approved by the holders of a majority of the total
votes eligible to be cast at a legal meeting. The articles of incorporation of Oneida
Financial-New may generally be amended, upon the submission of an amendment by the board of
directors to a vote of the stockholders, by the affirmative vote of at least two-thirds of the
outstanding shares of common stock, or by the affirmative vote of a majority of the outstanding
shares of common stock if at least two-thirds of the members of the whole board of directors
approves such amendment; provided, however, that any amendment of Section C, D, E or F of Article
Fifth (Preferred Stock, Restrictions on Voting Rights of the Corporation's Equity Securities,
Majority Vote, Quorum), Article 7 (Directors), Article 8 (Bylaws), Article 9 (Evaluation of Certain
Offers), Article 10 (Indemnification, etc. of Directors and Officers), Article 11 (Limitation of
Liability) and Article 12 (Amendment of the Articles of Incorporation) must be approved by the
affirmative vote of the holders of at least 80% of the outstanding shares entitled to vote, except
that the board of directors may amend the articles of incorporation without any action by the
stockholders to increase or decrease the aggregate number of shares of capital stock.
These limitations on amendments to specified provisions of Oneida Financial-New's articles of
incorporation are intended to ensure that the referenced provisions are not limited or changed upon
a simple majority vote. While this limits the ability of stockholders to amend those provisions,
Oneida Financial, MHC, as a 55.2% stockholder, currently can effectively block any stockholder
proposed change to the charter.
The requirement of a super-majority stockholder vote to amend specified provisions of Oneida
Financial-New's articles of incorporation could have the effect of discouraging a tender offer or
other takeover attempt where the ability to make fundamental changes through amendments to the
articles of incorporation is an important element of the takeover strategy of the potential
acquiror. The board of directors believes that the provisions limiting certain amendments to the
articles of incorporation will put the board of directors in a stronger position to negotiate with
third parties with respect to transactions potentially affecting the corporate structure of Oneida
Financial-New and the fundamental rights of its stockholders, and to preserve the ability of all
stockholders to have an effective voice in the outcome of such matters.
The board of directors recommends that you vote "FOR" the approval of a provision in Oneida
Financial-New's articles of incorporation requiring a super-majority vote to approve certain
amendments to Oneida Financial-New's articles of incorporation.
Informational Proposal 3b. – Approval of a Provision in Oneida Financial-New's Articles of
Incorporation Requiring a Super-Majority Vote of Stockholders to Approve Stockholder Proposed
Amendments to Oneida Financial-New's Bylaws.
An amendment to Oneida Financial Corp.'s bylaws
proposed by stockholders must be approved by the holders of a majority of the total votes eligible
to be cast at a legal meeting subject to applicable approval by the Office of Thrift Supervision.
The articles of incorporation of Oneida Financial-New provide that stockholders may only amend the
bylaws if such
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proposal is approved by the affirmative vote of the holders of at least 80% of the outstanding
shares entitled to vote.
The requirement of a super-majority stockholder vote to amend the bylaws of Oneida
Financial-New is intended to ensure that the bylaws are not limited or changed upon a simple
majority vote of stockholders. While this limits the ability of stockholders to amend the bylaws,
Oneida Financial, MHC, as a 55.2% stockholder, currently can effectively block any stockholder
proposed change to the bylaws. Also, the board of directors of both Oneida Financial Corp. and
Oneida Financial-New may by a majority vote amend either company's bylaws.
This provision in Oneida Financial-New's articles of incorporation could have the effect of
discouraging a tender offer or other takeover attempt where the ability to make fundamental changes
through amendments to the bylaws is an important element of the takeover strategy of the potential
acquiror. The board of directors believes that the provision limiting amendments to the bylaws will
put the board of directors in a stronger position to negotiate with third parties with respect to
transactions potentially affecting the corporate structure of Oneida Financial-New and the
fundamental rights of its stockholders, and to preserve the ability of all stockholders to have an
effective voice in the outcome of such matters.
The board of directors recommends that you vote "FOR" the approval of the provision in Oneida
Financial-New's articles of incorporation requiring a super-majority vote of stockholders to
approve stockholder proposed amendments to Oneida Financial-New's bylaws.
Informational Proposal 3c. – Approval of a Provision in Oneida Financial-New's Articles of
Incorporation to Limit the Voting Rights of Shares Beneficially Owned in Excess of 10% of Oneida
Financial-New's Outstanding Voting Stock.
The articles of incorporation of Oneida Financial-New
provide that in no event shall any person, who directly or indirectly beneficially owns in excess
of 10% of the then-outstanding shares of common stock as of the record date for the determination
of stockholders entitled or permitted to vote on any matter, be entitled or permitted to any vote
in respect of the shares held in excess of the 10% limit. Beneficial ownership is determined
pursuant to the federal securities laws and includes, but is not limited to, shares as to which any
person and his or her affiliates (i) have the right to acquire pursuant to any agreement,
arrangement or understanding or upon the exercise of conversion rights, exchange rights, warrants
or options and (ii) have or share investment or voting power (but shall not be deemed the
beneficial owner of any voting shares solely by reason of a revocable proxy granted for a
particular meeting of stockholders, and that are not otherwise beneficially, or deemed by Oneida
Financial-New to be beneficially, owned by such person and his or her affiliates).
The foregoing restriction does not apply to any employee benefit plans of Oneida Financial-New
or any subsidiary or a trustee of a plan.
The restated organization certificate of Oneida Savings Bank will provide that, for a period
of five years from the effective date of the conversion, no person shall directly or indirectly
offer to acquire or acquire more than 10% of the then-outstanding shares of common stock. The
foregoing restriction does not apply to:
•
the purchase of shares by underwriters in connection with a public offering; or
•
the purchase of shares by any employee benefit plans of Oneida Financial Corp. or
any subsidiary.
23
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The provision in Oneida Financial-New's articles of incorporation limiting the voting rights
of beneficial owners of more than 10% of Oneida Financial-New's outstanding voting stock is
intended to limit the ability of any person to acquire a significant number of shares of Oneida
Financial-New common stock and thereby gain sufficient voting control so as to cause Oneida
Financial-New to effect a transaction that may not be in the best interests of Oneida Financial-New
and its stockholders generally. This provision will not prevent a stockholder from seeking to
acquire a controlling interest in Oneida Financial-New, but it will prevent a stockholder from
voting more than 10% of the outstanding shares of common stock unless that stockholder has first
persuaded the board of directors of the merits of the course of action proposed by the stockholder.
The board of directors of Oneida Financial-New believes that fundamental transactions generally
should be first considered and approved by the board of directors as it generally believes that it
is in the best position to make an initial assessment of the merits of any such transactions and
that its ability to make the initial assessment could be impeded if a single stockholder could
acquire a sufficiently large voting interest so as to control a stockholder vote on any given
proposal. This provision in Oneida Financial-New's articles of incorporation makes an acquisition,
merger or other similar corporate transaction less likely to occur, even if such transaction is
supported by most stockholders, because it can prevent a holder of shares in excess of the 10%
limit from voting the excess shares in favor of the transaction. Thus, it may be deemed to have an
anti-takeover effect.
The board of directors recommends that you vote "FOR" the approval of a provision in Oneida
Financial-New's articles of incorporation to limit the voting rights of shares beneficially owned
in excess of 10% of Oneida Financial-New's outstanding voting stock.
24
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SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
OF
ONEIDA FINANCIAL CORP.
[Same as the offering prospectus]
FORWARD-LOOKING STATEMENTS
[Same as the offering prospectus]
HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING
[Same as the offering prospectus]
OUR DIVIDEND POLICY
[Same as the offering prospectus]
MARKET FOR THE COMMON STOCK
[Same as the offering prospectus]
HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE
[Same as the offering prospectus]
CAPITALIZATION
[Same as the offering prospectus]
PRO FORMA DATA
[Same as the offering prospectus]
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
[Same as the offering prospectus]
BUSINESS OF ONEIDA FINANCIAL-NEW
[Same as the offering prospectus]
25
Table of Contents
BUSINESS OF ONEIDA FINANCIAL CORP. AND ONEIDA SAVINGS BANK
[Same as the offering prospectus]
SUPERVISION AND REGULATION
[Same as the offering prospectus]
TAXATION
[Same as the offering prospectus]
MANAGEMENT
[Same as the offering prospectus]
BENEFICIAL OWNERSHIP OF COMMON STOCK
[Same as the offering prospectus]
SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS
[Same as the offering prospectus]
COMPARISON OF STOCKHOLDERS' RIGHTS FOR EXISTING
STOCKHOLDERS OF ONEIDA FINANCIAL CORP.
[Same as the offering prospectus]
RESTRICTIONS ON ACQUISITION OF ONEIDA FINANCIAL-NEW
[Same as the offering prospectus]
DESCRIPTION OF CAPITAL STOCK OF ONEIDA FINANCIAL-NEW FOLLOWING THE CONVERSION
[Same as the offering prospectus]
TRANSFER AGENT
The transfer agent and registrar for Oneida Financial-New's common stock is Registrar and
Transfer Company, Cranford, New York.
26
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EXPERTS
The consolidated financial statements of Oneida Financial Corp. as of December 31, 2009 and
2008, and for each of the years in the three year period ended December 31, 2009, appearing in this
proxy statement/prospectus and elsewhere in the registration statement have been audited by Crowe
Horwath LLP, independent registered public accountants, as stated in their reports with respect
thereto, and are included herein in reliance given upon the authority of said firm as experts in
accounting and auditing.
RP Financial, LC. has consented to the publication herein of the summary of its report to
Oneida Financial-New setting forth its opinion as to the estimated pro forma market value of the
shares of common stock upon completion of the conversion and offering and its letters with respect
to subscription rights and the liquidation accounts.
LEGAL AND TAX MATTERS
Luse Gorman Pomerenk & Schick, P.C., Washington, D.C., counsel to Oneida Financial-New, Oneida
Financial, MHC, Oneida Financial Corp. and Oneida Savings Bank, will issue to Oneida Financial-New
its opinion regarding the legality of the common stock and the federal income tax consequences of
the conversion. Crowe Horwath LLP has provided an opinion to us regarding the New York income tax
consequences of the conversion. Certain legal matters will be passed upon for Stifel, Nicolaus &
Company, Incorporated by Kilpatrick Stockton LLP, Washington, D.C.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
Oneida Financial-New has filed with the Securities and Exchange Commission a registration
statement under the Securities Act of 1933 with respect to the shares of common stock offered
hereby. As permitted by the rules and regulations of the Securities and Exchange Commission, this
proxy statement/prospectus does not contain all the information set forth in the registration
statement. Such information, including the appraisal report which is an exhibit to the
registration statement, can be examined without charge at the public reference facilities of the
Securities and Exchange Commission located at 100 F Street, N.E., Washington, D.C. 20549, and
copies of such material can be obtained from the Securities and Exchange Commission at prescribed
rates. The Securities and Exchange Commission telephone number is 1-800-SEC-0330. In addition,
the Securities and Exchange Commission maintains a web site (
http://www.sec.gov
) that
contains reports, proxy and information statements and other information regarding registrants that
file electronically with the Securities and Exchange Commission, including Oneida Financial-New.
The statements contained in this proxy statement/prospectus as to the contents of any contract or
other document filed as an exhibit to the registration statement are, of necessity, brief
descriptions of the material terms of, and should be read in conjunction with, such contract or
document.
Oneida Financial, MHC has filed with the Office of Thrift Supervision an Application on Form
AC with respect to the conversion. This proxy statement/prospectus omits certain information
contained in the application. The application may be examined at the principal office of the Office
of Thrift Supervision, 1700 G Street, N.W., Washington, D.C. 20552, and at the Northeast Regional
Office of the Office of Thrift Supervision, Harborside Financial Center Plaza Five, Suite 1600,
Jersey City, New York 07311. Our plan of conversion is available, upon request, at each of our
banking offices.
In connection with the offering, Oneida Financial-New will register its common stock under
Section
12(b)
of the Securities Exchange Act of 1934 and, upon such registration, Oneida
Financial-New and the holders of its common stock will become subject to the proxy solicitation
rules, reporting requirements and restrictions on common stock purchases and sales by directors,
officers
27
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and greater than 10% stockholders, the annual and periodic reporting and certain other
requirements of the Securities Exchange Act of 1934. Under the plan of conversion, Oneida
Financial-New has undertaken that it will not terminate such registration for a period of at least
three years following the offering.
OTHER MATTERS
As of the date of this document, the board of directors is not aware of any business to come
before the special meeting other than the matters described above in the proxy
statement/prospectus. However, if any matters should properly come before the special meeting, it
is intended that the holders of the proxies will act in accordance with their best judgment.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS OF
ONEIDA FINANCIAL CORP.
[Same as the offering prospectus]
[Financial Statements that are the same as the offering prospectus to appear here]
28
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PART II: INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution
Amount (1)
*
Registrant's Legal Fees and Expenses
$
550,000
*
Registrant's Accounting Fees and Expenses
160,000
*
Conversion Agent and Data Processing Fees
25,000
*
Marketing Agent Fees (1)
1,511,600
*
Marketing Agent Expenses (Including Legal Fees and Expenses)
160,000
*
Appraisal Fees and Expenses
70,000
*
Printing, Postage, Mailing and EDGAR Fees
220,000
*
Filing Fees (OTS, Nasdaq, FINRA and SEC)
33,000
*
Transfer Fees and Expenses
12,500
*
Business Plan Fees and Expenses
45,000
*
Other
105,000
*
Total
$
2,892,100
*
Estimated
(1)
Oneida Financial Corp. has retained Stifel, Nicolaus & Company, Incorporated to assist in the
sale of common stock on a best efforts basis in the offerings. Fees are estimated at the
adjusted maximum of the offering range assuming 40% of the shares are sold in the subscription
and community offering and 60% of the shares are sold in the syndicated community offering.
Item 14. Indemnification of Directors and Officers
Articles 10 and 11 of the Articles of Incorporation of Oneida Financial Corp. (the
"Corporation") set forth circumstances under which directors, officers, employees and agents of the
Corporation may be insured or indemnified against liability which they incur in their capacities as
such:
ARTICLE 10. Indemnification, etc. of Directors and Officers.
A. Indemnification.
The Corporation shall indemnify (1) its current and former directors and
officers, whether serving the Corporation or at its request any other entity, to the fullest extent
required or permitted by the MGCL now or hereafter in force, including the advancement of expenses
under the procedures and to the fullest extent permitted by law, and (2) other employees and agents
to such extent as shall be authorized by the Board of Directors and permitted by law; provided,
however, that, except as provided in Section B of this Article 10 with respect to proceedings to
enforce rights to indemnification, the Corporation shall indemnify any such indemnitee in
connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding
(or part thereof) was authorized by the Board of Directors of the Corporation.
B. Procedure.
If a claim under Section A of this Article 10 is not paid in full by the
Corporation within sixty (60) days after a written claim has been received by the Corporation,
except in the case of a claim for an advancement of expenses, in which case the applicable period
shall be twenty (20) days, the indemnitee may at any time thereafter bring suit against the
Corporation to recover the unpaid amount of the claim. If successful in whole or in part in any
such suit, or in a suit brought by the Corporation to recover an advancement of expenses pursuant
to the terms of an undertaking, the indemnitee shall also be entitled to be reimbursed the expense
of prosecuting or defending such suit. It shall be a defense to any action for advancement of
expenses that the Corporation has not received both (i) an undertaking as required by law to repay
such advances in the event it shall ultimately be determined that the standard of conduct has not
been met and (ii) a written affirmation by the indemnitee of his good faith belief that the
standard of conduct necessary for indemnification by the Corporation has been met. In (i) any suit
brought by the indemnitee to enforce a right to indemnification hereunder (but not in a suit
brought by the indemnitee to enforce a right to an advancement of expenses) it shall be a defense
that, and (ii) any suit by the Corporation to recover an advancement of expenses pursuant to the
terms of an undertaking the Corporation shall be entitled to recover such expenses upon a final
adjudication that, the indemnitee has not met the applicable standard
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for indemnification set forth in the MGCL. Neither the failure of the Corporation (including
its Board of Directors, independent legal counsel, or its stockholders) to have made a
determination prior to the commencement of such suit that indemnification of the indemnitee is
proper in the circumstances because the indemnitee has met the applicable standard of conduct set
forth in the MGCL, nor an actual determination by the Corporation (including its Board of
Directors, independent legal counsel, or its stockholders) that the indemnitee has not met such
applicable standard of conduct, shall create a presumption that the indemnitee has not met the
applicable standard of conduct or, in the case of such a suit brought by the indemnitee, be a
defense to such suit. In any suit brought by the indemnitee to enforce a right to indemnification
or to an advancement of expenses hereunder, or by the Corporation to recover an advancement of
expenses pursuant to the terms of an undertaking, the burden of proving that the indemnitee is not
entitled to be indemnified, or to such advancement of expenses, under this Article 10 or otherwise
shall be on the Corporation.
C. Non-Exclusivity.
The rights to indemnification and to the advancement of expenses
conferred in this Article 10 shall not be exclusive of any other right that any Person may have or
hereafter acquire under any statute, these Articles, the Corporation's Bylaws, any agreement, any
vote of stockholders or the Board of Directors, or otherwise.
D. Insurance.
The Corporation may maintain insurance, at its expense, to insure itself and
any director, officer, employee or agent of the Corporation or another corporation, partnership,
joint venture, trust or other enterprise against any expense, liability or loss, whether or not the
Corporation would have the power to indemnify such Person against such expense, liability or loss
under the MGCL.
E. Miscellaneous.
The Corporation shall not be liable for any payment under this Article 10
in connection with a claim made by any indemnitee to the extent such indemnitee has otherwise
actually received payment under any insurance policy, agreement, or otherwise, of the amounts
otherwise indemnifiable hereunder. The rights to indemnification and to the advancement of
expenses conferred in Sections A and B of this Article 10 shall be contract rights and such rights
shall continue as to an indemnitee who has ceased to be a director or officer and shall inure to
the benefit of the indemnitee's heirs, executors and administrators.
F. Limitations Imposed by Federal Law
. Notwithstanding any other provision set forth in this
Article 10, in no event shall any payments made by the Corporation pursuant to this Article 10
exceed the amount permissible under applicable federal law.
Any repeal or modification of this Article 10 shall not in any way diminish any rights to
indemnification or advancement of expenses of such director or officer or the obligations of the
Corporation arising hereunder with respect to events occurring, or claims made, while this
Article 10 is in force.
ARTICLE 11. Limitation of Liability.
An officer or director of the Corporation, as such,
shall not be liable to the Corporation or its stockholders for money damages, except (A) to the
extent that it is proved that the Person actually received an improper benefit or profit in money,
property or services, for the amount of the benefit or profit in money, property or services
actually received; or (B) to the extent that a judgment or other final adjudication adverse to the
Person is entered in a proceeding based on a finding in the proceeding that the Person's action, or
failure to act, was the result of active and deliberate dishonesty and was material to the cause of
action adjudicated in the proceeding; or (C) to the extent otherwise provided by the MGCL. If the
MGCL is amended to further eliminate or limit the personal liability of officers and directors,
then the liability of officers and directors of the Corporation shall be eliminated or limited to
the fullest extent permitted by the MGCL, as so amended.
Any repeal or modification of the foregoing paragraph by the stockholders of the Corporation
shall not adversely affect any right or protection of a director or officer of the Corporation
existing at the time of such repeal or modification.
Item 15. Recent Sales of Unregistered Securities
Not Applicable.
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Item 16. Exhibits and Financial Statement Schedules:
The exhibits and financial statement schedules filed as part of this registration statement
are as follows:
(a) List of Exhibits
1.1
Engagement Letter between Oneida Financial Corp., Oneida Financial, MHC and Stifel, Nicolaus
& Company, Incorporated
1.2
Form of Agency Agreement between Oneida Financial Corp., a Federal corporation, Oneida
Financial, MHC, Oneida Savings Bank, Oneida Financial Corp., a Maryland corporation, and
Stifel, Nicolaus & Company, Incorporated
2
Plan of Conversion and Reorganization
3.1
Articles of Incorporation of Oneida Financial Corp.
3.2
Bylaws of Oneida Financial Corp.
4
Form of Common Stock Certificate of Oneida Financial Corp.
5
Opinion of Luse Gorman Pomerenk & Schick, P.C. regarding legality of securities being registered
8
Form of Federal Tax Opinion of Luse Gorman Pomerenk & Schick, P.C.
10.1
Employment Agreement by and among Oneida Financial Corp., Oneida Savings Bank and Michael R.
Kallet
(1)
10.2
Employment Agreement by and among Oneida Financial Corp., Oneida Savings Bank and Eric E.
Stickels
(2)
10.3
Employment Agreement by and among Oneida Financial Corp., Oneida Savings Bank and Thomas H.
Dixon
(3)
10.4
Employment Agreement between Bailey & Haskell Associates, Inc. and John E. Haskell
10.5
Amendment to Employment Agreement between Bailey & Haskell Associates, Inc. and John E.Haskell
10.6
Employment Agreement between Benefit Consulting Group, Inc. and John F. Catanzarita
10.7
Oneida Financial Corp. Performance Based Compensation Plan
10.8
Oneida Financial Corp. 2006 Recognition and Retention Plan
(4)
10.9
Oneida Financial Corp. 2000 Stock Option Plan
(5)
10.10
Amendment to the Oneida Financial Corp. 2000 Stock Option
(6)
10.11
Oneida Financial Corp. 2000 Recognition and Retention Plan
(7)
21
Subsidiaries of Registrant
23.1
Consent of Luse Gorman Pomerenk & Schick, P.C. (contained in Opinions included as Exhibits 5 and 8)
23.2
Consent of Crowe Horwath LLP
23.3
Consent of RP Financial, LC.
24
Power of Attorney (set forth on signature page)
99.1
Appraisal Agreement between Oneida Savings Bank and RP Financial, LC.
99.2
Letter of RP Financial, LC. with respect to Subscription Rights
99.3
Appraisal Report of RP Financial, LC.**
99.4
Marketing Materials*
99.5
Stock Order and Certification Form*
99.6
Business Plan Agreement with FinPro, Inc.
99.7
Engagement Letter between Oneida Financial Corp., Oneida Financial, MHC, Oneida Savings Bank
and Stifel, Nicolaus & Company, Incorporated regarding records processing services
99.8
Letter of RP Financial, LC. with respect to Liquidation Account
*
To be filed supplementally
**
Supporting financial schedules filed in paper format only pursuant to Rule 202 of Regulation
S-T. Available for inspection during business hours at the principal offices of the SEC in
Washington, D.C.
(1)
Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by Oneida Financial Corp. (File No. 000-25101)  with the
Securities and Exchange Commission on June 10, 2009.
(2)
Incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by Oneida Financial Corp. (File No. 000-25101) with the
Securities and Exchange Commission on June 10, 2009.
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(3)
Incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed by Oneida Financial Corp. (File No. 000-25101) with the
Securities and Exchange Commission on June 10, 2009.
(4)
Incorporated by reference to Appendix A of the Proxy Statement filed by Oneida Financial Corp. (File No. 000-25101) with the Securities and
Exchange Commission on March 30, 2006.
(5)
Incorporated by reference to Appendix A of the Proxy Statement filed by Oneida Financial Corp. (File No. 000-25101) with the Securities and
Exchange Commission on March 23, 2000.
(6)
Incorporated by reference to Exhibit 10.2 to the Annual Report on Form 10-K filed by Oneida Financial Corp. (File No. 000-25101) with the
Securities and Exchange Commission on March 31, 2006.
(7)
Incorporated by reference to Appendix B of the Proxy Statement filed by Oneida Financial Corp. (File No. 000-25101) with the Securities and
Exchange Commission on March 23, 2000.
(b) Financial Statement Schedules
No financial statement schedules are filed because the required information is not applicable
or is included in the consolidated financial statements or related notes.
Item 17. Undertakings
The undersigned Registrant hereby undertakes:
(1) To file, during any period in which it offers or sales are being made, a post-effective
amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective
date of the registration statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the
information set forth in the registration statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered) and any deviation from
the low or high end of the estimated maximum offering range may be reflected in the form
of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate,
the changes in volume and price represent no more than a 20 percent change in the
maximum aggregate offering price set forth in the "Calculation of Registration Fee"
table in the effective registration statement;
(iii) To include any material information with respect to the plan of distribution
not previously disclosed in the registration statement or any material change to such
information in the registration statement.
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
(4) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Act, and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with
the securities being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a
II-4
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court of appropriate jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of such issue.
(5) That, for the purpose of determining liability of the registrant under the Securities Act
of 1933 to any purchaser in the initial distribution of the securities:
The undersigned registrant undertakes that in a primary offering of securities of the
undersigned registrant pursuant to this registration statement, regardless of the underwriting
method used to sell the securities to the purchaser, if the securities are offered or sold to such
purchaser by means of any of the following communications, the undersigned registrant will be a
seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(i) Any preliminary prospectus or prospectus of the undersigned registrant relating
to the offering required to be filed pursuant to Rule 424 (§230.424 of this chapter);
(ii) Any free writing prospectus relating to the offering prepared by or on behalf
of the undersigned registrant or used or referred to by the undersigned registrant;
(iii) The portion of any other free writing prospectus relating to the offering
containing material information about the undersigned registrant or its securities
provided by or on behalf of the undersigned registrant; and
(iv) Any other communication that is an offer in the offering made by the
undersigned registrant to the purchaser.
(6) That, for purposes of determining any liability under the Securities Act of 1933, the
information omitted from the form of prospectus filed as part of this registration statement in
reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to
Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this
registration statement as of the time it was declared effective.
(7) That, for the purpose of determining any liability under the Securities Act of 1933, each
post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering thereof.
(8) The undersigned registrant hereby undertakes to provide to the underwriter at the closing
specified in the underwriting agreement, certificates in such denominations and registered in such
names as required by the underwriter to permit prompt delivery to each purchaser.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused
this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized in the City of Oneida, State of New York on March 12, 2010.
ONEIDA FINANCIAL CORP.
By:
/s/ Michael R. Kallet
Michael R. Kallet
President and Chief Executive Officer
(Duly Authorized Representative)
POWER OF ATTORNEY
We, the undersigned directors and officers of Oneida Financial Corp. (the "Company") hereby
severally constitute and appoint Michael R. Kallet as our true and lawful attorney and agent, to do
any and all things in our names in the capacities indicated below which said Michael R. Kallet may
deem necessary or advisable to enable the Company to comply with the Securities Act of 1933, and
any rules, regulations and requirements of the Securities and Exchange Commission, in connection
with the registration statement on Form S-1 relating to the offering of the Company's common stock,
including specifically, but not limited to, power and authority to sign for us in our names in the
capacities indicated below the registration statement and any and all amendments (including
post-effective amendments) thereto; and we hereby approve, ratify and confirm all that said Michael
R. Kallet shall do or cause to be done by virtue thereof.
Pursuant to the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates indicated.
Signatures
Title
Date
/s/ Michael R. Kallet
Michael R. Kallet
President, Chief
Executive Officer
and Director
(Principal
Executive Officer)
March 12, 2010
/s/ Eric E. Stickels
Eric E. Stickels
Executive Vice
President, Chief
Financial Officer
and Secretary
(Principal
Financial and
Accounting Officer)
March 12, 2010
/s/ Patricia D. Caprio
Director
March 12, 2010
Patricia D. Caprio
/s/ Edward J. Clarke
Director
March 12, 2010
Edward J. Clarke
/s/ John E. Haskell
Director
March 12, 2010
John E. Haskell
/s/ Rodney D. Kent
Director
March 12, 2010
Rodney D. Kent
/s/ Richard B. Myers
Director
March 12, 2010
Richard B. Myers
/s/ Nancy E. Ryan
Director
March 12, 2010
Nancy E. Ryan
Table of Contents
Signatures
Title
Date
/s/ Ralph L. Stevens, M.D.
Director
March 12, 2010
Ralph L. Stevens, M.D.
/s/ Gerald N. Volk
Director
March 12, 2010
Gerald N. Volk
/s/ Frank O. White, Jr.
Director
March 12, 2010
Frank O. White, Jr.
/s/ John A. Wight, M.D.
Director
March 12, 2010
John A. Wight, M.D.
Table of Contents
As filed with the Securities and Exchange Commission on March 12, 2010
Registration No. 333-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
EXHIBITS
TO
REGISTRATION STATEMENT
ON
FORM S-1
Oneida Financial Corp.
Oneida, New York
Table of Contents
EXHIBIT INDEX
1.1
Engagement Letter between Oneida Financial Corp., Oneida Financial, MHC and Stifel, Nicolaus
& Company, Incorporated
1.2
Form of Agency Agreement between Oneida Financial Corp., a Federal corporation, Oneida
Financial, MHC, Oneida Savings Bank, Oneida Financial Corp., a Maryland corporation, and
Stifel, Nicolaus & Company, Incorporated
2
Plan of Conversion and Reorganization
3.1
Articles of Incorporation of Oneida Financial Corp.
3.2
Bylaws of Oneida Financial Corp.
4
Form of Common Stock Certificate of Oneida Financial Corp.
5
Opinion of Luse Gorman Pomerenk & Schick, P.C. regarding legality of securities being registered
8
Form of Federal Tax Opinion of Luse Gorman Pomerenk & Schick, P.C.
10.1
Employment Agreement by and among Oneida Financial Corp., Oneida Savings Bank and Michael R.
Kallet
(1)
10.2
Employment Agreement by and among Oneida Financial Corp., Oneida Savings Bank and Eric E.
Stickels
(2)
10.3
Employment Agreement by and among Oneida Financial Corp., Oneida Savings Bank and Thomas H.
Dixon
(3)
10.4
Employment Agreement between Bailey & Haskell Associates, Inc. and John E. Haskell
10.5
Amendment to Employment Agreement between Bailey & Haskell Associates, Inc. and John E.
Haskell
10.6
Employment Agreement between Benefit Consulting Group, Inc. and John F. Catanzarita
10.7
Oneida Financial Corp. Performance Based Compensation Plan
10.8
Oneida Financial Corp. 2006 Recognition and Retention Plan
(4)
10.9
Oneida Financial Corp. 2000 Stock Option Plan
(5)
10.10
Amendment to Oneida Financial Corp. 2000 Stock Option Plan
(6)
10.11
Oneida Financial Corp. 2000 Recognition and Retention Plan
(7)
21
Subsidiaries of Registrant
23.1
Consent of Luse Gorman Pomerenk & Schick, P.C. (contained in Opinions included as Exhibits 5 and 8)
23.2
Consent of Crowe Horwath LLP
23.3
Consent of RP Financial, LC.
24
Power of Attorney (set forth on signature page)
99.1
Appraisal Agreement between Oneida Savings Bank and RP Financial, LC.
99.2
Letter of RP Financial, LC. with respect to Subscription Rights
99.3
Appraisal Report of RP Financial, LC.**
99.4
Marketing Materials*
99.5
Stock Order and Certification Form*
99.6
Business Plan Agreement with FinPro, Inc.
99.7
Engagement Letter between Oneida Financial Corp., Oneida Financial, MHC, Oneida Savings Bank
and Stifel, Nicolaus & Company, Incorporated regarding records processing services
99.8
Letter of RP Financial, LC. with respect to Liquidation Account
*
To be filed supplementally
**
Supporting financial schedules filed in paper format only pursuant to Rule 202 of Regulation
S-T. Available for inspection during business hours at the principal offices of the SEC in
Washington, D.C.
(1)
Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by Oneida Financial Corp. (File No. 000-25101) with the
Securities and Exchange Commission on June 10, 2009.
(2)
Incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by Oneida Financial Corp. (File No. 000-25101) with the
Securities and Exchange Commission on June 10, 2009.
(3)
Incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed by Oneida Financial Corp. (File No. 000-25101) with the
Securities and Exchange Commission on June 10, 2009.
(4)
Incorporated by reference to Appendix A of the Proxy Statement filed by Oneida Financial Corp. (File No. 000-25101) with the Securities and
Exchange Commission on March 30, 2006.
(5)
Incorporated by reference to Appendix A of the Proxy Statement filed by Oneida Financial Corp. (File No. 000-25101) with the Securities and
Exchange Commission on March 23, 2000.
(6)
Incorporated by reference to Exhibit 10.2 to the Annual Report on Form 10-K filed by Oneida Financial Corp. (File No. 000-25101) with the
Securities and Exchange Commission on March 31, 2006.
Table of Contents
(7)
Incorporated by reference to Appendix B of the Proxy Statement filed by Oneida Financial Corp. (File No. 000-25101) with the Securities and
Exchange Commission on March 23, 2000.