Southern Connecticut Bancorp 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

SOUTHERN CONNECTICUT BANCORP, INC.
Financial Highlights
	June 30			December 31			June 30
BALANCE SHEET DATA	2008			2007			2007
Loans Receivable (net of ALLL)	$	80,428,158		$	85,995,128		$	84,631,413
Loans Held for Sale, Fair Value		-			354,606			60,349
Money Market / CD's		8,170,830			8,355,686			7,566,940
Investment Securities		6,576,038			5,265,679			7,086,233
Deposits:
Checking - Non Interest Bearing		24,213,159			27,798,388			25,896,200
Checking - Interest Bearing		76,707			1,286,356			5,832,521
NOW		4,835,421			4,506,137			1,727,311
Money Market		30,807,120			40,721,374			41,273,690
Savings		1,428,818			1,654,000			1,884,713
Time Deposits		28,118,866			31,456,137			30,407,166
Total Deposits		89,480,091			107,422,392			107,021,601
Total Assets		111,692,383			130,564,261			130,028,620
Total Shareholders' Equity		19,865,450			20,084,483			20,420,596
Book Value per Share	$	6.92		$	6.76		$	6.94
Tier 1 Leverage Capital Ratio		17.89	%		15.08	%		16.20	%
ALLL / (ALLL+Net Loans+Loans Held for Sale)		1.40	%		1.43	%		1.33	%
Note: ALLL = Allowance for Loan and Lease Losses
				Six Months			Six Months
				Ended			Ended
STATEMENT OF OPERATIONS DATA				June 30, 2008			June 30, 2007
Interest Income				$	3,652,573		$	4,372,079
Interest Expense					1,209,665			1,650,298
Net Interest Income					2,442,908			2,721,781
Provision for Loan Losses					(103,743	)		127,244
Net Interest Income after Provision					2,546,651			2,594,537
Noninterest Income					1,260,116			520,679
Noninterest Expense					3,397,096			3,106,310
Net Income				$	409,671		$	8,906
Net Interest Margin					4.54	%		4.86	%
PER SHARE DATA
Basic Income per Share				$	0.14		$	0.00
Diluted Income per Share				$	0.14		$	0.00

SOUTHERN CONNECTICUT BANCORP, INC.
Consolidated Balance Sheets
June 30, 2008 and December 31, 2007 (unaudited)
	2008			2007
Assets
Cash and due from banks	$	3,593,334		$	3,891,258
Federal funds sold		8,140,748			21,100,000
Short-term investments		8,170,830			8,355,686
Cash and cash equivalents		19,904,912			33,346,944
Available for sale securities		6,576,038			5,265,679
Federal Home Loan Bank Stock		66,100			66,100
Loans receivable (net of allowance for loan losses of		80,428,158			85,995,128
$1,144,490 at 6/30/08 and $1,256,965 at 12/31/07)
Loans held for sale		-			354,606
Accrued interest receivable		422,911			533,690
Premises and equipment, net		2,851,296			3,577,720
Other assets		1,442,968			1,424,394
Total assets	$	111,692,383		$	130,564,261
Liabilities and Stockholders’ Equity
Liabilities
Deposits
Noninterest bearing deposits	$	24,213,159		$	27,798,388
Interest bearing deposits		65,266,932			79,624,004
Total deposits		89,480,091			107,422,392
Repurchase agreements		79,528			544,341
Accrued expenses and other liabilities		1,083,756			1,327,002
Capital lease obligations		1,183,558			1,186,043
Total liabilities		91,826,933			110,479,778
Commitments and Contingencies		-			-
Stockholders’ Equity
Preferred stock, no par value; 500,000 shares authorized;
none issued
Common stock, par value $.01; 5,000,000, shares authorized;		28,725			29,697
Additional paid-in capital		23,621,023			24,263,531
Accumulated deficit		(3,759,380	)		(4,169,051	)
Accumulated other comprehensive loss – net unrealized
loss on available for sale securities		(24,918	)		(39,694	)
Total stockholders' equity		19,865,450			20,084,483
Total liabilities and stockholders' equity	$	111,692,383		$	130,564,261

SOUTHERN CONNECTICUT BANCORP, INC.
Consolidated Statement of Operations
For the Three and Six Months Ended June30, 2008 and 2007 (unaudited)
	Three Months Ended						Six Months Ended
	June						June
	2008			2007			2008			2007
Interest Income
Interest and fees on loans	$	1,518,632		$	1,837,813		$	3,273,123		$	3,569,992
Interest on securities		36,922			62,281			76,288			130,309
Interest on federal funds sold and short-term investments		103,500			357,467			303,162			671,778
Total interest income		1,659,054			2,257,561			3,652,573			4,372,079
Interest Expense
Interest on deposits		472,863			814,711			1,117,437			1,557,998
Interest on capital lease obligations		44,044			43,936			88,080			87,804
Interest on repurchase agreements		2,088			2,261			4,148			4,496
Total interest expense		518,995			860,908			1,209,665			1,650,298
Net interest income		1,140,059			1,396,653			2,442,908			2,721,781
Provision for Loan Losses		(113,503	)		27,451			(103,743	)		127,244
Net interest income after
provision for loan losses		1,253,562			1,369,202			2,546,651			2,594,537
Noninterest Income:
Service charges and fees		90,373			142,999			266,111			281,002
Gains and fees from sales and referrals of SBA loans		-			45,286			-			45,286
Gains from sale of branch		46,431			-			824,244			-
Other noninterest income		140,202			91,552			169,761			194,391
Total noninterest income		277,006			279,837			1,260,116			520,679
Noninterest Expense
Salaries and benefits		850,173			920,097			2,121,998			1,825,720
Occupancy and equipment		165,651			215,714			356,947			432,532
Professional services		137,816			173,095			248,759			258,452
Data processing and other outside services		98,278			106,667			204,402			210,578
Advertising and promotional expense		18,595			10,043			31,857			11,849
Forms, printing and supplies		39,910			20,655			57,034			39,165
FDIC Insurance		13,374			61,074			43,363			63,472
Other operating expenses		133,490			164,710			332,736			264,542
Total noninterest expenses		1,457,287			1,672,055			3,397,096			3,106,310
Net income (loss)	$	73,281		$	(23,016	)	$	409,671		$	8,906
Basic income (loss) per share	$	0.03		$	(0.01	)	$	0.14		$	0.00
Diluted income (loss) per share\	$	0.02		$	(0.01	)	$	0.14		$	0.00
Dividends per Share	$	-		$	-		$	-		$	-