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

Exhibit 99.1

For More Information Contact:

John H. Howland

President & Chief Operating Officer

Stephen V. Ciancarelli

Senior Vice President & Chief Financial Officer

(203) 782-1100

Southern Connecticut Bancorp, Inc. Reports Results of Operations for

the Three Months Ended March 31, 2009

NEW HAVEN, Conn. (May 5, 2009) – Southern Connecticut Bancorp, Inc. (AMEX:SSE) (the “Company”), the holding company for The Bank of Southern Connecticut, announced results of operations for the three months ended March 31, 2009.  The Company sustained a loss of ($2,307,676) or ($0.86) per share versus income of $336,390 or $0.11 per share for the three months ended March 31, 2008.

The loss sustained by the Company is largely attributable to a provision for loan losses of $2,146,130 for the three months ended March 31, 2009 related to a group of approximately 10 loans that have been severely impacted by prevailing economic conditions.

“Softness in the economy contributed to the poor financial performance of Southern Connecticut Bancorp, Inc. in the first quarter,” said John H. Howland, President and Chief Operating Officer of the Company.  “Deteriorating economic conditions manifested themselves in the Company’s increase in non-accrual loans, and also in reduced balances of deposit accounts from a number of our customers whose businesses have been affected by reduced economic activity generally.  It is important to note that although the Company today is announcing a substantial provision, our capital position remains healthy and we continue to maintain capital ratios in excess of those necessary to be well capitalized pursuant to federal guidelines.”

As of March 31, 2009, the Company had $16,218,084 in Shareholders’ Equity.  The following table summarizes the Company and the Bank’s capital ratios as well as regulatory requirements as of March 31, 2009:

			For Capital
(dollars in thousands)	Actual		Adequacy Purposes
	Amount	Ratio	Amount	Ratio
The Company:
Total Capital to Risk Weighted Assets	$      17,357	16.04%	$    8,658	8.00%
Tier 1 Capital to Risk Weighted Assets	15,980	14.77%	4,329	4.00%
Tier 1 (Leverage) Capital to Average Assets	15,980	14.01%	4,561	4.00%

			For Capital
	Actual		Adequacy Purposes
	Amount	Ratio	Amount	Ratio
The Bank:
Total Capital to Risk Weighted Assets	$      15,908	14.93%	$    8,525	8.00%
Tier 1 Capital to Risk Weighted Assets	14,551	13.65%	4,263	4.00%
Tier 1 (Leverage) Capital to Average Assets	14,551	12.92%	4,503	4.00%

With respect to the large provision for loan losses, management determined that taking the reserve at this time is the conservative, prudent course of action with respect to the group of individually identified loans.  The Company also increased its general reserve levels on performing loans based upon prevailing nationwide economic conditions and forecasts.  As of March 31, 2009, the Company’s Allowance for Loan Losses was $3,329,681 or 3.70% of Gross loans versus $1,183,369 and 1.31% as of December 31, 2008.  Non-accrual loans increased to $3,014,527 or 3.35% of Gross loans versus $881,948 and 0.98% as of December 31, 2008. The Allowance for Loan Losses at March 31, 2009 provided 1.10 times coverage of non-accrual loans compared to 1.34 times at December 31, 2008.

“Last year Southern Connecticut Bancorp embarked on an ambitious initiative to reduce expenses,” said Stephen V. Ciancarelli, Chief Financial Officer.  “In the first quarter of 2009, excluding unusual items, the Company reduced its core operating expenses by $264,996 or 16.3% compared to the first quarter of 2008.”

The decrease in core operating expenses in the first quarter of 2009 in comparison to the same period in 2008 is primarily due to lower salaries and benefits resulting from reductions in staff at the Bank of over 10%  (through elimination of positions and the sale of the Bank’s branch office located in New London, Connecticut) and the elimination of certain employee benefits and bonus accruals for 2009, as well as negotiated expense reductions realized for certain insurance contracts and telecommunication services.

The Company’s wholly owned subsidiary, SCB Capital, Inc., reported a loss of $44,955 for the three months ended March 31, 2009.  SCB Capital, Inc. does business as Evergreen Financial Services (a mortgage broker) and commenced operations in August 2008.

About Southern Connecticut Bancorp, Inc.

Southern Connecticut Bancorp, Inc. is a commercial bank holding company dedicated to serving the banking needs of businesses located in the greater New Haven area.  Southern Connecticut Bancorp owns 100% of The Bank of Southern Connecticut headquartered in New Haven Connecticut.  The Bank of Southern Connecticut is a provider of commercial banking services to a client base of small to midsized companies with annual sales typically ranging from $1,000,000 to $30,000,000.  The Bank’s services include a wide range of deposit, loan and other basic commercial banking products along with a variety of consumer banking products.  The Bank currently operates four branches, two in New Haven, Connecticut, one in Branford, Connecticut and one in North Haven, Connecticut. Southern Connecticut Bancorp, Inc. also operates a mortgage brokerage business through Evergreen Financial Services, a division of SCB Capital, Inc., a wholly owned subsidiary of the Company.

Certain statements contained in this release and in other written materials and statements we may issue, including without limitation statements containing the word “believes”, “anticipates”, “intends”, “expects”, “estimates”, “could”, “would”, “will”, or words of similar import, constitute forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements involve risks, uncertainties and other factors that may cause our actual future results, performance or achievements to be materially different from any future results expressed or implied by such forward-looking statements. Such factors include, among others, a limited operating history and volatility of earnings, our dependence on our executive management and Board of Directors, our business concentration in small to midsized businesses in the New Haven, Connecticut area, as well as changes in our business, competitive market and regulatory conditions and strategies. Additional information concerning factors that could impact forward-looking statements can be found in the company’s periodic public filings with the Securities and Exchange Commission and in the section captioned “Risk Factors” in our prospectus filed on June 17, 2004.  Given these uncertainties, readers are cautioned not to place any undue reliance on such forward-looking statements. We disclaim any intent or obligation to update these forward-looking statements to reflect facts, assumptions, circumstances or events that occur after the date on which such forward-looking statements were made.

Financial Highlights
	March 31,			December 31,
BALANCE SHEET DATA	2009			2008
Loans Receivable (net of ALLL)	$	86,614,112		$	89,241,432
Money Market / CD's		14,215,476			10,280,062
Investment Securities		3,619,032			5,130,005
Deposits:
Checking - Non Interest Bearing		20,930,787			28,214,381
Checking - Interest Bearing		191,307			304,068
NOW		3,830,927			5,381,422
Money Market		27,525,334			26,578,024
Savings		1,646,162			1,492,378
Time Deposits		40,347,239			31,999,751
Total Deposits		94,471,756			93,970,024
Total Assets		113,365,273			114,916,562
Total Shareholders' Equity		16,218,084			18,540,954
Book Value per Share	$	6.03		$	6.90
Tangible Book Value per Share		5.94			6.81
Tier 1 Leverage Capital Ratio		14.01	%		15.64	%
ALLL / (ALLL+Net Loans+Loans Held for Sale)		3.70	%		1.31	%
Non-Accruing Assets	$	3,014,527		$	881,948
ALLL / Non-Accruing Loans	1.10 times			1.34 times
Note:  ALLL = Allowance for Loan and Lease Losses
	Three Months			Three Months
	Ended			Ended
STATEMENT OF OPERATIONS DATA	March 31, 2009			March 31, 2008
Interest Income	$	1,564,768		$	1,993,519
Interest Expense		494,021			690,667
Net Interest Income		1,070,747			1,302,852
Provision for Loan Losses		2,146,130			9,760
Net Interest (Loss) Income after Provision for Loan Losses		(1,075,383	)		1,293,092
Noninterest Income		163,425			983,109
Noninterest Expense		1,395,718			1,939,811
Net (Loss) Income	$	(2,307,676	)	$	336,390
Net Interest Margin		4.08	%		4.64	%
PER SHARE DATA
Basic (Loss) Income per Share	$	(0.86	)	$	0.11
Diluted (Loss) Income per Share	$	(0.86	)	$	0.11

SOUTHERN CONNECTICUT BANCORP, INC.
Consolidated Balance Sheets
March 31, 2009 and December 31, 2008 (unaudited)
	March 31,			December 31,
	2009			2008
Assets
Cash and due from banks	$	3,951,899		$	5,267,439
Short-term and other investments		12,664,896			8,637,450
Cash and cash equivalents		16,616,795			13,904,889
Interest bearing certificates of deposit		1,550,580			1,642,612
Available for sale securities		3,619,032			5,130,005
Federal Home Loan Bank Stock		66,100			66,100
Loans receivable (net of allowance for loan losses
$3,329,681 in 2009 and $1,183,369 in 2008)		86,614,112			89,241,432
Accrued interest receivable		453,924			411,729
Premises and equipment, net		2,682,047			2,754,153
Other assets		1,762,683			1,765,642
Total assets	$	113,365,273		$	114,916,562
Liabilities and Stockholders’ Equity
Liabilities
Deposits
Noninterest bearing deposits	$	20,930,787		$	28,214,381
Interest bearing deposits		73,540,969			65,755,643
Total deposits		94,471,756			93,970,024
Repurchase agreements		414,732			214,391
Accrued expenses and other liabilities		1,179,575			1,010,255
Capital lease obligations		1,081,126			1,180,938
Total liabilities		97,147,189			96,375,608
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;
shares issued and outstanding: 2009 2,688,152; 2008 2,688,152		26,882			26,882
Additional paid-in capital		22,523,848			22,521,164
Accumulated deficit		(4,035,302	)		(4,169,051	)
Current (Loss) Income		(2,307,676	)		133,749
Accumulated other comprehensive gain – net unrealized
gain on available for sale securities		10,332			28,210
Total stockholders' equity		16,218,084			18,540,954
Total liabilities and stockholders' equity	$	113,365,273		$	114,916,562

SOUTHERN CONNECTICUT BANCORP, INC.

Consolidated Statement of Operations

For the Three Months Ended March 31, 2009  and 2008 (unaudited)

	Three Months Ended
	March 31,
	2009			2008
Interest Income
Interest and fees on loans	$	1,457,690		$	1,754,490
Interest on securities		59,394			39,367
Interest on federal funds sold and short-term investments		47,684			199,662
Total interest income		1,564,768			1,993,519
Interest Expense
Interest on deposits		448,372			644,572
Interest on capital lease obligations		43,985			44,036
Interest on repurchase agreements		1,664			2,059
Total interest expense		494,021			690,667
Net interest income		1,070,747			1,302,852
Provision for Loan Losses		2,146,130			9,760
Net interest (loss) income after provision for loan losses		(1,075,383	)		1,293,092
Noninterest Income:
Service charges and fees		144,695			175,738
Gains from sale of branch		-			777,813
Other noninterest income		18,730			29,558
Total noninterest income		163,425			983,109
Noninterest Expense
Salaries and benefits		775,488			1,271,826
Occupancy and equipment		182,378			191,293
Professional services		135,886			110,944
Data processing and other outside services		101,055			106,124
Advertising and promotional expense		10,651			13,262
Forms, printing and supplies		(1,300	)		17,124
FDIC Insurance		46,323			29,989
Other operating expenses		145,237			199,249
Total noninterest expenses		1,395,718			1,939,811
Net (loss) income	$	(2,307,676	)	$	336,390
Basic (Loss) Income per Share	$	(0.86	)	$	0.11
Diluted (Loss)  Income per Share	$	(0.86	)	$	0.11
Dividends per Share	$	-		$	-