Eastern Savings Bank, fsb.

Assets
December 31	December 31, 2011	December 31, 2010
Cash	$215,837	$194,892
Liquidity and Investments	$91,825,228	$118,560,227
Mortgage Loans	$380,530,391	$487,000,157
Investments in Real Estate	$117,123,948	$131,093,808
Federal Home Loan Bank Stock	$2,700,100	$3,195,200
Property and Equipment	$2,013,684	$2,286,113
Accrued Interest Receivable	$2,487,811	$2,773,903
Prepaid Expenses and Other Assets	$1,141,010	$1,461,710
Total Assets	$598,038,009	$746,566,010

Liabilities and Stockholders' Equity
December 31	December 31, 2011	December 31, 2010
Deposits	$522,266,694	$655,507,272
Federal Home Loan Bank Advances	$30,000,000	$30,000,000
Mortgage Escrow Accounts	$1,607,143	$1,778,313
Accrued Interest Payable	$1,048,255	$2,311,148
Accrued Expenses and Other Liabilities	$4,128,922	$4,323,116
Total Liabilities	$559,051,014	$693,919,849
Total Stockholders' Equity (1)	$38,986,995	$52,646,161
Total Liabilities and Stockholders' Equity	$598,038,009	$746,566,010

(1) The table below reconciles stockholders' equity, as presented in accordance with generally accepted accounting principles, with core and total capital, and as a percentage of adjusted total assets and risk-weighted assets, respectively. The Federal Deposit Insurance Corporation (FDIC), an agency of the U.S. Government, insures all depositors' savings up to $250,000 in accordance with the rules and regulations of the FDIC.
December 31 , 2011	Core Capital		Total Capital
Stockholders' Equity	$38,986,995	6.52%	$38,986,995	9.34%
General Valuation Allowance	-----------	0.00%	$5,231,795	1.25%
Fully Capitalized Items	-----------	0.00%	($1,565,871)	(0.38%)
Excluded Portion of Investments in Subsidiaries	-----------	0.00%	-----------	0.00%
Total	$38,986,995	6.52%	$42,652,919	10.22%
Required Minimum	($23,921,520)	(4.00%)	($33,377,339)	(8.00%)
Excess Capital	$15,065,475	2.52%	$9,275,580	2.22%
Regulatory Capital is the basis by which the Office of the Comptroller of the Currency determines whether an institution is solvent and whether an institution is meeting its regulatory capital requirements. The Bank's annual financial statements are audited by the independent auditing firm of KPMG LLP, Certified Public Accountants.