The after tax impact of this charge was 3

In the fourth quarter the Company recorded $4.6 million of OTTI on various trustpreferred securities. The after tax impact of this charge was $3.0 million, or$0.18 on a diluted earnings per share basis for the quarter ending December 31,2008. For the year ending December 31, 2008 the aggregate charges amounted to$4.7 million, net of tax, or $0.30 diluted earnings per share. "All in all, 2008 was a very successful year," said Christopher Oddleifson, theCompanys President and Chief Executive Officer. "Our strong loan and depositgrowth confirms that the current challenging economic climate has actually beena time of opportunity for us The successful integration of Slades FerryBancorp. early in the year was a significant accomplishment and our franchisewill continue to grow with the upcoming Benjamin Franklin Bancorp, Inc.acquisition, which we expect to close in the near future.

While our fourthquarter earnings were restrained by security impairments and higher creditcosts, we have a solid balance sheet and remain in a strong position to continueto expand our franchise and achieve long term growth in a disciplined manner." Total deposits were $2.6 billion at December 31, 2008, a 27.3 increase whencompared to $2.0 billion in total deposits at December 31, 2007. Of theyear-to-date deposit increase, $410.8 million is a result of the March 2008acquisition of Slades Ferry Bancorp ("Slades"). Excluding the impact of theSlades acquisition, total deposits have grown during 2008 at an annualized rateof 7.0. Total loans grew by $617.9 million, or 30.3, during the twelve months endedDecember 31, 2008, with the Slades acquisition contributing $471.2 million tototal loan growth. Excluding the Slades acquisition, loan growth achieved in2008 amounted to $146.7 million, or 7.2, on an annualized basis, and wasconcentrated in the commercial (12.6) and home equity (19.0) lendingcategories. Certain non-core items are included in the computation of earnings in accordancewith the United States of Americas generally accepted accounting principles("GAAP") in both 2008 and 2007 as indicated by the table below.

In an effort toprovide investors with information regarding the Company's results, the Companyhas disclosed the following non-GAAP information, which management believesprovides useful information to the investor. This information should not beviewed as a substitute for operating results determined in accordance with GAAP,nor is it necessarily comparable to non-GAAP information which may be presentedby other companies. Dollars in Thousands, Except Per Share DataTwelve Months Ending December 31,RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION20082007 $ Variance VarianceNET INCOME (GAAP) $23,964 $28,381$(4,417)-15.6 Net Interest Income Components Add - Write-Off of Debt Issuance Cost, net of tax- 590(590)n/aNon-Interest Income Components Add - Net Loss on Sale of Securities, net of tax 396 -396n/aNon-Interest Expense ComponentsAdd - Executive Early Retirement Costs, net of tax - 264(264)n/aAdd - Merger & Acquisition Expenses, net of tax728 -728n/aAdd - Litigation Reserve (net of recovery), net of tax 488 885(397)-44.9 Less - WorldCom Bond Loss Recovery, net of tax (272) -(272)n/aNET OPERATING EARNINGS (NON-GAAP) $25,304 $30,120$(4,816)-16.0 Diluted Operating Earnings Per Share$1.61 $2.13$(0.52 )-24.4As shown above, net operating earnings were $25.3 million, or $1.61 on a perdiluted share basis, for the year ending December 31, 2008 compared to netoperating earnings and diluted earnings per share for the year ended December31, 2007 of $30.1 million and $2.13, respectively. The $7.2 million in chargesfor OTTI of securities recognized during 2008 decreased net operating earningson a diluted earnings per share basis by approximately $0.30 There were nonon-core items for the fourth quarter of 2008. Comparing the three months ending December 31, 2008 to the same period lastyear, net interest income increased $6.0 million, or 24.5. The net interest margin for the three and twelve monthperiods ended December 31, 2008 was 3.81 and 3.95, respectively.

See the tables below for reconciliations of net interestincome and the net interest margin as adjusted:Three Months EndedTwelve Months Ended December 31,December 31,2008 2007 20082007(Dollars in Thousands) Net Interest Income GAAP $30,495 $24,491 $117,462 $96,183 Add - Write-Off of Debt Issuance Cost - - -907 Net Interest Income as Adjusted$30,495 $24,491 $117,462 $97,090Three Months EndedTwelve Months Ended December 31,December 31,2008 2007 20082007 Net Interest Margin GAAP3.81 3.94 3.95 3.90Add - Write-Off of Debt Issuance Cost - - -0.04 Net Interest Margin as Adjusted 3.81 3.94 3.95 3.94April 2007 refinance of Trust Preferred SecuritiesOn a linked quarter basis the net interest margin decreased from 4.09 in thethird quarter of 2008 to 3.81 in the fourth quarter. Deposit costs, in particular, did not declineas rapidly given the opportunity realized early in the fourth quarter to raisedeposits at attractive rates to retain customers and attract prospects. Non-interest income decreased by $4.8 million, or (57.0), and by $4.0 million,or (12.4), during the three and twelve months ended December 31, 2008,respectively, as compared to the same periods in the prior year. Wealth management revenue increased by $340,000, or 15.2, and $3.0 million,or 37.3, for the three and twelve months ended December 31, 2008, as comparedto the same periods in 2007. Assets under management at December 31, 2008 and2007 were $1.1 billion and $1.3 billion, respectively.