Dear Valued Customers:

For the last several months, all the news about Wall Street and the Financial Services Industry has been bad. Fannie Mae and Freddie Mac have been nationalized; Merrill Lynch is now part of Bank of America, AIG is the recipient of an $85 billion bailout by the government, and the House and Senate recently passed the $700 billion Emergency Stabilization Act.

Amidst all this bad news, I am happy to report to you that Windsor Federal Savings remains a strong and well capitalized financial institution. Our capital is well in excess of the levels set by our primary regulator, the Office of Thrift Supervision, and is designated “well capitalized”.

We did not originate or purchase any sub-prime loans and have no Fannie Mae or Freddie Mac preferred stock on our balance sheet. Halfway through our fiscal year, our earnings are strong and our level of classified assets remains quite manageable.

The Emergency Economic Stabilization Act included a provision to increase FDIC insurance to $250,000 through December 31, 2009. Subsequent to the passage of this Act, the FDIC has announced unlimited coverage for non interest-bearing transaction accounts. If you are unsure if your deposits are covered, you can go to EDIE the Electronic Deposit Information Estimator on the FDIC website (www.fdic.gov) or visit any one of our five convenient locations.  Our experienced staff will be happy to assist you.

For over 70 years, we’ve worked diligently to serve our customers in meeting their banking needs while also staying focused on remaining a safe, secure and strong financial institution. We have always been a community bank and plan to stay that way as we move forward. Please feel free to email me at griffin@windsorfederal.com or call me at 860-688-8511 if I can be of assistance.

Sincerely,

Mark E. Griffin

Mark E. Griffin
President

Safe, Secure & Strong, Since 1936!