HOLIDAY CLOSINGS

 To Our Customers and Community:

Not all news in the financial sector is bad! Orange County Trust  Company is pleased to report our news is good. We continue to be profitable, strong and growing. We have earned BauerFinancial, Inc's Five Star Superior rating for 72 consecutive quarters and have a financial safety rating of "A" or "Excellent", from TheStreet.com Ratings, Inc., two independent financial analyst companies. BauerFinancial reports "fewer that 10% of the nation's banks can claim this honor." TheStreet.com Ratings recognizes "Orange County Trust Company as an outstanding bank offering excellent financial stability for its customers, vendors and employees." Fewer than 4% of the nation's banks and thrifts can claim this distinction.

The Wall Street woes of large banks caused by the subprime mortgage fiasco have certainly captured the news in recent weeks. You haven't heard the same reports about Orange County Trust Company and other community banks like us because we are, and have always been, lenders with a conscience. While some lenders have been more concerned about what loan was best for them, community banks have been concerned about what loan is best for its customer. We don't just want you to get into a home or business, we want you to get into a home or business you can afford, and afford to keep.

So here at Orange County Trust Company, it's business as usual. Our 2007 year end earnings were $7.1 million, a 5.2% increase over 2006. The first quarter of 2008 looks promising too, ending March 31st with earnings of $1.7 million, 2% over the first quarter of 2007. We are extremely well capitalized, our loan portfolio is stable and strong and our assets are growing. We are well positioned to weather this storm as we continue to offer customers and investors a safe, profitable financial  partner.

Respectfully,

Terry R. Saturno
     President & CEO