CHICOPEE, Mass., Jul 25, 2008 (BUSINESS WIRE) ----Chicopee Bancorp, Inc. (the "Company") (Nasdaq Global Market: CBNK), the holding company for Chicopee Savings Bank (the "Bank"), today announced the results of operations for the three and six months ended June 30, 2008. The Company's net income for the three months ended June 30, 2008 was $128,000 with earnings per share of $0.02, compared to $590,000 with earnings per share of $0.09 for the same period in 2007. The decrease in net income resulted from an increase in the loan loss provision of $149,000 due to significant loan growth as well as an increase in operating costs associated with the Equity Incentive Plan of $340,000. In addition, net interest margin decreased 20 basis points to 3.22% at June 30, 2008 compared to 3.42% for the same period in 2007. For the six months ended June 30, 2008, net income decreased $827,000 to $317,000 with earnings per share of $0.05, compared to $1.1 million with earnings per share of $0.17 for the six months ended June 30. 2007. This decrease resulted mainly from increased salaries and employee benefits expense of $788,000, primarily attributable to the implementation of the Company's Equity Incentive Plan.

The Company's assets increased by $52.0 million, or 11.2%, to $515.5 million at June 30, 2008 from $463.5 million at December 31, 2007, primarily as a result of an increase in federal funds sold of $10.6 million, loans of $28.5 million as well as securities held-to-maturity of $16.4 million. The asset growth was funded by an increase in advances from the Federal Home Loan Bank of $48.6 million as well as an increase in securities sold under agreements to repurchase of $13.1 million. Net loans increased to $408.4 million at June 30, 2008 from $379.9 million at December 31, 2007, with one-to-four family real estate loans increasing $6.2 million, or 3.9%, commercial business loans increasing $9.0 million, or 19.7%, and commercial real estate loans increasing $10.6 million, or 10.3%.

Financial highlights include:

-- The investment portfolio increased by $15.7 million, or 44.7%, to $50.9 million as of June 30, 2008 compared to $35.2 million at December 31, 2007, primarily due to purchases of held-to-maturity securities.

-- Total deposits were $321.9 million at June 30, 2008 compared to $325.0 million at December 31, 2007, a decrease of $3.0 million or 1%. During the period demand deposits increased by $2.3 million, or 8.3%, and money market deposits increased by $7.6 million, or 21.4%. The growth in demand deposit and money market deposit accounts reflects the increase in commercial relationships and the success of sales and marketing efforts. Certificates of deposit balances decreased $11.1 million, or 5.3%, to $196.9 million at June 30, 2008 largely due to the decreasing rate environment.

-- The provision for loan losses was $262,000 for the three months ended June 30, 2008 compared to $113,000 for the same period in 2007. For the six months ended June 30, 2008, the provision for loan losses increased to $272,000 from $214,000 for the six months ended June 30, 2007. The increase in provision for loan losses for the three and six months ended June 30, 2008 was primarily due to the increase in loan balances, in particular the increase in commercial real estate loans. Asset quality remains favorable, reflective in total non-performing loans to total loans of .45% and total non-performing loans to total assets of .36% at June 30, 2008. This was a slight increase from December 31, 2007 ratios of .27% and .22%, respectively.

-- During the quarter ended June 30, 2008, the net interest margin decreased to 3.22%, as compared to 3.42% for the second quarter of 2007. The decrease of 20 basis points was primarily due to the decreasing rate environment. The net interest margin was 3.21% for the six months ended June 30, 2008 compared to 3.40% for the six months ended June 30, 2007. The net interest margin compression for the six months ended June 30, 2008 was also a result of the decreasing interest rate environment.

-- Non-interest income was $678,000 for the quarter ended June 30, 2008 compared to $796,000 for the quarter ended June 30, 2007. The decrease during the period was primarily attributable to a decrease in the gain on sale of available-for-sale securities of $193,000. The decrease was partially offset by an increase in service charges, fees and commissions of $76,000, which was related to increased deposit account transactions. For the six months ended June 30, 2008, non-interest income was $1.2 million, a decrease of $288,000 or 19.0% compared to $1.5 million for the same period in 2007. The decrease for the first six months of 2008 was primarily due to a decrease of $473,000 in sales of available-for-sale securities. The decrease was partially offset by an increase in service charges, fees and commissions of $190,000.

-- Non-interest expense for the three and six months ended June 30, 2008 was $3.9 million and $7.6 million compared to $3.5 million and $6.8 million, respectively, for the same periods in 2007. The increase in non-interest expense for the three and six months ended June 30, 2008 is primarily due to the increase in salaries and employee benefit expense attributable to increased benefit costs associated with the Company's Equity Incentive Plan.

-- Total stockholders' equity at June 30, 2008 was $98.5 million, a decrease of $5.8 million, or 5.5% from December 31, 2007, resulting mainly from the purchase of 496,968 shares of the Company's common stock through the Company's stock repurchase program, at a cost of $6.5 million, partially offset by net income for the period. The Company's book value per share increased 19 basis points to 14.51 at June 30, 2008 compared to 14.32 at December 31, 2007.

Chicopee Bancorp, Inc. is a publicly owned bank holding company and the parent corporation of Chicopee Savings Bank, a Massachusetts stock savings bank headquartered at 70 Center Street, Chicopee, MA 01013. Chicopee Savings Bank provides a wide variety of financial products and services through its main office, five branch offices located in Chicopee, Ludlow and West Springfield in Western Massachusetts, and lending and operations center. For more information regarding the Bank's products and services, please visit our web site at www.chicopeesavings.com.

This news release may contain forward-looking statements, which can be identified by the use of words such as "believes," "expects," "anticipates," "estimates" or similar expressions. Such forward-looking statements and all other statements that are not historic facts are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. These factors include, but are not limited to, general economic conditions, changes in the interest rate environment, legislative or regulatory changes that may adversely affect our business, changes in accounting policies and practices, changes in competition and demand for financial services, adverse changes in the securities markets, changes in deposit flows and changes in the quality or composition of the Company's loan or investment portfolios. Additionally, other risks and uncertainties may be described in the Company's quarterly reports on Form 10-Q and its annual report on Form 10-K, each filed with the Securities and Exchange Commission, which are available through the SEC's website at www.sec.gov. Should one or more of these risks materialize, actual results may vary from those anticipated, estimated or projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company assumes no obligation to update any forward-looking statements.

 CHICOPEE
   BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars In Thousands) (Unaudited) June 30, December 31, Assets
   2008 2007 --------- --------- Cash and due from banks $ 7,273 $ 5,226 Short-term investments 1,312 9,229 Federal funds sold
   19,705 9,066 --------- --------- Total cash and cash equivalents 28,290 23,521 Securities available-for-sale, at fair value
   7,170 7,864 Securities held-to-maturity, at cost (fair value $43,487 and $27,069 at June 30, 2008 and December 31, 2007, respectively)
   43,742 27,324 Federal Home Loan Bank stock, at cost 3,645 1,583 Loans, net of allowance for loan losses ($3,325 at June 30,
   2008 and $3,076 at December 31, 2007) 408,376 379,868 Cash surrender value of life insurance 11,909 11,675 Premises and equipment,
   net 7,996 7,033 Accrued interest and dividend receivable 1,507 1,752 Deferred income tax asset 2,136 1,911 Other assets 710
   925 --------- --------- Total assets $515,481 $463,456 ========= ========= Liabilities and Stockholders' Equity Deposits Non-interest-bearing
   $ 29,421 $ 27,167 Interest-bearing 292,497 297,804 --------- --------- Total deposits 321,918 324,971 Securities sold under
   agreements to repurchase 27,316 14,179 Advances from Federal Home Loan Bank 66,415 17,774 Mortgagors' escrow accounts 1,038
   1,103 Accrued expenses and other liabilities 278 1,130 --------- --------- Total liabilities 416,965 359,157 --------- ---------
   Commitments and contingencies Stockholders' Equity Common stock (no par value, 20,000,000 shares authorized, 7,439,368 shares
   issued at June 30, 2008 and December 31, 2007) 72,479 72,479 Treasury stock, at cost (651,968 shares at June 30, 2008 and
   155,000 at December 31, 2007) (8,626) (2,108) Additional paid-in-capital 848 573 Unearned compensation (Management Reward
   Program) (3,527) (3,940) Unearned compensation (Employee Stock Ownership Plan) (5,208) (5,356) Retained earnings 42,734 42,417
   Accumulated other comprehensive income (loss) (184) 234 --------- --------- Total stockholders' equity 98,516 104,299 ---------
   --------- Total liabilities and stockholders' equity $515,481 $463,456 ========= ========= 

 CHICOPEE BANCORP, INC.
   AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) (Unaudited) Three Months
   Ended Six Months Ended June 30, June 30, ---------------------- ----------------------- 2008 2007 2008 2007 ----------- ----------
   ----------- ----------- Interest and dividend income: Loans, including fees $ 5,912 $ 5,889 $ 11,781 $ 11,616 Interest and
   dividends on securities 347 515 663 975 Other interest- earning assets 36 219 173 407 ----------- ---------- ----------- -----------
   Total interest and dividend income 6,295 6,623 12,617 12,998 ----------- ---------- ----------- ----------- Interest expense:
   Deposits 2,251 2,724 4,897 5,352 Securities sold under agreements to repurchase 90 77 180 149 Other borrowed funds 311 145
   470 292 ----------- ---------- ----------- ----------- Total interest expense 2,652 2,946 5,547 5,793 ----------- ----------
   ----------- ----------- Net interest income 3,643 3,677 7,070 7,205 Provision for loan losses 262 113 272 214 -----------
   ---------- ----------- ----------- Net interest income, after provision for loan losses 3,381 3,564 6,798 6,991 -----------
   ---------- ----------- ----------- Non-interest income: Service charges, fees and commissions 579 503 1,122 932 Loan sales
   and servicing (1) - (7) (2) Net gain on sales of securities available-for-sale 100 293 115 588 ----------- ---------- -----------
   ----------- Total non- interest income 678 796 1,230 1,518 ----------- ---------- ----------- ----------- Non-interest expenses:
   Salaries and employee benefits 2,361 1,975 4,582 3,794 Occupancy expenses 278 260 567 551 Furniture and equipment 231 237
   464 466 Data processing 208 181 413 364 Stationery, supplies and postage 96 86 193 179 Other non-interest expense 709 723
   1,361 1,398 ----------- ---------- ----------- ----------- Total non- interest expenses 3,883 3,462 7,580 6,752 -----------
   ---------- ----------- ----------- Income before income taxes 176 898 448 1,757 Income tax expense 48 308 131 613 -----------
   ---------- ----------- ----------- Net income $ 128 $ 590 $ 317 $ 1,144 =========== ========== =========== =========== Earnings
   per share: Basic $ 0.02 $ 0.09 $ 0.05 $ 0.17 Diluted $ 0.02 $ 0.09 $ 0.05 $ 0.17 Weighted average shares outstanding: Basic
   6,029,026 6,881,194 6,173,161 6,881,194 Diluted 6,070,240 6,881,194 6,208,951 6,881,194 

 CHICOPEE BANCORP, INC.
   AND SUBSIDIARIES SELECTED FINANCIAL DATA AND RATIOS (Unaudited) Three Months Six Months Ended Ended June 30, June 30, ---------------
   ----------------- 2008 2007 2008 2007 ------- ------- --------- ------- Performance Ratios: Return on Average Assets 0.11%
   0.51% 0.13% 0.51% Return on Average Equity 0.51% 2.16% 0.63% 2.11% Interest Rate Spread 2.56% 2.49% 2.46% 2.50% Net Interest
   Margin 3.22% 3.42% 3.21% 3.40% Non-Interest Expense to Average Assets 3.20% 3.02% 3.22% 2.98% Efficiency Ratio 89.86% 77.39%
   91.33% 77.40% Average Interest-Earning Assets to Average Interest-Bearing Liabilities 128.21% 133.92% 129.78% 133.05% Average
   Equity to Average Assets 20.52% 23.81% 21.43% 23.94% At June At At June 30, December 30, 31, ------- --------- ------- 2008
   2007 2007 ------- --------- ------- Asset Quality Ratios: Allowance for loan losses as a percent of total loans 0.81% 0.80%
   0.82% Allowance for loan losses as a percent of total nonperforming loans 181.10% 303.35% 603.73% Net charge-offs to average
   outstanding loans during the period 0.01% 0.01% 0.02% Nonperforming loans as a percent of total loans 0.45% 0.27% 0.14% Other
   Data: Number of Offices 7 7 7 

SOURCE: Chicopee Bancorp, Inc.

Chicopee Bancorp, Inc. W. Guy Ormsby, 413-594-6692
   Executive Vice President, Chief Financial Officer and Treasurer 

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