Press Releases

May 2008: BauerFinancial, Inc. of Coral Gables, FL, the nation’s leading independent bank rating and research firm, is proud to announce that Savings Institute Bank & Trust, Willimantic, Connecticut has once again achieved its highest 5-Star rating. The 5-Star rating is based on the overall financial picture of the bank and indicates that Savings Institute Bank & Trust is one of the strongest banks in the nation. This quarter represents the 14th consecutive time that Savings Institute Bank & Trust has earned this highest honor.

“The times are changing and fewer banks are qualifying for this top rating, but our rigorous standards remain,” boasts Karen L. Dorway, president of BauerFinancial. “You should be proud to know your local bank, Savings Institute Bank & Trust, can claim this highest honor and be confident to call it your bank.”

SI Financial Group, Inc. (NASDAQ Global Market:SIFI) is the parent company of Savings Institute Bank & Trust Company. Savings Institute Bank & Trust was established in 1842 and has been committed to the needs of its neighbors and friends in Eastern Connecticut for 166 years. Currently it operates through 22 conveniently located offices in Hartford, New London, Tolland and Windham counties. Savings Institute Bank & Trust can also be found on the internet at www.savingsinstitute.com.

BauerFinancial, Inc., Coral Gables, Florida, the nation’s leading independent bank rating and research firm, has been reporting on and analyzing the performance of U.S. banks and credit unions since 1983. No institution pays for its rating, nor can they elude it. Consumers may obtain star-ratings by visiting www.bauerfinancial.com.

For more information on Savings Institute Bank & Trust, or any other U.S. bank or credit union, contact Karen Dorway directly at 800.388.6686 or e-mail her at kdorway@bauerfinancial.com.

New Resource Available for Willimantic Area Seniors and Their Families - April 25, 2008

Willimantic, Connecticut (April 25, 2008) – Willimantic area seniors now have a new resource to help them age successfully.

Rosemarie Lee, CSA, with Savings Institute Bank & Trust, recently completed a comprehensive course through the Society of Certified Senior Advisors (SCSA) and earned the designation of Certified Senior Advisor (CSA). SCSA is an international organization that has trained more than 20,000 professionals to meet the changing needs of a growing senior population.

“The health, financial and social needs of seniors are different and more complicated than those of any other age group. SCSA keeps professionals from a wide variety of fields abreast of all these issues by providing education, training, support and communication resources to those of us dedicated to serving seniors,” Lee said.

The explosion in growth of the senior population is one of the most important demographic developments of the 21st century. Two-thirds of the people who have lived past the age of 65 are alive today. In the United States alone, seniors (age 65 and older) number 35 million and will continue to increase (with women being the largest segment), leading an unprecedented shift in the age of the population. By 2030, the U.S. Bureau of Census predicts there will be about 70 million people who are 65 and older – one in five Americans will be seniors.

This demographic shift requires an educated response in how professionals work with seniors and the challenges and opportunities they face. Lee said, “With more people living longer, we are already beginning to see changes in how seniors function in our society, from retirees who choose to start a second or third career, to various forms of alternative senior housing and new approaches to diet, exercise and overall health care for seniors.”

As a CSA, Lee will participate in continuing education that emphasizes ethical selling and business practices and volunteer service specific to seniors.

About Society of Certified Senior Advisors: SCSA is the world’s largest membership organization training professionals to serve seniors. Phone number 1-800-653-1785, www.society-csa.com

NOTE: Statistics on population are, respectively from The Fact Book on Aging by Elizabeth Vierck, 1999, the Administration on Aging, 2004 and the U.S. Bureau of Census.

SI FINANCIAL GROUP, INC. REPORTS RESULTS FOR THE QUARTER ENDED MARCH 31, 2008

Willimantic, Connecticut—April 23, 2008. SI Financial Group, Inc. (the “Company”) (NASDAQ Global Market: SIFI), the holding company of Savings Institute Bank and Trust Company (the “Bank”), reported net income of $455,000, or $0.04 basic and diluted earnings per common share, for the quarter ended March 31, 2008 versus net income of $449,000, or $0.04 basic and diluted earnings per common share, for the quarter ended March 31, 2007. During the first quarter of 2008, the Company completed its acquisition of two existing branch locations in Colchester and New London, Connecticut.

Net interest income increased 6.8% to $5.6 million for the quarter ended March 31, 2008 from $5.3 million for the quarter ended March 31, 2007. The increase in net interest income was due to a higher average balance of interest-earning assets and higher yields on securities, offset by an increase in the cost of funds related to an increase in average deposits and Federal Home Loan Bank borrowings.

The provision for loan losses decreased $30,000 to $135,000 for the first quarter of 2008 compared to the same period in the prior year. The increase risk of loss associated with the indirect automobile loan portfolio, which was sold in June 2007, contributed to the higher provision for the first quarter of 2007. The ratio of the allowance for loan losses to total loans increased from 0.77% at March 31, 2007 to 0.88% at March 31, 2008. At March 31, 2008, nonperforming loans totaled $7.7 million, compared to $4.5 million at March 31, 2007. Specific reserves relating to nonperforming loans increased to $1.3 million at March 31, 2008 compared to $59,000 at March 31, 2007. At March 31, 2008, two commercial construction relationships accounted for $5.5 million of nonperforming loans and $1.0 million in specific reserves. For the quarter ended March 31, 2008, net loan charge-offs were $82,000, compared to $62,000 for the quarter ended March 31, 2007.

Noninterest income was $2.5 million for the quarters ended March 31, 2008 and 2007. For the quarter ended March 31, 2008, service fees rose as a result of an increase in overdraft charges on certain deposit products and higher electronic banking usage. Wealth management fees were higher principally due to growth in the assets under management. The increase in service fees and wealth management fees was offset by a decrease of $211,000 in the net gain on the sale of available for sale securities.

Noninterest expenses increased $388,000 for the quarter ended March 31, 2008 compared to the same period in 2007, primarily due to increased operating costs associated with branch expansion. New branch offices resulted in higher compensation costs due to increased staffing levels and additional occupancy expense related to facility leases and other occupancy-related expenses. Computer and electronic banking services expense rose due to increased telecommunication costs and transaction activity. During the first quarter of 2008, an impairment charge of $63,000 was recorded to reduce the carrying value of the Bank’s investment in a small business investment company limited partnership. Outside professional services expense was higher in 2007 due to charges associated with the termination of the agreement to purchase a mortgage company during the first quarter of 2007.

Total assets increased $54.4 million, or 6.9%, to $844.6 million at March 31, 2008 from $790.2 million at December 31, 2007. Contributing to the increase in assets were increases of $29.0 million in available for sale securities, $12.0 million in net loans receivable, $8.8 million in cash and cash equivalents and $3.6 million in intangible assets, offset by a decrease of $913,000 in other real estate owned. Available for sale securities increased as a result of purchases of predominately mortgage-backed securities with funds received from the Bank’s Colchester and New London, Connecticut branch acquisitions during the first quarter of 2008. The increase in net loans receivable included increases in primarily commercial mortgage and commercial business loans, offset by decreases in construction loans and home equity lines of credit. Of the $12.0 million increase in net loans receivable, $7.4 million represented primarily commercial loans acquired in connection with the Colchester and New London branch acquisitions. Loan originations increased $12.1 million in 2008 compared to the same period in 2007. The increase in intangible assets, consisting of core deposit intangibles and goodwill, resulted from the Colchester and New London branch acquisitions. The decrease in other real estate owned reflects the sale of a commercial real estate property and a residential real estate property during the first quarter of 2008.

Total liabilities were $765.7 million at March 31, 2008 compared to $708.1 million at December 31, 2007. Deposits increased $54.8 million, or 10.0%, which included an increase in certificate of deposit accounts of $27.9 million and NOW and money market accounts of $23.6 million. Contributing to the increase in deposits was branch expansion, including $27.7 million in deposits that were assumed with the purchase of the Colchester and New London branches, and competitively priced deposit products. Borrowings increased $3.1 million from $149.9 million at December 31, 2007 to $152.9 million at March 31, 2008, resulting from an increase in Federal Home Loan Bank advances.

Total stockholders’ equity decreased $3.2 million from $82.1 million at December 31, 2007 to $78.9 million at March 31, 2008. The decrease in equity related to stock repurchases of 202,000 shares at a cost of $2.0 million, an increase in net unrealized holding losses on available for sale securities aggregating $1.2 million (net of taxes) and a cumulative effect adjustment for a change in accounting principle of $547,000, resulting from the application of Financial Accounting Standards Board’s Emerging Issues Task Force Issue No. 06-4, “Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements,” offset by earnings of $455,000.

“We are pleased with the successful integration of two well-established branch offices, which contributed a total of $27.7 million in deposits and $7.4 million in net loans. Combined with the relocation of our Norwich, Connecticut office and our new location in East Hampton, Connecticut, we have continued to expand our branch network, thereby enhancing customer service with more convenient locations to provide greater access to our retail services for our customers,” commented Rheo A. Brouillard, President and Chief Executive Officer.

SI Financial Group, Inc. is the holding company for Savings Institute Bank and Trust Company. Established in 1842, the Savings Institute Bank and Trust Company is a community-oriented financial institution headquartered in Willimantic, Connecticut. Through its twenty-two branch locations, the Bank offers a full-range of financial services to individuals, businesses and municipalities within its market area.

SELECTED OPERATING DATA – Continued:

(Unaudited)	Three Months Ended March 31,
(Unaudited)	2008		2007

Earnings per common share:
Basic	$	0.04	$	0.04
Diluted	$	0.04	$	0.04

Weighted-average common shares outstanding:
Basic		11,431,544		11,805,171
Diluted		11,464,142		11,887,491

(Dollars in Thousand / Unaudited)	At or For the Three Months Ended March 31,
	2008		2007
Selected Performance Ratios: (1)
Return on average assets	0.22	%	0.24	%
Return on average equity	2.24		2.20
Interest rate spread	2.45		2.48
Net interest margin	2.91		2.98
Efficiency ratio (2)	91.36		93.69

Asset Quality Ratios:
Allowance for loan losses	$ 5,298		$ 4,468
Allowance for loan losses as a percent of total loans	0.88	%	0.77	%
Allowance for loan losses as a percent of nonperforming loans	68.53		98.59
Nonperforming loans	$ 7,731		$ 4,532
Nonperforming loans as a percent of total loans	1.28	%	0.78	%
Nonperforming assets (3)	$ 7,731		$ 4,857
Nonperforming assets as a percent of total assets	0.92	%	0.64	%

Willimantic, CT (April 14, 2008) – Two Savings Institute Bank & Trust employees have been inducted as members in the SBLI President’s Council, the Savings Bank Life Insurance (SBLI) Company’s top sales award in the state. They were recently honored at the 24th Annual President’s Council Awards Dinner at the Aqua Turf in Plantsville.

Elaine Ruffo, Customer Service Representative in the Bank’s Canterbury Office, earned the honor for the thirteenth consecutive year. She is one of only a handful of people who have received this award on such a consistent basis.

Also being honored for her SBLI achievements this year was Jessica Suplee, Manager of the Bank’s Lebanon Office.

Established in 1842, Savings Institute Bank & Trust Company is a full service community-oriented financial institution dedicated to serving the financial service needs of consumers and businesses within its market area, including insurance, trust and investment services. Savings Institute Bank & Trust Co. is the wholly owned subsidiary of SI Financial Group, Inc. (NASDAQ:SIFI).

Willimantic, CT (April 2, 2008) – Sonia Dudas, Savings Institute Bank & Trust Company Senior Vice President, recently announced that Rene G. “Pete” Ledoux has joined the Bank’s Wealth Management Division as Senior Vice President and Senior Trust Officer.

Mr. Ledoux has more than 30 years of experience in the financial services industry, most recently as Vice President, Business Development Manager, at Trust Company of Connecticut, a div. of New Alliance Bank. Prior to that, he held several positions in the industry including Senior Vice President, Wealth Management for Westbank in West Springfield, MA, and Financial Advisor with Merrill Lynch Pierce Fenner & Smith.

In his new position, Mr. Ledoux will be responsible for SI Financial Advisors, the wealth management division of Savings Institute Bank & Trust; Investment Services and SI Trust Servicing, a back-office provider of trust operations. In addition, he will be responsible for strategic planning for SI Financial Advisors, new product implementation and developing new business.

The Bank’s Trust Department, established in 1991, currently has assets of more than $170 million. Mr. Ledoux’s expertise in this field will assist the Bank in solidifying existing relationships; expanding its reach throughout the southeastern Connecticut area and developing relationships in new markets as well.

A Ludlow, MA resident, Ledoux is a graduate of Niagara University and the College of Financial Planning where he received his Certified Financial Planner designation. He holds his FINRA (NASD) Series 7, 63, and 65 licenses and is licensed in Massachusetts and Connecticut for life, health and variable annuity products.

He has served as a board member of the West Springfield Chamber of Commerce, is a past president of the Estate Planning Council of Hampden County, Massachusetts and is member of Bay State Health System Professional Advisory Committee

Mr. Ledoux or any of the SI Financial Advisors can be reached by calling 860-450-7800.

Willimantic, Connecticut—March 19, 2008. The Board of Directors of SI Financial Group, Inc. (the “Company”) (Nasdaq Global Market: SIFI) today declared a cash dividend on the Company’s outstanding shares of common stock. The dividend of $0.04 per share will be paid on or about April 25, 2008 to stockholders of record as of the close of business on April 4, 2008.
SI Bancorp, MHC, the Company’s mutual holding company parent, intends to waive receipt of the dividend.

Savings Institute Bank & Trust Company Acquires New Branch in New London - March 6, 2008

Willimantic, Connecticut—March 6, 2008. SI Financial Group, Inc. (NASDAQ Global Market: SIFI), parent company of Savings Institute Bank & Trust Company (“Savings Institute”), has completed its acquisition of Bank of Southeastern Connecticut’s branch office located in New London, Connecticut. The New London branch opened on Monday, March 3rd at 15 Masonic Street, next to the post office, in the heart of New London as Savings Institute’s 22nd branch office.

“The New London location now brings the Savings Institute's unique brand of banking and convenience to five communities in the New London region,” explains Bill Anderson, Vice President, Retail Banking. “Unique products like e.SI Rewards CheckingTM, 501 CheckingTM for Non-Profits and, in many branches, our signature LifeStyle LobbyTM are all now more accessible to customers from East Lyme to Gales Ferry.”

While the bank has long had branches in Stonington and Groton, it has over the course of the last three years opened new branches in Gales Ferry, East Lyme, Colchester and now New London. With five locations in the immediate area, Savings Institute is looking to bring an added dimension of choice to not only personal banking customers, but also commercial customers throughout southeastern Connecticut. The Savings Institute's New London branch is pleased to retain the majority of the Bank of Southeastern Connecticut's staff.

“One of the key advantages of being a bank of our size is our ability to fill what we see as a void in the marketplace,” comments Paul Suprin, the New London branch's Commercial Loan Officer. “With 22 branches in total, we're at a size that can provide important value to customers needing slightly larger financing…. while not being so big that decisions are delayed in bureaucratic red tape,” concludes Mr. Suprin.

SI Financial Group, Inc. is the holding company for Savings Institute Bank and Trust Company. Established in 1842, Savings Institute Bank and Trust Company is a community-oriented financial institution headquartered in Willimantic, Connecticut. Through its branch locations, the Bank offers a full-range of financial services to individuals, businesses and municipalities within its market area.

Savings Institute Employee's Caring & Giving Program Awards Grants - February 25, 2008

Willimantic, CT (February 25, 2008) – The Savings Institute Bank & Trust Company Employees’ Caring & Giving Program recently awarded $4,400 to thirteen local charitable organizations.

Employees targeted organizations dedicated to aiding individuals with disabilities or special needs. Those organizations receiving grants are: Camp Horizons; and Project Genesis in Willimantic; Easter Seals and ARC of New London County/Camp Harkness/Recreation Programs in Norwich. Also receiving funds were The ARC of Quinebaug Valley in Danielson; Camp Quinebaug of Putnam; Mystic Supported Living Program; The ARC of Greater Enfield; Lebanon Social Services; and TEMS Functional and Academic Learning Program in South Windsor.

The Caring & Giving program has been making quarterly grants since its inception in 1998. Bank employees created the program as a way of self-directing their yearly charitable contributions. For the year 2007, employees have pledged more than $16,800 to assist organizations that address such issues as assisting families in need, hunger and homelessness, helping the elderly and assisting individuals with disabilities or special needs. To date, $16,500 of that amount has been awarded.

SI Financial Group Foundation, INC. Accepting Applications - February 22, 2008

Willimantic, CT (February 22, 2008) – The SI Financial Group Foundation, Inc. is welcoming grant applications through March 31, 2008, from nonprofit organizations (those recognized by the IRS as a 501(c)(3) organization or a municipality), as it prepares to award grants in June.

The SI Financial Group Foundation, Inc. was established in 2004 and is dedicated completely to community activities and the promotion of charitable causes in the communities served by the Savings Institute Bank and Trust Company since 1842.

Projects are considered in the areas of social services, health, education, arts and culture. Its focus is on project support rather than funding for bricks and mortar or general operating expenses.

The Foundation seeks applications and awards grants twice a year. The application deadline for the next round of donations will be September 30, 2008. Grant awards will be announced in December.
To receive grant application forms or for more information please call Sandra Mitchell at 860-456-6509. If you would like the application sent to you electronically, send an email stating your request to Sandra_Mitchell@banksi.com.

SI Financial Group, INC. Announces Stock Repurchase Program - February 20, 2008

Willimantic, Connecticut. February 20, 2008 – SI Financial Group, Inc.(the “Company”) (Nasdaq Global Market: SIFI) today announced that the Company’s Board of Directors has approved the repurchase of up to 5% of the Company's outstanding common stock, or approximately 596,000 shares. When combined with shares that remain to be repurchased under the existing stock repurchase program, the Company may repurchase up to 647,000 shares of its common stock. Repurchases, which will be conducted through open market purchases or privately negotiated transactions, will be made from time to time depending on market conditions and other factors. Repurchased shares will be held in treasury.

SI Financial Group, Inc. is the holding company for Savings Institute Bank & Trust Company. Savings Institute Bank & Trust Company is headquartered in Willimantic, Connecticut with 21 branches in eastern Connecticut. The Bank is a full service community-oriented financial institution dedicated to serving the financial service needs of individuals, businesses, and municipalities within its market area.

SI Financial Group, INC. Reports Results for the Quarter and the Year End - December 31, 2007

Willimantic, Connecticut—February 20, 2008. SI Financial Group, Inc. (the “Company”) (NASDAQ Global Market: SIFI), the holding company of Savings Institute Bank and Trust Company (the “Bank”), reported net income of $458,000, or $0.04 basic and diluted earnings per common share, for the quarter ended December 31, 2007 versus net income of $669,000, or $0.06 basic and diluted earnings per common share, for the quarter ended December 31, 2006. Net income for the year ended December 31, 2007 was $1.4 million, or $0.12 basic and diluted earnings per common share, compared to $2.8 million, or $0.24 basic and $0.23 diluted earnings per common share, for the year ended December 31, 2006. Lower net income for 2007 was primarily due to higher noninterest expenses and lower net interest income, offset by an increase in noninterest income.

Net interest income increased 1.4% to $5.4 million for the quarter ended December 31, 2007 and decreased 4.2% to $21.6 million for the year ended December 31, 2007. Net interest income increased for the quarter due to an increase in the average balance of interest-earning assets and higher yields on loans and securities, offset by an increase in the cost of funds. Net interest income decreased for the year ended December 31, 2007 due to higher-yielding deposit accounts and an increase in average deposits and Federal Home Loan Bank borrowings, offset by increases in the balance of interest-earning assets and the average yield on earning assets.

The provision for loan losses decreased $13,000 to $322,000 for the fourth quarter of 2007 compared to the same period in the prior year and increased $181,000 to $1.1 million for the year ended
December 31, 2007 compared to $881,000 for the year ended December 31, 2006. The ratio of the allowance for loan losses to total loans increased from 0.76% at December 31, 2006 to 0.89% at December 31, 2007. At December 31, 2007, nonperforming loans totaled $7.6 million, compared to $1.4 million at December 31, 2006. Specific reserves relating to nonperforming loans increased to $1.3 million at December 31, 2007 compared to $14,000 at December 31, 2006. Two commercial construction loans accounted for $6.1 million of nonperforming loans and $1.0 million in specific reserves. For the year ended December 31, 2007, net loan charge-offs were $182,000, compared to $187,000 for the year ended December 31, 2006. While the Company has no direct exposure to sub-prime mortgages in its loan portfolio, declining economic conditions have negatively impacted the residential and commercial construction markets and contributed to the decrease in credit quality for commercial loans. As a result, the Company has increased its provision for loan losses on this portion of the loan portfolio during the second half of 2007 to reflect the increased risk of loss associated with this type of lending.

Noninterest income was $2.4 million for the quarter ended December 31, 2007 compared to $2.2 million for the quarter ended December 31, 2006. Noninterest income increased $1.1 million to $9.4 million for the year ended December 31, 2007 compared to $8.3 million for 2006. Contributing to the increase for both the quarter and year ended December 31, 2007 were increases in wealth management fees of $97,000 and $423,000, respectively, and service fees of $159,000 and $201,000, respectively. For 2007, the Company reported a net gain on the sale of securities of $106,000 compared to a net loss on the sale of securities of $284,000 for the same period in 2006. Wealth management fees were higher principally due to growth in the market value of assets under management. Increases in service fees relate to fees associated with a new deposit product and electronic banking usage. The net gain on the sale of securities in 2007 included a gain of $321,000 from the sale of marketable equity securities, offset by a net loss of $215,000 on the sale of $17.2 million of government-sponsored enterprise securities as a result of a repositioning of the Company’s investment portfolio to benefit from the steeper yield curve. The proceeds were reinvested into longer-term and higher-yielding mortgage-backed securities.

Noninterest expenses increased for both the quarter and year ended December 31, 2007 compared to the same periods in 2006, primarily due to increased operating costs associated with the expansion of branch offices and other noninterest expenses. New branch offices resulted in higher occupancy and equipment expense. Compensation costs were higher in 2007 due to increased staffing levels associated with new branch offices, offset by a reduction in performance-based compensation which included lower loan origination commissions resulting from a decline in new loan volume. An increase in the provision for credit losses for off-balance sheet commitments contributed to the increase in other noninterest expenses for 2007. Outside professional services expense was higher for 2007 due to the termination of the agreement to purchase a mortgage company during the first quarter, resulting in a charge to operations for purchase-related transaction costs associated with the termination, offset by a reduction in legal and auditing expenditures and lower consulting costs for assistance with Sarbanes Oxley compliance.

Total assets increased $33.2 million, or 4.4%, to $790.2 million at December 31, 2007 from $757.0 million at
December 31, 2006. Contributing to the increase in assets were increases of $22.4 million in available for sale securities, $13.4 million in net loans receivable, $1.3 million in premises and equipment, $1.1 million in Federal Home Loan Bank stock and $913,000 in other real estate owned, offset by decreases of $5.4 million in cash and cash equivalents, $666,000 in other assets and $296,000 in accrued interest receivable. Available for sale securities increased as a result of purchases of predominately mortgage-backed securities with longer-term maturities with funds provided by proceeds from the sale of government-sponsored enterprise securities, cash and cash equivalents and Federal Home Loan Bank advances. The increase in net loans receivable included an increase in residential and commercial mortgage loans, offset by a decrease in primarily construction loans and consumer loans. The conversion of construction loans to permanent mortgage loans, principal pay-offs and a reduction in new loan originations contributed to the decrease in construction loans. Consumer loans decreased as a result of the disposition of the indirect automobile loan portfolio during the second quarter of 2007. The primary increase in premises and equipment was attributable to fixed assets associated with the Bank’s new branch locations in East Hampton and Norwich, Connecticut. Federal Home Loan Bank stock rose in connection with an increase in Federal Home Loan Bank borrowings. Other real estate owned represents a commercial real estate property and a residential real estate property with net realizable values of $850,000 and $63,000, respectively. The decrease in other assets resulted from the write-off of purchase-related transaction costs associated with the termination of the mortgage company purchase and the settlement of other receivables, offset by an increase in prepaid expenses associated with bank insurance premiums. Accrued interest receivable decreased as a result of commercial loan payments and the reversal of interest related to nonperforming loans and the indirect automobile loan portfolio.

Total liabilities were $708.1 million at December 31, 2007 compared to $674.7 million at December 31, 2006. Deposits increased $9.7 million, or 1.8%, which included an increase in predominately NOW and money market accounts of $24.7 million and, to a lesser extent, demand deposits of $1.1 million, offset by decreases of $11.3 million in savings accounts and $4.7 million in certificates of deposits. Deposits increased as a result of branch expansion and new deposit products with competitive promotional rates. Borrowings increased from $127.4 million at December 31, 2006 to $149.9 million at December 31, 2007, resulting from an increase of $29.7 million in Federal Home Loan Bank advances, offset by the redemption of $7.2 million of debentures in April 2007.

Total stockholders’ equity decreased $299,000 from $82.4 million at December 31, 2006 to $82.1 million at December 31, 2007. The decrease in equity related to stock repurchases of 350,820 shares at a cost of $3.7 million and dividends of $733,000, offset by earnings of $1.4 million, increase in net unrealized holding gains on available for sale securities aggregating $1.5 million (net of taxes) and the amortization of equity awards of $784,000.

During the fourth quarter of 2007, the Company announced the purchase of two existing branch locations in Colchester and New London, Connecticut. The Colchester branch acquisition was completed in January 2008 and the New London acquisition is expected to close by the end of February 2008. “We are pleased with the purchase of two well-established branch offices which are expected to contribute approximately $28.0 million in deposits and $7.0 million in loans. Combined with the opening of our new branch office in East Hampton, Connecticut in August 2007 and the relocation of our Norwich, Connecticut office in January 2008, our expanding branch network provides more convenient locations to better serve the needs of our customers,” commented Rheo A. Brouillard, President and Chief Executive Officer.

The Company’s annual meeting of stockholders will be held at the Savings Institute Bank and Trust Company’s Training Center, 579 North Windham Road, North Windham, Connecticut on Wednesday, May 7, 2008 at 9:00 a.m. local time.

Savings Institute Bank & Trust Company Acquires Eastern Federal Bank Colchester Location - January 14, 2008

Willimantic, CT, January 14, 2008 – SI Financial Group, Inc. (the “Company”) (NASDAQ Global Market: SIFI), parent company of Savings Institute Bank & Trust Company (“SIBT”), has completed its acquisition of Eastern Federal Bank’s branch office located in Colchester.

Eastern Federal Bank closed its doors at 3:00 p.m. on Friday and after the successful conversion took place over the weekend, opened under the name of Savings Institute Bank & Trust Company on Monday morning.

“We are very excited about our 21st branch,” said Rheo A. Brouillard, President and Chief Executive Officer of SI Financial Group, Inc. “This location complements our existing branches in East Hampton, Hebron and Lebanon. It also allows us to better serve our significant customer base already established in Colchester.” Mr. Brouillard added that he was especially pleased that SIBT has retained the Eastern Federal staff at the Colchester location.

With an ever broadening variety of products and services plus access to 20 additional local branches, each with convenient hours and equipped with an ATM, the resources of the Savings Institute are making banking more convenient than ever before. At the customer’s convenience, a Savings Institute mortgage originator, a commercial lender and a financial advisor can be available to meet with customers to assist with their various financial needs at the new Colchester Branch.
In addition, hours are keyed on customer convenience as well. The Lobby is staying open on Thursdays until 6:00 p.m. and on Fridays until 5:00 p.m. Monday, Tuesday and Wednesday; the lobby will close at 4:00 p.m. The drive-up opens at 8:30 a.m. daily and closes at 4:00 p.m. on Monday, Tuesday and Wednesday and also stays open until 6:00 p.m. on Thursday and 5:00 p.m. on Friday. The bank is open until noon on Saturday.

Product specials tied to checking and money market accounts, opened with new money, are being offered during the opening.

Willimantic, CT (January 8, 2008) – The Savings Institute Bank & Trust Company (SIBT) has launched a new way to apply for a residential mortgage. Applicants can now apply for a first mortgage on-line.

The application site is a mere click from the corporate home page at www.savingsinstitute.com to a description of the Bank’s programs, rates and the application. The customer can request an on-line underwriting decision for a small fee of $50 or, the application can be submitted for processing in-house at no cost.

Further customer friendly features include an assortment of financial calculator tools to assist with calculating principal and interest payments, affordability calculation, prepayment scenarios, and rent vs. buy suggestions.

In announcing this significant time saving convenience, William E. Anderson, Jr., Vice President of Retail Banking said, “We are excited about offering this state-of-the-art technology to our customers and look forward to opening another channel to better serve our community’s lending needs.”

As part of an industry where products are indistinguishable from one bank to the next, SIBT is pleased to add to its portfolio of technology-based products and services. In late 2006, the Bank introduced e.SI Checking, an account that rewards account holders with 5.00% APY and refunds all ATM fees. It requires only that customers pay at least one bill a month on-line and use their debit card at least ten times during a month. It is an account that uses technology to lower costs, so the Bank can pass those savings on to the consumer as a reward.

Willimantic, Connecticut—December 19, 2007. The Board of Directors of SI Financial Group, Inc. (the “Company”) (NASDAQ Global Market: SIFI) has declared a cash dividend on the Company’s outstanding shares of common stock. The dividend of $0.04 per share will be paid on or about January 25, 2008 to stockholders of record as of the close of business on January 4, 2008.

SI Bancorp, MHC, the Company’s mutual holding company parent, intends to waive receipt of the dividend.

Willimantic, CT (November 30, 2007) – William E. Anderson, Jr. Savings Institute Bank & Trust (SIBT) Vice President of Retail Banking, announced that Barry N. Shead has joined the Bank as Manager of the Bank’s Norwich Office.

Mr. Shead has more than 13 years of experience in the banking and lending field, most recently as Vice President, Branch Manager, Norway Savings Bank in Brunswick, Maine. Prior to that, he served as a Mortgage Loan Manager for Block Mortgage Services (H&R Block) in Putnam from 2001 to 2003 and as a Business Development Officer for Cargill Bank also located in Putnam from 1994 to 2001.

In his new position, Mr. Shead will be responsible for the growth, profitability and effective management of the day-to-day operations of the Norwich Office.

Congratulations to Savings Institute Bank & Trust Company On Its 12th Consecutive 5-Star Safty Rating - November 23, 2007

November 2007: Coral Gables, FL. BauerFinancial, Inc., the nation’s leading independent bank rating and research firm, proudly announces that Savings Institute Bank & Trust, Willimantic, Connecticut has earned another 5-Star Superior rating, our highest award, for the 12th consecutive quarter. The 5-Star rating is based on the financial condition of the bank and indicates that Savings Institute Bank & Trust is one of the strongest banks in the country.

“Savings Institute Bank & Trust’s ability to earn our 5-Star Superior rating time and again speaks to its strength, stability and longevity,” said Karen L. Dorway, president of the research firm. “In a banking environment that is struggling with loan quality and delinquencies, it is an honor and a pleasure to recognize Savings Institute Bank & Trust and the values it represents.”

SI Financial Group, Inc. (NASDAQ Global Market:SIFI) is the parent company of Savings Institute Bank & Trust Company. Savings Institute Bank & Trust was established in 1842 and has been committed to the needs of its neighbors and friends in Eastern Connecticut for 165 years. Currently it operates through 20 conveniently located offices in Hartford, New London, Tolland and Windham counties. Savings Institute Bank & Trust can also be found on the internet at www.savingsinstitute.com.

Savings Institute Bank & Trust Company Acquires New London Branch of the Bank of Southern Connecticut - November 14, 2007

Willimantic, CT, November 14, 2007 – SI Financial Group, Inc. (the “Company”) (NASDAQ Global Market: SIFI), parent company of Savings Institute Bank & Trust Company (“SIBT”), today announced that it has reached an agreement with the Bank of Southern Connecticut, headquartered in New Haven, Connecticut, to acquire that Bank’s 15 Masonic Street, New London branch office and related deposits.

"We are very excited about the acquisition of this new branch,” said Rheo A. Brouillard, President and Chief Executive Officer of SI Financial Group, Inc. “This location will complement our existing branches in southeastern Connecticut, including Stonington, Groton, East Lyme and Gales Ferry. It will also allow us to better serve a significant customer base that we already have in New London.” Mr. Brouillard added that he was especially pleased that SIBT will be allowed to retain the Southern Connecticut staff.

Echoing Mr. Brouillard’s comments, The Bank of Southern Connecticut’s Chief Operating Officer, John Howland said, “We appreciate the loyalty and trust of our New London customers. We are pleased to make this transfer to SIBT, a community bank with the same philosophy of providing high quality customer service. The sale will allow The Bank of Southern Connecticut the opportunity to focus more in our primary market in the New Haven area.”
The transaction is anticipated to be completed during the first quarter of 2008, subject to regulatory approval.

SI Financial Group, Inc. is the holding company for Savings Institute Bank & Trust Company. Established in 1842, the Savings Institute Bank & Trust Company is a community-oriented financial services institution headquartered in Willimantic, Connecticut. Through its twenty offices, the Bank offers a full-range of financial services to individuals, businesses and municipalities within its market area.

SI Financial Group, INC. Reports Results for the Three and Nine Months Ended - September 30, 2007

Willimantic, Connecticut—October 24, 2007. SI Financial Group, Inc. (the “Company”) (NASDAQ Global Market: SIFI), the holding company of Savings Institute Bank and Trust Company (the “Bank”), reported net income of $128,000, or $0.01 basic and diluted earnings per common share, for the quarter ended September 30, 2007 versus net income of $557,000, or $0.05 basic and diluted earnings per common share, for the quarter ended September 30, 2006. Net income for the nine months ended September 30, 2007 was $954,000, or $0.08 basic and diluted earnings per common share, compared to $2.1 million, or $0.18 basic and diluted earnings per common share, for the nine months ended September 30, 2006. Lower net income for the three and nine months ended September 30, 2007 resulted from an increase in noninterest expenses, a decline in net interest and dividend income (for the nine-month period) and an increase in the provision for loan losses, offset by an increase in noninterest income and a decrease in the provision for income taxes. During the quarter ended September 30, 2007, the Company provided $520,000 in the provision for loan losses to recognize the general slow down in the construction and housing markets and recognized a $215,000 loss on the sale of investment securities, in order to reinvest the proceeds into longer-term and higher-yielding securities.

Net interest and dividend income remained unchanged at $5.5 million for the three months ended September 30, 2007 and 2006 and decreased 6.0% to $16.1 million for the nine months ended
September 30, 2007 from $17.2 million for the nine months ended September 30, 2006. Lower net interest and dividend income for the nine months ended September 30, 2007 resulted from a higher cost of funds principally due to interest rates paid on deposit accounts and greater volume of interest-bearing liabilities, offset by an increase in the average balance of loans.

The provision for loan losses increased $379,000 and $194,000 for the three and nine months ended September 30, 2007, respectively. The ratio of the allowance for loan losses to total loans increased from 0.73% at September 30, 2006 to 0.84% at September 30, 2007. At September 30, 2007, nonperforming loans totaled $3.4 million, consisting of $2.4 million in commercial construction loans and $721,000 in commercial business loans, compared to $903,000 at September 30, 2006. For the three months ended September 30, 2007, net loan recoveries were $1,000, compared to net loan charge-offs of $171,000 for the nine months ended September 30, 2007. Net loan charge-offs were $29,000 and $30,000 for the three and nine months ended September 30, 2006, respectively. While the Company has no direct exposure to sub-prime mortgages, the current real estate environment has negatively impacted the market for residential and condominium construction and development lending. As a result, the Company has increased its provision for loan losses on this portion of the loan portfolio during the third quarter of 2007.

Noninterest income was $2.2 million for the quarter ended September 30, 2007 compared to $2.0 million for the quarter ended September 30, 2006. Noninterest income was $6.9 million for the first nine months of 2007 compared to $6.1 million for the same period in 2006. Contributing to the increase in noninterest income for the three and nine months ended September 30, 2007, were increases in wealth management fees of $104,000 and $326,000, respectively, and service fees of $84,000 and $42,000, respectively. Wealth management fees were higher principally due to growth in the market value of assets under administration. Increases in service fees for the three and nine months ended
September 30, 2007 relate to fees associated with a new deposit product and electronic banking usage. The quarter ended September 30, 2007 included a net loss of $215,000 on the sale of $17.2 million of government-sponsored enterprise securities, as a result of a repositioning of the Company’s investment portfolio to benefit from the steeper yield curve. The proceeds were reinvested into longer-term and higher-yielding mortgage-backed securities. For the nine months ended September 30, 2007, the increase of $390,000 on the sale of available for sale securities included a gain of $321,000 from the sale of marketable equity securities during the first quarter.

Noninterest expenses increased for both the three and nine months ended September 30, 2007 compared to the same periods in 2006, primarily due to increased operating costs associated with the expansion of branch offices and other noninterest expenses. New branch offices resulted in higher occupancy and equipment expense relative to additional operating lease payments, depreciation expense and other occupancy-related expenses. Compensation costs were higher in 2007 due to increased staffing levels associated with new branch offices, offset by a reduction in performance-based compensation which included lower loan origination commissions resulting from a decline in new loan volume. An increase in the provision for credit losses for off-balance sheet commitments contributed to the increase in other noninterest expenses for 2007. Outside professional services expense was higher for the nine months ended September 30, 2007 due to the termination of the agreement to purchase a mortgage company during the first quarter, resulting in a charge to operations for purchase-related transaction costs associated with the termination, offset by a reduction in auditing expenditures.

Total assets grew $8.4 million, or 1.1%, to $765.5 million at September 30, 2007 from $757.0 million at
December 31, 2006. Contributing to the increase in assets were increases of $10.4 million in net loans receivable, $6.9 million in available for sale securities, $850,000 in other real estate owned and $825,000 in premises and equipment, offset by decreases of $10.2 million in cash and cash equivalents, $603,000 in other assets and $374,000 in accrued interest receivable. The increase in net loans receivable included an increase in residential and commercial mortgage loans, offset by a decrease in consumer loans resulting from the disposition of the indirect automobile loan portfolio during the second quarter of 2007. Available for sale securities increased as a result of purchases of predominately mortgage-backed securities with longer-term maturities with proceeds from the sale of government-sponsored enterprise securities. Other real estate owned represents a commercial real estate property with a net realizable value of $850,000. The primary increase in premises and equipment was attributable to fixed assets associated with the Bank’s new branch in East Hampton, Connecticut. The decrease in other assets resulted from the write-off of purchase-related transaction costs associated with the termination of the mortgage company purchase and the settlement of other receivables, offset by an increase in prepaid expenses associated with bank insurance premiums. Accrued interest receivable decreased as a result of commercial loan payments and the reversal of interest related to nonperforming loans and the indirect automobile loan portfolio.

Total liabilities were $683.1 million at September 30, 2007 compared to $674.7 million at December 31, 2006. Deposits increased $6.5 million, or 1.2%, which included an increase in predominately NOW and money market and certificate of deposit accounts of $10.6 million and $4.6 million, respectively, offset by a decrease of $6.8 million in savings accounts and $1.9 million in demand deposits during 2007. Deposits increased as a result of branch expansion and attractive promotional rates. Borrowings increased from $127.4 million at December 31, 2006 to $131.0 million at September 30, 2007, resulting from an increase of $10.8 million in Federal Home Loan Bank advances, offset by the redemption of $7.2 million of debentures in April 2007 with a portion of the proceeds from the $8.0 million trust preferred securities offering in September 2006.

Total stockholders’ equity remained at $82.4 million as of September 30, 2007, reflecting earnings of $954,000, a decrease in net unrealized holding losses on available for sale securities aggregating $663,000 (net of taxes) and the amortization of equity awards of $585,000, offset by stock repurchases of 185,820 shares at a cost of $2.0 million and dividends of $558,000.

Earlier this month, the Company announced the purchase of an existing branch in Colchester, Connecticut, which is expected to close by the end of 2007. “This purchase will increase deposit levels by approximately $20.0 million. Combined with the opening of our new branch office in East Hampton, Connecticut in August 2007, the Colchester branch will complement our existing offices in Hebron and Lebanon, Connecticut and enable us to better serve our customers,” commented Rheo A. Brouillard, President and Chief Executive Officer.

As previously announced, the Company declared a cash dividend of $0.04 per outstanding common share on September 19, 2007, which will be paid on October 26, 2007 to shareholders of record as of October 5, 2007. SI Bancorp, MHC, the Company’s mutual holding company parent, waived receipt of its dividend.

SI Financial Group, Inc. is the holding company for Savings Institute Bank and Trust Company. Established in 1842, the Savings Institute Bank and Trust Company is a community-oriented financial institution headquartered in Willimantic, Connecticut. Through its twenty offices, the Bank offers a full-range of financial services to individuals, businesses and municipalities within its market area.