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Chicopee Bancorp, Inc. Reports First Quarter Results and Announces Quarterly Cash Dividend of $0.05 Per Share

Chicopee Bancorp, Inc. Reports First Quarter Results and Announces Quarterly
Cash Dividend of $0.05 Per Share

CHICOPEE, Mass., April 25, 2013 (GLOBE NEWSWIRE) -- Chicopee Bancorp, Inc.
(the "Company") (Nasdaq:CBNK), the holding company for Chicopee Savings Bank
(the "Bank"), announced the unaudited results of operations for the three
months ended March 31, 2013.

The Company also announced on April 25, 2013, that its Board of Directors
declared its second quarterly cash dividend of $0.05 per share. Stockholders
of record on May 6, 2013 will receive the cash dividend on or about June 7,
2013.

The Company reported pre-tax income of $1.0 million for the three months ended
March 31, 2013, compared to $446,000 for the three months ended March 31,
2012. Net income for the three months ended March 31, 2013 was $797,000, or
$0.16 diluted earnings per share, as compared to net income of $397,000, or
$0.08 diluted earnings per share, for the same period in 2012. The $400,000,
or 100.8%, increase in net income was a result of an increase in net interest
income of $142,000, or 3.1%, a decrease in the provision for loan losses of
$77,000, an increase in non-interest income of $161,000, or 23.6%, and a
decrease in non-interest expense of $196,000, or 4.1%. These improvements were
offset by an increase in income tax expense of $176,000 from $49,000 for the
three months ended March 31, 2012 to $225,000 for the three months ended March
31, 2013.

Net interest income increased $142,000, or 3.1%, from $4.6 million for the
three months ended March 31, 2012 to $4.7 million for the three months ended
March 31, 2013. The increase in net interest income was primarily due to the
decrease in interest expense of $366,000, or 24.1%, offset by the decrease of
$224,000, or 3.7%, in interest income. Interest expense on deposits decreased
$188,000, or 16.4%, from $1.1 million for the three months ended March 31,
2012 to $958,000 for the three months ended March 31, 2013. Interest expense
on Federal Home Loan Bank ("FHLB") advances decreased $176,000, or 48.2%, over
the same period.

The net interest margin increased 23 basis points from 3.46%, for the three
months ended March 31, 2012, to 3.69% for the three months ended March 31,
2013. The net interest rate spread increased 25 basis points from 3.18% at
March 31, 2012 to 3.43% at March 31, 2013. The average cost of funds decreased
26 basis points due to the continuation of low market interest rates, which
allowed the Company to renew or replace maturing time deposits at lower costs.
The average balance of demand deposits, an interest free source of funds,
increased $6.1 million, or 9.3%, for the three months ended March 31, 2013
compared to the three months ended March 31, 2012.

The provision for loan losses decreased $77,000, for the three months ended
March 31, 2013 compared to the three months ended March 31, 2012. The
allowance for loan losses as a percentage of total loans decreased from 0.98%
at March 31, 2012 to 0.94% at March 31, 2013. Non-performing loans increased
$147,000, or 3.9%, from $3.7 million, or 0.83% of total loans, at March 31,
2012, to $3.9 million, or 0.85% of total loans, at March 31, 2013.

The $161,000, or 23.6%, increase in non-interest income for the three months
ended March 31, 2013 was due to an increase in income from loan sales and
servicing, net of $111,000, or 72.5%, a decrease of $68,000, or 63.0%, in
losses on the sale of other real estate owned ("OREO") and an increase of
$24,000 in other non-interest income. These increases were partially offset by
the decrease in income from customer service fees and commissions of $38,000,
or 7.0%.

Non-interest expense decreased $196,000, or 4.1%, for the three months ended
March 31, 2013 compared to the three months ended March 31, 2012. The 4.1%
decrease was a result of the $238,000, or 8.6%, decrease in salaries and
benefits due to employee benefit expenses related to the initial public
offering being fully expensed in the third quarter of 2012. Stationery,
supplies and postage decreased $32,000, or 29.6%, FDIC insurance expense
decreased $26,000, or 27.7%, and other non-interest expense decreased $25,000,
or 3.7%. These decreases were offset by an increase in professional fees of
$52,000, or 31.5%, an increase in data processing of $50,000, or 19.1%, and an
increase in occupancy expense of $30,000, or 7.6%.

The efficiency ratio improved from 91.4% for the three months ended March 31,
2012, to 83.0% for the three months ended March 31, 2013. Management remains
committed to our expense reduction initiatives and to continue to evaluate
strategies to improve efficiency.

Average interest-earning assets for the three months ended March 31, 2013
decreased $13.5 million, or 2.4%, from the same period in 2012. The $13.5
million decrease in average interest-earning assets was due to the $10.5
million, or 14.1%, decrease in average investments and $16.2 million, or
40.0%, decrease in average other interest-earning assets. These decreases were
offset by an increase in average net loans of $13.3 million, or 3.0%. We
continue to manage the balance sheet by deploying the Bank's high cash
position into higher yielding assets. The tax effected yield on assets
decreased one basis point from 4.54% for the three months ended March 31, 2012
to 4.53% for the three months ended March 31, 2013. The tax effected
investment yield increased from 3.59% for the three months ended March 31,
2012 to 4.37% for the three months ended March 31, 2013, offset by the
decrease in the loan yield of 30 basis points over the same period.
Interest-bearing liabilities decreased $22.2 million, or 5.0%, due to the
$25.7 million, or 44.7%, decrease in average FHLB advances, offset by an
increase of $5.1 million, or 1.3%, in average interest-bearing deposits. The
average cost of funds decreased 26 basis points and was driven by the 28 basis
point decrease in the cost of interest-bearing borrowings and a 21 basis point
decrease in the cost of interest-bearing deposits.

Total assets decreased $13.7 million, or 2.3%, from $600.0 million at December
31, 2012 to $586.3 million at March 31, 2013. The decrease in total assets was
primarily due to the decrease in net loans of $8.6 million, or 1.8%, and the
decrease in cash and cash equivalents of $7.4 million, or 18.8%, partially
offset by the increase in loans held for sale of $2.2 million.

The $8.6 million, or 1.8%, decrease in net loans was due to the decrease of
$6.8 million, or 5.7%, in one- to four-family real estate loans and a decrease
of $1.8 million, or 1.0%, in commercial real estate loans. The decrease in
one- to four-family residential real estate loans was primarily due to
prepayments and refinancing activity attributed to the historically low
interest rates. In accordance with the Company's asset/liability management
strategy and in an effort to reduce interest rate risk, the Company continues
to sell fixed rate, low coupon residential real estate loans to the secondary
market. In the first quarter of 2013, the Company sold $12.0 million in low
coupon residential real estate loans and currently services $93.5 million in
loans sold to the secondary market. In order to service our customers, the
servicing rights will continue to be retained on all loans written and sold in
the secondary market.

The allowance for loan losses of $4.3 million, or 0.94% of total loans,
decreased $39,000, or 0.9%, from December 31, 2012. The allowance for loan
losses as a percentage of non-performing loans was 111.2% at March 31, 2013
and 109.5% at December 31, 2012. Management reviews the level of the allowance
for loan losses on a monthly basis and establishes the provision for loan
losses based on loan volume, types of lending, delinquency levels, loss
experience, estimated collateral values, current economic conditions and other
related factors. Management believes that a 0.94% allowance for loan losses to
total loans is sufficient to cover all inherent losses in the portfolio that
are both probable and reasonable to estimate.

Asset quality continues to be the top focus for management and we continue to
work aggressively to resolve problem loans as they arise. Non-performing
assets decreased 4.1%, from $4.6 million, or 0.76% of total assets, at
December 31, 2012 to $4.4 million, or 0.75% of total assets at March 31, 2013.
Non-performing assets at March 31, 2013, included $3.9 million of
non-performing loans and $485,000 of OREO. The nonperforming loans as a
percentage of total loans ratio of 0.85% remained unchanged at March 31, 2013
compared to December 31, 2012. Of the $3.9 million in non-performing loans,
$2.5 million, or 63.8%, are one-to four-family residential loans, $785,000, or
20.2%, are commercial real estate loans, $139,000, or 3.6%, are commercial and
industrial loans, $57,000, or 1.5%, are consumer loans, and $96,000, or 3.0%,
are home equity loans. For the three months ended March 31, 2013, the Company
reported net recoveries of $31,000 compared to net charge-offs of $135,000 for
the same period in 2012.

The held-to-maturity investment portfolio increased $328,000, or 0.6%, from
$59.6 million at December 31, 2012 to $59.9 million at March 31, 2013. The
available-for-sale investment portfolio increased $13,000, or 2.1%, from
$621,000, at December 31, 2012 to $634,000, at March 31, 2013.

Total deposits decreased $15.1 million, or 3.2%, from $466.2 million at
December 31, 2012 to $451.1 million at March 31, 2013. Core deposits decreased
$14.0 million, or 4.9%, from $288.7 million at December 31, 2012 to $274.7
million at March 31, 2013. Demand deposits decreased $3.0 million, or 4.0%, to
$72.4 million, money market accounts decreased $14.7 million, or 11.5%, to
$113.1 million, NOW accounts increased $2.7 million, or 7.4%, to $39.4
million, and savings accounts increased $1.0 million, or 1.9%, to $49.8
million. Certificates of deposit decreased $1.1 million, or 0.6%, from $177.4
million at December 31, 2012 to $176.4 million at March 31, 2013. The decrease
of 4.9% in core deposits was mostly due to fluctuations in commercial accounts
related to business activity. We continue to focus on allowing high cost
deposits to mature and be replaced with low cost relationship based core
deposits.

FHLB advances decreased $2.3 million, or 7.0%, from $33.3 million at December
31, 2012 to $31.0 million at March 31, 2013. Repurchase agreements increased
$3.0 million, or 30.3%, from $9.8 million at December 31, 2012 to $12.7
million at March 31, 2013.

Stockholders' equity was $90.7 million, or 15.5% of total assets, at March 31,
2013 compared to $90.0 million, or 15.0% of total assets, at December 31,
2012. The Company's stockholders' equity increased primarily as a result of
$797,000 in net income, an increase of $75,000, or 1.9%, in stock-based
compensation and an increase of $75,000, or 2.5%, in additional
paid-in-capital, partially offset by the $271,000 cash dividend paid on March
8, 2013.

At March 31, 2013, the Company's balance sheet continues to be strong and
regulatory capital ratios continue to exceed the levels required to be
considered "well-capitalized" under federal banking regulations.

Chicopee Bancorp, Inc. continues to show steady improvement in core earnings
on a quarter-to-quarter basis despite the prolonged low interest rate
environment. By staying focused on our strategic plan, we believe we are
making progress in improving the long-term profitability and enhancing the
franchise value of the Company.

During these challenging times, "smart" balance sheet growth is an important
element to our continued success. It has been more important to grow the
quality of earnings rather than aggressively growing the balance sheet with
low earning assets. During the three months ended March 31, 2013, the Company
sold $12.0 million in lower coupon fixed rate residential loans to the
secondary market which resulted in a decrease of $8.6 million, or 1.8%, in
total loans. We will continue to manage the balance sheet by deploying the
Company's high cash position into higher yielding quality loans.

Despite the low interest rate environment, net interest income, the primary
source of revenues for the Company, increased $142,000, or 3.1%, for the three
months ended March 31, 2013 compared to the same period in 2012. This was
accomplished by managing the cost of funds to offset the continued decrease in
the asset yield. The net interest margin increased 23 basis points from 3.46%
at March 31, 2012 to 3.69% at March 31, 2013 and the net interest spread
increased 25 basis points over the same period.

Asset quality remains favorable at March 31, 2013 as reflected in the ratio of
non-performing loans as a percentage of total loans of 0.85% and
non-performing assets as a percentage of total assets of 0.75%. Total
delinquency as a percentage of total loans was 1.3% at March 31, 2013 compared
to 1.5% at December 31, 2012, indicating that management is effectively
managing asset quality.

We continue to take steps to protect our strong capital position, preserve
liquidity and improve the net interest margin in a historically low interest
rate environment. We believe that Chicopee Savings Bank is well-positioned and
well-capitalized for a strong performance as the economy continues to improve.

We have managed the Company through one of the most challenging economic
environments by executing our business strategy. We will continue to stay the
course and continue to identify opportunities in the marketplace. We remain
confident in our strategic plan to build long-term franchise value for our
stockholders as we continue to increase the Company's tangible book value
which has increased $0.13, or 0.8%, from $16.57 at December 31, 2012 to $16.70
at March 31, 2013.

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, seven branch offices located in Chicopee, Ludlow, West Springfield,
South Hadley, and Ware in Western Massachusetts, and lending and operations
center. Chicopee Savings Bank offers customers the latest and most technically
advanced internet banking, including on-line banking and bill payment
services. The Bank's deposits are insured by the Federal Deposit Insurance
Corporation and the Depositors Insurance Fund of Massachusetts. For more
information regarding the Bank's products and services, please visit our web
site at www.chicopeesavings.com.

This news release contains 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, except as required by law.

CHICOPEE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands)
ASSETS                                                March 31,   December 31,
                                                      2013        2012
                                                     (Unaudited) 
                                                                
Cash and due from banks                               $9,138    $11,073
Federal funds sold                                    2,197      3,372
Interest-bearing deposits with the Federal Reserve    20,833     25,163
Bank of Boston
Total cash and cash equivalents                       32,168     39,608
                                                                
Securities available-for-sale, at fair value          634         621
Securities held-to-maturity, at cost (fair value
$66,647 and $67,108 at March 31, 2013 and December    59,896      59,568
31, 2012, respectively)
Federal Home Loan Bank stock, at cost                3,914       4,277
Loans receivable, net of allowance for loan losses
($4,325 at March 31, 2013 and $4,364 at December 31,  456,644     465,211
2012)
Loans held for sale                                   2,224      0
Other real estate owned                               485         572
Mortgage servicing rights                             425         368
Bank owned life insurance                             13,899      13,807
Premises and equipment, net                          9,357       9,459
Accrued interest receivable                           1,695       1,567
Deferred income tax asset                             3,248       3,252
FDIC prepaid insurance                                476         467
Other assets                                         1,207      1,205
Total assets                                          $586,272  $599,982
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
                                                                
Deposits                                                        
Demand deposits                                       $72,371   $75,407
NOW accounts                                          39,431     36,711
Savings accounts                                      49,833     48,882
Money market deposit accounts                         113,070    127,730
Certificates of deposit                               176,377    177,447
Total deposits                                        451,082     466,177
                                                                
Securities sold under agreements to repurchase        12,721     9,763
Advances from Federal Home Loan Bank                  31,013     33,332
Accrued expenses and other liabilities               803        741
Total liabilities                                     495,619    510,013
                                                                
Stockholders' equity                                             
Common stock (no par value, 20,000,000 shares
authorized, 7,439,368 shares issued;5,428,585        72,479     72,479
outstanding at March 31, 2013 and December 31, 2012)
Treasury stock, at cost (2,010,783 shares at March    (26,567)   (26,567)
31, 2013 and December 31, 2012)
Additional paid-in capital                            3,119      3,044
Unearned compensation (restricted stock awards)       (17)       (18)
Unearned compensation (Employee Stock Ownership Plan) (3,794)    (3,868)
Retained earnings                                     45,399     44,873
Accumulated other comprehensive income                34         26
Total stockholders' equity                            90,653     89,969
Total liabilities and stockholders' equity            $586,272  $599,982
                                                                
See accompanying notes to unaudited consolidated financial statements.


CHICOPEE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except for Number of Shares and Per Share Amounts)
(Unaudited)
                                                    Three Months Ended
                                                     March 31,
                                                    2013       2012
Interest and dividend income:                                  
Loans, including fees                                $5,456   $5,685
Interest and dividends on securities                 424       414
Other interest-earning assets                        14        19
Total interest and dividend income                   5,894     6,118
                                                              
Interest expense:                                              
Deposits                                            958       1,146
Securities sold under agreements to repurchase       3         5
Other borrowed funds                                 189       365
Total interest expense                               1,150     1,516
                                                              
Net interest income                                  4,744     4,602
Provision for loan losses                           (70)      7
Net interest income, after provision for loan losses 4,814     4,595
                                                              
Non-interest income:                                           
Service charges, fee and commissions                 502       540
Loan sales and servicing, net                        264       153
Loss on sale of other real estate owned              (40)      (108)
Income from bank owned life insurance                92        96
Other non-interest income                           24        --
Total non-interest income                            842       681
                                                              
Non-interest expenses:                                         
Salaries and employee benefits                      2,533     2,771
Occupancy expenses                                   425       395
Furniture and equipment                              204       209
FDIC insurance assessment                            68        94
Data processing                                      312       262
Professional fees                                    217       165
Advertising                                          147       149
Stationery, supplies and postage                     76        108
Other non-interest expense                           652       677
Total non-interest expenses                          4,634     4,830
                                                              
Income before income tax expense                     1,022     446
Income tax expense                                   225       49
Net income                                           $797     $397
                                                              
Earnings per share:                                            
Basic                                                $0.16    $0.08
Diluted                                              $0.16    $0.08
Adjusted weighted average common shares outstanding            
Basic                                                5,040,230 5,070,119
Diluted                                              5,040,676 5,119,446
                                                              
See accompanying notes to unaudited consolidated financial statements.


CHICOPEE BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND RATIOS
(Dollars in thousands, except per share amounts)
(Unaudited)
                                                        
                                          
                                          Three Months Ended
                                           March 31,
                                          2013           2012
                                                        
Operating Results:                                       
Net interest income                        $4,744       $4,602
Loan loss provision                        (70)          7
Non-interest income                        842           681
Non-interest expense                       4,634         4,830
Net income                                 797           397
                                                        
Performance Ratios:                                      
Return on average assets                   0.55%          0.26%
Return on average equity                   3.56%          1.76%
Interest rate spread                       3.43%          3.18%
Net interest margin (1)                    3.69%          3.46%
Non-interest income to average assets      0.58%          0.45%
Non-interest expense to average assets     3.20%          3.22%
GAAP Efficiency Ratio (2)                  82.96%         91.43%
Non-GAAP efficiency ratio (3)              78.65%         85.59%
Average Equity to Average Assets           15.44%         15.01%
                                                        
Per Share Data:                                          
Diluted earnings per share                 $0.16        $0.08
Cash Dividend per share                    $0.05        $--
Dividend yield                             1.20%          0.00%
Stock price at period end                  $16.90       $14.50
Tangible Book value per share              $16.70       $16.00
                                                        
                                                        
                                          At March 31,   At December 31,
                                          2013           2012
                                                        
Asset Quality Ratios:                                    
Allowance for loan losses as a percent of  0.94%          0.93%
total loans
Allowance for loan losses as a percent of  111.21%        109.50%
total non-performing loans
Net (recoveries)/charge-offs to average    -0.01%         0.14%
loans
Non-performing loans as a percent of total 0.85%          0.85%
loans
Non-performing assets as a percent of      0.75%          0.76%
total assets
                                                        
Other Data:                                              
                                                        
Number of Offices                          9             9
                                                        
(1) The net interest margin represents tax equivalent net interest income   
as a percentage of average interest-earning assets.
                                                        
(2) GAAP Efficiency Ratio represents non-interest expenses divided by the
sum of net interest income (before the provision for loan losses) plus      
total non-interest income.
                                                        
(3) The Non-GAAP efficiency ratio represents the ratio of non-interest
expenses divided by the sum of tax equivalent net interest income and       
non-interest income.
                                                        
For the dates indicated the ratio is calculated as follows (in            
thousands):
                                          
                                          Three Months Ended
                                           March 31,
                                          2013           2012
                                                        
Non-interest expenses                      $4,634       $4,830
Tax equivalent net interest income         5,010         4,854
Non-interest income                        842           681
Add back:                                                
Loss on sale of other real estate owned    40            108
Total income included in calculation       5,892         5,643
Non-interest expenses divided by total     78.65%         85.59%
income
                                                        

CONTACT: For More Information Contact:
        
         Guida R. Sajdak
         Senior Vice President, Chief Financial Officer and Treasurer
         (413) 594-6692

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