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SECURITIES AND EXCHANGE COMMISSION
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2009 | Commission File No. 001-34096 |
NEW YORK | 11-2934195 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) | |
2200 MONTAUK HIGHWAY, BRIDGEHAMPTON, NEW YORK | 11932 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered | |
Common Stock, Par Value of $0.01 Per Share | The Nasdaq Stock Market, LLC |
None
Large accelerated filero | Accelerated filerþ | Non-accelerated filero | Smaller reporting companyo |
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Exhibit 23 | ||||||||
Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32.1 |
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Stock Prices | Dividends | |||||||||||
High | Low | Declared | ||||||||||
By Quarter 2009 | ||||||||||||
First | $ | 20.97 | $ | 17.50 | $ | 0.23 | ||||||
Second | $ | 27.48 | $ | 19.25 | $ | 0.23 | ||||||
Third | $ | 29.25 | $ | 24.33 | $ | 0.23 | ||||||
Fourth | $ | 25.59 | $ | 20.05 | $ | 0.23 |
Stock Prices | Dividends | |||||||||||
High | Low | Declared | ||||||||||
By Quarter 2008 | ||||||||||||
First | $ | 24.00 | $ | 20.24 | $ | 0.23 | ||||||
Second | $ | 22.75 | $ | 17.75 | $ | 0.23 | ||||||
Third | $ | 22.50 | $ | 19.00 | $ | 0.23 | ||||||
Fourth | $ | 21.75 | $ | 17.78 | $ | 0.23 |
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Period Ending | ||||||||||||||||||||||||
Index | 12/31/04 | 12/31/05 | 12/31/06 | 12/31/07 | 12/31/08 | 12/31/09 | ||||||||||||||||||
Bridge Bancorp, Inc. | 100.00 | 83.47 | 84.13 | 88.46 | 70.50 | 95.27 | ||||||||||||||||||
NASDAQ Composite | 100.00 | 101.37 | 111.03 | 121.92 | 72.49 | 104.31 | ||||||||||||||||||
SNL Bank $500M-$1B | 100.00 | 104.29 | 118.61 | 95.04 | 60.90 | 58.00 |
Maximum Number (or | ||||||||||||||||
Total Number of | Approximate Dollar | |||||||||||||||
Total Number | Average | Shares Purchased as | Value) of Shares that | |||||||||||||
of Shares | Price | Part of Publicly | May Yet Be Purchased | |||||||||||||
Purchased in | Paid per | Announced Plans or | Under the Plans or | |||||||||||||
Period | Month | Share | Programs-2006(1) | Programs | ||||||||||||
October 2009 | — | — | 141,959 | 167,041 | ||||||||||||
November 2009 | — | — | 141,959 | 167,041 | ||||||||||||
December 2009 | — | — | 141,959 | 167,041 |
(1) | The Board of Directors approved a stock repurchase program on March 27, 2006. | |
• | The Board of Directors approved repurchase of shares up to 309,000 shares. | |
• | There is no expiration date for the stock repurchase plan. | |
• | There is no stock repurchase plan that has expired or that has been terminated during the period ended December 31, 2009. |
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(In thousands, except per share data and financial ratios)
December 31, | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
Selected Financial Data: | ||||||||||||||||||||
Securities available for sale | $ | 306,112 | $ | 310,695 | $ | 187,384 | $ | 202,590 | $ | 182,801 | ||||||||||
Securities, restricted | 1,205 | 3,800 | 2,387 | 878 | 1,377 | |||||||||||||||
Securities held to maturity | 77,424 | 43,444 | 5,836 | 9,444 | 10,012 | |||||||||||||||
Total loans | 448,038 | 429,683 | 375,236 | 325,997 | 302,264 | |||||||||||||||
Total assets | 897,257 | 839,059 | 607,424 | 573,644 | 533,444 | |||||||||||||||
Total deposits | 793,538 | 659,085 | 508,909 | 504,412 | 468,025 | |||||||||||||||
Total stockholders’ equity | 61,855 | 56,139 | 51,109 | 45,539 | 46,651 | |||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
Selected Operating Data: | ||||||||||||||||||||
Total interest income | $ | 43,368 | $ | 39,620 | $ | 35,864 | $ | 32,030 | $ | 28,713 | ||||||||||
Total interest expense | 7,815 | 9,489 | 10,437 | 8,337 | 4,319 | |||||||||||||||
Net interest income | 35,553 | 30,131 | 25,427 | 23,693 | 24,394 | |||||||||||||||
Provision for loan losses | 4,150 | 2,000 | 600 | 85 | 300 | |||||||||||||||
Net interest income after provision for loan losses | 31,403 | 28,131 | 24,827 | 23,608 | 24,094 | |||||||||||||||
Total non interest income | 6,174 | 6,064 | 5,678 | 4,413 | 5,105 | |||||||||||||||
Total non interest expense | 24,765 | 21,157 | 18,168 | 16,002 | 14,647 | |||||||||||||||
Income before income taxes | 12,812 | 13,038 | 12,337 | 12,019 | 14,552 | |||||||||||||||
Income tax expense | 4,049 | 4,288 | 4,043 | 3,851 | 4,929 | |||||||||||||||
Net income | $ | 8,763 | $ | 8,750 | $ | 8,294 | $ | 8,168 | $ | 9,623 | ||||||||||
December 31, | ||||||||||||||||||||
Selected Financial Ratios and Other Data: | ||||||||||||||||||||
Return on average equity | 15.58 | % | 16.29 | % | 17.47 | % | 17.68 | % | 20.15 | % | ||||||||||
Return on average assets | 1.06 | % | 1.24 | % | 1.38 | % | 1.49 | % | 1.76 | % | ||||||||||
Average equity to average assets | 6.80 | % | 7.62 | % | 7.91 | % | 8.41 | % | 8.71 | % | ||||||||||
Dividend payout ratio | 65.43 | % | 64.74 | % | 67.67 | % | 68.98 | % | 58.88 | % | ||||||||||
Diluted earnings per share | $ | 1.43 | $ | 1.43 | $ | 1.36 | $ | 1.33 | $ | 1.53 | ||||||||||
Basic earnings per share | $ | 1.44 | $ | 1.44 | $ | 1.37 | $ | 1.33 | $ | 1.54 | ||||||||||
Cash dividends declared per common share | $ | 0.92 | $ | 0.92 | $ | 0.92 | $ | 0.92 | $ | 0.91 |
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• | Returns on average equity and average assets of 15.58% and 1.06%, respectively for 2009; |
• | Net income of $2.2 million or $0.36 per diluted share for the fourth quarter 2009 and $8.8 million or $1.43 per diluted share for 2009, unchanged from prior year levels; |
• | Net interest income increased $5.4 million from 2008 to 2009 with a net interest margin of 4.69% for 2009, and 4.70% for 2008; |
• | Total assets of $897.3 million at December 31, 2009, an increase of 6.9% over the same date last year; |
• | Total loans of $448.0 million at December 31, 2009, an increase of 4.3% from December 31, 2008; |
• | Total investments of $384.7 million at December 31, 2009, an increase of 7.5% over December 31, 2008; |
• | Total deposits of $793.5 million at December 31, 2009, an increase of $134.5 million or 20.4% over the same date last year; |
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• | Enhanced capital with the private placement of $16.0 million in Convertible Trust Preferred Securities. |
• | The Company’s capital levels remain strong with a Tier 1 Capital to Quarterly Average Assets ratio of 8.6%. The Company is positioned well for future growth. Stockholders’ equity totaled $61.9 million at December 31, 2009 as compared $56.1 million at December 31, 2008; |
• | Declaration of cash dividends totaling $0.92 for 2009; |
• | Launched a Dividend Reinvestment Plan during 2009; |
• | Named for the second straight year as an “All Star” bank by Sandler O’Neill & Partners and recognized as a top community bank by the ICBA; |
• | The addition of the Company’s common stock to the Russell 3000 stock market index. |
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Years Ended December 31, | 2009 | 2008 | 2007 | |||||||||||||||||||||||||||||||||
(In thousands) | Average | Average | Average | |||||||||||||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||||||||||
Balance | Interest | Cost | Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||||||||||||||
Loans, net (including loan fee income) | $ | 435,694 | $ | 29,167 | 6.69 | % | $ | 397,560 | $ | 28,040 | 7.05 | % | $ | 347,029 | $ | 26,347 | 7.59 | % | ||||||||||||||||||
Mortgage-backed securities | 227,471 | 11,074 | 4.87 | 170,592 | 8,404 | 4.93 | 120,314 | 5,764 | 4.73 | |||||||||||||||||||||||||||
Tax exempt securities(1) | 76,746 | 3,381 | 4.41 | 58,065 | 2,930 | 5.05 | 53,599 | 2,823 | 5.19 | |||||||||||||||||||||||||||
Taxable securities | 27,298 | 880 | 3.22 | 27,298 | 1,081 | 3.96 | 28,529 | 1,213 | 4.19 | |||||||||||||||||||||||||||
Federal funds sold | 11,466 | 33 | 0.29 | 8,575 | 183 | 2.13 | 12,375 | 638 | 5.08 | |||||||||||||||||||||||||||
Deposits with banks | 5,171 | 13 | 0.25 | 1,235 | 5 | 0.40 | 173 | 4 | 2.31 | |||||||||||||||||||||||||||
Total interest earning assets | 783,846 | 44,548 | 5.68 | 663,325 | 40,643 | 6.13 | 562,019 | 36,789 | 6.52 | |||||||||||||||||||||||||||
Non interest earning assets: | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 13,574 | 15,408 | 16,081 | |||||||||||||||||||||||||||||||||
Other assets | 29,397 | 26,206 | 22,242 | |||||||||||||||||||||||||||||||||
Total assets | $ | 826,817 | $ | 704,939 | $ | 600,342 | ||||||||||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Savings, NOW and money market deposits | $ | 376,429 | $ | 3,698 | 0.98 | % | $ | 315,481 | $ | 5,681 | 1.80 | % | $ | 287,450 | $ | 7,634 | 2.66 | % | ||||||||||||||||||
Certificates of deposit of $100,000 or more | 81,838 | 1,974 | 2.41 | 66,578 | 2,125 | 3.19 | 35,965 | 1,452 | 4.04 | |||||||||||||||||||||||||||
Other time deposits | 68,289 | 1,551 | 2.27 | 37,413 | 1,148 | 3.07 | 28,044 | 1,058 | 3.77 | |||||||||||||||||||||||||||
Federal funds purchased and repurchase agreements | 29,607 | 401 | 1.35 | 24,595 | 478 | 1.94 | 6,035 | 288 | 4.71 | |||||||||||||||||||||||||||
Federal Home Loan Bank term advances | 82 | 1 | 1.22 | 4,552 | 57 | 1.25 | 110 | 5 | 4.55 | |||||||||||||||||||||||||||
Junior subordinated debentures | 2,263 | 190 | 8.40 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total interest bearing liabilities | 558,508 | 7,815 | 1.40 | 448,619 | 9,489 | 2.12 | 357,604 | 10,437 | 2.92 | |||||||||||||||||||||||||||
Non interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Demand deposits | 205,984 | 197,179 | 191,022 | |||||||||||||||||||||||||||||||||
Other liabilities | 6,086 | 5,428 | 4,229 | |||||||||||||||||||||||||||||||||
Total liabilities | 770,578 | 651,226 | 552,855 | |||||||||||||||||||||||||||||||||
Stockholders’ equity | 56,239 | 53,713 | 47,487 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 826,817 | $ | 704,939 | $ | 600,342 | ||||||||||||||||||||||||||||||
Net interest income/interest rate spread(2) | 36,733 | 4.28 | % | 31,154 | 4.01 | % | 26,352 | 3.60 | % | |||||||||||||||||||||||||||
Net interest earning assets/net interest margin(3) | $ | 225,338 | 4.69 | % | $ | 214,706 | 4.70 | % | $ | 204,415 | 4.69 | % | ||||||||||||||||||||||||
Ratio of interest earning assets to interest bearing liabilities | 140.35 | % | 147.86 | % | 157.16 | % | ||||||||||||||||||||||||||||||
Less: Tax equivalent adjustment | (1,180 | ) | (1,023 | ) | (925 | ) | ||||||||||||||||||||||||||||||
Net interest income | $ | 35,553 | $ | 30,131 | $ | 25,427 | ||||||||||||||||||||||||||||||
(1) | The above table is presented on a tax equivalent basis. | |
(2) | Net interest rate spread represents the difference between the yield on average interest earning assets and the cost of average interest bearing liabilities. | |
(3) | Net interest margin represents net interest income divided by average interest earning assets. |
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2009 Over 2008 | 2008 Over 2007 | |||||||||||||||||||||||
Years Ended December 31, | Changes Due To | Changes Due To | ||||||||||||||||||||||
(In thousands) | Net | Net | ||||||||||||||||||||||
Volume | Rate | Change | Volume | Rate | Change | |||||||||||||||||||
Interest income on interest earning assets: | ||||||||||||||||||||||||
Loans (including loan fee income) | $ | 2,603 | $ | (1,476 | ) | $ | 1,127 | $ | 3,653 | $ | (1,960 | ) | $ | 1,693 | ||||||||||
Mortgage-backed securities | 2,773 | (103 | ) | 2,670 | 2,473 | 167 | 2,640 | |||||||||||||||||
Tax exempt securities(1) | 857 | (406 | ) | 451 | 229 | (122 | ) | 107 | ||||||||||||||||
Taxable securities | — | (201 | ) | (201 | ) | (51 | ) | (81 | ) | (132 | ) | |||||||||||||
Federal funds sold | 46 | (196 | ) | (150 | ) | (156 | ) | (299 | ) | (455 | ) | |||||||||||||
Deposits with banks | 10 | (2 | ) | 8 | 7 | (6 | ) | 1 | ||||||||||||||||
Total interest earning assets | 6,289 | (2,384 | ) | 3,905 | 6,155 | (2,301 | ) | 3,854 | ||||||||||||||||
Interest expense on interest bearing liabilities: | ||||||||||||||||||||||||
Savings, NOW and money market deposits | 950 | (2,933 | ) | (1,983 | ) | 689 | (2,642 | ) | (1,953 | ) | ||||||||||||||
Certificates of deposit of $100,000 or more | 432 | (583 | ) | (151 | ) | 1,028 | (355 | ) | 673 | |||||||||||||||
Other time deposits | 761 | (358 | ) | 403 | 311 | (221 | ) | 90 | ||||||||||||||||
Federal funds purchased and repurchase agreements | 86 | (163 | ) | (77 | ) | 446 | (256 | ) | 190 | |||||||||||||||
Federal Home Loan Bank Advances | (55 | ) | (1 | ) | (56 | ) | 58 | (6 | ) | 52 | ||||||||||||||
Junior subordinated debentures | 190 | — | 190 | |||||||||||||||||||||
Total interest bearing liabilities | 2,364 | (4,038 | ) | (1,674 | ) | 2,532 | (3,480 | ) | (948 | ) | ||||||||||||||
Net interest income | $ | 3,925 | $ | 1,654 | $ | 5,579 | $ | 3,623 | $ | 1,179 | $ | 4,802 | ||||||||||||
(1) | The above table is presented on a tax equivalent basis. |
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December 31, | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Allowance for loan losses balance at beginning of period | $ | 3,953 | $ | 2,954 | $ | 2,512 | $ | 2,383 | $ | 2,188 | ||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial real estate mortgage loans | 100 | — | — | — | — | |||||||||||||||
Residential real estate mortgage loans | 707 | 480 | — | — | 7 | |||||||||||||||
Commercial, financial and agricultural loans | 796 | 534 | 203 | 33 | 153 | |||||||||||||||
Installment/consumer loans | 228 | 56 | 23 | 50 | 129 | |||||||||||||||
Real estate construction loans | 262 | — | — | — | — | |||||||||||||||
Total | 2,093 | 1,070 | 226 | 83 | 289 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial real estate mortgage loans | — | — | — | — | — | |||||||||||||||
Residential real estate mortgage loans | 6 | — | 1 | 6 | 17 | |||||||||||||||
Commercial, financial and agricultural loans | 28 | 53 | 13 | 59 | 37 | |||||||||||||||
Installment/consumer loans | 1 | 16 | 54 | 62 | 30 | |||||||||||||||
Real estate construction loans | — | — | — | — | 100 | |||||||||||||||
Total | 35 | 69 | 68 | 127 | 184 | |||||||||||||||
Net (charge-offs) recoveries | (2,058 | ) | (1,001 | ) | (158 | ) | 44 | (105 | ) | |||||||||||
Provision for loan losses charged to operations | 4,150 | 2,000 | 600 | 85 | 300 | |||||||||||||||
Balance at end of period | $ | 6,045 | $ | 3,953 | $ | 2,954 | $ | 2,512 | $ | 2,383 | ||||||||||
Ratio of net (charge-offs) recoveries during period to average loans outstanding | (0.47% | ) | (0.25% | ) | (0.05% | ) | 0.01 | % | (0.04% | ) | ||||||||||
Years Ended December 31, | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Percentage | Percentage | Percentage | Percentage | Percentage | |||||||||||||||||||||||||||||||||||
of Loans | of Loans | of Loans | of Loans | of Loans | ||||||||||||||||||||||||||||||||||||
to Total | to Total | to Total | to Total | to Total | ||||||||||||||||||||||||||||||||||||
Amount | Loans | Amount | Loans | Amount | Loans | Amount | Loans | Amount | Loans | |||||||||||||||||||||||||||||||
Commercial real estate mortgage loans | $ | 2,452 | 47.3 | % | $ | 1,778 | 44.4 | % | $ | 1,820 | 44.7 | % | $ | 1,715 | 51.2 | % | $ | 1,527 | 44.9 | % | ||||||||||||||||||||
Residential real estate mortgage loans | 2,384 | 32.0 | 1,152 | 32.4 | 310 | 33.4 | 239 | 32.6 | 236 | 33.2 | ||||||||||||||||||||||||||||||
Commercial, financial and agricultural loans | 891 | 17.2 | 696 | 16.8 | 484 | 15.6 | 358 | 9.0 | 327 | 12.8 | ||||||||||||||||||||||||||||||
Installment/consumer loans | 279 | 2.2 | 61 | 2.6 | 87 | 2.3 | 79 | 2.7 | 110 | 3.2 | ||||||||||||||||||||||||||||||
Real estate construction loans | 39 | 1.3 | 266 | 3.8 | 253 | 4.0 | 121 | 4.5 | 183 | 5.9 | ||||||||||||||||||||||||||||||
Total | $ | 6,045 | 100.0 | % | $ | 3,953 | 100.0 | % | $ | 2,954 | 100.0 | % | $ | 2,512 | 100.0 | % | $ | 2,383 | 100.0 | % | ||||||||||||||||||||
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December 31, | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Commercial real estate mortgage loans | $ | 211,647 | $ | 190,727 | $ | 167,770 | $ | 166,950 | $ | 135,570 | ||||||||||
Residential real estate mortgage loans | 143,312 | 139,342 | 125,317 | 106,189 | 100,219 | |||||||||||||||
Commercial, financial, and agricultural loans | 76,867 | 72,093 | 58,637 | 29,183 | 38,783 | |||||||||||||||
Installment/consumer loans | 9,821 | 11,081 | 8,553 | 8,848 | 9,827 | |||||||||||||||
Real estate construction loans | 5,906 | 16,174 | 14,867 | 14,767 | 17,960 | |||||||||||||||
Total loans | 447,553 | 429,417 | 375,144 | 325,937 | 302,359 | |||||||||||||||
Net deferred loan costs and fees | 485 | 266 | 92 | 60 | (95 | ) | ||||||||||||||
448,038 | 429,683 | 375,236 | 325,997 | 302,264 | ||||||||||||||||
Allowance for loan losses | (6,045 | ) | (3,953 | ) | (2,954 | ) | (2,512 | ) | (2,383 | ) | ||||||||||
Net loans | $ | 441,993 | $ | 425,730 | $ | 372,282 | $ | 323,485 | $ | 299,881 | ||||||||||
After One | ||||||||||||||||
Within One | But Within | After | ||||||||||||||
Year | Five Years | Five Years | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Commercial loans | $ | 12,565 | $ | 22,199 | $ | 42,103 | $ | 76,867 | ||||||||
Construction loans(1) | 2,470 | 444 | 2,992 | 5,906 | ||||||||||||
Total | $ | 15,035 | $ | 22,643 | $ | 45,095 | $ | 82,773 | ||||||||
Rate provisions: | ||||||||||||||||
Amounts with fixed interest rates | $ | 12,508 | $ | 21,715 | $ | 33,972 | $ | 68,195 | ||||||||
Amounts with variable interest rates | 2,527 | 928 | 11,123 | 14,578 | ||||||||||||
Total | $ | 15,035 | $ | 22,643 | $ | 45,095 | $ | 82,773 | ||||||||
(1) | Included in the “After Five Years” column, are one-step construction loans that contain a preliminary construction period (interest only) that automatically converts to amortization at the end of the construction phase. |
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December 31, | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Loans 90 days or more past due and still accruing | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Nonaccrual loans | 1,001 | 3,068 | 229 | 305 | 658 | |||||||||||||||
Restructured loans — Nonaccrual | 4,890 | — | — | 118 | — | |||||||||||||||
Restructured loans — Performing | 3,229 | 3,229 | — | — | — | |||||||||||||||
Other real estate owned, net | — | — | — | — | — | |||||||||||||||
Total | $ | 9,120 | $ | 6,297 | $ | 229 | $ | 423 | $ | 658 | ||||||||||
Years Ended December 31, | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Gross interest income that has not been paid or recorded during the year under original terms: | ||||||||||||||||||||
Nonaccrual loans | $ | 52 | $ | 127 | $ | 12 | $ | 9 | $ | 38 | ||||||||||
Restructured loans | 189 | 12 | — | 1 | — | |||||||||||||||
Gross interest income recorded during the year: | ||||||||||||||||||||
Nonaccrual loans | $ | 37 | $ | 189 | $ | 5 | $ | 12 | $ | 17 | ||||||||||
Restructured loans | 288 | 238 | — | 9 | — | |||||||||||||||
Commitments for additional funds | — | — | — | — | — |
December 31, | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Nonaccrual Loans: | ||||||||||||||||||||
Commercial real estate mortgage loans | $ | 324 | $ | — | $ | — | $ | — | $ | 460 | ||||||||||
Residential real estate mortgage loans | 511 | 426 | 223 | 182 | 198 | |||||||||||||||
Commercial, financial & agricultural loans | 61 | 96 | 6 | 108 | — | |||||||||||||||
Installment/consumer loans | 105 | 6 | — | 15 | — | |||||||||||||||
Real estate construction loans | — | 2,540 | — | — | — | |||||||||||||||
Total | 1,001 | 3,068 | 229 | 305 | 658 | |||||||||||||||
Restructured Loans: | ||||||||||||||||||||
Commercial real estate mortgage loans | 3,229 | 3,229 | — | — | — | |||||||||||||||
Residential real estate mortgage loans | 4,890 | — | — | — | — | |||||||||||||||
Commercial, financial & agricultural loans | — | — | — | 118 | — | |||||||||||||||
Installment/consumer loans | — | — | — | — | — | |||||||||||||||
Real estate construction loans | — | — | — | — | — | |||||||||||||||
Total | 8,119 | 3,229 | — | 118 | — | |||||||||||||||
Total Impaired Loans | $ | 9,120 | $ | 6,297 | $ | 229 | $ | 423 | $ | 658 | ||||||||||
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Within | After One But | After Five But | After | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2009 | One Year | Within Five Years | Within Ten Years | Ten Years | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | ||||||||||||||||||||||||||||||||||||||||||||||
Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | |||||||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Yield | Amount | Amount | Yield | Amount | Amount | Yield | Amount | Amount | Yield | Amount | Amount | |||||||||||||||||||||||||||||||||||||||||||
Available for sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. GSE securities | $ | 2,892 | $ | 2,791 | 4.60 | % | $ | 34,662 | $ | 34,747 | 2.14 | % | $ | 8,385 | $ | 8,249 | 3.07 | % | $ | — | $ | — | — | % | $ | 45,939 | $ | 45,787 | ||||||||||||||||||||||||||||
State and municipal obligations | 5,972 | 5,898 | 4.51 | 19,712 | 18,896 | 4.93 | 16,121 | 15,546 | 6.09 | — | — | — | 41,805 | 40,340 | ||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 3,990 | 4,009 | 3.83 | 6,016 | 5,828 | 4.32 | 24,432 | 23,582 | 4.33 | 71,899 | 68,418 | 5.12 | 106,337 | 101,837 | ||||||||||||||||||||||||||||||||||||||||||
Residential collateralized mortgage obligations | — | — | — | — | — | — | 9,444 | 9,378 | 2.86 | 102,587 | 100,064 | 4.44 | 112,031 | 109,442 | ||||||||||||||||||||||||||||||||||||||||||
Total available for sale | 12,854 | 12,698 | 4.32 | 60,390 | 59,471 | 3.24 | 58,382 | 56,755 | 4.39 | 174,486 | 168,482 | 4.72 | 306,112 | 297,406 | ||||||||||||||||||||||||||||||||||||||||||
Held to maturity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. GSE securities | — | — | — | — | — | — | 4,927 | 5,000 | 4.02 | — | — | — | 4,927 | 5,000 | ||||||||||||||||||||||||||||||||||||||||||
State and municipal obligations | 29,724 | 29,685 | 1.97 | 24,241 | 23,894 | 3.16 | 531 | 525 | 4.32 | — | — | — | 54,496 | 54,104 | ||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Residential collateralized mortgage obligations | — | — | — | — | — | — | — | — | — | 18,907 | 18,320 | 4.63 | 18,907 | 18,320 | ||||||||||||||||||||||||||||||||||||||||||
Total held to maturity | 29,724 | 29,685 | 1.97 | 24,241 | 23,894 | 3.16 | 5,458 | 5,525 | 4.05 | 18,907 | 18,320 | 4.63 | 78,330 | 77,424 | ||||||||||||||||||||||||||||||||||||||||||
Total securities | $ | 42,578 | $ | 42,383 | 2.67 | % | $ | 84,631 | $ | 83,365 | 3.22 | % | $ | 63,840 | $ | 62,280 | 4.36 | % | $ | 193,393 | $ | 186,802 | 4.71 | % | $ | 384,442 | $ | 374,830 | ||||||||||||||||||||||||||||
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Less than | $100,000 or | |||||||||||
$100,000 | Greater | Total | ||||||||||
(In thousands) | ||||||||||||
3 Months or less | $ | 24,847 | $ | 23,377 | $ | 48,224 | ||||||
Over 3 through 6 months | 17,898 | 18,277 | 36,175 | |||||||||
Over 6 through 12 months | 17,956 | 25,276 | 43,232 | |||||||||
Over 12 months through 24 months | 5,445 | 3,951 | 9,396 | |||||||||
Over 24 months through 36 months | 658 | 701 | 1,359 | |||||||||
Over 36 months through 48 months | 559 | 1,003 | 1,562 | |||||||||
Over 48 months through 60 months | 122 | 816 | 938 | |||||||||
Over 60 months | 68 | — | 68 | |||||||||
Total | $ | 67,553 | $ | 73,401 | $ | 140,954 | ||||||
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Total | ||||||||||||||||||||
Amounts | Less than | One to | Four to Five | Over Five | ||||||||||||||||
Committed | One Year | Three Years | Years | Years | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Operating leases | $ | 4,793 | $ | 827 | $ | 976 | $ | 925 | $ | 2,065 | ||||||||||
Purchase obligation | 250 | 250 | — | — | — | |||||||||||||||
FHLB term advances and repurchase agreements | 15,000 | — | — | 5,000 | 10,000 | |||||||||||||||
Junior subordinated debentures | 16,002 | — | — | — | 16,002 | |||||||||||||||
Time deposits | 140,954 | 127,631 | 10,755 | 2,500 | 68 | |||||||||||||||
Total contractual obligations outstanding | $ | 176,999 | $ | 128,708 | $ | 11,731 | $ | 8,425 | $ | 28,135 | ||||||||||
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2009 | ||||||||
Potential Change | ||||||||
in Net | ||||||||
Change in Interest | Interest Income | |||||||
Rates in Basis Points | $ Change | % Change | ||||||
(Dollars in thousands) | ||||||||
200 | $ | (1,243 | ) | (3.54 | )% | |||
100 | $ | (545 | ) | (1.55 | )% | |||
Static | — | — | ||||||
(100) | $ | 42 | 0.12 | % |
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December 31, | December 31, | |||||||
2009 | 2008 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 27,108 | $ | 24,744 | ||||
Interest earning deposits with banks | 7,039 | 4,141 | ||||||
Total cash and cash equivalents | 34,147 | 28,885 | ||||||
Securities available for sale, at fair value | 306,112 | 310,695 | ||||||
Securities held to maturity (fair value of $78,330 and $43,890, respectively) | 77,424 | 43,444 | ||||||
Total securities | 383,536 | 354,139 | ||||||
Securities, restricted | 1,205 | 3,800 | ||||||
Loans | 448,038 | 429,683 | ||||||
Allowance for loan losses | (6,045 | ) | (3,953 | ) | ||||
Loans, net | 441,993 | 425,730 | ||||||
Premises and equipment, net | 21,306 | 18,377 | ||||||
Accrued interest receivable | 3,679 | 3,626 | ||||||
Other assets | 11,391 | 4,502 | ||||||
Total Assets | $ | 897,257 | $ | 839,059 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Demand deposits | $ | 212,137 | $ | 181,213 | ||||
Savings, NOW and money market deposits | 440,447 | 344,860 | ||||||
Certificates of deposit of $100,000 or more | 73,401 | 78,165 | ||||||
Other time deposits | 67,553 | 54,847 | ||||||
Total deposits | 793,538 | 659,085 | ||||||
Federal funds purchased and Federal Home Loan Bank overnight borrowings | — | 70,900 | ||||||
Federal Home Loan Bank term advances | — | 30,000 | ||||||
Repurchase agreements | 15,000 | 15,000 | ||||||
Junior subordinated debentures | 16,002 | — | ||||||
Accrued interest payable | 531 | 672 | ||||||
Other liabilities and accrued expenses | 10,331 | 7,263 | ||||||
Total Liabilities | 835,402 | 782,920 | ||||||
Commitments and Contingencies | — | — | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $.01 per share (2,000,000 shares authorized; none issued) | — | — | ||||||
Common stock, par value $.01 per share: | ||||||||
Authorized: 20,000,000 shares; 6,397,088 and 6,386,306 shares issued, respectively; 6,261,216 and 6,184,080 shares outstanding, respectively | 64 | 64 | ||||||
Surplus | 19,950 | 20,452 | ||||||
Retained earnings | 43,110 | 40,081 | ||||||
Less: Treasury stock at cost, 135,872 and 202,226 shares, respectively | (4,791 | ) | (6,309 | ) | ||||
58,333 | 54,288 | |||||||
Accumulated other comprehensive income (loss): | ||||||||
Net unrealized gain on securities, net of deferred income taxes of ($3,457) and ($2,250), respectively | 5,249 | 3,417 | ||||||
Pension liability, net of deferred income taxes of $1,166 and $1,060, respectively | (1,727 | ) | (1,566 | ) | ||||
Total Stockholders’ Equity | 61,855 | 56,139 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 897,257 | $ | 839,059 | ||||
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Years Ended December 31, | 2009 | 2008 | 2007 | |||||||||
Interest income: | ||||||||||||
Loans (including fee income) | $ | 29,167 | $ | 28,040 | $ | 26,347 | ||||||
Mortgage-backed securities | 11,074 | 8,404 | 5,764 | |||||||||
State and municipal obligations | 2,201 | 1,907 | 1,898 | |||||||||
U.S. GSE securities | 880 | 1,081 | 1,213 | |||||||||
Federal funds sold | 33 | 183 | 638 | |||||||||
Deposits with banks | 13 | 5 | 4 | |||||||||
Total interest income | 43,368 | 39,620 | 35,864 | |||||||||
Interest expense: | ||||||||||||
Savings, NOW and money market deposits | 3,698 | 5,681 | 7,634 | |||||||||
Certificates of deposit of $100,000 or more | 1,974 | 2,125 | 1,452 | |||||||||
Other time deposits | 1,551 | 1,148 | 1,058 | |||||||||
Federal funds purchased and repurchase agreements | 401 | 478 | 288 | |||||||||
Federal Home Loan Bank Advances | 1 | 57 | 5 | |||||||||
Junior subordinated debentures | 190 | — | — | |||||||||
Total interest expense | 7,815 | 9,489 | 10,437 | |||||||||
Net interest income | 35,553 | 30,131 | 25,427 | |||||||||
Provision for loan losses | 4,150 | 2,000 | 600 | |||||||||
Net interest income after provision for loan losses | 31,403 | 28,131 | 24,827 | |||||||||
Non interest income: | ||||||||||||
Service charges on deposit accounts | 2,997 | 3,067 | 2,540 | |||||||||
Fees for other customer services | 1,678 | 1,759 | 1,734 | |||||||||
Title fee income | 903 | 1,120 | 1,339 | |||||||||
Net securities gains (losses) | 529 | — | (101 | ) | ||||||||
Other operating income | 67 | 118 | 166 | |||||||||
Total non interest income | 6,174 | 6,064 | 5,678 | |||||||||
Non interest expense: | ||||||||||||
Salaries and employee benefits | 14,084 | 12,710 | 10,755 | |||||||||
Net occupancy expense | 2,337 | 1,870 | 1,734 | |||||||||
Furniture and fixture expense | 1,007 | 850 | 833 | |||||||||
Data/Item processing | 486 | 481 | 423 | |||||||||
Advertising | 457 | 440 | 429 | |||||||||
FDIC assessments | 1,574 | 267 | 66 | |||||||||
Other operating expenses | 4,820 | 4,539 | 3,928 | |||||||||
Total non interest expense | 24,765 | 21,157 | 18,168 | |||||||||
Income before income taxes | 12,812 | 13,038 | 12,337 | |||||||||
Income tax expense | 4,049 | 4,288 | 4,043 | |||||||||
Net income | $ | 8,763 | $ | 8,750 | $ | 8,294 | ||||||
Basic earnings per share | $ | 1.44 | $ | 1.44 | $ | 1.37 | ||||||
Diluted earnings per share | $ | 1.43 | $ | 1.43 | $ | 1.36 | ||||||
Comprehensive Income | $ | 10,434 | $ | 10,369 | $ | 10,787 | ||||||
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Accumulated | ||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||
Common | Comprehensive | Retained | Treasury | Comprehensive | ||||||||||||||||||||||||
Stock | Surplus | Income | Earnings | Stock | Income (Loss) | Total | ||||||||||||||||||||||
Balance at January 1, 2007 | $ | 64 | $ | 21,565 | $ | 34,347 | $ | (8,176 | ) | $ | (2,261 | ) | $ | 45,539 | ||||||||||||||
Net income | $ | 8,294 | 8,294 | 8,294 | ||||||||||||||||||||||||
Stock awards granted | (271 | ) | 271 | — | ||||||||||||||||||||||||
Stock awards forfeited | 39 | (39 | ) | — | ||||||||||||||||||||||||
Exercise of stock options, including tax benefit | 94 | 55 | 149 | |||||||||||||||||||||||||
Shared based compensation expense | 244 | 244 | ||||||||||||||||||||||||||
Cash dividend declared, $0.92 per share | (5,610 | ) | (5,610 | ) | ||||||||||||||||||||||||
Other comprehensive income, net of deferred taxes: | ||||||||||||||||||||||||||||
Change in unrealized net gains in securities available for sale, net of reclassification and deferred tax effects | 1,738 | 1,738 | 1,738 | |||||||||||||||||||||||||
Adjustment to pension liability, net of deferred tax | 755 | 755 | 755 | |||||||||||||||||||||||||
Comprehensive Income | $ | 10,787 | ||||||||||||||||||||||||||
Balance at December 31, 2007 | $ | 64 | $ | 21,671 | $ | 37,031 | $ | (7,889 | ) | $ | 232 | $ | 51,109 | |||||||||||||||
Net income | $ | 8,750 | 8,750 | 8,750 | ||||||||||||||||||||||||
Stock awards granted | (1,848 | ) | 1,848 | — | ||||||||||||||||||||||||
Stock awards forfeited | 91 | (91 | ) | — | ||||||||||||||||||||||||
Vesting of stock awards | (34 | ) | (40 | ) | (74 | ) | ||||||||||||||||||||||
Exercise of stock options, including tax benefit | 140 | (137 | ) | 3 | ||||||||||||||||||||||||
Shared based compensation expense | 432 | 432 | ||||||||||||||||||||||||||
Cash dividend declared, $0.92 per share | (5,665 | ) | (5,665 | ) | ||||||||||||||||||||||||
Other comprehensive income, net of deferred taxes: | — | |||||||||||||||||||||||||||
Change in unrealized net gains in securities available for sale, net of reclassification and deferred tax effects | 3,204 | 3,204 | 3,204 | |||||||||||||||||||||||||
Adjustment to pension liability, net of deferred taxes | (1,585 | ) | (35 | ) | (1,585 | ) | (1,620 | ) | ||||||||||||||||||||
Comprehensive Income | $ | 10,369 | — | |||||||||||||||||||||||||
Balance at December 31, 2008 | $ | 64 | $ | 20,452 | $ | 40,081 | $ | (6,309 | ) | $ | 1,851 | $ | 56,139 | |||||||||||||||
Net income | $ | 8,763 | 8,763 | 8,763 | ||||||||||||||||||||||||
Proceeds from issuance of common stock, net of offering costs | 252 | 3 | 255 | |||||||||||||||||||||||||
Stock awards granted | (1,664 | ) | 1,664 | — | ||||||||||||||||||||||||
Vesting of stock awards | (1 | ) | (52 | ) | (53 | ) | ||||||||||||||||||||||
Exercise of stock options, including tax benefit | 161 | (97 | ) | 64 | ||||||||||||||||||||||||
Shared based compensation expense | 750 | 750 | ||||||||||||||||||||||||||
Cash dividend declared, $0.92 per share | (5,734 | ) | (5,734 | ) | ||||||||||||||||||||||||
Other comprehensive income, net of deferred taxes: | ||||||||||||||||||||||||||||
Change in unrealized net gains in securities available for sale, net of reclassification and deferred tax effects | 1,832 | 1,832 | 1,832 | |||||||||||||||||||||||||
Adjustment to pension liability, net of deferred taxes | (161 | ) | (161 | ) | (161 | ) | ||||||||||||||||||||||
Comprehensive Income | $ | 10,434 | — | |||||||||||||||||||||||||
Balance at December 31, 2009 | $ | 64 | $ | 19,950 | $ | 43,110 | $ | (4,791 | ) | $ | 3,522 | $ | 61,855 | |||||||||||||||
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Years Ended December 31, | 2009 | 2008 | 2007 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net Income | $ | 8,763 | $ | 8,750 | $ | 8,294 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Provision for loan losses | 4,150 | 2,000 | 600 | |||||||||
Depreciation and amortization | 1,453 | 1,214 | 1,223 | |||||||||
Amortization and (accretion), net | 305 | (55 | ) | (22 | ) | |||||||
Share based compensation expense | 750 | 432 | 244 | |||||||||
Tax expense from the vesting of restricted stock awards | 1 | 34 | — | |||||||||
Tax benefit from exercise of stock options | (13 | ) | (19 | ) | (25 | ) | ||||||
SERP expense | 281 | 166 | 214 | |||||||||
Net securities (gains) losses | (529 | ) | — | 101 | ||||||||
Increase in accrued interest receivable | (53 | ) | (919 | ) | (15 | ) | ||||||
Deferred income tax (benefit) expense | (948 | ) | 441 | (257 | ) | |||||||
Increase in other assets | (5,928 | ) | (863 | ) | (1,346 | ) | ||||||
Increase (decrease) in accrued expenses and other liabilities | 1,261 | (1,468 | ) | 595 | ||||||||
Net cash provided by operating activities | 9,493 | 9,713 | 9,606 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of securities available for sale | (113,975 | ) | (213,851 | ) | (37,935 | ) | ||||||
Purchases of FHLB stock | (19,514 | ) | (65,496 | ) | (16,595 | ) | ||||||
Purchases of securities held to maturity | (65,838 | ) | (46,571 | ) | (5,836 | ) | ||||||
Proceeds from sales of securities available for sale | 13,087 | — | 8,484 | |||||||||
Redemption of FHLB stock | 22,109 | 64,083 | 15,086 | |||||||||
Maturities and calls of securities available for sale | 46,150 | 69,496 | 28,978 | |||||||||
Maturities of securities held to maturity | 25,713 | 7,945 | 9,444 | |||||||||
Principal payments on securities | 68,727 | 27,431 | 18,503 | |||||||||
Net increase in loans | (20,413 | ) | (55,448 | ) | (49,397 | ) | ||||||
Purchase of premises and equipment | (4,382 | ) | (1,122 | ) | (1,687 | ) | ||||||
Net cash used in investing activities | (48,336 | ) | (213,533 | ) | (30,955 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Net increase in deposits | 134,453 | 150,176 | 4,497 | |||||||||
Net (decrease) increase in federal funds purchased and FHLB overnight borrowings | (70,900 | ) | 63,900 | (11,600 | ) | |||||||
Net (decrease) increase in FHLB term advances | (30,000 | ) | 20,000 | 10,000 | ||||||||
Net (decrease) increase in repurchase agreements | — | (10,000 | ) | 25,000 | ||||||||
Proceeds from issuance of junior subordinated debentures | 16,002 | — | — | |||||||||
Net proceeds from exercise of stock options | 47 | — | 149 | |||||||||
Net proceeds from issuance of common stock | 255 | — | — | |||||||||
Repurchase of surrendered stock from exercise of stock options and vesting of restricted stock awards | (36 | ) | (71 | ) | — | |||||||
Cash dividends paid | (5,716 | ) | (5,648 | ) | (5,612 | ) | ||||||
Net cash provided by financing activities | 44,105 | 218,357 | 22,434 | |||||||||
Net increase in cash and cash equivalents | 5,262 | 14,537 | 1,085 | |||||||||
Cash and cash equivalents at beginning of period | 28,885 | 14,348 | 13,263 | |||||||||
Cash and cash equivalents at end of period | $ | 34,147 | $ | 28,885 | $ | 14,348 | ||||||
Supplemental Information-Cash Flows: | ||||||||||||
Cash paid for: | ||||||||||||
Interest | $ | 7,956 | $ | 9,457 | $ | 10,651 | ||||||
Income tax | $ | 3,264 | $ | 4,419 | $ | 4,598 | ||||||
Noncash investing and financing activities: | ||||||||||||
Dividends declared and unpaid at end of period | $ | 1,441 | $ | 1,423 | $ | 1,406 |
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December 31, | 2009 | 2008 | ||||||||||||||||||||||||||||||
(In thousands) | Gross | Gross | Estimated | Gross | Gross | Estimated | ||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | |||||||||||||||||||||||||
Available for sale: | ||||||||||||||||||||||||||||||||
U.S. GSE securities | $ | 45,787 | $ | 309 | $ | (157 | ) | $ | 45,939 | $ | 29,855 | $ | 306 | $ | (27 | ) | $ | 30,134 | ||||||||||||||
State and municipal obligations | 40,340 | 1,473 | (8 | ) | 41,805 | 47,848 | 840 | (100 | ) | 48,588 | ||||||||||||||||||||||
Residential mortgage-backed securities | 101,837 | 4,561 | (61 | ) | 106,337 | 143,372 | 3,637 | (54 | ) | 146,955 | ||||||||||||||||||||||
Residential collateralized mortgage obligations | 109,442 | 2,722 | (133 | ) | 112,031 | 83,953 | 1,094 | (29 | ) | 85,018 | ||||||||||||||||||||||
Total available for sale | 297,406 | 9,065 | (359 | ) | 306,112 | 305,028 | 5,877 | (210 | ) | 310,695 | ||||||||||||||||||||||
Held to maturity: | ||||||||||||||||||||||||||||||||
U.S. GSE securities | 5,000 | — | (73 | ) | 4,927 | — | — | — | — | |||||||||||||||||||||||
State and municipal obligations | 54,104 | 400 | (8 | ) | 54,496 | 24,153 | 68 | (4 | ) | 24,217 | ||||||||||||||||||||||
Residential mortgage-backed securities | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Residential collateralized mortgage obligations | 18,320 | 589 | (2 | ) | 18,907 | 19,291 | 382 | — | 19,673 | |||||||||||||||||||||||
Total held to maturity | 77,424 | 989 | (83 | ) | 78,330 | 43,444 | 450 | (4 | ) | 43,890 | ||||||||||||||||||||||
Total securities | $ | 374,830 | $ | 10,054 | $ | (442 | ) | $ | 384,442 | $ | 348,472 | $ | 6,327 | $ | (214 | ) | $ | 354,585 | ||||||||||||||
December 31, | 2009 | 2008 | ||||||||||||||||||||||||||||||
(In thousands) | Less than 12 months | Greater than 12 months | Less than 12 months | Greater than 12 months | ||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||||||
Value | losses | Value | losses | Fair Value | losses | Fair Value | losses | |||||||||||||||||||||||||
Available for sale: | ||||||||||||||||||||||||||||||||
U.S. GSE securities | $ | 15,637 | $ | 157 | $ | — | $ | — | $ | 4,319 | $ | 27 | $ | — | $ | — | ||||||||||||||||
State and municipal obligations | 742 | 8 | — | — | 2,160 | 51 | 701 | 49 | ||||||||||||||||||||||||
Residential mortgage-backed securities | 9,879 | 61 | — | — | 6,924 | 35 | 1,529 | 19 | ||||||||||||||||||||||||
Residential collateralized mortgage obligations | 5,845 | 133 | — | — | 10,300 | 29 | — | — | ||||||||||||||||||||||||
Total available for sale | $ | 32,103 | $ | 359 | $ | — | $ | — | $ | 23,703 | $ | 142 | $ | 2,230 | $ | 68 | ||||||||||||||||
Held to maturity: | ||||||||||||||||||||||||||||||||
U.S. GSE securities | $ | 4,927 | $ | 73 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
State and municipal obligations | 10,818 | 8 | — | — | 3,996 | 4 | — | — | ||||||||||||||||||||||||
Residential mortgage-backed securities | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Residential collateralized mortgage obligations | 4,952 | 2 | — | — | — | — | — | — | ||||||||||||||||||||||||
Total held to maturity | $ | 20,697 | $ | 83 | $ | — | $ | — | $ | 3,996 | $ | 4 | $ | — | $ | — | ||||||||||||||||
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Within | After One But | After Five But | After | |||||||||||||||||||||||||||||||||||||
December 31, 2009 | One Year | Within Five Years | Within Ten Years | Ten Years | Total | |||||||||||||||||||||||||||||||||||
(In thousands) | Amortized | Amortized | Amortized | Amortized | Amortized | |||||||||||||||||||||||||||||||||||
Fair Value | Cost | Fair Value | Cost | Fair Value | Cost | Fair Value | Cost | Fair Value | Cost | |||||||||||||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Amount | Amount | Amount | Amount | Amount | |||||||||||||||||||||||||||||||
Available for sale: | ||||||||||||||||||||||||||||||||||||||||
U.S. GSE securities | $ | 2,892 | $ | 2,791 | $ | 34,662 | $ | 34,747 | $ | 8,385 | $ | 8,249 | $ | — | $ | — | $ | 45,939 | $ | 45,787 | ||||||||||||||||||||
State and municipal obligations | 5,972 | 5,898 | 19,712 | 18,896 | 16,121 | 15,546 | — | — | 41,805 | 40,340 | ||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 3,990 | 4,009 | 6,016 | 5,828 | 24,432 | 23,582 | 71,899 | 68,418 | 106,337 | 101,837 | ||||||||||||||||||||||||||||||
Residential collateralized mortgage obligations | — | — | — | — | 9,444 | 9,378 | 102,587 | 100,064 | 112,031 | 109,442 | ||||||||||||||||||||||||||||||
Total available for sale | 12,854 | 12,698 | 60,390 | 59,471 | 58,382 | 56,755 | 174,486 | 168,482 | 306,112 | 297,406 | ||||||||||||||||||||||||||||||
Held to maturity: | ||||||||||||||||||||||||||||||||||||||||
U.S. GSE securities | — | — | — | — | 4,927 | 5,000 | — | — | 4,927 | 5,000 | ||||||||||||||||||||||||||||||
State and municipal obligations | 29,724 | 29,685 | 24,241 | 23,894 | 531 | 525 | — | — | 54,496 | 54,104 | ||||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Residential collateralized mortgage obligations | — | — | — | — | — | — | 18,907 | 18,320 | 18,907 | 18,320 | ||||||||||||||||||||||||||||||
Total held to maturity | 29,724 | 29,685 | 24,241 | 23,894 | 5,458 | 5,525 | 18,907 | 18,320 | 78,330 | 77,424 | ||||||||||||||||||||||||||||||
Total securities | $ | 42,578 | $ | 42,383 | $ | 84,631 | $ | 83,365 | $ | 63,840 | $ | 62,280 | $ | 193,393 | $ | 186,802 | $ | 384,442 | $ | 374,830 | ||||||||||||||||||||
December 31, | 2009 | 2008 | ||||||
(In thousands) | ||||||||
Commercial real estate mortgage loans | $ | 211,647 | $ | 190,727 | ||||
Residential real estate mortgage loans | 143,312 | 139,342 | ||||||
Commercial, financial, and agricultural loans | 76,867 | 72,093 | ||||||
Installment/consumer loans | 9,821 | 11,081 | ||||||
Real estate-construction loans | 5,906 | 16,174 | ||||||
Total loans | 447,553 | 429,417 | ||||||
Net deferred loan costs and fees | 485 | 266 | ||||||
448,038 | 429,683 | |||||||
Allowance for loan losses | (6,045 | ) | (3,953 | ) | ||||
Net loans | $ | 441,993 | $ | 425,730 | ||||
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December 31, | 2009 | 2008 | 2007 | |||||||||
(In thousands) | ||||||||||||
Allowance for loan losses balance at beginning of period | $ | 3,953 | $ | 2,954 | $ | 2,512 | ||||||
Charge-offs | (2,093 | ) | (1,070 | ) | (226 | ) | ||||||
Recoveries | 35 | 69 | 68 | |||||||||
Net charge-offs | (2,058 | ) | (1,001 | ) | (158 | ) | ||||||
Provision for loan losses charged to operations | 4,150 | 2,000 | 600 | |||||||||
Balance at end of period | $ | 6,045 | $ | 3,953 | $ | 2,954 | ||||||
December 31, | 2009 | 2008 | ||||||
(In thousands) | ||||||||
Loans with no allocated allowance for loan loss | $ | 9,022 | $ | 6,297 | ||||
Loans with allocated allowance for loan loss | 98 | — | ||||||
Total | $ | 9,120 | $ | 6,297 | ||||
Amount of the allowance for loan losses allocated | $ | 50 | $ | — |
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December 31, | 2009 | 2008 | 2007 | |||||||||
(In thousands) | ||||||||||||
Average of individually impaired loans during the year | $ | 7,406 | $ | 1,725 | $ | — | ||||||
Interest income recognized during impairment | 135 | 52 | ||||||||||
Cash basis interest income recognized | — | — | — |
Balance | ||||
Outstanding | ||||
(In thousands) | ||||
Balance at December 31, 2008 | $ | 3,267 | ||
New loans | — | |||
Effective change in related parties | — | |||
Advances | 34 | |||
Repayments | (827 | ) | ||
Balance at December 31, 2009 | $ | 2,474 | ||
December 31, | 2009 | 2008 | ||||||
(In thousands) | ||||||||
Land | $ | 6,142 | $ | 6,142 | ||||
Construction in progress | 565 | 769 | ||||||
Building and improvements | 13,905 | 11,515 | ||||||
Furniture and fixtures | 9,602 | 8,372 | ||||||
Leasehold improvements | 3,319 | 2,410 | ||||||
$ | 33,533 | $ | 29,208 | |||||
Less: accumulated depreciation and amortization | (12,227 | ) | (10,831 | ) | ||||
$ | 21,306 | $ | 18,377 | |||||
Less than | $100,000 or | |||||||||||
$100,000 | Greater | Total | ||||||||||
(In thousands) | ||||||||||||
2010 | $ | 60,701 | $ | 66,930 | $ | 127,631 | ||||||
2011 | 5,445 | 3,951 | 9,396 | |||||||||
2012 | 658 | 701 | 1,359 | |||||||||
2013 | 559 | 1,003 | 1,562 | |||||||||
2014 | 122 | 816 | 938 | |||||||||
2015 | 68 | — | 68 | |||||||||
Total | $ | 67,553 | $ | 73,401 | $ | 140,954 | ||||||
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2009 | 2008 | 2007 | ||||||||||
(In thousands) | ||||||||||||
Average daily balance during the year | $ | 15,000 | $ | 13,183 | $ | 753 | ||||||
Average interest rate during the year | 2.35 | % | 2.39 | % | 4.50 | % | ||||||
Maximum month-end balance during the year | $ | 15,000 | $ | 15,000 | $ | 25,000 | ||||||
Weighted average interest rate at year-end | 2.35 | % | 2.39 | % | 4.50 | % |
Years Ended December 31, | 2009 | 2008 | 2007 | |||||||||
(In thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 4,467 | $ | 3,263 | $ | 3,609 | ||||||
State | 530 | 584 | 691 | |||||||||
4,997 | 3,847 | 4,300 | ||||||||||
Deferred: | ||||||||||||
Federal | (788 | ) | 399 | (194 | ) | |||||||
State | (160 | ) | 42 | (63 | ) | |||||||
(948 | ) | 441 | (257 | ) | ||||||||
Income tax expense | $ | 4,049 | $ | 4,288 | $ | 4,043 | ||||||
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Years Ended December 31, | 2009 | 2008 | 2007 | |||||||||||||||||||||
(Dollars in thousands) | Percentage | Percentage | Percentage | |||||||||||||||||||||
of Pre-tax | of Pre-tax | of Pre-tax | ||||||||||||||||||||||
Amount | Earnings | Amount | Earnings | Amount | Earnings | |||||||||||||||||||
Federal income tax expense computed by applying the statutory rate to income before income taxes | $ | 4,362 | 34 | % | $ | 4,442 | 34 | % | $ | 4,195 | 34 | % | ||||||||||||
Tax exempt interest | (682 | ) | (6 | ) | (588 | ) | (4 | ) | (575 | ) | (4 | ) | ||||||||||||
State taxes, net of federal income tax benefit | 302 | 3 | 413 | 3 | 415 | 3 | ||||||||||||||||||
Other | 67 | 1 | 21 | — | 8 | — | ||||||||||||||||||
Income tax expense | $ | 4,049 | 32 | % | $ | 4,288 | 33 | % | $ | 4,043 | 33 | % | ||||||||||||
December 31, | 2009 | 2008 | ||||||
(In thousands) | ||||||||
Deferred income tax assets: | ||||||||
Allowance for loan losses | $ | 2,567 | $ | 1,726 | ||||
Other | 749 | — | ||||||
Total | 3,316 | 1,726 | ||||||
Deferred income tax liabilities: | ||||||||
Pension and SERP expense | (1,167 | ) | (853 | ) | ||||
Other | (518 | ) | (507 | ) | ||||
Depreciation | (580 | ) | (263 | ) | ||||
Total | (2,265 | ) | (1,623 | ) | ||||
Total before other comprehensive income | 1,051 | 103 | ||||||
Deferred income tax liabilities: | ||||||||
Net unrealized gains on securities | (3,457 | ) | (2,250 | ) | ||||
Deferred income tax assets: | ||||||||
Net change in pension liability | 1,166 | 1,060 | ||||||
Net deferred income tax liability | $ | (1,240 | ) | $ | (1,087 | ) | ||
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Pension Benefits | SERP Benefits | |||||||||||||||
At December 31, | 2009 | 2008 | 2009 | 2008 | ||||||||||||
(In thousands) | ||||||||||||||||
Change in benefit obligation | ||||||||||||||||
Benefit obligation at beginning of year | $ | 5,357 | $ | 4,716 | $ | 1,481 | $ | 1,054 | ||||||||
Service cost | 481 | 553 | 162 | 71 | ||||||||||||
Interest cost | 318 | 348 | 59 | 48 | ||||||||||||
Benefits paid and expected expenses | (225 | ) | (270 | ) | — | — | ||||||||||
Assumption changes and other | 1,536 | 10 | (211 | ) | 308 | |||||||||||
Benefit obligation at end of year | $ | 7,467 | $ | 5,357 | $ | 1,491 | $ | 1,481 | ||||||||
Change in plan assets, at fair value | ||||||||||||||||
Plan assets at beginning of year | $ | 6,572 | $ | 6,574 | $ | — | $ | — | ||||||||
Actual return on plan assets | 1,428 | (1,736 | ) | — | — | |||||||||||
Employer contribution | 1,400 | 2,000 | — | — | ||||||||||||
Benefits paid and actual expenses | (217 | ) | (266 | ) | — | — | ||||||||||
Plan assets at end of year | $ | 9,183 | $ | 6,572 | — | — | ||||||||||
Funded status (plan assets less benefit obligations) | $ | 1,716 | $ | 1,215 | $ | (1,491 | ) | $ | (1,481 | ) | ||||||
Pension Benefits | SERP Benefits | |||||||||||||||
At December 31, | 2009 | 2008 | 2009 | 2008 | ||||||||||||
(In thousands) | ||||||||||||||||
Net actuarial loss | $ | 2,458 | $ | 1,930 | $ | 87 | $ | 312 | ||||||||
Prior service cost | 99 | 108 | — | — | ||||||||||||
Transition obligation | — | — | 225 | 252 | ||||||||||||
Net amount recognized | $ | 2,557 | $ | 2,038 | $ | 312 | $ | 564 | ||||||||
Pension Benefits | SERP Benefits | |||||||||||||||||||||||||||
Transition | ||||||||||||||||||||||||||||
At December 31, | 2009 | 2008 | 2007 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Income | ||||||||||||||||||||||||||||
Service cost | $ | 481 | $ | 442 | $ | 111 | $ | 451 | $ | 162 | $ | 71 | $ | 61 | ||||||||||||||
Interest cost | 318 | 279 | 70 | 280 | 59 | 47 | 52 | |||||||||||||||||||||
Expected return on plan assets | (516 | ) | (495 | ) | (124 | ) | (395 | ) | — | — | — | |||||||||||||||||
Amortization of net loss | 88 | — | — | 14 | 13 | — | — | |||||||||||||||||||||
Amortization of unrecognized prior service cost | 9 | 9 | 2 | 9 | — | — | — | |||||||||||||||||||||
Amortization of unrecognized transition (asset) obligation | — | — | — | — | 28 | 28 | 28 | |||||||||||||||||||||
Net periodic benefit cost | $ | 380 | $ | 235 | $ | 59 | $ | 359 | $ | 262 | $ | 146 | $ | 141 | ||||||||||||||
Net loss (gain) | $ | 616 | 2,361 | $ | (1,141 | ) | $ | (211 | ) | $ | 308 | 4 | ||||||||||||||||
Prior service cost | — | — | — | — | — | — | ||||||||||||||||||||||
Transition obligation | — | — | — | — | — | (64 | ) | |||||||||||||||||||||
Amortization of net gain | (88 | ) | — | (14 | ) | (13 | ) | — | — | |||||||||||||||||||
Amortization of prior service cost | (9 | ) | (11 | ) | (9 | ) | — | — | — | |||||||||||||||||||
Amortization of transition obligation | — | — | — | (28 | ) | (28 | ) | (28 | ) | |||||||||||||||||||
519 | 2,350 | (1,164 | ) | (252 | ) | 280 | (88 | ) | ||||||||||||||||||||
Deferred taxes | (206 | ) | (933 | ) | (24 | ) | 462 | 100 | (111 | ) | 35 | |||||||||||||||||
Total recognized in other comprehensive income | 313 | 1,417 | (702 | ) | (152 | ) | 169 | (53 | ) | |||||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | 693 | $ | 1,711 | $ | 35 | $ | (343 | ) | $ | 110 | $ | 315 | $ | 88 | |||||||||||||
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Pension Benefits | SERP Benefits | |||||||||||||||||||||||
At December 31, | 2009 | 2008 | 2007 | 2009 | 2008 | 2007 | ||||||||||||||||||
Weighted Average Assumptions Used to Determine Benefit Obligations | ||||||||||||||||||||||||
Discount rate | 5.89 | % | 6.00 | % | 6.00 | % | 4.31 | % | 4.00 | % | 4.52 | % | ||||||||||||
Rate of compensation increase | 4.00 | 3.50 | 4.00 | 5.00 | 5.00 | 5.00 | ||||||||||||||||||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | ||||||||||||||||||||||||
Discount rate | 6.00 | % | 6.00 | % | 5.75 | % | 4.00 | % | 4.52 | % | 4.69 | % | ||||||||||||
Rate of compensation increase | 4.00 | 4.00 | 4.50 | 5.00 | 5.00 | 5.00 | ||||||||||||||||||
Expected long-term rate of return | 7.50 | 7.75 | 8.00 | — | — | — |
Equity securities | Dividend discount model, the smoothed earnings yield model and the equity risk premium model. | |
Fixed income securities | Current yield-to-maturity and forecasts of future yields | |
Other financial instruments | Comparison of the specific investment’s risk to that of fixed income and equity instruments and using judgment |
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Equity securities | Securities in emerging market countries as defined by the Morgan Stanley Emerging Markets Index, Short sales, Unregistered securities and Margin purchases | |
Fixed income securities | Securities of BBB quality or less, CMOs that have an inverse floating rate and whose payments don’t include principal or which aren’t certified and guaranteed by the U.S. Government, ABSs that aren’t issued or guaranteed by the U.S., or its agencies or its instrumentalities, Non-agency residential subprime or ALT-A MBSs and Structured Notes | |
Other financial instruments | Unhedged currency exposure in countries not defined as “high income economies” by the World Bank |
Weighted- | ||||||||||||||||
Average | ||||||||||||||||
Expected | ||||||||||||||||
Target | Percentage of Plan Assets | Long-term | ||||||||||||||
Allocation | at December 31, | Rate of | ||||||||||||||
2010 | 2009 | 2008 | Return | |||||||||||||
Asset Category | ||||||||||||||||
Cash equivalents | 0-20 | % | 13.6 | % | 10.0 | % | — | |||||||||
Equity securities | 40 - 60 | % | 45.9 | % | 48.0 | % | 4.6 | % | ||||||||
Fixed income securities | 40 - 60 | % | 40.5 | % | 41.4 | % | 2.1 | % | ||||||||
Other financial instruments | 0-5 | % | — | 0.6 | % | — | ||||||||||
Total | 100.0 | % | 100.0 | % |
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Fair Value Measurements at | ||||||||||||||||
December 31, 2009 Using: | ||||||||||||||||
Significant | ||||||||||||||||
Quoted Prices In | Other | Significant | ||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | |||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
(In thousands) | ||||||||||||||||
Cash Equivalents: | ||||||||||||||||
Short term investment funds | $ | 27,239 | $ | 27,239 | ||||||||||||
Equities: | ||||||||||||||||
Common Stock | 89,928 | $ | 89,928 | |||||||||||||
Depository receipts | 1,258 | 1,258 | ||||||||||||||
Other equities | 997 | 997 | ||||||||||||||
Total equities | 92,183 | 92,183 | ||||||||||||||
Fixed income securities: | ||||||||||||||||
Corporate bonds | 19,163 | 19,163 | ||||||||||||||
Government issues | 33,475 | 33,475 | ||||||||||||||
Collateralized mortgage obligations | 4,869 | 4,869 | ||||||||||||||
Mortgage-backed securities | 22,888 | 22,888 | ||||||||||||||
Other fixed income securities | 1,133 | 1,133 | ||||||||||||||
Total fixed income securities | 81,528 | 81,528 | ||||||||||||||
Total System Plan Assets | $ | 200,950 | $ | 92,183 | $ | 108,767 | ||||||||||
Plan | ||||
Assets | ||||
(In thousands) | ||||
Balance of recurring Level 3 assets at January 1, 2009 | $ | 790 | ||
Change in unrealized appreciation | 321 | |||
Realized losses | (348 | ) | ||
Sale proceeds | (763 | ) | ||
Balance of recurring Level 3 assets at December 31, 2009 | $ | — | ||
Year | Pension and SERP Payments | |||
(In thousands) | ||||
2010 | $ | 323 | ||
2011 | 337 | |||
2012 | 362 | |||
2013 | 378 | |||
2014 | 395 | |||
Following 5 years | 2,603 |
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Weighted | ||||||||||||||||
Weighted | Average | |||||||||||||||
Number | Average | Remaining | Aggregate | |||||||||||||
of | Exercise | Contractual | Intrinsic | |||||||||||||
Options | Price | Life | Value | |||||||||||||
Outstanding, December 31, 2008 | 81,205 | $ | 22.67 | |||||||||||||
Granted | — | — | ||||||||||||||
Exercised | (21,800 | ) | $ | 17.03 | ||||||||||||
Forfeited | — | — | ||||||||||||||
Expired | — | — | ||||||||||||||
Outstanding, December 31, 2009 | 59,405 | $ | 24.74 | 5.98 years | $ | 35,422 | ||||||||||
Vested or expected to vest | 55,850 | $ | 24.71 | 5.92 years | $ | 35,422 | ||||||||||
Exercisable, December 31, 2009 | 49,121 | $ | 24.61 | 5.88 years | $ | 35,422 |
Number | ||||||||
of | Exercise | |||||||
Range of Exercise Prices | Options | Price | ||||||
600 | $ | 12.53 | ||||||
3,300 | $ | 15.47 | ||||||
5,659 | $ | 24.00 | ||||||
44,443 | $ | 25.25 | ||||||
3,000 | $ | 26.55 | ||||||
2,403 | $ | 30.60 | ||||||
59,405 | ||||||||
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December 31, | 2009 | 2008 | 2007 | |||||||||
(In thousands, except per share data) | ||||||||||||
Intrinsic value of options exercised | $ | 29 | $ | 75 | $ | 130 | ||||||
Cash received from options exercised | 34 | — | 124 | |||||||||
Tax benefit realized from option exercises | 13 | 19 | 25 | |||||||||
Weighted average fair value of options granted | — | — | — |
Weighted | ||||||||
Average Grant- | ||||||||
Date | ||||||||
Shares | Fair Value | |||||||
Unvested, December 31, 2008 | 95,570 | $ | 21.55 | |||||
Granted | 58,792 | $ | 21.13 | |||||
Vested | (5,480 | ) | $ | 23.58 | ||||
Forfeited | — | $ | — | |||||
Unvested, December 31, 2009 | 148,882 | $ | 21.31 | |||||
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For the Years Ended December 31, | 2009 | 2008 | 2007 | |||||||||
(In thousands, except per share data) | ||||||||||||
Net Income | $ | 8,763 | $ | 8,750 | $ | 8,294 | ||||||
Common Equivalent Shares: | ||||||||||||
Weighted Average Common Shares Outstanding | 6,097 | 6,076 | 6,072 | |||||||||
Weighted Average Common Equivalent Shares Outstanding | 35 | 23 | 20 | |||||||||
Weighted Average Common and Equivalent Shares Outstanding | 6,132 | 6,099 | 6,092 | |||||||||
Basic Earnings per Share | $ | 1.44 | $ | 1.44 | $ | 1.37 | ||||||
Diluted Earnings per Share | $ | 1.43 | $ | 1.43 | $ | 1.36 |
December 31, 2009 | ||||
(In thousands) | ||||
2010 | $ | 827 | ||
2011 | 533 | |||
2012 | 443 | |||
2013 | 458 | |||
2014 | 467 | |||
Thereafter | 2,065 | |||
Total minimum rentals | $ | 4,793 | ||
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December 31, | 2009 | 2008 | ||||||
(In thousands) | ||||||||
Standby letters of credit | $ | 1,150 | $ | 1,781 | ||||
Loan commitments outstanding(1) | 25,380 | 27,752 | ||||||
Unused lines of credit | 103,417 | 103,237 | ||||||
Total commitments outstanding | $ | 129,947 | $ | 132,770 | ||||
(1) | Of the $25.4 million of loan commitments outstanding at December 31, 2009, $7.2 million are fixed rate commitments and $18.2 million are variable rate commitments |
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Fair Value Measurements at | ||||||||||||||||
December 31, 2009 Using: | ||||||||||||||||
Significant | ||||||||||||||||
Quoted Prices In | Other | Significant | ||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | |||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
(In thousands) | ||||||||||||||||
Financial Assets: | ||||||||||||||||
Available for sale securities | ||||||||||||||||
U.S. GSE securities | $ | 45,939 | $ | 45,939 | ||||||||||||
State and municipal obligations | 41,805 | 41,805 | ||||||||||||||
Residential mortgage-backed securities | 106,337 | 106,337 | ||||||||||||||
Residential collateralized mortgage obligations | 112,031 | 112,031 | ||||||||||||||
Total available for sale | $ | 306,112 | $ | 306,112 | ||||||||||||
Fair Value Measurements at | ||||||||||||||||
December 31, 2008 Using: | ||||||||||||||||
Significant | ||||||||||||||||
Quoted Prices In | Other | Significant | ||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | |||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
(In thousands) | ||||||||||||||||
Financial Assets: | ||||||||||||||||
Available for sale securities | ||||||||||||||||
U.S. GSE securities | $ | 30,134 | $ | 30,134 | ||||||||||||
State and municipal obligations | 48,588 | 48,588 | ||||||||||||||
Residential mortgage-backed securities | 146,955 | 146,955 | ||||||||||||||
Residential collateralized mortgage obligations | 85,018 | 85,018 | ||||||||||||||
Total available for sale | $ | 310,695 | $ | 310,695 | ||||||||||||
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Fair Value Measurements at | ||||||||||||||||
December 31, 2009 Using: | ||||||||||||||||
Significant | ||||||||||||||||
Quoted Prices In | Other | Significant | ||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | |||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
(In thousands) | ||||||||||||||||
Impaired loans | $ | 48 | $ | 48 |
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December 31, | 2009 | 2008 | ||||||||||||||
(In thousands) | Carrying | Fair | Carrying | Fair | ||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Financial Assets: | ||||||||||||||||
Cash and due from banks | $ | 27,108 | $ | 27,108 | $ | 24,744 | $ | 24,744 | ||||||||
Interest bearing deposits with banks | 7,039 | 7,039 | 4,141 | 4,141 | ||||||||||||
Securities available for sale | 306,112 | 306,112 | 310,695 | 310,695 | ||||||||||||
Securities restricted | 1,205 | n/a | 3,800 | n/a | ||||||||||||
Securities held to maturity | 77,424 | 78,330 | 43,444 | 43,890 | ||||||||||||
Loans, net | 441,993 | 449,496 | 425,730 | 437,265 | ||||||||||||
Accrued interest receivable | 3,679 | 3,679 | 3,626 | 3,626 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Demand and other deposits | 793,538 | 794,512 | 659,085 | 660,176 | ||||||||||||
Federal funds purchased and Federal Home Loan Bank overnight borrowings | — | — | 70,900 | 70,882 | ||||||||||||
Federal Home Loan Bank term advances | — | — | 30,000 | 29,998 | ||||||||||||
Repurchase agreements | 15,000 | 15,210 | 15,000 | 15,368 | ||||||||||||
Junior subordinated debentures | 16,002 | 15,500 | — | — | ||||||||||||
Accrued interest payable | 531 | 531 | 672 | 672 |
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Bridge Bancorp, Inc. (Consolidated) As of December 31, | 2009 | |||||||||||||||||||||||
(Dollars In thousands) | To Be Well | |||||||||||||||||||||||
For Capital | Capitalized Under | |||||||||||||||||||||||
Adequacy | Prompt Corrective | |||||||||||||||||||||||
Actual | Purposes | Action Provisions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Total Capital (to risk weighted assets) | $ | 80,378 | 14.5 | % | $ | 44,361 | 8.0 | % | n/a | n/a | ||||||||||||||
Tier 1 Capital (to risk weighted assets) | 74,333 | 13.4 | % | 22,180 | 4.0 | % | n/a | n/a | ||||||||||||||||
Tier 1 Capital (to average assets) | 74,333 | 8.6 | % | 34,499 | 4.0 | % | n/a | n/a |
As of December 31, | 2008 | |||||||||||||||||||||||
(Dollars In thousands) | To Be Well | |||||||||||||||||||||||
For Capital | Capitalized Under | |||||||||||||||||||||||
Adequacy | Prompt Corrective | |||||||||||||||||||||||
Actual | Purposes | Action Provisions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Total Capital (to risk weighted assets) | $ | 58,360 | 11.1 | % | $ | 42,137 | 8.0 | % | n/a | n/a | ||||||||||||||
Tier 1 Capital (to risk weighted assets) | 54,288 | 10.3 | % | 21,068 | 4.0 | % | n/a | n/a | ||||||||||||||||
Tier 1 Capital (to average assets) | 54,288 | 6.9 | % | 31,304 | 4.0 | % | n/a | n/a |
Bridgehampton National Bank As of December 31, | 2009 | |||||||||||||||||||||||
(Dollars In thousands) | To Be Well | |||||||||||||||||||||||
For Capital | Capitalized Under | |||||||||||||||||||||||
Adequacy | Prompt Corrective | |||||||||||||||||||||||
Actual | Purposes | Action Provisions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Total Capital (to risk weighted assets) | $ | 74,191 | 13.4 | % | $ | 44,337 | 8.0 | % | $ | 55,421 | 10.0 | % | ||||||||||||
Tier 1 Capital (to risk weighted assets) | 68,146 | 12.3 | % | 22,168 | 4.0 | % | 33,253 | 6.0 | % | |||||||||||||||
Tier 1 Capital (to average assets) | 68,146 | 7.9 | % | 34,494 | 4.0 | % | 43,117 | 5.0 | % |
As of December 31, | 2008 | |||||||||||||||||||||||
(In thousands) | To Be Well | |||||||||||||||||||||||
For Capital | Capitalized Under | |||||||||||||||||||||||
Adequacy | Prompt Corrective | |||||||||||||||||||||||
Actual | Purposes | Action Provisions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Total Capital (to risk weighted assets) | $ | 55,431 | 10.5 | % | $ | 42,130 | 8.0 | % | $ | 52,662 | 10.0 | % | ||||||||||||
Tier 1 Capital (to risk weighted assets) | 51,359 | 9.8 | % | 21,065 | 4.0 | % | 31,597 | 6.0 | % | |||||||||||||||
Tier 1 Capital (to average assets) | 51,359 | 6.6 | % | 31,279 | 4.0 | % | 39,099 | 5.0 | % |
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December 31, | 2009 | 2008 | ||||||
(In thousands) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 7,490 | $ | 4,309 | ||||
Other assets | 300 | 83 | ||||||
Investment in the Bank | 71,549 | 53,210 | ||||||
Total Assets | $ | 79,339 | $ | 57,602 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Junior subordinated debentures | $ | 16,002 | $ | — | ||||
Dividends payable | 1,441 | 1,423 | ||||||
Other liabilities | 41 | 40 | ||||||
Total Liabilities | 17,484 | 1,463 | ||||||
Total Stockholders’ Equity | 61,855 | 56,139 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 79,339 | $ | 57,602 | ||||
Years ended December 31, | 2009 | 2008 | 2007 | |||||||||
(In thousands) | ||||||||||||
Dividends from the Bank | $ | 4,500 | $ | 3,000 | $ | 11,029 | ||||||
Interest expense | 190 | — | — | |||||||||
Non interest expense | 34 | 149 | 1 | |||||||||
Income before income taxes and equity in undistributed earnings of the Bank | 4,276 | 2,851 | 11,028 | |||||||||
Income tax benefit | (69 | ) | (50 | ) | — | |||||||
Income before equity in undistributed earnings of the Bank | 4,345 | 2,901 | 11,028 | |||||||||
Equity in undistributed (overdistributed) earnings of the Bank | 4,418 | 5,849 | (2,734 | ) | ||||||||
Net income | $ | 8,763 | $ | 8,750 | $ | 8,294 | ||||||
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Years ended December 31, | 2009 | 2008 | 2007 | |||||||||
(In thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 8,763 | $ | 8,750 | $ | 8,294 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Equity in (undistributed) overdistributed earnings of the Bank | (4,418 | ) | (5,849 | ) | 2,734 | |||||||
(Increase) decrease in other assets | (217 | ) | 1,319 | 197 | ||||||||
Increase (decrease) in other liabilities | 1 | 57 | (13 | ) | ||||||||
Net cash provided by operating activities | 4,129 | 4,277 | 11,212 | |||||||||
Cash flows from investing activities: | ||||||||||||
Investment in the Bank | (11,500 | ) | — | — | ||||||||
Net cash used in investing activities | (11,500 | ) | — | — | ||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from issuance of junior subordinated debentures | 16,002 | — | — | |||||||||
Net proceeds from issuance of common stock | 255 | — | — | |||||||||
Net proceeds from exercise of stock options | 47 | — | 149 | |||||||||
Repurchase of surrendered stock from exercise of stock options and vesting of restricted stock awards | (36 | ) | (71 | ) | — | |||||||
Dividends paid | (5,716 | ) | (5,648 | ) | (5,612 | ) | ||||||
Net cash provided by (used in) financing activities | 10,552 | (5,719 | ) | (5,463 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 3,181 | (1,442 | ) | 5,749 | ||||||||
Cash and cash equivalents at beginning of year | 4,309 | 5,751 | 2 | |||||||||
Cash and cash equivalents at end of year | $ | 7,490 | $ | 4,309 | $ | 5,751 | ||||||
Years Ended December 31, | 2009 | 2008 | 2007 | |||||||||
(In thousands) | ||||||||||||
Unrealized holding gains (losses) on available for sale securities | $ | 4,085 | $ | 5,314 | $ | 2,802 | ||||||
Reclassification adjustment for (gains) losses realized in income | (529 | ) | — | 101 | ||||||||
Income tax effect | (1,724 | ) | (2,110 | ) | (1,165 | ) | ||||||
Net change in unrealized gain (loss) on available for sale securities | 1,832 | 3,204 | 1,738 | |||||||||
Change in post-retirement obligation | (267 | ) | (2,629 | ) | 1,252 | |||||||
Income tax effect | 106 | 1,044 | (497 | ) | ||||||||
Net change in post-retirement obligation | (161 | ) | (1,585 | ) | 755 | |||||||
Total | $ | 1,671 | $ | 1,619 | $ | 2,493 | ||||||
Balance as of | Balance as of | |||||||||||
December 31, | Current Period | December 31, | ||||||||||
(In thousands) | ||||||||||||
Unrealized gains on available for sale securities | $ | 3,417 | $ | 1,832 | $ | 5,249 | ||||||
Unrealized gains (loss) on pension benefits | (1,566 | ) | (161 | ) | (1,727 | ) | ||||||
Total | $ | 1,851 | $ | 1,671 | $ | 3,522 | ||||||
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2009 Quarters Ended, | March 31, | June 30, | September 30, | December 31, | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Interest income | $ | 11,023 | $ | 10,864 | $ | 10,727 | $ | 10,754 | ||||||||
Interest expense | 1,940 | 1,935 | 1,916 | 2,024 | ||||||||||||
Net interest income | 9,083 | 8,929 | 8,811 | 8,730 | ||||||||||||
Provision for loan losses | 900 | 1,400 | 900 | 950 | ||||||||||||
Net interest income after provision for loan losses | 8,183 | 7,529 | 7,911 | 7,780 | ||||||||||||
Non interest income | 1,179 | 1,925 | 1,565 | 1,505 | ||||||||||||
Non interest expenses | 6,089 | 6,450 | 6,064 | 6,162 | ||||||||||||
Income before income taxes | 3,273 | 3,004 | 3,412 | 3,123 | ||||||||||||
Income tax expense | 1,064 | 981 | 1,092 | 912 | ||||||||||||
Net income | $ | 2,209 | $ | 2,023 | $ | 2,320 | $ | 2,211 | ||||||||
Basic earnings per share | $ | 0.36 | $ | 0.33 | $ | 0.38 | $ | 0.36 | ||||||||
Diluted earnings per share | $ | 0.36 | $ | 0.33 | $ | 0.38 | $ | 0.36 | ||||||||
2008 Quarters Ended, | March 31, | June 30, | September 30, | December 31, | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Interest income | $ | 9,194 | $ | 9,558 | $ | 10,075 | $ | 10,793 | ||||||||
Interest expense | 2,546 | 2,248 | 2,266 | 2,429 | ||||||||||||
Net interest income | 6,648 | 7,310 | 7,809 | 8,364 | ||||||||||||
Provision for loan losses | 200 | 325 | 550 | 925 | ||||||||||||
Net interest income after provision for loan losses | 6,448 | 6,985 | 7,259 | 7,439 | ||||||||||||
Non interest income | 1,446 | 1,609 | 1,677 | 1,332 | ||||||||||||
Non interest expenses | 4,989 | 5,283 | 5,401 | 5,484 | ||||||||||||
Income before income taxes | 2,905 | 3,311 | 3,535 | 3,287 | ||||||||||||
Income tax expense | 935 | 1,076 | 1,179 | 1,098 | ||||||||||||
Net income | $ | 1,970 | $ | 2,235 | $ | 2,356 | $ | 2,189 | ||||||||
Basic earnings per share | $ | 0.32 | $ | 0.37 | $ | 0.39 | $ | 0.36 | ||||||||
Diluted earnings per share | $ | 0.32 | $ | 0.37 | $ | 0.39 | $ | 0.36 |
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Board of Directors
Bridge Bancorp, Inc.
Bridgehampton, New York
March 11, 2010
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Number of securities to | Weighted Average | |||||||||||
be Issued upon | Exercise Price with | Number of Securities | ||||||||||
Equity Compensation | Exercise | respect to | Remaining Available | |||||||||
Plan approved by | of outstanding options | Outstanding | for | |||||||||
Stockholders | and awards | Stock Options | Issuance under the Plan | |||||||||
1996 Equity Incentive Plan | 15,462 | $ | 23.23 | — | ||||||||
2006 Equity Incentive Plan | 192,825 | $ | 25.25 | 418,995 | ||||||||
Total | 208,287 | $ | 24.74 | 418,995 | ||||||||
Page No. | ||||
32 | ||||
33 | ||||
34 | ||||
35 | ||||
36 | ||||
62 |
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BRIDGE BANCORP, INC. | ||||
Registrant | ||||
March 11, 2010 | /s/ Kevin M. O’Connor | |||
President and Chief Executive Officer | ||||
March 11, 2010 | /s/ Howard H. Nolan | |||
Senior Executive Vice President, Chief Financial | ||||
Officer and Treasurer | ||||
March 11, 2010 | /s/ Sarah K. Quinn | |||
Vice President, Controller and Principal | ||||
Accounting Officer |
March 11, 2010 | /s/ Marcia Z. Hefter | ,Director | ||
March 11, 2010 | /s/ Dennis A. Suskind | ,Director | ||
March 11, 2010 | /s/ Kevin M. O’Connor | ,Director | ||
March 11, 2010 | /s/ Emanuel Arturi | ,Director | ||
March 11, 2010 | /s/ Thomas E. Halsey | ,Director | ||
March 11, 2010 | /s/ R. Timothy Maran | ,Director | ||
March 11, 2010 | /s/ Charles I. Massoud | ,Director | ||
Charles I. Massoud | ||||
March 11, 2010 | /s/ Albert E. McCoy Jr. | ,Director | ||
March 11, 2010 | /s/ Howard H. Nolan | ,Director | ||
March 11, 2010 | /s/ Rudolph J. Santoro | ,Director | ||
March 11, 2010 | /s/ Thomas J. Tobin | ,Director |
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Exhibit Number | Description of Exhibit | Exhibit | ||||
3.1 | Certificate of Incorporation of the registrant (incorporated by reference to Registrant’s amended Form 10, File No. 0-18546, filed October 15, 1990) | * | ||||
3.1(i) | Certificate of Amendment of the Certificate of Incorporation of the Registrant (incorporated by reference to Registrant’s Form 10, File No. 0-18546, filed August 13, 1999) | * | ||||
3.1(ii) | Certificate of Amendment of the Certificate of Incorporation of the Registrant (incorporated by reference to Registrant’s Definitive Proxy Statement, File No. 0-18546, filed November 18, 2008) | * | ||||
3.2 | Revised By-laws of the Registrant (incorporated by reference to Registrant’s Form 8-K, File No. 0-18546, filed December 17, 2007) | * | ||||
10.1 | Amended and Restated Employment Contract — Thomas J. Tobin (incorporated by reference to Registrant’s Form 8-K, File No. 0-18546, filed October 9, 2007) | * | ||||
10.2 | Amended and Restated Employment Contract — Howard H. Nolan (incorporated by reference to Registrant’s Form 10-K, File No. 0-18546, filed March 12, 2009) | * | ||||
10.3 | Employment Contract — Kevin M. O’Connor (incorporated by reference to Registrant’s Form 8-K, File No. 0-18546, filed October 9, 2007) | * | ||||
10.5 | Equity Incentive Plan (incorporated by reference to Registrant’s Form S-8, File No. 0-18546, filed August 14, 2006) | * | ||||
10.6 | Supplemental Executive Retirement Plan (Revised for 409A) (incorporated by reference to Registrant’s Form 10-K, File No. 0-18546, filed March 14, 2008) | * | ||||
23 | Consent of Independent Registered Public Accounting Firm | |||||
31.1 | Certification of Principal Executive Officer pursuant to Rule 13a-14(a) | |||||
31.2 | Certification of Principal Financial Officer pursuant to Rule 13a-14(a) | |||||
32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) and U.S.C. Section 1350 |
* | Denotes incorporated by reference. |
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