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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of report (Date of earliest event reported): December 20, 2006
FIRST IPSWICH BANCORP
(Exact name of registrant as specified in its charter)
Massachusetts 333-114018 04-2955061
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
31 Market Street, Ipswich, Massachusetts 01938
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (978) 356-3700
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communication pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition
On December 22, 2006 First Ipswich Bancorp filed a Form 10-QSB/A to report
restated financial results for the quarter ended September 30, 2006. The
restatement was made to reflect the correction of the valuation of securities
identified for sale in the Form 10-QSB filed on November 14, 2006 (Original
Filing) because the valuations reported in the Original Filing did not reflect
market prices as of the reporting date, September 30, 2006. As a result of the
restatement, the net loss for the quarter ended September 30, 2006 was reduced
to $626,000 from $812,000 in the Original Filing. The Form 10-QSB/A dated
December 22, 2006 is incorporated herein by reference.
Item 2.06 Material Impairments.
On December 20, 2006, the Board of Directors of the First National Bank of
Ipswich (the "Bank"), a wholly owned subsidiary of First Ipswich Bancorp (the
"Bancorp"), concurred with Management's decision to sell an investment security
and record an impairment charge as required under generally accepted accounting
principles. First Ipswich Bancorp expects to record an impairment charge of
approximately $950,000 to $975,000 ($600,000 to $625,000 after tax) in the
fourth quarter of 2006. The impairment analysis was completed with the
assistance of a third-party consultant who specializes in security portfolio
analysis.
The Bank purchased this collateralized debt obligation in December 2004. As
disclosed in previous financial statements, Management has reviewed this
security for other than temporary impairment for each of the past two quarters.
As a result of the decision (on December 20, 2006) to sell the security, the
security now is being written down to its estimated fair value.
The Bank does not believe that the impairment charge will result in any future
cash expenditures.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRST IPSWICH BANCORP
Date: December 27, 2006 By: /s/ Timothy L. Felter
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Timothy L. Felter
Senior Vice President and
Chief Financial Officer