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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): February 5, 2007
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))
Item 1.01 Entry into a Material Definitive Agreement
On February 5, 2007 The First National Bank of Ipswich (the "Bank"), a
wholly-owned subsidiary of First Ipswich Bancorp (the "Company"), entered into
an agreement with Southern New Hampshire Bank and Trust Company to sell
approximately $15 million of the loans of the Bank's Londonderry, New Hampshire
branch ("Branch"). The agreement provides that the Bank will receive a premium
of 2.5% of the unpaid principal balance of the loans as of the closing. If the
transaction had closed on such date, the gross premium would have been
approximately $375,000. The estimated net gain, after transaction expenses and
taxes, is estimated to be between $175,000 and $225,000.
This transaction is expected to close in March 2007.
Item 2.05 Costs Associated with Exit or Disposal Activities.
On January 17, 2007, the Bank's Board of Directors approved the closing of the
Londonderry New Hampshire Branch. As part of the closing, the Bank plans to
terminate the Branch employees and incur other costs associated with the closing
of the Branch. These costs include employee related expenses of approximately
$50,000 and other costs of approximately $75,000. The Company anticipates that
the after tax cost of the Branch closing will be approximately $70,000 to
$90,000. The Company expects to complete the closing by May 31, 2007.
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: February 8, 2007 By: /s/ Timothy L. Felter
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Timothy L. Felter
Senior Vice President and
Chief Financial Officer