Lincoln
Park Bancorp
|
(Name
of Small Business Issuer in its
Charter)
|
Federal
|
61-1479859
|
|
(State
or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S.
Employer Identification Number)
|
31
Boonton Turnpike, Lincoln Park, New Jersey
|
07035
|
|
(Address
of Principal Executive Office)
|
(Zip
Code)
|
(973)
694-0330
|
(Issuer’s
Telephone Number Including Area
Code)
|
Common
Stock, par value $0.01 per share
|
(Title
of Class)
|
1. |
Portions
of Annual Report to Stockholders (Parts II and
IV)
|
2. |
Proxy
Statement for the 2007 Annual Meeting of Stockholders (Part
III)
|
ITEM 1. |
Business
|
At
December 31,
|
|||||||||||||
2006
|
2005
|
||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||
(Dollars
in Thousands)
|
|||||||||||||
Real
estate loans:
|
|||||||||||||
One-
to four-family
|
$
|
43,659
|
64.73
|
%
|
$
|
42,449
|
63.92
|
%
|
|||||
Multi-family
|
857
|
1.27
|
303
|
0.46
|
|||||||||
Commercial
|
1,913
|
2.84
|
2,415
|
3.64
|
|||||||||
Construction/
Land
|
437
|
0.65
|
629
|
0.95
|
|||||||||
Total
real estate loans
|
46,866
|
69.49
|
%
|
45,796
|
68.96
|
%
|
|||||||
Consumer
loans:
|
|||||||||||||
Passbook
or certificate
|
59
|
0.09
|
%
|
73
|
0.11
|
%
|
|||||||
Home
equity lines of credit
|
5,304
|
7.86
|
6,599
|
9.94
|
|||||||||
Home
equity
|
14,489
|
21.49
|
13,464
|
20.27
|
|||||||||
Automobile
|
218
|
0.32
|
255
|
0.38
|
|||||||||
Personal
secured
|
394
|
0.58
|
125
|
0.19
|
|||||||||
Personal
unsecured
|
88
|
0.13
|
75
|
0.11
|
|||||||||
Overdraft
line of credit
|
27
|
0.04
|
22
|
0.03
|
|||||||||
Total
consumer loans
|
20,579
|
30.51
|
%
|
20,613
|
31.04
|
%
|
|||||||
Total
loans
|
67,445
|
100.00
|
%
|
66,409
|
100.00
|
%
|
|||||||
Less:
|
|||||||||||||
Loans
in process
|
—
|
—
|
|||||||||||
Allowance
for loan losses
|
136
|
159
|
|||||||||||
Deferred
loan (costs), net
|
(142
|
)
|
(133
|
)
|
|||||||||
(6
|
)
|
26
|
|||||||||||
Total
loans receivable, net
|
$
|
67,451
|
$
|
66,383
|
One-
to four-family
|
Multi-family
|
Commercial
real estate
|
Construction/
Land
|
Consumer
|
Total
|
||||||||||||||
(In
Thousands)
|
|||||||||||||||||||
One
year or less
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
270
|
$
|
1,069
|
$
|
1,339
|
|||||||
After
one year:
|
|||||||||||||||||||
More
than one to three years
|
1,234
|
—
|
117
|
—
|
337
|
2,573
|
|||||||||||||
More
than three to five years
|
3,590
|
—
|
—
|
167
|
876
|
4,044
|
|||||||||||||
More
than five to ten years
|
4,274
|
56
|
603
|
—
|
2,818
|
5,317
|
|||||||||||||
More
than ten to twenty years
|
4,983
|
111
|
259
|
—
|
15,412
|
8,460
|
|||||||||||||
More
than twenty years
|
13,161
|
690
|
934
|
—
|
67
|
28,943
|
|||||||||||||
Total
due after one year
|
16,417
|
857
|
1,913
|
167
|
19,510
|
18,108
|
|||||||||||||
Total
due
|
$
|
42,425
|
$
|
857
|
$
|
1,913
|
$
|
437
|
$
|
20,579
|
$
|
64,872
|
Due
After December 31, 2007
|
||||||||||
Fixed
|
Adjustable
|
Total
|
||||||||
(In
Thousands)
|
||||||||||
One-
to four-family
|
$
|
29,577
|
$
|
12,848
|
$
|
42,425
|
||||
Multi-family
|
278
|
579
|
857
|
|||||||
Commercial
real estate
|
603
|
1,310
|
1,913
|
|||||||
Construction/Land
|
167
|
—
|
167
|
|||||||
Consumer
|
14,485
|
5,025
|
19,510
|
|||||||
Total
loans
|
$
|
45,110
|
$
|
20,996
|
$
|
64,872
|
Years Ended December 31,
|
|||||||
2006
|
2005
|
||||||
(In
Thousands)
|
|||||||
Beginning
of period
|
$
|
66,383
|
$
|
57,154
|
|||
Originations
by Type:
|
|||||||
Real
estate mortgage:
|
|||||||
One-
to four-family
|
7,425
|
9,988
|
|||||
Multi-family
|
585
|
—
|
|||||
Commercial
|
555
|
862
|
|||||
Construction
|
—
|
—
|
|||||
Consumer:
|
|||||||
Passbook
or certificate
|
12
|
17
|
|||||
Home
equity lines of credit
|
5,928
|
6,574
|
|||||
Home
equity
|
4,503
|
7,170
|
|||||
Automobile
|
86
|
225
|
|||||
Personal
secured/unsecured
|
872
|
179
|
|||||
Overdraft
line of credit
|
97
|
6
|
|||||
Total
loans originated
|
20,063
|
25,021
|
|||||
Purchases:
|
|||||||
Total
purchases
|
—
|
—
|
|||||
Sales:
|
|||||||
Total
sales
|
—
|
—
|
|||||
Principal
repayments
|
18,973
|
15,824
|
|||||
Total
reductions
|
18,973
|
15,824
|
|||||
Increase
in other items, net
|
(22
|
)
|
32
|
||||
Net
increase
|
1,068
|
9,229
|
|||||
Ending
balance
|
$
|
67,451
|
$
|
66,383
|
At
December 31,
|
|||||||
2006
|
2005
|
||||||
Non-accruing
loans:
|
(Dollars
in Thousands)
|
||||||
One-
to four-family
|
$
|
41
|
$
|
279
|
|||
Multi-family
|
—
|
—
|
|||||
Commercial
real estate
|
117
|
—
|
|||||
Construction
|
—
|
—
|
|||||
Consumer
- Home equity loans
|
—
|
—
|
|||||
Total
|
158
|
279
|
|||||
Accruing
loans delinquent 90 days or more:
|
|||||||
One-
to four-family
|
—
|
—
|
|||||
Multi-family
|
—
|
—
|
|||||
Commercial
real estate
|
—
|
—
|
|||||
Construction
|
¾
|
¾
|
|||||
Consumer
- Passbook or Certificate
|
¾
|
¾
|
|||||
Total
|
¾
|
¾
|
|||||
Foreclosed
assets
|
—
|
—
|
|||||
Total
non-performing assets
|
$
|
158
|
$
|
279
|
|||
Total
as a percentage of total assets
|
.17
|
%
|
0.30
|
%
|
|||
Total
as a percent of total loans
|
.23
|
%
|
0.42
|
%
|
|||
Allowance
for loan loss related to non-performing loans
|
$
|
1
|
$
|
27
|
At
December 31, 2006
|
At
December 31, 2005
|
||||||||||||||||||||||||
60-89
Days
|
90
Days or More
|
60-89
Days
|
90
Days or More
|
||||||||||||||||||||||
Number
of
Loans
|
Principal
Balance
of
Loans
|
Number
of
Loans
|
Principal
Balance
of
Loans
|
Number
of
Loans
|
Principal
Balance
of
Loans
|
Number
of
Loans
|
Principal
Balance
of
Loans
|
||||||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||||||||
Real
estate mortgage:
|
|||||||||||||||||||||||||
One-
to four-family
|
1
|
$
|
205
|
1
|
$
|
41
|
—
|
$
|
—
|
2
|
$
|
279
|
|||||||||||||
Multi-
family
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Commercial
|
—
|
—
|
1
|
117
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Construction
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Total
real estate loans
|
1
|
205
|
2
|
158
|
—
|
—
|
2
|
279
|
|||||||||||||||||
Consumer:
|
|||||||||||||||||||||||||
Passbook
or certificate
|
1
|
7
|
¾
|
¾
|
—
|
—
|
¾
|
¾
|
|||||||||||||||||
Home
equity lines of credit
|
¾
|
¾
|
—
|
—
|
1
|
22
|
—
|
—
|
|||||||||||||||||
Home
equity
|
1
|
75
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Automobile
|
¾
|
¾
|
—
|
—
|
1
|
7
|
—
|
—
|
|||||||||||||||||
Personal
unsecured
|
¾
|
¾
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Overdraft
line of credit
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Total
other loans
|
2
|
82
|
¾
|
¾
|
2
|
29
|
¾
|
¾
|
|||||||||||||||||
Total
delinquent loans
|
3
|
$
|
287
|
2
|
$
|
158
|
2
|
$
|
29
|
2
|
$
|
279
|
|||||||||||||
Delinquent
loans to total loans
|
.43
|
%
|
.23
|
%
|
.04
|
%
|
0.42
|
%
|
At
or For the
Years
Ended December 31,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in Thousands)
|
|||||||
Balance
at beginning of period
|
$
|
159
|
$
|
156
|
|||
Total
charge-offs
|
(1
|
)
|
(4
|
)
|
|||
Total
recoveries
|
—
|
1
|
|||||
Net
charge-offs
|
(1
|
)
|
(3
|
)
|
|||
Provision
(credited) charged to operations
|
(22
|
)
|
6
|
||||
Ending
balance
|
$
|
136
|
$
|
159
|
|||
Ratio
of non-performing assets to total assets at the end of
period
|
0.17
|
%
|
0.30
|
%
|
|||
Ratio
of net charge-offs during the period to loans outstanding during
the
period
|
0.00
|
%
|
0.01
|
%
|
|||
Ratio
of net charge-offs during the period to non-performing
assets
|
0.07
|
%
|
0.38
|
%
|
At
December 31,
|
|||||||||||||||||||
2006
|
2005
|
||||||||||||||||||
Amount
of Loan Loss Allowance
|
Loan
Amounts by Category
|
Percent
of
Loans
in
Each
Category
to
Total
Loans
|
Amount
of Loan Loss Allowance
|
Loan
Amounts by Category
|
Percent
of
Loans
in
Each
Category
to
Total
Loans
|
||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||
Real
estate mortgage:
|
|||||||||||||||||||
One-
to four-family
|
$
|
66
|
$
|
44,096
|
65.38
|
%
|
$
|
87
|
$
|
42,449
|
63.92
|
%
|
|||||||
Multi-
family
|
4
|
857
|
1.27
|
2
|
303
|
0.46
|
|||||||||||||
Commercial
|
10
|
1,913
|
2.84
|
12
|
2,415
|
3.64
|
|||||||||||||
Construction
|
—
|
—
|
0.00
|
3
|
629
|
0.95
|
|||||||||||||
Consumer:
|
|||||||||||||||||||
Passbook
or certificate
|
—
|
59
|
0.09
|
—
|
73
|
0.11
|
|||||||||||||
Home
equity
|
36
|
14,489
|
21.49
|
34
|
13,464
|
20.27
|
|||||||||||||
Home
equity lines of credit
|
13
|
5,304
|
7.86
|
17
|
6,599
|
9.94
|
|||||||||||||
Automobile
|
2
|
218
|
0.32
|
2
|
255
|
0.38
|
|||||||||||||
Personal
secured/unsecured
|
5
|
482
|
0.71
|
2
|
200
|
0.30
|
|||||||||||||
Overdraft
line of credit
|
—
|
27
|
0.04
|
—
|
22
|
0.03
|
|||||||||||||
Total
|
$
|
136
|
$
|
67,445
|
100.00
|
%
|
$
|
159
|
$
|
66,409
|
100.00
|
%
|
At
December 31,
|
|||||||||||||
2006
|
2005
|
||||||||||||
Book
Value
|
%
of Total
|
Book
Value
|
%
of Total
|
||||||||||
(Dollars
in Thousands)
|
|||||||||||||
Investment
securities available for sale:
|
|||||||||||||
U.S.
Government agencies
|
$
|
1,962
|
8.31
|
%
|
$
|
2,458
|
10.09
|
%
|
|||||
Corporate
bonds
|
—
|
—
|
—
|
—
|
|||||||||
Municipal
bonds
|
347
|
1.47
|
350
|
1.44
|
|||||||||
Mortgage-backed
securities
|
84
|
0.36
|
114
|
0.47
|
|||||||||
Collateralized
mortgage obligations
|
—
|
—
|
—
|
—
|
|||||||||
Equity
Securities
|
181
|
0.77
|
80
|
0.33
|
|||||||||
Total
|
2,574
|
10.91
|
3,002
|
12.33
|
|||||||||
Investment
securities held to maturity:
|
|||||||||||||
U.S.
Government agencies
|
15,633
|
66.25
|
15,132
|
62.14
|
|||||||||
Corporate
bonds
|
1,155
|
4.90
|
1,840
|
7.56
|
|||||||||
Municipal
bonds
|
566
|
2.40
|
591
|
2.43
|
|||||||||
Mortgage-backed
securities
|
981
|
4.16
|
1,254
|
5.15
|
|||||||||
Collateralized
mortgage obligations
|
—
|
—
|
—
|
—
|
|||||||||
Total
|
18,335
|
77.71
|
18,817
|
77.27
|
|||||||||
Other
interest-earning assets:
|
|||||||||||||
Interest-earning
deposits
|
1,372
|
5.81
|
688
|
2.83
|
|||||||||
Federal
funds sold
|
—
|
—
|
—
|
—
|
|||||||||
Term
deposits
|
190
|
0.81
|
581
|
2.39
|
|||||||||
FHLB
stock
|
1,122
|
4.76
|
1,265
|
5.19
|
|||||||||
2,684
|
11.38
|
2,534
|
10.41
|
||||||||||
Total
|
$
|
23,593
|
100.00
|
%
|
$
|
24,353
|
100.00
|
%
|
At
December 31,
|
|||||||||||||
2006
|
2005
|
||||||||||||
Book
Value
|
%
of Total
|
Book
Value
|
%
of Total
|
||||||||||
(Dollars
in Thousands)
|
|||||||||||||
Mortgage-backed
securities held to maturity:
|
|||||||||||||
Ginnie
Mae
|
$
|
474
|
48.32
|
%
|
$
|
629
|
50.16
|
%
|
|||||
Freddie
Mac
|
16
|
1.63
|
23
|
1.83
|
|||||||||
Fannie
Mae
|
491
|
50.05
|
602
|
48.01
|
|||||||||
Total
|
$
|
981
|
100.00
|
%
|
$
|
1,254
|
100.00
|
%
|
|||||
At
December 31,
|
|||||||||||||
2006
|
2005
|
||||||||||||
Book
Value
|
%
of Total
|
Book
Value
|
%
of Total
|
||||||||||
(Dollars
in Thousands)
|
|||||||||||||
Mortgage-backed
securities available for sale:
|
|||||||||||||
Ginnie
Mae
|
$
|
84
|
100.00
|
%
|
$
|
114
|
100.00
|
%
|
|||||
Freddie
Mac
|
—
|
—
|
—
|
—
|
|||||||||
Fannie
Mae
|
—
|
—
|
—
|
—
|
|||||||||
Total
|
$
|
84
|
100.00
|
%
|
$
|
114
|
100.00
|
%
|
At
December 31, 2006
|
Total
Investment Securities
|
|||||||||||||||||||||||||||||||||
Less
Than 1 Year
|
1
to 5 Years
|
5
to 10 Years
|
Over
10 Years
|
|||||||||||||||||||||||||||||||
Book
Value
|
Weighted
Average Interest Rate
|
Book
Value
|
Weighted
Average Interest Rate
|
Book
Value
|
Weighted
Average Interest Rate
|
Book
Value
|
Weighted
Average Interest Rate
|
Book
Value
|
Weighted
Average Interest Rate
|
Market
Value
|
||||||||||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||||||||||||||||
Available
for Sale:
|
||||||||||||||||||||||||||||||||||
Equity
|
$
|
151
|
—
|
%
|
$
|
—
|
—
|
%
|
$
|
—
|
—
|
%
|
$
|
—
|
—
|
%
|
$
|
151
|
—
|
%
|
$
|
181
|
||||||||||||
U.S.
Government agencies
|
—
|
—
|
500
|
4.00
|
500
|
4.00
|
1,000
|
4.50
|
2,000
|
4.25
|
1,962
|
|||||||||||||||||||||||
Corporate
bonds
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||
Municipal
bonds
|
—
|
—
|
251
|
3.63
|
100
|
3.35
|
—
|
—
|
351
|
3.55
|
347
|
|||||||||||||||||||||||
Mortgage-backed
securities
|
—
|
—
|
—
|
—
|
—
|
—
|
83
|
5.65
|
83
|
5.65
|
84
|
|||||||||||||||||||||||
Total
available for sale
|
$
|
151
|
%
|
%
|
$
|
751
|
3.88
|
%
|
$
|
600
|
4.00
|
%
|
$
|
1,083
|
4.59
|
%
|
$
|
2,585
|
3.95
|
%
|
$
|
2,574
|
||||||||||||
Held
to Maturity:
|
||||||||||||||||||||||||||||||||||
U.S.
Government agencies
|
$
|
—
|
—
|
%
|
$
|
500
|
4.00
|
%
|
$
|
4,350
|
4.23
|
%
|
$
|
10,783
|
4.82
|
%
|
$
|
15,633
|
4.63
|
%
|
$
|
15,239
|
||||||||||||
Corporate
bonds
|
100
|
6.00
|
355
|
6.86
|
200
|
5.25
|
500
|
4.63
|
1,155
|
5.54
|
1,116
|
|||||||||||||||||||||||
Municipal
bonds
|
—
|
—
|
—
|
—
|
—
|
—
|
566
|
4.16
|
566
|
4.16
|
569
|
|||||||||||||||||||||||
Mortgage-backed
securities
|
—
|
—
|
2
|
7.49
|
5
|
8.75
|
974
|
5.87
|
981
|
5.88
|
966
|
|||||||||||||||||||||||
Total
held to maturity
|
$
|
100
|
6.00
|
%
|
$
|
857
|
5.19
|
%
|
$
|
4,555
|
4.28
|
%
|
$
|
12,823
|
5.00
|
%
|
$
|
18,335
|
5.00
|
%
|
$
|
17,890
|
||||||||||||
Total
securities
|
$
|
251
|
2.39
|
%
|
$
|
1,608
|
4.58
|
%
|
$
|
5,155
|
4.25
|
%
|
$
|
13,906
|
4.97
|
%
|
$
|
20,920
|
4.87
|
%
|
$
|
20,464
|
Years
Ended December 31,
|
|||||||
2006
|
2005
|
||||||
(In
Thousands)
|
|||||||
Available
for Sale:
|
|||||||
Purchases:
|
|||||||
Adjustable-rate
|
$
|
$
|
|||||
Fixed-rate
|
87
|
78
|
|||||
Total
purchases
|
87
|
78
|
|||||
|
|||||||
Sales:
|
|||||||
Adjustable-rate
|
—
|
—
|
|||||
Fixed-rate
|
(24
|
)
|
—
|
||||
Total
sales
|
(24
|
)
|
—
|
||||
Principal
repayments
|
(530
|
)
|
(1,346
|
)
|
|||
Other
items, net
|
38
|
(46
|
)
|
||||
Net
increase (decrease)
|
$
|
(429
|
)
|
$
|
(1,314
|
)
|
Years
Ended December 31,
|
|||||||
2006
|
2005
|
||||||
(In
Thousands)
|
|||||||
Held
to Maturity:
|
|||||||
Purchases:
|
|||||||
Adjustable-rate
|
$
|
—
|
$
|
3,860
|
|||
Fixed-rate
|
1,000
|
100
|
|||||
Total
purchases
|
1,000
|
3,960
|
|||||
|
|||||||
Sales:
|
|||||||
Adjustable-rate
|
—
|
—
|
|||||
Fixed-rate
|
—
|
—
|
|||||
Total
sales
|
—
|
—
|
|||||
Principal
repayments
|
(1,482
|
)
|
(2,177
|
)
|
|||
Other
items, net
|
—
|
(9
|
)
|
||||
Net
increase (decrease)
|
$
|
(482
|
)
|
$
|
1,774
|
At
December 31,
|
|||||||||||||||||||
2006
|
2005
|
||||||||||||||||||
Balance
|
Percent
|
Weighted
Average Rate
|
Balance
|
Percent
|
Weighted
Average Rate
|
||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||
Non-interest-bearing
demand
|
$
|
769
|
1.33
|
%
|
—
|
%
|
$
|
750
|
1.38
|
%
|
—
|
%
|
|||||||
Interest-bearing
demand
|
11,087
|
19.17
|
2.13
|
11,556
|
21.26
|
1.05
|
|||||||||||||
Savings
and club
|
13,182
|
22.79
|
1.01
|
15,711
|
28.90
|
1.00
|
|||||||||||||
Certificate
of deposit
|
32,806
|
56.71
|
4.62
|
26,350
|
48.46
|
3.20
|
|||||||||||||
Total
deposits
|
$
|
57,844
|
100.00
|
%
|
3.26
|
%
|
$
|
54,367
|
100.00
|
%
|
2.06
|
%
|
Years
Ended December 31,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in Thousands)
|
|||||||
Beginning
of period
|
$
|
54,367
|
$
|
57,216
|
|||
Net
deposits increase (withdrawals)
|
2,002
|
(3,884
|
)
|
||||
Interest
credited on deposit accounts
|
1,475
|
1,035
|
|||||
Ending
balance
|
$
|
57,844
|
$
|
54,367
|
|||
Percent
increase (decrease) from beginning of period
|
6.40
|
%
|
(4.98
|
)%
|
Three
months or less
|
Over
three months to six months
|
Over
six months to nine months
|
Over
nine months to twelve months
|
Over
twelve months
|
Total
|
||||||||||||||
(In
Thousands)
|
|||||||||||||||||||
Certificate
of deposit:
|
|||||||||||||||||||
Less
than $100,000
|
$
|
4,625
|
$
|
7,461
|
$
|
5,627
|
$
|
3,590
|
$
|
4,137
|
$
|
25,440
|
|||||||
$100,000
or more
|
536
|
2,938
|
3,138
|
432
|
322
|
7,366
|
|||||||||||||
Total
|
$
|
5,161
|
$
|
10,399
|
$
|
8,765
|
$
|
4,022
|
$
|
4,459
|
$
|
32,806
|
At
December 31,
|
|||||||||||||
2006
|
2005
|
||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||
(Dollars
in Thousands)
|
|||||||||||||
Certificate
of deposit rates:
|
|||||||||||||
1.00%
- 1.99%
|
$
|
—
|
—
|
%
|
$
|
1,126
|
4.27
|
%
|
|||||
2.00%
- 2.99%
|
47
|
0.14
|
6,702
|
25.43
|
|||||||||
3.00%
- 3.99%
|
7,791
|
23.75
|
15,868
|
60.22
|
|||||||||
4.00%
- 4.99%
|
10,221
|
31.16
|
2,647
|
10.05
|
|||||||||
5.00%
- 5.99%
|
14,747
|
44.95
|
7
|
0.03
|
|||||||||
6.00%
- 6.99%
|
—
|
—
|
—
|
—
|
|||||||||
Total
|
$
|
32,806
|
100.00
|
%
|
$
|
26,350
|
100.00
|
%
|
Maturity
Date
|
||||||||||||||||
1
Year
or
Less
|
Over
1
to
2 Years
|
Over
2
to
3 Years
|
Over
3
Years
|
Total
|
||||||||||||
(In
Thousands)
|
||||||||||||||||
Interest
rate:
|
||||||||||||||||
1.00%
- 1.99%
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
2.00%
- 2.99%
|
47
|
—
|
—
|
—
|
47
|
|||||||||||
3.00%
- 3.99%
|
5,847
|
1.471
|
473
|
—
|
7,791
|
|||||||||||
4.00%
- 4.99%
|
7,706
|
1,377
|
809
|
329
|
10,221
|
|||||||||||
5.00%
- 5.99%
|
14,747
|
—
|
—
|
—
|
14,747
|
|||||||||||
6.00%
- 6.99%
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Total
|
$
|
28,347
|
$
|
2,848
|
$
|
1,282
|
$
|
329
|
$
|
32,806
|
At
or For the
Years
Ended December 31,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in Thousands)
|
|||||||
Maximum
balance:
|
|||||||
FHLB
advances
|
$
|
27,975
|
$
|
25,534
|
|||
Average
Balance:
|
|||||||
FHLB
advances
|
$
|
25,802
|
$
|
19,815
|
|||
Weighted
average interest rate:
|
|||||||
FHLB
advances
|
4.24
|
%
|
3.93
|
%
|
Amount
|
Weighted
Average
Rate
|
||||||
(Dollars
in Thousands)
|
|||||||
Within
one year
|
$
|
6,500
|
5.12
|
%
|
|||
After
one through five years
|
13,612
|
3.76
|
|||||
After
five through fifteen years
|
1,866
|
4.69
|
|||||
Total
|
$
|
21,978
|
4.24
|
%
|
(1)
|
real
estate mortgages;
|
(2)
|
consumer
and commercial loans;
|
(3)
|
specific
types of debt securities, including certain corporate debt securities
and
obligations of federal, state and local governments and
agencies;
|
(4)
|
certain
types of corporate equity securities;
and
|
(5)
|
certain
other assets.
|
·
|
common
stockholders’ equity, excluding the unrealized appreciation or
depreciation, net of tax, from available for sale
securities;
|
·
|
non-cumulative
perpetual preferred stock, including any related retained earnings;
and
|
·
|
minority
interests in consolidated subsidiaries minus all intangible assets,
other
than qualifying servicing rights and any net unrealized loss on marketable
equity securities.
|
·
|
cumulative
perpetual preferred stock;
|
·
|
certain
perpetual preferred stock for which the dividend rate may be reset
periodically;
|
·
|
hybrid
capital instruments, including mandatory convertible
securities;
|
·
|
term
subordinated debt;
|
·
|
intermediate
term preferred stock;
|
·
|
allowance
for possible loan losses; and
|
·
|
up
to 45% of pretax net unrealized holding gains on available for sale
equity
securities with readily determinable fair market
values.
|
·
|
the
quality of the bank’s interest rate risk management
process;
|
·
|
the
overall financial condition of the bank;
and
|
·
|
the
level of other risks at the bank for which capital is
needed.
|
As
of December 31, 2006
|
To
be Well Capitalized
|
Excess
|
|||||||||||||||||
Historical
Capital
|
Percent
of
Assets(1)
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||
Regulatory
Tier 1 leverage capital
|
$
|
9,575
|
10.37
|
%
|
$
|
4,615
|
5.00
|
%
|
$
|
4,960
|
5.37
|
%
|
|||||||
Tier 1
risk-based capital
|
9,575
|
19.06
|
3,015
|
6.00
|
6,560
|
13.06
|
|||||||||||||
Total
risk-based capital
|
9,711
|
19.33
|
5,024
|
10.00
|
4,687
|
9.33
|
(1)
|
For
purposes of calculating Regulatory Tier 1 leverage capital, assets
are
based on adjusted average leverage assets. In calculating Tier 1
risk
based capital and total risk-based capital, assets are based on total
risk-weighted assets.
|
·
|
insolvency,
or when the assets of the bank are less than its liabilities to depositors
and others;
|
·
|
substantial
dissipation of assets or earnings through violations of law or unsafe
or
unsound practices;
|
·
|
existence
of an unsafe or unsound condition to transact
business;
|
·
|
likelihood
that the bank will be unable to meet the demands of its depositors
or to
pay its obligations in the normal course of business;
and
|
·
|
insufficient
capital, or the incurring or likely incurring of losses that will
deplete
substantially all of the institution’s capital with no reasonable prospect
of replenishment of capital without federal
assistance.
|
·
|
limits
the extent to which the bank or its subsidiaries may engage in “covered
transactions” with any one affiliate to an amount equal to 10% of such
bank’s capital stock and retained earnings, and limits all such
transactions with all affiliates to an amount equal to 20% of such
capital
stock and retained earnings; and
|
·
|
requires
that all such transactions be on terms that are consistent with safe
and
sound banking practices.
|
·
|
for
loans secured by raw land, the supervisory loan-to-value limit is
65% of
the value of the collateral;
|
·
|
for
land development loans, or loans for the purpose of improving unimproved
property prior to the erection of structures, the supervisory limit
is
75%;
|
·
|
for
loans for the construction of commercial, multi-family or other
non-residential property, the supervisory limit is
80%;
|
·
|
for
loans for the construction of one- to four-family residential properties,
the supervisory limit is 85%; and
|
·
|
for
loans secured by other improved property, for example, farmland,
completed
commercial property and other income-producing property including
non-owner occupied, one- to four-family property, the limit is
85%.
|
·
|
a
lending test, to evaluate the institution’s record of making loans in its
service areas;
|
·
|
an
investment test, to evaluate the institution’s record of investing in
community development projects, affordable housing, and programs
benefiting low or moderate income individuals and businesses;
and
|
·
|
a
service test, to evaluate the institution’s delivery of services through
its branches, ATMs and other
offices.
|
·
|
its
ratio of total capital to risk-weighted assets is at least
10%;
|
·
|
its
ratio of Tier 1 capital to risk-weighted assets is at least 6%;
and
|
·
|
its
ratio of Tier 1 capital to total assets is at least 5%, and it is
not
subject to any order or directive by the Federal Deposit Insurance
Corporation to meet a specific capital
level.
|
·
|
its
ratio of total capital to risk-weighted assets is at least 8%; or
|
·
|
its
ratio of Tier 1 capital to risk-weighted assets is at least 4%;
and
|
·
|
its
ratio of Tier 1 capital to total assets is at least 4% (3% if the
bank
receives the highest rating under the Uniform Financial Institutions
Rating System) and it is not a well-capitalized
institution.
|
·
|
its
total risk-based capital is less than 8%;
or
|
·
|
its
Tier 1 risk-based capital is less than 4%;
and
|
·
|
its
leverage ratio is less than 4% (or less than 3% if the institution
receives the highest rating under the Uniform Financial Institutions
Rating System).
|
·
|
its
total risk-based capital is less than
6%;
|
·
|
its
Tier 1 capital is less than 3%; or
|
·
|
its
leverage ratio is less than 3%.
|
·
|
an
amount equal to five percent of the bank’s total assets at the time it
became “undercapitalized,” or
|
·
|
the
amount that is necessary (or would have been necessary) to bring
the bank
into compliance with all capital standards applicable with respect
to such
bank as of the time it fails to comply with the
plan.
|
·
|
Pursuant
to Section 352, all financial institutions must establish anti-money
laundering programs that include, at minimum: (i) internal policies,
procedures, and controls; (ii) specific designation of an anti-money
laundering compliance officer; (iii) ongoing employee training programs;
and (iv) an independent audit function to test the anti-money laundering
program.
|
·
|
Section
326 of the Act authorizes the Secretary of the Department of Treasury,
in
conjunction with other bank regulators, to issue regulations that
provide
for minimum standards with respect to customer identification at
the time
new accounts are opened.
|
·
|
Section
312 of the Act requires financial institutions that establish, maintain,
administer, or manage private banking accounts or correspondence
accounts
in the United States for non-United States persons or their
representatives (including foreign individuals visiting the United
States)
to establish appropriate, specific, and, where necessary, enhanced
due
diligence policies, procedures, and controls designed to detect and
report
money laundering.
|
·
|
Financial
institutions are prohibited from establishing, maintaining, administering
or managing correspondent accounts for foreign shell banks (foreign
banks
that do not have a physical presence in any country), and will be
subject
to certain record keeping obligations with respect to correspondent
accounts of foreign banks.
|
·
|
Bank
regulators are directed to consider a holding company’s effectiveness in
combating money laundering when ruling on Federal Reserve Act and
Bank
Merger Act applications.
|
Location
|
Leased
or
Owned
|
Year
Acquired
|
Net
Book Value of Real
Property
|
|||||||
Main
Office:
31
Boonton Turnpike
Lincoln
Park, NJ 07035
|
Owned
|
1963
|
$
|
654,423
|
ITEM 3. |
Legal
Proceedings
|
ITEM 4. |
Submission
of Matters to a Vote of Security
Holders
|
ITEM 5. |
Market
for Common Equity, Related Stockholder Matters and Small Business
Issuer
Purchases of
Securities
|
Fiscal
Period
|
High
|
Low
|
Dividends
|
|||||||
Quarter
ended December 31, 2004
|
$
|
12.00
|
$
|
10.75
|
$
|
0.00
|
||||
Quarter
ended March 31, 2005
|
11.25
|
9.90
|
0.00
|
|||||||
Quarter
ended June 30, 2005
|
10.00
|
8.60
|
0.00
|
|||||||
Quarter
ended September 30, 2005
|
9.95
|
8.80
|
0.00
|
|||||||
Quarter
ended December, 31, 2005
|
9.50
|
8.62
|
0.00
|
|||||||
Quarter
ended March 31, 2006
|
10.10
|
8.85
|
0.05
|
|||||||
Quarter
ended June 30, 2006
|
10.05
|
9.50
|
0.00
|
|||||||
Quarter
ended September 30, 2006
|
9.70
|
9.10
|
0.00
|
|||||||
Quarter
ended December 31, 2006
|
9.48
|
8.75
|
0.00
|
Plan
|
Number
of securities to be issued upon exercise of outstanding options
and
rights
|
Weighted
average
exercise
price
|
Number
of securities remaining available for issuance under
plan
|
|||
Equity
compensation plans approved by stockholders
|
84,225(1)
|
$8.91(2)
|
42,787(3)
|
|||
Equity
compensation plans not approved by stockholders
|
—
|
—
|
—
|
|||
Total
|
84,225(1)
|
$8.91(2)
|
42,787(3)
|
(1)
|
Includes
20,205 shares of restricted stock and 64,020 options to purchase
shares of
common stock awarded under the 2005 Plan.
|
(2) |
Relates
to 64,020 outstanding stock options.
|
(3) |
Includes
16,084 shares of restricted stock available for future issuance and
26,703
options to purchase shares of common stock under the 2005
Plan.
|
(b) |
Not
applicable.
|
(c)
|
Lincoln
Park Bancorp did not repurchase any shares of its common stock in
the
fourth quarter of 2006.
|
ITEM 6. |
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
ITEM 7. |
Financial
Statements
|
ITEM 8. |
Changes
In and Disagreements With Accountants on Accounting and Financial
Disclosure
|
ITEM 8A. |
Controls
and Procedures
|
ITEM
8B.
|
Other
Information
|
ITEM 9. |
Directors,
Executive Officers, Promoters, Control Persons and Corporate Governance;
Compliance with Section 16(a) of the Exchange
Act
|
ITEM 10. |
Executive
Compensation
|
ITEM 11. |
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
ITEM 12. |
Certain
Relationships and Related Transactions and Director
Independence
|
ITEM 13. |
Exhibits
|
(a) |
Financial
Statements
|
(A)
|
Management
Responsibility Statement
|
(B)
|
Report
of Independent Registered Public Accounting
Firm
|
(C)
|
Consolidated
Statements of Financial Condition
|
(D)
|
Consolidated
Statements of Income
|
(E)
|
Consolidated
Statements of Changes In Stockholders’
Equity
|
(F)
|
Consolidated
Statements of Cash Flows
|
(G)
|
Notes
to Consolidated Financial
Statements
|
(b) |
Financial
Statement Schedules
|
(c) |
Exhibits
|
3.1
|
Charter
of Lincoln Park Bancorp*
|
3.2
|
Bylaws
of Lincoln Park Bancorp*
|
4
|
Form
of Common Stock Certificate of Lincoln Park
Bancorp*
|
10.1
|
Employee
Stock Ownership Plan*
|
10.2
|
Lincoln
Park Bancorp 2005 Stock-Based Incentive
Plan****
|
10.3
|
Lincoln
Park Bancorp Director Retirement Plan**
|
13 | Annual Report to Stockholders |
14 | Code of Ethics*** |
21 | Subsidiaries of Registrant* |
23
|
Consent
of Beard Miller Company LLP
|
31.1
|
Certification
of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities
Exchange Act of 1934, as amended, as adopted pursuant to Section
302 of
the Sarbanes-Oxley Act of 2002
|
31.2
|
Certification
of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities
Exchange Act of 1934, as amended, as adopted pursuant to Section
302 of
the Sarbanes-Oxley Act of 2002
|
32
|
Certification
of Chief Executive Officer and Chief Financial Officer pursuant to
18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
|
*
|
** |
Incorporated
by reference to the Current Report on Form 8-K of Lincoln Park Bancorp
(file no. 000-51078), filed with the Securities and Exchange Commission
on
March 15, 2006.
|
*** |
Incorporated
by reference to the Annual Report on Form 10-KSB of Lincoln Park
Bancorp
(file no. 000-51078), filed with the Securities and Exchange Commission
on
March 30, 2005.
|
**** |
Incorporated
by reference to the definitive proxy statement of Lincoln Park Bancorp
(file no. 000-51078) for the special meeting of stockholders held
on
December 22, 2005, as filed with the Securities and Exchange Commission
on
November 22, 2005.
|
ITEM 14. |
Principal
Accountant Fees and
Services
|
LINCOLN
PARK BANCORP
|
||
|
|
|
Date: March 28, 2007 | By: | /s/ David G. Baker |
David G. Baker |
||
President
and
Chief Executive Officer
(Duly Authorized
Representative)
|
Signatures
|
Title
|
Date
|
||
/s/
David G. Baker
|
President
and Chief Executive Officer
|
March
28, 2007
|
||
David
G. Baker
|
(Principal
Executive Officer), Director
|
|||
/s/
Nandini Mallya
|
Vice
President and Treasurer
|
March
28, 2007
|
||
Nandini Mallya |
(Principal
Financial and Accounting Officer)
|
|||
/s/
Stanford Stoller
|
Chairman
of the Board and Director
|
March
28, 2007
|
||
Stanford Stoller |
||||
/s/
William H. Weisbrod
|
Vice
Chairman of the Board and Director
|
March
28, 2007
|
||
William H. Weisbrod |
||||
/s/
John F. Feeney
|
Director
|
March
28, 2007
|
||
John F. Feeney |
||||
/s/
Edith M. Perrotti
|
Director
|
March
28, 2007
|
||
Edith M. Perrotti |
||||