x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
SECURITIES
EXCHANGE ACT OF 1934
|
For
the fiscal year ended December 31, 2007
|
Commission
File No. 000-18546
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NEW
YORK
|
11-2934195
|
(State
or other jurisdiction of incorporation or organization)
|
(IRS
Employer Identification Number)
|
|
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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
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None
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None
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Item
1
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1
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Item
1A
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3
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Item
1B
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4
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Item
2
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4
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Item
3
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4
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Item
4
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4
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PART
II
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Item
5
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5
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Item
6
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7
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Item
7
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8
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Item
7A
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23
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Item
8
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25
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Item
9
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52
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Item
9A
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52
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Item
9B
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52
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PART
III
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Item
10
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52
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Item
11
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52
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Item
12
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53
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Item
13
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53
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Item
14
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53
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PART
IV
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Item
15
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53
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54
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||
55
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Stock
Prices
|
Dividends
|
|||||||||||
High
|
Low
|
Declared
|
||||||||||
By
Quarter 2007
|
||||||||||||
First
|
$ | 24.75 | $ | 23.60 | $ | 0.23 | ||||||
Second
|
$ | 24.60 | $ | 23.80 | $ | 0.23 | ||||||
Third
|
$ | 24.75 | $ | 23.50 | $ | 0.23 | ||||||
Fourth
|
$ | 25.05 | $ | 23.25 | $ | 0.23 |
Stock
Prices
|
Dividends
|
|||||||||||
High
|
Low
|
Declared
|
||||||||||
By
Quarter 2006
|
||||||||||||
First
|
$ | 26.30 | $ | 24.15 | $ | 0.23 | ||||||
Second
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$ | 26.65 | $ | 24.65 | $ | 0.23 | ||||||
Third
|
$ | 26.10 | $ | 24.50 | $ | 0.23 | ||||||
Fourth
|
$ | 25.85 | $ | 23.75 | $ | 0.23 |
December,
31
|
2002
|
2003
|
2004
|
2005
|
2006
|
2007
|
||||||||||||||||||
Index
|
||||||||||||||||||||||||
Bridge
Bancorp, Inc.
|
100.00 | 162.28 | 217.97 | 181.94 | 183.38 | 192.81 | ||||||||||||||||||
NASDAQ®
Composite
|
100.00 | 150.01 | 162.89 | 165.13 | 180.85 | 198.60 | ||||||||||||||||||
SNL
$500M-$1B Bank Index
|
100.00 | 144.19 | 163.41 | 170.41 | 193.81 | 155.31 |
Period
|
Total
Number of Shares Purchased in Month
|
Average
Price Paid per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans or
Programs-2006 (1)
|
Maximum
Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased
Under the Plans or Programs
|
October
2007
|
-
|
-
|
141,959
|
167,041
|
November
2007
|
-
|
-
|
141,959
|
167,041
|
December
2007
|
-
|
-
|
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,
2007.
|
December
31,
|
2007
|
2006
|
2005
|
2004(2)
|
2003(2)
|
|||||||||||||||
Selected
Financial Data:
|
||||||||||||||||||||
Securities
available for sale
|
$ | 187,384 | $ | 202,590 | $ | 182,801 | $ | 202,042 | $ | 193,699 | ||||||||||
Securities,
restricted
|
2,387 | 878 | 1,377 | 1,979 | 1,642 | |||||||||||||||
Securities
held to maturity
|
5,836 | 9,444 | 10,012 | 21,213 | 14,396 | |||||||||||||||
Total
loans
|
375,236 | 325,997 | 302,264 | 296,134 | 273,188 | |||||||||||||||
Total
assets
|
607,424 | 573,644 | 533,444 | 547,200 | 511,613 | |||||||||||||||
Total
deposits
|
508,909 | 504,412 | 468,025 | 469,311 | 457,159 | |||||||||||||||
Total
stockholders’ equity
|
51,109 | 45,539 | 46,651 | 47,213 | 42,794 | |||||||||||||||
Year
Ended December 31,
|
||||||||||||||||||||
Selected
Operating Data:
|
||||||||||||||||||||
Total
interest income
|
$ | 35,864 | $ | 32,030 | $ | 28,713 | $ | 26,923 | $ | 25,968 | ||||||||||
Total
interest expense
|
10,437 | 8,337 | 4,319 | 2,351 | 2,601 | |||||||||||||||
Net
interest income
|
25,427 | 23,693 | 24,394 | 24,572 | 23,367 | |||||||||||||||
Provision
for loan losses
|
600 | 85 | 300 | 300 | - | |||||||||||||||
Net
interest income after provision for loan losses
|
24,827 | 23,608 | 24,094 | 24,272 | 23,367 | |||||||||||||||
Total
non interest income
|
5,678 | 4,413 | 5,105 | 5,440 | 4,716 | |||||||||||||||
Total
non interest expenses
|
18,168 | 16,002 | 14,647 | 13,564 | 12,997 | |||||||||||||||
Income
before income taxes
|
12,337 | 12,019 | 14,552 | 16,148 | 15,086 | |||||||||||||||
Provision
for income taxes
|
4,043 | 3,851 | 4,929 | 5,771 | 5,488 | |||||||||||||||
Net
income
|
$ | 8,294 | $ | 8,168 | $ | 9,623 | $ | 10,377 | $ | 9,598 | ||||||||||
December
31,
|
||||||||||||||||||||
Selected
Financial Ratios and Other Data:
|
||||||||||||||||||||
Return
on average equity
|
17.47 | % | 17.68 | % | 20.15 | % | 22.82 | % | 22.58 | % | ||||||||||
Return
on average assets
|
1.38 | % | 1.49 | % | 1.76 | % | 1.89 | % | 1.91 | % | ||||||||||
Average
equity to average assets
|
7.91 | % | 8.41 | % | 8.71 | % | 8.30 | % | 8.46 | % | ||||||||||
Dividend
payout ratio (1)
|
67.67 | % | 68.98 | % | 58.88 | % | 43.39 | % | 50.98 | % | ||||||||||
Diluted
earnings per share
|
$ | 1.36 | $ | 1.33 | $ | 1.53 | $ | 1.64 | $ | 1.53 | ||||||||||
Basic
earnings per share
|
$ | 1.37 | $ | 1.33 | $ | 1.54 | $ | 1.66 | $ | 1.55 | ||||||||||
Cash
dividends declared per common share (1)
|
$ | 0.92 | $ | 0.92 | $ | 0.91 | $ | 0.72 | $ | 0.78 |
(1)
|
On
December 15, 2003, the Company declared a special dividend of
approximately $1,660,000, or $0.27 per
share.
|
(2)
|
Amounts
have been restated for a three-for-two stock split, in the form of a stock
dividend, effective July 9,
2004.
|
|
·
|
Returns
on average equity and average assets of 17.47% and 1.38% respectively for
2007;
|
|
·
|
Net
income of $8.3 million or $1.36 per diluted share for 2007 as compared to
net income of $8.2 million or $1.33 per diluted share for
2006;
|
|
·
|
Net
income of $2.0 million or $0.33 per diluted share for the fourth quarter
2007 as compared with $2.0 million or $0.34 per diluted share for the same
period one year ago;
|
|
·
|
A
net interest margin of 4.7% for 2007 as compared to 4.8% for
2006;
|
|
·
|
Total
assets of $607.4 million at December 31, 2007, an increase of 5.9% over
the same date last year;
|
|
·
|
Total
loans of $375.2 million, an increase of 15.1% at December 31, 2007 from
December 31, 2006;
|
|
·
|
Continued
sound credit quality;
|
|
·
|
Total
investments of $193.2 million at December 31, 2007, a
decrease of 8.9% over December 31,
2006;
|
|
·
|
Balance
sheet and interest rate risk management included a repositioning of a
portion of the available for sale investment securities portfolio
resulting in a net pretax loss of $101,000 during the first quarter of
2007;
|
|
·
|
Total
deposits of $508.9 million at December 31, 2007, with an increase in
average deposits of 10.1% over December 31,
2006;
|
|
·
|
The
Company’s capital levels remain strong with a Tier 1 Capital to Average
Assets ratio of 8.36%. The Company is positioned well for
future growth. Stockholders’ equity totaled $51.1 million at
December 31, 2007 as compared $45.5 million at December 31,
2006;
|
|
·
|
Declaration
of cash dividends totaling $0.92 for 2007;
and
|
|
·
|
Execution
of the Bank’s branch expansion plan, including the opening of three new
branches in 2007: Southampton Village, Cutchogue and Wading
River.
|
Year
Ended December 31,
|
2007
|
2006
|
2005
|
|||||||||||||||||||||||||||||||||
(Dollars
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)
|
$ | 347,029 | $ | 26,347 | 7.6 | % | $ | 307,394 | $ | 23,345 | 7.6 | % | $ | 299,950 | $ | 20,724 | 6.9 | % | ||||||||||||||||||
Mortgage-backed
securities
|
120,314 | 5,764 | 4.7 | 112,463 | 4,989 | 4.4 | 102,460 | 4,160 | 4.0 | |||||||||||||||||||||||||||
Tax
exempt securities (1)
|
53,599 | 2,823 | 5.2 | 57,948 | 3,060 | 5.2 | 60,005 | 2,944 | 4.8 | |||||||||||||||||||||||||||
Taxable
securities
|
27,643 | 1,155 | 4.1 | 26,258 | 970 | 3.6 | 41,485 | 1,520 | 3.6 | |||||||||||||||||||||||||||
Federal
funds sold
|
12,375 | 638 | 5.1 | 10,800 | 560 | 5.1 | 7,971 | 265 | 3.3 | |||||||||||||||||||||||||||
Securities,
restricted
|
886 | 58 | 6.6 | 907 | 65 | 7.2 | 2,034 | 95 | 4.7 | |||||||||||||||||||||||||||
Deposits
with banks
|
173 | 4 | 2.3 | 348 | 21 | 6.0 | 93 | 2 | 2.2 | |||||||||||||||||||||||||||
Total
interest earning assets
|
562,019 | 36,789 | 6.5 | 516,118 | 33,010 | 6.4 | 513,998 | 29,710 | 5.8 | |||||||||||||||||||||||||||
Non
interest earning assets:
|
||||||||||||||||||||||||||||||||||||
Cash
and due from banks
|
16,081 | 14,307 | 15,871 | |||||||||||||||||||||||||||||||||
Other
assets
|
22,242 | 18,963 | 18,186 | |||||||||||||||||||||||||||||||||
Total
assets
|
$ | 600,342 | $ | 549,388 | $ | 548,055 | ||||||||||||||||||||||||||||||
Interest
bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Savings,
NOW and money market deposits
|
$ | 287,450 | $ | 7,634 | 2.7 | % | $ | 259,747 | $ | 6,322 | 2.4 | % | $ | 249,382 | $ | 3,022 | 1.2 | % | ||||||||||||||||||
Certificates
of deposit of $100,000 or more
|
35,965 | 1,452 | 4.0 | 24,293 | 888 | 3.7 | 28,777 | 550 | 1.9 | |||||||||||||||||||||||||||
Other
time deposits
|
28,044 | 1,058 | 3.8 | 25,420 | 723 | 2.8 | 27,805 | 470 | 1.7 | |||||||||||||||||||||||||||
Other
borrowed money
|
1,403 | 65 | 4.6 | 4,205 | 216 | 5.1 | 6,688 | 205 | 3.1 | |||||||||||||||||||||||||||
Federal
funds purchased and repurchase agreements
|
4,632 | 223 | 4.8 | 3,666 | 188 | 5.1 | 1,999 | 72 | 3.6 | |||||||||||||||||||||||||||
Federal
Home Loan Bank advances
|
110 | 5 | 4.6 | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total
interest bearing liabilities
|
357,604 | 10,437 | 2.9 | 317,331 | 8,337 | 2.6 | 314,651 | 4,319 | 1.4 | |||||||||||||||||||||||||||
Non
interest bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Demand
deposits
|
191,022 | 183,157 | 183,260 | |||||||||||||||||||||||||||||||||
Other
liabilities
|
4,229 | 2,699 | 2,386 | |||||||||||||||||||||||||||||||||
Total
liabilities
|
552,855 | 503,187 | 500,297 | |||||||||||||||||||||||||||||||||
Stockholders’
equity
|
47,487 | 46,201 | 47,758 | |||||||||||||||||||||||||||||||||
Total
liabilities and stockholders’ equity
|
$ | 600,342 | $ | 549,388 | $ | 548,055 | ||||||||||||||||||||||||||||||
Net
interest income/interest rate spread (2)
|
26,352 | 3.6 | % | 24,673 | 3.8 | % | 25,391 | 4.4 | % | |||||||||||||||||||||||||||
Net
interest earning assets/net interest margin (3)
|
$ | 204,415 | 4.7 | % | $ | 198,787 | 4.8 | % | $ | 199,347 | 4.9 | % | ||||||||||||||||||||||||
Ratio
of interest earning assets to interest bearing
liabilities
|
157.2 | % | 162.6 | % | 163.4 | % | ||||||||||||||||||||||||||||||
Less:
Tax equivalent adjustment
|
(925 | ) | (980 | ) | (997 | ) | ||||||||||||||||||||||||||||||
Net
interest income
|
$ | 25,427 | $ | 23,693 | $ | 24,394 |
|
(1)
|
The
above table is presented on a tax equivalent
basis.
|
|
(2)
|
Net
interest rate spread represents the difference between the yield on
interest earning assets and the cost of interest bearing
liabilities.
|
|
(3)
|
Net
interest margin represents net interest income divided by average interest
earning assets.
|
Year
Ended December 31,
|
2007
Over 2006
|
2006
Over 2005
|
||||||||||||||||||||||
(In
thousands)
|
Changes
Due To
|
Changes
Due To
|
||||||||||||||||||||||
Volume
|
Rate
|
Net
Change
|
Volume
|
Rate
|
Net
Change
|
|||||||||||||||||||
Interest
income on interest earning assets:
|
||||||||||||||||||||||||
Loans
(including loan fee income)
|
$ | 2,995 | $ | 7 | $ | 3,002 | $ | 525 | $ | 2,096 | $ | 2,621 | ||||||||||||
Mortgage-backed
securities
|
364 | 411 | 775 | 426 | 403 | 829 | ||||||||||||||||||
Tax
exempt securities (1)
|
(228 | ) | (9 | ) | (237 | ) | (101 | ) | 217 | 116 | ||||||||||||||
Taxable
securities
|
53 | 132 | 185 | (562 | ) | 12 | (550 | ) | ||||||||||||||||
Federal
funds sold
|
81 | (3 | ) | 78 | 114 | 181 | 295 | |||||||||||||||||
Securities,
restricted
|
(1 | ) | (6 | ) | (7 | ) | (67 | ) | 37 | (30 | ) | |||||||||||||
Deposits
with banks
|
(8 | ) | (9 | ) | (17 | ) | 15 | 4 | 19 | |||||||||||||||
Total
interest earning assets
|
3,256 | 523 | 3,779 | 350 | 2,950 | 3,300 | ||||||||||||||||||
Interest
expense on interest bearing liabilities:
|
||||||||||||||||||||||||
Savings,
NOW and money market deposits
|
701 | 611 | 1,312 | 131 | 3,169 | 3,300 | ||||||||||||||||||
Certificates
of deposit of $100,000 or more
|
464 | 100 | 564 | (97 | ) | 435 | 338 | |||||||||||||||||
Other
time deposits
|
80 | 255 | 335 | (43 | ) | 296 | 253 | |||||||||||||||||
Other
borrowed money
|
(132 | ) | (19 | ) | (151 | ) | (94 | ) | 105 | 11 | ||||||||||||||
Federal
funds purchased and repurchase agreements
|
47 | (12 | ) | 35 | 77 | 39 | 116 | |||||||||||||||||
Federal
Home Loan Bank advances
|
5 | - | 5 | - | - | - | ||||||||||||||||||
Total
interest bearing liabilities
|
1,165 | 935 | 2,100 | (26 | ) | 4,044 | 4,018 | |||||||||||||||||
Net
interest income
|
$ | 2,091 | $ | (412 | ) | $ | 1,679 | $ | 376 | $ | (1,094 | ) | $ | (718 | ) |
|
(1)
|
The
above table is presented on a tax equivalent
basis.
|
December
31,
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||
Allowance
for loan losses balance at beginning of
period
|
$ | 2,512 | $ | 2,383 | $ | 2,188 | $ | 2,144 | $ | 2,294 | ||||||||||
Charge-offs:
|
||||||||||||||||||||
Real
estate mortgage loans
|
- | - | 7 | 3 | 38 | |||||||||||||||
Real
estate construction loans
|
- | - | - | - | - | |||||||||||||||
Commercial,
financial and agricultural loans
|
203 | 33 | 153 | 302 | 163 | |||||||||||||||
Installment/consumer
loans
|
23 | 50 | 129 | 65 | 148 | |||||||||||||||
Total
|
226 | 83 | 289 | 370 | 349 | |||||||||||||||
Recoveries:
|
||||||||||||||||||||
Real
estate mortgage loans
|
1 | 6 | 17 | 23 | 13 | |||||||||||||||
Real
estate construction loans
|
- | - | 100 | - | - | |||||||||||||||
Commercial,
financial and agricultural loans
|
13 | 59 | 37 | 61 | 90 | |||||||||||||||
Installment/consumer
loans
|
54 | 62 | 30 | 30 | 96 | |||||||||||||||
Total
|
68 | 127 | 184 | 114 | 199 | |||||||||||||||
Net
(charge-offs) recoveries
|
(158 | ) | 44 | (105 | ) | (256 | ) | (150 | ) | |||||||||||
Provision
for loan losses charged to operations
|
600 | 85 | 300 | 300 | - | |||||||||||||||
Balance
at end of period
|
$ | 2,954 | $ | 2,512 | $ | 2,383 | $ | 2,188 | $ | 2,144 | ||||||||||
Ratio
of net (charge-offs) recoveries during period to average loans
outstanding
|
(0.05 | %) | 0.01 | % | (0.04 | %) | (0.09 | %) | (0.06 | %) |
Year
Ended December 31,
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||||||||||||||||||||||||||
(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,
financial and agricultural loans
|
$ | 420 | 13.4 | % | $ | 303 | 11.2 | % | $ | 273 | 10.5 | % | $ | 315 | 11.6 | % | $ | 272 | 12.4 | % | ||||||||||||||||||||
Real
estate construction loans
|
253 | 4.0 | 121 | 4.5 | 183 | 5.9 | 148 | 6.2 | 148 | 7.3 | ||||||||||||||||||||||||||||||
Real
estate mortgage loans
|
2,194 | 80.3 | 2,009 | 81.6 | 1,817 | 80.4 | 1,659 | 80.0 | 1,663 | 78.1 | ||||||||||||||||||||||||||||||
Installment/consumer
loans
|
87 | 2.3 | 79 | 2.7 | 110 | 3.2 | 66 | 2.2 | 61 | 2.2 | ||||||||||||||||||||||||||||||
Total
|
$ | 2,954 | 100.0 | % | $ | 2,512 | 100.0 | % | $ | 2,383 | 100.0 | % | $ | 2,188 | 100.0 | % | $ | 2,144 | 100.0 | % |
December
31,
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Real
estate mortgage loans
|
$ | 301,193 | $ | 265,824 | $ | 242,928 | $ | 236,812 | $ | 213,256 | ||||||||||
Commercial,
financial, and agricultural loans
|
50,531 | 36,498 | 31,644 | 34,342 | 33,810 | |||||||||||||||
Installment/consumer
loans
|
8,553 | 8,848 | 9,827 | 6,685 | 6,105 | |||||||||||||||
Real
estate construction loans
|
14,867 | 14,767 | 17,960 | 18,452 | 20,037 | |||||||||||||||
Total
loans
|
375,144 | 325,937 | 302,359 | 296,291 | 273,208 | |||||||||||||||
Unamortized
cost/(Unearned income)
|
92 | 60 | (95 | ) | (157 | ) | (20 | ) | ||||||||||||
375,236 | 325,997 | 302,264 | 296,134 | 273,188 | ||||||||||||||||
Allowance
for loan losses
|
(2,954 | ) | (2,512 | ) | (2,383 | ) | (2,188 | ) | (2,144 | ) | ||||||||||
Net
loans
|
$ | 372,282 | $ | 323,485 | $ | 299,881 | $ | 293,946 | $ | 271,044 |
After
One
|
||||||||||||||||
Within
One
|
But
Within
|
After
|
||||||||||||||
Year
|
Five
Years
|
Five
Years
|
Total
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Commercial
loans
|
$ | 17,954 | $ | 18,709 | $ | 13,868 | $ | 50,531 | ||||||||
Construction
loans (1)
|
4,592 | 1,350 | 8,925 | 14,867 | ||||||||||||
Total
|
$ | 22,546 | $ | 20,059 | $ | 22,793 | $ | 65,398 | ||||||||
Rate
provisions:
|
||||||||||||||||
Amounts
with fixed interest rates
|
$ | 2,907 | $ | 10,895 | $ | 6,555 | $ | 20,357 | ||||||||
Amounts
with variable interest rates
|
19,639 | 9,164 | 16,238 | 45,041 | ||||||||||||
Total
|
$ | 22,546 | $ | 20,059 | $ | 22,793 | $ | 65,398 |
(1)
|
Included in the
“After Five Years” column, are one-step construction loans that contain a
preliminary construction period
(interest only) that automatically convert to amortization at the end of
the the
construction phase.
|
December
31,
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Loans
90 days or more past due and still accruing
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Nonaccrual
loans
|
229 | 305 | 658 | 1,695 | 152 | |||||||||||||||
Restructured
loans
|
- | 118 | - | - | - | |||||||||||||||
Other
real estate owned, net
|
- | - | - | - | - | |||||||||||||||
Total
|
$ | 229 | $ | 423 | $ | 658 | $ | 1,695 | $ | 152 | ||||||||||
Year
Ended December 31,
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Gross
interest income that has not been paid or recorded during the year
under original terms:
|
||||||||||||||||||||
Nonaccrual
loans
|
$ | 12 | $ | 9 | $ | 38 | $ | 16 | $ | 9 | ||||||||||
Restructured
loans
|
$ | - | $ | 1 | - | - | - | |||||||||||||
Gross
interest income recorded during the year:
|
||||||||||||||||||||
Nonaccrual
loans
|
$ | 5 | $ | 12 | $ | 17 | $ | 12 | $ | 6 | ||||||||||
Restructured
loans
|
$ | - | $ | 9 | - | - | - | |||||||||||||
Commitments
for additional funds
|
- | - | - | - | - |
December
31,
|
2007
|
2006
|
2005
|
|||||||||||||||||||||||||||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Gross
|
Gross
|
Estimated
|
Gross
|
Gross
|
Estimated
|
Gross
|
Gross
|
Estimated
|
||||||||||||||||||||||||||||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||||||||||||||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
Cost
|
Gains
|
Losses
|
Value
|
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||||||||||||||||||||||||||
Available
for sale:
|
||||||||||||||||||||||||||||||||||||||||||||||||
U.S.
Treasury and government agency
securities
|
$ | 19,035 | $ | 139 | $ | (38 | ) | $ | 19,136 | $ | 34,123 | $ | - | $ | (346 | ) | $ | 33,777 | $ | 38,443 | $ | 7 | $ | (788 | ) | $ | 37,662 | |||||||||||||||||||||
State
and municipal obligations
|
47,547 | 435 | (179 | ) | 47,803 | 49,008 | 316 | (481 | ) | 48,843 | 51,392 | 387 | (559 | ) | 51,220 | |||||||||||||||||||||||||||||||||
Mortgage-backed
securities
|
120,450 | 1,060 | (1,065 | ) | 120,445 | 122,009 | 364 | (2,403 | ) | 119,970 | 96,938 | 27 | (3,046 | ) | 93,919 | |||||||||||||||||||||||||||||||||
Total
available for sale
|
187,032 | 1,634 | (1,282 | ) | 187,384 | 205,140 | 680 | (3,230 | ) | 202,590 | 186,773 | 421 | (4,393 | ) | 182,801 | |||||||||||||||||||||||||||||||||
Held
to maturity:
|
||||||||||||||||||||||||||||||||||||||||||||||||
State
and municipal obligations
|
5,836 | 8 | - | 5,844 | 9,444 | - | (2 | ) | 9,442 | 10,012 | - | (23 | ) | 9,989 | ||||||||||||||||||||||||||||||||||
Total
held to maturity
|
5,836 | 8 | - | 5,844 | 9,444 | - | (2 | ) | 9,442 | 10,012 | - | (23 | ) | 9,989 | ||||||||||||||||||||||||||||||||||
Total
securities
|
$ | 192,868 | $ | 1,642 | $ | (1,282 | ) | $ | 193,228 | $ | 214,584 | $ | 680 | $ | (3,232 | ) | $ | 212,032 | $ | 196,785 | $ | 421 | $ | (4,416 | ) | $ | 192,790 |
December
31, 2007
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars
in thousands)
|
Within
|
After
One But
|
After
Five But
|
After
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
One
Year
|
Within
Five Years
|
Within
Ten Years
|
Ten
Years
|
Total
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair
Value
Amount
|
Amortized
Cost
Amount
|
Yield
|
Fair
Value
Amount
|
Amortized
Cost
Amount
|
Yield
|
Fair
Value
Amount
|
Amortized
Cost
Amount
|
Yield
|
Fair
Value
Amount
|
Amortized
Cost
Amount
|
Yield
|
Fair
Value Amount
|
Amortized
Cost
Amount
|
|||||||||||||||||||||||||||||||||||||||||||
Available
for sale:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S.
Treasury and government agency securities
|
$ | 14,315 | $ | 14,341 | 5.97 | % | $ | 4,821 | $ | 4,694 | 7.29 | % | $ | - | $ | - | - | % | $ | - | $ | - | - | % | $ | 19,136 | $ | 19,035 | ||||||||||||||||||||||||||||
Mortgage-backed
securities
|
- | - | - | 10,701 | 10,876 | 5.68 | 18,866 | 18,860 | 6.53 | 90,878 | 90,714 | 7.42 | 120,445 | 120,450 | ||||||||||||||||||||||||||||||||||||||||||
State
and municipal obligations
|
5,164 | 5,166 | 4.34 | 22,271 | 22,332 | 4.45 | 18,923 | 18,587 | 5.76 | 1,445 | 1,462 | 5.79 | 47,803 | 47,547 | ||||||||||||||||||||||||||||||||||||||||||
Total
available for sale
|
19,479 | 19,507 | 5.54 | 37,793 | 37,902 | 5.15 | 37,789 | 37,447 | 6.15 | 92,323 | 92,176 | 7.39 | 187,384 | 187,032 | ||||||||||||||||||||||||||||||||||||||||||
Held
to maturity:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
State
and municipal obligations
|
5,844 | 5,836 | 5.30 | - | - | - | - | - | - | - | - | - | 5,844 | 5,836 | ||||||||||||||||||||||||||||||||||||||||||
Total
held to maturity
|
5,844 | 5,836 | 5.30 | - | - | - | - | - | - | - | - | - | 5,844 | 5,836 | ||||||||||||||||||||||||||||||||||||||||||
Total
securities
|
$ | 25,323 | $ | 25,343 | 5.48 | % | $ | 37,793 | $ | 37,902 | 5.15 | % | $ | 37,789 | $ | 37,447 | 6.15 | % | $ | 92,323 | $ | 92,176 | 7.39 | % | $ | 193,228 | $ | 192,868 |
Less
than $100,000
|
$100,000
or Greater
|
Total
|
||||||||||
(In
thousands)
|
||||||||||||
3
months or less
|
$ | 19,561 | $ | 26,819 | $ | 46,380 | ||||||
Over
3 thru 6 months
|
9,662 | 12,757 | 22,419 | |||||||||
Over
6 thru 12 months
|
3,043 | 3,721 | 6,764 | |||||||||
Over
12 months thru 24 months
|
1,742 | 348 | 2,090 | |||||||||
Over
24 months thru 36 months
|
515 | 201 | 716 | |||||||||
Over
36 months thru 48 months
|
262 | 155 | 417 | |||||||||
Over
48 months thru 60 months
|
213 | 768 | 981 | |||||||||
Over
60 months
|
- | - | - | |||||||||
Total
|
$ | 34,998 | $ | 44,769 | $ | 79,767 |
Total
Amounts Committed
|
Less
than One Year
|
One
to
Three
Years
|
Four
to Five Years
|
Over
Five Years
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Operating
leases
|
$ | 3,329 | $ | 641 | $ | 1,081 | $ | 548 | $ | 1,059 | ||||||||||
Purchase
obligation
|
250 | 250 | - | - | - | |||||||||||||||
Time
deposits
|
79,767 | 75,563 | 2,806 | 1,398 | - | |||||||||||||||
Total
contractual obligations outstanding
|
$ | 83,346 | $ | 76,454 | $ | 3,887 | $ | 1,946 | $ | 1,059 |
2007
|
||||||||||
Potential
Change
|
||||||||||
Change
in Interest
|
in
Net
|
|||||||||
Rates
in Basis Points
|
Interest
Income
|
|||||||||
(Dollars
in thousands)
|
||||||||||
$
Change
|
%
Change
|
|||||||||
200 |
$
|
(1,833 | ) | (7.05)% | ||||||
100 |
$
|
(897
|
) | (3.45)% | ||||||
Static
|
- | - | ||||||||
(100 | ) |
$
|
555 | 2.13% | ||||||
(200 | ) |
$
|
1,120 | 4.31% |
December
31,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
ASSETS
|
||||||||
Cash
and due from banks
|
$ | 14,213 | $ | 13,231 | ||||
Interest
earning deposits with banks
|
135 | 32 | ||||||
Total
cash and cash equivalents
|
14,348 | 13,263 | ||||||
Securities
available for sale, at fair value
|
187,384 | 202,590 | ||||||
Securities
held to maturity (fair value of $5,844 and $9,442,
respectively)
|
5,836 | 9,444 | ||||||
Total
securities, net
|
193,220 | 212,034 | ||||||
Securities,
restricted
|
2,387 | 878 | ||||||
Loans
|
375,236 | 325,997 | ||||||
Allowance
for loan losses
|
(2,954 | ) | (2,512 | ) | ||||
Loans,
net
|
372,282 | 323,485 | ||||||
Premises
and equipment, net
|
18,469 | 18,005 | ||||||
Accrued
interest receivable
|
2,707 | 2,692 | ||||||
Other
assets
|
4,011 | 3,287 | ||||||
Total
Assets
|
$ | 607,424 | $ | 573,644 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Demand
deposits
|
$ | 176,130 | $ | 173,628 | ||||
Savings,
NOW and money market deposits
|
253,012 | 269,966 | ||||||
Certificates
of deposit of $100,000 or more
|
44,769 | 30,518 | ||||||
Other
time deposits
|
34,998 | 30,300 | ||||||
Total
deposits
|
508,909 | 504,412 | ||||||
Federal
funds purchased and repurchase agreements
|
32,000 | 18,600 | ||||||
Federal
Home Loan Bank advances
|
10,000 | - | ||||||
Accrued
interest payable
|
641 | 855 | ||||||
Other
liabilities and accrued expenses
|
4,765 | 4,238 | ||||||
Total
Liabilities
|
556,315 | 528,105 | ||||||
Commitments
and contingent liabilities
|
- | - | ||||||
Stockholders’
equity:
|
||||||||
Common
stock, par value $0.01 per share:
|
||||||||
Authorized:
20,000,000 shares; 6,386,306 issued; 6,111,802 and 6,078,565 shares
outstanding, respectively
|
64 | 64 | ||||||
Surplus
|
21,671 | 21,565 | ||||||
Retained
Earnings
|
37,031 | 34,347 | ||||||
Less: Treasury
stock at cost, 276,274 and 307,741 shares, respectively
|
(7,889 | ) | (8,176 | ) | ||||
50,877 | 47,800 | |||||||
Accumulated
other comprehensive income (loss):
|
||||||||
Net
unrealized gain (loss) on securities, net of deferred taxes of ($140) and
$1,025, respectively
|
213 | (1,525 | ) | |||||
Change
in pension assets (liability), net of deferred taxes of ($7) and
$490, respectively
|
19 | (736 | ) | |||||
Total
Stockholders’ Equity
|
51,109 | 45,539 | ||||||
Total
Liabilities and Stockholders’ Equity
|
$ | 607,424 | $ | 573,644 |
Year
Ended December 31,
|
2007
|
2006
|
2005
|
|||||||||
Interest
income:
|
||||||||||||
Loans
(including fee income)
|
$ | 26,347 | $ | 23,345 | $ | 20,724 | ||||||
Mortgage-backed
securities
|
5,764 | 4,989 | 4,160 | |||||||||
Tax
exempt interest income:
|
||||||||||||
State
and municipal obligations
|
1,898 | 2,080 | 1,947 | |||||||||
Taxable
interest income:
|
||||||||||||
U.S.
Treasury and government agency securities
|
1,155 | 970 | 1,520 | |||||||||
Federal
funds sold
|
638 | 560 | 265 | |||||||||
Other
securities
|
58 | 65 | 95 | |||||||||
Deposits
with banks
|
4 | 21 | 2 | |||||||||
Total
interest income
|
35,864 | 32,030 | 28,713 | |||||||||
Interest
expense:
|
||||||||||||
Savings,
NOW and money market deposits
|
7,634 | 6,322 | 3,022 | |||||||||
Certificates
of deposit of $100,000 or more
|
1,452 | 888 | 550 | |||||||||
Other
time deposits
|
1,058 | 723 | 470 | |||||||||
Other
borrowed money
|
65 | 216 | 205 | |||||||||
Federal
funds purchased and repurchase agreements
|
223 | 188 | 72 | |||||||||
Federal
Home Loan Bank advances
|
5 | - | - | |||||||||
Total
interest expense
|
10,437 | 8,337 | 4,319 | |||||||||
Net
interest income
|
25,427 | 23,693 | 24,394 | |||||||||
Provision
for loan losses
|
600 | 85 | 300 | |||||||||
Net
interest income after provision for loan losses
|
24,827 | 23,608 | 24,094 | |||||||||
Non
interest income:
|
||||||||||||
Service
charges on deposit accounts
|
2,540 | 2,069 | 2,104 | |||||||||
Fees
for other customer services
|
1,734 | 1,422 | 1,484 | |||||||||
Title
fee income
|
1,339 | 1,042 | 1,293 | |||||||||
Net
securities (losses) gains
|
(101 | ) | (289 | ) | 116 | |||||||
Other
operating income
|
166 | 169 | 108 | |||||||||
Total
non interest income
|
5,678 | 4,413 | 5,105 | |||||||||
Non
interest expenses:
|
||||||||||||
Salaries
and employee benefits
|
10,755 | 9,187 | 8,347 | |||||||||
Net
occupancy expense
|
1,734 | 1,414 | 1,234 | |||||||||
Furniture
and fixture expense
|
833 | 742 | 719 | |||||||||
Data/Item
processing
|
423 | 445 | 397 | |||||||||
Advertising
|
429 | 414 | 401 | |||||||||
Other
operating expenses
|
3,994 | 3,800 | 3,549 | |||||||||
Total
non interest expenses
|
18,168 | 16,002 | 14,647 | |||||||||
Income
before income taxes
|
12,337 | 12,019 | 14,552 | |||||||||
Income
tax expense
|
4,043 | 3,851 | 4,929 | |||||||||
Net
income
|
$ | 8,294 | $ | 8,168 | $ | 9,623 | ||||||
Basic
earnings per share
|
$ | 1.37 | $ | 1.33 | $ | 1.54 | ||||||
Diluted
earnings per share
|
$ | 1.36 | $ | 1.33 | $ | 1.53 | ||||||
Comprehensive
Income
|
$ | 10,787 | $ | 9,019 | $ | 6,877 |
Accumulated
|
||||||||||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||||||
Unearned
|
Comprehensive
|
|||||||||||||||||||||||||||||||
Common
|
Comprehensive
|
Retained
|
Treasury
|
Stock
|
Income
|
|||||||||||||||||||||||||||
Stock
|
Surplus
|
Income
|
Earnings
|
Stock
|
Awards
|
(Loss)
|
Total
|
|||||||||||||||||||||||||
Balance
at December 31, 2004
|
$ | 64 | $ | 21,462 | $ | 27,856 | $ | (2,330 | ) | $ | (121 | ) | $ | 282 | $ | 47,213 | ||||||||||||||||
Net
income
|
9,623 | 9,623 | 9,623 | |||||||||||||||||||||||||||||
Stock
awards vested
|
36 | 28 | 65 | 129 | ||||||||||||||||||||||||||||
Stock
awards granted
|
52 | 38 | (90 | ) | - | |||||||||||||||||||||||||||
Stock
awards forfeited
|
(17 | ) | (21 | ) | 38 | - | ||||||||||||||||||||||||||
Exercise
of stock options, including tax benefit
|
98 | 134 | 232 | |||||||||||||||||||||||||||||
Treasury
stock purchases
|
(2,134 | ) | (2,134 | ) | ||||||||||||||||||||||||||||
Cash
dividends declared, $0.91 per share
|
(5,666 | ) | (5,666 | ) | ||||||||||||||||||||||||||||
Other
comprehensive income, net of deferred tax
|
||||||||||||||||||||||||||||||||
Unrealized
net losses in securities available for sale
|
(2,779 | ) | (2,779 | ) | (2,779 | ) | ||||||||||||||||||||||||||
Minimum
pension liability adjustment
|
33 | 33 | 33 | |||||||||||||||||||||||||||||
Comprehensive
Income
|
6,877 | |||||||||||||||||||||||||||||||
Balance
at December 31, 2005
|
$ | 64 | $ | 21,631 | $ | 31,813 | $ | (4,285 | ) | $ | (108 | ) | $ | (2,464 | ) | $ | 46,651 | |||||||||||||||
Net
income
|
8,168 | 8,168 | 8,168 | |||||||||||||||||||||||||||||
Transfer
due to adoption of SFAS 123(R)
|
(108 | ) | 108 | - | ||||||||||||||||||||||||||||
Stock
awards granted
|
(189 | ) | 189 | - | ||||||||||||||||||||||||||||
Stock
awards forfeited
|
2 | (2 | ) | - | ||||||||||||||||||||||||||||
Exercise
of stock options, including tax benefit
|
110 | (39 | ) | 71 | ||||||||||||||||||||||||||||
Share
based compensation expense
|
119 | 119 | ||||||||||||||||||||||||||||||
Treasury
stock purchases
|
(4,039 | ) | (4,039 | ) | ||||||||||||||||||||||||||||
Cash
dividends declared, $0.92 per share
|
(5,634 | ) | (5,634 | ) | ||||||||||||||||||||||||||||
Other
comprehensive income, net of deferred tax
|
||||||||||||||||||||||||||||||||
Change
in unrealized net losses in securities available for sale, net of
reclassification and tax effects
|
851 | 851 | 851 | |||||||||||||||||||||||||||||
Adjustment
to initially apply SFAS 158, net of deferred
tax
|
(648 | ) | (648 | ) | ||||||||||||||||||||||||||||
Comprehensive
Income
|
9,019 | |||||||||||||||||||||||||||||||
Balance
at December 31, 2006
|
$ | 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 | |||||||||||||||||||||||||||||
Share
based compensation expense
|
244 | 244 | ||||||||||||||||||||||||||||||
Cash
dividends declared, $0.92 per share
|
(5,610 | ) | (5,610 | ) | ||||||||||||||||||||||||||||
Other
comprehensive income, net of deferred tax
|
||||||||||||||||||||||||||||||||
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 |
Year
Ended December 31,
|
2007
|
2006
|
2005
|
||
Operating
activities:
|
|||||
Net
Income
|
$ 8,294
|
$ 8,168
|
$ 9,623
|
||
Adjustments
to reconcile net income to net cash provided by
operating activities:
|
|||||
Provision
for loan losses
|
600
|
85
|
300
|
||
Depreciation
and amortization
|
1,223
|
886
|
847
|
||
(Accretion)
and amortization, net
|
(22)
|
272
|
786
|
||
Share
based compensation expense
|
244
|
119
|
65
|
||
Tax
benefit from exercise of stock options issued pursuant to equity incentive
plans
|
(25)
|
(21)
|
(16)
|
||
SERP
expense
|
214
|
268
|
153
|
||
Net
securities losses (gains)
|
101
|
289
|
(116)
|
||
Increase
in accrued interest receivable
|
(15)
|
(68)
|
(155)
|
||
Deferred
income tax expense (benefit)
|
(257)
|
(400)
|
21
|
||
(Increase)
decrease in other assets
|
(1,346)
|
1,975
|
(986)
|
||
Increase
(decrease) in accrued and other liabilities
|
595
|
(35)
|
405
|
||
Net
cash provided by operating activities
|
9,606
|
11,538
|
10,927
|
||
Investing
activities:
|
|||||
Purchases
of securities available for sale
|
(37,935)
|
(62,500)
|
(32,273)
|
||
Purchases
of securities, restricted
|
(16,595)
|
(10,343)
|
(190)
|
||
Purchases
of securities held to maturity
|
(5,836)
|
(9,444)
|
(13,262)
|
||
Sales
of securities available for sale
|
8,484
|
19,537
|
21,173
|
||
Redemption
of securities, restricted
|
15,086
|
10,842
|
792
|
||
Maturities
of securities available for sale
|
28,978
|
5,675
|
2,995
|
||
Maturities
of securities held to maturity
|
9,444
|
10,012
|
24,463
|
||
Principal
payments on mortgage-backed securities
|
18,503
|
18,361
|
22,032
|
||
Net
increase in loans
|
(49,397)
|
(23,689)
|
(6,235)
|
||
Purchases
of premises and equipment
|
(1,687)
|
(3,251)
|
(2,670)
|
||
Net
cash (used) provided by investing activities
|
(30,955)
|
(44,800)
|
16,825
|
||
Financing
activities:
|
|||||
Net
increase (decrease) in deposits
|
4,497
|
36,387
|
(1,286)
|
||
Increase
(decrease) in other borrowings
|
23,400
|
4,100
|
(12,200)
|
||
Purchase
of Treasury stock
|
-
|
(4,039)
|
(2,134)
|
||
Net
proceeds from exercise of stock options issued pursuant to
equity incentive plan
|
149
|
70
|
232
|
||
Cash
dividends paid
|
(5,612)
|
(5,668)
|
(5,551)
|
||
Net
cash provided (used) by financing activities
|
22,434
|
30,850
|
(20,939)
|
||
Increase
(decrease) in cash and cash equivalents
|
1,085
|
(2,412)
|
6,813
|
||
Cash
and cash equivalents beginning of year
|
13,263
|
15,675
|
8,862
|
||
Cash
and cash equivalents end of year
|
$14,348
|
$13,263
|
$15,675
|
||
Supplemental
Information-Cash Flows:
|
|||||
Cash
paid for:
|
|||||
Interest
|
$ 10,651
|
$ 7,810
|
$ 4,264
|
||
Income
taxes
|
$ 4,598
|
$ 3,323
|
$ 5,023
|
||
Noncash
investing and financing activities:
|
|||||
Dividends
declared and unpaid at year end
|
$ 1,406
|
$ 1,394
|
$ 1,428
|
For
the Year Ended
|
2005
|
||||
(In
thousands, expect per share)
|
|||||
Net
Income:
|
As
Reported:
|
$ | 9,623 | ||
Pro
Forma:
|
9,606 | ||||
Diluted
EPS:
|
As
Reported:
|
$ | 1.53 | ||
Pro
Forma:
|
1.53 | ||||
Basic
EPS:
|
As
Reported:
|
$ | 1.54 | ||
Pro
Forma:
|
1.54 |
December
31,
|
2007
|
2006
|
||||||||||||||||||||||||||||||
(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.
Treasury and government agency securities
|
$ | 19,035 | $ | 139 | $ | (38 | ) | $ | 19,136 | $ | 34,123 | $ | - | $ | (346 | ) | $ | 33,777 | ||||||||||||||
State
and municipal obligations
|
47,547 | 435 | (179 | ) | 47,803 | 49,008 | 316 | (481 | ) | 48,843 | ||||||||||||||||||||||
Mortgage-backed
securities
|
120,450 | 1,060 | (1,065 | ) | 120,445 | 122,009 | 364 | (2,403 | ) | 119,970 | ||||||||||||||||||||||
Total
available for sale
|
187,032 | 1,634 | (1,282 | ) | 187,384 | 205,140 | 680 | (3,230 | ) | 202,590 | ||||||||||||||||||||||
Held
to maturity:
|
||||||||||||||||||||||||||||||||
State
and municipal obligations
|
5,836 | 8 | - | 5,844 | 9,444 | - | (2 | ) | 9,442 | |||||||||||||||||||||||
Total
held to maturity
|
5,836 | 8 | - | 5,844 | 9,444 | - | (2 | ) | 9,442 | |||||||||||||||||||||||
Total
securities
|
$ | 192,868 | $ | 1,642 | $ | (1,282 | ) | $ | 193,228 | $ | 214,584 | $ | 680 | $ | (3,232 | ) | $ | 212,032 |
December
31,
|
2007
|
2006
|
||||||||||||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||||||||||
Less
than 12 months
|
Greater
than 12 months
|
Less
than 12 months
|
Greater
than 12 months
|
|||||||||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
Unrealized
|
|||||||||||||||||||||||||||||
Fair
Value
|
Losses
|
Fair
Value
|
Losses
|
Fair
Value
|
Losses
|
Fair
Value
|
Losses
|
|||||||||||||||||||||||||
U.S.
Treasury and government agency securities
|
$ | - | $ | - | $ | 12,328 | $ | 38 | $ | 13,684 | $ | 13 | $ | 20,093 | $ | 333 | ||||||||||||||||
State
and municipal obligations
|
3,284 | 49 | 14,918 | 130 | 9,343 | 13 | 25,228 | 470 | ||||||||||||||||||||||||
Mortgage-backed
securities
|
- | - | 49,468 | 1,065 | 1,252 | 5 | 75,135 | 2,398 | ||||||||||||||||||||||||
Total
temporarily impaired securities
|
$ | 3,284 | $ | 49 | $ | 76,714 | $ | 1,233 | $ | 24,279 | $ | 31 | $ | 120,456 | $ | 3,201 |
December 31,
2007
|
Within
|
After
One But
|
After
Five But
|
After
|
||||||||||||||||||||||||||||||||||||
(Dollars
in thousands)
|
One
Year
|
Within
Five Years
|
Within
Ten Years
|
Ten
Years
|
Total
|
|||||||||||||||||||||||||||||||||||
Fair
Value
Amount
|
Amortized
Cost
Amount
|
Fair
Value
Amount
|
Amortized
Cost
Amount
|
Fair
Value
Amount
|
Amortized
Cost
Amount
|
Fair
Value
Amount
|
Amortized
Cost
Amount
|
Fair Value Amount
|
Amortized
Cost
Amount
|
|||||||||||||||||||||||||||||||
Available
for sale:
|
||||||||||||||||||||||||||||||||||||||||
U.S.
Treasury and government agency securities
|
$ | 14,315 | $ | 14,341 | $ | 4,821 | $ | 4,694 | $ | - | $ | - | $ | - | $ | - | $ | 19,136 | $ | 19,035 | ||||||||||||||||||||
Mortgage-backed
securities
|
- | - | 10,701 | 10,876 | 18,866 | 18,860 | 90,878 | 90,714 | 120,445 | 120,450 | ||||||||||||||||||||||||||||||
State
and municipal obligations
|
5,164 | 5,166 | 22,271 | 22,332 | 18,923 | 18,587 | 1,445 | 1,462 | 47,803 | 47,547 | ||||||||||||||||||||||||||||||
Total
available for sale
|
19,479 | 19,507 | 37,793 | 37,902 | 37,789 | 37,447 | 92,323 | 92,176 | 187,384 | 187,032 | ||||||||||||||||||||||||||||||
Held
to maturity:
|
||||||||||||||||||||||||||||||||||||||||
State
and municipal obligations
|
5,844 | 5,836 | - | - | - | - | - | - | 5,844 | 5,836 | ||||||||||||||||||||||||||||||
Total
held to maturity
|
5,844 | 5,836 | - | - | - | - | - | - | 5,844 | 5,836 | ||||||||||||||||||||||||||||||
Total
securities
|
$ | 25,323 | $ | 25,343 | $ | 37,793 | $ | 37,902 | $ | 37,789 | $ | 37,447 | $ | 92,323 | $ | 92,176 | $ | 193,228 | $ | 192,868 |
December
31,
|
2007
|
2006
|
||||||
(In
thousands)
|
||||||||
Commercial
real estate mortgage loans
|
$ | 175,876 | $ | 159,054 | ||||
Residential
real estate mortgage loans
|
125,317 | 106,770 | ||||||
Commercial,
financial, and agricultural loans
|
50,531 | 36,498 | ||||||
Installment/consumer
loans
|
8,553 | 8,848 | ||||||
Real
estate construction loans
|
14,867 | 14,767 | ||||||
Total
loans
|
375,144 | 325,937 | ||||||
Net
deferred loan cost and fees
|
92 | 60 | ||||||
375,236 | 325,997 | |||||||
Allowance
for loan losses
|
(2,954 | ) | (2,512 | ) | ||||
Net
loans
|
$ | 372,282 | $ | 323,485 |
December
31,
|
2007
|
2006
|
2005
|
|||||||||
(In
thousands)
|
||||||||||||
Allowance
for loan losses balance at beginning
of period
|
$ | 2,512 | $ | 2,383 | $ | 2,188 | ||||||
Charge-offs
|
(226 | ) | (83 | ) | (289 | ) | ||||||
Recoveries
|
68 | 127 | 184 | |||||||||
Net
(charge-offs) recoveries
|
(158 | ) | 44 | (105 | ) | |||||||
Provision
for loan losses charged to
operations
|
600 | 85 | 300 | |||||||||
Balance
at end of period
|
$ | 2,954 | $ | 2,512 | $ | 2,383 |
Balance
Outstanding
|
||||
(In
thousands)
|
||||
Balance
at December 31, 2006
|
$ | 1,179 | ||
New
loans
|
138 | |||
Effective
change in related parties
|
(487 | ) | ||
Advances
|
672 | |||
Repayments
|
(153 | ) | ||
Balance
at December 31, 2007
|
$ | 1,349 |
December
31,
|
2007
|
2006
|
||||||
(In
thousands)
|
||||||||
Land
|
$ | 6,142 | $ | 6,142 | ||||
Construction
in progress
|
98 | 3,242 | ||||||
Buildings
and improvements
|
11,605 | 8,741 | ||||||
Furniture
and fixtures
|
8,012 | 7,108 | ||||||
Leasehold
improvements
|
2,241 | 1,238 | ||||||
28,098 | 26,471 | |||||||
Less: accumulated
depreciation and amortization
|
(9,629 | ) | (8,466 | ) | ||||
$ | 18,469 | $ | 18,005 |
Less
than
$100,000
|
$100,000
or
Greater
|
Total
|
||||||||||
(In
thousands)
|
||||||||||||
2008
|
$ | 32,266 | $ | 43,297 | $ | 75,563 | ||||||
2009
|
1,742 | 348 | 2,090 | |||||||||
2010
|
515 | 201 | 716 | |||||||||
2011
|
262 | 155 | 417 | |||||||||
2012
|
213 | 768 | 981 | |||||||||
Total
|
$ | 34,998 | $ | 44,769 | $ | 79,767 |
Year
Ended December 31,
|
2007
|
2006
|
2005
|
|||||||||
(In
thousands)
|
||||||||||||
Current:
|
||||||||||||
Federal
|
$ | 3,221 | $ | 2,967 | $ | 4,087 | ||||||
State
|
565 | 484 | 863 | |||||||||
3,786 | 3,451 | 4,950 | ||||||||||
Deferred:
|
||||||||||||
Federal
|
194 | 310 | (22 | ) | ||||||||
State
|
63 | 90 | 1 | |||||||||
257 | 400 | (21 | ) | |||||||||
Income
tax expense
|
$ | 4,043 | $ | 3,851 | $ | 4,929 |
Year
Ended December 31,
|
2007
|
2006
|
2005
|
|||||||||||||||||||||
(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
|
$ | 4,195 | 34 | % | $ | 4,087 | 34 | % | $ | 4,984 | 34 | % | ||||||||||||
Tax
exempt interest
|
(644 | ) | (5 | ) | (706 | ) | (6 | ) | (665 | ) | (5 | ) | ||||||||||||
State
taxes, net of Federal income tax benefit
|
415 | 3 | 379 | 3 | 568 | 4 | ||||||||||||||||||
Other
|
77 | 1 | 91 | 1 | 42 | 1 | ||||||||||||||||||
Income
tax expense
|
$ | 4,043 | 33 | % | $ | 3,851 | 32 | % | $ | 4,929 | 34 | % |
December
31,
|
2007
|
2006
|
||||||
(In
thousands)
|
||||||||
Deferred
tax assets:
|
||||||||
Allowance
for loan losses
|
$ | 1,300 | $ | 1,102 | ||||
Total
|
1,300 | 1,102 | ||||||
Deferred
tax liabilities:
|
||||||||
Pension
expense
|
(435 | ) | (265 | ) | ||||
Other
|
(94 | ) | (219 | ) | ||||
Depreciation
|
(227 | ) | (332 | ) | ||||
Total
|
(756 | ) | (816 | ) | ||||
Total
before other comprehensive income
|
544 | 286 | ||||||
SFAS
115 deferred tax (liability) asset
|
(140 | ) | 1,025 | |||||
SFAS
158 deferred tax (liability) asset
|
(7 | ) | 490 | |||||
Net
deferred tax asset
|
$ | 397 | $ | 1,801 |
Pension
Benefits
|
SERP
Benefits
|
|||||||||||||||
At
December 31,
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
(In
thousands)
|
||||||||||||||||
Change
in benefit obligation
|
||||||||||||||||
Benefit
obligation at beginning of year
|
$ | 4,943 | $ | 4,631 | $ | 1,119 | $ | 1,181 | ||||||||
Service
cost
|
451 | 424 | 61 | 65 | ||||||||||||
Interest
cost
|
280 | 252 | 53 | 55 | ||||||||||||
Benefits
paid and expected expenses
|
(205 | ) | (195 | ) | (17 | ) | (105 | ) | ||||||||
Assumption
changes and other
|
(753 | ) | (169 | ) | (162 | ) | (77 | ) | ||||||||
Benefit
obligation at end of year
|
$ | 4,716 | $ | 4,943 | $ | 1,054 | $ | 1,119 | ||||||||
Change
in plan assets, at fair value
|
||||||||||||||||
Plan
assets at beginning of year
|
$ | 5,005 | $ | 4,034 | - | - | ||||||||||
Actual
return on plan assets
|
785 | 500 | - | - | ||||||||||||
Employer
contribution
|
990 | 666 | 17 | - | ||||||||||||
Benefits
paid and actual expenses
|
(206 | ) | (195 | ) | (17 | ) | - | |||||||||
Plan
assets at end of year
|
$ | 6,574 | $ | 5,005 | - | - | ||||||||||
Funded
status (plan assets less benefit obligations)
|
$ | 1,858 | $ | 62 | $ | (1,054 | ) | $ | (1,119 | ) |
Pension
Benefits
|
SERP
Benefits
|
|||||||||||||||
At
December 31,
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
(In
thousands)
|
||||||||||||||||
Net
actuarial (gains)/loss
|
$ | (431 | ) | $ | 725 | $ | 4 | $ | - | |||||||
Prior
service cost
|
120 | 128 | - | - | ||||||||||||
Transition
obligation
|
- | - | 280 | 371 | ||||||||||||
Minimum
additional pension liability
|
- | - | - | (147 | ) | |||||||||||
Net
amount recognized
|
$ | (311 | ) | $ | 853 | $ | 284 | $ | 224 |
Pension
Benefits
|
SERP
Benefits
|
|||||||||||||||||||||||
At
December 31,
|
2007
|
2006
|
2005
|
2007
|
2006
|
2005
|
||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||
Components
of net periodic benefit cost and other amounts recognized in Other
Comprehensive Income
|
||||||||||||||||||||||||
Service
cost
|
$ | 451 | $ | 424 | $ | 317 | $ | 61 | $ | 65 | $ | 87 | ||||||||||||
Interest
cost
|
280 | 252 | 223 | 52 | 55 | 71 | ||||||||||||||||||
Expected
return on plan assets
|
(395 | ) | (327 | ) | (296 | ) | - | - | - | |||||||||||||||
Amortization
of net loss
|
14 | 40 | 25 | - | - | 22 | ||||||||||||||||||
Amortization
of unrecognized prior service cost
|
9 | 9 | 10 | - | - | - | ||||||||||||||||||
Amortization
of unrecognized transition (asset) obligation
|
- | (3 | ) | (9 | ) | 28 | 28 | 28 | ||||||||||||||||
Net
periodic benefit cost
|
$ | 359 | $ | 395 | $ | 270 | $ | 141 | $ | 148 | $ | 208 | ||||||||||||
|
||||||||||||||||||||||||
Net
(gain) loss
|
$ | (1,141 | ) | - | - | $ | 4 | - | - | |||||||||||||||
Prior
service cost
|
- | - | - | - | - | - | ||||||||||||||||||
Transition
obligation
|
- | - | - | (64 | ) | - | - | |||||||||||||||||
Amortization
of net (gain) loss
|
(14 | ) | - | - | - | - | - | |||||||||||||||||
Amortization
of prior service cost
|
(9 | ) | - | - | - | - | - | |||||||||||||||||
Amortization
of transition obligation
|
- | - | - | (28 | ) | - | - | |||||||||||||||||
|
(1,164 | ) | - | - | (88 | ) | - | - | ||||||||||||||||
Deferred
taxes
|
462 | - | - | 35 | - | - | ||||||||||||||||||
Total
recognized in other comprehensive income
|
(702 | ) | - | - | (53 | ) | - | - | ||||||||||||||||
Total
recognized in net periodic benefit cost and other comprehensive
income
|
$ | (343 | ) | $ | 395 | $ | 270 | $ | 88 | $ | 148 | $ | 208 |
Plan
Assets at September 30,
|
2007
|
2006
|
||||||
Asset
Category:
|
||||||||
Equity
Securities
|
57.9 | % | 59.8 | % | ||||
Debt
Securities
|
39.9 | 39.9 | ||||||
Other
|
2.2 | 0.3 | ||||||
Total
|
100.0 | % | 100.0 | % |
Pension
Benefits
|
SERP
Benefits
|
|||||||||||||||||||||||
At
December 31,
|
2007
|
2006
|
2005
|
2007
|
2006
|
2005
|
||||||||||||||||||
Weighted
Average Assumptions Used to Determine Benefit Obligations
|
||||||||||||||||||||||||
Discount
rate
|
6.00 | % | 5.75 | % | 5.50 | % | 4.52 | % | 4.69 | % | 4.68 | % | ||||||||||||
Rate
of compensation increase
|
4.00 | 4.50 | 4.50 | 5.00 | 5.00 | 5.00 | ||||||||||||||||||
Weighted
Average Assumptions Used to Determine Net Periodic Benefit Cost
(Income)
|
||||||||||||||||||||||||
Discount
rate
|
5.75 | % | 5.50 | % | 6.00 | % | 4.69 | % | 4.73 | % | 4.90 | % | ||||||||||||
Rate
of compensation increase
|
4.50 | 4.50 | 4.00 | 5.00 | 4.00 | 4.00 | ||||||||||||||||||
Expected
long-term rate of return
|
8.00 | 8.00 | 8.00 | - | - | - |
Year
|
Pension
and SERP Payments
|
|||
(In
thousands)
|
||||
2008
|
116 | |||
2009
|
138 | |||
2010
|
1,393 | |||
2011
|
137 | |||
2012
|
204 | |||
Following
5 years
|
1,101 |
For
the Year Ended
|
2007
|
2006
|
2005
|
|||||||||
Risk
free interest rate
|
- | 4.70 | % | 3.66 | % | |||||||
Expected
dividend yield
|
- | 3.67 | 3.76 | |||||||||
Expected
volatility
|
- | 20.2 | 21.3 | |||||||||
Expected
life (in years)
|
- | 6.0 | 4.6 |
Weighted
|
|||||||||||||
Weighted
|
Average
|
||||||||||||
Number
|
Average
|
Remaining
|
Aggregate
|
||||||||||
of
|
Exercise
|
Contractual
|
Intrinsic
|
||||||||||
Options
|
Price
|
Life
|
Value
|
||||||||||
Outstanding,
December 31, 2006
|
128,245 | $ | 21.37 | ||||||||||
Granted
|
- | - | |||||||||||
Exercised
|
(13,500 | ) | $ | 14.66 | |||||||||
Forfeited
|
(14,330 | ) | $ | 25.26 | |||||||||
Outstanding,
December 31, 2007
|
100,415 | $ | 21.72 |
6.50
years
|
$ | 293,861 | |||||||
Vested
or expected to vest
|
96,256 | $ | 21.57 |
6.39
years
|
$ | 293,861 | |||||||
Exercisable,
December 31, 2007
|
67,180 | $ | 19.93 |
5.51
years
|
$ | 293,861 | |||||||
Number
of
|
|||||||||||||
Range
of Exercise Prices
|
Shares
|
Price
|
|||||||||||
8,400 | $ | 12.53 | |||||||||||
13,683 | $ | 13.17-14.67 | |||||||||||
11,100 | $ | 15.47 | |||||||||||
9,596 | $ | 24.00 | |||||||||||
51,998 | $ | 25.25 | |||||||||||
5,638 | $ | 26.00-$30.60 |
December
31,
|
2007
|
2006
|
2005
|
|||||||||
(Dollars
in thousands, except for per share data)
|
||||||||||||
Intrinsic
value of options exercised
|
$ | 130 | $ | 180 | $ | 289 | ||||||
Cash
received from options exercised
|
124 | 49 | 216 | |||||||||
Tax
benefit realized from option exercises
|
25 | 21 | 16 | |||||||||
Weighted
average fair value of options granted
|
- | $ | 4.45 | $ | 4.39 |
Weighted
|
||||||||
Average
Grant-Date
|
||||||||
Shares
|
Fair
Value
|
|||||||
Unvested,
December 31, 2006
|
19,850 | $ | 25.50 | |||||
Granted
|
22,000 | $ | 24.50 | |||||
Vested
|
(2,030 | ) | $ | 25.70 | ||||
Forfeited
|
(3,147 | ) | $ | 25.36 | ||||
Unvested,
December 31, 2007
|
36,673 | $ | 24.82 |
For
the Year Ended December 31,
|
2007
|
2006
|
2005
|
|||||||||
(In
thousands, except per share data)
|
||||||||||||
Net
income
|
$ | 8,294 | $ | 8,168 | $ | 9,623 | ||||||
Common
equivalent shares:
|
||||||||||||
Weighted
average common shares outstanding
|
6,072 | 6,139 | 6,241 | |||||||||
Weighted
average common equivalent shares
|
20 | 20 | 34 | |||||||||
Weighted
average common and common equivalent shares
|
6,092 | 6,159 | 6,275 | |||||||||
Basic
earnings per share
|
$ | 1.37 | $ | 1.33 | $ | 1.54 | ||||||
Diluted
earnings per share
|
$ | 1.36 | $ | 1.33 | $ | 1.53 |
December
31, 2007
|
||||
(In
thousands)
|
||||
2008
|
$ | 641 | ||
2009
|
633 | |||
2010
|
448 | |||
2011
|
307 | |||
2012
|
241 | |||
Thereafter
|
1,059 | |||
Total
minimum rentals
|
$ | 3,329 |
December
31,
|
2007
|
2006
|
||||||
(In
thousands)
|
||||||||
Standby
letters of credit
|
$ | 3,016 | $ | 2,736 | ||||
Loan
commitments outstanding (1)
|
23,452 | 16,718 | ||||||
Unused
lines of credit
|
106,207 | 98,960 | ||||||
Total
commitments outstanding
|
$ | 132,675 | $ | 118,414 |
(1)
|
Of the $23,452,000
of loan commitments outstanding at December 31, 2007, $6,589,000
are
fixed rate commitments and $16,863,000 are variable rate
commitments.
|
December
31,
|
2007
|
2006
|
||||||||||||||
(In
thousands)
|
Carrying
|
Fair
|
Carrying
|
Fair
|
||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
Financial
Assets:
|
||||||||||||||||
Cash
and due from banks
|
$ | 14,213 | $ | 14,213 | $ | 13,231 | $ | 13,231 | ||||||||
Interest
bearing deposits with banks
|
135 | 135 | 32 | 32 | ||||||||||||
Securities
available for sale
|
187,384 | 187,384 | 202,590 | 202,590 | ||||||||||||
Securities
restricted
|
2,387 | 2,387 | 878 | 878 | ||||||||||||
Securities
held to maturity
|
5,836 | 5,844 | 9,444 | 9,442 | ||||||||||||
Loans,
net
|
372,282 | 378,698 | 323,485 | 318,697 | ||||||||||||
Accrued
interest receivable
|
2,707 | 2,707 | 2,692 | 2,692 | ||||||||||||
Financial
Liabilities:
|
||||||||||||||||
Demand
and other deposits
|
508,909 | 508,747 | 504,412 | 504,365 | ||||||||||||
Overnight
borrowings
|
42,000 | 42,000 | 18,600 | 18,600 | ||||||||||||
Accrued
interest payable
|
641 | 641 | 855 | 855 | ||||||||||||
Off-Balance-Sheet
Liabilities
|
||||||||||||||||
Commitments
to extend credit
|
23,452 | - | 16,718 | - |
Bridge
Bancorp, Inc. (Consolidated)
|
||||||||||||||||||||||||
As
of December 31,
|
2007
|
|||||||||||||||||||||||
(Dollars
in thousands)
|
Actual
|
For
Capital
Adequacy
Purposes
|
To
Be Well
Capitalized
Under
Prompt
Corrective
Action
Provisions
|
|||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
Total
Capital (to risk weighted assets)
|
$ | 53,950 | 12.1 | % | $ | 35,542 | 8.0 | % | n/a | n/a | ||||||||||||||
Tier
1 Capital (to risk weighted assets)
|
50,877 | 11.5 | % | 17,771 | 4.0 | % | n/a | n/a | ||||||||||||||||
Tier
1 Capital (to average assets)
|
50,877 | 8.4 | % | 24,347 | 4.0 | % | n/a | n/a |
As
of December 31,
|
2006
|
|||||||||||||||||||||||
(Dollars
in thousands)
|
Actual
|
For
Capital
Adequacy
Purposes
|
To
Be Well
Capitalized
Under
Prompt
Corrective
Action
Provisions
|
|||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
Total
Capital (to risk weighted assets)
|
$ | 50,312 | 12.6 | % | $ | 32,032 | 8.0 | % | n/a | n/a | ||||||||||||||
Tier
1 Capital (to risk weighted assets)
|
47,800 | 11.9 | % | 16,016 | 4.0 | % | n/a | n/a | ||||||||||||||||
Tier
1 Capital (to average assets)
|
47,800 | 8.3 | % | 23,075 | 4.0 | % | n/a | n/a |
Bridgehampton
National Bank
|
||||||||||||||||||||||||
As
of December 31,
|
2007
|
|||||||||||||||||||||||
(Dollars
in thousands)
|
Actual
|
For
Capital
Adequacy
Purposes
|
To
Be Well
Capitalized
Under
Prompt
Corrective
Action
Provisions
|
|||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
Total
Capital (to risk weighted assets)
|
$ | 47,860 | 10.8 | % | $ | 35,524 | 8.0 | % | $ | 44,405 | 10.0 | % | ||||||||||||
Tier
1 Capital (to risk weighted assets)
|
44,906 | 10.1 | % | 17,762 | 4.0 | % | 26,643 | 6.0 | % | |||||||||||||||
Tier
1 Capital (to average assets)
|
44,906 | 7.4 | % | 24,338 | 4.0 | % | 30,423 | 5.0 | % |
As
of December 31,
|
2006
|
|||||||||||||||||||||||
(Dollars
in thousands)
|
Actual
|
For
Capital
Adequacy
Purposes
|
To
Be Well
Capitalized
Under
Prompt
Corrective
Action
Provisions
|
|||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
Total
Capital (to risk weighted assets)
|
$ | 50,152 | 12.5 | % | $ | 32,019 | 8.0 | % | $ | 40,024 | 10.0 | % | ||||||||||||
Tier
1 Capital (to risk weighted assets)
|
47,640 | 11.9 | % | 16,010 | 4.0 | % | 24,015 | 6.0 | % | |||||||||||||||
Tier
1 Capital (to average assets)
|
47,640 | 8.3 | % | 23,073 | 4.0 | % | 28,841 | 5.0 | % |
December
31,
|
2007
|
2006
|
||||||
(In
thousands, except share data)
|
||||||||
ASSETS
|
||||||||
Cash
and cash equivalents
|
$ | 5,751 | $ | 2 | ||||
Dividend
receivable from the Bank
|
1,406 | 1,408 | ||||||
Other
assets
|
221 | 157 | ||||||
Investment
in the Bank
|
45,137 | 45,379 | ||||||
Total
Assets
|
$ | 52,515 | $ | 46,946 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Liabilities
|
||||||||
Dividends
payable
|
$ | 1,406 | $ | 1,394 | ||||
Other
liabilities
|
- | 13 | ||||||
Total
Liabilities
|
1,406 | 1,407 | ||||||
Total
Stockholders’ Equity
|
51,109 | 45,539 | ||||||
Total
Liabilities and Stockholders’ Equity
|
$ | 52,515 | $ | 46,946 |
Year
Ended December 31,
|
2007
|
2006
|
2005
|
|||||||||
(In
thousands)
|
||||||||||||
Dividends
from the Bank
|
$ | 11,029 | $ | 9,482 | $ | 6,390 | ||||||
Non
interest expenses
|
1 | 1 | 1 | |||||||||
Income
before income taxes and equity in undistributed
earnings of the Bank
|
11,028 | 9,481 | 6,389 | |||||||||
Income
tax expense
|
- | - | - | |||||||||
Income
before equity in undistributed earnings of the
Bank
|
11,028 | 9,481 | 6,389 | |||||||||
Equity
in (overdistributed) undistributed earnings of the Bank
|
(2,734 | ) | (1,313 | ) | 3,234 | |||||||
Net
income
|
$ | 8,294 | $ | 8,168 | $ | 9,623 |
Year
Ended December 31,
|
2007
|
2006
|
2005
|
|||||||||
(In
thousands)
|
||||||||||||
Operating
Activities:
|
||||||||||||
Net
income
|
$ | 8,294 | $ | 8,168 | $ | 9,623 | ||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||||
Equity
in overdistributed (undistributed) earnings of the Bank
|
2,734 | 1,313 | (3,234 | ) | ||||||||
Income
tax benefit from exercise of employee stock options
|
25 | 21 | 16 | |||||||||
Decrease
in other assets
|
172 | 602 | 93 | |||||||||
(Decrease)
increase in other liabilities
|
(13 | ) | (545 | ) | 11 | |||||||
Net
cash provided by operating activities
|
11,212 | 9,559 | 6,509 | |||||||||
Cash
flows used by financing activities:
|
||||||||||||
Net
proceeds from issuance of common stock upon exercise of stock
options
|
149 | 70 | 232 | |||||||||
Purchase
of treasury stock
|
- | (4,039 | ) | (2,134 | ) | |||||||
Dividends
paid
|
(5,612 | ) | (5,668 | ) | (5,551 | ) | ||||||
Net
cash used by financing activities
|
(5,463 | ) | (9,637 | ) | (7,453 | ) | ||||||
Net
increase (decrease) in cash and cash equivalents
|
5,749 | (78 | ) | (944 | ) | |||||||
Cash
and cash equivalents at beginning of year
|
2 | 80 | 1,024 | |||||||||
Cash
and cash equivalents at end of year
|
$ | 5,751 | $ | 2 | $ | 80 |
Year
Ended December 31,
|
2007
|
2006
|
2005
|
|||||||||
(In
thousands)
|
||||||||||||
Unrealized
holding gains (losses) on available for sale securities
|
$ | 2,802 | $ | 1,134 | $ | (4,528 | ) | |||||
Reclassification
adjustment for losses (gains) realized in income
|
101 | 289 | (116 | ) | ||||||||
Tax
effect
|
(1,165 | ) | (572 | ) | 1,865 | |||||||
Net
change in unrealized gain (loss) on available for sale
securities
|
1,738 | 851 | (2,779 | ) | ||||||||
Change
in post-retirement obligation
|
1,252 | - | - | |||||||||
Tax
effect
|
(497 | ) | - | - | ||||||||
Net
change in post-retirement obligation
|
755 | - | - | |||||||||
Total
|
$ | 2,493 | $ | 851 | $ | (2,779 | ) |
Balance
as of
December
31, 2006
|
Current
Period
Change
|
Balance
as of
December
31, 2007
|
||||||||||
(In
thousands)
|
||||||||||||
Unrealized
gains (losses) on available for sale securities
|
$ | (1,525 | ) | $ | 1,738 | $ | 213 | |||||
Unrealized
gain (loss) on pension benefits
|
(736 | ) | 755 | 19 | ||||||||
Total
|
$ | (2,261 | ) | $ | 2,493 | $ | 232 |
2007
Quarter Ended,
|
March
31,
|
June
30,
|
September
30,
|
December
31,
|
||||||||||||
(In
thousands, except per share amounts)
|
||||||||||||||||
Interest
income
|
$ | 8,556 | $ | 8,862 | $ | 9,309 | $ | 9,137 | ||||||||
Interest
expense
|
2,769 | 2,707 | 2,496 | 2,465 | ||||||||||||
Net
interest income
|
5,787 | 6,155 | 6,813 | 6,672 | ||||||||||||
Provision
for loan losses
|
45 | 50 | 150 | 355 | ||||||||||||
Net
interest income after provision for loan losses
|
5,742 | 6,105 | 6,663 | 6,317 | ||||||||||||
Non
interest income
|
1,234 | 1,541 | 1,541 | 1,362 | ||||||||||||
Non
interest expenses
|
4,480 | 4,376 | 4,627 | 4,685 | ||||||||||||
Income
before income taxes
|
2,496 | 3,270 | 3,577 | 2,994 | ||||||||||||
Income
tax expense
|
747 | 1,063 | 1,255 | 978 | ||||||||||||
Net
income
|
$ | 1,749 | $ | 2,207 | $ | 2,322 | $ | 2,016 | ||||||||
Basic
earnings per share
|
$ | 0.29 | $ | 0.36 | $ | 0.38 | $ | 0.33 | ||||||||
Diluted
earnings per share
|
$ | 0.29 | $ | 0.36 | $ | 0.38 | $ | 0.33 | ||||||||
2006
Quarter Ended,
|
March
31,
|
June
30,
|
September
30,
|
December
31,
|
||||||||||||
(In
thousands, except per share amounts)
|
||||||||||||||||
Interest
income
|
$ | 7,555 | $ | 7,674 | $ | 8,281 | $ | 8,520 | ||||||||
Interest
expense
|
1,576 | 1,882 | 2,267 | 2,612 | ||||||||||||
Net
interest income
|
5,979 | 5,792 | 6,014 | 5,908 | ||||||||||||
Provision
for loan losses
|
- | - | - | 85 | ||||||||||||
Net
interest income after provision for loan losses
|
5,979 | 5,792 | 6,014 | 5,823 | ||||||||||||
Non
interest income
|
739 | 1,260 | 1,200 | 1,214 | ||||||||||||
Non
interest expenses
|
3,769 | 4,073 | 4,137 | 4,023 | ||||||||||||
Income
before income taxes
|
2,949 | 2,979 | 3,077 | 3,014 | ||||||||||||
Income
tax expense
|
1,010 | 941 | 925 | 975 | ||||||||||||
Net
income
|
$ | 1,939 | $ | 2,038 | $ | 2,152 | $ | 2,039 | ||||||||
Basic
earnings per share
|
$ | 0.31 | $ | 0.33 | $ | 0.35 | $ | 0.34 | ||||||||
Diluted
earnings per share
|
$ | 0.31 | $ | 0.33 | $ | 0.35 | $ | 0.34 |
/s/
Crowe Chizek and Company LLC
|
|
Crowe
Chizek and Company LLC
|
Equity
Compensation Plan approved by Stockholders
|
Number
of securities to be Issued upon Exercise of outstanding options and
awards
|
Weighted
Average Exercise Price with respect to Outstanding Stock
Options
|
Number
of Securities Remaining Available for Issuance under the
Plan
|
|||||||||
1996
Equity Incentive Plan
|
50,187 |
$
|
17.93 | - | ||||||||
2006
Equity Incentive Plan
|
86,901 |
$
|
25.25 | 533,099 | ||||||||
Total
|
137,088 |
$
|
21.72 | 533,099 |
(a)
The following Consolidated Financial Statements, including notes thereto,
and financial schedules of the Company, required in response to this item
are included in Part II, Item 8.
|
||
1. Financial
Statements
|
Page
No.
|
|
Consolidated Balance
Sheets
|
25
|
|
Consolidated Statements of
Income
|
26
|
|
Consolidated Statements of
Stockholders’ Equity
|
27
|
|
Consolidated Statements of Cash
Flows
|
28
|
|
Notes to Consolidated Financial
Statements
|
29
|
|
Report of Independent Registered
Public Accounting Firm
|
51
|
|
2. Financial
Statement Schedules
|
||
Financial
Statement Schedules have been omitted because they are not applicable or
the required information is shown in the Consolidated Financial Statements
or Notes thereto under Item 8, “Financial Statements and Supplementary
Data.”
|
||
3. Exhibits.
|
||
See Index of Exhibits on page
55.
|
BRIDGE BANCORP,
INC.
|
|
Registrant
|
|
March
14, 2008
|
/s/ Kevin M.
O’Connor
|
Kevin
M. O’Connor
|
|
President
and Chief Executive Officer
|
|
March
14, 2008
|
/s/ Howard H.
Nolan
|
Howard
H. Nolan
|
|
Senior
Executive Vice President, Chief Financial
|
|
Officer
and Treasurer
|
|
March
14, 2008
|
/s/ Sarah K.
Quinn
|
Sarah
K. Quinn
|
|
Vice
President, Controller and Principal
|
|
Accounting
Officer
|
March
14, 2008
|
/s/ Raymond
Wesnofske
|
,Director
|
Raymond
Wesnofske
|
||
March
14, 2008
|
/s/ Thomas J.
Tobin
|
,Director
|
Thomas
J. Tobin
|
||
March
14, 2008
|
/s/ Thomas E.
Halsey
|
,Director
|
Thomas
E. Halsey
|
||
March
14, 2008
|
/s/ Marcia Z.
Hefter
|
,Director
|
Marcia
Z. Hefter
|
||
March
14, 2008
|
/s/ R. Timothy
Maran
|
,Director
|
R.
Timothy Maran
|
||
March
14, 2008
|
/s/ Charles I.
Massoud
|
,Director
|
Charles
I. Massoud
|
||
March
14, 2008
|
/s/ Howard H.
Nolan
|
,Director
|
Howard
H. Nolan
|
||
March
14, 2008
|
/s/ Dennis A.
Suskind
|
,Director
|
Dennis
A. Suskind
|
||
March
14, 2008
|
/s/ Kevin M.
O’Connor
|
,Director
|
Kevin
M. O’Connor
|
||
March
14, 2008
|
/s/ Emanuel
Arturi
|
,Director
|
Emanuel
Arturi
|
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)
|
*
|
|
3.2
|
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
|
Employment
Contract – Howard H. Nolan (incorporated by reference to Registrant’s Form
10-Q, File No. 0-18546, filed November 7, 2006)
|
*
|
|
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)
|
||
23
|
Accountants’
Consent
|
||
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
|