x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE
|
SECURITIES EXCHANGE ACT OF
1934
|
For
the fiscal year ended December 31, 2006
|
Commission
File No. 000-18546
|
NEW
YORK
|
11-2934195
|
(State
or other jurisdiction of incorporation or organization)
|
(IRS
Employer Identification Number)
|
2200
MONTAUK HIGHWAY, BRIDGEHAMPTON, NEW YORK
|
11932
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Title
of each class
|
Name
of each exchange on which registered
|
None
|
None
|
Business
|
1
|
|
Risk
Factors
|
3
|
|
Unresolved
Staff Comments
|
4
|
|
Properties
|
4
|
|
Legal
Proceedings
|
5
|
|
Submission
of Matters to a Vote of Security Holders
|
5
|
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
5
|
|
Selected
Financial Data
|
7
|
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
8
|
|
Quantitative
and Qualitative Disclosures About Market Risk
|
22
|
|
Financial
Statements and Supplementary Data
|
24
|
|
Changes
in and Disagreements with Accountants on Accounting and Financial
|
||
Disclosure
|
51
|
|
Controls
and Procedures
|
51
|
|
Other
Information
|
51
|
|
Directors,
Executive Officers and Corporate Governance
|
52
|
|
Executive
Compensation
|
52
|
|
Security
Ownership of Certain Beneficial Owners and Management and
|
||
Related
Stockholder Matters
|
52
|
|
Certain
Relationships and Related Transactions, and Director
Independence
|
52
|
|
Principal
Accountant Fees and Services
|
52
|
|
Exhibits
and Financial Statement Schedules
|
52
|
|
53
|
||
54
|
Name
|
Positions
held with the Company
|
|
Thomas
J. Tobin
|
President
and Chief Executive Officer
|
|
Howard
H. Nolan
|
Senior
Executive Vice President and Chief Operating Officer
|
|
Janet
T. Verneuille
|
Executive
Vice President and Chief Financial Officer
|
|
and
Treasurer
|
Stock
Prices
|
Dividends
|
|||||||||
High
|
Low
|
Declared
|
||||||||
By
Quarter 2006
|
||||||||||
First
|
$
|
26.30
|
$
|
24.15
|
$
|
0.23
|
||||
Second
|
$
|
26.65
|
$
|
24.65
|
$
|
0.23
|
||||
Third
|
$
|
26.10
|
$
|
24.50
|
$
|
0.23
|
||||
Fourth
|
$
|
25.85
|
$
|
23.75
|
$
|
0.23
|
||||
|
Stock
Prices
|
Dividends
|
||||||||
|
High
|
Low
|
Declared
|
|||||||
By
Quarter 2005
|
||||||||||
First
|
$
|
32.60
|
$
|
30.20
|
$
|
0.22
|
||||
Second
|
$
|
31.75
|
$
|
26.20
|
$
|
0.23
|
||||
Third
|
$
|
29.50
|
$
|
26.10
|
$
|
0.23
|
||||
Fourth
|
$
|
26.50
|
$
|
24.25
|
$
|
0.23
|
December,
31
|
2001
|
2002
|
2003
|
2004
|
2005
|
2006
|
||||||
Index
|
||||||||||||
Bridge
Bancorp, Inc.
|
100.00
|
127.05
|
206.18
|
276.94
|
231.15
|
232.99
|
||||||
NASDAQ®
Composite
|
100.00
|
68.76
|
103.67
|
113.16
|
115.57
|
127.58
|
||||||
SNL
$500M-$1B Bank Index
|
100.00
|
127.67
|
184.09
|
208.62
|
217.57
|
247.44
|
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
2006
|
10,000
|
$25.95
|
141,959
|
167,041
|
November
2006
|
-
|
-
|
141,959
|
167,041
|
December
2006
|
-
|
-
|
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,
2006.
|
December
31,
|
2006
|
2005
|
2004
|
(2) |
2003
|
(2) |
2002
|
(2) | ||||||||
Selected
Financial Data:
|
||||||||||||||||
Securities
available for sale
|
$
|
202,590
|
$
|
182,801
|
$
|
202,042
|
$
|
193,699
|
$
|
180,800
|
||||||
Securities,
restricted
|
878
|
1,377
|
1,979
|
1,642
|
1,616
|
|||||||||||
Securities
held to maturity
|
9,444
|
10,012
|
21,213
|
14,396
|
11,023
|
|||||||||||
Total
loans
|
325,997
|
302,264
|
296,134
|
273,188
|
248,388
|
|||||||||||
Total
assets
|
573,644
|
533,444
|
547,200
|
511,613
|
463,986
|
|||||||||||
Total
deposits
|
504,412
|
468,025
|
469,311
|
457,159
|
406,409
|
|||||||||||
Total
stockholders’ equity
|
45,539
|
46,651
|
47,213
|
42,794
|
39,971
|
|||||||||||
Year
Ended December 31,
|
||||||||||||||||
Selected
Operating Data:
|
||||||||||||||||
Total
interest income
|
$
|
32,030
|
$
|
28,713
|
$
|
26,923
|
$
|
25,968
|
$
|
26,486
|
||||||
Total
interest expense
|
8,337
|
4,319
|
2,351
|
2,601
|
4,490
|
|||||||||||
Net
interest income
|
23,693
|
24,394
|
24,572
|
23,367
|
21,996
|
|||||||||||
Provision
for loan losses
|
85
|
300
|
300
|
-
|
220
|
|||||||||||
|
||||||||||||||||
Net
interest income after provision for loan losses
|
23,608
|
24,094
|
24,272
|
23,367
|
21,776
|
|||||||||||
Total
other income
|
4,413
|
5,105
|
5,440
|
4,716
|
3,405
|
|||||||||||
Total
other expenses
|
16,002
|
14,647
|
13,564
|
12,997
|
11,942
|
|||||||||||
|
||||||||||||||||
Income
before income taxes
|
12,019
|
14,552
|
16,148
|
15,086
|
13,239
|
|||||||||||
Provision
for income taxes
|
3,851
|
4,929
|
5,771
|
5,488
|
4,722
|
|||||||||||
Net
income
|
$
|
8,168
|
$
|
9,623
|
$
|
10,377
|
$
|
9,598
|
$
|
8,517
|
||||||
December
31,
|
||||||||||||||||
Selected
Financial Ratios and Other Data:
|
||||||||||||||||
Return
on average equity
|
17.68
|
%
|
20.15
|
%
|
22.82
|
%
|
22.58
|
%
|
23.93
|
%
|
||||||
Return
on average assets
|
1.49
|
%
|
1.76
|
%
|
1.89
|
%
|
1.91
|
%
|
1.90
|
%
|
||||||
Average
equity to average assets
|
8.41
|
%
|
8.71
|
%
|
8.30
|
%
|
8.46
|
%
|
7.96
|
%
|
||||||
Dividend
payout ratio (1)
|
68.98
|
%
|
58.88
|
%
|
43.39
|
%
|
50.98
|
%
|
29.57
|
%
|
||||||
Diluted
earnings per share
|
$
|
1.33
|
$
|
1.53
|
$
|
1.64
|
$
|
1.53
|
$
|
1.37
|
||||||
Basic
earnings per share
|
$
|
1.33
|
$
|
1.54
|
$
|
1.66
|
$
|
1.55
|
$
|
1.38
|
||||||
Cash
dividends declared per common share (1)
|
$
|
0.92
|
$
|
0.91
|
$
|
0.72
|
$
|
0.78
|
$
|
0.41
|
(1) |
On
December 15, 2003, the Company declared a special dividend of
approximately $1,660,000, or $0.27 per
share.
|
· |
Returns
on average equity and average assets of 17.68% and 1.49% respectively
for
2006;
|
· |
Net
income of $8,168,000 or $1.33 per diluted share for 2006 as compared
to
net income of $9,623,000 or $1.53 per diluted share for
2005;
|
· |
Net
income of $2,039,000 or $0.34 per diluted share for the fourth quarter
2006 as compared with $2,574,000 or $0.41 per diluted share for the
same
period one year ago;
|
· |
A
net interest margin of 4.8% for 2006 as compared to 4.9% for
2005;
|
· |
Total
assets of $573,644,000 at December 31, 2006, an increase of 7.5%
over the
same date last year;
|
· |
Total
loans of $325,997,000, an increase of 7.9% at December 31, 2006 from
December 31, 2005;
|
· |
Continued
sound credit quality;
|
· |
Total
investments of $212,912,000 at December 31, 2006, an increase of
9.6% over
December 31, 2005;
|
· |
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 $257,000 during the first quarter
of
2006;
|
· |
Total
deposits of $504,412,000 at December 31, 2006, growth of 7.8% over
December 31, 2005;
|
· |
The
Company’s capital levels remain strong with a Tier 1 Capital to Average
Assets ratio of 8.3% and the Company is positioned well for future
growth.
Stockholders’ equity totaled $45,539,000 at December 31, 2006 as compared
$46,651,000 at December 31, 2005;
|
· |
Declaration
of cash dividends totaling $0.92 for 2006;
|
· |
Execution
of the Bank’s branch expansion plan, including completion of the new
Southampton Village and Cutchogue facilities, which opened in January
and
February 2007 respectively; and
|
· |
Regulatory
approval for the Bank’s 14th branch office which will be located in Wading
River, NY.
|
Year
Ended December 31,
|
2006
|
2005
|
2004
|
|||||||||||||||||||||||||
(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)
|
$
|
307,394
|
$
|
23,345
|
7.6
|
%
|
$
|
299,950
|
$
|
20,724
|
6.9
|
%
|
$
|
285,058
|
$
|
18,850
|
6.6
|
%
|
||||||||||
Mortgage-backed
securities
|
112,463
|
4,989
|
4.4
|
102,460
|
4,160
|
4.0
|
107,146
|
4,137
|
3.8
|
|||||||||||||||||||
Tax
exempt securities (1)
|
57,948
|
3,060
|
5.2
|
60,005
|
2,944
|
4.8
|
53,552
|
2,514
|
4.6
|
|||||||||||||||||||
Taxable
securities
|
26,258
|
970
|
3.6
|
41,485
|
1,520
|
3.6
|
57,170
|
2,187
|
3.8
|
|||||||||||||||||||
Federal
funds sold
|
10,800
|
560
|
5.1
|
7,971
|
265
|
3.3
|
7,776
|
98
|
1.2
|
|||||||||||||||||||
Securities,
restricted
|
907
|
65
|
7.2
|
2,034
|
95
|
4.7
|
1,895
|
34
|
1.8
|
|||||||||||||||||||
Deposits
with banks
|
348
|
21
|
6.0
|
93
|
2
|
2.2
|
176
|
2
|
1.1
|
|||||||||||||||||||
Total
interest earning assets
|
516,118
|
33,010
|
6.4
|
513,998
|
29,710
|
5.8
|
512,773
|
27,822
|
5.4
|
|||||||||||||||||||
Non
interest earning assets:
|
||||||||||||||||||||||||||||
Cash
and due from banks
|
14,307
|
15,871
|
16,591
|
|||||||||||||||||||||||||
Other assets
|
18,963
|
18,186
|
18,671
|
|||||||||||||||||||||||||
Total
assets
|
$
|
549,388
|
$
|
548,055
|
$
|
548,035
|
||||||||||||||||||||||
Interest
bearing liabilities:
|
||||||||||||||||||||||||||||
Savings,
N.O.W. and
|
||||||||||||||||||||||||||||
money
market deposits
|
$
|
259,747
|
$
|
6,322
|
2.4
|
%
|
$
|
249,382
|
$
|
3,022
|
1.2
|
%
|
$
|
258,100
|
$
|
1,331
|
0.5
|
%
|
||||||||||
Certificates
of deposit of $100,000
|
||||||||||||||||||||||||||||
or
more
|
24,293
|
888
|
3.7
|
28,777
|
550
|
1.9
|
36,249
|
475
|
1.3
|
|||||||||||||||||||
Other time deposits
|
25,420
|
723
|
2.8
|
27,805
|
470
|
1.7
|
31,907
|
457
|
1.4
|
|||||||||||||||||||
Other
borrowed money
|
4,205
|
216
|
5.1
|
6,688
|
205
|
3.1
|
3,131
|
55
|
1.8
|
|||||||||||||||||||
Federal
funds purchased
|
3,666
|
188
|
5.1
|
1,999
|
72
|
3.6
|
2,136
|
33
|
1.5
|
|||||||||||||||||||
Total
interest bearing liabilities
|
317,331
|
8,337
|
2.6
|
314,651
|
4,319
|
1.4
|
331,523
|
2,351
|
0.7
|
|||||||||||||||||||
Non
interest bearing liabilities:
|
||||||||||||||||||||||||||||
Demand
deposits
|
183,157
|
183,260
|
167,765
|
|||||||||||||||||||||||||
Other
liabilities
|
2,699
|
2,386
|
3,277
|
|||||||||||||||||||||||||
Total
liabilities
|
503,187
|
500,297
|
502,565
|
|||||||||||||||||||||||||
Stockholders’
equity
|
46,201
|
47,758
|
45,470
|
|||||||||||||||||||||||||
Total
liabilities and stockholders’ equity
|
$
|
549,388
|
$
|
548,055
|
$
|
548,035
|
||||||||||||||||||||||
Net
interest income/interest
|
||||||||||||||||||||||||||||
rate
spread (2)
|
24,673
|
3.8
|
%
|
25,391
|
4.4
|
%
|
25,471
|
4.7
|
%
|
|||||||||||||||||||
Net
interest earning assets/net interest
|
||||||||||||||||||||||||||||
margin
(3)
|
$
|
198,787
|
4.8
|
%
|
$
|
199,347
|
4.9
|
%
|
$
|
181,250
|
5.0
|
%
|
||||||||||||||||
Ratio
of interest earning assets to
|
||||||||||||||||||||||||||||
interest
bearing liabilities
|
162.6
|
%
|
163.4
|
%
|
154.7
|
%
|
||||||||||||||||||||||
Less:
Tax equivalent adjustment
|
(980
|
)
|
(997
|
)
|
(899
|
)
|
||||||||||||||||||||||
Net
interest income
|
$
|
23,693
|
$
|
24,394
|
$
|
24,572
|
(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,
|
2006
Over 2005
|
2005
Over 2004
|
|||||||||||||||||
(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)
|
$
|
525
|
$
|
2,096
|
$
|
2,621
|
$
|
1,004
|
$
|
870
|
$
|
1,874
|
|||||||
Mortgage-backed
securities
|
426
|
403
|
829
|
(186
|
)
|
209
|
23
|
||||||||||||
Tax
exempt securities (1)
|
(101
|
)
|
217
|
116
|
309
|
121
|
430
|
||||||||||||
Taxable
securities
|
(562
|
)
|
12
|
(550
|
)
|
(584
|
)
|
(83
|
)
|
(667
|
)
|
||||||||
Federal
funds sold
|
114
|
181
|
295
|
3
|
164
|
167
|
|||||||||||||
Securities,
restricted
|
(67
|
)
|
37
|
(30
|
)
|
3
|
58
|
61
|
|||||||||||
Deposits
with banks
|
15
|
4
|
19
|
(2
|
)
|
2
|
-
|
||||||||||||
Total interest earning assets
|
350
|
2,950
|
3,300
|
547
|
1,341
|
1,888
|
|||||||||||||
Interest
expense on interest bearing liabilities:
|
|||||||||||||||||||
Savings,
N.O.W. and money market deposits
|
131
|
3,169
|
3,300
|
(47
|
)
|
1,738
|
1,691
|
||||||||||||
Certificates
of deposit of $100,000 or more
|
(97
|
)
|
435
|
338
|
(112
|
)
|
187
|
75
|
|||||||||||
Other
time deposits
|
(43
|
)
|
296
|
253
|
(63
|
)
|
76
|
13
|
|||||||||||
Other
borrowed money
|
(94
|
)
|
105
|
11
|
91
|
59
|
150
|
||||||||||||
Federal
funds purchased
|
77
|
39
|
116
|
(2
|
)
|
41
|
39
|
||||||||||||
Total
interest bearing liabilities
|
(26
|
)
|
4,044
|
4,018
|
(133
|
)
|
2,101
|
1,968
|
|||||||||||
Net
interest income
|
$
|
376
|
$
|
(1,094
|
)
|
$
|
(718
|
)
|
$
|
680
|
$
|
(760
|
)
|
$
|
(80
|
)
|
December
31,
|
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Allowance
for loan losses
|
||||||||||||||||
balance
at beginning of period
|
$
|
2,383
|
$
|
2,188
|
$
|
2,144
|
$
|
2,294
|
$
|
2,249
|
||||||
Charge-offs:
|
||||||||||||||||
Real
estate mortgage loans
|
-
|
7
|
3
|
38
|
4
|
|||||||||||
Real
estate construction loans
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Commercial,
financial and agricultural loans
|
33
|
153
|
302
|
163
|
212
|
|||||||||||
Installment/consumer
loans
|
50
|
129
|
65
|
148
|
22
|
|||||||||||
Total
|
83
|
289
|
370
|
349
|
238
|
|||||||||||
Recoveries:
|
||||||||||||||||
Real
estate mortgage loans
|
6
|
17
|
23
|
13
|
8
|
|||||||||||
Real
estate construction loans
|
-
|
100
|
-
|
-
|
-
|
|||||||||||
Commercial,
financial and agricultural loans
|
59
|
37
|
61
|
90
|
44
|
|||||||||||
Installment/consumer
loans
|
62
|
30
|
30
|
96
|
31
|
|||||||||||
Total
|
127
|
184
|
114
|
199
|
83
|
|||||||||||
Net
recoveries (charge-offs)
|
44
|
(105
|
)
|
(256
|
)
|
(150
|
)
|
(155
|
)
|
|||||||
Provision
for loan losses
|
||||||||||||||||
charged
to operations
|
85
|
300
|
300
|
-
|
220
|
|||||||||||
Balance
before reclass to other liabilities
|
2,512
|
2,383
|
2,188
|
2,144
|
2,314
|
|||||||||||
Net
change in other liabilities portion allocated to
|
||||||||||||||||
off
balance sheet items
|
-
|
-
|
-
|
-
|
(20
|
)
|
||||||||||
Balance
at end of period
|
$
|
2,512
|
$
|
2,383
|
$
|
2,188
|
$
|
2,144
|
$
|
2,294
|
||||||
Ratio
of net recoveries (charge-offs) during period
|
||||||||||||||||
to
average loans outstanding
|
0.01
|
%
|
(0.04
|
%)
|
(0.09
|
%)
|
(0.06
|
%)
|
(0.07
|
%)
|
Year
Ended December 31,
|
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||||||||||||||||
(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
|
$
|
303
|
12.1
|
%
|
$
|
273
|
10.5
|
%
|
$
|
315
|
11.6
|
%
|
$
|
272
|
12.4
|
%
|
$
|
591
|
15.6
|
%
|
|||||||||||
Real
estate construction loans
|
121
|
4.8
|
183
|
5.9
|
148
|
6.2
|
148
|
7.3
|
227
|
5.0
|
|||||||||||||||||||||
Real
estate mortgage loans
|
2,009
|
80.0
|
1,817
|
80.4
|
1,659
|
80.0
|
1,663
|
78.1
|
1,160
|
76.2
|
|||||||||||||||||||||
Installment/consumer
loans
|
79
|
3.1
|
110
|
3.2
|
66
|
2.2
|
61
|
2.2
|
316
|
3.2
|
|||||||||||||||||||||
Total
|
$
|
2,512
|
100.0
|
%
|
$
|
2,383
|
100.0
|
%
|
$
|
2,188
|
100.0
|
%
|
$
|
2,144
|
100.0
|
%
|
$
|
2,294
|
100.0
|
%
|
December
31,
|
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||
(In
thousands)
|
||||||||||||||||
Real
estate mortgage loans
|
$
|
265,824
|
$
|
242,928
|
$
|
236,812
|
$
|
213,256
|
$
|
189,226
|
||||||
Commercial,
financial, and agricultural loans
|
36,498
|
31,644
|
34,342
|
33,810
|
38,692
|
|||||||||||
Installment/consumer
loans
|
8,848
|
9,827
|
6,685
|
6,105
|
8,011
|
|||||||||||
Real
estate construction loans
|
14,767
|
17,960
|
18,452
|
20,037
|
12,520
|
|||||||||||
Total
loans
|
325,937
|
302,359
|
296,291
|
273,208
|
248,449
|
|||||||||||
Unamortized
cost/(Unearned income)
|
60
|
(95
|
)
|
(157
|
)
|
(20
|
)
|
(61
|
)
|
|||||||
325,997
|
302,264
|
296,134
|
273,188
|
248,388
|
||||||||||||
Allowance
for loan losses
|
(2,512
|
)
|
(2,383
|
)
|
(2,188
|
)
|
(2,144
|
)
|
(2,294
|
)
|
||||||
Net
loans
|
$
|
323,485
|
$
|
299,881
|
$
|
293,946
|
$
|
271,044
|
$
|
246,094
|
After
One
|
|||||||||||||
Within
One
|
But
Within
|
After
|
|||||||||||
Year
|
Five
Years
|
Five
Years
|
Total
|
||||||||||
(In
thousands)
|
|||||||||||||
Commercial
loans
|
$
|
13,015
|
$
|
17,007
|
$
|
6,476
|
$
|
36,498
|
|||||
Construction
loans (1)
|
35
|
5,036
|
9,696
|
14,767
|
|||||||||
Total
|
$
|
13,050
|
$
|
22,043
|
$
|
16,172
|
$
|
51,265
|
|||||
Rate
provisions:
|
|||||||||||||
Amounts
with fixed interest rates
|
$
|
487
|
$
|
8,663
|
$
|
3,062
|
$
|
12,212
|
|||||
Amounts
with variable interest rates
|
12,563
|
13,380
|
13,110
|
39,053
|
|||||||||
Total
|
$
|
13,050
|
$
|
22,043
|
$
|
16,172
|
$
|
51,265
|
(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,
|
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||
(In
thousands)
|
||||||||||||||||
Loans
90 days or more past due and still accruing
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Nonaccrual
loans
|
305
|
658
|
1,695
|
152
|
200
|
|||||||||||
Restructured
loans
|
118
|
-
|
-
|
-
|
-
|
|||||||||||
Other
real estate owned, net
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Total
|
$
|
423
|
$
|
658
|
$
|
1,695
|
$
|
152
|
$
|
200
|
||||||
Year
Ended December 31,
|
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||
(In
thousands)
|
||||||||||||||||
Gross
interest income that has not been paid or recorded
|
||||||||||||||||
during
the year under original terms:
|
||||||||||||||||
Nonaccrual
loans
|
$
|
9
|
$
|
38
|
$
|
16
|
$
|
9
|
$
|
13
|
||||||
Restructured
loans
|
$
|
1
|
-
|
-
|
-
|
-
|
||||||||||
Gross
interest income recorded during the year:
|
||||||||||||||||
Nonaccrual
loans
|
$
|
12
|
$
|
17
|
$
|
12
|
$
|
6
|
$
|
4
|
||||||
Restructured
loans
|
$
|
9
|
-
|
-
|
-
|
-
|
||||||||||
Commitments
for additional funds
|
-
|
-
|
-
|
-
|
-
|
December
31,
|
2006
|
2005
|
2004
|
||||||||||||||||||||||||||||||||||
(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
|
$
|
34,123
|
$
|
-
|
$
|
(346
|
)
|
$
|
33,777
|
$
|
38,443
|
$
|
7
|
$
|
(788
|
)
|
$
|
37,662
|
$
|
53,736
|
$
|
519
|
$
|
(216
|
)
|
$
|
54,039
|
||||||||||
State
and municipal obligations
|
49,008
|
316
|
(481
|
)
|
48,843
|
51,392
|
387
|
(559
|
)
|
51,220
|
40,027
|
1,098
|
(81
|
)
|
41,044
|
||||||||||||||||||||||
Mortgage-backed
securities
|
122,009
|
364
|
(2,403
|
)
|
119,970
|
96,938
|
27
|
(3,046
|
)
|
93,919
|
107,609
|
483
|
(1,133
|
)
|
106,959
|
||||||||||||||||||||||
Total
available for sale
|
205,140
|
680
|
(3,230
|
)
|
202,590
|
186,773
|
421
|
(4,393
|
)
|
182,801
|
201,372
|
2,100
|
(1,430
|
)
|
202,042
|
||||||||||||||||||||||
Held
to maturity:
|
|||||||||||||||||||||||||||||||||||||
State
and municipal obligations
|
9,444
|
-
|
(2
|
)
|
9,442
|
10,012
|
-
|
(23
|
)
|
9,989
|
21,213
|
-
|
(82
|
)
|
21,131
|
||||||||||||||||||||||
Total
held to maturity
|
9,444
|
-
|
(2
|
)
|
9,442
|
10,012
|
-
|
(23
|
)
|
9,989
|
21,213
|
-
|
(82
|
)
|
21,131
|
||||||||||||||||||||||
Total
debt and equity
securities
|
$
|
214,584
|
$
|
680
|
$
|
(3,232
|
)
|
$
|
212,032
|
$
|
196,785
|
$
|
421
|
$
|
(4,416
|
)
|
$
|
192,790
|
$
|
222,585
|
$
|
2,100
|
$
|
(1,512
|
)
|
$
|
223,173
|
Total
Amounts
Committed
|
Less
than
One
Year
|
One
to
Three
Years
|
Four
to Five Years
|
Over
Five
Years
|
||||||||||||
(In
thousands)
|
||||||||||||||||
Operating
leases
|
$
|
3,980
|
$
|
693
|
$
|
1,246
|
$
|
742
|
$
|
1,299
|
||||||
Purchase
obligation
|
250
|
250
|
-
|
-
|
-
|
|||||||||||
Time
deposits
|
60,818
|
56,137
|
4,013
|
668
|
-
|
|||||||||||
Total
contractual obligations outstanding
|
$
|
65,048
|
$
|
57,080
|
$
|
5,259
|
$
|
1,410
|
$
|
1,299
|
2006
|
|||||||
Change
in Interest
|
Potential
Change
|
||||||
Rates
in Basis Points
|
in
Net
|
||||||
(RATE
SHOCK)
|
Interest
Income
|
||||||
(Dollars
in thousands)
|
|||||||
$
Change
|
%
Change
|
||||||
200
|
$
|
(1,501
|
)
|
(5.87
|
)%
|
||
Static
|
-
|
-
|
|||||
(200)
|
$
|
(27
|
)
|
(0.11
|
)%
|
December
31,
|
December
31,
|
||||||
2006
|
2005
|
||||||
ASSETS
|
|||||||
Cash
and due from banks
|
$
|
13,231
|
$
|
15,649
|
|||
Interest
earning deposits with banks
|
32
|
26
|
|||||
Total
cash and cash equivalents
|
13,263
|
15,675
|
|||||
Securities
available for sale, at fair value
|
202,590
|
182,801
|
|||||
Securities
held to maturity (fair value of $9,442 and $9,989,
respectively)
|
9,444
|
10,012
|
|||||
Total
securities, net
|
212,034
|
192,813
|
|||||
Securities,
restricted
|
878
|
1,377
|
|||||
Loans
|
325,997
|
302,264
|
|||||
Less:
|
|||||||
Allowance
for loan losses
|
(2,512
|
)
|
(2,383
|
)
|
|||
Loans,
net
|
323,485
|
299,881
|
|||||
Banking
premises and equipment, net
|
18,005
|
15,640
|
|||||
Accrued
interest receivable
|
2,692
|
2,624
|
|||||
Other
assets
|
3,287
|
5,434
|
|||||
Total
Assets
|
$
|
573,644
|
$
|
533,444
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Demand
deposits
|
$
|
173,628
|
$
|
190,426
|
|||
Savings,
N.O.W. and money market deposits
|
269,966
|
233,728
|
|||||
Certificates
of deposit of $100,000 or more
|
30,518
|
19,021
|
|||||
Other
time deposits
|
30,300
|
24,850
|
|||||
Total
deposits
|
504,412
|
468,025
|
|||||
Overnight
borrowings
|
18,600
|
14,500
|
|||||
Accrued
interest payable
|
855
|
328
|
|||||
Other
liabilities and accrued expenses
|
4,238
|
3,940
|
|||||
Total
Liabilities
|
528,105
|
486,793
|
|||||
Stockholders’
equity:
|
|||||||
Common
stock, par value $0.01 per share:
|
|||||||
Authorized:
20,000,000 shares; 6,386,306 issued; 6,078,565 and 6,206,539
shares,
|
|||||||
outstanding
at December 31, 2006 and 2005, respectively
|
64
|
64
|
|||||
Surplus
|
21,565
|
21,631
|
|||||
Undivided profits
|
34,347
|
31,813
|
|||||
Less:
Treasury stock at cost, 307,741 and 179,767 shares at December 31,
2006
and 2005, respectively
|
(8,176
|
)
|
(4,285
|
)
|
|||
Unearned
stock awards
|
-
|
(108
|
)
|
||||
47,800
|
49,115
|
||||||
Accumulated
other comprehensive loss:
|
|||||||
Net
unrealized loss on securities, net of taxes of $1,025 and $1,596
at
December 31, 2006 and 2005,
|
|||||||
respectively
|
(1,525
|
)
|
(2,376
|
)
|
|||
Net
minimum pension liability, net of taxes of $59 at December 31,
2005
|
-
|
(88
|
)
|
||||
Transition
due to the adoption of SFAS 158, net of taxes of $490
|
(736
|
)
|
-
|
||||
Total
Stockholders’ Equity
|
45,539
|
46,651
|
|||||
Total
Liabilities and Stockholders’ Equity
|
$
|
573,644
|
$
|
533,444
|
Year
Ended December 31,
|
2006
|
2005
|
2004
|
|||||||
Interest
income:
|
||||||||||
Loans
(including fee income)
|
$
|
23,345
|
$
|
20,724
|
$
|
18,850
|
||||
Mortgage-backed
securities
|
4,989
|
4,160
|
4,137
|
|||||||
Tax
exempt interest income:
|
||||||||||
State and municipal obligations
|
2,080
|
1,947
|
1,615
|
|||||||
Taxable interest income:
|
||||||||||
U.S. Treasury and government agency securities
|
970
|
1,520
|
2,187
|
|||||||
Federal
funds sold
|
560
|
265
|
98
|
|||||||
Other
securities
|
65
|
95
|
34
|
|||||||
Deposits
with banks
|
21
|
2
|
2
|
|||||||
Total
interest income
|
32,030
|
28,713
|
26,923
|
|||||||
Interest
expense:
|
||||||||||
Savings,
N.O.W. and money market deposits
|
6,322
|
3,022
|
1,331
|
|||||||
Certificates
of deposit of $100,000 or more
|
888
|
550
|
475
|
|||||||
Other
time deposits
|
723
|
470
|
457
|
|||||||
Other
borrowed money
|
216
|
205
|
55
|
|||||||
Federal
funds purchased
|
188
|
72
|
33
|
|||||||
Total
interest expense
|
8,337
|
4,319
|
2,351
|
|||||||
Net
interest income
|
23,693
|
24,394
|
24,572
|
|||||||
Provision
for loan losses
|
85
|
300
|
300
|
|||||||
Net
interest income after provision for loan losses
|
23,608
|
24,094
|
24,272
|
|||||||
Other
income:
|
||||||||||
Service
charges on deposit accounts
|
2,069
|
2,104
|
2,328
|
|||||||
Fees
for other customer services
|
1,422
|
1,484
|
1,341
|
|||||||
Title
fee income
|
1,042
|
1,293
|
866
|
|||||||
Net
securities (losses) gains
|
(289
|
)
|
116
|
734
|
||||||
Other
operating income
|
169
|
108
|
171
|
|||||||
Total
other income
|
4,413
|
5,105
|
5,440
|
|||||||
Other
expenses:
|
||||||||||
Salaries
and employee benefits
|
9,187
|
8,347
|
7,456
|
|||||||
Net
occupancy expense
|
1,414
|
1,234
|
1,283
|
|||||||
Furniture
and fixture expense
|
742
|
719
|
785
|
|||||||
Data/Item
processing
|
445
|
397
|
374
|
|||||||
Advertising
|
414
|
401
|
356
|
|||||||
Other
operating expenses
|
3,800
|
3,549
|
3,310
|
|||||||
Total
other expenses
|
16,002
|
14,647
|
13,564
|
|||||||
Income
before provision for income taxes
|
12,019
|
14,552
|
16,148
|
|||||||
Provision
for income taxes
|
3,851
|
4,929
|
5,771
|
|||||||
Net
income
|
$
|
8,168
|
$
|
9,623
|
$
|
10,377
|
||||
Basic
earnings per share
|
$
|
1.33
|
$
|
1.54
|
$
|
1.66
|
||||
Diluted
earnings per share
|
$
|
1.33
|
$
|
1.53
|
$
|
1.64
|
||||
Comprehensive
Income
|
$
|
9,019
|
$
|
6,877
|
$
|
9,094
|
Accumulated
|
||||||||||||||||||||||||||||
|
Other
|
|||||||||||||||||||||||||||
Common
Stock
|
Unearned
|
Comprehensive
|
||||||||||||||||||||||||||
Shares
|
Comprehensive
|
Undivided
|
Treasury
|
Stock
|
Income
|
|||||||||||||||||||||||
Outstanding
|
Amount
|
Surplus
|
Income
(1)
|
Profits
|
Stock
|
Awards
|
(Loss)
|
Total
|
||||||||||||||||||||
Balance
at December 31, 2003
|
4,155,595
|
$
|
43
|
$
|
21,194
|
$
|
21,982
|
$
|
(1,909
|
)
|
$
|
(81
|
)
|
$
|
1,565
|
$
|
42,794
|
|||||||||||
Net
income
|
10,377
|
10,377
|
10,377
|
|||||||||||||||||||||||||
Stock
awards vested
|
5,040
|
30
|
66
|
73
|
169
|
|||||||||||||||||||||||
Stock
awards granted
|
58
|
55
|
(113
|
)
|
-
|
|||||||||||||||||||||||
Exercise
of stock options, net of tax benefit
|
24,417
|
201
|
69
|
270
|
||||||||||||||||||||||||
Treasury
stock purchases
|
(20,000
|
)
|
(611
|
)
|
(611
|
)
|
||||||||||||||||||||||
Cash
dividends declared, $0.72 per share
|
(4,503
|
)
|
(4,503
|
)
|
||||||||||||||||||||||||
Effect
of three-for-two stock split (in the form of a
|
||||||||||||||||||||||||||||
Stock
dividend)
|
2,089,437
|
21
|
(21
|
)
|
-
|
|||||||||||||||||||||||
Other
comprehensive income, net of tax
|
||||||||||||||||||||||||||||
Unrealized
net losses in securities available for sale
|
(1,333
|
)
|
(1,333
|
)
|
(1,333
|
)
|
||||||||||||||||||||||
Minimum
pension liability adjustment
|
50
|
50
|
50
|
|||||||||||||||||||||||||
Comprehensive
Income
|
9,094
|
|||||||||||||||||||||||||||
Balance
at December 31, 2004
|
6,254,489
|
64
|
21,462
|
27,856
|
(2,330
|
)
|
(121
|
)
|
282
|
47,213
|
||||||||||||||||||
Net
income
|
9,623
|
9,623
|
9,623
|
|||||||||||||||||||||||||
Stock
awards vested
|
6,155
|
36
|
28
|
65
|
129
|
|||||||||||||||||||||||
Stock
awards granted
|
52
|
38
|
(90
|
)
|
-
|
|||||||||||||||||||||||
Stock
awards forfeited
|
(17
|
)
|
(21
|
)
|
38
|
-
|
||||||||||||||||||||||
Exercise
of stock options, net of tax benefit
|
21,821
|
98
|
134
|
232
|
||||||||||||||||||||||||
Treasury
stock purchases
|
(75,926
|
)
|
(2,134
|
)
|
(2,134
|
)
|
||||||||||||||||||||||
Cash
dividends declared, $0.91 per share
|
(5,666
|
)
|
(5,666
|
)
|
||||||||||||||||||||||||
Other
comprehensive income, net of 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
|
6,206,539
|
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 vested
|
3,491
|
51
|
51
|
|||||||||||||||||||||||||
Stock
awards granted
|
15,987
|
(189
|
)
|
189
|
-
|
|||||||||||||||||||||||
Stock
awards forfeited
|
2
|
(2
|
)
|
-
|
||||||||||||||||||||||||
Exercise
of stock options, net of tax benefit
|
9,882
|
110
|
(39
|
)
|
71
|
|||||||||||||||||||||||
Stock
option compensation expense
|
68
|
68
|
||||||||||||||||||||||||||
Treasury
stock purchases
|
(157,334
|
)
|
(4,039
|
)
|
(4,039
|
)
|
||||||||||||||||||||||
Cash
dividends declared, $0.92 per share
|
(5,634
|
)
|
(5,634
|
)
|
||||||||||||||||||||||||
Other
comprehensive income, net of 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 tax
|
(648
|
)
|
(648
|
)
|
||||||||||||||||||||||||
Comprehensive
Income
|
9,019
|
|||||||||||||||||||||||||||
Balance
at December 31, 2006
|
6,078,565
|
$
|
64
|
$
|
21,565
|
$
|
34,347
|
$
|
(8,176
|
)
|
-
|
$
|
(2,261
|
)
|
$
|
45,539
|
||||||||||||
(1)
Disclosure of reclassification amount:
|
||||||||||||||||||||||||||||
December
31,
|
2006
|
2005
|
2004
|
|||||||||||||||||||||||||
Comprehensive
Income Items:
|
||||||||||||||||||||||||||||
Unrealized
gain (loss) arising during the period, net of tax
|
||||||||||||||||||||||||||||
of
$456, ($1,820), and ($591) in 2006, 2005 and 2004
|
$
|
678
|
$
|
(2,708
|
)
|
$
|
(891
|
)
|
||||||||||||||||||||
Less:
reclassification adjustment, net of taxes
|
||||||||||||||||||||||||||||
of
$163, ($46), and ($293) in 2006, 2005 and 2004
|
||||||||||||||||||||||||||||
for
(losses) gains included in income
|
(173
|
)
|
71
|
442
|
||||||||||||||||||||||||
$
|
851
|
$
|
(2,779
|
)
|
$
|
(1,333
|
)
|
Year
Ended December 31,
|
2006
|
2005
|
2004
|
|||||||
Operating
activities:
|
||||||||||
Net
Income
|
$
|
8,168
|
$
|
9,623
|
$
|
10,377
|
||||
Adjustments
to reconcile net income to net cash
|
||||||||||
provided
by operating activities:
|
||||||||||
Provision
for loan losses
|
85
|
300
|
300
|
|||||||
Depreciation
and amortization
|
886
|
847
|
950
|
|||||||
Amortization
and accretion, net
|
272
|
786
|
1,261
|
|||||||
Share
based compensation expense
|
119
|
65
|
73
|
|||||||
SERP
expense
|
268
|
153
|
149
|
|||||||
Net
securities losses (gains)
|
289
|
(116
|
)
|
(734
|
)
|
|||||
Increase
in accrued interest receivable
|
(68
|
)
|
(155
|
)
|
(110
|
)
|
||||
(Provision)
benefit for deferred income taxes
|
(400
|
)
|
21
|
(179
|
)
|
|||||
Decrease
(increase) in other assets
|
1,975
|
(986
|
)
|
1,118
|
||||||
(Decrease)
increase in accrued and other liabilities
|
(35
|
)
|
405
|
436
|
||||||
Net
cash provided by operating activities
|
11,559
|
10,943
|
13,641
|
|||||||
Investing
activities:
|
||||||||||
Purchases
of securities available for sale
|
(62,500
|
)
|
(32,273
|
)
|
(95,820
|
)
|
||||
Purchases of securities, restricted
|
(10,343
|
)
|
(190
|
)
|
(337
|
)
|
||||
Purchases
of securities held to maturity
|
(9,444
|
)
|
(13,262
|
)
|
(21,213
|
)
|
||||
Proceeds
from sales of securities available for sale
|
19,537
|
21,173
|
56,005
|
|||||||
Proceeds from redemption of securities, restricted
|
10,842
|
792
|
-
|
|||||||
Proceeds
from maturing securities available for sale
|
5,675
|
2,995
|
4,750
|
|||||||
Proceeds
from maturing securities held to maturity
|
10,012
|
24,463
|
14,396
|
|||||||
Proceeds
from principal payments on mortgage-backed securities
|
18,361
|
22,032
|
23,980
|
|||||||
Net
increase in loans
|
(23,689
|
)
|
(6,235
|
)
|
(23,202
|
)
|
||||
Purchases
of banking premises and equipment, net of disposals
|
(3,251
|
)
|
(2,670
|
)
|
(3,144
|
)
|
||||
Net
cash (used) provided by investing activities
|
(44,800
|
)
|
16,825
|
(44,585
|
)
|
|||||
Financing
activities:
|
||||||||||
Net
increase (decrease) in deposits
|
36,387
|
(1,286
|
)
|
12,165
|
||||||
Increase
(decrease) in other borrowings
|
4,100
|
(12,200
|
)
|
20,800
|
||||||
Purchase
of Treasury stock
|
(4,039
|
)
|
(2,134
|
)
|
(611
|
)
|
||||
Net
proceeds from exercise of stock options
|
||||||||||
issued
pursuant to equity incentive plan
|
49
|
216
|
203
|
|||||||
Cash
dividends paid
|
(5,668
|
)
|
(5,551
|
)
|
(5,790
|
)
|
||||
Net
cash provided (used) by financing activities
|
30,829
|
(20,955
|
)
|
26,767
|
||||||
(Decrease)
increase in cash and cash equivalents
|
(2,412
|
)
|
6,813
|
(4,177
|
)
|
|||||
Cash
and cash equivalents beginning of year
|
15,675
|
8,862
|
13,039
|
|||||||
Cash
and cash equivalents end of year
|
$
|
13,263
|
$
|
15,675
|
$
|
8,862
|
||||
Supplemental
Information-Cash Flows:
|
||||||||||
Cash
paid for:
|
||||||||||
Interest
|
$
|
7,810
|
$
|
4,264
|
$
|
2,344
|
||||
Income
taxes
|
$
|
3,323
|
$
|
5,023
|
$
|
5,336
|
||||
Noncash
investing and financing activities:
|
||||||||||
Dividends
declared and unpaid
|
$
|
1,394
|
$
|
1,428
|
$
|
1,313
|
Common
Stock
|
||||
Shares Issued and | ||||
Shares
Issued
|
Outstanding
|
Treasury
Stock
|
||
Balance
at December 31, 2004
|
6,386,306
|
6,254,489
|
131,817
|
|
Stock
awards vested
|
6,155
|
(6,155)
|
||
Exercise
of stock options
|
21,821
|
(21,821)
|
||
Purchase
of Treasury stock
|
(75,926)
|
75,926
|
||
Balance
at December 31, 2005
|
6,386,306
|
6,206,539
|
179,767
|
|
Stock
awards vested
|
3,491
|
(3,491)
|
||
Stock
awards granted
|
15,987
|
(15,987)
|
||
Exercise
of stock options
|
9,882
|
(9,882)
|
||
Purchase
of Treasury stock
|
(157,334)
|
157,334
|
||
Balance
at December 31, 2006
|
6,386,306
|
6,078,565
|
307,741
|
For
the Year Ended
|
2005
|
2004
|
||||||||
(In
thousands, expect per share)
|
||||||||||
Net
Income:
|
As
Reported:
|
$
|
9,623
|
$
|
10,377
|
|||||
|
Pro
Forma:
|
9,606
|
10,332
|
|||||||
Diluted
EPS:
|
As
Reported:
|
$
|
1.53
|
$
|
1.64
|
|||||
|
Pro Forma: |
1.53
|
1.64
|
|||||||
Basic
EPS:
|
As
Reported:
|
$
|
1.54
|
$
|
1.66
|
|||||
|
Pro Forma: |
1.54
|
1.65
|
Before
Application
|
After
Application
|
|||||||||
of
SFAS No. 158
|
Adjustments
|
of
SFAS No. 158
|
||||||||
(In
thousands)
|
||||||||||
Liability
for pension and SERP benefits
|
$
|
(169
|
)
|
$
|
1,226
|
$
|
1,057
|
|||
Deferred
income taxes
|
(1,311
|
)
|
(490
|
)
|
(1,801
|
)
|
||||
Total
Liabilities
|
527,369
|
736
|
528,105
|
|||||||
Accumulated
other comprehensive income/(loss)
|
(1,613
|
)
|
(648
|
)
|
(2,261
|
)
|
||||
Total
stockholders’ equity
|
46,187
|
(648
|
)
|
45,539
|
December
31,
|
2006
|
2005
|
|||||||||||||||||||||||
(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
|
$
|
34,123
|
$
|
-
|
$
|
(346
|
)
|
$
|
33,777
|
$
|
38,443
|
$
|
7
|
$
|
(788
|
)
|
$
|
37,662
|
|||||||
State and municipal obligations
|
49,008
|
316
|
(481
|
)
|
48,843
|
51,392
|
387
|
(559
|
)
|
51,220
|
|||||||||||||||
Mortgage-backed securities
|
122,009
|
364
|
(2,403
|
)
|
119,970
|
96,938
|
27
|
(3,046
|
)
|
93,919
|
|||||||||||||||
Total
available for sale
|
205,140
|
680
|
(3,230
|
)
|
202,590
|
186,773
|
421
|
(4,393
|
)
|
182,801
|
|||||||||||||||
Held
to maturity:
|
|||||||||||||||||||||||||
State
and municipal obligations
|
9,444
|
-
|
(2
|
)
|
9,442
|
10,012
|
-
|
(23
|
)
|
9,989
|
|||||||||||||||
Total
held to maturity
|
9,444
|
-
|
(2
|
)
|
9,442
|
10,012
|
-
|
(23
|
)
|
9,989
|
|||||||||||||||
Total
debt and equity securities
|
$
|
214,584
|
$
|
680
|
$
|
(3,232
|
)
|
$
|
212,032
|
$
|
196,785
|
$
|
421
|
$
|
(4,416
|
)
|
$
|
192,790
|
December
31,
|
2006
|
2005
|
|||||||||||||||||||||||
(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
|
$
|
13,684
|
$
|
13
|
$
|
20,093
|
$
|
333
|
$
|
14,132
|
$
|
243
|
$
|
18,048
|
$
|
546
|
|||||||||
State
and municipal obligations
|
9,343
|
13
|
25,228
|
470
|
31,635
|
266
|
9,214
|
316
|
|||||||||||||||||
Mortgage-backed
securities
|
1,252
|
5
|
75,135
|
2,398
|
42,354
|
860
|
50,736
|
2,185
|
|||||||||||||||||
Total temporarily impaired securities
|
$
|
24,279
|
$
|
31
|
$
|
120,456
|
$
|
3,201
|
$
|
88,121
|
$
|
1,369
|
$
|
77,998
|
$
|
3,047
|
December
31, 2006
|
|||||||||||||||||||||||||||||||||||||||||||||||||
(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
|
$
|
21,566
|
$
|
21,695
|
6.76
|
%
|
$
|
12,211
|
$
|
12,428
|
5.51
|
%
|
$
|
-
|
$
|
-
|
-
|
%
|
$
|
-
|
$
|
-
|
-
|
%
|
$
|
33,777
|
$
34,123
|
||||||||||||||||||||||
Mortgage-backed
|
|||||||||||||||||||||||||||||||||||||||||||||||||
securities
|
-
|
-
|
-
|
12,338
|
12,739
|
5.86
|
10,843
|
11,138
|
6.15
|
96,789
|
98,132
|
7.02
|
119,970
|
122,009
|
|||||||||||||||||||||||||||||||||||
State
and municipal
|
|||||||||||||||||||||||||||||||||||||||||||||||||
obligations
|
6,931
|
6,884
|
7.18
|
19,926
|
20,294
|
4.22
|
14,675
|
14,535
|
5.52
|
7,311
|
7,295
|
5.60
|
48,843
|
49,008
|
|||||||||||||||||||||||||||||||||||
Total
available for sale
|
28,497
|
28,579
|
6.86
|
44,475
|
45,461
|
5.03
|
25,518
|
25,673
|
5.79
|
104,100
|
105,427
|
6.92
|
202,590
|
205,140
|
|||||||||||||||||||||||||||||||||||
Held
to maturity:
|
|||||||||||||||||||||||||||||||||||||||||||||||||
State
and municipal
|
|||||||||||||||||||||||||||||||||||||||||||||||||
obligations
|
9,442
|
9,444
|
5.46
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
9,442
|
9,444
|
|||||||||||||||||||||||||||||||||||
Total
held to maturity
|
9,442
|
9,444
|
5.46
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
9,442
|
9,444
|
|||||||||||||||||||||||||||||||||||
Total
debt and equity
|
|||||||||||||||||||||||||||||||||||||||||||||||||
securities
|
$
|
37,939
|
$
|
38,023
|
6.51
|
%
|
$
|
44,475
|
$
|
45,461
|
5.03
|
%
|
$
|
25,518
|
$
|
25,673
|
5.79
|
%
|
$
|
104,100
|
$
|
105,427
|
6.92
|
%
|
$
|
212,032
|
$214,584
|
December
31,
|
2006
|
2005
|
|||||
(In
thousands)
|
|||||||
Real
estate mortgage loans
|
$
|
265,824
|
$
|
242,928
|
|||
Commercial,
financial, and agricultural loans
|
36,498
|
31,644
|
|||||
Installment/consumer
loans
|
8,848
|
9,827
|
|||||
Real
estate construction loans
|
14,767
|
17,960
|
|||||
Total
loans
|
325,937
|
302,359
|
|||||
Net
deferred loan cost and fees
|
60
|
(95
|
)
|
||||
325,997
|
302,264
|
||||||
Allowance
for loan losses
|
(2,512
|
)
|
(2,383
|
)
|
|||
Net
loans
|
$
|
323,485
|
$
|
299,881
|
December
31,
|
2006
|
2005
|
2004
|
|||||||
(In
thousands)
|
||||||||||
Allowance
for loan losses
|
||||||||||
balance at beginning of period
|
$
|
2,383
|
$
|
2,188
|
$
|
2,144
|
||||
Charge-offs:
|
||||||||||
Real
estate mortgage loans
|
-
|
7
|
3
|
|||||||
Commercial,
financial and agricultural loans
|
33
|
153
|
302
|
|||||||
Installment/consumer
loans
|
50
|
129
|
65
|
|||||||
Total
|
83
|
289
|
370
|
|||||||
Recoveries:
|
||||||||||
Real
estate mortgage loans
|
7
|
17
|
23
|
|||||||
Real
estate construction loans
|
-
|
100
|
-
|
|||||||
Commercial,
financial and agricultural loans
|
59
|
37
|
61
|
|||||||
Installment/consumer
loans
|
61
|
30
|
30
|
|||||||
Total
|
127
|
184
|
114
|
|||||||
Net
recoveries (charge-offs)
|
44
|
(105
|
)
|
(256
|
)
|
|||||
Provision
for loan losses
|
||||||||||
charged
to operations
|
85
|
300
|
300
|
|||||||
Balance
at end of period
|
$
|
2,512
|
$
|
2,383
|
$
|
2,188
|
Balance
Outstanding
|
||||
(In
thousands)
|
||||
Balance
at December 31, 2005
|
$
|
1,788
|
||
New
loans
|
206
|
|||
Effective
change in related parties
|
-
|
|||
Advances
|
8
|
|||
Repayments
|
(823
|
)
|
||
Balance
at December 31, 2006
|
$
|
1,179
|
December
31,
|
2006
|
2005
|
|||||
(In
thousands)
|
|||||||
Land
|
$
|
6,142
|
$
|
6,142
|
|||
Construction
in progress
|
3,242
|
426
|
|||||
Building
and improvements
|
8,741
|
8,632
|
|||||
Furniture
and fixtures
|
7,108
|
6,797
|
|||||
Leasehold improvements
|
1,238
|
1,234
|
|||||
26,471
|
23,231
|
||||||
Less:
accumulated
|
|||||||
depreciation and amortization
|
(8,466
|
)
|
(7,591
|
)
|
|||
$
|
18,005
|
$
|
15,640
|
Less
than $100,000
|
$100,000
or Greater
|
Total
|
||||||||
(In
thousands)
|
||||||||||
3
months or less
|
$
|
13,633
|
$
|
22,453
|
$
|
36,086
|
||||
Over
3 thru 6 months
|
9,149
|
4,640
|
13,789
|
|||||||
Over
6 thru 12 months
|
3,778
|
2,484
|
6,262
|
|||||||
Over
12 months thru 24 months
|
2,739
|
630
|
3,369
|
|||||||
Over
24 months thru 36 months
|
534
|
110
|
644
|
|||||||
Over
36 months thru 48 months
|
467
|
201
|
668
|
|||||||
Over
48 months thru 60 months
|
-
|
-
|
-
|
|||||||
Over
60 months
|
-
|
-
|
-
|
|||||||
Total
|
$
|
30,300
|
$
|
30,518
|
$
|
60,818
|
Year
Ended December 31,
|
2006
|
2005
|
2004
|
|||||||
(In
thousands)
|
||||||||||
Current:
|
||||||||||
Federal
|
$
|
2,967
|
$
|
4,087
|
$
|
4,453
|
||||
State
|
484
|
863
|
1,139
|
|||||||
3,451
|
4,950
|
5,592
|
||||||||
Deferred:
|
||||||||||
Federal
|
310
|
(22
|
)
|
152
|
||||||
State
|
90
|
1
|
27
|
|||||||
400
|
(21
|
)
|
179
|
|||||||
Total
|
$
|
3,851
|
$
|
4,929
|
$
|
5,771
|
Year
Ended December 31,
|
2006
|
2005
|
2004
|
||||||||||||||||
(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
|
$
|
4,087
|
34
|
%
|
$
|
4,984
|
34
|
%
|
$
|
5,531
|
34
|
%
|
|||||||
Tax
exempt interest
|
(706
|
)
|
(6
|
)
|
(665
|
)
|
(5
|
)
|
(552
|
)
|
(4
|
)
|
|||||||
State
taxes, net of Federal income tax benefit
|
379
|
3
|
568
|
4
|
767
|
5
|
|||||||||||||
Other
|
91
|
1
|
42
|
1
|
25
|
1
|
|||||||||||||
Provision
for income taxes
|
$
|
3,851
|
32
|
%
|
$
|
4,929
|
34
|
%
|
$
|
5,771
|
36
|
%
|
December
31,
|
2006
|
2005
|
|||||
(In
thousands)
|
|||||||
Deferred
tax assets:
|
|||||||
Allowance
for loan losses
|
$
|
1,102
|
$
|
1,026
|
|||
Depreciation
|
-
|
15
|
|||||
Total
|
1,102
|
1,041
|
|||||
Deferred
tax liabilities:
|
|||||||
Pension
expense
|
(265
|
)
|
(211
|
)
|
|||
Other
|
(219
|
)
|
(203
|
)
|
|||
Depreciation
|
(332
|
)
|
-
|
||||
Total
|
(816
|
)
|
(414
|
)
|
|||
Total
before other comprehensive income
|
286
|
627
|
|||||
SFAS
115 deferred tax asset
|
1,025
|
1,596
|
|||||
Minimum
SERP liability adjustment
|
-
|
59
|
|||||
Transition
to SFAS 158
|
490
|
-
|
|||||
Net
deferred tax asset
|
$
|
1,801
|
$
|
2,282
|
Pension
Benefits
|
SERP
Benefits
|
||||||||||||
At
December 31,
|
2006
|
2005
|
2006
|
2005
|
|||||||||
(In
thousands)
|
|||||||||||||
Change
in benefit obligation
|
|
||||||||||||
Benefit
obligation at beginning of year
|
$
|
4,631
|
$
|
3,776
|
$
|
1,181
|
$
|
1,453
|
|||||
Service
cost
|
424
|
317
|
65
|
87
|
|||||||||
Expenses
|
(43
|
)
|
(40
|
)
|
-
|
-
|
|||||||
Interest
cost
|
252
|
223
|
55
|
71
|
|||||||||
Benefits
paid
|
(152
|
)
|
(130
|
)
|
(105
|
)
|
-
|
||||||
Assumption
changes and other
|
(169
|
)
|
485
|
(77
|
)
|
(430
|
)
|
||||||
Benefit
obligation at end of year
|
$
|
4,943
|
$
|
4,631
|
$
|
1,119
|
$
|
1,181
|
|||||
Change
in plan assets, at fair value
|
|||||||||||||
Plan
assets at beginning of year
|
$
|
4,034
|
$
|
3,759
|
-
|
-
|
|||||||
Actual
return on plan assets
|
500
|
445
|
-
|
-
|
|||||||||
Employer
contribution
|
666
|
-
|
-
|
-
|
|||||||||
Benefit
paid
|
(152
|
)
|
(130
|
)
|
-
|
-
|
|||||||
Expenses
|
(43
|
)
|
(40
|
)
|
-
|
-
|
|||||||
Plan
assets at end of year
|
$
|
5,005
|
$
|
4,034
|
-
|
-
|
|||||||
Funded
status (plan assets less benefit obligations)
|
$
|
916
|
$
|
(596
|
)
|
$
|
(852
|
)
|
$
|
(1,181
|
)
|
||
Unrecognized
net actuarial loss/(gain)
|
-
|
1,107
|
-
|
78
|
|||||||||
Unrecognized
prior service cost
|
-
|
137
|
-
|
-
|
|||||||||
Unrecognized
transition (asset) liability
|
-
|
(3
|
)
|
-
|
399
|
||||||||
Minimum
additional pension liability
|
-
|
-
|
-
|
(147
|
)
|
||||||||
Prepaid
benefit (accrued) cost
|
$
|
916
|
$
|
645
|
$
|
(852
|
)
|
$
|
(851
|
)
|
Pension
Benefits
|
SERP
Benefits
|
||||||
At
December 31,
|
2005
|
2005
|
|||||
(In
thousands)
|
|||||||
Prepaid
benefit cost
|
$
|
645
|
$
|
-
|
|||
Accrued
benefit cost
|
-
|
(704
|
)
|
||||
Minimum
additional pension liability
|
-
|
(147
|
)
|
||||
Other
|
-
|
-
|
|||||
Net
amount recognized
|
$
|
645
|
$
|
(851
|
)
|
Pension
Benefits
|
SERP
Benefits
|
||||||
At
December 31,
|
2006
|
2006
|
|||||
(In
thousands)
|
|||||||
Net
loss
|
$
|
725
|
$
|
-
|
|||
Prior
service cost
|
128
|
-
|
|||||
Net
transition obligation
|
-
|
371
|
|||||
Minimum
additional pension liability
|
-
|
(147
|
)
|
||||
Net
amount recognized
|
$
|
853
|
$
|
224
|
Pension
Benefits
|
SERP
Benefits
|
||||||||||||||||||
At
December 31,
|
2006
|
2005
|
2004
|
2006
|
2005
|
2004
|
|||||||||||||
(In
thousands)
|
|||||||||||||||||||
Components
of net periodic benefit cost and other amounts recognized in Other
Comprehensive Income
|
|||||||||||||||||||
Service
cost
|
$
|
424
|
$
|
317
|
$
|
277
|
$
|
65
|
$
|
87
|
$
|
63
|
|||||||
Interest
cost
|
252
|
223
|
200
|
55
|
71
|
52
|
|||||||||||||
Expected
return on plan assets
|
(327
|
)
|
(296
|
)
|
(208
|
)
|
-
|
-
|
-
|
||||||||||
Amortization
of net loss
|
40
|
25
|
25
|
-
|
22
|
6
|
|||||||||||||
Amortization
of unrecognized prior service cost
|
9
|
10
|
9
|
-
|
-
|
-
|
|||||||||||||
Amortization
of unrecognized transition (asset) obligation
|
(3
|
)
|
(9
|
)
|
(8
|
)
|
28
|
28
|
28
|
||||||||||
Net
periodic benefit cost
|
$
|
395
|
$
|
270
|
$
|
295
|
$
|
148
|
$
|
208
|
$
|
149
|
Year
|
Pension
and SERP Payments
|
|||
(In
thousands)
|
||||
2007
|
$
|
136
|
||
2008
|
136
|
|||
2009
|
135
|
|||
2010
|
1,397
|
|||
2011
|
191
|
|||
2012-2016
|
930
|
Plan
Assets at September 30,
|
2006
|
2005
|
|||||
Asset
Category:
|
|||||||
Equity
Securities
|
59.8
|
%
|
58.8
|
%
|
|||
Debt
Securities
|
39.9
|
41.2
|
|||||
Other
|
0.3
|
-
|
|||||
Total
|
100.0
|
%
|
100.0
|
%
|
Pension
Benefits
|
SERP
Benefits
|
||||||||||||||||||
At
December 31,
|
2006
|
2005
|
2004
|
2006
|
2005
|
2004
|
|||||||||||||
Weighted
Average Assumptions Used to Determine Benefit
Obligations
|
|||||||||||||||||||
Discount
rate
|
5.75
|
%
|
5.50
|
%
|
6.00
|
%
|
4.69
|
%
|
4.68
|
%
|
4.90
|
%
|
|||||||
Rate
of compensation increase
|
4.50
|
4.50
|
4.00
|
5.00
|
5.00
|
4.00
|
|||||||||||||
Weighted
Average Assumptions Used to Determine Net Periodic Benefit Cost
(Income)
|
|||||||||||||||||||
Discount
rate
|
5.50
|
%
|
6.00
|
%
|
6.00
|
%
|
4.73
|
%
|
4.90
|
%
|
5.14
|
%
|
|||||||
Rate
of compensation increase
|
4.50
|
4.00
|
4.00
|
4.00
|
4.00
|
4.00
|
|||||||||||||
Expected
long-term rate of return
|
8.00
|
8.00
|
8.00
|
-
|
-
|
-
|
For
the Year Ended
|
2006
|
2005
|
2004
|
|||||||
Risk
free interest rate
|
4.70
|
%
|
3.66
|
%
|
3.02
|
%
|
||||
Expected
dividend yield
|
3.67
|
3.76
|
2.75
|
|||||||
Expected
volatility
|
20.2
|
21.3
|
23.5
|
Weighted
|
|||||||||||||
Weighted
|
Average
|
||||||||||||
Number
|
Average
|
Remaining
|
Aggregate
|
||||||||||
of
|
Exercise
|
Contractual
|
Intrinsic
|
||||||||||
Options
|
Price
|
Life
|
Value
|
||||||||||
Outstanding,
December 31, 2005
|
83,107
|
$
|
16.88
|
||||||||||
Granted
|
63,983
|
$
|
25.25
|
||||||||||
Exercised
|
(16,078
|
)
|
$
|
12.82
|
|||||||||
Forfeited
|
(2,767
|
)
|
$
|
25.68
|
|||||||||
Outstanding,
December 31, 2006
|
128,245
|
$
|
21.37
|
7.38
years
|
$
|
444,835
|
|||||||
Exercisable,
December 31, 2006
|
74,059
|
$
|
18.49
|
5.78
years
|
$
|
444,835
|
|||||||
|
Number
of
|
||||||||||||
Range
of Exercise Prices
|
Shares
|
Price
|
|||||||||||
9,900
|
$
|
12.53
|
|||||||||||
19,683
|
$
|
13.17-14.67
|
|||||||||||
17,100
|
$
|
15.47
|
|||||||||||
11,471
|
$
|
24.00
|
|||||||||||
63,983
|
$
|
25.25
|
|||||||||||
6,108
|
$
|
26.00-$30.60
|
December
31,
|
2006
|
2005
|
2004
|
|||||||
(Dollars
in thousands, except for per share data)
|
||||||||||
Intrinsic
value of options exercised
|
$
|
180
|
$
|
289
|
$
|
549
|
||||
Cash
received from option exercised
|
49
|
216
|
203
|
|||||||
Tax
benefit realized from option exercises
|
21
|
16
|
21
|
|||||||
Weighted
average fair value of options granted
|
$
|
4.45
|
$
|
4.39
|
$
|
4.12
|
Weighted
|
|||||||
Average
Grant-Date
|
|||||||
Shares
|
Fair
Value
|
||||||
Unvested,
December 31, 2005
|
7,214
|
$
|
23.44
|
||||
Granted
|
15,987
|
$
|
25.25
|
||||
Vested
|
(3,491
|
)
|
$
|
20.10
|
|||
Forfeited
|
(12
|
)
|
$
|
30.60
|
|||
Unvested,
December 31, 2006
|
19,698
|
$
|
25.50
|
For
the Year Ended December 31,
|
2006
|
2005
|
2004
|
|||||||
(In
thousands, except per share data)
|
||||||||||
Net
income
|
$
|
8,168
|
$
|
9,623
|
$
|
10,377
|
||||
Common
equivalent shares:
|
||||||||||
Weighted
average common shares outstanding
|
6,139
|
6,241
|
6,255
|
|||||||
Weighted
average common equivalent shares
|
20
|
34
|
75
|
|||||||
Weighted
average common and common equivalent shares
|
6,159
|
6,275
|
6,330
|
|||||||
Basic
earnings per share
|
$
|
1.33
|
$
|
1.54
|
$
|
1.66
|
||||
Diluted
earnings per share
|
$
|
1.33
|
$
|
1.53
|
$
|
1.64
|
December
31, 2006
|
||||
(In
thousands)
|
||||
2007
|
$
|
692
|
||
2008
|
628
|
|||
2009
|
619
|
|||
2010
|
435
|
|||
2011
|
307
|
|||
Thereafter
|
1,299
|
|||
Total
minimum rentals
|
$
|
3,980
|
December
31,
|
2006
|
2005
|
|||||
(In
thousands)
|
|||||||
Standby
letters of credit
|
$
|
2,736
|
$
|
1,955
|
|||
Loan
commitments outstanding (1)
|
16,718
|
11,839
|
|||||
Unused
equity lines
|
49,553
|
42,432
|
|||||
Unused
construction lines
|
4,627
|
1,324
|
|||||
Unused
lines of credit
|
31,220
|
23,154
|
|||||
Unused
overdraft lines
|
13,560
|
12,268
|
|||||
Total
commitments outstanding
|
$
|
118,414
|
$
|
92,972
|
(1)
|
Of
the $16,718,000 of loan commitments outstanding, $1,710,000 are
|
fixed
rate commitments and $15,008,000 are variable rate
commitments.
|
December
31,
|
2006
|
2005
|
|||||||||||
(In
thousands)
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||
Amount
|
Value
|
Amount
|
Value
|
||||||||||
Financial
Assets:
|
|||||||||||||
Cash
and due from banks
|
$
|
13,231
|
$
|
13,231
|
$
|
15,649
|
$
|
15,649
|
|||||
Interest
bearing deposits with banks
|
32
|
32
|
26
|
26
|
|||||||||
Securities
available for sale
|
202,590
|
202,590
|
182,801
|
182,801
|
|||||||||
Securities
restricted
|
878
|
878
|
1,377
|
1,377
|
|||||||||
Securities
held to maturity
|
9,444
|
9,442
|
10,012
|
9,989
|
|||||||||
Loans
|
323,485
|
318,697
|
299,881
|
305,096
|
|||||||||
Accrued
interest receivable
|
2,692
|
2,692
|
2,624
|
2,624
|
|||||||||
Financial
Liabilities:
|
|||||||||||||
Demand
and other deposits
|
504,412
|
504,365
|
468,025
|
467,544
|
|||||||||
Overnight
borrowings
|
18,600
|
18,600
|
14,500
|
14,500
|
|||||||||
Accrued
interest payable
|
855
|
855
|
328
|
328
|
|||||||||
Off-Balance-Sheet
Liabilities
|
|||||||||||||
Commitments
to extend credit
|
16,718
|
-
|
11,839
|
-
|
Bridge
Bancorp, Inc. (Consolidated)
|
|||||||||||||||||||
As
of December 31,
|
2006
|
||||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||
Actual
|
For
Capital
Adequacy
Purposes
|
To
Be Well
Capitalized
Under
Prompt
Corrective
Action
Provision
|
|||||||||||||||||
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
|
|||||||||||
As
of December 31,
|
2005
|
||||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||
Actual
|
For
Capital
Adequacy
Purposes
|
|
|
To
Be Well Capitalized Under Prompt Corrective Actions
Provisions
|
|||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||
Total
Capital (to risk weighted assets)
|
$
|
51,410
|
14.0
|
%
|
$
|
29,399
|
>8.0
|
%
|
n/a
|
n/a
|
|||||||||
Tier
1 Capital (to risk weighted assets)
|
49,115
|
13.4
|
%
|
14,699
|
>4.0
|
%
|
n/a
|
n/a
|
|||||||||||
Tier
1 Capital (to average assets)
|
49,115
|
9.1
|
%
|
21,517
|
>4.0
|
%
|
n/a
|
n/a
|
Bridgehampton
National Bank
|
|||||||||||||||||||
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
|
%
|
||||||||||
As
of December 31,
|
2005
|
||||||||||||||||||
(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)
|
$
|
51,234
|
14.0
|
%
|
$
|
29,392
|
>8.0
|
%
|
$
|
35,805
|
>10.0
|
%
|
|||||||
Tier
1 Capital (to risk weighted assets)
|
48,851
|
13.3
|
%
|
14,696
|
>4.0
|
%
|
21,483
|
>
6.0
|
%
|
||||||||||
Tier
1 Capital (to average assets)
|
48,851
|
9.0
|
%
|
21,658
|
>4.0
|
%
|
27,073
|
>
5.0
|
%
|
December
31,
|
2006
|
2005
|
|||||
(In
thousands, except share data)
|
|||||||
ASSETS
|
|||||||
Cash
and cash equivalents
|
$
|
2
|
$
|
80
|
|||
Dividend
receivable
|
1,408
|
1,441
|
|||||
Other
assets
|
157
|
82
|
|||||
Investment
in the Bank
|
45,379
|
46,489
|
|||||
Total
Assets
|
$
|
46,946
|
$
|
48,092
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Liabilities
|
|||||||
Dividends
payable
|
$
|
1,394
|
$
|
1,428
|
|||
Other
liabilities
|
13
|
13
|
|||||
Total
Liabilities
|
1,407
|
1,441
|
|||||
Stockholders’
Equity
|
53,715
|
50,936
|
|||||
Treasury
stock at cost, 323,728 and 179,767 shares at
|
|||||||
December
31, 2006 and 2005, respectively
|
(8,176
|
)
|
(4,285
|
)
|
|||
Total
Stockholders’ Equity
|
45,539
|
46,651
|
|||||
Total
Liabilities and Stockholders’ Equity
|
$
|
46,946
|
$
|
48,092
|
Year
Ended December 31,
|
2006
|
2005
|
2004
|
|||||||
(In
thousands)
|
||||||||||
Dividend
income from the Bank
|
$
|
9,482
|
$
|
6,390
|
$
|
5,104
|
||||
Other
operating expenses
|
1
|
1
|
-
|
|||||||
Income
before income taxes and equity in
|
||||||||||
undistributed
earnings of the Bank
|
9,481
|
6,389
|
5,104
|
|||||||
Income
tax provision
|
-
|
-
|
-
|
|||||||
Income
before equity in undistributed
|
||||||||||
earnings
of the Bank
|
9,481
|
6,389
|
5,104
|
|||||||
Equity
in (overdistributed) undistributed earnings of the Bank
|
(1,313
|
)
|
3,234
|
5,273
|
||||||
Net
income
|
$
|
8,168
|
$
|
9,623
|
$
|
10,377
|
Year
Ended December 31,
|
2006
|
2005
|
2004
|
|||||||
(In
thousands)
|
||||||||||
Operating
Activities:
|
||||||||||
Net
income
|
$
|
8,168
|
$
|
9,623
|
$
|
10,377
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||
Equity
in overdistributed (undistributed) earnings of the Bank
|
1,313
|
(3,234
|
)
|
(5,273
|
)
|
|||||
Income
tax benefit from exercise of employee stock options
|
21
|
16
|
7
|
|||||||
Decrease
in other assets
|
623
|
109
|
1,432
|
|||||||
(Decrease)
increase in other liabilities
|
(545
|
)
|
11
|
(5
|
)
|
|||||
Net
cash provided by operating activities
|
9,580
|
6,525
|
6,538
|
|||||||
Cash
flows used by financing activities:
|
||||||||||
Net
proceeds from issuance of common stock upon exercise of stock
options
|
49
|
216
|
203
|
|||||||
Payment
for the purchase of treasury stock
|
(4,039
|
)
|
(2,134
|
)
|
(611
|
)
|
||||
Dividends
paid
|
(5,668
|
)
|
(5,551
|
)
|
(5,790
|
)
|
||||
Net
cash used by financing activities
|
(9,658
|
)
|
(7,469
|
)
|
(6,198
|
)
|
||||
Net
increase in cash and cash equivalents
|
(78
|
)
|
(944
|
)
|
340
|
|||||
Cash
and cash equivalents at beginning of year
|
80
|
1,024
|
684
|
|||||||
Cash
and cash equivalents at end of year
|
$
|
2
|
$
|
80
|
$
|
1,024
|
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
|
|||||||||
Other
income
|
739
|
1,260
|
1,200
|
1,214
|
|||||||||
Other
expenses
|
3,769
|
4,073
|
4,137
|
4,023
|
|||||||||
Income
before income taxes
|
2,949
|
2,979
|
3,077
|
3,014
|
|||||||||
Provision
for income taxes
|
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
|
|||||
|
|||||||||||||
2005
Quarter Ended,
|
March
31,
|
June
30,
|
September
30,
|
December
31,
|
|||||||||
(In
thousands, except per share amounts)
|
|||||||||||||
Interest
income
|
$
|
6,912
|
$
|
7,004
|
$
|
7,373
|
$
|
7,424
|
|||||
Interest
expense
|
916
|
1,033
|
1,118
|
1,252
|
|||||||||
Net
interest income
|
5,996
|
5,971
|
6,255
|
6,172
|
|||||||||
Provision
for loan losses
|
-
|
150
|
150
|
-
|
|||||||||
Net
interest income after provision for loan losses
|
5,996
|
5,821
|
6,105
|
6,172
|
|||||||||
Other
income
|
1,021
|
1,339
|
1,391
|
1,354
|
|||||||||
Other
expenses
|
3,568
|
3,645
|
3,771
|
3,663
|
|||||||||
Income
before income taxes
|
3,449
|
3,515
|
3,725
|
3,863
|
|||||||||
Provision
for income taxes
|
1,199
|
1,190
|
1,251
|
1,289
|
|||||||||
Net
income
|
$
|
2,250
|
$
|
2,325
|
$
|
2,474
|
$
|
2,574
|
|||||
Basic
earnings per share
|
$
|
0.36
|
$
|
0.37
|
$
|
0.40
|
$
|
0.41
|
|||||
Diluted
earnings per share
|
$
|
0.36
|
$
|
0.37
|
$
|
0.39
|
$
|
0.41
|
/s/
Crowe Chizek and Company LLC
|
|
Crowe
Chizek and Company LLC
|
(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.
|
||
24
|
|||
25
|
|||
26
|
|||
27
|
|||
28
|
|||
50
|
|||
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 54.
|
|||
BRIDGE
BANCORP, INC.
|
|
Registrant
|
|
March
15, 2007
|
/s/
Thomas J. Tobin
|
Thomas
J. Tobin
|
|
President
and Chief Executive Officer
|
|
March
15, 2007
|
/s/
Janet T. Verneuille
|
Janet
T. Verneuille,
|
|
Executive
Vice President, Chief Financial Officer
|
|
and
Treasurer
|
|
March
15, 2007
|
/s/
Raymond Wesnofske
|
,Director
|
Raymond
Wesnofske
|
||
March
15, 2007
|
/s/
Thomas J. Tobin
|
,Director
|
Thomas
J. Tobin
|
||
March
15, 2007
|
/s/
Thomas E. Halsey
|
,Director
|
Thomas
E. Halsey
|
||
March
15, 2007
|
/s/
Marcia Z. Hefter
|
,Director
|
Marcia
Z. Hefter
|
||
March
15, 2007
|
/s/
R. Timothy Maran
|
,Director
|
R.
Timothy Maran
|
||
March
15, 2007
|
/s/
Charles I. Massoud
|
,Director
|
Charles
I. Massoud
|
||
March
15, 2007
|
/s/
Howard H. Nolan
|
,Director
|
Howard
H. Nolan
|
||
March
15, 2007
|
/s/
Dennis A. Suskind
|
,Director
|
Dennis
A. Suskind
|
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
10-Q, File No. 0-18546, filed November 2, 2004)
|
*
|
10.1
|
Employment
Contract - Thomas J. Tobin (incorporated by reference to Registrant’s Form
10-Q, File No. 0-18546, filed November 7, 2001)
|
*
|
10.2
|
Employment
Contract - Janet T. Verneuille (incorporated by reference to Registrant’s
Form 10-Q, File No. 0-18546, filed November 7, 2001)
|
*
|
10.3
|
Employment
Contract - Howard H. Nolan (incorporated by reference to Registrant’s Form
10-Q, File No. 0-18546, filed November 7, 2006)
|
|
10.5
|
Equity
Incentive Plan (incorporated by reference to Registrant’s Form S-8, File
No.
0-18546,
filed August 14, 2006)
|
*
|
23
|
||
31.1
|
||
31.2
|
||
32.1
|