x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
SECURITIES
EXCHANGE ACT OF 1934
|
For
the fiscal year ended December 31, 2005
|
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
|
4
|
|
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
|
6
|
|
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
|
48
|
|
Controls
and Procedures
|
48
|
|
Other
Information
|
48
|
|
Directors
and Executive Officers of the Registrant
|
49
|
|
Executive
Compensation
|
49
|
|
Security
Ownership of Certain Beneficial Owners and Management and
|
||
Related
Stockholder Matters
|
49
|
|
Certain
Relationships and Related Transactions
|
49
|
|
Principal
Accounting Fees and Services
|
49
|
|
Exhibits,
Financial Statement Schedules
|
50
|
|
51
|
||
52
|
Name
|
Positions
held with the Company
|
|
Thomas
J. Tobin
|
President
and Chief Executive Officer
|
|
Janet
T. Verneuille
|
Senior
Vice President and Chief Financial Officer
|
|
and
Treasurer
|
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
|
Stock
Prices
|
Dividends
|
||
High
|
Low
|
Declared
|
|
By
Quarter 2004
|
|||
First
|
$27.23
|
$22.50
|
$0.16
|
Second
|
$30.83
|
$25.47
|
$0.17
|
Third
|
$30.25
|
$27.00
|
$0.18
|
Fourth
|
$30.75
|
$28.75
|
$0.21
|
Amounts
have been restated for a three-for-two stock split, in
the
|
form
of a stock dividend, effective July 9,
2004.
|
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-2004 (1)
|
Maximum
Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased
Under the Plans or Programs
|
October
2005
|
83,106
|
97,704
|
||
November
2005
|
9,820
|
$24.61
|
92,926
|
87,884
|
December
2005
|
4,500
|
$26.05
|
97,426
|
83,384
|
(1)
|
The
Board of Directors reaffirmed the stock repurchase program on May
17,
2004.
|
-
|
The
Board of Directors approved repurchase of shares up to 180,810
shares.
|
-
|
There
is no expiration date for the stock repurchase plan.
|
-
|
There
is no stock repurchase plan that has expired nor been terminated
during
the period ended December 31, 2005.
|
December
31,
|
2005
|
2004
|
2003
|
2002
|
2001
|
||||
Selected
Financial Data:
|
|||||||||
Securities
available for sale
|
$184,178
|
$204,021
|
$195,341
|
$182,416
|
$127,102
|
||||
Securities
held to maturity
|
10,012
|
21,213
|
14,396
|
11,023
|
16,159
|
||||
Total
loans
|
302,264
|
296,134
|
273,188
|
248,388
|
215,362
|
||||
Total
assets
|
533,444
|
547,200
|
511,613
|
463,986
|
393,523
|
||||
Total
deposits
|
468,025
|
469,311
|
457,159
|
406,409
|
357,155
|
||||
Total
stockholders’ equity
|
46,651
|
47,213
|
42,794
|
39,971
|
32,861
|
||||
Year
Ended December 31,
|
|||||||||
Selected
Operating Data:
|
|||||||||
Total
interest income
|
$
28,713
|
$
26,923
|
$
25,968
|
$
26,486
|
$
27,009
|
||||
Total
interest expense
|
4,319
|
2,351
|
2,601
|
4,490
|
7,868
|
||||
Net
interest income
|
24,394
|
24,572
|
23,367
|
21,996
|
19,141
|
||||
Provision
for loan losses
|
300
|
300
|
-
|
220
|
323
|
||||
|
|||||||||
Net
interest income after provision for loan losses
|
24,094
|
24,272
|
23,367
|
21,776
|
18,818
|
||||
Total
other income
|
5,105
|
5,440
|
4,716
|
3,405
|
2,419
|
||||
Total
other expenses
|
14,647
|
13,564
|
12,997
|
11,942
|
11,198
|
||||
|
|||||||||
Income
before income taxes
|
14,552
|
16,148
|
15,086
|
13,239
|
10,039
|
||||
Provision
for income taxes
|
4,929
|
5,771
|
5,488
|
4,722
|
3,292
|
||||
Net
income
|
$
9,623
|
$
10,377
|
$
9,598
|
$
8,517
|
$
6,747
|
||||
December
31,
|
|||||||||
Selected
Financial Ratios and Other Data:
|
|||||||||
Return
on average equity
|
20.15%
|
22.82%
|
22.58%
|
23.93%
|
21.41%
|
||||
Return
on average assets
|
1.76%
|
1.89%
|
1.91%
|
1.90%
|
1.73%
|
||||
Average
equity to average assets
|
8.71%
|
8.30%
|
8.46%
|
7.96%
|
8.06%
|
||||
Dividend
payout ratio (1)
|
58.88%
|
43.39%
|
50.98%
|
29.57%
|
34.27%
|
||||
Diluted
earnings per share
|
$1.53
|
$1.64
|
$1.53
|
$1.37
|
$1.07
|
||||
Basic
earnings per share
|
$1.54
|
$1.66
|
$1.55
|
$1.38
|
$1.07
|
||||
Cash
dividends declared per common share (1)
|
$0.91
|
$0.72
|
$0.78
|
$0.41
|
$0.37
|
(1) |
On
December 15, 2003, the Company declared a special dividend of
approximately $1,660,000, or $0.27 per
share.
|
· |
Continued
high performance with return on average equity of 20.15% and return
on
average assets of 1.76%
|
· |
Balance
sheet management to avoid further declines of the net interest margin
|
· |
Demand
deposit increase of 20.2%
|
· |
Maintenance
of superior credit quality
|
· |
Efficiency
ratio of 48.03%
|
· |
Gross
revenue growth in the title insurance abstract subsidiary of
49.3%
|
· |
Opening
of the Westhampton Beach branch
|
· |
Effective
capital management
|
Year
Ended December 31,
|
2005
|
2004
|
2003
|
|||||||||||||||||||||||||
(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)
|
$
|
299,950
|
$
|
20,724
|
6.9
|
%
|
$
|
285,058
|
$
|
18,850
|
6.6
|
%
|
$
|
257,301
|
$
|
17,971
|
7.0
|
%
|
||||||||||
Mortgage-backed
securities
|
102,460
|
4,160
|
4.0
|
107,146
|
4,137
|
3.8
|
98,278
|
4,012
|
4.1
|
|||||||||||||||||||
Taxable
securities
|
41,485
|
1,520
|
3.6
|
57,170
|
2,187
|
3.8
|
59,942
|
2,285
|
3.8
|
|||||||||||||||||||
Tax
exempt securities (1)
|
60,005
|
2,944
|
4.8
|
53,552
|
2,514
|
4.6
|
43,357
|
2,449
|
5.7
|
|||||||||||||||||||
Federal
funds sold
|
7,971
|
265
|
3.3
|
7,776
|
98
|
1.2
|
6,581
|
74
|
1.1
|
|||||||||||||||||||
Securities,
restricted
|
2,034
|
95
|
4.7
|
1,895
|
34
|
1.8
|
1,635
|
66
|
4.0
|
|||||||||||||||||||
Deposits
with banks
|
93
|
2
|
2.2
|
176
|
2
|
1.1
|
118
|
1
|
0.9
|
|||||||||||||||||||
Total
interest earning assets
|
513,998
|
29,710
|
5.8
|
512,773
|
27,822
|
5.4
|
467,212
|
26,858
|
5.7
|
|||||||||||||||||||
Non
interest earning assets:
|
||||||||||||||||||||||||||||
Cash
and due from banks
|
15,871
|
16,591
|
16,279
|
|||||||||||||||||||||||||
Other
assets
|
18,186
|
18,671
|
18,972
|
|||||||||||||||||||||||||
Total
assets
|
$
|
548,055
|
$
|
548,035
|
$
|
502,463
|
||||||||||||||||||||||
Interest
bearing liabilities:
|
||||||||||||||||||||||||||||
Savings,
N.O.W. and
|
||||||||||||||||||||||||||||
money
market deposits
|
$
|
249,382
|
3,022
|
1.2
|
%
|
$
|
258,100
|
$
|
1,331
|
0.5
|
%
|
$
|
248,520
|
$
|
1,478
|
0.6
|
%
|
|||||||||||
Certificates
of deposit of $100,000
|
||||||||||||||||||||||||||||
or
more
|
28,777
|
550
|
1.9
|
36,249
|
475
|
1.3
|
29,284
|
477
|
1.6
|
|||||||||||||||||||
Other
time deposits
|
27,805
|
470
|
1.7
|
31,907
|
457
|
1.4
|
33,010
|
597
|
1.8
|
|||||||||||||||||||
Federal
funds purchased
|
1,999
|
72
|
3.6
|
2,136
|
33
|
1.5
|
2,931
|
44
|
1.5
|
|||||||||||||||||||
Other
borrowings
|
6,688
|
205
|
3.1
|
3,131
|
55
|
1.8
|
332
|
5
|
1.5
|
|||||||||||||||||||
Total
interest bearing liabilities
|
314,651
|
4,319
|
1.4
|
331,523
|
2,351
|
0.7
|
314,077
|
2,601
|
0.8
|
|||||||||||||||||||
Non
interest bearing liabilities:
|
||||||||||||||||||||||||||||
Demand
deposits
|
183,260
|
167,765
|
142,269
|
|||||||||||||||||||||||||
Other
liabilities
|
2,386
|
3,277
|
3,608
|
|||||||||||||||||||||||||
Total
liabilities
|
500,297
|
502,565
|
459,954
|
|||||||||||||||||||||||||
Stockholders’
equity
|
47,758
|
45,470
|
42,509
|
|||||||||||||||||||||||||
Total
liabilities and stockholders’ equity
|
$
|
548,055
|
$
|
548,035
|
$
|
502,463
|
||||||||||||||||||||||
Net
interest income/interest
|
||||||||||||||||||||||||||||
rate
spread (2)
|
25,391
|
4.4
|
%
|
25,471
|
4.7
|
%
|
24,257
|
4.9
|
%
|
|||||||||||||||||||
Net
interest earning assets/net interest
|
||||||||||||||||||||||||||||
margin
(3)
|
$
|
199,347
|
4.9
|
%
|
$
|
181,250
|
5.0
|
%
|
$
|
153,135
|
5.2
|
%
|
||||||||||||||||
Ratio
of interest earning assets to
|
||||||||||||||||||||||||||||
interest
bearing liabilities
|
163.4
|
%
|
154.7
|
%
|
148.8
|
%
|
||||||||||||||||||||||
Less:
Tax equivalent adjustment
|
(997
|
)
|
(899
|
)
|
(890
|
)
|
||||||||||||||||||||||
Net
interest income
|
$
|
24,394
|
$
|
24,572
|
$
|
23,367
|
(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,
|
2005
Over 2004
|
2004
Over 2003
|
|||||||||||||||||
(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)
|
$
|
1,004
|
$
|
870
|
$
|
1,874
|
$
|
1,676
|
$
|
(797
|
)
|
$
|
879
|
||||||
Mortgage-backed
securities
|
(186
|
)
|
209
|
23
|
353
|
(228
|
)
|
125
|
|||||||||||
Taxable
securities
|
(584
|
)
|
(83
|
)
|
(667
|
)
|
(100
|
)
|
2
|
(98
|
)
|
||||||||
Tax
exempt securities (1)
|
309
|
121
|
430
|
516
|
(451
|
)
|
65
|
||||||||||||
Federal
funds sold
|
3
|
164
|
167
|
15
|
9
|
24
|
|||||||||||||
Securities,
restricted
|
3
|
58
|
61
|
9
|
(41
|
)
|
(32
|
)
|
|||||||||||
Deposits
with banks
|
(2
|
)
|
2
|
-
|
1
|
-
|
1
|
||||||||||||
Total
interest earning assets
|
547
|
1,341
|
1,888
|
2,470
|
(1,506
|
)
|
964
|
||||||||||||
Interest
expense on interest bearing liabilities:
|
|||||||||||||||||||
Savings,
N.O.W. and money market deposits
|
(47
|
)
|
1,738
|
1,691
|
55
|
(202
|
)
|
(147
|
)
|
||||||||||
Certificates
of deposit of $100,000 or more
|
(112
|
)
|
187
|
75
|
101
|
(103
|
)
|
(2
|
)
|
||||||||||
Other
time deposits
|
(63
|
)
|
76
|
13
|
(19
|
)
|
(121
|
)
|
(140
|
)
|
|||||||||
Federal
funds purchased
|
(2
|
)
|
41
|
39
|
(12
|
)
|
1
|
(11
|
)
|
||||||||||
Other
borrowings
|
91
|
59
|
150
|
49
|
1
|
50
|
|||||||||||||
Total
interest bearing liabilities
|
(133
|
)
|
2,101
|
1,968
|
174
|
(424
|
)
|
(250
|
)
|
||||||||||
Net
interest income
|
$
|
680
|
$
|
(760
|
)
|
$
|
(80
|
)
|
$
|
2,296
|
$
|
(1,082
|
)
|
$
|
1,214
|
December
31,
|
2005
|
2004
|
2003
|
2002
|
2001
|
|||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Allowance
for loan losses
|
||||||||||||||||
balance
at beginning of period
|
$
|
2,188
|
$
|
2,144
|
$
|
2,294
|
$
|
2,249
|
$
|
2,100
|
||||||
Charge-offs:
|
||||||||||||||||
Real
estate mortgage loans
|
7
|
3
|
38
|
4
|
-
|
|||||||||||
Real
estate construction loans
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Commercial,
financial and agricultural loans
|
153
|
302
|
163
|
212
|
108
|
|||||||||||
Installment/consumer
loans
|
129
|
65
|
148
|
22
|
59
|
|||||||||||
Total
|
289
|
370
|
349
|
238
|
167
|
|||||||||||
Recoveries:
|
||||||||||||||||
Real
estate mortgage loans
|
17
|
23
|
13
|
8
|
29
|
|||||||||||
Real
estate construction loans
|
100
|
-
|
-
|
-
|
-
|
|||||||||||
Commercial,
financial and agricultural loans
|
37
|
61
|
90
|
44
|
12
|
|||||||||||
Installment/consumer
loans
|
30
|
30
|
96
|
31
|
51
|
|||||||||||
Total
|
184
|
114
|
199
|
83
|
92
|
|||||||||||
Net
charge-offs (recoveries)
|
105
|
256
|
150
|
155
|
75
|
|||||||||||
Provision
for loan losses
|
||||||||||||||||
charged
to operations
|
300
|
300
|
-
|
220
|
323
|
|||||||||||
Balance
before reclass to other liabilities
|
2,383
|
2,188
|
2,144
|
2,314
|
2,348
|
|||||||||||
Net
change in other liabilities portion allocated to
|
||||||||||||||||
off
balance sheet items
|
-
|
-
|
-
|
(20
|
)
|
(99
|
)
|
|||||||||
Balance
at end of period
|
$
|
2,383
|
$
|
2,188
|
$
|
2,144
|
$
|
2,294
|
$
|
2,249
|
||||||
Ratio
of net charge-offs during period
|
||||||||||||||||
to
average loans outstanding
|
0.04
|
%
|
0.09
|
%
|
0.06
|
%
|
0.07
|
%
|
0.04
|
%
|
Year
Ended December 31,
|
2005
|
2004
|
2003
|
2002
|
2001
|
||||||||||||||||||||||||||
(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
|
$
|
273
|
10.5
|
%
|
$
|
315
|
11.6
|
%
|
$
|
272
|
12.4
|
%
|
$
|
591
|
15.6
|
%
|
$
|
505
|
13.1
|
%
|
|||||||||||
Real
estate construction loans
|
183
|
5.9
|
148
|
6.2
|
148
|
7.3
|
227
|
5.0
|
337
|
4.1
|
|||||||||||||||||||||
Real
estate mortgage loans
|
1,817
|
80.4
|
1,659
|
80.0
|
1,663
|
78.1
|
1,160
|
76.2
|
1,160
|
79.9
|
|||||||||||||||||||||
Installment/consumer
loans
|
110
|
3.2
|
66
|
2.2
|
61
|
2.2
|
316
|
3.2
|
247
|
2.9
|
|||||||||||||||||||||
Total
|
$
|
2,383
|
100.0
|
%
|
$
|
2,188
|
100.0
|
%
|
$
|
2,144
|
100.0
|
%
|
$
|
2,294
|
100.0
|
%
|
$
|
2,249
|
100.0
|
%
|
|
|||||||||
December
31,
|
2005
|
2004
|
2003
|
2002
|
2001
|
||||
(In
thousands)
|
|||||||||
Real
estate mortgage loans
|
$242,928
|
$236,812
|
$213,256
|
$189,226
|
$172,214
|
||||
Commercial,
financial, and agricultural loans
|
31,644
|
34,342
|
33,810
|
38,692
|
28,281
|
||||
Installment/consumer
loans
|
9,827
|
6,685
|
6,105
|
8,011
|
6,149
|
||||
Real
estate construction loans
|
17,960
|
18,452
|
20,037
|
12,520
|
8,784
|
||||
Total
loans
|
302,359
|
296,291
|
273,208
|
248,449
|
215,428
|
||||
Unearned
income
|
(95)
|
(157)
|
(20)
|
(61)
|
(66)
|
||||
302,264
|
296,134
|
273,188
|
248,388
|
215,362
|
|||||
Allowance
for loan losses
|
(2,383)
|
(2,188)
|
(2,144)
|
(2,294)
|
(2,249)
|
||||
Net
loans
|
$299,881
|
$293,946
|
$271,044
|
$246,094
|
$213,113
|
After
One
|
|||||||||||||
Within
One
|
But
Within
|
After
|
|||||||||||
Year
|
Five
Years
|
Five
Years
|
Total
|
||||||||||
(In
thousands)
|
|||||||||||||
Commercial
loans
|
$
|
11,966
|
$
|
14,315
|
$
|
5,363
|
$
|
31,644
|
|||||
Construction
loans (1)
|
7,132
|
1,000
|
9,828
|
17,960
|
|||||||||
Total
|
$
|
19,098
|
$
|
15,315
|
$
|
15,191
|
$
|
49,604
|
|||||
Rate
provisions:
|
|||||||||||||
Amounts
with fixed interest rates
|
$
|
1,854
|
$
|
7,617
|
$
|
1,493
|
$
|
10,964
|
|||||
Amounts
with variable interest rates
|
17,244
|
7,698
|
13,698
|
38,640
|
|||||||||
Total
|
$
|
19,098
|
$
|
15,315
|
$
|
15,191
|
$
|
49,604
|
(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
construction phase.
|
December
31,
|
2005
|
2004
|
2003
|
2002
|
2001
|
|||||||||||
(In
thousands)
|
||||||||||||||||
Loans
90 days or more past due and still accruing
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Nonaccrual
loans
|
658
|
1,695
|
152
|
200
|
532
|
|||||||||||
Restructured
loans
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Other
real estate owned, net
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Total
|
$
|
658
|
$
|
1,695
|
$
|
152
|
$
|
200
|
$
|
532
|
Year
Ended December 31,
|
2005
|
2004
|
2003
|
2002
|
2001
|
|||||||||||
(In thousands) | ||||||||||||||||
Gross
interest income that would have been recorded
|
||||||||||||||||
during
the year under original terms:
|
||||||||||||||||
Nonaccrual
loans
|
$
|
38
|
$
|
16
|
$
|
9
|
$
|
13
|
$
|
66
|
||||||
Restructured
loans
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Gross
interest income recorded during the year:
|
||||||||||||||||
Nonaccrual
loans
|
$
|
17
|
$
|
12
|
$
|
6
|
$
|
4
|
$
|
17
|
||||||
Restructured
loans
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Commitments
for additional funds
|
-
|
-
|
-
|
-
|
-
|
December
31,
|
2005
|
2004
|
2003
|
||||||||||||||||||||||||||||||||||
(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
|
$
|
38,443
|
$
|
7
|
$
|
(788
|
)
|
$
|
37,662
|
$
|
53,736
|
$
|
519
|
$
|
(216
|
)
|
$
|
54,039
|
$
|
52,855
|
$
|
1,479
|
$
|
(165
|
)
|
$
|
54,169
|
||||||||||
State
and municipal obligations
|
51,392
|
387
|
(559
|
)
|
51,220
|
40,027
|
1,098
|
(81
|
)
|
41,044
|
35,495
|
1,619
|
(70
|
)
|
37,044
|
||||||||||||||||||||||
Mortgage-backed
securities
|
96,938
|
27
|
(3,046
|
)
|
93,919
|
107,609
|
483
|
(1,133
|
)
|
106,959
|
102,463
|
1,124
|
(1,101
|
)
|
102,486
|
||||||||||||||||||||||
Total
available for sale
|
186,773
|
421
|
(4,393
|
)
|
182,801
|
201,372
|
2,100
|
(1,430
|
)
|
202,042
|
190,813
|
4,222
|
(1,336
|
)
|
193,699
|
||||||||||||||||||||||
Securities,
restricted:
|
|||||||||||||||||||||||||||||||||||||
Federal
Reserve Bank Stock
|
36
|
-
|
-
|
36
|
36
|
-
|
-
|
36
|
36
|
-
|
-
|
36
|
|||||||||||||||||||||||||
Federal
Home Loan Bank Stock
|
1,341
|
-
|
-
|
1,341
|
1,943
|
-
|
-
|
1,943
|
1,606
|
-
|
-
|
1,606
|
|||||||||||||||||||||||||
Total
securities, restricted
|
1,377
|
-
|
-
|
1,377
|
1,979
|
-
|
-
|
1,979
|
1,642
|
-
|
-
|
1,642
|
|||||||||||||||||||||||||
Held
to maturity:
|
|||||||||||||||||||||||||||||||||||||
State
and municipal obligations
|
10,012
|
-
|
(23
|
)
|
9,989
|
21,213
|
-
|
(82
|
)
|
21,131
|
14,396
|
-
|
(17
|
)
|
14,379
|
||||||||||||||||||||||
Total
held to maturity
|
10,012
|
-
|
(23
|
)
|
9,989
|
21,213
|
-
|
(82
|
)
|
21,131
|
14,396
|
-
|
(17
|
)
|
14,379
|
||||||||||||||||||||||
Total
debt and equity securities
|
$
|
198,162
|
$
|
421
|
$
|
(4,416
|
)
|
$
|
194,167
|
$
|
224,564
|
$
|
2,100
|
$
|
(1,512
|
)
|
$
|
225,152
|
$
|
206,851
|
$
|
4,222
|
$
|
(1,353
|
)
|
$
|
209,720
|
Total
Amounts Committed
|
Less
than One Year
|
One
to
Three
Years
|
Four
to Five Years
|
Over
Five Years
|
|||||||||||
(In
thousands)
|
|||||||||||||||
Operating
leases
|
$
|
2,424
|
$
|
493
|
$
|
781
|
$
|
183
|
$
|
967
|
|||||
Purchase
obligation
|
250
|
250
|
-
|
-
|
-
|
||||||||||
Standby
letters of credit
|
1,955
|
1,433
|
522
|
-
|
-
|
||||||||||
Loan
commitments outstanding
(1)
|
11,839
|
11,839
|
-
|
-
|
-
|
||||||||||
Unused
equity lines
|
42,432
|
3,313
|
16,085
|
9,405
|
13,629
|
||||||||||
Unused
construction lines
|
1,324
|
145
|
-
|
-
|
1,179
|
||||||||||
Unused
lines of credit
|
23,154
|
11,396
|
6,562
|
734
|
4,462
|
||||||||||
Unused
overdraft lines
|
12,268
|
9,194
|
2,441
|
628
|
5
|
||||||||||
Total
commitments outstanding
|
$
|
95,646
|
$
|
38,063
|
$
|
26,391
|
$
|
10,950
|
$
|
20,242
|
(1)
|
Of
the $11,839,000 of loan commitments outstanding, $987,000 are fixed
rate
commitments and
|
$10,852,000
are variable rate commitments.
|
2005
|
|||||||
Change
in Interest
|
Potential
Change
|
||||||
Rates
in Basis Points
|
in
Net
|
||||||
(RATE
SHOCK)
|
Interest
Income
|
||||||
(Dollars
in thousands)
|
|||||||
$
Change
|
%
Change
|
||||||
200
|
$
|
(1,620
|
)
|
(6.16
|
)%
|
||
Static
|
-
|
-
|
|||||
(200)
|
$
|
(438
|
)
|
(1.67
|
)%
|
December
31,
|
December
31,
|
||||||
2005
|
2004
|
||||||
ASSETS
|
|||||||
Cash
and due from banks
|
$
|
15,649
|
$
|
8,744
|
|||
Interest
earning deposits with banks
|
26
|
118
|
|||||
Total
cash and cash equivalents
|
15,675
|
8,862
|
|||||
Securities
available for sale, at fair value
|
182,801
|
202,042
|
|||||
Securities,
restricted
|
1,377
|
1,979
|
|||||
Securities
held to maturity (fair value of $9,989 and $21,131,
respectively)
|
10,012
|
21,213
|
|||||
Total
securities, net
|
194,190
|
225,234
|
|||||
Loans
|
302,264
|
296,134
|
|||||
Less:
|
|||||||
Allowance
for loan losses
|
(2,383
|
)
|
(2,188
|
)
|
|||
Loans,
net
|
299,881
|
293,946
|
|||||
Banking
premises and equipment, net
|
15,640
|
13,817
|
|||||
Accrued
interest receivable
|
2,624
|
2,469
|
|||||
Other
assets
|
5,434
|
2,872
|
|||||
Total
Assets
|
$
|
533,444
|
$
|
547,200
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Demand
deposits
|
$
|
190,426
|
$
|
158,366
|
|||
Savings,
N.O.W. and money market deposits
|
233,728
|
242,814
|
|||||
Other
time deposits
|
24,850
|
32,825
|
|||||
Certificates
of deposit of $100,000 or more
|
19,021
|
35,306
|
|||||
Total
deposits
|
468,025
|
469,311
|
|||||
Overnight
borrowings
|
14,500
|
26,700
|
|||||
Accrued
interest payable
|
328
|
273
|
|||||
Other
liabilities and accrued expenses
|
3,940
|
3,703
|
|||||
Total
Liabilities
|
486,793
|
499,987
|
|||||
Stockholders’
equity:
|
|||||||
Common
stock, par value $0.01 per share:
|
|||||||
Authorized:
20,000,000 shares; 6,386,306 issued; 6,206,539 and 6,254,489
shares,
|
|||||||
outstanding
at December 31, 2005 and 2004, respectively
|
64
|
64
|
|||||
Surplus
|
21,631
|
21,462
|
|||||
Undivided
profits
|
31,813
|
27,856
|
|||||
Less:
Treasury stock at cost, 179,767 and 131,617 shares at December 31,
2005
and 2004, respectively
|
(4,285
|
)
|
(2,330
|
)
|
|||
Unearned
stock awards
|
(108
|
)
|
(121
|
)
|
|||
49,115
|
46,931
|
||||||
Accumulated
other comprehensive income (loss):
|
|||||||
Net
unrealized (loss) gain on securities, net of taxes of ($1,596) and
$267 at
December 31, 2005 and 2004,
|
|||||||
respectively
|
(2,376
|
)
|
403
|
||||
Net
minimum pension liability, net of taxes of $59 and $81 at December
31,
2005 and 2004, respectively
|
(88
|
)
|
(121
|
)
|
|||
Total
Stockholders’ Equity
|
46,651
|
47,213
|
|||||
Total
Liabilities and Stockholders’ Equity
|
$
|
533,444
|
$
|
547,200
|
Year
Ended December 31,
|
2005
|
2004
|
2003
|
|||||||
Interest
income:
|
||||||||||
Loans
(including fee income)
|
$
|
20,724
|
$
|
18,850
|
$
|
17,971
|
||||
Mortgage-backed
securities
|
4,160
|
4,137
|
4,012
|
|||||||
State
and municipal obligations
|
1,947
|
1,615
|
1,559
|
|||||||
U.S.
Treasury and government agency securities
|
1,520
|
2,187
|
2,285
|
|||||||
Federal
funds sold
|
265
|
98
|
74
|
|||||||
Other
securities
|
95
|
34
|
66
|
|||||||
Deposits
with banks
|
2
|
2
|
1
|
|||||||
Total
interest income
|
28,713
|
26,923
|
25,968
|
|||||||
Interest
expense:
|
||||||||||
Savings,
N.O.W. and money market deposits
|
3,022
|
1,331
|
1,478
|
|||||||
Certificates
of deposit of $100,000 or more
|
550
|
475
|
477
|
|||||||
Other
time deposits
|
470
|
457
|
597
|
|||||||
Other
borrowed money
|
205
|
55
|
5
|
|||||||
Federal
funds purchased
|
72
|
33
|
44
|
|||||||
Total
interest expense
|
4,319
|
2,351
|
2,601
|
|||||||
Net
interest income
|
24,394
|
24,572
|
23,367
|
|||||||
Provision
for loan losses
|
300
|
300
|
-
|
|||||||
Net
interest income after provision for loan losses
|
24,094
|
24,272
|
23,367
|
|||||||
Other
income:
|
||||||||||
Service
charges on deposit accounts
|
2,104
|
2,328
|
2,278
|
|||||||
Fees
for other customer services
|
1,484
|
1,341
|
1,185
|
|||||||
Title
fee income
|
1,293
|
866
|
342
|
|||||||
Net
securities gains
|
116
|
734
|
826
|
|||||||
Other
operating income
|
108
|
171
|
85
|
|||||||
Total
other income
|
5,105
|
5,440
|
4,716
|
|||||||
Other
expenses:
|
||||||||||
Salaries
and employee benefits
|
8,347
|
7,456
|
6,900
|
|||||||
Net
occupancy expense
|
1,234
|
1,283
|
1,226
|
|||||||
Furniture
and fixture expense
|
857
|
980
|
1,013
|
|||||||
Advertising
|
401
|
356
|
378
|
|||||||
Data/Item
processing
|
397
|
374
|
322
|
|||||||
Other
operating expenses
|
3,411
|
3,115
|
3,158
|
|||||||
Total
other expenses
|
14,647
|
13,564
|
12,997
|
|||||||
Income
before provision for income taxes
|
14,552
|
16,148
|
15,086
|
|||||||
Provision
for income taxes
|
4,929
|
5,771
|
5,488
|
|||||||
Net
income
|
$
|
9,623
|
$
|
10,377
|
$
|
9,598
|
||||
Basic
earnings per share
|
$
|
1.54
|
$
|
1.66
|
$
|
1.55
|
||||
Diluted
earnings per share
|
$
|
1.53
|
$
|
1.64
|
$
|
1.53
|
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, 2002
|
4,117,986
|
$
|
43
|
$
|
21,125
|
$
|
17,239
|
$
|
(2,524
|
)
|
$
|
4,088
|
$
|
39,971
|
||||||||||||||
Net
income
|
9,598
|
9,598
|
9,598
|
|||||||||||||||||||||||||
Stock
awards vested
|
4,872
|
42
|
81
|
$
|
40
|
163
|
||||||||||||||||||||||
Stock
awards granted
|
34
|
87
|
(121
|
)
|
-
|
|||||||||||||||||||||||
Exercise
of stock options, net of tax benefit
|
32,737
|
(7
|
)
|
38
|
447
|
478
|
||||||||||||||||||||||
Cash
dividends declared, $0.78 per share
|
(4,893
|
)
|
(4,893
|
)
|
||||||||||||||||||||||||
Other
comprehensive income, net of tax
|
||||||||||||||||||||||||||||
Unrealized
net losses in securities available for sale
|
(2,597
|
)
|
(2,597
|
)
|
(2,597
|
)
|
||||||||||||||||||||||
Minimum
pension liability adjustment
|
74
|
74
|
74
|
|||||||||||||||||||||||||
Comprehensive
Income
|
7,075
|
|||||||||||||||||||||||||||
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
|
||||||||||
(1)
Disclosure of reclassification amount:
|
||||||||||||||||||||||||||||
December
31,
|
2005
|
2004
|
2003
|
|||||||||||||||||||||||||
Comprehensive
Income Items:
|
||||||||||||||||||||||||||||
Unrealized
loss arising during the period, net of tax
|
||||||||||||||||||||||||||||
of
$1,820, $591 and $1,357 in 2005, 2004 and 2003
|
$
|
(2,708
|
)
|
$
|
(891
|
)
|
$
|
(2,098
|
)
|
|||||||||||||||||||
Less:
reclassification adjustment, net of taxes
|
||||||||||||||||||||||||||||
of
$46, $293, $327 in 2005, 2004 and 2003
|
||||||||||||||||||||||||||||
for
losses included in income
|
71
|
442
|
499
|
|||||||||||||||||||||||||
$
|
(2,779
|
)
|
$
|
(1,333
|
)
|
$
|
(2,597
|
)
|
Year
Ended December 31,
|
2005
|
2004
|
2003
|
|||||||
Operating
activities:
|
||||||||||
Net
Income
|
$
|
9,623
|
$
|
10,377
|
$
|
9,598
|
||||
Adjustments
to reconcile net income to net cash
|
||||||||||
provided
by operating activities:
|
||||||||||
Provision
for loan losses
|
300
|
300
|
-
|
|||||||
Depreciation
and amortization
|
847
|
950
|
956
|
|||||||
Amortization
and accretion, net
|
786
|
1,261
|
2,059
|
|||||||
Earned
or allocated expense of restricted stock awards
|
65
|
73
|
40
|
|||||||
SERP
expense
|
153
|
149
|
142
|
|||||||
Net
securities gains
|
(116
|
)
|
(734
|
)
|
(826
|
)
|
||||
(Increase)
decrease in accrued interest receivable
|
(155
|
)
|
(110
|
)
|
249
|
|||||
Benefit
(provision) for deferred income taxes
|
21
|
(179
|
)
|
(37
|
)
|
|||||
(Increase)
decrease in other assets
|
(986
|
)
|
1,118
|
(2,526
|
)
|
|||||
Increase
in accrued and other liabilities
|
405
|
436
|
243
|
|||||||
Net
cash provided by operating activities
|
10,943
|
13,641
|
9,898
|
|||||||
Investing
activities:
|
||||||||||
Purchases
of securities available for sale
|
(32,463
|
)
|
(96,157
|
)
|
(146,393
|
)
|
||||
Purchases
of securities held to maturity
|
(13,262
|
)
|
(21,213
|
)
|
(14,421
|
)
|
||||
Proceeds
from sales of securities available for sale
|
21,965
|
56,005
|
71,637
|
|||||||
Proceeds
from maturing securities available for sale
|
2,995
|
4,750
|
4,752
|
|||||||
Proceeds
from maturing securities held to maturity
|
24,463
|
14,396
|
11,022
|
|||||||
Proceeds
from principal payments on mortgage-backed securities
|
22,032
|
23,980
|
51,592
|
|||||||
Net
increase in loans
|
(6,235
|
)
|
(23,202
|
)
|
(24,950
|
)
|
||||
Purchases
of banking premises and equipment
|
(2,670
|
)
|
(3,144
|
)
|
(2,752
|
)
|
||||
Net
cash provided (used) by investing activities
|
16,825
|
(44,585
|
)
|
(49,513
|
)
|
|||||
Financing
activities:
|
||||||||||
Net
(decrease) increase in deposits
|
(1,286
|
)
|
12,165
|
50,750
|
||||||
(Decrease)
increase in other borrowings
|
(12,200
|
)
|
20,800
|
(6,400
|
)
|
|||||
Payment
for the purchase of Treasury stock
|
(2,134
|
)
|
(611
|
)
|
-
|
|||||
Net
proceeds from exercise of stock options
|
||||||||||
issued
pursuant to equity incentive plan
|
216
|
203
|
440
|
|||||||
Cash
dividends paid
|
(5,551
|
)
|
(5,790
|
)
|
(2,943
|
)
|
||||
Net
cash (used) provided by financing activities
|
(20,955
|
)
|
26,767
|
41,847
|
||||||
Increase
(decrease) in cash and cash equivalents
|
6,813
|
(4,177
|
)
|
2,232
|
||||||
Cash
and cash equivalents beginning of year
|
8,862
|
13,039
|
10,807
|
|||||||
Cash
and cash equivalents end of year
|
$
|
15,675
|
$
|
8,862
|
$
|
13,039
|
||||
Supplemental
Information-Cash Flows:
|
||||||||||
Cash
paid for:
|
||||||||||
Interest
|
$
|
4,264
|
$
|
2,344
|
$
|
2,726
|
||||
Income
taxes
|
$
|
5,023
|
$
|
5,336
|
$
|
5,501
|
||||
Noncash
investing and financing activities:
|
||||||||||
Dividends
declared and unpaid
|
$
|
1,428
|
$
|
1,313
|
$
|
2,609
|
Common
Stock
|
||||||||||
Shares
Issued
|
Shares
Issued and Outstanding
|
Treasury
Stock
|
||||||||
Balance
at December 31, 2003
|
4,257,597
|
4,155,595
|
102,002
|
|||||||
Stock
awards vested
|
5,040
|
(5,040
|
)
|
|||||||
Exercise
of stock options
|
21,417
|
(21,417
|
)
|
|||||||
Purchase
of Treasury stock
|
(3,000
|
)
|
3,000
|
|||||||
Effect
of three-for-two stock split
|
2,128,798
|
2,089,526
|
39,272
|
|||||||
Fractional
shares
|
(89
|
)
|
(89
|
)
|
||||||
Exercise
of stock options
|
3,000
|
(3,000
|
)
|
|||||||
Purchase
of Treasury stock
|
(17,000
|
)
|
17,000
|
|||||||
Balance
at December 31, 2004
|
6,386,306
|
6,254,489
|
131,817
|
|||||||
Stock
awards vested
|
6,155
|
(6,155
|
)
|
|||||||
Stock
awards granted
|
||||||||||
Stock
awards forfeited
|
||||||||||
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
|
For
the Year Ended
|
2005
|
2004
|
2003
|
||||||||||
(In
thousands, except per share amounts)
|
|||||||||||||
Net
Income:
|
As
Reported:
|
$
|
9,623
|
$
|
10,377
|
$
|
9,598
|
||||||
Pro
Forma:
|
9,606
|
10,332
|
9,514
|
||||||||||
Diluted
EPS:
|
As
Reported:
|
$
|
1.53
|
$
|
1.64
|
$
|
1.53
|
||||||
Pro
Forma:
|
1.53
|
1.64
|
1.52
|
||||||||||
Basic
EPS:
|
As
Reported:
|
$
|
1.54
|
$
|
1.66
|
$
|
1.55
|
||||||
Pro
Forma:
|
1.54
|
1.65
|
1.53
|
For
the Year Ended
|
2005
|
2004
|
2003
|
|||||||
Risk
free interest rate
|
3.66
|
%
|
3.02
|
%
|
3.10
|
%
|
||||
Expected
dividend yield
|
3.76
|
%
|
2.75
|
%
|
3.19
|
%
|
||||
Expected
volatility
|
21.3
|
%
|
23.5
|
%
|
44.4
|
%
|
December
31,
|
2005
|
2004
|
|||||||||||||||||||||||
(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
|
$
|
38,443
|
$
|
7
|
$
|
(788
|
)
|
$
|
37,662
|
$
|
53,736
|
$
|
519
|
$
|
(216
|
)
|
$
|
54,039
|
|||||||
State
and municipal obligations
|
51,392
|
387
|
(559
|
)
|
51,220
|
40,027
|
1,098
|
(81
|
)
|
41,044
|
|||||||||||||||
Mortgage-backed
securities
|
96,938
|
27
|
(3,046
|
)
|
93,919
|
107,609
|
483
|
(1,133
|
)
|
106,959
|
|||||||||||||||
Total
available for sale
|
186,773
|
421
|
(4,393
|
)
|
182,801
|
201,372
|
2,100
|
(1,430
|
)
|
202,042
|
|||||||||||||||
Restricted:
|
|||||||||||||||||||||||||
Federal
Reserve Bank Stock
|
36
|
-
|
-
|
36
|
36
|
-
|
-
|
36
|
|||||||||||||||||
Federal
Home Loan Bank Stock
|
1,341
|
-
|
-
|
1,341
|
1,943
|
-
|
-
|
1,943
|
|||||||||||||||||
Total
restricted
|
1,377
|
-
|
-
|
1,377
|
1,979
|
-
|
-
|
1,979
|
|||||||||||||||||
Held
to maturity:
|
|||||||||||||||||||||||||
State
and municipal obligations
|
10,012
|
-
|
(23
|
)
|
9,989
|
21,213
|
-
|
(82
|
)
|
21,131
|
|||||||||||||||
Total
held to maturity
|
10,012
|
-
|
(23
|
)
|
9,989
|
21,213
|
-
|
(82
|
)
|
21,131
|
|||||||||||||||
Total
debt and equity securities
|
$
|
198,162
|
$
|
421
|
$
|
(4,416
|
)
|
$
|
194,167
|
$
|
224,564
|
$
|
2,100
|
$
|
(1,512
|
)
|
$
|
225,152
|
December
31,
|
2005
|
2004
|
|||||||||||||||||||||||
(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
|
$
|
14,132
|
$
|
243
|
$
|
18,048
|
$
|
546
|
$
|
26,832
|
$
|
216
|
$
|
-
|
$
|
-
|
|||||||||
State
and municipal obligations
|
31,635
|
266
|
9,214
|
316
|
26,343
|
127
|
1,070
|
35
|
|||||||||||||||||
Mortgage-backed
securities
|
42,354
|
860
|
50,736
|
2,185
|
35,146
|
336
|
30,816
|
798
|
|||||||||||||||||
Total
temporarily impaired securities
|
$
|
88,121
|
$
|
1,369
|
$
|
77,998
|
$
|
3,047
|
$
|
88,321
|
$
|
679
|
$
|
31,886
|
$
|
833
|
December
31, 2005
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars
in thousands)
|
Within
|
After
One But
|
After
Five But
|
After
|
No
|
||||||||||||||||||||||||||||||||||||||||||||||
One
Year
|
Within
Five Years
|
Within
Ten Years
|
Ten
Years
|
Maturity
|
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
|
Yield
|
Fair
Value
Amount
|
Amortized
Cost
Amount
|
|||||||||||||||||||||||||||||||||||
Available
for sale:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
U.S.
Treasury and
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
government
agency
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
securities
|
$
|
394
|
$
|
401
|
3.42
|
%
|
$
|
37,268
|
$
|
38,042
|
5.64
|
%
|
$
|
-
|
$
|
-
|
-
|
%
|
$
|
-
|
$
|
-
|
-
|
%
|
$
|
-
|
$
|
-
|
-
|
%
|
$
|
37,662
|
$
|
38,443
|
|||||||||||||||||
Mortgage-backed
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
securities
|
-
|
-
|
-
|
11,542
|
11,968
|
5.65
|
16,563
|
17,027
|
6.38
|
65,814
|
67,943
|
6.62
|
-
|
-
|
-
|
93,919
|
96,938
|
||||||||||||||||||||||||||||||||||
State
and municipal
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
obligations
|
5,318
|
5,281
|
6.84
|
21,469
|
21,564
|
4.98
|
15,269
|
15,315
|
5.38
|
9,164
|
9,232
|
5.69
|
-
|
-
|
-
|
51,220
|
51,392
|
||||||||||||||||||||||||||||||||||
Total
available for sale
|
5,712
|
5,682
|
6.60
|
70,279
|
71,574
|
5.44
|
31,832
|
32,342
|
5.91
|
74,978
|
77,175
|
6.50
|
-
|
-
|
-
|
182,801
|
186,773
|
||||||||||||||||||||||||||||||||||
Restricted
securities:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
Federal
Reserve Bank Stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
36
|
36
|
9.00
|
36
|
36
|
||||||||||||||||||||||||||||||||||
Federal
Home Loan
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
Bank
Stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,341
|
1,341
|
6.87
|
1,341
|
1,341
|
||||||||||||||||||||||||||||||||||
Total
restricted
|
-
|
- | - | - | - | - | - | - | - | - | - | - |
1,377
|
1,377
|
6.93
|
1,377
|
1,377
|
||||||||||||||||||||||||||||||||||
Held
to maturity:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
State
and municipal
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
obligations
|
9,989
|
10,012
|
4.53
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
9,989
|
10,012
|
||||||||||||||||||||||||||||||||||
Total
held to maturity
|
9,989
|
10,012
|
4.53
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
9,989
|
10,012
|
||||||||||||||||||||||||||||||||||
Total
debt and equity
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
securities
|
$
|
15,701
|
$
|
15,694
|
5.28
|
%
|
$
|
70,279
|
$
|
71,574
|
5.44
|
%
|
$
|
31,832
|
$
|
32,342
|
5.91
|
%
|
$
|
74,978
|
$
|
77,175
|
6.50
|
%
|
$
|
1,377
|
$
|
1,377
|
6.93
|
%
|
$
|
194,167
|
$
|
198,162
|
December
31,
|
2005
|
2004
|
|||||
(In
thousands)
|
|||||||
Real
estate mortgage loans
|
$
|
242,928
|
$
|
236,812
|
|||
Commercial,
financial, and agricultural loans
|
31,644
|
34,342
|
|||||
Installment/consumer
loans
|
9,827
|
6,685
|
|||||
Real
estate construction loans
|
17,960
|
18,452
|
|||||
Total
loans
|
302,359
|
296,291
|
|||||
Unearned
income
|
(95
|
)
|
(157
|
)
|
|||
302,264
|
296,134
|
||||||
Allowance
for loan losses
|
(2,383
|
)
|
(2,188
|
)
|
|||
Net
loans
|
$
|
299,881
|
$
|
293,946
|
December
31,
|
2005
|
2004
|
2003
|
|||||||
(In
thousands)
|
||||||||||
Allowance
for loan losses
|
||||||||||
balance
at beginning of period
|
$
|
2,188
|
$
|
2,144
|
$
|
2,294
|
||||
Charge-offs:
|
||||||||||
Real
estate mortgage loans
|
7
|
3
|
38
|
|||||||
Commercial,
financial and agricultural loans
|
153
|
302
|
163
|
|||||||
Installment/consumer
loans
|
129
|
65
|
148
|
|||||||
Total
|
289
|
370
|
349
|
|||||||
Recoveries:
|
||||||||||
Real
estate mortgage loans
|
17
|
23
|
13
|
|||||||
Real
estate construction loans
|
100
|
-
|
-
|
|||||||
Commercial,
financial and agricultural loans
|
37
|
61
|
90
|
|||||||
Installment/consumer
loans
|
30
|
30
|
96
|
|||||||
Total
|
184
|
114
|
199
|
|||||||
Net
(charge-offs) recoveries
|
(105
|
)
|
(256
|
)
|
(150
|
)
|
||||
Provision
for loan losses
|
||||||||||
charged
to operations
|
300
|
300
|
-
|
|||||||
Balance
at end of period
|
$
|
2,383
|
$
|
2,188
|
$
|
2,144
|
Balance
Outstanding
|
||||
(In
thousands)
|
||||
Balance
at December 31, 2004
|
$
|
1,220
|
||
New
loans
|
-
|
|||
Effective
change in related parties
|
56
|
|||
Advances
|
682
|
|||
Repayments
|
(170
|
)
|
||
Balance
at December 31, 2005
|
$
|
1,788
|
December
31,
|
2005
|
2004
|
|||||
(In
thousands)
|
|||||||
Land
|
$
|
6,142
|
$
|
6,142
|
|||
Construction
in progress
|
426
|
87
|
|||||
Building
and improvements
|
8,632
|
7,036
|
|||||
Furniture
and fixtures
|
6,797
|
6,110
|
|||||
Leasehold
improvements
|
1,234
|
1,226
|
|||||
23,231
|
20,601
|
||||||
Less:
accumulated
|
|||||||
depreciation
and amortization
|
(7,591
|
)
|
(6,784
|
)
|
|||
$
|
15,640
|
$
|
13,817
|
Less
than $100,000
|
$100,000
or Greater
|
Total
|
||||||||
(In
thousands)
|
||||||||||
3
months or less
|
$
|
9,515
|
$
|
11,284
|
$
|
20,799
|
||||
Over
3 thru 6 months
|
5,327
|
2,469
|
7,796
|
|||||||
Over
6 thru 12 months
|
5,700
|
2,762
|
8,462
|
|||||||
Over
12 months thru 24 months
|
2,727
|
1,661
|
4,388
|
|||||||
Over
24 months thru 36 months
|
1,267
|
641
|
1,908
|
|||||||
Over
36 months thru 48 months
|
312
|
204
|
516
|
|||||||
Over
48 months thru 60 months
|
-
|
-
|
-
|
|||||||
Over
60 months
|
2
|
-
|
2
|
|||||||
Total
|
$
|
24,850
|
$
|
19,021
|
$
|
43,871
|
Year
Ended December 31,
|
2005
|
2004
|
2003
|
|||||||
(In
thousands)
|
||||||||||
Current:
|
||||||||||
Federal
|
$
|
4,087
|
$
|
4,453
|
$
|
4,361
|
||||
State
|
863
|
1,139
|
1,090
|
|||||||
4,950
|
5,592
|
5,451
|
||||||||
Deferred:
|
||||||||||
Federal
|
(22
|
)
|
152
|
30
|
||||||
State
|
1
|
27
|
7
|
|||||||
(21
|
)
|
179
|
37
|
|||||||
Total
|
$
|
4,929
|
$
|
5,771
|
$
|
5,488
|
Year
Ended December 31,
|
2005
|
2004
|
2003
|
||||||||||||||||
(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
|
$
|
4,984
|
34
|
%
|
$
|
5,531
|
34
|
%
|
$
|
5,280
|
35
|
%
|
|||||||
Tax
exempt interest
|
(665
|
)
|
(4
|
)
|
(552
|
)
|
(4
|
)
|
(544
|
)
|
(4
|
)
|
|||||||
State
taxes, net of Federal income tax benefit
|
568
|
5
|
767
|
5
|
721
|
5
|
|||||||||||||
Other
|
42
|
1
|
25
|
1
|
31
|
-
|
|||||||||||||
Provision
for income taxes
|
$
|
4,929
|
36
|
%
|
$
|
5,771
|
36
|
%
|
$
|
5,488
|
36
|
%
|
December
31,
|
2005
|
2004
|
|||||
(In
thousands)
|
|||||||
Deferred
tax assets:
|
|||||||
Allowance
for loan losses
|
$
|
1,026
|
$
|
924
|
|||
Depreciation
|
15
|
-
|
|||||
Total
|
1,041
|
924
|
|||||
Deferred
tax liabilities:
|
|||||||
Pension
expense
|
(211
|
)
|
(184
|
)
|
|||
Other
|
(203
|
)
|
(78
|
)
|
|||
Depreciation
|
-
|
(57
|
)
|
||||
Total
|
(414
|
)
|
(319
|
)
|
|||
Total
before other comprehensive income
|
627
|
605
|
|||||
SFAS
No. 115 deferred tax asset (liability)
|
1,596
|
(267
|
)
|
||||
Minimum
pension liability adjustment
|
59
|
81
|
|||||
Net
deferred tax asset
|
$
|
2,282
|
$
|
419
|
Pension
Benefits
|
SERP
Benefits
|
||||||||||||
At
December 31,
|
2005
|
2004
|
2005
|
2004
|
|||||||||
(In
thousands)
|
|||||||||||||
Change
in benefit obligation
|
|
||||||||||||
Benefit
obligation at beginning of year
|
$
|
3,776
|
$
|
3,382
|
$
|
1,453
|
$
|
1,016
|
|||||
Service
cost
|
317
|
277
|
87
|
63
|
|||||||||
Expenses
|
(40
|
)
|
(35
|
)
|
-
|
-
|
|||||||
Interest
cost
|
223
|
200
|
71
|
52
|
|||||||||
Benefits
paid
|
(130
|
)
|
(123
|
)
|
-
|
-
|
|||||||
Additional
prior service cost
|
-
|
-
|
-
|
-
|
|||||||||
Assumption
changes and other
|
485
|
75
|
(430
|
)
|
322
|
||||||||
Benefit
obligation at end of year
|
$
|
4,631
|
$
|
3,776
|
$
|
1,181
|
$
|
1,453
|
|||||
Change
in plan assets, at fair value
|
|||||||||||||
Plan
assets at beginning of year
|
$
|
3,759
|
$
|
2,508
|
-
|
-
|
|||||||
Actual
return on plan assets
|
445
|
295
|
-
|
-
|
|||||||||
Employer
contribution
|
-
|
1,114
|
-
|
-
|
|||||||||
Benefit
paid
|
(130
|
)
|
(123
|
)
|
-
|
-
|
|||||||
Expenses
|
(40
|
)
|
(35
|
)
|
-
|
-
|
|||||||
Plan
assets at end of year
|
$
|
4,034
|
$
|
3,759
|
-
|
-
|
|||||||
Funded
status (plan assets less benefit obligations)
|
$
|
(596
|
)
|
$
|
(16
|
)
|
$
|
(1,181
|
)
|
$
|
(1,453
|
)
|
|
Unrecognized
net actuarial loss
|
1,107
|
795
|
78
|
531
|
|||||||||
Unrecognized
prior service cost
|
137
|
147
|
-
|
-
|
|||||||||
Unrecognized
transition asset
|
(3
|
)
|
(12
|
)
|
399
|
426
|
|||||||
Minimum
additional pension liability
|
-
|
-
|
(147
|
)
|
(202
|
)
|
|||||||
Prepaid
benefit (accrued) cost
|
$
|
645
|
$
|
914
|
$
|
(851
|
)
|
$
|
(698
|
)
|
Pension
Benefits
|
SERP
Benefits
|
||||||||||||
At
December 31,
|
2005
|
2004
|
2005
|
2004
|
|||||||||
(In
thousands)
|
|||||||||||||
Prepaid
benefit cost
|
$
|
645
|
$
|
914
|
$
|
-
|
$
|
-
|
|||||
Accrued
benefit cost
|
-
|
-
|
(704
|
)
|
(495
|
)
|
|||||||
Minimum
additional pension liability
|
-
|
-
|
(147
|
)
|
(202
|
)
|
|||||||
Other
|
-
|
-
|
-
|
-
|
|||||||||
Net
amount recognized
|
$
|
645
|
$
|
914
|
$
|
(851
|
)
|
$
|
(697
|
)
|
Pension
Benefits
|
SERP
Benefits
|
||||||||||||||||||
At
December 31,
|
2005
|
2004
|
2003
|
2005
|
2004
|
2003
|
|||||||||||||
(In
thousands)
|
|||||||||||||||||||
Components
of net periodic benefit cost
|
|||||||||||||||||||
Service
cost
|
$
|
317
|
$
|
277
|
$
|
265
|
$
|
87
|
$
|
63
|
$
|
59
|
|||||||
Interest
cost
|
223
|
200
|
175
|
71
|
52
|
46
|
|||||||||||||
Expected
return on plan assets
|
(296
|
)
|
(208
|
)
|
(185
|
)
|
-
|
-
|
-
|
||||||||||
Amortization
of net loss
|
25
|
25
|
29
|
-
|
23
|
7
|
|||||||||||||
Amortization
of unrecognized prior service cost
|
10
|
9
|
9
|
-
|
-
|
-
|
|||||||||||||
Amortization
of unrecognized transition (asset) obligation
|
(9
|
)
|
(8
|
)
|
(8
|
)
|
28
|
28
|
28
|
||||||||||
Net
periodic benefit cost
|
$
|
290
|
$
|
295
|
$
|
285
|
$
|
186
|
$
|
166
|
$
|
140
|
Pension
Plan
|
SERP
|
||||||||||||
At
December 31,
|
2005
|
2004
|
2005
|
2004
|
|||||||||
(In
thousands)
|
|||||||||||||
Net
minimum liability included in other comprehensive
|
|||||||||||||
income
|
$
|
-
|
$
|
-
|
$
|
88
|
$
|
121
|
|||||
Accumulated
benefit obligation
|
|
3,463
|
|
2,907
|
|
851
|
|
697
|
|||||
Expected
contributions in 2006
|
|
666
|
-
|
|
148
|
- |
Year
|
Pension
Payments
|
|||
(In
thousands)
|
||||
2006
|
$
|
137
|
||
2007
|
138
|
|||
2008
|
137
|
|||
2009
|
204
|
|||
2010
|
205
|
|||
2011-2015
|
1,110
|
Plan
Assets at September 30,
|
2005
|
2004
|
|||||
|
|||||||
Asset
Category:
|
|||||||
Equity
Securities
|
58.8
|
%
|
64.7
|
%
|
|||
Debt
Securities
|
41.2
|
34.9
|
|||||
Other
|
-
|
0.4
|
|||||
Total
|
100.0
|
%
|
100.0
|
%
|
Pension
Benefits
|
SERP
Benefits
|
||||||||||||||||||
At
December 31,
|
2005
|
2004
|
2003
|
2005
|
2004
|
2003
|
|||||||||||||
Weighted
Average Assumptions Used to Determine Benefit
Obligations
|
|||||||||||||||||||
Discount
rate
|
5.50
|
%
|
6.00
|
%
|
6.00
|
%
|
4.68
|
%
|
4.90
|
%
|
5.14
|
%
|
|||||||
Rate
of compensation increase
|
4.50
|
4.00
|
4.00
|
5.00
|
4.00
|
4.00
|
|||||||||||||
Expected
long-term rate of return
|
8.00
|
8.00
|
8.00
|
-
|
-
|
-
|
|||||||||||||
Weighted
Average Assumptions Used to Determine Net Periodic Benefit Cost
(Income)
|
|||||||||||||||||||
Discount
rate
|
6.00
|
%
|
6.00
|
%
|
6.25
|
%
|
4.90
|
%
|
5.14
|
%
|
5.14
|
%
|
|||||||
Rate
of compensation increase
|
4.00
|
4.00
|
4.00
|
4.00
|
4.00
|
4.00
|
|||||||||||||
Expected
long-term rate of return
|
8.00
|
8.00
|
8.50
|
-
|
-
|
-
|
For
the Year Ended December 31,
|
2005
|
2004
|
2003
|
||||||||||||||||
|
|||||||||||||||||||
|
Weighted |
Weighted
|
Weighted
|
||||||||||||||||
|
Number |
Average
|
Number
|
Average
|
Number
|
Average
|
|||||||||||||
|
of |
Exercise
|
of
|
Exercise
|
of
|
Exercise
|
|||||||||||||
|
Options |
Price
|
Options
|
Price
|
Options
|
Price
|
|||||||||||||
Outstanding,
beginning of the year
|
102,429
|
$
|
15.10
|
136,725
|
$
|
13.22
|
163,575
|
$
|
11.85
|
||||||||||
Granted
|
6,954
|
$
|
28.85
|
14,845
|
$
|
24.00
|
26,550
|
$
|
15.47
|
||||||||||
Exercised
|
(26,276
|
)
|
$
|
13.09
|
(49,141
|
)
|
$
|
12.54
|
(53,400
|
)
|
$
|
10.11
|
|||||||
Forfeited
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Outstanding
and exercisable, end of the year
|
83,107
|
$
|
16.88
|
102,429
|
$
|
15.10
|
136,725
|
$
|
13.22
|
||||||||||
Weighted
average fair value of options granted
|
$
|
4.39
|
$
|
4.45
|
$
|
5.00
|
|||||||||||||
Weighted
average remaining contractual life
|
4.79
years
|
||||||||||||||||||
|
Number of | ||||||||||||||||||
Range
of Exercise Prices
|
Shares
|
Price
|
|||||||||||||||||
8,000
|
$
|
9.78-$11.00
|
|||||||||||||||||
11,025
|
$
|
12.53
|
|||||||||||||||||
25,933
|
$
|
13.17-14.67
|
|||||||||||||||||
17,100
|
$
|
15.47
|
|||||||||||||||||
18,049
|
$
|
24.00-$30.60
|
For
the Year Ended December 31,
|
2005
|
2004
|
2003
|
|||||||
(In
thousands, except per share data)
|
||||||||||
Net
income
|
$
|
9,623
|
$
|
10,377
|
$
|
9,598
|
||||
Common
equivalent shares:
|
||||||||||
Weighted
average common shares outstanding
|
6,241
|
6,255
|
6,197
|
|||||||
Weighted
average common equivalent shares
|
34
|
75
|
57
|
|||||||
Weighted
average common and common equivalent shares
|
6,275
|
6,330
|
6,254
|
|||||||
Basic
earnings per share
|
$
|
1.54
|
$
|
1.66
|
$
|
1.55
|
||||
Diluted
earnings per share
|
$
|
1.53
|
$
|
1.64
|
$
|
1.53
|
December
31, 2005
|
||||
(In
thousands)
|
||||
2006
|
$
|
493
|
||
2007
|
368
|
|||
2008
|
217
|
|||
2009
|
197
|
|||
2010
|
97
|
|||
Thereafter
|
1,052
|
|||
Total
minimum rentals
|
$
|
2,424
|
December
31,
|
2005
|
2004
|
|||||
(In
thousands)
|
|||||||
Standby
letters of credit
|
$
|
1,955
|
$
|
1,803
|
|||
Loan
commitments outstanding (1)
|
11,839
|
6,090
|
|||||
Unused
equity lines
|
42,432
|
37,233
|
|||||
Unused
construction lines
|
1,324
|
10,123
|
|||||
Unused
lines of credit
|
23,154
|
21,751
|
|||||
Unused
overdraft lines
|
12,268
|
11,408
|
|||||
Total
commitments outstanding
|
$
|
92,972
|
$
|
88,408
|
(1)
|
Of
the $11,839,000 of loan commitments outstanding, $987,000 are
|
fixed
rate commitments and $10,852,000 are variable rate
commitments.
|
December
31,
|
2005
|
2004
|
|||||||||||
(In
thousands)
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||
|
Amount |
Value
|
Amount
|
Value
|
|||||||||
Financial
Assets:
|
|||||||||||||
Cash
and due from banks
|
$
|
15,649
|
$
|
15,649
|
$
|
8,744
|
$
|
8,744
|
|||||
Interest
bearing deposits with banks
|
26
|
26
|
118
|
118
|
|||||||||
Securities
available for sale
|
182,801
|
182,801
|
202,042
|
202,042
|
|||||||||
Securities
restricted
|
1,377
|
1,377
|
1,979
|
1,979
|
|||||||||
Securities
held to maturity
|
10,012
|
9,989
|
21,213
|
21,131
|
|||||||||
Loans
|
299,881
|
305,096
|
293,946
|
294,640
|
|||||||||
Accrued
interest receivable
|
2,624
|
2,624
|
2,469
|
2,469
|
|||||||||
Financial
Liabilities:
|
|||||||||||||
Demand
and other deposits
|
468,025
|
467,544
|
469,311
|
469,211
|
|||||||||
Overnight
borrowings
|
14,500
|
14,500
|
26,700
|
26,700
|
|||||||||
Accrued
interest payable
|
328
|
328
|
273
|
273
|
|||||||||
Off-Balance-Sheet
Liabilities
|
|||||||||||||
Commitments
to extend credit
|
11,839
|
-
|
6,090
|
-
|
Bridge
Bancorp, Inc. (Consolidated)
|
|||||||||||||||||||
As
of December 31,
|
2005
|
||||||||||||||||||
(Dollars
in thousands)
|
|
To
Be Well
Capitalized
Under
Prompt
Corrective
Action
Provisions
|
|||||||||||||||||
For
Capital
Adequacy
Purposes
|
|||||||||||||||||||
|
|||||||||||||||||||
Actual
|
|||||||||||||||||||
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
|
As
of December 31,
|
2004
|
||||||||||||||||||
(Dollars
in thousands)
|
|
To
Be Well
Capitalized
Under
Prompt
Corrective
Action
Provisions
|
|||||||||||||||||
For
Capital
Adequacy
Purposes
|
|||||||||||||||||||
|
|||||||||||||||||||
Actual
|
|||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||
Total
Capital (to risk weighted assets)
|
$
|
48,998
|
13.5
|
%
|
$
|
28,940
|
>8.0
|
%
|
n/a
|
n/a
|
|||||||||
Tier
1 Capital (to risk weighted assets)
|
46,649
|
12.9
|
%
|
14,470
|
>4.0
|
%
|
n/a
|
n/a
|
|||||||||||
Tier
1 Capital (to average assets)
|
46,649
|
8.3
|
%
|
22,468
|
>4.0
|
%
|
n/a
|
n/a
|
Bridgehampton
National Bank
|
|||||||||||||||||||
As
of December 31,
|
2005
|
||||||||||||||||||
(Dollars
in thousands)
|
|
To
Be Well
Capitalized
Under
Prompt
Corrective
Action
Provisions
|
|||||||||||||||||
For
Capital
Adequacy
Purposes
|
|||||||||||||||||||
|
|||||||||||||||||||
Actual
|
|||||||||||||||||||
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
|
%
|
As
of December 31,
|
2004
|
||||||||||||||||||
(Dollars
in thousands)
|
|
To
Be Well
Capitalized
Under
Prompt
Corrective
Action
Provisions
|
|||||||||||||||||
For
Capital
Adequacy
Purposes
|
|||||||||||||||||||
|
|||||||||||||||||||
Actual
|
|||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||
Total
Capital (to risk weighted assets)
|
$
|
47,773
|
13.2
|
%
|
$
|
28,924
|
>8.0
|
%
|
$
|
36,154
|
>10.0
|
%
|
|||||||
Tier
1 Capital (to risk weighted assets)
|
45,585
|
12.6
|
%
|
14,462
|
>4.0
|
%
|
21,693
|
>
6.0
|
%
|
||||||||||
Tier
1 Capital (to average assets)
|
45,585
|
8.1
|
%
|
22,512
|
>4.0
|
%
|
28,140
|
>
5.0
|
%
|
December
31,
|
2005
|
2004
|
|||||
(In
thousands, except share data)
|
|||||||
ASSETS
|
|||||||
Cash
and cash equivalents
|
$
|
80
|
$
|
1,024
|
|||
Dividend
receivable
|
1,441
|
1,339
|
|||||
Other
assets
|
82
|
201
|
|||||
Investment
in the Bank
|
46,489
|
45,988
|
|||||
Total
Assets
|
$
|
48,092
|
$
|
48,552
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Liabilities
|
|||||||
Dividends
payable
|
$
|
1,428
|
$
|
1,313
|
|||
Other
liabilities
|
13
|
26
|
|||||
Total
Liabilities
|
1,441
|
1,339
|
|||||
Stockholders’
Equity
|
50,936
|
49,543
|
|||||
Treasury
stock at cost, 179,767 and 131,817 shares at
|
|||||||
December
31, 2005 and 2004, respectively
|
(4,285
|
)
|
(2,330
|
)
|
|||
Total
Stockholders’ Equity
|
46,651
|
47,213
|
|||||
Total
Liabilities and Stockholders’ Equity
|
$
|
48,092
|
$
|
48,552
|
Year
Ended December 31,
|
2005
|
2004
|
2003
|
|||||||
(In
thousands)
|
||||||||||
Dividend
income from the Bank
|
$
|
6,390
|
$
|
5,104
|
$
|
4,893
|
||||
Other
operating expenses
|
1
|
-
|
1
|
|||||||
Income
before income taxes and equity in
|
||||||||||
undistributed
earnings of the Bank
|
6,389
|
5,104
|
4,892
|
|||||||
Income
tax provision
|
-
|
-
|
-
|
|||||||
Income
before equity in undistributed
|
||||||||||
earnings
of the Bank
|
6,389
|
5,104
|
4,892
|
|||||||
Equity
in undistributed earnings of the Bank
|
3,234
|
5,273
|
4,706
|
|||||||
Net
income
|
$
|
9,623
|
$
|
10,377
|
$
|
9,598
|
Year
Ended December 31,
|
2005
|
2004
|
2003
|
|||||||
(In
thousands)
|
||||||||||
Operating
Activities:
|
||||||||||
Net
income
|
$
|
9,623
|
$
|
10,377
|
$
|
9,598
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||
Equity
in undistributed earnings of the Bank
|
(3,234
|
)
|
(5,273
|
)
|
(4,706
|
)
|
||||
Income
tax benefit from exercise of employee stock options
|
16
|
7
|
38
|
|||||||
Decrease
(increase) in other assets
|
109
|
1,432
|
(2,043
|
)
|
||||||
Increase
(decrease) in other liabilities
|
11
|
(5
|
)
|
166
|
||||||
Net
cash provided by operating activities
|
6,525
|
6,538
|
3,053
|
|||||||
Cash
flows used by financing activities:
|
||||||||||
Net
proceeds from issuance of common stock upon exercise of stock
options
|
216
|
203
|
440
|
|||||||
Payment
for the purchase of treasury stock
|
(2,134
|
)
|
(611
|
)
|
-
|
|||||
Dividends
paid
|
(5,551
|
)
|
(5,790
|
)
|
(2,943
|
)
|
||||
Net
cash used by financing activities
|
(7,469
|
)
|
(6,198
|
)
|
(2,503
|
)
|
||||
Net
increase in cash and cash equivalents
|
(944
|
)
|
340
|
550
|
||||||
Cash
and cash equivalents at beginning of year
|
1,024
|
684
|
134
|
|||||||
Cash
and cash equivalents at end of year
|
$
|
80
|
$
|
1,024
|
$
|
684
|
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
|
|||||
|
|||||||||||||
2004
Quarter Ended,
|
March
31,
|
June
30,
|
September
30,
|
December
31,
|
|||||||||
(In
thousands, except per share amounts)
|
|||||||||||||
Interest
income
|
$
|
6,443
|
$
|
6,651
|
$
|
6,955
|
$
|
6,874
|
|||||
Interest
expense
|
539
|
563
|
600
|
649
|
|||||||||
Net
interest income
|
5,904
|
6,088
|
6,355
|
6,225
|
|||||||||
Provision
for loan losses
|
-
|
50
|
100
|
150
|
|||||||||
Net
interest income after provision for loan losses
|
5,904
|
6,038
|
6,255
|
6,075
|
|||||||||
Other
income
|
1,591
|
1,215
|
1,284
|
1,350
|
|||||||||
Other
expenses
|
3,403
|
3,296
|
3,383
|
3,482
|
|||||||||
Income
before income taxes
|
4,092
|
3,957
|
4,156
|
3,943
|
|||||||||
Provision
for income taxes
|
1,467
|
1,415
|
1,493
|
1,396
|
|||||||||
Net
income
|
$
|
2,625
|
$
|
2,542
|
$
|
2,663
|
$
|
2,547
|
|||||
Basic
earnings per share
|
$
|
0.42
|
$
|
0.41
|
$
|
0.43
|
$
|
0.41
|
|||||
Diluted
earnings per share
|
$
|
0.41
|
$
|
0.40
|
$
|
0.42
|
$
|
0.41
|
Amounts
have been restated for a three-for-two stock split, in the form of
a stock
dividend, effective July 9, 2004.
|
/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
|
|||
47
|
|||
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 52.
|
|||
BRIDGE
BANCORP, INC.
|
|
Registrant
|
|
March
15, 2006
|
/s/
Thomas J. Tobin
|
Thomas
J. Tobin
|
|
President
and Chief Executive Officer
|
|
March
15, 2006
|
/s/
Janet T. Verneuille
|
Janet
T. Verneuille,
|
|
Senior
Vice President, Chief Financial Officer
|
|
and
Treasurer
|
|
March
15, 2006
|
/s/
Raymond Wesnofske
|
,Director
|
Raymond
Wesnofske
|
||
March
15, 2006
|
/s/
Thomas J. Tobin
|
,Director
|
Thomas
J. Tobin
|
||
March
15, 2006
|
/s/
Thomas E. Halsey
|
,Director
|
Thomas
E. Halsey
|
||
March
15, 2006
|
/s/
Marcia Z. Hefter
|
,Director
|
Marcia
Z. Hefter
|
||
March
15, 2006
|
/s/
R. Timothy Maran
|
,Director
|
R.
Timothy Maran
|
||
March
15, 2006
|
/s/
Charles I. Massoud
|
,Director
|
Charles
I. Massoud
|
||
March
15, 2006
|
/s/
Howard H. Nolan
|
,Director
|
Howard
H. Nolan
|
||
March
15, 2006
|
/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)
|
*
|
10.5
|
Equity
Incentive Plan (incorporated by reference to Registrant’s Form 14A, File
No. 0-18546, filed March 9, 2001)
|
*
|
23
|
||
31.1
|
||
31.2
|
||
32.1
|