COMMUNITY
PARTNERS BANCORP
|
(Exact
Name of Registrant as Specified in Its
Charter)
|
New
Jersey
|
20-3700861
|
|
(State
or Other Jurisdiction of
Incorporation or
Organization)
|
I.R.S.
Employer Identification Number)
|
1250
Highway 35 South, Middletown, NJ 07748
|
||
(Address
of Principal Executive Offices, including Zip Code)
|
(732)
706-9009
|
||
(Registrant’s
telephone number, including area code)
|
||
Securities
registered pursuant to Section 12(b) of the Act:
|
Title
of each class
|
Name
of each exchange on which registered
|
||
Common
Stock, no par value
|
The
NASDAQ Stock Market LLC
|
||
Securities
registered pursuant to Section 12(g) of the Act: None
|
Large
accelerated filer
|
o |
Accelerated
filer
|
o |
Non-accelerated
filer
(Do
not check if a smaller reporting company)
|
o |
Smaller
reporting company
|
x |
PART I | ||
Item
1.
|
1
|
|
Item
1A.
|
17
|
|
Item
1B.
|
22
|
|
Item
2.
|
23
|
|
Item
3.
|
24
|
|
Item
4.
|
24
|
|
PART
II
|
||
Item
5.
|
24
|
|
Item
6.
|
24
|
|
Item
7.
|
25
|
|
Item
7A.
|
47
|
|
Item
8.
|
47
|
|
Item
9.
|
47
|
|
Item
9A(T).
|
47
|
|
Item
9B.
|
48
|
|
PART
III
|
||
Item
10.
|
48
|
|
Item
11.
|
48
|
|
Item
12.
|
49
|
|
|
||
Item
13.
|
49
|
|
Item
14.
|
49
|
|
PART
IV
|
||
Item
15.
|
50
|
|
51
|
·
|
No golden parachute
payments. “Golden parachute payment” under the TARP Capital
Purchase Program means a severance payment resulting from involuntary
termination of employment, or from bankruptcy of the employer, that
exceeds three times the terminated employee’s average annual base salary
over the five years prior to termination. Our senior executive officers
have agreed to forego all golden parachute payments for as long as two
conditions remain true: They remain “senior executive officers” (CEO and
the next two highest-paid executive officers), and the Treasury continues
to hold our equity or debt securities we issued to it under the TARP
Capital Purchase Program (the period during which the Treasury holds those
securities is the “TARP Capital Purchase Program Covered
Period.”).
|
·
|
Recovery of EIP Awards and
Incentive Compensation if Based on Certain Material Inaccuracies.
Our senior executive officers have also agreed to a “clawback provision,”
which means that we can recover incentive compensation paid during the
TARP Capital Purchase Program Covered Period that is later found to have
been based on materially inaccurate financial statements or other
materially inaccurate measurements of
performance.
|
·
|
No Compensation Arrangements
That Encourage Excessive Risks. During the TARP Capital Purchase
Program Covered Period, we are not allowed to enter into compensation
arrangements that encourage senior executive officers to take “unnecessary
and excessive risks that threaten the value” of our Company. To
make sure this does not happen, the Company’s Compensation Committee is
required to meet at least once a year with our senior risk officers to
review our executive compensation arrangements in the light of our risk
management policies and practices. Our senior executive officers’ written
agreements include their obligation to execute whatever documents we may
require in order to make any changes in compensation arrangements
resulting from the Compensation Committee’s
review.
|
·
|
Limit on Federal Income Tax
Deductions. During the TARP Capital Purchase Program Covered
Period, we are not allowed to take federal income tax deductions for
compensation paid to senior executive officers in excess of $500,000 per
year, with certain exceptions that do not apply to our senior executive
officers.
|
·
|
No severance payments.
Under the Stimulus Act “golden parachutes” were redefined as any severance
payment resulting from involuntary termination of employment, or from
bankruptcy of the employer, except for payments for services performed or
benefits accrued. Consequently under the Stimulus Act the Company is
prohibited from making any severance payment to our “senior executive
officers” (defined in the Stimulus Act as the CEO and the next two
highest-paid executive officers) and our next five most highly compensated
employees during the TARP Capital Purchase Program Covered
Period.
|
·
|
Recovery of Incentive
Compensation if Based on Certain Material Inaccuracies. The
Stimulus Act also contains the “clawback provision” discussed above but
extends its application to any bonus awards and other incentive
compensation paid to any of our senior executive officers or the next 20
most highly compensated employees during the TARP Capital Purchase Program
Covered Period that is later found to have been based on materially
inaccurate financial statements or other materially inaccurate
measurements of performance.
|
·
|
No Compensation Arrangements
That Encourage Earnings Manipulation. Under the Stimulus Act,
during the TARP Capital Purchase Program Covered Period, we are not
allowed to enter into compensation arrangements that encourage
manipulation of the reported earnings of the Company to enhance the
compensation of any of our
employees.
|
·
|
Limit on Incentive
Compensation. The Stimulus Act contains a provision that prohibits
the payment or accrual of any bonus, retention award or incentive
compensation to the Company’s most highly compensated employee during the
TARP Capital Purchase Program Covered Period other than awards of
long-term restricted stock that (i) do not fully vest during the TARP
Capital Purchase Program Covered Period, (ii) have a value not greater
than one-third of the total annual compensation of the awardee and (iii)
are subject to such other restrictions as determined by the Secretary of
the Treasury. We do not know whether the award of incentive stock options
are covered by this prohibition. The prohibition on bonus, incentive
compensation and retention awards does not preclude payments required
under written employment contracts entered into on or prior to February
11, 2009.
|
·
|
Compensation Committee
Functions. The Stimulus Act requires that our Compensation
Committee be comprised solely of independent directors and that it meet at
least semiannually to discuss and evaluate our employee compensation plans
in light of an assessment of any risk posed to us from such compensation
plans.
|
·
|
Compliance
Certifications. The Stimulus Act also requires a written
certification by our Chief Executive Officer and Chief Financial Officer
of our compliance with the provisions of the Stimulus Act. These
certifications must be contained in the Company’s Annual Report on Form
10-K for the fiscal year ending December 31,
2009.
|
·
|
Treasury Review Excessive
Bonuses Previously Paid. The Stimulus Act directs the Secretary of
the Treasury to review all compensation paid to our senior executive
officers and our next 20 most highly compensated employees to determine
whether any such payments were inconsistent with the purposes of the
Stimulus Act or were otherwise contrary to the public interest. If the
Secretary of the Treasury makes such a finding, the Secretary of the
Treasury is directed to negotiate with the TARP Capital Purchase Program
recipient and the subject employee for appropriate reimbursements to the
federal government with respect to the compensation and
bonuses.
|
·
|
Say on Pay. Under the
Stimulus Act, the SEC is required to promulgate rules requiring a
non-binding say on pay vote by the shareholders on executive compensation
at the annual meeting during the TARP Capital Purchase Program Covered
Period.
|
|
·
|
allows
bank holding companies meeting management, capital and Community
Reinvestment Act standards to engage in a substantially broader range of
non-banking activities than is permissible for a bank holding company,
including insurance underwriting and making merchant banking investments
in commercial and financial companies; if a bank holding company elects to
become a financial holding company, it files a certification, effective in
30 days, and thereafter may engage in certain financial activities without
further approvals;
|
|
·
|
allows
banks to establish subsidiaries to engage in certain activities which a
financial holding company could engage in, if the bank meets certain
management, capital and Community Reinvestment Act standards;
and
|
|
·
|
allows
insurers and other financial services companies to acquire banks and
removed various restrictions that applied to bank holding company
ownership of securities firms and mutual fund advisory companies; and
established the overall regulatory structure applicable to financial
holding companies that also engage in insurance and securities
operations.
|
|
·
|
a
prohibition on personal loans made or arranged by the issuer to its
directors and executive officers (except for loans made by a bank subject
to Regulation O);
|
|
·
|
independence
requirements for audit committee
members;
|
|
·
|
disclosure
of whether at least one member of the audit committee is a “financial
expert” (as such term is defined by the SEC) and if not, why
not;
|
|
·
|
independence
requirements for outside auditors;
|
|
·
|
a
prohibition by a company’s registered public accounting firm from
performing statutorily mandated audit services for the company if the
company’s chief executive officer, chief financial officer, comptroller,
chief accounting officer or any person serving in equivalent positions had
been employed by such firm and participated in the audit of such company
during the one-year period preceding the audit initiation
date;
|
|
·
|
certification
of financial statements and reports on Forms 10-K and 10-Q by the chief
executive officer and the chief financial
officer;
|
|
·
|
the
forfeiture of bonuses or other incentive-based compensation and profits
from the sale of an issuer’s securities by directors and senior officers
in the twelve month period following initial publication of any financial
statements that later require restatement due to corporate
misconduct;
|
|
·
|
disclosure
of off-balance sheet transactions;
|
|
·
|
two-business
day filing requirements for insiders filing Forms
4;
|
|
·
|
disclosure
of a code of ethics for financial officers and filing a Form 8-K for a
change or waiver of such code;
|
|
·
|
“real
time” filing of periodic reports;
|
|
·
|
posting
of certain SEC filings and other information on the company
website;
|
|
·
|
the
reporting of securities violations “up the ladder” by both in-house and
outside attorneys;
|
|
·
|
restrictions
on the use of non-GAAP financial
measures;
|
|
·
|
the
formation of a public accounting oversight board;
and
|
|
·
|
various
increased criminal penalties for violations of securities
laws.
|
Office
Location
|
Address
|
Description
|
Opened
|
|||
The Bank’s Main
Office:
|
1250
Highway 35 South
Middletown,
NJ
|
5,300
sq. ft. first-floor stand-
alone building (leased) |
02/00
|
|||
Operations
Center:
|
178
Office Max Plaza
Suite
3-A
Eatontown,
NJ
|
7,200
sq. ft.
shopping
center (leased)
|
06/02
|
|||
Allaire:
|
Monmouth
Executive Airport
229
Airport Road, Bldg 13
Farmingdale,
NJ
|
3,800
sq. ft. building (leased)
|
02/04
|
|||
Atlantic
Highlands:
|
84
First Avenue
Atlantic
Highlands, NJ
|
700
sq. ft. store front (leased)
|
03/02
|
|||
Cliffwood:
|
Angel
Street & Route 35
Aberdeen,
NJ
|
2,500
sq. ft. building (leased)
|
11/04
|
|||
Cranford
Office:
|
104
Walnut Avenue
Cranford,
NJ
|
800
sq. ft. storefront
(leased)
|
11/07
|
|||
Fanwood:
|
328
South Avenue
Fanwood,
NJ
|
2,966
sq. ft. stand-alone
building (leased) |
03/08
|
|||
Manasquan:
|
240
Route 71
Manasquan,
NJ
|
4,300
sq. ft. stand-alone
building (leased) |
06/08
|
|||
Navesink:
|
East
Pointe Shopping Center
2345
Route 36
Atlantic
Highlands, NJ
|
2,080
sq. ft in strip shopping
center (leased) |
09/05
|
|||
Port
Monmouth:
|
357
Highway 36
Port
Monmouth, NJ
|
2,180
sq. ft. stand-alone
building (leased) |
06/01
|
|||
Red
Bank:
|
City
Centre Plaza
100
Water Street
Red
Bank, NJ
|
512
sq. ft. in strip shopping
center (leased) |
09/02
|
|||
Tinton
Falls:
|
4050
Asbury Avenue
Tinton
Falls, NJ
|
3,400
sq. ft. stand-alone
building (leased) |
10/06
|
|||
Tinton
Falls:
|
656
Shrewsbury Avenue
Tinton
Falls, NJ
|
3,650
sq. ft. stand-alone
building (leased) |
08/00
|
|||
West Long
Branch:
|
359
Monmouth Road
West
Long Branch, NJ
|
3,100
sq. ft. in strip shopping
center (leased) |
01/04
|
|||
Westfield:
|
520
South Avenue
Westfield,
NJ
|
3,000
sq. ft. stand-alone
building (leased) |
10/98
|
|||
Westfield:
|
44
Elm Street
Westfield,
NJ
|
3,000
sq. ft. downtown
building (owned) |
04/01
|
|||
2009
|
2008
|
|||||||||||||||
High
|
Low
|
High
|
Low
|
|||||||||||||
First
Quarter
|
$ | 4.37 | $ | 2.43 | $ | 9.45 | $ | 6.36 | ||||||||
Second
Quarter
|
4.61 | 3.08 | 8.43 | 6.17 | ||||||||||||
Third
Quarter
|
4.47 | 3.40 | 8.25 | 5.66 | ||||||||||||
Fourth
Quarter
|
4.25 | 3.00 | 7.28 | 2.18 |
2009
|
2008
|
2007
|
||||||||||
|
|
|
||||||||||
Return
on average assets
|
(0.82%) | 0.15% | 0.68% | |||||||||
Return
on average tangible assets
|
(0.85%) | 0.15% | 0.72% | |||||||||
Return
on average shareholders’ equity
|
(6.29%) | 1.09% | 5.19% | |||||||||
Return
on average tangible shareholders’ equity
|
(8.95%) | 1.69% | 8.30% | |||||||||
Net
interest margin
|
3.69% | 3.73% | 4.07% | |||||||||
Average
equity to average assets
|
13.03% | 13.35% | 13.14% | |||||||||
Average
tangible equity to average tangible assets assets
|
9.54% | 9.03% | 8.63% |
Years
ended December 31,
|
|||||||||||||||||||||||||||||||||||
2009
|
2008
|
2007
|
|||||||||||||||||||||||||||||||||
Average
balance
|
Interest
income/
expense
|
Average
rates
earned/
paid
|
Average
balance
|
Interest
income/
expense
|
Average
rates
earned/
paid
|
Average
balance
|
Interest
income/
expense
|
Average
rates
earned/
paid
|
|||||||||||||||||||||||||||
(in
thousands, except for percentages)
|
|||||||||||||||||||||||||||||||||||
ASSETS
|
|||||||||||||||||||||||||||||||||||
Interest-Earning
Assets:
|
|||||||||||||||||||||||||||||||||||
Federal
funds sold
|
$
|
35,610
|
$
|
59
|
0.17%
|
$
|
8,306
|
$
|
144
|
1.73
|
%
|
$
|
15,567
|
$
|
820
|
5.27
|
%
|
||||||||||||||||||
Investment
securities
|
57,512
|
2,397
|
4.17%
|
62,665
|
2,927
|
4.67
|
%
|
60,374
|
3,008
|
4.98
|
%
|
||||||||||||||||||||||||
Loans,
net of unearned fees (1) (2)
|
484,258
|
27,726
|
5.73%
|
433,784
|
27,739
|
6.39
|
%
|
414,215
|
32,021
|
7.73
|
%
|
||||||||||||||||||||||||
Total
Interest-Earning Assets
|
577,380
|
30,182
|
5.23%
|
504,755
|
30,810
|
6.10
|
%
|
490,156
|
35,849
|
7.31
|
%
|
||||||||||||||||||||||||
Non-Interest-Earning
Assets:
|
|||||||||||||||||||||||||||||||||||
Allowance
for loan loss
|
(6,887
|
)
|
(5,172
|
)
|
(4,618
|
)
|
|||||||||||||||||||||||||||||
Other
assets
|
53,913
|
50,425
|
50,367
|
||||||||||||||||||||||||||||||||
Total
Assets
|
$
|
624,406
|
$
|
550,008
|
$
|
535,905
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
LIABILITIES
& SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NOW
deposits
|
$
|
40,763
|
|
|
|
318
|
|
0.78%
|
$
|
38,030
|
|
|
|
395
|
|
1.04
|
%
|
$
|
39,026
|
|
|
|
763
|
|
1.96
|
%
|
|||||||||
Savings
deposits
|
|
176,199
|
|
|
|
3,186
|
|
1.81%
|
|
76,882
|
|
|
|
2,369
|
|
3.08
|
%
|
|
32,423
|
|
|
|
783
|
|
2.41
|
%
|
|||||||||
Money
market deposits
|
|
97,794
|
|
|
|
1,592
|
|
1.63%
|
|
114,247
|
|
|
|
3,268
|
|
2.86
|
%
|
|
103,133
|
|
|
|
4,183
|
|
4.06
|
%
|
|||||||||
Time
deposits
|
|
130,373
|
|
|
|
3,186
|
|
2.44%
|
|
145,416
|
|
|
|
5,188
|
|
3.57
|
%
|
|
196,546
|
|
|
|
9,579
|
|
4.87
|
%
|
|||||||||
Securities
sold under agreements to repurchase
|
|
15,233
|
|
|
|
273
|
|
1.79%
|
|
16,957
|
|
|
|
438
|
|
2.58
|
%
|
|
14,384
|
|
|
|
539
|
|
3.75
|
%
|
|||||||||
Short-term
borrowings
|
|
-
|
|
|
|
-
|
|
-
|
|
715
|
|
|
|
20
|
|
2.80
|
%
|
|
129
|
|
|
|
7
|
|
5.08
|
%
|
|||||||||
Long-term
debt
|
7,500
|
302
|
4.03%
|
7,500
|
299
|
3.98
|
%
|
658
|
25
|
3.87
|
%
|
||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||
Total
Interest-Bearing Liabilities
|
|
467,862
|
|
|
|
8,857
|
|
1.89%
|
|
399,747
|
|
|
|
11,977
|
|
3.00
|
%
|
|
386,299
|
|
|
|
15,879
|
|
4.11
|
%
|
|||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||||
Non-Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Demand
deposits
|
|
71,189
|
|
|
|
|
|
|
73,458
|
|
|
|
|
|
|
75,833
|
|
|
|
|
|
||||||||||||||
Other
liabilities
|
|
3,992
|
|
|
|
|
|
|
3,354
|
|
|
|
|
|
|
3,365
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total
Non-Interest-Bearing Liabilities
|
|
75,181
|
|
|
|
|
|
|
76,812
|
|
|
|
|
|
|
79,198
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||||
Shareholders’
Equity
|
|
81,363
|
|
|
|
|
|
|
73,449
|
|
|
|
|
|
|
70,408
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total
Liabilities and Shareholders’ Equity
|
$
|
624,406
|
|
|
|
|
|
$
|
550,008
|
|
|
|
|
|
$
|
535,905
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||||||||||
NET
INTEREST INCOME
|
|
|
|
|
$
|
21,325
|
|
|
|
|
|
$
|
18,833
|
|
|
|
|
$
|
19,970
|
|
|||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||||||||||
NET
INTEREST SPREAD (3)
|
|
|
|
|
|
|
|
3.34%
|
|
|
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
|
3.20
|
%
|
||||||||||
NET
INTEREST MARGIN (4)
|
3.69% | 3.73 | % | 4.07 | % |
(1)
|
Included
in interest income on loans are loan fees.
|
(2)
|
Includes
non-performing loans.
|
(3)
|
The
interest rate spread is the difference between the weighted average yield
on average interest-earning
assets
and the weighted average cost of average interest-bearing
liabilities.
|
(4)
|
The
interest rate margin is calculated by dividing net interest income by
average interest-earning assets.
|
Years
ended December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||
2009
vs. 2008
|
2008
vs. 2007
|
|
||||||||||||||||||||||||||||||||||||||||||||
Increase
(decrease) due to change in
|
|
|||||||||||||||||||||||||||||||||||||||||||||
Average
volume
|
Average
rate
|
Net
|
Average
volume
|
Average
rate
|
Net
|
|
||||||||||||||||||||||||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||
Interest
Earned On:
|
|
|||||||||||||||||||||||||||||||||||||||||||||
Federal
funds sold
|
$
|
473
|
$
|
(558
|
)
|
$
|
(85
|
)
|
$
|
(382
|
)
|
$
|
(294
|
)
|
$
|
(676
|
)
|
|||||||||||||||||||||||||||||
Investment
securities
|
(241
|
) |
(289
|
)
|
(530
|
)
|
114
|
(195
|
)
|
(81
|
)
|
|||||||||||||||||||||||||||||||||||
Loans,
net of unearned fees
|
3,228
|
(3,241
|
)
|
(13
|
)
|
1,513
|
(5,795
|
)
|
(4,282
|
)
|
||||||||||||||||||||||||||||||||||||
Total
Interest Income
|
3,460
|
(4,088
|
)
|
(628
|
)
|
1,245
|
(6,284
|
)
|
(5,039
|
)
|
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
Interest
Paid On:
|
||||||||||||||||||||||||||||||||||||||||||||||
NOW
deposits
|
28
|
(105
|
)
|
(77
|
)
|
(19
|
)
|
(349
|
)
|
(368
|
)
|
|||||||||||||||||||||||||||||||||||
Savings
deposits
|
3,060
|
(2,243
|
)
|
817
|
1,074
|
512
|
1,586
|
|||||||||||||||||||||||||||||||||||||||
Money
market deposits
|
(471
|
) |
(1,205
|
)
|
(1,676
|
)
|
451
|
(1,366
|
)
|
(915
|
)
|
|||||||||||||||||||||||||||||||||||
Time
deposits
|
(537
|
) |
(1,465
|
)
|
(2,002
|
)
|
(2,492
|
)
|
(1,899
|
)
|
(4,391
|
)
|
||||||||||||||||||||||||||||||||||
Securities
sold under agreements to repurchase
|
(45
|
) |
(120
|
)
|
(165
|
)
|
96
|
(197
|
)
|
(101
|
)
|
|||||||||||||||||||||||||||||||||||
Short-term
borrowing
|
(20
|
) |
-
|
(20
|
)
|
29
|
(16
|
)
|
13
|
|||||||||||||||||||||||||||||||||||||
Long-term
debt
|
-
|
3
|
3
|
266
|
8
|
274
|
||||||||||||||||||||||||||||||||||||||||
Total
Interest Expense
|
2,015
|
(5,135
|
)
|
(3,120
|
)
|
(595
|
)
|
(3,307
|
)
|
(3,902
|
)
|
|||||||||||||||||||||||||||||||||||
Net
Interest Income
|
$
|
1,445
|
$
|
1,047
|
$
|
2,492
|
$
|
1,840
|
$
|
(2,977
|
)
|
$
|
(1,137
|
)
|
Years ended
December
31,
|
||||||||||||||||
(dollars
in thousands)
|
2009
|
2008
|
Increase
(Decrease)
|
%
Increase
(Decrease)
|
||||||||||||
Salaries
and employee benefits
|
$ | 9,509 | $ | 9,076 | $ | 433 | 4.8 | % | ||||||||
Occupancy
and equipment
|
3,311 | 3,350 | (39 | ) | -1.2 | % | ||||||||||
Professional
fees
|
851 | 927 | (76 | ) | -8.2 | % | ||||||||||
Advertising
and marketing
|
251 | 339 | (88 | ) | -26.0 | % | ||||||||||
Data
processing
|
844 | 579 | 265 | 45.8 | % | |||||||||||
Insurance
|
309 | 332 | (23 | ) | -6.9 | % | ||||||||||
FDIC
insurance assessment
|
1,114 | 293 | 821 | 280.2 | % | |||||||||||
Outside
service fees
|
519 | 568 | (49 | ) | -8.6 | % | ||||||||||
Goodwill
impairment charge
|
6,725 | - | 6,725 | 100.0 | % | |||||||||||
Amortization
of identifiable intangibles
|
278 | 316 | (38 | ) | -12.0 | % | ||||||||||
Other
operating
|
1,426 | 1,390 | 36 | 2.6 | % | |||||||||||
Total
non-interest expenses
|
$ | 25,137 | $ | 17,170 | $ | 7,967 | 46.4 | % |
December
31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Investment
securities available for sale at fair value:
|
|
|
|
|||||||||
U.S.
Government agency securities
|
$ | 11,102 | $ | 23,927 | $ | 30,031 | ||||||
Municipal
securities
|
2,025 | 2,267 | 1,081 | |||||||||
U.S.
Government-sponsored enterprises
|
||||||||||||
(“GSE”) - Mortgage-backed securities
|
19,606 | 27,829 | 21,180 | |||||||||
Corporate debt securities
|
3,816 | 1,948 | 2,525 | |||||||||
Mutual fund
|
1,141 | — | — | |||||||||
|
||||||||||||
|
$ | 37,690 | $ | 55,971 | $ | 54,817 | ||||||
Investment
securities held to maturity at amortized cost:
|
||||||||||||
U.S.
Government agency securities
|
$ | 1,000 | $ | — | $ | — | ||||||
Municipal
securities
|
6,802 | 6,139 | 5,758 | |||||||||
Corporate
debt securities and other
|
2,816 | 1,801 | 1,799 | |||||||||
|
||||||||||||
|
$ | 10,618 | $ | 7,940 | $ | 7,557 |
December
31, 2009
|
Due
within 1
year
|
Due
1 – 5 years
|
Due 5
– 10 years
|
Due
after 10
years
|
Total
|
||||||||||||||||||||||||||
(dollars
in thousands)
|
Amortized
cost
|
Wtd
Avg
Yield
|
Amortized
cost
|
Wtd
Avg
Yield
|
Amortized
cost
|
Wtd
Avg
Yield
|
Amortized
cost
|
Wtd
Avg
Yield
|
Amortized
cost
|
Wtd
Avg
Yield
|
|||||||||||||||||||||
Investment
securities available for sale:
|
|||||||||||||||||||||||||||||||
U.S.
Government agency securities
|
$
|
2,000
|
3.04
|
%
|
$
|
7,000
|
2.14
|
%
|
$
|
-
|
-
|
$
|
2,068
|
5.95
|
%
|
$
|
11,068
|
3.01
|
%
|
||||||||||||
Municipal
securities
|
-
|
-
|
100
|
2.00
|
%
|
-
|
-
|
1,911
|
4.51
|
%
|
2,011
|
4.39
|
%
|
||||||||||||||||||
U.S.
Government-sponsored
|
|||||||||||||||||||||||||||||||
enterprises
(“GSE”) - Mortgage-
|
|||||||||||||||||||||||||||||||
backed
securities
|
261
|
4.00
|
%
|
858
|
4.50
|
%
|
1,440
|
4.83
|
%
|
16,210
|
5.17
|
%
|
18,769
|
5.10
|
%
|
||||||||||||||||
Corporate
debt securities
|
458
|
3.51
|
%
|
529
|
7.30
|
%
|
-
|
-
|
3,297
|
2.90
|
%
|
4,284
|
3.51
|
%
|
|||||||||||||||||
$
|
2,719
|
3.21
|
%
|
$
|
8,487
|
2.70
|
%
|
$
|
1,440
|
4.83
|
% |
$
|
23,486
|
4.86
|
%
|
$
|
36,132
|
4.21
|
%
|
||||||||||||
Investment
securities held to maturity:
|
|||||||||||||||||||||||||||||||
U.S.
Government agency securities
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
1,000
|
3.00
|
%
|
$
|
-
|
-
|
$
|
1,000
|
3.00
|
%
|
||||||||||||||
Municipal
securities
|
-
|
-
|
1,387
|
3.91
|
%
|
1,059
|
4.40
|
%
|
4,356
|
4.35
|
%
|
6,802
|
4.27
|
%
|
|||||||||||||||||
Corporate
debt securities and other
|
500
|
4.00
|
%
|
511
|
6.75
|
%
|
-
|
-
|
1,805
|
0.80
|
%
|
2,816
|
2.45
|
%
|
|||||||||||||||||
$
|
500
|
4.00
|
%
|
$
|
1,898
|
4.68
|
%
|
$
|
2,059
|
3.72
|
%
|
$
|
6,161
|
3.31
|
%
|
$
|
10,618
|
3.67
|
%
|
|
December
31,
|
|||||||||||||||||||||||
2009
|
2008
|
2007
|
||||||||||||||||||||||
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||
|
(in
thousands, except for percentages)
|
|||||||||||||||||||||||
Commercial
and industrial
|
$ | 133,916 | 26.1 | % | $ | 120,404 | 26.8 | % | $ | 114,657 | 27.5 | % | ||||||||||||
Real
estate - construction
|
67,011 | 13.0 | % | 76,128 | 17.0 | % | 86,937 | 20.8 | % | |||||||||||||||
Real
estate - commercial
|
228,818 | 44.5 | % | 177,650 | 39.6 | % | 167,404 | 40.1 | % | |||||||||||||||
Real
estate - residential
|
19,381 | 3.8 | % | 19,860 | 4.4 | % | 4,955 | 1.2 | % | |||||||||||||||
Consumer
|
64,547 | 12.6 | % | 54,890 | 12.2 | % | 42,627 | 10.2 | % | |||||||||||||||
Other
|
176 | 0.0 | % | 119 | 0.0 | % | 711 | 0.2 | % | |||||||||||||||
|
||||||||||||||||||||||||
Total
loans
|
$ | 513,849 | 100.0 | % | $ | 449,051 | 100.0 | % | $ | 417,291 | 100.0 | % |
December
31,
|
||||||||||||||||||||||||
2006
|
2005
|
|||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||
Commercial
and industrial
|
$ | 99,994 | 24.0 | % | $ | 55,480 | 25.6 | % | ||||||||||||||||
Real
estate - construction
|
112,088 | 26.8 | % | 42,657 | 19.7 | % | ||||||||||||||||||
Real
estate - commercial
|
158,523 | 38.0 | % | 97,934 | 45.3 | % | ||||||||||||||||||
Real
estate - residential
|
2,477 | 0.6 | % | 2,625 | 1.2 | % | ||||||||||||||||||
Consumer
|
44,218 | 10.6 | % | 17,569 | 8.1 | % | ||||||||||||||||||
Other
|
117 | 0.0 | % | 181 | 0.1 | % | ||||||||||||||||||
Total
loans
|
$ | 417,417 | 100.0 | % | $ | 216,446 | 100.0 | % |
(in
thousands)
|
|
|
|
|
||||||||||||||||||||
As
of December 31, 2009
|
Due
within 1
year
|
Due
1–5 years
|
Due
after 5
years
|
Total
|
||||||||||||||||||||
Commercial
and industrial
|
$ | 72,598 | $ | 33,577 | $ | 27,741 | $ | 133,916 | ||||||||||||||||
Real
estate—construction
|
48,257 | 1,977 | 16,777 | 67,011 | ||||||||||||||||||||
Real
estate—commercial
|
5,259 | 28,476 | 195,083 | 228,818 | ||||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 126,114 | $ | 64,030 | $ | 239,601 | $ | 429,745 | ||||||||||||||||
|
||||||||||||||||||||||||
Fixed
rate loans
|
$ | 34,239 | $ | 50,859 | $ | 44,344 | $ | 129,442 | ||||||||||||||||
Variable
rate loans
|
91,875 | 13,171 | 195,257 | 300,303 | ||||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 126,114 | $ | 64,030 | $ | 239,601 | $ | 429,745 |
Years ended December 31, | ||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Non-Performing
Assets:
|
||||||||||||||||||||
Non-Performing
Loans:
|
||||||||||||||||||||
Commercial
and industrial
|
$ | 4,720 | $ | 5,334 | $ | 98 | $ | --- | $ | --- | ||||||||||
Real
estate – construction
|
7,120 | 5,147 | 688 | --- | --- | |||||||||||||||
Consumer
|
2,311 | 2,477 | 103 | 61 | --- | |||||||||||||||
Total
Non-Performing Loans
|
14,151 | 12,958 | 889 | 61 | --- | |||||||||||||||
Other
Real Estate Owned
|
--- | --- | --- | --- | --- | |||||||||||||||
Total
Non-Performing Assets
|
$ | 14,151 | $ | 12,958 | $ | 889 | $ | 61 | $ | --- | ||||||||||
Ratios:
|
||||||||||||||||||||
Non-Performing
loans to total loans
|
2.76 | % | 2.89 | % | 0.21 | % | 0.01 | % | --- | |||||||||||
Non-Performing
assets to total assets
|
2.21 | % | 2.27 | % | 0.17 | % | 0.01 | % | --- | |||||||||||
Restructured
Loans
|
$ | 4,717 | $ | --- | $ | --- | $ | --- | $ | --- |
Years
ended December 31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(in
thousands, except for percentages)
|
||||||||||||||||||||
Balance
at beginning of year
|
$ | 6,815 | $ | 4,675 | $ | 4,567 | $ | 2,380 | $ | 1,927 | ||||||||||
Acquisition
of The Town Bank
|
--- | --- | --- | 1,536 | --- | |||||||||||||||
Provision
charged to expense
|
2,205 | 2,301 | 108 | 649 | 453 | |||||||||||||||
Recoveries
of loans charged off:
|
||||||||||||||||||||
Real
estate – construction
|
4 | --- | --- | |||||||||||||||||
Consumer
|
--- | --- | --- | 2 | --- | |||||||||||||||
Loans
charged-off:
|
||||||||||||||||||||
Commercial
and industrial
|
(526 | ) | --- | --- | --- | --- | ||||||||||||||
Real
estate – construction
|
(2,012 | ) | (158 | ) | --- | --- | --- | |||||||||||||
Consumer
|
(302 | ) | (3 | ) | --- | --- | --- | |||||||||||||
Charge-offs,
net
|
(2,836 | ) | (161 | ) | --- | 2 | --- | |||||||||||||
Balance
of allowance at end of year
|
$ | 6,184 | $ | 6,815 | $ | 4,675 | $ | 4,567 | $ | 2,380 | ||||||||||
Ratio
of net charge-offs to average
loans
outstanding
|
0.59 | % | 0.04 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Balance
of allowance at period-end
as
a percent of loans at year end
|
1.20 | % | 1.52 | % | 1.12 | % | 1.10 | % | 1.10 | % | ||||||||||
Ratio
of allowance at period-end
to non-performing loans
|
43.70 | % | 52.59 | % | 286.11 | % | --- | --- |
December
31,
|
||||||||||||||||||||||||||||||||||||
|
2009
|
2008
|
2007
|
|||||||||||||||||||||||||||||||||
|
Percent
of
|
Percent
of
|
Percent
of
|
|||||||||||||||||||||||||||||||||
(dollars
in thousands)
|
Amount
|
Allowance
to
total
allowance
|
Loans
to
total
loans
|
Amount
|
Allowance
to
total
allowance
|
Loans
to
total
loans
|
Amount
|
Allowance
to
total
allowance
|
Loans
to
total
loans
|
|||||||||||||||||||||||||||
Balance
applicable to :
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Commercial
and industrial
|
$ | 1,974 | 31.9 | % | 26.1 | % | $ | 1,769 | 26.0 | % | 26.8 | % | $ | 1,384 | 29.6 | % | 27.5 | % | ||||||||||||||||||
Real
estate - construction
|
945 | 15.3 | % | 13.0 | % | 2,470 | 36.2 | % | 17.0 | % | 972 | 20.8 | % | 20.8 | % | |||||||||||||||||||||
Real
estate - commercial
|
2,515 | 40.7 | % | 44.5 | % | 1,632 | 24.0 | % | 39.6 | % | 1,669 | 35.7 | % | 40.1 | % | |||||||||||||||||||||
Real
estate - residential
|
126 | 2.0 | % | 3.8 | % | 146 | 2.1 | % | 4.4 | % | 36 | 0.8 | % | 1.2 | % | |||||||||||||||||||||
Consumer
|
624 | 10.1 | % | 12.6 | % | 798 | 11.7 | % | 12.2 | % | 614 | 13.1 | % | 10.2 | % | |||||||||||||||||||||
Other
|
- | 0.0 | % | 0.0 | % | - | 0.0 | % | 0.0 | % | - | 0.0 | % | 0.2 | % | |||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Total
|
$ | 6,184 | 100.0 | % | 100.0 | % | $ | 6,815 | 100.0 | % | 100.0 | % | $ | 4,675 | 100.0 | % | 100.0 | % |
December
31,
|
||||||||||||||||||||||||
2006 | 2005 | |||||||||||||||||||||||
Percent of | Percent of | |||||||||||||||||||||||
(dollars in thousands) |
Amount
|
Allowance
to
total
allowance
|
Loans
to
total
loans
|
Amount | Allowance
to
total
allowance
|
Loans
to
total
loans
|
||||||||||||||||||
Balance
applicable to :
|
||||||||||||||||||||||||
Commercial
and industrial
|
$ | 1,297 | 28.4 | % | 24.0 | % | $ | 703 | 29.5 | % | 25.6 | % | ||||||||||||
Real
estate - construction
|
1,241 | 27.1 | % | 26.8 | % | 499 | 21.0 | % | 19.7 | % | ||||||||||||||
Real
estate - commercial
|
1,665 | 36.5 | % | 38.0 | % | 1,005 | 42.2 | % | 45.3 | % | ||||||||||||||
Real
estate - residential
|
18 | 0.4 | % | 0.6 | % | 21 | 0.9 | % | 1.2 | % | ||||||||||||||
Consumer
|
346 | 7.6 | % | 10.6 | % | 152 | 6.4 | % | 8.1 | % | ||||||||||||||
Other
|
— | 0.0 | % | 0.0 | % | — | 0.0 | % | 0.1 | % | ||||||||||||||
Total
|
$ | 4,567 | 100.0 | % | 100.0 | % | $ | 2,380 | 100.0 | % | 100.0 | % |
|
|
Years
ended December 31,
|
|
|||||||||||||||||||||||||||
(dollars in
thousands)
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|||||||||||||||||||||
|
|
Average
Balance
|
|
Average
Rate
|
|
|
Average
Balance
|
|
Average
Rate
|
|
|
Average
Balance
|
|
Average
Rate
|
|
|||||||||||||||
|
||||||||||||||||||||||||||||||
Non-interest
bearing demand
|
|
$
|
71,189
|
0.00
|
%
|
|
$
|
73,458
|
|
0.00
|
%
|
|
$
|
75,833
|
|
0.00
|
%
|
|||||||||||||
Interest-bearing
demand (NOW)
|
|
|
40,763
|
0.78
|
%
|
|
|
38,030
|
|
1.04
|
%
|
|
|
39,026
|
|
1.96
|
%
|
|||||||||||||
Savings
deposits
|
|
|
176,199
|
1.81
|
%
|
|
|
76,882
|
|
3.08
|
%
|
|
|
32,423
|
|
2.41
|
%
|
|||||||||||||
Money
market deposits
|
|
|
97,794
|
1.63
|
%
|
|
|
114,247
|
|
2.86
|
%
|
|
|
103,133
|
|
4.06
|
%
|
|||||||||||||
Time
deposits
|
|
|
130,373
|
2.44
|
%
|
|
|
145,416
|
|
3.57
|
%
|
|
|
196,546
|
|
4.87
|
%
|
|||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
|
$
|
516,318
|
1.60
|
%
|
|
$
|
448,033
|
|
2.50
|
%
|
|
$
|
446,961
|
|
3.42
|
%
|
|
|
|||
December
31,
2009
|
||||
Due
in three months or less
|
$ | 40,526 | ||
Due
over three months through twelve months
|
17,868 | |||
Due
over one year through three years
|
5,612 | |||
Due
over three years
|
8,943 | |||
|
||||
Total
certificates of deposit $100,000 and over
|
$ | 72,949 |
|
|
Years
ended December 31,
|
|
|||||||||
(dollars
in thousands)
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|||
Short-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at year-end
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Average
during the year
|
|
—
|
|
|
715
|
|
|
129
|
||||
Maximum
month-end balance
|
|
|
—
|
|
|
|
5,346
|
|
|
|
161
|
|
Weighted
average rate during the year
|
|
|
—
|
|
|
2.80
|
%
|
|
|
5.08
|
%
|
|
Weighted
average rate at December 31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Years
ended December 31,
|
|
||||||||||
(dollars
in thousands)
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|||
Repurchase
agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at year-end
|
|
$
|
17,065
|
|
|
$
|
11,377
|
|
|
$
|
15,187
|
|
Average
during the year
|
|
15,233
|
|
|
16,957
|
|
|
14,384
|
||||
Maximum
month-end balance
|
|
|
18,330
|
|
|
|
19,553
|
|
|
|
16,260
|
|
Weighted
average rate during the year
|
|
|
1.79
|
%
|
|
|
2.58
|
%
|
|
|
3.75
|
%
|
Weighted
average rate at December 31
|
|
|
1.44
|
%
|
|
|
2.31
|
%
|
|
|
3.17
|
%
|
(dollars
in thousands)
|
December
31,
2009
|
|||
Commercial
lines of credit
|
$ | 29,443 | ||
One-to-four
family residential lines of credit
|
36,300 | |||
Commitments
to grant commercial and construction loans secured by real
estate
|
46,928 | |||
Commercial
letters of credit
|
5,824 | |||
$ | 118,495 |
Actual
|
For
Capital Adequacy
Purposes
|
To
be Well Capitalized under
Prompt
Corrective Action
Provisions
|
||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
As
of December 31, 2009
|
||||||||||||||||||||
Total
capital (to risk-weighted assets)
|
||||||||||||||||||||
Community
Partners Bancorp
|
$ | 63,792 | 11.74 | % | $ |
>43,470
|
≥8.00 % | $ | N/A | N/A | ||||||||||
Two
River Community Bank
|
63,601 | 11.68 | % |
>43,562
|
≥8.00 % |
>54,453
|
≥10.00 | % | ||||||||||||
Tier
1 capital (to risk-weighted assets)
|
||||||||||||||||||||
Community
Partners Bancorp
|
57,608 | 10.60 | % |
>21,739
|
≥4.00 % | N/A | N/A | |||||||||||||
Two
River Community Bank
|
57,417 | 10.55 | % |
>21,769
|
≥4.00 % |
>32,654
|
≥6.00 | % | ||||||||||||
Tier
1 capital (to average assets)
|
||||||||||||||||||||
Community
Partners Bancorp
|
57,608 | 9.28 | % |
>24,831
|
≥4.00 % | N/A | N/A | |||||||||||||
Two
River Community Bank
|
57,417 | 9.18 | % |
>24,563
|
≥4.00 % |
>30,704
|
≥5.00 | % | ||||||||||||
As
of December 31, 2008
|
||||||||||||||||||||
Total
capital (to risk-weighted assets)
|
||||||||||||||||||||
Community
Partners Bancorp
|
$ | 52,832 | 11.25 | % | $ |
>37,569
|
≥8.00 % | $ | N/A | N/A | ||||||||||
Two
River Community Bank
|
52,038 | 11.05 | % |
>37,675
|
≥8.00 % |
>47,093
|
≥10.00 | % | ||||||||||||
Tier
1 capital (to risk-weighted assets)
|
||||||||||||||||||||
Community
Partners Bancorp
|
46,951 | 10.00 | % |
>18,780
|
≥4.00 % | N/A | N/A | |||||||||||||
Two
River Community Bank
|
46,140 | 9.80 | % |
>18,833
|
≥4.00 % |
>28,249
|
≥6.00 | % | ||||||||||||
Tier
1 capital (to average assets)
|
||||||||||||||||||||
Community
Partners Bancorp
|
46,951 | 8.53 | % |
>22,017
|
≥4.00 % | N/A | N/A | |||||||||||||
Two
River Community Bank
|
46,140 | 8.38 | % |
>22,024
|
≥4.00 % |
>27,530
|
≥5.00 | % |
|
·
|
Static
balance sheet scenario;
|
|
·
|
Interest
rates up or down 2.00% over twelve
months;
|
|
·
|
Core
deposit rate changes lag based on certain
correlations.
|
|
·
|
Static
balance sheet scenario;
|
|
·
|
Interest
rates shock up or down 3.00%
immediately;
|
|
·
|
Core
deposit rate changes lag based on certain
correlations.
|
Gradual
change in interest rates
|
||||||||||||||||||||
300
basis point increase
|
300
basis point decrease
|
|||||||||||||||||||
(dollars in thousands)
|
Dollar
change
|
Percent
of
change
|
Dollar
change
|
Percent
of
change
|
ALCO
Policy Guideline
|
|||||||||||||||
Twelve
month horizon:
|
||||||||||||||||||||
Net
interest income change
|
$ | (511) | -2.1% | $ | (196) | -0.08% | -6.00% |
December 31, 2009 | ||||
Change
in Interest Rates
(dollars in
thousands)
|
Book
Value
|
-200
bp
|
+200bp
|
ALCO
Policy
Guideline
|
Economic
Value of
Equity
|
$72,946 |
$ 67,177
|
$ 70,950
|
|
$
Change
|
(5,769)
|
(1,996)
|
|
|
%
Change to PV Equity
|
-7.91%
|
-2.74%
|
-25.00%
|
|
%
Change to Assets
|
-0.90%
|
-0.31%
|
-3.00%
|
|
%
Change to PV Equity Premium
|
-40.09%
|
-13.87%
|
November 30, 2008 | ||||
Change
in Interest Rates
(dollars in
thousands)
|
Book
Value
|
-200
bp
|
+200bp
|
ALCO
Policy
Guideline
|
Economic
Value of
Equity
|
$55,176 |
$ 51,173
|
$ 47,214
|
|
$
Change
|
(4,003)
|
(7,962)
|
|
|
%
Change to PV Equity
|
-14.43%
|
-6.17%
|
-25.00%
|
|
%
Change to Assets
|
-1.38%
|
-0.59%
|
-3.00%
|
|
%
Change to PV Equity Premium
|
111.39%
|
-54.53%
|
Plan
category
|
Number
of securities
to
be issued upon
exercise
of outstanding
options,
warrants and
rights
(a)
|
Weighted-average
exercise
price
of outstanding
options,
warrants and
rights
(b)
|
Number
of securities
remaining
available for
future
issuance under
equity
compensation plans
(excluding
securities
reflected
in column (a))
(c)
|
Equity
compensation plans
approved
by security holders (1)
|
425,390
|
$
3.64
|
394,155
|
Equity
compensation plans not
approved
by security holders
|
-0-
|
N/A
|
-0-
|
Total
|
425,390
|
$
3.64
|
394,155
|
|
(1)
|
Includes
the Community Partners Bancorp 2007 Equity Incentive Plan. Does not include the
following Two River and Town Bank plans, which were acquired by Community
Partners upon its acquisition of Two River and Town Bank in 2006: Two
River Community Bank 2003 Incentive Stock Option Plan, Two River Community
Bank 2003 Non-Qualified Stock Option Plan, Two River Community Bank
Incentive Stock Option Plan (2001), Two River Community Bank Non-Qualified
Stock Option Plan (2001), The Town Bank of Westfield 2002 Employee Stock
Option Plan, The Town Bank of Westfield 2001 Employee Stock Option Plan,
The Town Bank of Westfield 2000 Employee Stock Option Plan, The Town Bank
of Westfield 1999 Employee Stock Option Plan, The Town Bank of Westfield
2001 Director Stock Option Plan, The Town Bank of Westfield 2000 Director
Stock Option Plan and The Town Bank of Westfield 1999 Director Stock
Option Plan. These plans were assumed by Community Partners Bancorp when
it acquired Two River Community Bank and The Town Bank on April 1, 2006.
Pursuant to these plans, there are 611,266 securities to be issued upon
exercise of outstanding options with a weighted average exercise price of
$9.69. No shares are available for future grants under these
plans.
|
Item 15. | Exhibits and Financial Statement Schedules. | |
(a) Financial Statements and Financial Statement Schedules | ||
The following documents are filed as part of this report: | ||
1. | Financial Statements of Community Partners Bancorp | |
Report of Independent Registered Public Accounting Firm | ||
Consolidated Balance Sheets – December 31, 2009 and 2008 | ||
Consolidated Statements of Operations – Years Ended December 31, 2009 and 2008 | ||
Consolidated Statements of Shareholders’ Equity – Years Ended December 31, 2009 and 2008 | ||
Consolidated Statements of Cash Flows – Years Ended December 31, 2009 and 2008 | ||
Notes to Consolidated Financial Statements | ||
2. | All schedules are omitted because either they are inapplicable or not required, or because the information required therein is included in the Consolidated Financial Statements and Notes thereto. | |
3. | See accompanying Index to Exhibits. | |
(b) | Exhibits | |
Exhibits required by Section 601 of Regulation S-K (see accompanying Index to Exhibits). | ||
(c) | Financial Statement Schedules | |
See the Notes to the Consolidated Financial Statements included in this report. | ||
/s/ ParenteBeard LLC |
December
31,
|
||||||||
|
2009
|
2008
|
||||||
(In
Thousands, Except Share Data)
|
||||||||
Assets
|
||||||||
Cash
and due from banks
|
$ | 6,841 | $ | 8,110 | ||||
Federal
funds sold
|
35,894 | 14,907 | ||||||
Cash
and Cash Equivalents
|
42,735 | 23,017 | ||||||
Securities
available for sale
|
37,690 | 55,971 | ||||||
Securities
held to maturity (fair value 2009 $10,266; 2008 $7,074)
|
10,618 | 7,940 | ||||||
Restricted
stocks, at cost
|
1,000 | 755 | ||||||
Loans
|
513,399 | 448,780 | ||||||
Allowance
for loan losses
|
(6,184 | ) | (6,815 | ) | ||||
Net
Loans
|
507,215 | 441,965 | ||||||
Bank-owned
life insurance
|
7,770 | 4,101 | ||||||
Premises
and equipment, net
|
3,764 | 5,658 | ||||||
Accrued
interest receivable
|
1,876 | 1,951 | ||||||
Goodwill
|
18,109 | 24,834 | ||||||
Other
intangible assets, net of accumulated amortization of
$1,235
|
||||||||
and
$957 at December 31, 2009 and December 31, 2008,
respectively
|
871 | 1,149 | ||||||
Other
assets
|
8,380 | 2,899 | ||||||
Total
Assets
|
$ | 640,028 | $ | 570,240 | ||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$ | 69,980 | $ | 65,115 | ||||
Interest-bearing
|
465,432 | 409,724 | ||||||
Total Deposits
|
535,412 | 474,839 | ||||||
Securities
sold under agreements to repurchase
|
17,065 | 11,377 | ||||||
Accrued
interest payable
|
164 | 282 | ||||||
Long-term
debt
|
7,500 | 7,500 | ||||||
Other
liabilities
|
3,050 | 2,930 | ||||||
Total
Liabilities
|
563,191 | 496,928 | ||||||
Shareholders’
Equity
|
||||||||
Preferred
stock, no par value; 6,500,000 shares authorized; $1,000
liquidation preference
per share, 9,000 shares issued and outstanding at December 31, 2009 and
-0- at
December 31,2008
|
8,508 | - | ||||||
Common
stock, no par value; 25,000,000 shares
authorized; 7,182,397 and 6,959,821
shares issued and outstanding at December 31, 2009 and December 31, 2008,
respectively
|
69,794 | 68,197 | ||||||
(Accumulated
deficit) retained earnings
|
(1,714 | ) | 4,738 | |||||
Accumulated
other comprehensive income
|
249 | 377 | ||||||
Total
Shareholders’ Equity
|
76,837 | 73,312 | ||||||
Total
Liabilities and Shareholders’ Equity
|
$ | 640,028 | $ | 570,240 |
See
notes to consolidated financial
statements.
|
|
Years
Ended December 31,
|
|||||||
2009
|
2008
|
|||||||
(In
Thousands, Except Per Share Data)
|
||||||||
Interest
Income
|
||||||||
Loans,
including fees
|
$ | 27,726 | $ | 27,739 | ||||
Investment
securities
|
2,397 | 2,927 | ||||||
Federal
funds sold
|
59 | 144 | ||||||
30,182 | 30,810 | |||||||
Interest
Expense
|
||||||||
Deposits
|
8,282 | 11,220 | ||||||
Securities
sold under agreements to repurchase
|
273 | 438 | ||||||
Borrowings
|
302 | 319 | ||||||
8,857 | 11,977 | |||||||
21,325 | 18,833 | |||||||
2,205 | 2,301 | |||||||
19,120 | 16,532 | |||||||
Non-Interest
Income
|
||||||||
Total
other-than-temporary impairment losses
|
(360 | ) | -- | |||||
Less:
Portion included in other comprehensive
|
||||||||
income
(pre-tax)
|
204 | -- | ||||||
Net
other-than-temporary impairment charges
|
||||||||
to
earnings
|
(156 | ) | -- | |||||
Service
fees on deposit accounts
|
611 | 660 | ||||||
Other
loan customer service fees
|
167 | 263 | ||||||
Earnings
from investment in life insurance
|
144 | 150 | ||||||
Net
realized gains on sale of securities
|
703 | -- | ||||||
Other
income
|
780 | 593 | ||||||
2,249 | 1,666 | |||||||
Non-Interest
Expenses
|
||||||||
Salaries
and employee benefits
|
9,509 | 9,076 | ||||||
Occupancy
and equipment
|
3,311 | 3,350 | ||||||
Professional
|
851 | 927 | ||||||
Advertising
|
251 | 339 | ||||||
Data
processing
|
844 | 579 | ||||||
Insurance
|
309 | 332 | ||||||
FDIC
insurance and assessments
|
1,114 | 293 | ||||||
Outside
service fees
|
519 | 568 | ||||||
Amortization
of identifiable intangibles
|
278 | 316 | ||||||
Goodwill
impairment charge
|
6,725 | --- | ||||||
Other
operating
|
1,426 | 1,390 | ||||||
25,137 | 17,170 | |||||||
(3,768 | ) | 1,028 | ||||||
Income
Tax Expense
|
1,353 | 230 | ||||||
$ | (5,121 | ) | $ | 798 | ||||
Preferred
stock dividends and discount accretion
|
(530 | ) | -- | |||||
Net
(loss) income available to common shareholders
|
$ | (5,651 | ) | $ | 798 | |||
(Loss)
Earnings Per Common Share
|
||||||||
Basic
|
$ | (0.79 | ) | $ | 0.11 | |||
Diluted
|
$ | (0.79 | ) | $ | 0.11 |
See
notes to consolidated financial
statements.
|
Common
Stock
|
||||||||||||||||||||||||
(Dollars
in Thousands)
|
Preferred
Stock
|
Outstanding
Shares
|
Amount
|
(Accumulated
Deficit)
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income
|
Total
Shareholders’
Equity
|
||||||||||||||||||
Balance,
January 1, 2008
|
$ | - | 6,722,784 | $ | 66,552 | $ | 5,805 | $ | 100 | $ | 72,457 | |||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||
Net
income
|
- | - | - | 798 | - | 798 | ||||||||||||||||||
Change
in net unrealized gain (loss)
on
securities available for sale,
net
of reclassification adjustment
and
tax
|
- | - | - | - | 277 | 277 | ||||||||||||||||||
Total
comprehensive income
|
- | - | - | - | - | 1,075 | ||||||||||||||||||
Options
exercised
|
- | 34,861 | 165 | - | - | 165 | ||||||||||||||||||
Common
stock dividend – 3%
|
- | 202,176 | 1,480 | (1,480 | ) | - | - | |||||||||||||||||
Cumulative
effect adjustment –
adoption
of accounting for post
retirement
benefit costs
|
- | - | - | (385 | ) | - | (385 | ) | ||||||||||||||||
Balance,
December 31, 2008
|
- | 6,959,821 | 68,197 | 4,738 | 377 | 73,312 | ||||||||||||||||||
Comprehensive
loss:
|
||||||||||||||||||||||||
Net
loss
|
- | - | - | (5,121 | ) | - | (5,121 | ) | ||||||||||||||||
Change
in net unrealized gain (loss)
|
||||||||||||||||||||||||
on
securities available for sale,
net
of reclassification adjustment
and
tax
|
- | - | - | - | (128 | ) | (128 | ) | ||||||||||||||||
Total
comprehensive loss
|
(5,249 | ) | ||||||||||||||||||||||
Preferred
stock and common stock
warrants
issued
|
8,398 | - | 602 | - | - | 9,000 | ||||||||||||||||||
Preferred
stock discount accretion
|
110 | - | - | (110 | ) | - | - | |||||||||||||||||
Dividends
on preferred stock
|
- | - | - | (420 | ) | - | (420 | ) | ||||||||||||||||
Common
stock dividend – 3%
|
- | 208,852 | 801 | (801 | ) | - | - | |||||||||||||||||
Stock
option compensation expense
|
- | - | 150 | - | - | 150 | ||||||||||||||||||
Options
exercised
|
- | 13,724 | 44 | - | - | 44 | ||||||||||||||||||
Balance,
December 31, 2009
|
$ | 8,508 | 7,182,397 | $ | 69,794 | $ | (1,714 | ) | $ | 249 | $ | 76,837 |
Years
Ended December 31,
|
||||||||
2009
|
2008
|
|||||||
(In
Thousands)
|
||||||||
Cash
Flows from Operating Activities
|
||||||||
Net
(loss) income
|
$ | (5,121 | ) | $ | 798 | |||
Adjustments
to reconcile net (loss) income to net cash provided by
operating
activities:
|
||||||||
Goodwill
impairment charge
|
6,725 | -- | ||||||
Depreciation
and amortization
|
1,053 | 1,125 | ||||||
Provision
for loan losses
|
2,205 | 2,301 | ||||||
Intangible
amortization
|
278 | 316 | ||||||
Net
amortization of securities premiums and discounts
|
215 | 49 | ||||||
Other-than-temporary
impairment on securities available for sale
|
156 | -- | ||||||
Net
realized gain on sale of securities available for sale
|
(703 | ) | -- | |||||
Deferred
income taxes
|
(237 | ) | (908 | ) | ||||
Earnings
from investment in life insurance
|
(144 | ) | (150 | ) | ||||
Commercial
loan participations originated for sale
|
-- | (343 | ) | |||||
Proceeds
from sales of commercial loan participations
|
-- | 343 | ||||||
Stock
option compensation expense
|
150 | -- | ||||||
Net
realized gain on sale of foreclosed real estate
|
(6 | ) | -- | |||||
Decrease
(increase) in assets:
|
||||||||
Accrued
interest receivable
|
75 | 340 | ||||||
Other
assets
|
(4,057 | ) | (109 | ) | ||||
(Decrease)
increase in liabilities:
|
||||||||
Accrued
interest payable
|
(118 | ) | (249 | ) | ||||
Other
liabilities
|
56 | 78 | ||||||
Net
Cash Provided by Operating Activities
|
527 | 3,591 | ||||||
Cash
Flows from Investing Activities
|
||||||||
Purchase
of securities held to maturity
|
(5,175 | ) | (857 | ) | ||||
Purchase
of securities available for sale
|
(26,141 | ) | (36,084 | ) | ||||
Proceeds
from sales of securities available for sale
|
11,363 | -- | ||||||
Proceeds
from repayments and maturities of securities held to
maturity
|
2,492 | 472 | ||||||
Proceeds
from repayments and maturities of securities available for
sale
|
33,181 | 35,341 | ||||||
Purchase
of restricted stocks
|
(245 | ) | (27 | ) | ||||
Proceeds
from the sale of foreclosed real estate
|
1,776 | -- | ||||||
Net
increase in loans
|
(69,225 | ) | (31,974 | ) | ||||
Purchase
of bank-owned life insurance
|
(3,525 | ) | -- | |||||
Purchase
of premises and equipment
|
(259 | ) | (1,693 | ) | ||||
Net
Cash Used in Investing Activities
|
(55,758 | ) | (34,822 | ) | ||||
Cash
Flows from Financing Activities
|
||||||||
Net
increase in deposits
|
60,573 | 47,880 | ||||||
Net
increase (decrease) in securities sold under agreements to
repurchase
|
5,688 | (3,810 | ) | |||||
Proceeds
from issuance of preferred stock
|
9,000 | -- | ||||||
Cash
dividends paid on preferred stock
|
(356 | ) | -- | |||||
Proceeds
from exercise of stock options
|
44 | 165 | ||||||
Net
Cash Provided by
Financing Activities
|
74,949 | 44,235 | ||||||
Net
Increase in Cash and Cash Equivalents
|
19,718 | 13,004 | ||||||
Cash
and Cash Equivalents – Beginning
|
23,017
|
10,013
|
Cash
and Cash Equivalents – Ending
|
$ | 42,735 | $ | 23,017 | ||||
Supplementary
Cash Flows Information
|
||||||||
Interest
paid
|
$ | 8,975 | $ | 12,226 | ||||
Income
taxes paid
|
$ | 2,609 | $ | 1,280 | ||||
Supplementary
schedule of non-cash activities:
Other
real estate acquired in settlement of loans
|
$ | 1,770 | $ | -- |
See
notes to consolidated financial
statements.
|
a.
|
The
quoted price of the identical liability when traded as an
asset.
|
b.
|
Quoted
prices for similar liabilities or similar liabilities when traded as
assets, or
|
c.
|
Another
valuation technique that is consistent with the principles of Topic 820.
Two examples would be an income approach, such as a present value
technique, or a market approach, such as a technique that is based on the
amount at the measurement date that the reporting entity would pay to
transfer the identical liability or would receive to
enter into the identical
liability.
|
·
|
A
reporting entity to disclose separately the amounts of significant
transfers in and out of Level 1 and Level 2 fair value measurements and
describe the reasons for the transfers;
and
|
·
|
In
the reconciliation for fair value measurements using significant
unobservable inputs, a reporting entity should present separately
information about purchases, sales, issuances, and
settlements.
|
·
|
For
purposes of reporting fair value measurements for each class of assets and
liabilities, a reporting entity needs to use judgment in determining the
appropriate classes of assets and liabilities;
and
|
·
|
A
reporting entity should provide disclosures about the valuation techniques
and inputs used to measure fair value for both recurring and nonrecurring
fair value measurements.
|
Gross
|
||||||||||||||||||||
Gross
|
Unrealized Losses |
|
||||||||||||||||||
Amortized
|
Unrealized
|
Noncredit |
Fair
|
|||||||||||||||||
Cost
|
Gains
|
OTTI
|
Other |
Value
|
||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Securities
available for sale:
|
||||||||||||||||||||
U.S.
Government agency securities
|
$ | 11,068 | $ | 83 | $ | - | $ | (49 | ) | $ | 11,102 | |||||||||
Municipal
securities
|
2,011 | 26 | - | (12 | ) | 2,025 | ||||||||||||||
U.S.
Government-sponsored enterprises (“GSE”) -
Mortgage-backed
securities
|
18,769 | 838 | - | (1 | ) | 19,606 | ||||||||||||||
Corporate
debt securities
|
4,284 | 51 | (204 | ) | (315 | ) | 3,816 | |||||||||||||
36,132 | 998 | (204 | ) | (377 | ) | 36,549 | ||||||||||||||
Mutual
Fund
|
1,136 | 5 | - | - | 1,141 | |||||||||||||||
$ | 37,268 | $ | 1,003 | $ | (204 | ) | $ | (377 | ) | $ | 37,690 |
Securities
held to maturity:
|
||||||||||||||||||||
U.S.
Government agency securities
|
$ | 1,000 | $ | - | $ | - | $ | (21 | ) | $ | 979 | |||||||||
Municipal
securities
|
6,802 | 214 | - | (5 | ) | 7,011 | ||||||||||||||
Corporate
debt securities
|
2,816 | 16 | - | (556 | ) | 2,276 | ||||||||||||||
$ | 10,618 | $ | 230 | $ | - | $ | (582 | ) | $ | 10,266 |
Gross
|
||||||||||||||||||||
Gross
|
Unrealized
Losses
|
|||||||||||||||||||
Amortized
|
Unrealized
|
Noncredit
|
Fair
|
|||||||||||||||||
Cost
|
Gains
|
OTTI
|
Other
|
Value
|
||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Securities
available for sale:
|
||||||||||||||||||||
U.S.
Government agency securities
|
$ | 23,257 | $ | 670 | $ | - | $ | - | $ | 23,927 | ||||||||||
Municipal
securities
|
2,247 | 20 | - | - | 2,267 | |||||||||||||||
U.S.
Government-sponsored enterprises (“GSE”) -
Mortgage-backed
securities
|
27,252 | 660 | - | (83 | ) | 27,829 | ||||||||||||||
Corporate
debt securities and others
|
2,577 | 102 | - | (731 | ) | 1,948 | ||||||||||||||
$ | 55,333 | $ | 1,452 | $ | - | $ | (814 | ) | $ | 55,971 | ||||||||||
Securities
held to maturity:
|
||||||||||||||||||||
Municipal
securities
|
$ | 6,139 | $ | 90 | $ | - | $ | (73 | ) | $ | 6,156 | |||||||||
Corporate
debt securities and others
|
1,801 | - | - | (883 | ) | 918 | ||||||||||||||
$ | 7,940 | $ | 90 | $ | - | $ | (956 | ) | $ | 7,074 |
Available
for Sale
|
Held
to Maturity
|
|||||||||||||||
Amortized
Cost
|
Fair
Value
|
Amortized
Cost |
Fair
Value
|
|||||||||||||
(In
Thousands)
|
||||||||||||||||
Due
in one year or less
|
$ | 2,458 | $ | 2,479 | $ | 500 | $ | 500 | ||||||||
Due
in one year through five years
|
7,629 | 7,627 | 1,898 | 1,995 | ||||||||||||
Due
in five years through ten years
|
- | - | 2,059 | 2,094 | ||||||||||||
Due
after ten years
|
7,276 | 6,837 | 6,161 | 5,677 | ||||||||||||
17,363 | 16,943 | 10,618 | 10,266 | |||||||||||||
GSE
- Mortgage-backed securities
|
18,769 | 19,606 | - | - | ||||||||||||
$ | 36,132 | $ | 36,549 | $ | 10,618 | $ | 10,266 |
Less
than 12 Months
|
12
Months or More
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses |
Fair
Value
|
Unrealized
Losses |
Fair
Value
|
Unrealized
Losses |
|||||||||||||||||||
December
31, 2009:
|
(In
Thousands)
|
|||||||||||||||||||||||
U.S.
Government agency securities
|
$ | 4,930 | $ | (70 | ) | $ | - | $ | - | $ | 4,930 | $ | (70 | ) | ||||||||||
Municipal
securities
|
1,341 | (17 | ) | - | - | 1,341 | (17 | ) | ||||||||||||||||
GSE
- Mortgage-backed securities
|
42 | (1 | ) | - | - | 42 | (1 | ) | ||||||||||||||||
Corporate
debt securities
|
325 | (5 | ) | 2,071 | (1,070 | ) | 2,396 | (1,075 | ) | |||||||||||||||
Total
Temporarily
Impaired
Securities
|
$ | 6,638 | $ | (93 | ) | $ | 2,071 | $ | (1,070 | ) | $ | 8,709 | $ | (1,163 | ) |
Less
than 12 Months
|
12
Months or More
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses |
Fair
Value
|
Unrealized
Losses |
Fair
Value
|
Unrealized
Losses |
|||||||||||||||||||
(In
Thousands)
|
||||||||||||||||||||||||
December
31, 2008:
|
||||||||||||||||||||||||
Municipal
securities
|
$ | 1,768 | $ | (73 | ) | $ | - | $ | - | $ | 1,768 | $ | (73 | ) | ||||||||||
GSE
- Mortgage-backed securities
|
1,990 | (15 | ) | 2,308 | (68 | ) | 4,298 | (83 | ) | |||||||||||||||
Corporate
debt securities
|
- | - | 1,685 | (1,614 | ) | 1,685 | (1,614 | ) | ||||||||||||||||
Total
Temporarily
Impaired
Securities
|
$ | 3,758 | $ | (88 | ) | $ | 3,993 | $ | (1,682 | ) | $ | 7,751 | $ | (1,770 | ) |
2009
|
||||||||
(In
Thousands)
|
||||||||
Beginning
balance, January 1, 2009
|
$ | - | ||||||
Amount related to the credit loss
for which an
|
||||||||
other-than-temporary impairment
was not
|
||||||||
previously
recognized
|
156 | |||||||
Ending
balance, December 31, 2009
|
$ | 156 |
2009
|
2008
|
|||||||
(In
Thousands)
|
||||||||
Commercial
and industrial
|
$ | 133,916 | $ | 120,404 | ||||
Real
estate – construction
|
67,011 | 76,128 | ||||||
Real
estate – commercial
|
228,818 | 177,650 | ||||||
Real
estate – residential
|
19,381 | 19,860 | ||||||
Consumer
|
64,547 | 54,890 | ||||||
Other
|
176 | 119 | ||||||
513,849 | 449,051 | |||||||
Allowance
for loan losses
|
(6,184 | ) | (6,815 | ) | ||||
Unearned
fees
|
(450 | ) | (271 | ) | ||||
Net
Loans
|
$ | 507,215 | $ | 441,965 |
2009
|
2008
|
|||||||
(In
Thousands)
|
||||||||
Balance,
beginning of year
|
$ | 6,815 | $ | 4,675 | ||||
Provision charged to
expenses
|
2,205 | 2,301 | ||||||
Loans charged-off,
net
|
(2,836 | ) | (161 | ) | ||||
Balance,
end of year
|
$ | 6,184 | $ | 6,815 |
|
Estimated
Useful
Lives
|
2009
|
2008
|
|||||||||
(In
Thousands)
|
||||||||||||
Land
|
Indefinite
|
$ | 400 | $ | 1,208 | |||||||
Buildings
|
30
years
|
893 | 893 | |||||||||
Leasehold
improvements
|
5-15
years
|
4,266 | 4,193 | |||||||||
Furniture,
fixtures and equipment
|
3 -
7 years
|
4,040 | 3,896 | |||||||||
Computer
equipment and software
|
2 -
5 years
|
1,927 | 1,798 | |||||||||
Construction
in progress
|
- | - | 397 | |||||||||
11,526 | 12,385 | |||||||||||
Less
accumulated depreciation and amortization
|
(7,762 | ) | (6,727 | ) | ||||||||
$ | 3,764 | $ | 5,658 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
(In
Thousands)
|
||||||||
Balance
at beginning of year
|
$ | 24,834 | $ | 24,834 | ||||
Goodwill
impairment
|
(6,725 | ) | - | |||||
Balance
at end of period
|
$ | 18,109 | $ | 24,834 |
2010
|
$ | 239 | |||
2011
|
201 | ||||
2012
|
163 | ||||
2013
|
124 | ||||
2014
|
86 |
2009 |
2008
|
|||||||
(In Thousands) | ||||||||
Demand,
non-interest bearing
|
$ | 69,980 | $ | 65,115 | ||||
Demand,
interest bearing - NOW, money market and savings
|
336,222 | 297,948 | ||||||
Time,
$100,000 and over
|
72,949 | 62,898 | ||||||
Time,
other
|
56,261 | 48,878 | ||||||
$ | 535,412 | $ | 474,839 |
2010
|
$ | 102,265 | ||
2011
|
5,655 | |||
2012
|
5,728 | |||
2013
|
1,470 | |||
2014
|
14,092 | |||
$ | 129,210 |
2009
|
2008
|
|||||||
(Dollars
In Thousands)
|
||||||||
Repurchase
agreements:
|
||||||||
Balance at
year-end
|
$ | 17,065 | $ | 11,377 | ||||
Average during the
year
|
15,233 | 16,957 | ||||||
Maximum month-end
balance
|
18,330 | 19,553 | ||||||
Weighted average rate during the
year
|
1.79 | % | 2.58 | % | ||||
Weighted average rate at December
31
|
1.44 | % | 2.31 | % |
2009
|
2008
|
|||||||
(Dollars
In Thousands)
|
||||||||
Short-term
borrowings:
|
||||||||
Balance at
year-end
|
$ | - | $ | - | ||||
Average during the
year
|
- | 715 | ||||||
Maximum month-end
balance
|
- | 5,346 | ||||||
Weighted average rate during the
year
|
- | 2.80 | % |
2009
|
2008
|
|||||||
(In
Thousands)
|
||||||||
Unrealized
holding gains on available for sale securities
|
$ | 525 | $ | 458 | ||||
Unrealized
losses on securities for which
|
||||||||
a
portion of the impairment has been
|
||||||||
recognized
in income
|
(193 | ) | - | |||||
Reclassification
adjustment for gains on
sales
of securities recognized
|
||||||||
in
net income (loss)
|
(703 | ) | - | |||||
Reclassification
adjustment for
|
||||||||
other-than-temporary
credit losses
|
||||||||
on
securities included in net income (loss)
|
156 | - | ||||||
Tax
effect
|
87 | (181 | ) | |||||
Net
of Tax Amount
|
$ | (128 | ) | $ | 277 |
2009
|
2008
|
|||||||
(In
Thousands)
|
||||||||
Current
|
$ | 1,590 | $ | 1,138 | ||||
Deferred
|
(237 | ) | (908 | ) | ||||
$ | 1,353 | $ | 230 |
2009
|
2008
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
(Dollars
In Thousands)
|
||||||||||||||||
Pre-tax
book income
|
$ | (1,281 | ) | 34.0 | % | $ | 350 | 34.0 | % | |||||||
Tax
exempt interest
|
(151 | ) | 4.0 | (129 | ) | (12.5 | ) | |||||||||
Bank-owned
life insurance income
|
(49 | ) | 1.3 | (51 | ) | (5.0 | ) | |||||||||
State
income taxes, net of federal income tax benefit
|
167 | (4.4 | ) | 39 | 3.8 | |||||||||||
Goodwill
impairment
|
2,286 | (60.7 | ) | - | 0.0 | |||||||||||
Other
|
381 | (10.1 | ) | 21 | 2.1 | |||||||||||
$ | 1,353 | (35.9 | ) % | $ | 230 | 22.4 | % |
2009
|
2008
|
|||||||
(In
Thousands)
|
||||||||
Deferred
tax assets:
|
||||||||
Allowance
for loan losses
|
$ | 2,470 | $ | 1,993 | ||||
Depreciation
and amortization
|
527 | 518 | ||||||
Deferred
compensation
|
252 | 201 | ||||||
Other
|
94 | 28 | ||||||
3,343 | 2,740 | |||||||
Deferred
tax liabilities:
|
||||||||
Purchase
accounting adjustments
|
(574 | ) | (402 | ) | ||||
Unrealized
gain on investment securities available for sale
|
(174 | ) | (261 | ) | ||||
Other
|
(266 | ) | (72 | ) | ||||
(1,014 | ) | (735 | ) | |||||
Net
Deferred Tax Asset
|
$ | 2,329 | $ | 2,005 |
Years
Ended December 31,
|
||||||||
2009
|
2008
|
|||||||
(In
Thousands, Except Per Share Data)
|
||||||||
Net
(loss) income
|
$ | (5,121 | ) | $ | 798 | |||
Preferred
stock dividends and discount accretion
|
(530 | ) | - | |||||
Net
(loss) income applicable to common shareholders
|
$ | (5,651 | ) | $ | 798 | |||
Weighted
average common shares outstanding
|
7,170 | 7,153 | ||||||
Effect
of dilutive securities, stock options and warrants
|
18 | 115 | ||||||
Weighted
average common shares outstanding used to calculate
diluted
earnings (loss) per share
|
7,188 | 7,268 | ||||||
Basic
(loss) earnings per common share
|
$ | (0.79 | ) | $ | 0.11 | |||
Diluted
(loss) earnings per common share
|
$ | (0.79 | ) | $ | 0.11 |
2010
|
$ | 1,022 | ||
2011
|
1,061 | |||
2012
|
1,077 | |||
2013
|
1,028 | |||
2014
|
856 | |||
Thereafter
|
4,148 | |||
$ | 9,192 |
·
|
The
Company granted to directors non-qualified stock options to purchase an
aggregate of 66,950 shares of Company common stock. These options vested
immediately and were granted with an exercise price of $3.64 per share
based upon the average trading price of Company common stock on the grant
date.
|
·
|
The
Company granted to employees incentive stock options to purchase an
aggregate of 358,440 shares of Company common stock. These options are
scheduled to vest 20% per year over five years beginning January 20, 2010.
The options were granted with an exercise price of $3.64 per share based
upon the average trading price of Company common stock on the grant
date.
|
Number
of
Shares
|
Weighted
Average
Price
|
Weighted
Average
Remaining
Contractual
Life
|
Aggregate
Intrinsic
Value
|
||||||||||
Options
outstanding, December 31, 2007
|
812,491 | $ | 8.86 | ||||||||||
Options
exercised
|
(36,450 | ) | 4.45 | ||||||||||
Options
forfeited
|
(9,004 | ) | 13.70 | ||||||||||
Options
outstanding, December 31, 2008
|
767,037 | 9.01 | |||||||||||
Options
granted
|
425,390 | 3.64 | |||||||||||
Options
exercised
|
(13,724 | ) | 3.25 | ||||||||||
Options
forfeited
|
(142,047 | ) | 6.42 | ||||||||||
Options
outstanding, December 31, 2009
|
1,036,656 | $ | 7.21 |
5.58
years
|
$ | - | |||||||
Options
exercisable, end of year
|
693,666 | $ | 8.98 |
1.62
years
|
$ | - | |||||||
Options
outstanding – price range at end of year
|
$3.25 to
$15.33
|
||||||||||||
Options
exercisable – price range at end of year
|
$3.25 to
$15.33
|
Options
Outstanding
|
||||||
Range
of Exercise Prices
|
Number
Outstanding
at
December
31,
2009
|
Weighted-
Average
Remaining
Contractual
Life
|
Weighted-
Average
Exercise
Price
|
|||
$3.25
- $3.64
|
587,557
|
6.9
years
|
$ 3.55
|
|||
$4.23
- $4.74
|
38,483
|
2.6
years
|
4.43
|
|||
$5.35
- $5.82
|
12,419
|
0.6
years
|
5.62
|
|||
$6.04
- $6.90
|
3,363
|
1.4
years
|
6.46
|
|||
$7.82
- $7.82
|
788
|
5.0
years
|
7.82
|
|||
$8.60
- $8.79
|
52,392
|
4.0
years
|
8.79
|
|||
$10.13
- $10.66
|
9,067
|
5.0
years
|
10.64
|
|||
$12.08
- $15.33
|
332,587
|
4.1
years
|
13.72
|
|||
1,036,656
|
Dividend
yield
|
0.00% | ||
Expected
volatility
|
28.35% | ||
Risk-free
interest rate
|
1.79% | ||
Expected
life
|
7
years
|
||
Weighted
average fair value
of
options granted
|
$ | 1.24 |
Actual
|
For
Capital Adequacy
Purposes
|
To
be Well Capitalized under
Prompt
Corrective Action
Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
|
Ratio
|
||||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||||||
As
of December 31, 2009
|
||||||||||||||||||||||||
Total
capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Community
Partners Bancorp
|
$
|
63,792
|
11.74
|
%
|
$
|
>43,470
|
≥8.00
|
%
|
$
|
N/A
|
N/A
|
|||||||||||||
Two
River Community Bank
|
63,601
|
11.68
|
%
|
>43,562
|
≥8.00
|
%
|
>54,453
|
≥10.00
|
%
|
|||||||||||||||
Tier
1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Community
Partners Bancorp
|
57,608
|
10.60
|
%
|
>21,739
|
≥4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Two
River Community Bank
|
57,417
|
10.55
|
%
|
>21,769
|
≥4.00
|
%
|
>32,654
|
≥6.00
|
%
|
|||||||||||||||
Tier
1 capital (to average assets)
|
||||||||||||||||||||||||
Community
Partners Bancorp
|
57,608
|
9.28
|
%
|
>24,831
|
≥4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Two
River Community Bank
|
57,417
|
9.18
|
%
|
>24,563
|
≥4.00
|
%
|
>30,704
|
≥5.00
|
%
|
|||||||||||||||
As
of December 31, 2008
|
||||||||||||||||||||||||
Total
capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Community
Partners Bancorp
|
$
|
52,832
|
11.25
|
%
|
$
|
>37,569
|
≥8.00
|
%
|
$
|
N/A
|
$
|
N/A
|
||||||||||||
Two
River Community Bank
|
52,038
|
11.05
|
%
|
>37,675
|
≥8.00
|
%
|
>47,093
|
≥10.00
|
%
|
|||||||||||||||
Tier
1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Community
Partners Bancorp
|
46,951
|
10.00
|
%
|
>18,780
|
≥4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Two
River Community Bank
|
46,140
|
9.80
|
%
|
>18,833
|
≥4.00
|
%
|
>28,249
|
≥6.00
|
%
|
|||||||||||||||
Tier
1 capital (to average assets)
|
||||||||||||||||||||||||
Community
Partners Bancorp
|
46,951
|
8.53
|
%
|
>22,017
|
≥4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Two
River Community Bank
|
46,140
|
8.38
|
%
|
>22,024
|
≥4.00
|
%
|
>27,530
|
≥5.00
|
%
|
|||||||||||||||
|
Level
1:
|
Unadjusted
quoted prices in active markets that are accessible at the measurement
date for identical, unrestricted assets or
liabilities.
|
|
Level
2:
|
Quoted
prices in markets that are not active, or inputs that are observable
either directly or indirectly, for substantially the full term of the
asset or liability.
|
|
Level
3:
|
Prices
or valuation techniques that require inputs that are both significant to
the fair value measurement and unobservable (i.e. supported with little or
no market activity).
|
Description
|
(Level
1)
Quoted
Prices
in Active Markets for Identical Assets |
(Level
2)
Significant
Other Observable Inputs |
(Level
3)
Significant
Unobservable Inputs
|
Total
|
||||||||||||
(In
Thousands)
|
||||||||||||||||
At December 31,
2009
|
||||||||||||||||
Securities
available for sale:
|
||||||||||||||||
U.S.
Government agency securities
|
$ | - | $ | 11,102 | $ | - | $ | 11,102 | ||||||||
Municipal
securities
|
- | 2,025 | - | 2,025 | ||||||||||||
GSE:
Mortgage-backed securities
|
- | 19,606 | - | 19,606 | ||||||||||||
Corporate
debt securities
|
- | 3,676 | 140 | 3,816 | ||||||||||||
Mutual
Fund
|
1,141 | - | - | 1,141 | ||||||||||||
Total
|
$ | 1,141 | $ | 36,409 | $ | 140 | $ | 37,690 | ||||||||
At December 31,
2008
|
||||||||||||||||
Securities
available for sale:
|
||||||||||||||||
U.S.
Government agency securities
|
$ | - | $ | 23,927 | $ | - | $ | 23,927 | ||||||||
Municipal
securities
|
- | 2,267 | - | 2,267 | ||||||||||||
GSE:
Mortgage-backed securities
|
- | 27,829 | - | 27,829 | ||||||||||||
Corporate
debt securities
|
- | 1,771 | 177 | 1,948 | ||||||||||||
Total
|
$ | - | $ | 55,794 | $ | 177 | $ | 55,971 |
Fair
Value Measurements Using Significant Unobservable Inputs (Level
3)
|
||||||||
Securities
available for sale
|
||||||||
December
31, 2009
|
December
31, 2008
|
|||||||
(In
Thousands)
|
||||||||
Beginning
balance January 1
|
$ | 177 | $ | 974 | ||||
Total
gains/(losses) – (realized/unrealized):
|
||||||||
Included
in earnings
|
(156 | ) | - | |||||
Included
in other comprehensive income (loss)
|
119 | (326 | ) | |||||
Purchases,
issuances and settlements
|
- | - | ||||||
Transfers
in and/or out of Level 3
|
- | (471 | ) | |||||
Ending
Balance
|
$ | 140 | $ | 177 |
Description
|
(Level
1)
Quoted
Prices
in Active Markets for Identical Assets |
(Level
2)
Significant
Other Observable Inputs |
(Level
3)
Significant
Unobservable Inputs
|
Total
|
||||||||||||
(In
Thousands)
|
||||||||||||||||
At December 31,
2009
|
||||||||||||||||
Impaired
loans
|
$ | - | $ | - | $ | 6,959 | $ | 6,959 | ||||||||
Goodwill
|
- | - | 18,109 | 18,109 | ||||||||||||
Property
held for sale
|
- | - | 1,100 | 1,100 | ||||||||||||
At December 31,
2008
|
||||||||||||||||
Impaired
loans
|
$ | - | $ | - | $ | 6,175 | $ | 6,175 |
|
·
|
Impaired loans –
Impaired loans measured at fair value are those loans in which the
Company has measured impairment generally based on the fair value of the
loan’s collateral. Fair value is generally determined based upon
independent third party appraisals of the properties, or discounted cash
flows based upon the expected proceeds. These assets are included as Level
3 fair values, based upon the lowest level of input that is significant to
the fair value measurements. At December 31, 2009, fair value consists of
the loan balances of $6,959,000, net of valuation allowances of
$1,313,000. At December 31, 2008, fair value consists of loan balances of
$6,175,000, net of a valuation allowance of
$2,257,000.
|
|
·
|
Goodwill – Goodwill,
which is evaluated for impairment on an annual basis, was written down to
a fair value of $18,109,000. An impairment charge of $6,725,000 was taken
during 2009. See Note 6 for further details on
goodwill.
|
|
·
|
Property held for sale
– Real estate originally classified as bank premises for a planned
branch, was reclassified during 2009 to held for sale. This property is
carried in other assets at fair value based upon the appraised value of
the property. An impairment charge of $52,000 was recorded during the year
ended December 31, 2009.
|
2009
|
2008
|
|||||||
Carrying
Amount
|
Estimated
Fair
Value
|
Carrying
Amount
|
Estimated
Fair
Value
|
|||||
(In
Thousands)
|
Financial
assets:
|
||||||||||||||||
Cash and cash
equivalents
|
$ | 42,735 | $ | 42,735 | $ | 23,017 | $ | 23,017 | ||||||||
Securities available for
sale
|
37,690 | 37,690 | 55,971 | 55,971 | ||||||||||||
Securities held to
maturity
|
10,618 | 10,266 | 7,940 | 7,074 | ||||||||||||
Restricted
stock
|
1,000 | 1,000 | 755 | 755 | ||||||||||||
Loans receivable
|
507,215 | 486,729 | 441,965 | 444,786 | ||||||||||||
Accrued interest
receivable
|
1,876 | 1,876 | 1,951 | 1,951 | ||||||||||||
Financial
liabilities:
|
||||||||||||||||
Deposits
|
535,412 | 536,101 | 474,839 | 475,534 | ||||||||||||
Securities sold under agreements
to repurchase
|
17,065 | 17,065 | 11,377 | 11,377 | ||||||||||||
Long-term debt
|
7,500 | 8,111 | 7,500 | 7,562 | ||||||||||||
Accrued interest
payable
|
164 | 164 | 282 | 282 | ||||||||||||
Off-balance
sheet financial instruments:
|
||||||||||||||||
Commitments to extend credit and
outstanding letters
of credit
|
- | - | - | - |
December
31,
|
||||||||
2009
|
2008
|
|||||||
(In
Thousands)
|
||||||||
Assets
|
||||||||
Cash
and cash equivalents
|
$ | 260 | $ | 481 | ||||
Investments
in subsidiaries
|
76,646 | 72,501 | ||||||
Other
assets
|
- | 498 | ||||||
Total
assets
|
$ | 76,906 | $ | 73,480 | ||||
Liabilities
and Shareholders’ Equity
|
||||||||
Other
liabilities
|
$ | 69 | $ | 168 | ||||
Shareholders’
equity
|
76,837 | 73,312 | ||||||
Total
liabilities and shareholders’ equity
|
$ | 76,906 | $ | 73,480 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
(In
Thousands)
|
||||||||
Dividends
from Bank subsidiaries
|
$ | - | $ | - | ||||
Management
fees from subsidiaries
|
- | 1,094 | ||||||
- | 1,094 | |||||||
Other
operating expenses
|
150 | 1,094 | ||||||
Income
(loss) before income taxes
|
(150 | ) | - | |||||
Income
tax expense
|
244 | - | ||||||
Income
(loss) before undistributed income of subsidiaries
|
(394 | ) | - | |||||
Equity
in undistributed (loss) income of subsidiaries
|
(4,727 | ) | 798 | |||||
Net
(loss) income
|
$ | (5,121 | ) | $ | 798 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
(In
Thousands)
|
||||||||
Cash
flows from operating activities:
|
||||||||
Net
(loss) income
|
$ | (5,121 | ) | $ | 798 | |||
Adjustments
to reconcile net (loss)
income to net cash provided by operating activities: |
||||||||
Equity
in undistributed net (loss) income of subsidiaries
|
4,727 | (798 | ) | |||||
Stock
option compensation expense
|
150 | - | ||||||
Other,
net
|
335 | 110 | ||||||
Net
cash provided by operating activities
|
91 | 110 | ||||||
Cash
flows from investing activities:
|
||||||||
Contribution
to subsidiary
|
(9,000 | ) | - | |||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from options exercised
|
44 | 165 | ||||||
Proceeds
from issuance of preferred stock
|
9,000 | - | ||||||
Payment
of dividends on preferred stock
|
(356 | ) | - | |||||
Net
cash provided by financing activities
|
8,688 | 165 | ||||||
(Decrease)
Increase in cash and cash equivalents
|
(221 | ) | 275 | |||||
Cash
and cash equivalents at beginning of period
|
481 | 206 | ||||||
Cash
and cash equivalents at end of year
|
$ | 260 | $ | 481 |
2009
|
||||||||||||||||
Fourth
Quarter
|
Third
Quarter
|
Second
Quarter
|
First
Quarter
|
|||||||||||||
Interest
income
|
$ | 7,839 | $ | 7,797 | $ | 7,392 | $ | 7,154 | ||||||||
Interest
expense
|
1,947 | 2,029 | 2,266 | 2,615 | ||||||||||||
Net
interest income
|
5,892 | 5,768 | 5,126 | 4,539 | ||||||||||||
Provision
for loan losses
|
1,025 | 675 | 355 | 150 | ||||||||||||
Net
interest income after provision for loan losses
|
4,867 | 5,093 | 4,771 | 4,389 | ||||||||||||
Non-interest
income
|
650 | 368 | 357 | 874 | ||||||||||||
Goodwill
impairment charge
|
- | 6,725 | - | - | ||||||||||||
Non-interest
expense
|
4,428 | 4,675 | 4,842 | 4,467 | ||||||||||||
Income
(loss) before income taxes
|
1,089 | (5,939 | ) | 286 | 796 | |||||||||||
Income
taxes
|
707 | 282 | 80 | 284 | ||||||||||||
Net
income (loss)
|
382 | (6,221 | ) | 206 | 512 | |||||||||||
Preferred
stock dividends & discount accretion
|
(145 | ) | (145 | ) | (144 | ) | (96 | ) | ||||||||
Net
income (loss) available to common shareholders
|
$ | 237 | $ | (6,366 | ) | $ | 62 | $ | 416 | |||||||
Per
Common Share Data:
|
||||||||||||||||
Basic
earnings (loss)
|
$ | 0.03 | $ | (0.89 | ) | $ | 0.01 | $ | 0.06 | |||||||
Diluted
earnings (loss)
|
$ | 0.03 | $ | (0.89 | ) | $ | 0.01 | $ | 0.06 |
2008
|
||||||||||||||||
Fourth
Quarter
|
Third
Quarter
|
Second Quarter
|
First
Quarter
|
|||||||||||||
Interest
income
|
$ | 7,511 | $ | 7,719 | $ | 7,561 | $ | 8,019 | ||||||||
Interest
expense
|
3,137 | 2,996 | 2,692 | 3,152 | ||||||||||||
Net
interest income
|
4,374 | 4,723 | 4,869 | 4,867 | ||||||||||||
Provision
for loan losses
|
1,348 | 279 | 589 | 85 | ||||||||||||
Net
interest income after provision for loan losses
|
3,026 | 4,444 | 4,280 | 4,782 | ||||||||||||
Non-interest
income
|
417 | 486 | 385 | 378 | ||||||||||||
Non-interest
expense
|
4,432 | 4,445 | 4,249 | 4,044 | ||||||||||||
(Loss)
income before income taxes
|
(989 | ) | 485 | 416 | 1,116 | |||||||||||
Income
taxes
|
(453 | ) | 156 | 126 | 401 | |||||||||||
Net
(loss) income
|
$ | (536 | ) | $ | 329 | $ | 290 | $ | 715 | |||||||
Net
(loss) income per common share:
|
||||||||||||||||
Basic
(loss) earnings
|
$ | (0.07 | ) | $ | 0.05 | $ | 0.04 | $ | 0.10 | |||||||
Diluted
(loss) earnings
|
$ | (0.07 | ) | $ | 0.05 | $ | 0.04 | $ | 0.10 |
COMMUNITY
PARTNERS BANCORP
|
|||
Date: March
31, 2010
|
By:
|
/s/ WILLIAM D. MOSS | |
William
D. Moss
|
|||
President
and Chief Executive Officer
|
Signature
|
Capacity
|
Date
|
|
/s/ CHARLES T. PARTON
|
Chairman
of the Board
|
March
31, 2010
|
|
Charles
T. Parton
|
|||
/s/ JOSEPH F.X. O’SULLIVAN
|
Vice
Chairman of the Board
|
March
31, 2010
|
|
Joseph
F.X. O’Sullivan
|
|||
/s/ FRANK J. PATOCK, JR.
|
Vice
Chairman of the Board
|
March
31, 2010
|
|
Frank
J. Patock, Jr.
|
|||
/s/ MICHAEL W. KOSTELNIK,
JR.
|
Director
|
March
31, 2010
|
|
Michael
W. Kostelnik, Jr.
|
|||
/s/ ROBERT E. GREGORY
|
Director
|
March
31, 2010
|
|
Robert
E. Gregory
|
|||
/s/ FREDERICK H. KURTZ
|
Director
|
March
31, 2010
|
|
Frederick
H. Kurtz
|
|||
/s/ JOHN J. PERRI, JR. CPA
|
Director
|
March
31, 2010
|
|
John
J. Perri, Jr.
|
|||
/s/ ROBERT B. GROSSMAN, MD
|
Director
|
March
31, 2010
|
|
Robert
B. Grossman, MD
|
|||
/s/ JOHN E. HOLOBINKO, ESQ.
|
Director
|
March
31, 2010
|
|
John
E. Holobinko, ESQ.
|
|||
/s/ WILLIAM F. LaMORTE
|
Director
|
March
31, 2010
|
|
William
F. LaMorte
|
|||
/s/ WILLIAM STATTER
|
Director
|
March
31, 2010
|
|
William
Statter
|
|||
/s/ ROBIN
ZAGER
|
Director
|
March
31, 2010
|
|
Robin
Zager
|
/s/ WILLIAM D. MOSS
|
President,
Chief Executive Officer, Director
|
March
31, 2010
|
William
D. Moss
|
||
/s/ MICHAEL J. GORMLEY
|
Executive
Vice President, Chief Operating Officer
|
March
31, 2010
|
Michael
J. Gormley
|
and
Chief Financial Officer
(Principal
Financial and Accounting Officer)
|
Exhibit
No.
|
Description
|
||
3
|
(i)(A)
|
Amended
and Restated Certificate of Incorporation of the Registrant (incorporated
by reference to Exhibit 3(i)(A) to the Registrant’s Annual Report on Form
10-K for the year ended December 31, 2008 filed with the SEC on March 31,
2009)
|
|
3
|
(ii)(A)
|
By-laws
of the Registrant, as amended (conformed copy) (incorporated by reference
to Exhibit 3(ii)(A) to the Registrant’s Current Report on Form 8-K filed
with the SEC on December 19, 2007)
|
|
4.1
|
Specimen
certificate representing the Registrant’s common stock, no par value per
share (incorporated by reference to Exhibit 4.1 to the Registrant’s
Registration Statement on Form S-4/A filed with the SEC on January 6, 2006
(the “January S-4/A”))
|
||
4.2
|
Warrant,
dated January 30, 2009, to purchase up to 288,462 shares of the
Registrant’s common stock (incorporated by reference to Exhibit 4.1 to the
Registrant’s Current Report on Form 8-K filed with the SEC on January 30,
2009)
|
||
10.1
|
#
|
Form
of Change in Control Agreement between Two River Community Bank and each
of William D. Moss, Michael J. Gormley, Antha J. Stephens, and Alan B.
Turner (incorporated by reference to Exhibit 10.3 to the
S-4)
|
|
10.2
|
#
|
Supplemental
Executive Retirement Agreement between Two River Community Bank and
William D. Moss (incorporated by reference to Exhibit 10.5 to the
S-4)
|
|
10.3
|
#
|
Supplemental
Executive Retirement Agreement between Two River Community Bank and
Michael J. Gormley (incorporated by reference to Exhibit 10.6 to the
S-4)
|
|
10.4
|
#
|
Supplemental
Executive Retirement Agreement between Two River Community Bank and Antha
Stephens (incorporated by reference to Exhibit 10.7 to the
S-4)
|
|
10.5
|
#
|
Supplemental
Executive Retirement Agreement between Two River Community Bank and Alan
Turner (incorporated by reference to Exhibit 10.8 to the
S-4)
|
|
10.6
|
#
|
Two
River Community Bank 2003 Incentive Stock Option Plan (incorporated by
reference to Exhibit 10.9 to the S-4)
|
|
10.7
|
#
|
Two
River Community Bank 2003 Non-qualified Stock Option Plan (incorporated by
reference to Exhibit 10.10 to the S-4)
|
|
10.8
|
#
|
Two
River Community Bank 2001 Incentive Stock Option Plan (incorporated by
reference to Exhibit 10.11 to the
S-4)
|
10.9
|
#
|
Two
River Community Bank 2001 Non-qualified Stock Option Plan (incorporated by
reference to Exhibit 10.12 to the S-4)
|
|
10.10
|
Services
agreement between Two River Community Bank and Phoenix International Ltd.,
Inc. dated November 18, 1999, and subsequent amendment #1 dated February
1, 2005 (incorporated by reference to Exhibit 10.24 to the
S-4)
|
||
10.11
|
Services
agreement between Two River Community Bank and Online Resources
Corporation/Quotien, dated March 17, 2003 (incorporated by reference to
Exhibit 10.25 to the S-4)
|
||
10.12
|
#
|
The
Town Bank of Westfield 1999 Employee Stock Option Plan (incorporated by
reference to Exhibit 10.26 to the S-4)
|
|
10.13
|
#
|
The
Town Bank of Westfield 2000 Employee Stock Option Plan (incorporated by
reference to Exhibit 10.27 to the S-4)
|
|
10.14
|
#
|
The
Town Bank of Westfield 2001 Employee Stock Option Plan (incorporated by
reference to Exhibit 10.28 to the S-4)
|
|
10.15
|
#
|
The
Town Bank of Westfield 2002 Employee Stock Option Plan (incorporated by
reference to Exhibit 10.29 to the S-4)
|
|
10.16
|
#
|
The
Town Bank of Westfield 1999 Director Stock Option Plan (incorporated by
reference to Exhibit 10.30 to the S-4)
|
|
10.17
|
#
|
The
Town Bank of Westfield 2000 Director Stock Option Plan (incorporated by
reference to Exhibit 10.31 to the S-4)
|
|
10.18
|
#
|
The
Town Bank of Westfield 2001 Director Stock Option Plan (incorporated by
reference to Exhibit 10.32 to the S-4)
|
|
10.19
|
MAC(R)
Network Participation Agreement dated as of September 20, 2000 by and
between The Town Bank and Money Access Service Inc. (predecessor in
interest to Star Networks Inc.) (including all addenda, schedules and
exhibits, as amended from time to time) (incorporated by reference to
Exhibit 10.38 to the S-4)
|
||
10.20
|
#
|
Amendment
dated January 4, 2006 to The Town Bank 1999 Employee Stock Option Plan
(incorporated by reference to Exhibit 10.49 to the January
S-4/A)
|
|
10.21
|
#
|
Amendment
dated January 4, 2006 to The Town Bank 2000 Employee Stock Option Plan
(incorporated by reference to Exhibit 10.50 to the January
S-4/A)
|
|
10.22
|
#
|
Amendment
dated January 4, 2006 to The Town Bank 2001 Employee Stock Option Plan
(incorporated by reference to Exhibit 10.51 to the January
S-4/A)
|
|
10.23
|
#
|
Amendment
dated January 4, 2006 to The Town Bank 2002 Employee Stock Option Plan
(incorporated by reference to Exhibit 10.52 to the January
S-4/A)
|
|
10.24
|
#
|
Community
Partners Bancorp 2007 Equity Incentive Plan (incorporated by reference to
Exhibit A to the Registrant’s Definitive Proxy Statement on Schedule 14A
filed with the SEC on April 17,
2007)
|
10.
25
|
#
|
Change
in Control and Assumption Agreement, made as of June 1, 2007, by and
between Community Partners Bancorp, Two River Community Bank and William
D. Moss (incorporated by reference to Exhibit 10.2 to the Registrant’s
Current Report on Form 8-K filed with the SEC on July 10,
2007)
|
|
10.26
|
#
|
Change
in Control and Assumption Agreement, made as of June 1, 2007, by and
between Community Partners Bancorp, Two River Community Bank and Michael
J. Gormley (incorporated by reference to Exhibit 10.3 to the Registrant’s
Current Report on Form 8-K filed with the SEC on July 10,
2007)
|
|
10.27
|
#
|
Excise
Tax Reimbursement Agreement, made as of June 1, 2007, by and between
Community Partners Bancorp and William D. Moss (incorporated by reference
to Exhibit 10.6 to the Registrant’s Current Report on Form 8-K filed with
the SEC on July 10, 2007)
|
|
10.28
|
#
|
Excise
Tax Reimbursement Agreement, made as of June 1, 2007, by and between
Community Partners Bancorp and Michael J. Gormley (incorporated by
reference to Exhibit 10.8 to the Registrant’s Current Report on Form 8-K
filed with the SEC on July 10, 2007)
|
|
10.29
|
Letter
Agreement, dated January 30, 2009, including Securities Purchase Agreement
– Standard Terms incorporated by reference therein, between the Registrant
and the United States Department of the Treasury, with respect to the
issuance and sale of the Senior Preferred Stock and the Warrant
(incorporated by reference to Exhibit 10.1 to the Registrant’s Current
Report on Form 8-K filed with the SEC on January 30,
2009)
|
||
10.30
|
#
|
Form
of Waiver, executed by each of Messrs. Barry B. Davall, Michael J.
Gormley, William D. Moss and Robert W. Dowens, Sr. (incorporated by
reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K
filed with the SEC on January 30, 2009)
|
|
10.31
|
#
|
Form
of Senior Executive Officer Agreement, executed by each of Messrs. Barry
B. Davall, Michael J. Gormley, William D. Moss and Robert W. Dowens, Sr.
(incorporated by reference to Exhibit 10.3 to the Registrant’s Current
Report on Form 8-K filed with the SEC on January 30,
2009)
|
|
10.32
|
#
|
First
Amendment to the Two River Community Bank Supplemental Executive
Retirement Agreement dated January 1, 2005 by and between Two River
Community Bank and Michael J. Gormley, effective as of January 1, 2005
(incorporated by reference to Exhibit 10.7 to the Registrant’s Quarterly
Report on Form 10-Q for the quarterly period ended March 31, 2009 filed
with the SEC on May 15, 2009)
|
|
10.33
|
#
|
First
Amendment to Change in Control and Assumption Agreement dated June 1, 2007
(the “2007 Gormley CIC Agreement”) by and between Community Partners
Bancorp, Two River Community Bank and Michael J. Gormley, made as of
October 30, 2008 (incorporated by reference to Exhibit 10.8 to the
Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2009 filed with the SEC on May 15,
2009)
|
10.34
|
#
|
Continuation
of Benefits Agreement, made as of October 30, 2008, by and between
Community Partners Bancorp, Two River Community Bank and Michael J.
Gormley related to the 2007 Gormley CIC Agreement (incorporated by
reference to Exhibit 10.9 to the Registrant’s Quarterly Report on Form
10-Q for the quarterly period ended March 31, 2009 filed with the SEC on
May 15, 2009)
|
|
10.35
|
#
|
First
Amendment to Change in Control Agreement dated December 9, 2004 (the “2004
Gormley CIC Agreement”) by and between Community Partners Bancorp, Two
River Community Bank and Michael J. Gormley, made as of October 30, 2008
(incorporated by reference to Exhibit 10.10 to the Registrant’s Quarterly
Report on Form 10-Q for the quarterly period ended March 31, 2009 filed
with the SEC on May 15, 2009)
|
|
10.36
|
#
|
Continuation
of Benefits Agreement, made as of October 30, 2008, by and between
Community Partners Bancorp, Two River Community Bank and Michael J.
Gormley related to the 2004 Gormley CIC Agreement (incorporated by
reference to Exhibit 10.11 to the Registrant’s Quarterly Report on Form
10-Q for the quarterly period ended March 31, 2009 filed with the SEC on
May 15, 2009)
|
|
10.37
|
#
|
First
Amendment to Excise Tax Reimbursement Agreement dated on and as of June 1,
2007 by and between Community Partners Bancorp and Michael J. Gormley,
entered into as of October 30, 2008 (incorporated by reference to Exhibit
10.12 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly
period ended March 31, 2009 filed with the SEC on May 15,
2009)
|
|
10.38
|
#
|
First
Amendment to the Two River Community Bank Supplemental Executive
Retirement Agreement dated July 7, 2005 by and between Two River Community
Bank and William D. Moss, effective as of January 1, 2005 (incorporated by
reference to Exhibit 10.13 to the Registrant’s Quarterly Report on Form
10-Q for the quarterly period ended March 31, 2009 filed with the SEC on
May 15, 2009)
|
|
10.39
|
#
|
First
Amendment to Change in Control and Assumption Agreement dated June 1, 2007
(the “2007 Moss CIC Agreement”) by and between Community Partners Bancorp,
Two River Community Bank and William D. Moss, made as of October 31, 2008
(incorporated by reference to Exhibit 10.14 to the Registrant’s Quarterly
Report on Form 10-Q for the quarterly period ended March 31, 2009 filed
with the SEC on May 15, 2009)
|
|
10.40
|
#
|
Continuation
of Benefits Agreement, made as of October 31, 2008, by and between
Community Partners Bancorp, Two River Community Bank and William D. Moss
related to the 2007 Moss CIC Agreement (incorporated by reference to
Exhibit 10.15 to the Registrant’s Quarterly Report on Form 10-Q for the
quarterly period ended March 31, 2009 filed with the SEC on May 15,
2009)
|
|
10.41
|
#
|
First
Amendment to Change in Control dated December 27, 2004 (the “2004 Moss CIC
Agreement”) by and between Community Partners Bancorp, Two River Community
Bank and William D. Moss, made as of October 31, 2008 (incorporated by
reference to Exhibit 10.16 to the Registrant’s Quarterly Report on Form
10-Q for the quarterly period ended March 31, 2009 filed with the SEC on
May 15, 2009)
|
10.42
|
#
|
Continuation
of Benefits Agreement, made as of October 31, 2008, by and between
Community Partners Bancorp, Two River Community Bank and William D. Moss
related to the 2004 Moss CIC Agreement (incorporated by reference to
Exhibit 10.17 to the Registrant’s Quarterly Report on Form 10-Q for the
quarterly period ended March 31, 2009 filed with the SEC on May 15,
2009)
|
|
10.43
|
#
|
First
Amendment to Excise Tax Reimbursement Agreement dated on and as of June 1,
2007 by and between Community Partners Bancorp and William D. Moss,
entered into as of October 31, 2008 (incorporated by reference to Exhibit
10.18 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly
period ended March 31, 2009 filed with the SEC on May 15,
2009)
|
|
10.44
|
#
|
First
Amendment to the Two River Community Bank Supplemental Executive
Retirement Agreement dated January 1, 2005 by and between Two River
Community Bank and Antha J. Stephens, effective as of January 1, 2005
(incorporated by reference to Exhibit 10.19 to the Registrant’s Quarterly
Report on Form 10-Q for the quarterly period ended March 31, 2009 filed
with the SEC on May 15, 2009)
|
|
10.45
|
#
|
First
Amendment to the Two River Community Bank Supplemental Executive
Retirement Agreement dated January 1, 2005 by and between Two River
Community Bank and Alan B. Turner, effective as of January 1, 2005
(incorporated by reference to Exhibit 10.20 to the Registrant’s Quarterly
Report on Form 10-Q for the quarterly period ended March 31, 2009 filed
with the SEC on May 15, 2009)
|
|
21
|
*
|
Subsidiaries
of the Registrant
|
|
23
|
*
|
Consent
of Independent Registered Public Accounting Firm
|
|
31.1
|
*
|
Certification
of William D. Moss, President and Chief Executive Officer of the
Registrant, pursuant to Securities Exchange Act Rule
13a-14(a)
|
|
31.2
|
*
|
Certification
of Michael J. Gormley, Chief Financial Officer of the Registrant, pursuant
to Securities Exchange Act Rule 13a-14(a)
|
|
32
|
*
|
Certifications
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
The Sarbanes-Oxley Act of 2002, signed by William D. Moss, President and
Chief Executive Officer of the Registrant, and Michael J. Gormley, Chief
Financial Officer of the Registrant
|
|
99.1
|
*
|
Certification
of William D. Moss, President and Chief Executive Officer of the
Registrant, under Section 111(b)(4) of EESA
|
|
99.2
|
*
|
Certification
of Michael J. Gormley, Chief Financial Officer of the
Registrant, under Section 111(b)(4) of
EESA
|