Stewardship
Financial Corporation
|
(Exact
name of registrant as specified in its
charter)
|
New Jersey
|
22-3351447
|
|||
(State
of other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|||
630 Godwin Avenue, Midland Park,
NJ
|
07432
|
|||
(Address
of principal executive offices)
|
(Zip
Code)
|
Common Stock, no par
value
|
Title
of each class
|
Large
accelerated filer o
|
Accelerated
filer
o
|
Non-accelerated
filer o
|
Smaller
reporting company x
|
PART
I
|
||
Item
1.
|
5
|
|
Item
1A.
|
11
|
|
Item
1B.
|
14
|
|
Item
2.
|
15
|
|
Item
3.
|
15
|
|
Item
4.
|
16
|
|
PART
II
|
||
Item
5.
|
16
|
|
Item
6.
|
18
|
|
Item
7.
|
19
|
|
Item
7A.
|
35
|
|
Item
8.
|
35
|
|
Item
9.
|
71
|
|
Item
9A.
|
71
|
|
Item
9B.
|
71
|
|
PART
III
|
||
Item
10.
|
71
|
|
Item
11.
|
72
|
|
Item
12.
|
72
|
|
Item
13.
|
73
|
|
Item
14.
|
73
|
|
PART
IV
|
||
Item
15.
|
73
|
|
§
|
Impairment
charges with respect to securities.
|
§
|
Unanticipated
costs in connection with new branch
openings.
|
§
|
Further
deterioration of the economy.
|
§
|
Decline
in commercial and residential real estate
values.
|
§
|
Unexpected
changes in interest rates.
|
§
|
Inability
to manage growth in commercial
loans.
|
§
|
Unexpected
loan prepayment volume.
|
§
|
Unanticipated
exposure to credit risks.
|
§
|
Insufficient
allowance for loan losses.
|
§
|
Competition
from other financial institutions.
|
§
|
Adverse
effects of government regulation or different than anticipated effects
from existing regulations.
|
§
|
Passage
by Congress of a law which unilaterally amends the terms of the Treasury’s
investment in us in a way that adversely affects
us.
|
§
|
A
decline in the levels of loan quality and origination
volume.
|
§
|
A
decline in deposits.
|
§
|
Other
unexpected events.
|
|
·
|
actual
or anticipated fluctuation in operating
results;
|
|
·
|
changes
in interest rates;
|
|
·
|
changes
in legal or regulatory environment;
|
|
·
|
press
releases, publicity, or
announcements;
|
|
·
|
changes
in expectation of our future financial
performance;
|
|
·
|
future
sales of our common stock;
|
|
·
|
changes
in economic conditions; and
|
|
·
|
other
developments affecting us or our
competitors
|
Leased
|
Date
of Lease
|
|
Location
|
or Owned
|
Expiration
|
612
Godwin Avenue
|
Owned
|
---
|
Midland
Park, NJ
|
||
630
Godwin Avenue
|
Owned
|
---
|
Midland
Park, NJ
|
||
386
Lafayette Avenue
|
Owned
|
---
|
Hawthorne,
NJ
|
||
87
Berdan Avenue
|
Leased
|
06/30/14
|
Wayne,
NJ
|
||
64
Franklin Turnpike
|
Owned
|
---
|
Waldwick,
NJ
|
||
190
Franklin Avenue
|
Leased
|
09/30/12
|
Ridgewood,
NJ
|
||
121
Franklin Avenue
|
Leased
|
01/31/15
|
Ridgewood,
NJ
|
||
311
Valley Road
|
Leased
|
11/30/13
|
Wayne,
NJ
|
||
249
Newark Pompton Turnpike
|
Owned
|
---
|
Pequannock,
NJ
|
||
1111
Goffle Road
|
Leased
|
05/31/11
|
Hawthorne,
NJ
|
||
400
Hamburg Turnpike
|
Leased
|
04/30/14
|
Wayne,
NJ
|
||
2
Changebridge Road
|
Leased
|
06/30/15
|
Montville,
NJ
|
||
378
Franklin Avenue
|
Leased
|
05/31/26
|
Wyckoff,
NJ
|
||
200
Kinderkamack Road
|
Leased
|
05/20/26
|
Westwood,
NJ
|
||
33
Sicomac Avenue
|
Leased
|
10/31/14
|
North
Haledon, NJ
|
Bid
|
Cash
|
|||||||||||
High
|
Low
|
Dividend
|
||||||||||
Year
Ended December 31, 2009
|
||||||||||||
Fourth
quarter
|
$ | 10.50 | $ | 8.26 | $ | 0.090 | ||||||
Third
quarter
|
10.45 | 7.95 | 0.090 | |||||||||
Second
quarter
|
11.21 | 8.33 | 0.090 | |||||||||
First
quarter
|
11.41 | 7.09 | 0.090 |
Year
Ended December 31, 2008
|
||||||||||||
Fourth
quarter
|
$ | 13.10 | $ | 7.24 | $ | 0.086 | ||||||
Third
quarter
|
12.48 | 10.89 | 0.086 | |||||||||
Second
quarter
|
13.15 | 11.09 | 0.082 | |||||||||
First
quarter
|
13.61 | 11.79 | 0.082 |
Period
Ending
|
||||||||||||||||||||||||
Index
|
12/31/04
|
12/31/05
|
12/31/06
|
12/31/07
|
12/31/08
|
12/31/09
|
||||||||||||||||||
Stewardship
Financial Corporation
|
$ | 100.00 | $ | 98.41 | $ | 96.59 | $ | 104.05 | $ | 84.77 | $ | 78.09 | ||||||||||||
NASDAQ
Composite
|
$ | 100.00 | $ | 101.37 | $ | 111.03 | $ | 21.92 | $ | 72.49 | $ | 104.31 | ||||||||||||
NASDAQ
Bank
|
$ | 100.00 | $ | 95.67 | $ | 106.20 | $ | 82.76 | $ | 62.96 | $ | 51.31 | ||||||||||||
Peer
Group 2008
|
$ | 100.00 | $ | 96.88 | $ | 104.01 | $ | 88.72 | $ | 65.56 | $ | 49.84 | ||||||||||||
Peer
Group 2009
|
$ | 100.00 | $ | 98.07 | $ | 103.45 | $ | 89.85 | $ | 52.72 | $ | 48.46 |
December
31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(Dollars
in thousands, except per share amounts)
|
||||||||||||||||||||
Earnings
Summary:
|
||||||||||||||||||||
Net
interest income
|
$ | 23,345 | $ | 22,303 | $ | 19,430 | $ | 19,084 | $ | 18,211 | ||||||||||
Provision
for loan losses
|
(3,575 | ) | (3,585 | ) | (530 | ) | (264 | ) | (600 | ) | ||||||||||
Net
interest income after provision for loan losses
|
19,770 | 18,718 | 18,900 | 18,820 | 17,611 | |||||||||||||||
Noninterest
income
|
3,133 | 4,217 | 4,414 | 4,189 | 3,240 | |||||||||||||||
Noninterest
expense
|
17,790 | 17,986 | 16,629 | 15,629 | 13,867 | |||||||||||||||
Income
before income tax expense
|
5,113 | 4,949 | 6,685 | 7,380 | 6,984 | |||||||||||||||
Income
tax expense
|
1,479 | 1,448 | 2,078 | 2,627 | 2,504 | |||||||||||||||
Net
income
|
3,634 | 3,501 | 4,607 | 4,753 | 4,480 | |||||||||||||||
Dividends
on preferred stock and accretion
|
504 | - | - | - | - | |||||||||||||||
Net
income available to common stockholders
|
$ | 3,130 | $ | 3,501 | $ | 4,607 | $ | 4,753 | $ | 4,480 | ||||||||||
Common
Share Data: (1)
|
||||||||||||||||||||
Basic
net income
|
$ | 0.54 | $ | 0.60 | $ | 0.79 | $ | 0.82 | $ | 0.77 | ||||||||||
Diluted
net income
|
0.54 | 0.60 | 0.79 | 0.81 | 0.77 | |||||||||||||||
Cash
dividends declared
|
0.36 | 0.34 | 0.31 | 0.26 | 0.22 | |||||||||||||||
Book
value at year end
|
7.50 | 7.31 | 7.02 | 6.42 | 5.78 | |||||||||||||||
Average
shares outstanding net of treasury stock
|
5,832 | 5,854 | 5,836 | 5,812 | 5,778 | |||||||||||||||
Shares
outstanding at year end
|
5,835 | 5,854 | 5,851 | 5,809 | 5,772 | |||||||||||||||
Dividend
payout ratio
|
58.15 | % | 56.18 | % | 39.35 | % | 32.19 | % | 27.79 | % | ||||||||||
Selected
Consolidated Ratios:
|
||||||||||||||||||||
Return
on average assets
|
0.57 | % | 0.58 | % | 0.86 | % | 0.96 | % | 1.00 | % | ||||||||||
Return
on average stockholders' equity
|
5.92 | % | 8.34 | % | 11.76 | % | 13.41 | % | 13.86 | % | ||||||||||
Average
stockholders' equity as a percentage of
average
total assets
|
8.23 | % | 6.98 | % | 7.34 | % | 7.19 | % | 7.20 | % | ||||||||||
Leverage
(Tier-I) capital (2)
|
9.22 | % | 8.01 | % | 8.56 | % | 8.85 | % | 8.71 | % | ||||||||||
Tier-I
risk based capital (3)
|
11.99 | % | 10.50 | % | 10.76 | % | 11.25 | % | 11.16 | % | ||||||||||
Total
risk based capital (3)
|
13.24 | % | 11.60 | % | 11.76 | % | 12.28 | % | 12.21 | % | ||||||||||
Allowance
for loan loss to total loans
|
1.50 | % | 1.18 | % | 1.06 | % | 1.11 | % | 1.11 | % | ||||||||||
Nonperforming
loans to total loans
|
4.98 | % | 1.46 | % | 0.11 | % | 0.41 | % | 0.15 | % | ||||||||||
Selected
Year-end Balances:
|
||||||||||||||||||||
Total
assets
|
$ | 663,844 | $ | 611,816 | $ | 571,905 | $ | 519,749 | $ | 482,727 | ||||||||||
Total
loans, net of allowance for loan loss
|
453,119 | 434,103 | 415,690 | 365,443 | 341,976 | |||||||||||||||
Total
deposits
|
529,930 | 506,531 | 472,299 | 434,223 | 403,466 | |||||||||||||||
Stockholders'
equity
|
53,511 | 42,796 | 41,090 | 37,306 | 33,384 |
(1)
|
All
share and per share amounts have been restated to reflect 5% stock
dividends paid November 2005, 2006, 2007, 2008 and 2009 and a 4 for 3
stock split that occurred July
2005.
|
(2)
|
As
a percentage of average quarterly
assets.
|
(3)
|
As
a percentage of total risk-weighted
assets.
|
2009
|
2008
|
2007
|
||||||||||||||||||||||||||||||||||
Average
|
Average
|
Average
|
||||||||||||||||||||||||||||||||||
Interest
|
Rates
|
Interest
|
Rates
|
Interest
|
Rates
|
|||||||||||||||||||||||||||||||
Average
|
Income/
|
Earned/
|
Average
|
Income/
|
Earned/
|
Average
|
Income/
|
Earned/
|
||||||||||||||||||||||||||||
Balance
|
Expense
|
Paid
|
Balance
|
Expense
|
Paid
|
Balance
|
Expense
|
Paid
|
||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||||||||||||||
Loans
(1)
|
$ | 445,586 | $ | 26,981 | 6.06 | % | $ | 437,812 | $ | 28,664 | 6.55 | % | $ | 385,954 | $ | 27,517 | 7.13 | % | ||||||||||||||||||
Taxable
investment securities (1)
|
138,514 | 6,131 | 4.43 | 102,930 | 5,377 | 5.22 | 93,732 | 4,921 | 5.25 | |||||||||||||||||||||||||||
Tax-exempt
investment securities (1) (2)
|
30,057 | 1,590 | 5.29 | 27,765 | 1,482 | 5.34 | 23,372 | 1,200 | 5.13 | |||||||||||||||||||||||||||
Other
interest-earning assets
|
124 | 9 | 7.26 | 2,624 | 66 | 2.52 | 631 | 45 | 7.13 | |||||||||||||||||||||||||||
Total
interest-earning assets
|
614,281 | 34,711 | 5.65 | 571,131 | 35,589 | 6.23 | 503,689 | 33,683 | 6.69 | |||||||||||||||||||||||||||
Non-interest-earning
assets:
|
||||||||||||||||||||||||||||||||||||
Allowance
for loan losses
|
(6,193 | ) | (5,045 | ) | (4,184 | ) | ||||||||||||||||||||||||||||||
Other
assets
|
34,474 | 34,799 | 34,084 | |||||||||||||||||||||||||||||||||
Total
assets
|
$ | 642,562 | $ | 600,885 | $ | 533,589 | ||||||||||||||||||||||||||||||
Liabilities
and Stockholders' Equity
|
||||||||||||||||||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 190,522 | $ | 2,549 | 1.34 | % | $ | 164,000 | $ | 2,731 | 1.67 | % | $ | 134,219 | $ | 3,432 | 2.56 | % | ||||||||||||||||||
Savings
deposits
|
42,328 | 206 | 0.49 | 37,750 | 237 | 0.63 | 37,171 | 282 | 0.76 | |||||||||||||||||||||||||||
Time
deposits
|
191,738 | 6,038 | 3.15 | 187,195 | 7,566 | 4.04 | 181,973 | 8,297 | 4.56 | |||||||||||||||||||||||||||
Repurchase
agreements
|
15,315 | 754 | 4.92 | 16,259 | 626 | 3.85 | 12,192 | 505 | 4.14 | |||||||||||||||||||||||||||
FHLB
borrowings
|
44,651 | 979 | 2.19 | 44,350 | 1,145 | 2.58 | 20,379 | 877 | 4.30 | |||||||||||||||||||||||||||
Subordinated
debentures
|
7,217 | 285 | 3.95 | 7,217 | 466 | 6.46 | 7,217 | 487 | 6.75 | |||||||||||||||||||||||||||
Total
interest-bearing liabilities
|
491,771 | 10,811 | 2.20 | 456,771 | 12,771 | 2.80 | 393,151 | 13,880 | 3.53 | |||||||||||||||||||||||||||
Noninterest-bearing
liabilities:
|
||||||||||||||||||||||||||||||||||||
Demand
deposits
|
93,030 | 97,316 | 96,659 | |||||||||||||||||||||||||||||||||
Other
liabilities
|
4,870 | 4,830 | 4,624 | |||||||||||||||||||||||||||||||||
Stockholders'
equity
|
52,891 | 41,968 | 39,155 | |||||||||||||||||||||||||||||||||
Total
liabilities and stockholders' equity
|
$ | 642,562 | $ | 600,885 | $ | 533,589 | ||||||||||||||||||||||||||||||
Net
interest income (taxable equivalent basis)
|
23,900 | 22,818 | 19,803 | |||||||||||||||||||||||||||||||||
Tax
equivalent adjustment
|
(555 | ) | (515 | ) | (373 | ) | ||||||||||||||||||||||||||||||
Net
interest income
|
$ | 23,345 | $ | 22,303 | $ | 19,430 | ||||||||||||||||||||||||||||||
Net
interest spread (taxable equivalent basis)
|
3.45 | % | 3.43 | % | 3.16 | % | ||||||||||||||||||||||||||||||
Net
yield on interest-earning
|
||||||||||||||||||||||||||||||||||||
assets
(taxable equivalent basis) (3)
|
3.89 | % | 4.00 | % | 3.93 | % |
(1)
|
For
purpose of these calculations, nonaccruing loans are included in the
average balance. Fees are included in loan
interest.
|
(2)
|
The
tax equivalent adjustments are based on a marginal tax rate of
34%. Loans and total interest-earning assets are net of
unearned income. Securities are included at amortized
cost.
|
(3)
|
Net
interest income (taxable equivalent basis) divided by average
interest-earning assets.
|
2009 Versus 2008
|
2008 Versus 2007
|
|||||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||
Increase
(Decrease)
|
Increase
(Decrease)
|
|||||||||||||||||||||||
Due to Change in
|
Due to Change in
|
|||||||||||||||||||||||
Volume
|
Rate
|
Net
|
Volume
|
Rate
|
Net
|
|||||||||||||||||||
Interest
income:
|
||||||||||||||||||||||||
Loans
|
$ | 502 | $ | (2,185 | ) | $ | (1,683 | ) | $ | 3,509 | $ | (2,362 | ) | $ | 1,147 | |||||||||
Taxable
investment securities
|
1,662 | (908 | ) | 754 | 481 | (25 | ) | 456 | ||||||||||||||||
Tax-exempt
investment securities
|
121 | (13 | ) | 108 | 233 | 49 | 282 | |||||||||||||||||
Other
interest-earning assets
|
(103 | ) | 46 | (57 | ) | 66 | (45 | ) | 21 | |||||||||||||||
Total
interest-earning assets
|
2,182 | (3,060 | ) | (878 | ) | 4,289 | (2,383 | ) | 1,906 | |||||||||||||||
Interest
expense:
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 402 | (584 | ) | (182 | ) | 658 | (1,359 | ) | (701 | ) | |||||||||||||
Savings
deposits
|
26 | (57 | ) | (31 | ) | 4 | (49 | ) | (45 | ) | ||||||||||||||
Time
deposits
|
180 | (1,708 | ) | (1,528 | ) | 233 | (964 | ) | (731 | ) | ||||||||||||||
Repurchase
agreements
|
(38 | ) | 166 | 128 | 159 | (38 | ) | 121 | ||||||||||||||||
FHLB
borrowings
|
8 | (174 | ) | (166 | ) | 724 | (456 | ) | 268 | |||||||||||||||
Subordinated
debentures
|
- | (181 | ) | (181 | ) | - | (21 | ) | (21 | ) | ||||||||||||||
Total
interest-bearing liabilities
|
578 | (2,538 | ) | (1,960 | ) | 1,778 | (2,887 | ) | (1,109 | ) | ||||||||||||||
Net
change in net interest income
|
$ | 1,604 | $ | (522 | ) | $ | 1,082 | $ | 2,511 | $ | 504 | $ | 3,015 |
December 31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Real
estate mortgage:
|
||||||||||||||||||||
Residential
|
$ | 36,246 | $ | 40,337 | $ | 44,719 | $ | 47,020 | $ | 45,604 | ||||||||||
Commercial
|
246,212 | 226,183 | 209,082 | 177,411 | 163,309 | |||||||||||||||
Commercial
loans
|
114,893 | 100,282 | 89,845 | 72,606 | 65,011 | |||||||||||||||
Consumer
loans:
|
||||||||||||||||||||
Installment
(1)
|
41,006 | 51,290 | 56,796 | 52,389 | 51,540 | |||||||||||||||
Home
equity
|
21,779 | 21,208 | 19,723 | 20,010 | 20,271 | |||||||||||||||
Other
|
340 | 356 | 424 | 560 | 506 | |||||||||||||||
Total
gross loans
|
460,476 | 439,656 | 420,589 | 369,996 | 346,241 | |||||||||||||||
Less:
Allowance for loan losses
|
6,920 | 5,166 | 4,457 | 4,101 | 3,847 | |||||||||||||||
Deferred
loan fees
|
437 | 387 | 442 | 452 | 418 | |||||||||||||||
Net
loans
|
$ | 453,119 | $ | 434,103 | $ | 415,690 | $ | 365,443 | $ | 341,976 | ||||||||||
(1) Includes
automobile, home improvement, second mortgages and unsecured
loans. Credit card loans are also included for December 31,
2005.
|
Within 1 Year
|
After 1 Year But Within 5
Years
|
After 5 Years
|
Total
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Real
estate mortgage
|
$ | 45,804 | $ | 8,100 | $ | 228,554 | $ | 282,458 | ||||||||
Commercial
|
56,682 | 33,509 | 24,702 | 114,893 | ||||||||||||
Consumer
|
1,719 | 4,977 | 56,429 | 63,125 | ||||||||||||
Total
gross loans
|
$ | 104,205 | $ | 46,586 | $ | 309,685 | $ | 460,476 |
Predetermined
Rates
|
Floating or Adjustable
Rates
|
Total
|
||||||||||
(In
thousands)
|
||||||||||||
Real
estate mortgage
|
$ | 37,502 | $ | 199,152 | $ | 236,654 | ||||||
Commercial
|
26,255 | 31,956 | 58,211 | |||||||||
Consumer
|
41,205 | 20,201 | 61,406 | |||||||||
$ | 104,962 | $ | 251,309 | $ | 356,271 |
December 31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||
Nonaccrual
loans: (1)
|
||||||||||||||||||||
Construction
|
$ | 8,581 | $ | 2,575 | $ | - | $ | - | $ | - | ||||||||||
Residential
real estate
|
1,131 | - | - | - | - | |||||||||||||||
Commercial
real estate
|
5,109 | 291 | 73 | 123 | 122 | |||||||||||||||
Commercial
|
3,638 | 825 | 307 | 167 | 258 | |||||||||||||||
Consumer
|
1,197 | 539 | 75 | 154 | 92 | |||||||||||||||
Total
nonaccrual loans
|
19,656 | 4,230 | 455 | 444 | 472 | |||||||||||||||
Loans
past due 90 days or more and accruing: (2)
|
||||||||||||||||||||
Construction
|
415 | - | - | - | - | |||||||||||||||
Commercial
real estate
|
- | - | - | 840 | - | |||||||||||||||
Commercial
|
- | 353 | 25 | 241 | - | |||||||||||||||
Consumer
|
- | - | 1 | 9 | 55 | |||||||||||||||
Total
loans past due ninety days or more and
accruing
|
415 | 353 | 26 | 1,090 | 55 | |||||||||||||||
Restructured
loans:
|
||||||||||||||||||||
Commercial
real estate
|
665 | 1,483 | - | - | - | |||||||||||||||
Commercial
|
2,181 | 372 | - | - | - | |||||||||||||||
Consumer
|
- | - | - | - | - | |||||||||||||||
Total
restructured loans
|
2,846 | 1,855 | - | - | - | |||||||||||||||
Total
nonperforming loans
|
$ | 22,917 | $ | 6,438 | $ | 481 | $ | 1,534 | $ | 527 | ||||||||||
Nonaccrual
loans to total gross loans
|
4.27 | % | 0.96 | % | 0.11 | % | 0.12 | % | 0.14 | % | ||||||||||
Nonperforming
loans to total gross loans
|
4.98 | % | 1.46 | % | 0.11 | % | 0.41 | % | 0.15 | % | ||||||||||
Nonperforming
loans to total assets
|
3.45 | % | 1.05 | % | 0.08 | % | 0.30 | % | 0.11 | % | ||||||||||
Allowance
for loan losses to nonperforming loans
|
30.20 | % | 80.24 | % | 926.61 | % | 267.34 | % | 729.98 | % | ||||||||||
(1)
|
Restructured
loans classified in the nonaccrual category totaled $23,000, $22,000 and
$73,000 for the years ended December 31, 2009, December 31, 2008 and
December 31, 2007, respectively. There were no restructured loans
classified as nonaccrual for the year ended December 31,
2006. Restructured loans classified in the nonaccrual category
totaled $152,000 for the year ended December 31,
2005.
|
(2)
|
There
were no restructured loans classified in the past due 90 days or more and
accruing for any years presented.
|
December
31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||
Balance
at beginning of period
|
$ | 5,166 | $ | 4,457 | $ | 4,101 | $ | 3,847 | $ | 3,299 | ||||||||||
Loans
charged off:
|
||||||||||||||||||||
Construction
|
1,003 | - | - | - | - | |||||||||||||||
Residential
real estate
|
85 | - | - | - | - | |||||||||||||||
Commercial
|
623 | 2,841 | 82 | 7 | - | |||||||||||||||
Consumer
|
215 | 61 | 103 | 33 | 57 | |||||||||||||||
Total
loans charged off
|
1,926 | 2,902 | 185 | 40 | 57 | |||||||||||||||
Recoveries
of loans previously charged off:
|
||||||||||||||||||||
Commercial
|
93 | - | - | 23 | - | |||||||||||||||
Consumer
|
12 | 26 | 11 | 7 | 5 | |||||||||||||||
Total
recoveries of loans previously charged off
|
105 | 26 | 11 | 30 | 5 | |||||||||||||||
Net
loans charged off
|
1,821 | 2,876 | 174 | 10 | 52 | |||||||||||||||
Provisions
charged to operations
|
3,575 | 3,585 | 530 | 264 | 600 | |||||||||||||||
Balance
at end of period
|
$ | 6,920 | $ | 5,166 | $ | 4,457 | $ | 4,101 | $ | 3,847 | ||||||||||
Net
charge offs during the period to average loans
outstanding
during the period
|
0.41 | % | 0.66 | % | 0.05 | % | 0.00 | % | 0.02 | % | ||||||||||
Balance
of allowance for loan losses at the end of
year
to gross year end loans
|
1.50 | % | 1.18 | % | 1.06 | % | 1.11 | % | 0.11 | % |
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||||||||||||||||||||||
Amount
|
Percent to Total(1)
|
Amount
|
Percent to Total(1)
|
Amount
|
Percent to Total(1)
|
Amount
|
Percent to Total(1)
|
Amount
|
Percent to Total(1)
|
|||||||||||||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Real
estate –
residential
|
$ | 155 | 7.9 | % | $ | 245 | 9.2 | % | $ | 256 | 10.6 | % | $ | 298 | 12.7 | % | $ | 320 | 13.2 | % | ||||||||||||||||||||
Real
estate –
commercial
|
2,677 | 53.5 | % | 2,164 | 51.4 | % | 1,900 | 49.7 | % | 1,705 | 48.0 | % | 1,562 | 47.1 | % | |||||||||||||||||||||||||
Commercial
|
3,148 | 24.9 | % | 2,086 | 22.8 | % | 1,640 | 21.4 | % | 1,407 | 19.6 | % | 1,192 | 18.8 | % | |||||||||||||||||||||||||
Consumer
|
940 | 13.7 | % | 671 | 16.6 | % | 661 | 18.3 | % | 691 | 19.7 | % | 773 | 20.9 | % | |||||||||||||||||||||||||
Total
allowance
for
loan losses
|
$ | 6,920 | 100.0 | % | $ | 5,166 | 100.0 | % | $ | 4,457 | 100.0 | % | $ | 4,101 | 100.0 | % | $ | 3,847 | 100.0 | % | ||||||||||||||||||||
(1) Represents
percentage of loan balance in category to total gross
loans.
|
December 31,
|
||||||||||||||||||||||||
2009
|
2008
|
2007
|
||||||||||||||||||||||
Carrying Value
|
Percent
|
Carrying Value
|
Percent
|
Carrying Value
|
Percent
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Securities
available for sale:
|
||||||||||||||||||||||||
U.S.
government-sponsored agencies
|
$ | 32,286 | 31.3 | % | $ | 49,660 | 55.2 | % | $ | 35,693 | 46.4 | % | ||||||||||||
Obligations
of state and
|
||||||||||||||||||||||||
political
subdivisions
|
5,397 | 5.3 | 5,820 | 6.4 | 2,903 | 3.8 | ||||||||||||||||||
Mortgage-backed
securities-residential
|
62,228 | 60.4 | 31,670 | 35.2 | 37,131 | 48.2 | ||||||||||||||||||
Other
equity investments
|
3,115 | 3.0 | 2,873 | 3.2 | 1,230 | 1.6 | ||||||||||||||||||
Total
|
$ | 103,026 | 100.0 | % | $ | 90,023 | 100.0 | % | $ | 76,957 | 100.0 | % | ||||||||||||
Securities
held to maturity:
|
||||||||||||||||||||||||
U.S.
Treasury
|
$ | - | - | % | $ | - | - | % | $ | 501 | 1.2 | % | ||||||||||||
U.S.
government-sponsored agencies
|
19,921 | 29.4 | 10,290 | 21.0 | 12,331 | 29.9 | ||||||||||||||||||
Obligations
of state and
|
||||||||||||||||||||||||
political
subdivisions
|
27,038 | 39.9 | 23,048 | 47.2 | 22,569 | 54.8 | ||||||||||||||||||
Mortgage-backed
securities-residential
|
20,758 | 30.7 | 15,518 | 31.8 | 5,788 | 14.1 | ||||||||||||||||||
Total
|
$ | 67,717 | 100.0 | % | $ | 48,856 | 100.0 | % | $ | 41,189 | 100.0 | % |
Within
1
Year
|
After
1 Year Through
5
Years
|
After
5
Years
Through
10
Years
|
After
10
Years
|
Total
|
||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||
U.S.
government-sponsored agencies :
|
||||||||||||||||||||
Carrying
value
|
$ | - | $ | 6,646 | $ | 12,682 | $ | 12,958 | $ | 32,286 | ||||||||||
Yield
|
- | 2.83 | % | 3.83 | % | 5.13 | % | 4.15 | % | |||||||||||
Obligations
of state and political subdivisions :
|
||||||||||||||||||||
Carrying
value
|
- | 310 | 3,072 | 2,015 | 5,397 | |||||||||||||||
Yield
|
- | 3.26 | % | 3.55 | % | 3.99 | % | 3.70 | % | |||||||||||
Mortgage-backed
securities-residential:
|
||||||||||||||||||||
Carrying
value
|
653 | 2,042 | 3,609 | 55,924 | 62,228 | |||||||||||||||
Yield
|
3.77 | % | 4.24 | % | 4.68 | % | 4.47 | % | 47 | % | ||||||||||
Other
equity investments:
|
||||||||||||||||||||
Carrying
value
|
3,115 | - | - | - | 3,115 | |||||||||||||||
Yield
|
4.02 | % | - | - | - | 4.02 | % | |||||||||||||
Total
carrying value
|
$ | 3,768 | $ | 8,998 | $ | 19,363 | $ | 70,897 | $ | 103,026 | ||||||||||
Weighted
average yield
|
3.98 | % | 3.16 | % | 3.94 | % | 4.58 | % | 4.31 | % |
Within
1 Year
|
After
1 Year Through
5
Years
|
After
5
Years
Through
10
Years
|
After
10
Years
|
Total
|
||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||
U.S.
government-sponsored agencies :
|
||||||||||||||||||||
Carrying
value
|
$ | - | $ | 4,202 | $ | 9,265 | $ | 6,454 | $ | 19,921 | ||||||||||
Yield
|
- | % | 3.02 | % | 4.09 | % | 4.42 | % | 3.97 | % | ||||||||||
Obligations
of state and political subdivisions:
|
||||||||||||||||||||
Carrying
value
|
879 | 8,331 | 13,490 | 4,338 | 27,038 | |||||||||||||||
Yield
|
3.05 | % | 2.88 | % | 3.62 | % | 3.97 | % | 3.43 | % | ||||||||||
Mortgage-backed
securities-residential :
|
||||||||||||||||||||
Carrying
value
|
200 | 426 | 6,322 | 13,810 | 20,758 | |||||||||||||||
Yield
|
4.35 | % | 5.15 | % | 3.86 | % | 4.61 | % | 4.39 | % | ||||||||||
Total
carrying value
|
$ | 1,079 | $ | 12,959 | $ | 29,077 | $ | 24,602 | $ | 67,717 | ||||||||||
Weighted
average yield
|
3.29 | % | 3.00 | % | 3.82 | % | 4.45 | % | 3.88 | % |
December
31,
|
||||||||||||||||||||||||
2009
|
2008
|
2007
|
||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Noninterest-bearing
demand
|
$ | 88,427 | 16.7 | % | $ | 99,099 | 19.6 | % | $ | 101,993 | 21.6 | % | ||||||||||||
Interest-bearing
demand
|
218,284 | 41.2 | % | 160,768 | 31.7 | % | 153,713 | 32.6 | % | |||||||||||||||
Saving
deposits
|
45,783 | 8.6 | % | 39,627 | 7.8 | % | 37,010 | 7.8 | % | |||||||||||||||
Certificates
of deposit
|
177,436 | 33.5 | % | 207,037 | 40.9 | % | 179,583 | 38.0 | % | |||||||||||||||
Total
|
$ | 529,930 | 100.0 | % | $ | 506,531 | 100.0 | % | $ | 472,299 | 100.0 | % |
Three
months or less
|
$ | 34,232 | ||
Four
months through six months
|
16,505 | |||
Seven
months through twelve months
|
15,508 | |||
Over
twelve months
|
20,872 | |||
Total
|
$ | 87,117 |
Three Months or Less
|
More than Three Months Through One
Year
|
After One Year
|
Noninterest Sensitive
|
Total
|
||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Loans:
|
||||||||||||||||||||
Real
estate mortgage
|
$ | 40,932 | $ | 32,291 | $ | 209,235 | $ | - | $ | 282,458 | ||||||||||
Commercial
|
57,184 | 15,668 | 42,041 | - | 114,893 | |||||||||||||||
Consumer
|
21,812 | 4,222 | 37,091 | - | 63,125 | |||||||||||||||
Mortgage
loans held for sale
|
660 | - | - | - | 660 | |||||||||||||||
Investment
securities (1)
|
27,843 | 37,172 | 108,955 | - | 173,970 | |||||||||||||||
Other
assets
|
31 | - | - | 28,707 | 28,738 | |||||||||||||||
Total
assets
|
$ | 148,462 | $ | 89,353 | $ | 397,322 | $ | 28,707 | $ | 663,844 | ||||||||||
Source
of funds:
|
||||||||||||||||||||
Interest-bearing
demand
|
$ | 218,284 | $ | - | $ | - | $ | - | $ | 218,284 | ||||||||||
Savings
|
45,783 | - | - | - | 45,783 | |||||||||||||||
Certificate
of deposit
|
60,264 | 65,019 | 52,153 | - | 177,436 | |||||||||||||||
FHLB
of NY advances
|
18,600 | - | 36,000 | - | 54,600 | |||||||||||||||
Repurchase
agreements
|
15,396 | - | - | - | 15,396 | |||||||||||||||
Subordinated
debenture
|
- | - | 7,217 | - | 7,217 | |||||||||||||||
Other
liabilities
|
- | - | - | 91,617 | 91,617 | |||||||||||||||
Stockholders'
equity
|
- | - | - | 53,511 | 53,511 | |||||||||||||||
Total
source of funds
|
$ | 358,327 | $ | 65,019 | $ | 95,370 | $ | 145,128 | $ | 663,844 | ||||||||||
Interest
rate sensitivity gap
|
$ | (209,865 | ) | $ | 24,334 | $ | 301,952 | $ | (116,421 | ) | ||||||||||
Cumulative
interest rate sensitivity gap
|
$ | (209,865 | ) | $ | (185,531 | ) | $ | 116,421 | $ | - | ||||||||||
Ratio
of GAP to total assets
|
-31.6 | % | 3.6 | % | 45.5 | % | -17.5 | % | ||||||||||||
Ratio
of cumulative GAP assets to total assets
|
-31.6 | % | -28.0 | % | 17.5 | % | - | % | ||||||||||||
(1) Includes
securities held to maturity, securities available for sale and FHLB-NY
stock.
|
Years Ended December 31,
|
||||||||
2009
|
2008
|
|||||||
(In
thousands)
|
||||||||
Cash
and cash equivalents – beginning
|
$ | 12,814 | $ | 11,932 | ||||
Operating
activities:
|
||||||||
Net
income
|
3,634 | 3,501 | ||||||
Adjustments
to reconcile net income to net cash provided by operating
activities
|
113 | 2,947 | ||||||
Net
cash provided by operating activities
|
3,747 | 6,448 | ||||||
Net
cash used in investing activities
|
(56,406 | ) | (43,640 | ) | ||||
Net
cash provided by financing activities
|
48,716 | 38,074 | ||||||
Net
(decrease) increase in cash and cash equivalents
|
(3,943 | ) | 882 | |||||
Cash
and cash equivalents – ending
|
$ | 8,871 | $ | 12,814 |
Total
|
Less than 1 Year
|
1 – 3 Years
|
4 – 5 Years
|
After 5 Years
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Contractual
obligations
|
||||||||||||||||||||
Operating
lease obligations
|
$ | 6,966 | $ | 935 | $ | 1,855 | $ | 1,531 | $ | 2,645 | ||||||||||
Total
contracted cost obligations
|
$ | 6,966 | $ | 935 | $ | 1,855 | $ | 1,531 | $ | 2,645 | ||||||||||
Other
long-term liabilities/long-term debt
|
||||||||||||||||||||
Time
deposits
|
$ | 177,436 | $ | 125,283 | $ | 44,092 | $ | 8,061 | $ | - | ||||||||||
Federal
Home Loan Bank advances
|
54,600 | 18,600 | 6,000 | 15,000 | 15,000 | |||||||||||||||
Subordinated
debentures
|
7,217 | - | - | - | 7,217 | |||||||||||||||
Total
other long-term liabilities/long-term debt
|
$ | 239,253 | $ | 143,883 | $ | 50,092 | $ | 23,061 | $ | 22,217 | ||||||||||
Other
commitments - off balance sheet
|
||||||||||||||||||||
Letter
of credit
|
$ | 3,167 | $ | 2,954 | $ | 213 | $ | - | $ | - | ||||||||||
Commitments
to extend credit
|
19,406 | 19,406 | - | - | - | |||||||||||||||
Unused
lines of credit
|
74,964 | 74,964 | - | - | - | |||||||||||||||
Total
off balance sheet arrangements and contractual obligations
|
$ | 97,537 | $ | 97,324 | $ | 213 | $ | - | $ | - |
Required
|
Actual
|
Excess
|
||||||||||
Leverage
ratio*
|
||||||||||||
Corporation
|
4.00 | % | 9.22 | % | 5.22 | % | ||||||
Bank
|
4.00 | % | 8.51 | % | 4.51 | % | ||||||
Risk-based
capital:
|
||||||||||||
Tier
1
|
||||||||||||
Corporation
|
4.00 | % | 11.99 | % | 7.99 | % | ||||||
Bank
|
4.00 | % | 11.02 | % | 7.02 | % | ||||||
Total
|
||||||||||||
Corporation
|
8.00 | % | 13.24 | % | 5.24 | % | ||||||
Bank
|
8.00 | % | 12.27 | % | 4.27 | % |
Crowe
Horwath LLP
|
December 31,
|
||||||||
2009
|
2008
|
|||||||
Assets
|
||||||||
Cash
and due from banks
|
$ | 8,840,000 | $ | 12,719,000 | ||||
Other
interest-earning assets
|
31,000 | 95,000 | ||||||
Cash
and cash equivalents
|
8,871,000 | 12,814,000 | ||||||
Securities
available for sale
|
103,026,000 | 90,023,000 | ||||||
Securities
held to maturity; estimated fair value
|
||||||||
of
$68,765,000 (2009) and $49,150,000 (2008)
|
67,717,000 | 48,856,000 | ||||||
Federal
Home Loan Bank of New York stock, at cost
|
3,227,000 | 2,420,000 | ||||||
Mortgage
loans held for sale
|
660,000 | 394,000 | ||||||
Loans,
net of allowance for loan losses of $6,920,000 (2009)
|
||||||||
and
$5,166,000 (2008)
|
453,119,000 | 434,103,000 | ||||||
Premises
and equipment, net
|
6,861,000 | 7,470,000 | ||||||
Accrued
interest receivable
|
3,167,000 | 3,371,000 | ||||||
Bank
owned life insurance
|
9,488,000 | 8,599,000 | ||||||
Other
assets
|
7,708,000 | 3,766,000 | ||||||
Total
assets
|
$ | 663,844,000 | $ | 611,816,000 | ||||
Liabilities
and Stockholders' equity
|
||||||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$ | 88,427,000 | $ | 99,099,000 | ||||
Interest-bearing
|
441,503,000 | 407,432,000 | ||||||
Total
deposits
|
529,930,000 | 506,531,000 | ||||||
Federal
Home Loan Bank of New York Advances
|
54,600,000 | 36,900,000 | ||||||
Securities
sold under agreements to repurchase
|
15,396,000 | 15,160,000 | ||||||
Subordinated
debentures
|
7,217,000 | 7,217,000 | ||||||
Accrued
interest payable
|
1,193,000 | 1,582,000 | ||||||
Accrued
expenses and other liabilities
|
1,997,000 | 1,630,000 | ||||||
Total
liabilities
|
610,333,000 | 569,020,000 | ||||||
Commitments
and contingencies
|
||||||||
Stockholders'
equity
|
||||||||
Preferred
stock, no par value; 2,500,000 shares authorized;
|
||||||||
10,000
shares issued and outstanding at December 31, 2009.
|
||||||||
Liquidation
preference of $10,000,000
|
9,736,000 | - | ||||||
Common
stock, no par value; 10,000,000 shares authorized;
|
||||||||
5,834,515
and 5,575,095 shares issued and
|
||||||||
outstanding
at December 31, 2009 and 2008, respectively
|
40,415,000 | 37,962,000 | ||||||
Treasury
stock, 20,000 shares at December 31, 2008
|
- | (272,000 | ) | |||||
Retained
earnings
|
2,922,000 | 4,383,000 | ||||||
Accumulated
other comprehensive income, net
|
438,000 | 723,000 | ||||||
Total
Stockholders' equity
|
53,511,000 | 42,796,000 | ||||||
Total
liabilities and Stockholders' equity
|
$ | 663,844,000 | $ | 611,816,000 |
Years
Ended December 31,
|
||||||||
2009
|
2008
|
|||||||
Interest
income:
|
||||||||
Loans
|
$ | 26,934,000 | $ | 28,617,000 | ||||
Securities
held to maturity:
|
||||||||
Taxable
|
1,946,000 | 751,000 | ||||||
Nontaxable
|
879,000 | 840,000 | ||||||
Securities
available for sale:
|
||||||||
Taxable
|
4,060,000 | 4,470,000 | ||||||
Nontaxable
|
203,000 | 174,000 | ||||||
FHLB
dividends
|
125,000 | 156,000 | ||||||
Other
interest-earning assets
|
9,000 | 66,000 | ||||||
Total
interest income
|
34,156,000 | 35,074,000 | ||||||
Interest
expense:
|
||||||||
Deposits
|
8,793,000 | 10,534,000 | ||||||
Borrowed
money
|
2,018,000 | 2,237,000 | ||||||
Total
interest expense
|
10,811,000 | 12,771,000 | ||||||
Net
interest income before provision for loan losses
|
23,345,000 | 22,303,000 | ||||||
Provision
for loan losses
|
3,575,000 | 3,585,000 | ||||||
Net
interest income after provision for loan losses
|
19,770,000 | 18,718,000 | ||||||
Noninterest
income:
|
||||||||
Fees
and service charges
|
1,847,000 | 1,333,000 | ||||||
Bank
owned life insurance
|
322,000 | 326,000 | ||||||
Gain
on calls and sales of securities, net
|
258,000 | 103,000 | ||||||
Gain
on sales of mortgage loans
|
294,000 | 193,000 | ||||||
Merchant
processing
|
118,000 | 1,417,000 | ||||||
Gain
on sale of merchant portfolio
|
- | 509,000 | ||||||
Miscellaneous
|
294,000 | 336,000 | ||||||
Total
noninterest income
|
3,133,000 | 4,217,000 | ||||||
Noninterest
expense:
|
||||||||
Salaries
and employee benefits
|
8,264,000 | 8,129,000 | ||||||
Occupancy,
net
|
1,858,000 | 1,802,000 | ||||||
Equipment
|
1,087,000 | 1,127,000 | ||||||
Data
processing
|
1,218,000 | 1,209,000 | ||||||
Advertising
|
505,000 | 487,000 | ||||||
FDIC
insurance premium
|
1,124,000 | 317,000 | ||||||
Charitable
contributions
|
619,000 | 627,000 | ||||||
Stationery
and supplies
|
253,000 | 399,000 | ||||||
Merchant
processing
|
108,000 | 1,258,000 | ||||||
Bank-card
related services
|
383,000 | 317,000 | ||||||
Miscellaneous
|
2,371,000 | 2,314,000 | ||||||
Total
noninterest expenses
|
17,790,000 | 17,986,000 | ||||||
Income
before income tax expense
|
5,113,000 | 4,949,000 | ||||||
Income
tax expense
|
1,479,000 | 1,448,000 | ||||||
Net
income
|
3,634,000 | 3,501,000 | ||||||
Dividends
on preferred stock and accretion
|
504,000 | - | ||||||
Net
Income available to common stockholders
|
$ | 3,130,000 | $ | 3,501,000 | ||||
Basic
earnings per common share
|
$ | 0.54 | $ | 0.60 | ||||
Diluted
earnings per common share
|
$ | 0.54 | $ | 0.60 | ||||
Weighted
average number of common shares outstanding
|
5,832,186 | 5,853,562 | ||||||
Weighted
average number of diluted common shares outstanding
|
5,836,739 | 5,865,126 |
Years Ended December 31, 2009
and 2008
|
||||||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||||||
Comprehensive
|
||||||||||||||||||||||||||||||||
Preferred
|
Common Stock
|
Retained
|
Treasury Stock
|
Income
(Loss),
|
||||||||||||||||||||||||||||
Stock
|
Shares
|
Amount
|
Earnings
|
Shares
|
Amount
|
Net
|
Total
|
|||||||||||||||||||||||||
Balance
-- December 31, 2007
|
$ | - | 5,306,828 | $ | 34,871,000 | $ | 5,943,000 | - | $ | - | $ | 276,000 | $ | 41,090,000 | ||||||||||||||||||
Cash
dividends declared ($0.34 per share)
|
- | - | - | (1,965,000 | ) | - | - | - | (1,965,000 | ) | ||||||||||||||||||||||
Payment
of discount on dividend
reinvestment
plan
|
- | - | (45,000 | ) | - | - | - | - | (45,000 | ) | ||||||||||||||||||||||
5%
Stock dividend
|
- | 255,420 | 2,995,000 | (3,096,000 | ) | 9,896 | 99,000 | - | (2,000 | ) | ||||||||||||||||||||||
Common
stock issued under stock
plans
|
- | 1,667 | 21,000 | - | 1,603 | 20,000 | - | 41,000 | ||||||||||||||||||||||||
Stock
option compensation expense
|
- | - | 48,000 | - | - | - | - | 48,000 | ||||||||||||||||||||||||
Stock
options exercised
|
- | 11,180 | 70,000 | - | (1,499 | ) | (21,000 | ) | - | 49,000 | ||||||||||||||||||||||
Tax
benefit on stock options exercised
|
- | - | 2,000 | - | - | - | - | 2,000 | ||||||||||||||||||||||||
Repurchase
common stock
|
- | - | - | - | (30,000 | ) | (370,000 | ) | - | (370,000 | ) | |||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||
Net
income
|
- | - | - | 3,501,000 | - | - | - | 3,501,000 | ||||||||||||||||||||||||
Change
in unrealized holding gains
on
securities available for sale
arising
during the period (net of
taxes
of $260,000)
|
- | - | - | - | - | - | 383,000 | 383,000 | ||||||||||||||||||||||||
Reclassification
adjustment for gains
in
net income (net of taxes of
$39,000)
|
- | - | - | - | - | - | 64,000 | 64,000 | ||||||||||||||||||||||||
Total
comprehensive income
|
3,948,000 | |||||||||||||||||||||||||||||||
Balance
-- December 31, 2008
|
- | 5,575,095 | 37,962,000 | 4,383,000 | (20,000 | ) | (272,000 | ) | 723,000 | 42,796,000 | ||||||||||||||||||||||
Proceeds
from issuance of preferred
stock
and a warrant
|
9,731,000 | - | 269,000 | - | - | - | - | 10,000,000 | ||||||||||||||||||||||||
Preferred
stock issuance costs
|
(48,000 | ) | - | - | - | - | - | - | (48,000 | ) | ||||||||||||||||||||||
Cash
dividends declared ($0.36 per share)
|
- | - | - | (2,110,000 | ) | - | - | - | (2,110,000 | ) | ||||||||||||||||||||||
Payment
of discount on dividend
reinvestment
plan
|
- | - | (44,000 | ) | - | - | - | - | (44,000 | ) | ||||||||||||||||||||||
5%
Stock dividend
|
- | 249,129 | 2,114,000 | (2,472,000 | ) | 28,502 | 356,000 | - | (2,000 | ) | ||||||||||||||||||||||
Cash
dividends accrued on preferred
stock
|
- | - | - | (460,000 | ) | - | - | - | (460,000 | ) | ||||||||||||||||||||||
Common
stock issued under stock
plans
|
- | 2,288 | 22,000 | - | 2,566 | 23,000 | - | 45,000 | ||||||||||||||||||||||||
Stock
option compensation expense
|
- | - | 48,000 | - | - | - | - | 48,000 | ||||||||||||||||||||||||
Stock
options exercised
|
- | 8,003 | 44,000 | - | (3,568 | ) | (32,000 | ) | - | 12,000 | ||||||||||||||||||||||
Repurchase
of common stock
|
- | - | - | - | (7,500 | ) | (75,000 | ) | - | (75,000 | ) | |||||||||||||||||||||
Accretion
of discount on preferred
stock
|
44,000 | - | - | (44,000 | ) | - | - | - | - | |||||||||||||||||||||||
Amortization
of issuance costs
|
9,000 | - | - | (9,000 | ) | - | - | - | - | |||||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||
Net
income
|
- | - | - | 3,634,000 | - | - | - | 3,634,000 | ||||||||||||||||||||||||
Change
in unrealized holding gains
on
securities available for sale
arising
during the period (net of tax
benefit
of $183,000)
|
- | - | - | - | - | - | (286,000 | ) | (286,000 | ) | ||||||||||||||||||||||
Reclassification
adjustment for gains
in
net income (net of taxes of
$102,000)
|
- | - | - | - | - | - | 156,000 | 156,000 | ||||||||||||||||||||||||
Change
in fair value of interest rate
swap
(net of tax benefit of
$103,000)
|
- | - | - | - | - | - | (155,000 | ) | (155,000 | ) | ||||||||||||||||||||||
Total
comprehensive income
|
3,349,000 | |||||||||||||||||||||||||||||||
Balance
-- December 31, 2009
|
$ | 9,736,000 | 5,834,515 | $ | 40,415,000 | $ | 2,922,000 | - | $ | - | $ | 438,000 | $ | 53,511,000 |
Years
Ended December 31,
|
||||||||
2009
|
2008
|
|||||||
Change
in unrealized holding gains (losses on securities
available
for sale arising during the period)
|
$ | 47,000 | $ | 849,000 | ||||
Reclassification
adjustment for gains in net income
|
258,000 | 103,000 | ||||||
Net
unrealized gains (losses)
|
(211,000 | ) | 746,000 | |||||
Tax
effect
|
(81,000 | ) | 299,000 | |||||
Net
unrealized gains (losses), net of tax amount
|
(130,000 | ) | 447,000 | |||||
Change
in fair value of interest rate swap
|
(258,000 | ) | - | |||||
Tax
effect
|
(103,000 | ) | - | |||||
Change
in fair value of interest rate swap, net of tax amount
|
(155,000 | ) | - | |||||
Total
other comprehensive income (loss)
|
$ | (285,000 | ) | $ | 447,000 | |||
The
following is a summary of the accumulated other comprehensive income
balances, net of tax:
|
||||||||
At
December 31,
|
||||||||
2009 | 2008 | |||||||
Unrealized
gain on securities available for sale
|
$ | 593,000 | $ | 723,000 | ||||
Unrealized
loss on fair value of interest rate swap
|
(155,000 | ) | - | |||||
Accumulated
other comprehensive income, net
|
$ | 438,000 | $ | 723,000 |
Years Ended December 31,
|
||||||||
2009
|
2008
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ | 3,634,000 | $ | 3,501,000 | ||||
Adjustments
to reconcile net income to
|
||||||||
net
cash provided by operating activities:
|
||||||||
Depreciation
and amortization of premises and equipment
|
841,000 | 918,000 | ||||||
Amortization
of premiums and accretion of discounts, net
|
628,000 | 125,000 | ||||||
Accretion
of deferred loan fees
|
(235,000 | ) | (283,000 | ) | ||||
Provision
for loan losses
|
3,575,000 | 3,585,000 | ||||||
Originations
of mortgage loans held for sale
|
(36,076,000 | ) | (19,665,000 | ) | ||||
Proceeds
from sale of mortgage loans
|
36,104,000 | 20,748,000 | ||||||
Gain
on sale of loans
|
(294,000 | ) | (193,000 | ) | ||||
Gains
on sales and calls of securities
|
(258,000 | ) | (103,000 | ) | ||||
Loss
on sale of equipment
|
- | 12,000 | ||||||
Deferred
income tax benefit
|
(1,210,000 | ) | (365,000 | ) | ||||
Amortization
of intangible assets
|
32,000 | 33,000 | ||||||
Decrease
(increase) in accrued interest receivable
|
204,000 | (259,000 | ) | |||||
Decrease
in accrued interest payable
|
(389,000 | ) | (498,000 | ) | ||||
Increase
in bank owned life insurance
|
(322,000 | ) | (326,000 | ) | ||||
Nonqualified
stock option expense
|
48,000 | 48,000 | ||||||
Increase
in other assets
|
(3,133,000 | ) | (197,000 | ) | ||||
Increase
(decrease) in other liabilities
|
598,000 | (633,000 | ) | |||||
Net
cash provided by operating activities
|
3,747,000 | 6,448,000 | ||||||
Cash
flows from investing activities:
|
||||||||
Purchase
of securities available for sale
|
(69,388,000 | ) | (45,353,000 | ) | ||||
Proceeds
from maturities and principal repayments on securities available for
sale
|
15,444,000 | 7,095,000 | ||||||
Proceeds
from sales and calls on securities available for sale
|
40,654,000 | 24,945,000 | ||||||
Purchase
of securities held to maturity
|
(42,913,000 | ) | (17,210,000 | ) | ||||
Proceeds
from maturities and principal repayments on securities held to
maturity
|
7,093,000 | 4,715,000 | ||||||
Proceeds
from calls of securities held to maturity
|
16,666,000 | 4,770,000 | ||||||
Purchase
of FHLB-NY stock
|
(807,000 | ) | (437,000 | ) | ||||
Net
increase in loans
|
(22,356,000 | ) | (21,715,000 | ) | ||||
Additions
to premises and equipment
|
(232,000 | ) | (454,000 | ) | ||||
Sale
of equipment
|
- | 4,000 | ||||||
Purchase
of BOLI
|
(567,000 | ) | - | |||||
Net
cash used in investing activities
|
(56,406,000 | ) | (43,640,000 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Net
decrease in noninterest-bearing deposits
|
(10,672,000 | ) | (2,894,000 | ) | ||||
Net
increase in interest-bearing deposits
|
34,071,000 | 37,126,000 | ||||||
Net
increase (decrease) increase in securities sold under agreement to
repurchase
|
236,000 | (2,123,000 | ) | |||||
Net
increase (decrease) increase in short term borrowings
|
11,700,000 | (9,900,000 | ) | |||||
Proceeds
from long term borrowings
|
6,000,000 | 65,000,000 | ||||||
Payments
on long term borrowings
|
- | (46,845,000 | ) | |||||
Proceeds
from issuance of preferred stock and warrants
|
9,951,000 | - | ||||||
Cash
dividends paid on common stock
|
(2,112,000 | ) | (1,967,000 | ) | ||||
Cash
dividends paid on preferred stock
|
(396,000 | ) | - | |||||
Payment
of discount on dividend reinvestment plan
|
(44,000 | ) | (45,000 | ) | ||||
Purchase
of treasury stock
|
(75,000 | ) | (370,000 | ) | ||||
Exercise
of stock options
|
12,000 | 49,000 | ||||||
Tax
benefit of stock plans
|
- | 2,000 | ||||||
Issuance
of common stock
|
45,000 | 41,000 | ||||||
Net
cash provided by financing activities
|
48,716,000 | 38,074,000 | ||||||
Net
(decrease) increase in cash and cash equivalents
|
(3,943,000 | ) | 882,000 | |||||
Cash
and cash equivalents - beginning
|
12,814,000 | 11,932,000 | ||||||
Cash
and cash equivalents - ending
|
$ | 8,871,000 | $ | 12,814,000 | ||||
Supplemental
disclosures of cash flow information:
|
||||||||
Cash
paid during the year for interest
|
$ | 11,200,000 | $ | 13,269,000 | ||||
Cash
paid during the year for income taxes
|
$ | 1,831,000 | $ | 2,453,000 |
December 31, 2009
|
||||||||||||||||
Amortized
|
Gross Unrealized
|
Fair
|
||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
U.S.
government-sponsored agencies:
|
||||||||||||||||
After
one year through five years
|
$ | 6,707,000 | $ | 5,000 | $ | 66,000 | $ | 6,646,000 | ||||||||
After
five years through ten years
|
12,754,000 | 56,000 | 128,000 | 12,682,000 | ||||||||||||
After
ten years
|
13,181,000 | 31,000 | 254,000 | 12,958,000 | ||||||||||||
32,642,000 | 92,000 | 448,000 | 32,286,000 | |||||||||||||
Obligations
of state and political
|
||||||||||||||||
subdivisions:
|
||||||||||||||||
After
one year through five years
|
303,000 | 7,000 | - | 310,000 | ||||||||||||
After
five years through ten years
|
2,981,000 | 92,000 | 1,000 | 3,072,000 | ||||||||||||
After
ten years
|
2,000,000 | 23,000 | 8,000 | 2,015,000 | ||||||||||||
5,284,000 | 122,000 | 9,000 | 5,397,000 | |||||||||||||
Mortgage-backed
securities-residential:
|
||||||||||||||||
Within
one year
|
648,000 | 5,000 | - | 653,000 | ||||||||||||
After
one year through five years
|
1,991,000 | 51,000 | - | 2,042,000 | ||||||||||||
After
five years through ten years
|
3,465,000 | 144,000 | - | 3,609,000 | ||||||||||||
After
ten years
|
54,956,000 | 1,223,000 | 255,000 | 55,924,000 | ||||||||||||
61,060,000 | 1,423,000 | 255,000 | 62,228,000 | |||||||||||||
Total
debt securities
|
98,986,000 | 1,637,000 | 712,000 | 99,911,000 | ||||||||||||
Other
equity investments
|
3,058,000 | 66,000 | 9,000 | 3,115,000 | ||||||||||||
$ | 102,044,000 | $ | 1,703,000 | $ | 721,000 | $ | 103,026,000 |
December 31, 2008
|
||||||||||||||||
Amortized
|
Gross Unrealized
|
Fair
|
||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
U.S.
government-sponsored agencies:
|
|
|||||||||||||||
After
one year through five years
|
$ | 1,499,000 | $ | 14,000 | $ | - | $ | 1,513,000 | ||||||||
After
five years through ten years
|
21,380,000 | 499,000 | 1,000 | 21,878,000 | ||||||||||||
After
ten years
|
26,070,000 | 228,000 | 29,000 | 26,269,000 | ||||||||||||
48,949,000 | 741,000 | 30,000 | 49,660,000 | |||||||||||||
Obligations
of state and political
|
||||||||||||||||
subdivisions:
|
||||||||||||||||
Within
one year
|
711,000 | 1,000 | - | 712,000 | ||||||||||||
After
one year through five years
|
304,000 | 3,000 | - | 307,000 | ||||||||||||
After
five years through ten years
|
2,237,000 | 2,000 | 59,000 | 2,180,000 | ||||||||||||
After
ten years
|
2,752,000 | - | 131,000 | 2,621,000 | ||||||||||||
6,004,000 | 6,000 | 190,000 | 5,820,000 | |||||||||||||
Mortgage-backed
securities-residential:
|
||||||||||||||||
After
one year through five years
|
4,199,000 | 46,000 | 7,000 | 4,238,000 | ||||||||||||
After
five years through ten years
|
4,315,000 | 142,000 | - | 4,457,000 | ||||||||||||
After
ten years
|
22,455,000 | 528,000 | 8,000 | 22,975,000 | ||||||||||||
30,969,000 | 716,000 | 15,000 | 31,670,000 | |||||||||||||
Total
debt securities
|
85,922,000 | 1,463,000 | 235,000 | 87,150,000 | ||||||||||||
Other
equity investments
|
2,908,000 | - | 35,000 | 2,873,000 | ||||||||||||
$ | 88,830,000 | $ | 1,463,000 | $ | 270,000 | $ | 90,023,000 |
December
31, 2009
|
||||||||||||||||
Amortized
|
Gross
Unrecognized
|
|||||||||||||||
Cost
|
Gains
|
Losses
|
Fair
Value
|
|||||||||||||
U.S.
government-sponsored agencies:
|
||||||||||||||||
After
one year through five years
|
$ | 4,202,000 | $ | 35,000 | $ | - | $ | 4,237,000 | ||||||||
After
five years through ten years
|
9,265,000 | 14,000 | 258,000 | 9,021,000 | ||||||||||||
After
ten years
|
6,454,000 | 41,000 | 93,000 | 6,402,000 | ||||||||||||
19,921,000 | 90,000 | 351,000 | 19,660,000 | |||||||||||||
Obligations
of state and political
|
||||||||||||||||
subdivisions:
|
||||||||||||||||
Within
one year
|
879,000 | 11,000 | - | 890,000 | ||||||||||||
After
one year through five years
|
8,331,000 | 219,000 | 18,000 | 8,532,000 | ||||||||||||
After
five years through ten years
|
13,490,000 | 533,000 | 51,000 | 13,972,000 | ||||||||||||
After
ten years
|
4,338,000 | 108,000 | 15,000 | 4,431,000 | ||||||||||||
27,038,000 | 871,000 | 84,000 | 27,825,000 | |||||||||||||
Mortgage-backed
securities-residential:
|
||||||||||||||||
Within
one year
|
200,000 | 4,000 | - | 204,000 | ||||||||||||
After
one year through five years
|
426,000 | 19,000 | - | 445,000 | ||||||||||||
After
five years through ten years
|
6,322,000 | 218,000 | - | 6,540,000 | ||||||||||||
After
ten years
|
13,810,000 | 306,000 | 25,000 | 14,091,000 | ||||||||||||
20,758,000 | 547,000 | 25,000 | 21,280,000 | |||||||||||||
$ | 67,717,000 | $ | 1,508,000 | $ | 460,000 | $ | 68,765,000 |
December
31, 2008
|
||||||||||||||||
Amortized
|
Gross
Unrecognized
|
|||||||||||||||
Cost
|
Gains
|
Losses
|
Fair
Value
|
|||||||||||||
U.S.
government-sponsored agencies:
|
||||||||||||||||
After
one year through five years
|
$ | 399,000 | $ | 32,000 | $ | - | $ | 431,000 | ||||||||
After
five years through ten years
|
3,009,000 | 37,000 | - | 3,046,000 | ||||||||||||
After
ten years
|
6,882,000 | 148,000 | - | 7,030,000 | ||||||||||||
10,290,000 | 217,000 | - | 10,507,000 | |||||||||||||
Obligations
of state and political
|
||||||||||||||||
subdivisions:
|
||||||||||||||||
Within
one year
|
1,149,000 | 4,000 | - | 1,153,000 | ||||||||||||
After
one year through five years
|
2,392,000 | 19,000 | - | 2,411,000 | ||||||||||||
After
five years through ten years
|
13,981,000 | 87,000 | 131,000 | 13,937,000 | ||||||||||||
After
ten years
|
5,526,000 | - | 170,000 | 5,356,000 | ||||||||||||
23,048,000 | 110,000 | 301,000 | 22,857,000 | |||||||||||||
Mortgage-backed
securities-residential:
|
||||||||||||||||
Within
one year
|
60,000 | - | - | 60,000 | ||||||||||||
After
one year through five years
|
801,000 | 11,000 | - | 812,000 | ||||||||||||
After
five years through ten years
|
1,575,000 | 55,000 | - | 1,630,000 | ||||||||||||
After
ten years
|
13,082,000 | 205,000 | 3,000 | 13,284,000 | ||||||||||||
15,518,000 | 271,000 | 3,000 | 15,786,000 | |||||||||||||
$ | 48,856,000 | $ | 598,000 | $ | 304,000 | $ | 49,150,000 |
2009
|
Less than 12 Months
|
12 Months or Longer
|
Total
|
|||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
U.S.
government-
|
||||||||||||||||||||||||
sponsored
agencies
|
$ | 23,282,000 | $ | (361,000 | ) | $ | 2,913,000 | $ | (87,000 | ) | $ | 26,195,000 | $ | (448,000 | ) | |||||||||
Obligations
of state and political
|
||||||||||||||||||||||||
subdivisions
|
373,000 | (2,000 | ) | 443,000 | (7,000 | ) | 816,000 | (9,000 | ) | |||||||||||||||
Mortgage-backed
securities-residential
|
15,156,000 | (255,000 | ) | - | - | 15,156,000 | (255,000 | ) | ||||||||||||||||
Other
equity investments
|
- | - | 33,000 | (9,000 | ) | 33,000 | (9,000 | ) | ||||||||||||||||
Total
temporarily impaired securities
|
$ | 38,811,000 | $ | (618,000 | ) | $ | 3,389,000 | $ | (103,000 | ) | $ | 42,200,000 | $ | (721,000 | ) |
2008
|
Less than 12 Months
|
12 Months or Longer
|
Total
|
|||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
U.S.
government-
|
||||||||||||||||||||||||
sponsored
agencies
|
$ | 7,464,000 | $ | (30,000 | ) | $ | - | $ | - | $ | 7,464,000 | $ | (30,000 | ) | ||||||||||
Obligations
of state and political
|
||||||||||||||||||||||||
subdivisions
|
4,709,000 | (190,000 | ) | - | - | 4,709,000 | (190,000 | ) | ||||||||||||||||
Mortgage-backed
securities-residential
|
1,651,000 | (8,000 | ) | 438,000 | (7,000 | ) | 2,089,000 | (15,000 | ) | |||||||||||||||
Other
equity investments
|
40,000 | (4,000 | ) | 2,742,000 | (31,000 | ) | 2,782,000 | (35,000 | ) | |||||||||||||||
Total
temporarily impaired securities
|
$ | 13,864,000 | $ | (232,000 | ) | $ | 3,180,000 | $ | (38,000 | ) | $ | 17,044,000 | $ | (270,000 | ) |
2009
|
Less than 12 Months
|
12 Months or Longer
|
Total
|
|||||||||||||||||||||
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
U.S.
government-
|
||||||||||||||||||||||||
sponsored
agencies
|
$ | 12,529,000 | $ | (351,000 | ) | $ | - | $ | - | $ | 12,529,000 | $ | (351,000 | ) | ||||||||||
Obligations
of state and political
|
||||||||||||||||||||||||
subdivisions
|
4,504,000 | (69,000 | ) | 401,000 | (15,000 | ) | 4.905,000 | (84,000 | ) | |||||||||||||||
Mortgage-backed
securities-residential
|
1,949,000 | (25,000 | ) | - | - | 1,949,000 | (25,000 | ) | ||||||||||||||||
Total
temporarily impaired securities
|
$ | 18,982,000 | $ | (445,000 | ) | $ | 401,000 | $ | (15,000 | ) | $ | 19,383,000 | $ | (460,000 | ) |
2008
|
Less than 12 Months
|
12 Months or Longer
|
Total
|
|||||||||||||||||||||
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
U.S.
government-
|
||||||||||||||||||||||||
sponsored
agencies
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Obligations
of state and political
|
||||||||||||||||||||||||
subdivisions
|
13,440,000 | (301,000 | ) | - | - | 13,440,000 | (301,000 | ) | ||||||||||||||||
Mortgage-backed
securities-residential
|
2,715,000 | (3,000 | ) | - | - | 2,715,000 | (3,000 | ) | ||||||||||||||||
Total
temporarily impaired securities
|
$ | 16,155,000 | $ | (304,000 | ) | $ | - | $ | - | $ | 16,155,000 | $ | (304,000 | ) |
December 31,
|
||||||||
2009
|
2008
|
|||||||
Mortgage:
|
||||||||
Residential
|
$ | 36,246,000 | $ | 40,337,000 | ||||
Commercial
|
246,212,000 | 226,183,000 | ||||||
Commercial
|
114,893,000 | 100,282,000 | ||||||
Home
Equity
|
21,779,000 | 21,208,000 | ||||||
Installment
|
41,006,000 | 51,290,000 | ||||||
Other
|
340,000 | 356,000 | ||||||
Total
gross loans
|
460,476,000 | 439,656,000 | ||||||
Less:
Deferred loan fees, net of costs
|
437,000 | 387,000 | ||||||
Allowance
for loan losses
|
6,920,000 | 5,166,000 | ||||||
7,357,000 | 5,553,000 | |||||||
Loans,
net
|
$ | 453,119,000 | $ | 434,103,000 |
December 31,
|
||||||||
2009
|
2008
|
|||||||
Balance,
beginning
|
$ | 5,166,000 | $ | 4,457,000 | ||||
Provision
charged to operations
|
3,575,000 | 3,585,000 | ||||||
Recoveries
of loans charged off
|
105,000 | 26,000 | ||||||
Loans
charged off
|
(1,926,000 | ) | (2,902,000 | ) | ||||
Balance,
ending
|
$ | 6,920,000 | $ | 5,166,000 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
Nonaccrual
loans
|
$ | 19,656,000 | $ | 4,230,000 | ||||
Loans
past due 90 days or more and accruing
|
415,000 | 353,000 | ||||||
Restructured
loans
|
2,846,000 | 1,855,000 | ||||||
Total
nonperforming loans
|
$ | 22,917,000 | $ | 6,438,000 |
Year ended December 31,
|
||||||||
2009
|
2008
|
|||||||
Income
that would have been recorded under
contractual
terms
|
$ | 1,696,000 | $ | 400,000 | ||||
Less
interest income received
|
627,000 | 222,000 | ||||||
Lost
income on loans during the year
|
$ | 1,069,000 | $ | 178,000 |
December 31,
|
||||||||
2009
|
2008
|
|||||||
Impaired
Loans
|
||||||||
With
related allowance for loan loss
|
$ | 8,668,000 | $ | 2,762,000 | ||||
Without
related allowance for loan loss
|
13,834,000 | 3,323,000 | ||||||
Total
impaired loans
|
$ | 22,502,000 | $ | 6,085,000 | ||||
Related
allowance for possible credit losses
|
$ | 1,903,000 | $ | 481,000 | ||||
Average
investment in impaired loans
|
$ | 13,700,000 | $ | 2,609,000 | ||||
Interest
recognized on impaired loans
|
$ | 182,000 | $ | 73,000 |
December 31,
|
||||||||
2009
|
2008
|
|||||||
Land
|
$ | 2,999,000 | $ | 2,999,000 | ||||
Buildings
and improvements
|
2,928,000 | 2,893,000 | ||||||
Leasehold
improvements
|
2,178,000 | 2,188,000 | ||||||
Furniture,
fixtures and equipment
|
3,627,000 | 4,292,000 | ||||||
11,732,000 | 12,372,000 | |||||||
Less:
accumulated depreciation and amortization
|
4,871,000 | 4,902,000 | ||||||
Total
premises & equipment, net
|
$ | 6,861,000 | $ | 7,470,000 |
December 31, 2009
|
December 31, 2008
|
|||||||||||||||
Weighted Average Rate
|
Amount
|
Weighted Average Rate
|
Amount
|
|||||||||||||
Noninterest-bearing
demand
|
- | % | $ | 88,427,000 | - | % | $ | 99,099,000 | ||||||||
NOW
accounts
|
1.66 | % | 133,270,000 | 0.86 | % | 73,176,000 | ||||||||||
Money
market accounts
|
0.98 | % | 85,014,000 | 1.95 | % | 87,592,000 | ||||||||||
Total
interest-bearing demand
|
1.40 | % | 218,284,000 | 1.45 | % | 160,768,000 | ||||||||||
Statement
savings and clubs
|
0.42 | % | 41,366,000 | 0.58 | % | 36,447,000 | ||||||||||
Business
savings
|
0.40 | % | 4,417,000 | 0.49 | % | 3,180,000 | ||||||||||
Total
savings
|
0.42 | % | 45,783,000 | 0.57 | % | 39,627,000 | ||||||||||
IRA
investment and variable rate savings
|
3.65 | % | 33,905,000 | 4.04 | % | 30,073,000 | ||||||||||
Brokered
certificates
|
- | % | - | 3.06 | % | 30,698,000 | ||||||||||
Money
market certificates
|
2.37 | % | 143,531,000 | 3.39 | % | 146,266,000 | ||||||||||
Total
certificates of deposit
|
2.61 | % | 177,436,000 | 3.44 | % | 207,037,000 | ||||||||||
Total
interest-bearing deposits
|
1.78 | % | 441,503,000 | 2.38 | % | 407,432,000 | ||||||||||
Total
deposits
|
1.49 | % | $ | 529,930,000 | 1.91 | % | $ | 506,531,000 |
December
31, 2009
|
||||
2010
|
$ | 125,283,000 | ||
2011
|
31,992,000 | |||
2012
|
12,100,000 | |||
2013
|
6,817,000 | |||
2014
|
1,244,000 | |||
$ | 177,436,000 |
December 31,
2009
|
December 31,
2008
|
|||||||||||||||
Weighted
Average
|
Weighted
Average
|
|||||||||||||||
Advances maturing
|
Amount
|
Rate
|
Amount
|
Rate
|
||||||||||||
Within
one year
|
$ | 18,600,000 | 0.32 | % | $ | 6,900,000 | 0.44 | % | ||||||||
After
one year, but within two years
|
3,000,000 | 2.28 | % | - | - | % | ||||||||||
After
two years, but within three years
|
3,000,000 | 2.86 | % | - | - | % | ||||||||||
After
three years, but within four years
|
15,000,000 | 3.30 | % | - | - | % | ||||||||||
After
four years, but within five years
|
- | - | % | 15,000,000 | 3.30 | % | ||||||||||
After
five years
|
15,000,000 | 1.98 | % | 15,000,000 | 1.98 | % | ||||||||||
$ | 54,600,000 | 1.84 | % | $ | 36,900,000 | 2.23 | % |
December
31,
|
||||||||
2009
|
2008
|
|||||||
Balance
|
$ | 15,396,000 | $ | 15,160,000 | ||||
Weighted
average interest rate at year end
|
4.72 | % | 5.00 | % | ||||
Weighted
average length of maturity
|
6.4
years
|
6.5
years
|
||||||
Maximum
amount outstanding at any month end
|
||||||||
during
the year
|
$ | 16,019,000 | $ | 16,599,000 | ||||
Average
amount outstanding during the year
|
$ | 15,316,000 | $ | 16,259,000 | ||||
Average
interest rate during the year
|
4.92 | % | 3.85 | % |
Actual
|
Required for Capital Adequacy
Purposes
|
To Be Well Capitalized Under Prompt Corrective
Action Regulations
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
December
31, 2009
|
||||||||||||||||||||||||
Leverage
(Tier 1) capital
|
||||||||||||||||||||||||
Consolidated
|
$ | 60,067,000 | 9.22 | % | $ | 26,065,000 | 4.00 | % | N/A | N/A | ||||||||||||||
Bank
|
55,049,000 | 8.51 | % | 25,881,000 | 4.00 | % | $ | 32,352,000 | 5.00 | % | ||||||||||||||
Risk-based
capital:
|
||||||||||||||||||||||||
Tier
1
|
||||||||||||||||||||||||
Consolidated
|
60,067,000 | 11.99 | % | 20,041,000 | 4.00 | % | N/A | N/A | ||||||||||||||||
Bank
|
55,049,000 | 11.02 | % | 19,986,000 | 4.00 | % | 29,979,000 | 6.00 | % | |||||||||||||||
Total
|
||||||||||||||||||||||||
Consolidated
|
66,338,000 | 13.24 | % | 40,081,000 | 8.00 | % | N/A | N/A | ||||||||||||||||
Bank
|
61,303,000 | 12.27 | % | 39,972,000 | 8.00 | % | 49,965,000 | 10.00 | % | |||||||||||||||
December
31, 2008
|
||||||||||||||||||||||||
Leverage
(Tier 1) capital
|
||||||||||||||||||||||||
Consolidated
|
$ | 49,014,000 | 8.01 | % | $ | 24,480,000 | 4.00 | % | N/A | N/A | ||||||||||||||
Bank
|
44,069,000 | 7.26 | % | 24,288,000 | 4.00 | % | $ | 30,360,000 | 5.00 | % | ||||||||||||||
Risk-based
capital:
|
||||||||||||||||||||||||
Tier
1
|
||||||||||||||||||||||||
Consolidated
|
49,014,000 | 10.50 | % | 18,680,000 | 4.00 | % | N/A | N/A | ||||||||||||||||
Bank
|
44,069,000 | 9.46 | % | 18,630,000 | 4.00 | % | 27,945,000 | 6.00 | % | |||||||||||||||
Total
|
||||||||||||||||||||||||
Consolidated
|
54,180,000 | 11.60 | % | 37,360,000 | 8.00 | % | N/A | N/A | ||||||||||||||||
Bank
|
49,234,000 | 10.57 | % | 37,259,000 | 8.00 | % | 46,574,000 | 10.00 | % |
2009
|
||||||||
Weighted
|
||||||||
Average
|
||||||||
Exercise
|
||||||||
Shares
|
Price
|
|||||||
Outstanding
at beginning of year
|
28,646 | $ | 7.50 | |||||
Exercised
|
(8,370 | ) | 5.31 | |||||
Forfeited
|
(563 | ) | 11.19 | |||||
Outstanding
at end of year
|
19,713 | $ | 8.33 | |||||
Intrinsic
value at year end
|
$ | 27,223 | ||||||
Options
exercisable at year end
|
19,713 | |||||||
Intrinsic
value of options exercisable
|
$ | 27,223 | ||||||
Weighted-average
remaining contractual term (years)
|
1.72 |
Number
|
Weighted-Average
|
|||||||||
Exercise
|
Outstanding
|
Remaining
|
||||||||
Price
|
at 12/31/09
|
Life
|
||||||||
$ | 5.83 | 10,520 |
0.13
years
|
|||||||
11.19 | 9,193 | 3.54 | ||||||||
$ | 8.33 | 19,713 |
1.72 years
|
2009
|
||||||||
Weighted
|
||||||||
Average
|
||||||||
Exercise
|
||||||||
Shares
|
Price
|
|||||||
Outstanding
at beginning of year
|
60,904 | $ | 11.20 | |||||
Granted
|
2,431 | 9.00 | ||||||
Outstanding
at end of year
|
63,335 | $ | 11.12 | |||||
Intrinsic
value at year end
|
$ | - | ||||||
Options
exercisable at year end
|
36,594 | |||||||
Intrinsic
value of options exercisable
|
$ | - | ||||||
Weighted-average
remaining contractual term (years)
|
2.22 |
Risk-free
interest rate
|
0.88%
|
Expected
term
|
2.42
years
|
Expected
stock price volatility
|
42.13%
|
Dividend
yield
|
3.88%
|
Number
|
Weighted-Average
|
Number
|
||||||||||||
Exercise
|
Outstanding
|
Remaining
|
Exercisable
|
|||||||||||
Price
|
at
12/31/09
|
Life
|
at
12/31/09
|
|||||||||||
$ | 12.07 | 6,205 |
0.80
years
|
6,205 | ||||||||||
11.11 | 54,699 | 2.37 | 30,389 | |||||||||||
9.00 | 2,431 | 2.37 | - | |||||||||||
$ | 11.12 | 63,335 |
2.22
years
|
36,594 |
2009
|
2008
|
|||||||
Net
income
|
$ | 3,634,000 | $ | 3,501,000 | ||||
Dividends
on preferred stock and accretion
|
504,000 | - | ||||||
Net
income available to common stockholders
|
$ | 3,130,000 | $ | 3,501,000 | ||||
Weighted
average common shares outstanding - basic
|
5,832,186 | 5,853,562 | ||||||
Effect
of dilutive securities - stock options
|
4,553 | 11,564 | ||||||
Weighted
average common shares outstanding - diluted
|
5,836,739 | 5,865,126 | ||||||
Earnings
per common share:
|
||||||||
Basic
|
$ | 0.54 | $ | 0.60 | ||||
Diluted
|
$ | 0.54 | $ | 0.60 |
Year ended December 31,
|
||||||||
2009
|
2008
|
|||||||
Current
tax expense:
|
||||||||
Federal
|
$ | 2,045,000 | $ | 1,364,000 | ||||
State
|
644,000 | 449,000 | ||||||
2,689,000 | 1,813,000 | |||||||
Deferred
tax benefit:
|
||||||||
Federal
|
(938,000 | ) | (293,000 | ) | ||||
State
|
(278,000 | ) | (89,000 | ) | ||||
Valuation
allowance
|
6,000 | 17,000 | ||||||
(1,210,000 | ) | (365,000 | ) | |||||
$ | 1,479,000 | $ | 1,448,000 |
Year Ended December 31,
|
||||||||
2009
|
2008
|
|||||||
Federal
income tax
|
$ | 1,738,000 | $ | 1,683,000 | ||||
Add
(deduct) effect of:
|
||||||||
State
income taxes, net of federal income tax effect
|
246,000 | 245,000 | ||||||
Nontaxable
interest income
|
(398,000 | ) | (375,000 | ) | ||||
Life
insurance
|
(113,000 | ) | (108,000 | ) | ||||
Nondeductible
expenses
|
24,000 | 28,000 | ||||||
Change
in valuation reserve – federal
|
- | (7,000 | ) | |||||
Other
items, net
|
(18,000 | ) | (18,000 | ) | ||||
Effective
federal income taxes
|
$ | 1,479,000 | $ | 1,448,000 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
Deferred
tax assets:
|
||||||||
Allowance
for loan losses
|
$ | 2,764,000 | $ | 2,063,000 | ||||
Accrued
reserves
|
17,000 | 27,000 | ||||||
Stock
compensation
|
79,000 | 60,000 | ||||||
Nonaccrual
loan interest
|
489,000 | 75,000 | ||||||
Depreciation
|
268,000 | 167,000 | ||||||
Contribution
carry forward
|
183,000 | 206,000 | ||||||
State
capital loss carry forward
|
83,000 | 96,000 | ||||||
3,883,000 | 2,694,000 | |||||||
Valuation
reserve
|
(105,000 | ) | (111,000 | ) | ||||
3,778,000 | 2,583,000 | |||||||
Deferred
tax liabilities:
|
||||||||
Unrealized
gains on securities available for sale
|
294,000 | 470,000 | ||||||
Other
|
34,000 | 50,000 | ||||||
328,000 | 520,000 | |||||||
Net
deferred tax assets
|
$ | 3,450,000 | $ | 2,063,000 |
Year
Ending December 31
|
Minimum
Rent
|
|||
2010
|
$ | 935,000 | ||
2011
|
936,000 | |||
2012
|
919,000 | |||
2013
|
891,000 | |||
2014
|
640,000 | |||
Thereafter
|
2,645,000 | |||
$ | 6,966,000 |
Notional
amount
|
$7,000,000 |
Pay
rate
|
7.00% |
Receive
rate
|
3
month LIBOR plus 2.95%
|
Maturity
|
March
17, 2016
|
Unrealized
loss
|
$258,000 |
The
Effect of Derivative Instruments on the Consolidated Income
Statement
|
||||
for
the year ended December 31, 2009
|
||||
Amount
of Loss,
|
||||
net
of taxes,
|
||||
Recognized
in OCI
|
||||
on
Derivative
|
||||
Cash Flow Hedging
Relationship
|
(Effective
Portion)
|
|||
Cash
flow hedge
|
$ | 155,000 |
Fair Value Measurements
Using
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical
Assets
(Level 1)
|
Significant Other Observable Inputs (Level
2)
|
Significant Unobservable
Inputs
(Level 3)
|
|||||||||||||
December 31, 2009
|
||||||||||||||||
Assets:
|
||||||||||||||||
Available
for sale securities
|
||||||||||||||||
U.S.
government -
|
||||||||||||||||
sponsored
agencies
|
$ | 32,286,000 | $ | - | $ | 32,286,000 | $ | - | ||||||||
Obligations
of state and
|
- | |||||||||||||||
political
subdivisions
|
5,397,000 | - | 5,397,000 | - | ||||||||||||
Mortgage-backed
securities-
|
||||||||||||||||
residential
|
62,228,000 | - | 62,228,000 | - | ||||||||||||
Other
equity investments
|
3,115,000 | - | 3,115,000 | - | ||||||||||||
Total
available for
|
||||||||||||||||
sale
securities
|
$ | 103,026,000 | $ | - | $ | 103,026,000 | $ | - | ||||||||
Liabilities:
|
||||||||||||||||
Interest
rate swap
|
$ | 258,000 | $ | - | $ | 258,000 | $ | - |
December 31, 2008
|
||||||||||||||||
Assets:
|
||||||||||||||||
Available
for sale securities
|
||||||||||||||||
U.S.
government -
|
||||||||||||||||
sponsored
agencies
|
$ | 49,660,000 | $ | - | $ | 49,660,000 | $ | - | ||||||||
Obligations
of state and
|
||||||||||||||||
political subdivisions | 5,820,000 | - | 5,820,000 | - | ||||||||||||
Mortgage-backed
securities-
|
||||||||||||||||
residential
|
31,670,000 | - | 31,670,000 | - | ||||||||||||
Other
equity investments
|
2,873,000 | - | 2,873,000 | - | ||||||||||||
Total
available for
|
||||||||||||||||
sale
securities
|
$ | 90,023,000 | $ | - | $ | 90,023,000 | $ | - |
Fair
Value Measurements Using
|
||||||||||||||||
Carrying
Value
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs
(Level
3)
|
|||||||||||||
December
31, 2009
|
||||||||||||||||
Assets:
|
||||||||||||||||
Impaired
loans
|
$ | 6,765,000 | $ | - | $ | - | $ | 6,765,000 | ||||||||
December
31, 2008
|
||||||||||||||||
Assets:
|
||||||||||||||||
Impaired
loans
|
$ | 2,281,000 | $ | - | $ | - | $ | 2,281,000 |
December 31,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
Amount
|
Fair Value
|
Amount
|
Fair Value
|
|||||||||||||
Financial
Assets:
|
||||||||||||||||
Cash
and cash equivalents
|
$ | 8,871,000 | $ | 8,871,000 | $ | 12,814,000 | $ | 12,814,000 | ||||||||
Securities
available for sale
|
103,026,000 | 103,026,000 | 90,023,000 | 90,023,000 | ||||||||||||
Securities
held to maturity
|
67,717,000 | 68,765,000 | 48,856,000 | 49,150,000 | ||||||||||||
FHLB-NY
stock
|
3,227,000 | N/A | 2,420,000 | N/A | ||||||||||||
Net
loans
|
453,119,000 | 453,813,000 | 434,103,000 | 436,193,000 | ||||||||||||
Accrued
interest receivable
|
3,167,000 | 3,167,000 | 3,371,000 | 3,371,000 | ||||||||||||
Financial
liabilities:
|
||||||||||||||||
Deposits
|
529,930,000 | 531,230,000 | 506,531,000 | 508,325,000 | ||||||||||||
FHLB-NY
Advances
|
54,600,000 | 51,949,000 | 36,900,000 | 34,973,000 | ||||||||||||
Securities
sold under agreements
to
repurchase
|
15,396,000 | 15,396,000 | 15,160,000 | 15,160,000 | ||||||||||||
Subordinated
debenture
|
7,217,000 | 5,943,000 | 7,217,000 | 7,399,000 | ||||||||||||
Accrued
interest payable
|
1,193,000 | 1,193,000 | 1,582,000 | 1,582,000 |
December 31,
|
||||||||
2009
|
2008
|
|||||||
Assets
|
||||||||
Cash
and due from banks
|
$ | 294,000 | $ | 131,000 | ||||
Securities
available for sale
|
3,436,000 | 2,582,000 | ||||||
Securities
held to maturity
|
992,000 | 1,992,000 | ||||||
Investment
in subsidiary
|
55,689,000 | 44,833,000 | ||||||
Accrued
interest receivable
|
30,000 | 45,000 | ||||||
Other
assets
|
528,000 | 466,000 | ||||||
Total
assets
|
$ | 60,969,000 | $ | 50,049,000 | ||||
Liabilities
and Stockholders’ Equity
|
||||||||
Subordinated
debentures
|
$ | 7,217,000 | $ | 7,217,000 | ||||
Other
liabilities
|
241,000 | 36,000 | ||||||
Stockholders'
equity
|
53,511,000 | 42,796,000 | ||||||
Total
liabilities and Stockholders' equity
|
$ | 60,969,000 | $ | 50,049,000 |
Years
ended December 31,
|
||||||||
2009
|
2008
|
|||||||
Interest
income - securities available for sale
|
$ | 103,000 | $ | 126,000 | ||||
Interest
income - securities held to maturity
|
104,000 | 110,000 | ||||||
Dividend
income
|
3,000,000 | 2,100,000 | ||||||
Other
income
|
24,000 | 18,000 | ||||||
Total
income
|
3,231,000 | 2,354,000 | ||||||
Interest
expense
|
285,000 | 466,000 | ||||||
Other
expenses
|
319,000 | 216,000 | ||||||
Total
expenses
|
604,000 | 682,000 | ||||||
Income
before income tax benefit
|
2,627,000 | 1,672,000 | ||||||
Tax
benefit
|
(125,000 | ) | (144,000 | ) | ||||
Income
before equity in undistributed earnings of subsidiary
|
2,752,000 | 1,816,000 | ||||||
Equity
in undistributed earnings of subsidiary
|
882,000 | 1,685,000 | ||||||
Net
income
|
3,634,000 | 3,501,000 | ||||||
Dividends
on preferred stock and accretion
|
504,000 | - | ||||||
Net
income available to common stockholders
|
$ | 3,130,000 | $ | 3,501,000 |
Years
ended December 31,
|
||||||||
2009
|
2008
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ | 3,634,000 | $ | 3,501,000 | ||||
Adjustments
to reconcile net income to
|
||||||||
net
cash provided by operating activities:
|
||||||||
Equity
in undistributed earnings of subsidiary
|
(882,000 | ) | (1,685,000 | ) | ||||
Amortization
of premiums and accretion of discounts, net
|
4,000 | (1,000 | ) | |||||
Gain
on calls and sales of securities
|
(13,000 | ) | - | |||||
Decrease
(increase) in accrued interest receivable
|
15,000 | (2,000 | ) | |||||
Increase
in other assets
|
(33,000 | ) | (49,000 | ) | ||||
(Decrease)
increase in other liabilities
|
(13,000 | ) | 3,000 | |||||
Net
cash provided by operating activities
|
2,712,000 | 1,767,000 | ||||||
Cash
flows from investing activities:
|
||||||||
Purchase
of securities available for sale
|
(3,028,000 | ) | (998,000 | ) | ||||
Proceeds
from principal repayments on securities available for sale
|
98,000 | - | ||||||
Proceeds
from calls on securities available for sale
|
2,000,000 | 1,000,000 | ||||||
Proceeds
from calls on securities held to maturity
|
1,000,000 | - | ||||||
Investment
in subsidiary bank
|
(10,000,000 | ) | - | |||||
Net
cash (used in) provided by investing activities
|
(9,930,000 | ) | 2,000 | |||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from issuance of preferred stock and warrants
|
9,951,000 | - | ||||||
Cash
dividends paid on common stock
|
(2,112,000 | ) | (1,967,000 | ) | ||||
Cash
dividends paid on preferred stock
|
(396,000 | ) | - | |||||
Payment
of discount on dividend reinvestment plan
|
(44,000 | ) | (45,000 | ) | ||||
Purchase
of treasury stock
|
(75,000 | ) | (370,000 | ) | ||||
Exercise
of stock options
|
12,000 | 49,000 | ||||||
Tax
benefit of stock plans
|
- | 2,000 | ||||||
Issuance
of common stock
|
45,000 | 41,000 | ||||||
Net
cash provided by (used in) financing activities
|
7,381,000 | (2,290,000 | ) | |||||
Net
increase (decrease) in cash and cash equivalents
|
163,000 | (521,000 | ) | |||||
Cash
and cash equivalents - beginning
|
131,000 | 652,000 | ||||||
Cash
and cash equivalents - ending
|
$ | 294,000 | $ | 131,000 |
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
Total
|
||||||||||||||||
Year
ended December 31, 2009:
|
||||||||||||||||||||
Interest
income
|
$ | 8,473 | $ | 8,542 | $ | 8,610 | $ | 8,531 | $ | 34,156 | ||||||||||
Interest
expense
|
2,875 | 2,722 | 2,634 | 2,580 | 10,811 | |||||||||||||||
Net
interest income before provision for loan losses
|
5,598 | 5,820 | 5,976 | 5,951 | 23,345 | |||||||||||||||
Provision
for loan losses
|
150 | 1,025 | 1,200 | 1,200 | 3,575 | |||||||||||||||
Net
interest income after provision for loan losses
|
5,448 | 4,795 | 4,776 | 4,751 | 19,770 | |||||||||||||||
Noninterest
income
|
707 | 949 | 821 | 656 | 3,133 | |||||||||||||||
Noninterest
expenses (a)
|
4,408 | 4,684 | 4,346 | 4,352 | 17,790 | |||||||||||||||
Income
before income tax expense
|
1,747 | 1,060 | 1,251 | 1,055 | 5,113 | |||||||||||||||
Income
tax expense
|
560 | 280 | 358 | 281 | 1,479 | |||||||||||||||
Net
income
|
1,187 | 780 | 893 | 774 | 3,634 | |||||||||||||||
Dividends
on preferred stock and accretion
|
92 | 137 | 138 | 137 | 504 | |||||||||||||||
Net
income available to common stockholders
|
$ | 1,095 | $ | 643 | $ | 755 | $ | 637 | $ | 3,130 | ||||||||||
Basic
earnings per share
|
$ | 0.19 | $ | 0.11 | $ | 0.13 | $ | 0.11 | $ | 0.54 | ||||||||||
Diluted
earnings per share
|
$ | 0.19 | $ | 0.11 | $ | 0.13 | $ | 0.11 | $ | 0.54 | ||||||||||
First
|
Second
|
Third
|
Fourth
|
|||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Total
|
||||||||||||||||
Year
ended December 31, 2008:
|
||||||||||||||||||||
Interest
income
|
$ | 8,657 | $ | 8,710 | $ | 8,910 | $ | 8,797 | $ | 35,074 | ||||||||||
Interest
expense
|
3,495 | 3,154 | 3,100 | 3,022 | 12,771 | |||||||||||||||
Net
interest income before provision for loan losses
|
5,162 | 5,556 | 5,810 | 5,775 | 22,303 | |||||||||||||||
Provision
for loan losses (b)
|
100 | 260 | 1,175 | 2,050 | 3,585 | |||||||||||||||
Net
interest income after provision for loan losses
|
5,062 | 5,296 | 4,635 | 3,725 | 18,718 | |||||||||||||||
Noninterest
income (c)
|
976 | 1,017 | 894 | 1,330 | 4,217 | |||||||||||||||
Noninterest
expenses
|
4,479 | 4,562 | 4,362 | 4,583 | 17,986 | |||||||||||||||
Income
before income tax expense
|
1,559 | 1,751 | 1,167 | 472 | 4,949 | |||||||||||||||
Income
tax expense
|
498 | 572 | 329 | 49 | 1,448 | |||||||||||||||
Net
income
|
$ | 1,061 | $ | 1,179 | $ | 838 | $ | 423 | $ | 3,501 | ||||||||||
Basic
earnings per share
|
$ | 0.18 | $ | 0.20 | $ | 0.14 | $ | 0.08 | $ | 0.60 | ||||||||||
Diluted
earnings per share
|
$ | 0.18 | $ | 0.20 | $ | 0.14 | $ | 0.08 | $ | 0.60 |
Equity
Compensation Plan Information
|
||||||||||||
Number
of securities to be issued upon exercise of outstanding options, warrants
and rights
|
Weighted-average
exercise price of outstanding options, warrants and rights
|
Number
of securities remaining available for future issuance under equity
compensation plans (excluding securities reflected in column
(a))
|
||||||||||
(a)
|
(b)
|
(c)
|
||||||||||
Equity
compensation plans approved by
security
holders
|
83,048 | $ | 10.46 | 269,530 | ||||||||
Equity
compensation plans not approved by
security
holders
|
- | - | 553,026 | |||||||||
Total
|
83,048 | $ | 10.46 | 822,556 |
Exhibit
|
|
Number
|
Description of Exhibits
|
3(i)
|
Restated
Certificate of Incorporation of Stewardship Financial Corporation
(1)
|
3(ii).1
|
By-Laws of Stewardship Financial Corporation
(2)
|
3(ii).2
|
Amendment to By-Laws of Stewardship Financial
Corporation (3)
|
4(i)
|
Form
of Certificate for the Series A Preferred Shares (4)
|
4(ii)
|
Warrant
to Purchase up to 127,119 Shares of Common Stock (5)
|
10(i)
|
1995
Incentive Stock Option Plan (6)
|
10(ii)
|
1995
Employee Stock Purchase Plan (7)
|
10
(iii)
|
Stewardship
Financial Corporation Dividend Reinvestment Plan (8)
|
10
(iv)
|
Stewardship
Financial Corporation Director Stock Plan (9)
|
[10(v)
|
Amended
and Restated 1995 Stock Option Plan (9)
|
10(vi)
|
Amended
and Restated Director Stock Plan (10)
|
10(vii)
|
Dividend
Reinvestment Plan (11)
|
10(viii)
|
2001
Stock Option Plan For Non-Employee Directors (12)
|
10(ix)
|
Dividend
Reinvestment Plan (13)
|
10(x)
|
2006
Stock Option Plan for Non-Employee Directors (14)
|
10(xi)
|
Letter
Agreement, dated January 30, 2009, including Securities Purchase Agreement
– Standard Terms incorporated by reference therein, between Stewardship
Financial Corporation and the Treasury (15)
|
10(xii)
|
Form
of Waiver, executed by each of Paul Van Ostenbridge, Claire M. Chadwick,
Julie E. Holland and Robert C. Vliet (16)
|
13
|
Annual
Report to Shareholders for the year ended December 31,
2009
|
21
|
Subsidiaries
of the Registrant23 Consent of Crowe Horwath LLP
|
31.1
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
31.2
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
32.1
|
Certification
of Chief Executive Officer and Chief Financial Officer pursuant to Section
906 of the Sarbanes-Oxley Act of 2002.
|
99.1
|
Certification of Chief Executive Officer pursuant
to the Emergency Economic Stability Act of 2008
|
99.2
|
Certification of Chief Financial Officer pursuant
to the Emergency Economic Stability Act of
2008
|
(1)
|
Incorporated
by reference from Exhibit 3(i).1 to the Corporation’s Quarterly Report on
Form 10-Q, filed May 15, 2009.
|
(2)
|
Incorporated by reference from Exhibit 3(ii) to the Corporation’s
Registration Statement on Form 8-B, Registration No. 0-21855, filed on
December 10, 1996.
|
(3)
|
Incorporate by reference from Exhibit 3.1 to the Corporation’s
Current Report on Form 8-K, filed on December 27,
2007.
|
(4)
|
Incorporated by reference from Exhibit 4.1 to the Corporation’s
Current Report on Form 8-K, filed February 4,
2009.
|
(5)
|
Incorporated
by reference from Exhibit 4.2 to the Corporation’s Current Report on Form
8-K, filed February 4, 2009.
|
(6)
|
Incorporated
by reference from Exhibit 5(B)(10)(a) to the Corporation’s Registration
Statement on Form 8-B, Registration No. 0-21855, filed December 10,
1996.
|
(7)
|
Incorporated
by reference from Exhibits 4(c) to 23(d) from the Corporation’s
Registration Statement on Form S-8, Registration No. 333-20793, filed
January 31, 1997.
|
(8)
|
Incorporated
by reference from Exhibit 4(a) from the Corporation’s Registration
Statement on Form S-3, Registration No. 333-20699, filed January 30,
1997.
|
(9)
|
Incorporated
by reference from Exhibit 4(a) from the Corporation’s Registration
Statement on Form S-8, Registration No. 333-31245, filed July 11,
1997.
|
(10)
|
Incorporated
by reference from Exhibits 10(vii) and 10(viii) from the Corporation’s
Annual Report on Form 10-KSB, filed March 31,
1999.
|
(11)
|
Incorporated
by reference from Exhibit 4(a) from the Corporation’s Registration
Statement on Form S-3, Registration No. 333-54738, filed January 31,
2001.
|
(12)
|
Incorporated by reference from Exhibit 4(b) from the Corporation’s
Registration Statement on Form S-8, Registration No. 333-87842, filed May
8, 2002.
|
(13)
|
Incorporated by reference from Exhibit 4(a) from the Corporation’s
Registration Statement on Form S-3, Registration No. 333-133632, filed
April 28, 2006.
|
(14)
|
Incorporated
by reference from Exhibit 5(a) from the Corporation’s Registration
Statement on Form S-8, Registration No. 333-135462, filed June 29,
2006.
|
(15)
|
Incorporated
by reference from Exhibit 10.1 to the Corporation’s Current Report on Form
8-K, filed February 4, 2009.
|
(16)
|
Incorporated
by reference from Exhibit 10.2 to the Corporation’s Current Report on Form
8-K, filed February 4, 2009.
|
STEWARDSHIP
FINANCIAL CORPORATION
|
||
By
:
|
/s/ Paul Van
Ostenbridge
|
|
Paul
Van Ostenbridge
|
||
Chief
Executive Officer and Director
|
Name
|
Title
|
Date
|
||
/s/ Paul Van
Ostenbridge
|
Chief
Executive Officer
|
March
26, 2010
|
||
Paul
Van Ostenbridge
|
and
Director
|
|||
(Principal
Executive Officer)
|
||||
/s/ Claire M.
Chadwick
|
Chief
Financial Officer
|
March
26, 2010
|
||
Claire
M. Chadwick
|
(Principal
Financial Officer and
|
|||
Principal
Accounting Officer)
|
||||
/s/ Richard W. Culp |
Director
|
March
26, 2010
|
||
Richard W. Culp | ||||
/s/ Harold Dyer
|
Director
|
March
26, 2010
|
||
Harold
Dyer
|
||||
/s/ William
Hanse
|
Chairman
of the Board
|
March
26, 2010
|
||
William
Hanse
|
||||
/s/ Margo Lane
|
Director
|
March
26, 2010
|
||
Margo
Lane
|
||||
/s/ Arie
Leegwater
|
Director
|
March
26, 2010
|
||
Arie
Leegwater
|
||||
/s/ John L.
Steen
|
Director
|
March
26, 2010
|
||
John
L. Steen
|
||||
/s/ Robert
Turner
|
Secretary
and Director
|
March
26, 2010
|
||
Robert
Turner
|
||||
/s/ William J.
VanderEems
|
Director
|
March
26, 2010
|
||
William
J. VanderEems
|
||||
/s/ Abe Van
Wingerden
|
Director
|
March
26, 2010
|
||
Abe
Van Wingerden
|
||||
/s/ Michael
Westra
|
Vice
Chairman of the Board
|
March
26, 2010
|
||
Michael
Westra
|
||||
/s/ Howard
Yeaton
|
Director
|
March
26, 2010
|
||
Howard
Yeaton
|