x
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
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SECURITIES
EXCHANGE ACT OF 1934
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NEW
YORK
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11-2934195
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(State
or other jurisdiction of incorporation or organization)
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(IRS
Employer Identification Number)
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2200 MONTAUK HIGHWAY,
BRIDGEHAMPTON, NEW YORK
|
11932
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(Address
of principal executive offices)
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(Zip
Code)
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PART
I -
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Item
1.
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Item
2.
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Item
3.
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Item
4.
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PART
II -
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Item
1.
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Item
1A.
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Item
2.
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Item
3.
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Item
4.
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Item
5.
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Item
6.
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Exhibit
31.1
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Certification
of Principal Executive Officer pursuant to Rule
13a-14(a)
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Exhibit
31.2
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Certification
of Principal Financial Officer pursuant to Rule
13a-14(a)
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Exhibit
32.1
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Certification
of Chief Executive Officer and Chief Financial Officer pursuant to Rule
13a-14(b) and 18 U.S.C. Section
1350
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Consolidated
Balance Sheets (Unaudited)
|
||||||||
(In
thousands, except share and per share amounts)
|
||||||||
June 30,
|
December 31,
|
|||||||
2008
|
2007
|
|||||||
ASSETS
|
||||||||
Cash
and due from banks
|
$ | 29,744 | $ | 14,213 | ||||
Federal
funds sold
|
4,000 | - | ||||||
Interest
earning deposits with banks
|
311 | 135 | ||||||
Total
cash and cash equivalents
|
34,055 | 14,348 | ||||||
Securities
available for sale, at fair value
|
248,355 | 189,771 | ||||||
Securities
held to maturity (fair value of $4,386 and $5,844,
respectively)
|
4,385 | 5,836 | ||||||
Total
securities, net
|
252,740 | 195,607 | ||||||
Loans
|
399,781 | 375,236 | ||||||
Allowance
for loan losses
|
(3,324 | ) | (2,954 | ) | ||||
Loans,
net
|
396,457 | 372,282 | ||||||
Premises
and equipment, net
|
18,427 | 18,469 | ||||||
Accrued
interest receivable
|
3,100 | 2,707 | ||||||
Other
assets
|
5,450 | 4,011 | ||||||
Total
Assets
|
$ | 710,229 | $ | 607,424 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Demand
deposits
|
$ | 214,485 | $ | 176,130 | ||||
Savings,
NOW and money market deposits
|
325,313 | 253,012 | ||||||
Certificates
of deposit of $100,000 or more
|
44,860 | 44,769 | ||||||
Other
time deposits
|
33,137 | 34,998 | ||||||
Total
deposits
|
617,795 | 508,909 | ||||||
Federal
funds purchased and repurchase agreements
|
32,300 | 32,000 | ||||||
Federal
Home Loan Bank advances
|
- | 10,000 | ||||||
Accrued
interest payable
|
653 | 641 | ||||||
Other
liabilities and accrued expenses
|
7,406 | 4,765 | ||||||
Total
Liabilities
|
658,154 | 556,315 | ||||||
Stockholders'
equity:
|
||||||||
Common
stock, par value $.01 per share:
|
||||||||
Authorized:
20,000,000 shares; 6,386,306 issued; 6,146,872 and 6,110,802
shares outstanding, respectively
|
64 | 64 | ||||||
Surplus
|
21,159 | 21,671 | ||||||
Retained
earnings
|
38,374 | 37,031 | ||||||
Less: Treasury
Stock at cost, 239,434 and 276,274 shares, respectively
|
(7,182 | ) | (7,889 | ) | ||||
52,415 | 50,877 | |||||||
Accumulated
other comprehensive (loss)/income:
|
||||||||
Net
unrealized (loss) gain on securities, net of deferred taxes of
($247) and ($140), respectively
|
(375 | ) | 213 | |||||
Change
in pension assets (liabilities), net of deferred taxes of $5 and ($7),
respectively
|
35 | 19 | ||||||
Total
Stockholders' Equity
|
52,075 | 51,109 | ||||||
Total
Liabilities and Stockholders' Equity
|
$ | 710,229 | $ | 607,424 |
Unaudited
Consolidated Statements of Income
|
||||||||||||||||
(In thousands,
except per share amounts)
|
||||||||||||||||
For
the three months ended June 30,
|
For
the six months ended June 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Interest
income:
|
||||||||||||||||
Loans
(including fee income)
|
$ | 6,906 | $ | 6,506 | $ | 13,763 | $ | 12,710 | ||||||||
Mortgage-backed
securities
|
1,875 | 1,353 | 3,476 | 2,747 | ||||||||||||
State
and municipal obligations
|
446 | 522 | 898 | 1,055 | ||||||||||||
U.S.
Treasury and government agency securities
|
260 | 286 | 511 | 662 | ||||||||||||
Federal
funds sold
|
70 | 195 | 100 | 242 | ||||||||||||
Deposits
with banks
|
1 | - | 4 | 2 | ||||||||||||
Total
interest income
|
9,558 | 8,862 | 18,752 | 17,418 | ||||||||||||
Interest
expense:
|
||||||||||||||||
Savings,
NOW and money market deposits
|
1,325 | 2,074 | 2,902 | 4,174 | ||||||||||||
Certificates
of deposit of $100,000 or more
|
523 | 345 | 1,054 | 680 | ||||||||||||
Other
time deposits
|
254 | 274 | 577 | 545 | ||||||||||||
Federal
funds purchased and repurchase agreements
|
120 | 14 | 231 | 65 | ||||||||||||
Federal
Home Loan Bank Advances
|
26 | - | 30 | 12 | ||||||||||||
Total
interest expense
|
2,248 | 2,707 | 4,794 | 5,476 | ||||||||||||
Net
interest income
|
7,310 | 6,155 | 13,958 | 11,942 | ||||||||||||
Provision
for loan losses
|
325 | 50 | 525 | 95 | ||||||||||||
Net
interest income after provision for loan losses
|
6,985 | 6,105 | 13,433 | 11,847 | ||||||||||||
Non
interest income:
|
||||||||||||||||
Service
charges on deposit accounts
|
805 | 655 | 1,504 | 1,216 | ||||||||||||
Fees
for other customer services
|
437 | 419 | 775 | 771 | ||||||||||||
Title
fee income
|
317 | 386 | 695 | 779 | ||||||||||||
Net
securities losses
|
- | - | - | (101 | ) | |||||||||||
Other
operating income
|
50 | 81 | 81 | 110 | ||||||||||||
Total
non interest income
|
1,609 | 1,541 | 3,055 | 2,775 | ||||||||||||
Non
interest expense:
|
||||||||||||||||
Salaries
and employee benefits
|
3,081 | 2,523 | 6,139 | 5,204 | ||||||||||||
Net
occupancy expense
|
440 | 405 | 907 | 848 | ||||||||||||
Furniture
and fixture expense
|
204 | 202 | 410 | 418 | ||||||||||||
Other
operating expenses
|
1,558 | 1,246 | 2,816 | 2,386 | ||||||||||||
Total
non interest expense
|
5,283 | 4,376 | 10,272 | 8,856 | ||||||||||||
Income
before income taxes
|
3,311 | 3,270 | 6,216 | 5,766 | ||||||||||||
Income
tax expense
|
1,076 | 1,063 | 2,011 | 1,810 | ||||||||||||
Net
income
|
$ | 2,235 | $ | 2,207 | $ | 4,205 | $ | 3,956 | ||||||||
Basic
earnings per share
|
$ | 0.37 | $ | 0.36 | $ | 0.69 | $ | 0.65 | ||||||||
Diluted
earnings per share
|
$ | 0.37 | $ | 0.36 | $ | 0.69 | $ | 0.65 | ||||||||
Comprehensive
(loss)/income
|
$ | (583 | ) | $ | 489 | $ | 3,633 | $ | 2,473 |
Consolidated
Statements of Stockholders' Equity (unaudited)
|
||||||||||||||||||||||||||||
(In
thousands, except per share amounts)
|
||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||
Common
|
Comprehensive
|
Retained
|
Treasury
|
Comprehensive
|
||||||||||||||||||||||||
Stock
|
Surplus
|
Income
|
Earnings
|
Stock
|
Income
(Loss)
|
Total
|
||||||||||||||||||||||
Balance
at December 31, 2007
|
$ | 64 | $ | 21,671 | $ | 37,031 | $ | (7,889 | ) | $ | 232 | $ | 51,109 | |||||||||||||||
Net
income
|
4,205 | 4,205 | 4,205 | |||||||||||||||||||||||||
Stock
awards granted
|
(798 | ) | 798 | - | ||||||||||||||||||||||||
Stock
awards forfeited
|
91 | (91 | ) | - | ||||||||||||||||||||||||
Shared
based compensation expense
|
195 | 195 | ||||||||||||||||||||||||||
Cash
dividends declared, $0.46 per share
|
(2,827 | ) | (2,827 | ) | ||||||||||||||||||||||||
Other
comprehensive income, net of deferred tax
|
- | |||||||||||||||||||||||||||
Change
in unrealized net losses in securities available for sale, net of deferred
tax effects
|
(588 | ) | (588 | ) | (588 | ) | ||||||||||||||||||||||
Adjustment
to pension liability, net of deferred taxes
|
16 | (35 | ) | 16 | (19 | ) | ||||||||||||||||||||||
Comprehensive
Income
|
3,633 | - | ||||||||||||||||||||||||||
Balance
at June 30, 2008
|
$ | 64 | $ | 21,159 | $ | 38,374 | $ | (7,182 | ) | $ | (340 | ) | $ | 52,075 |
Consolidated
Statements of Cash Flows (unaudited)
|
||||||||
(In
thousands)
|
||||||||
Six
months ended June 30,
|
2008
|
2007
|
||||||
Operating
activities:
|
||||||||
Net
Income
|
$ | 4,205 | $ | 3,956 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Provision
for loan losses
|
525 | 95 | ||||||
Depreciation
and amortization
|
594 | 617 | ||||||
(Accretion)
and amortization, net
|
(23 | ) | (13 | ) | ||||
Share
based compensation expense
|
195 | 122 | ||||||
Tax
benefit from exercise of stock options issued pursuant to equity incentive
plans
|
- | (25 | ) | |||||
Net
securities losses
|
- | 101 | ||||||
Increase
in accrued interest receivable
|
(393 | ) | (24 | ) | ||||
Increase
in other assets
|
(1,463 | ) | (327 | ) | ||||
Increase
(decrease) in accrued and other liabilities
|
3,036 | (490 | ) | |||||
Net
cash provided by operating activities
|
6,676 | 4,012 | ||||||
Investing
Activities:
|
||||||||
Purchases
of securities available for sale
|
(121,327 | ) | (25,404 | ) | ||||
Purchases
of securities held to maturity
|
(3,783 | ) | (2,249 | ) | ||||
Sales
of securities available for sale
|
22,505 | 10,577 | ||||||
Maturities
of securities available for sale
|
25,215 | 17,918 | ||||||
Maturities
of securities held to maturity
|
5,234 | 6,701 | ||||||
Principal
payments on mortgage-backed securities
|
14,072 | 9,190 | ||||||
Net
increase in loans
|
(24,699 | ) | (20,829 | ) | ||||
Purchase
of premises and equipment
|
(552 | ) | (910 | ) | ||||
Net
cash used by investing activities
|
(83,335 | ) | (5,006 | ) | ||||
Financing
Activities:
|
||||||||
Net
increase in deposits
|
108,886 | 36,646 | ||||||
Net
decrease in other borrowings
|
(9,700 | ) | (18,600 | ) | ||||
Net
proceeds from exercise of stock options issued pursuant to equity
incentive plan
|
- | 142 | ||||||
Cash
dividends paid
|
(2,820 | ) | (2,805 | ) | ||||
Net
cash provided by financing activities
|
96,366 | 15,383 | ||||||
Increase
in cash and cash equivalents
|
19,707 | 14,389 | ||||||
Cash
and cash equivalents beginning of period
|
14,348 | 13,263 | ||||||
Cash
and cash equivalents end of period
|
$ | 34,055 | $ | 27,652 | ||||
Supplemental
Information-Cash Flows:
|
||||||||
Cash
paid for:
|
||||||||
Interest
|
$ | 4,822 | $ | 5,760 | ||||
Income
tax
|
$ | 2,030 | $ | 1,823 | ||||
Noncash
investing and financing activities:
|
||||||||
Securities
which settled in the subsequent period
|
$ | 3,000 | $ | - | ||||
Dividends
declared and unpaid at end of period
|
$ | 1,413 | $ | 1,401 |
Computation
of Per Share Income
|
||||||||||||||||
(in
thousands, except per share data)
|
||||||||||||||||
Three
months ended
|
Six
months ended
|
|||||||||||||||
June 30,
2008
|
June 30,
2007
|
June 30,
2008
|
June 30,
2007
|
|||||||||||||
Net
Income
|
$ | 2,235 | $ | 2,207 | $ | 4,205 | $ | 3,956 | ||||||||
Common
Equivalent Shares:
|
||||||||||||||||
Weighted
Average Common Shares Outstanding
|
6,076 | 6,072 | 6,076 | 6,071 | ||||||||||||
Weighted
Average Common Equivalent Shares Outstanding
|
18 | 18 | 18 | 20 | ||||||||||||
Weighted
Average Common and Equivalent Shares Outstanding
|
6,094 | 6,090 | 6,094 | 6,091 | ||||||||||||
Basic
Earnings per Share
|
$ | 0.37 | $ | 0.36 | $ | 0.69 | $ | 0.65 | ||||||||
Diluted
Earnings per Share
|
$ | 0.37 | $ | 0.36 | $ | 0.69 | $ | 0.65 |
Weighted
|
||||||||||||||
Weighted
|
Average
|
|||||||||||||
Number
|
Average
|
Remaining
|
Aggregate
|
|||||||||||
of
|
Exercise
|
Contractual
|
Intrinsic
|
|||||||||||
Options
|
Price
|
Life
|
Value
|
|||||||||||
Outstanding,
December 31, 2007
|
100,415 | $ | 21.72 | |||||||||||
Granted
|
- | - | ||||||||||||
Exercised
|
- | - | ||||||||||||
Forfeited
|
(5,527 | ) | $ | 25.27 | ||||||||||
Expired
|
- | - | ||||||||||||
Outstanding,
June 30, 2008
|
94,888 | $ | 21.52 |
5.89
years
|
$ | 224,973 | ||||||||
Vested
or expected to vest
|
91,077 | $ | 21.36 |
5.78
years
|
$ | 224,973 | ||||||||
Exercisable,
June 30, 2008
|
64,802 | $ | 19.75 |
4.86
years
|
$ | 224,973 | ||||||||
Number
of
|
||||||||||||||
Range
of Exercise Prices
|
Shares
|
Price
|
||||||||||||
8,400 | $ | 12.53 | ||||||||||||
13,683 | $ | 14.67 | ||||||||||||
11,100 | $ | 15.47 | ||||||||||||
56,302 | $ | 24.00-25.25 | ||||||||||||
5,403 | $ | 26.55-30.60 |
Weighted
|
||||||||
Average
Grant-Date
|
||||||||
Shares
|
Fair
Value
|
|||||||
Unvested,
December 31, 2007
|
36,673 | $ | 24.82 | |||||
Granted
|
42,470 | $ | 22.00 | |||||
Vested
|
(770 | ) | $ | 27.96 | ||||
Forfeited
|
(7,400 | ) | $ | 24.13 | ||||
Unvested,
June 30, 2008
|
70,973 | $ | 23.16 |
June 30,
2008
|
December 31,
2007
|
|||||||||||||||
(In
thousands)
|
Estimated
|
Estimated
|
||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
Available
for sale:
|
||||||||||||||||
U.S.
Treasury and government agency securities
|
$ | 39,374 | $ | 39,512 | $ | 21,422 | $ | 21,523 | ||||||||
State
and municipal obligations
|
44,797 | 44,819 | 47,547 | 47,803 | ||||||||||||
Mortgage-backed
securities
|
164,807 | 164,024 | 120,450 | 120,445 | ||||||||||||
Total
available for sale
|
248,978 | 248,355 | 189,419 | 189,771 | ||||||||||||
Held
to maturity:
|
||||||||||||||||
State
and municipal obligations
|
4,385 | 4,386 | 5,836 | 5,844 | ||||||||||||
Total
held to maturity
|
4,385 | 4,386 | 5,836 | 5,844 | ||||||||||||
Total
debt and equity securities
|
$ | 253,363 | $ | 252,741 | $ | 195,255 | $ | 195,615 |
Fair
Value Measurements Using
|
||||||||||||||||
|
Quoted
Prices In Active
Markets
for Identical
Assets
|
Significant
Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
|||||||||||||
June 30,
2008
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
|||||||||||||
Assets:
|
|
|||||||||||||||
Available
for sale securities
|
$ | 248,355 | $ | 248,355 |
June 30,
2008
|
December 31,
2007
|
|||||||
(In
thousands)
|
||||||||
Commercial
real estate mortgage loans
|
$ | 182,454 | $ | 175,876 | ||||
Residential
real estate mortgage loans
|
128,811 | 125,317 | ||||||
Commercial,
financial, and agricultural loans
|
59,379 | 50,531 | ||||||
Installment/consumer
loans
|
12,102 | 8,553 | ||||||
Real
estate construction loans
|
16,813 | 14,867 | ||||||
Total
loans
|
399,559 | 375,144 | ||||||
Net
deferred loan cost and fees
|
222 | 92 | ||||||
399,781 | 375,236 | |||||||
Allowance
for loan losses
|
(3,324 | ) | (2,954 | ) | ||||
Net
loans
|
$ | 396,457 | $ | 372,282 |
(In
thousands)
|
For
the Six Months Ended
|
For the
Year Ended
|
||||||||||
June 30,
2008
|
June 30,
2007
|
December 31,
2007
|
||||||||||
Beginning
balance
|
$ | 2,954 | $ | 2,512 | $ | 2,512 | ||||||
Provision
for loan loss
|
525 | 95 | 600 | |||||||||
Net
(charge-offs) recoveries
|
(155 | ) | 31 | (158 | ) | |||||||
Ending
balance
|
$ | 3,324 | $ | 2,638 | $ | 2,954 |
(In
thousands)
|
||||||||||||||||||||||||||||||||
Three
months ended June 30,
|
Six
months ended June 30,
|
|||||||||||||||||||||||||||||||
Pension
Benefits
|
SERP
Benefits
|
Pension
Benefits
|
SERP
Benefits
|
|||||||||||||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||||||||||||||
Service
Cost
|
$ | 110 | $ | 113 | $ | 18 | $ | 15 | $ | 220 | $ | 224 | $ | 35 | $ | 30 | ||||||||||||||||
Interest
Cost
|
70 | 70 | 12 | 13 | 139 | 139 | 24 | 26 | ||||||||||||||||||||||||
Expected
return on plan assets
|
(124 | ) | (100 | ) | - | - | (247 | ) | (196 | ) | - | - | ||||||||||||||||||||
Amortization
of net loss
|
- | 4 | - | - | - | 7 | - | - | ||||||||||||||||||||||||
Amortization
of unrecognized prior service cost
|
2 | 2 | - | - | 4 | 4 | - | - | ||||||||||||||||||||||||
Amortization
of unrecognized transition (asset) obligation
|
- | - | 6 | 7 | - | - | 13 | 14 | ||||||||||||||||||||||||
Net
periodic benefit cost
|
$ | 58 | $ | 89 | $ | 36 | $ | 35 | $ | 116 | $ | 178 | $ | 72 | $ | 70 |
·
|
Net
income of $2.2 million or $.37 per diluted share for the second quarter of
2008 as compared to net income of $2.2 million or $.36 per diluted share
for the second quarter of 2007.
|
·
|
Returns
on average equity and assets of 17.13% and 1.32%, respectively for the
second quarter of 2008.
|
·
|
Net
interest income increased to $7.3 million for the second quarter of 2008
as compared to $6.2 million in
2007.
|
·
|
A
net interest margin of 4.76% for the second quarter of 2008 as compared to
4.62% for 2007.
|
·
|
Total
loans at June 30, 2008 of $399.8 million, a $52.9 million or 15.3%
increase from June 30, 2007.
|
·
|
Total
assets of $710.2 million at June 30, 2008, an increase of $119.1 million
or 20.1% compared to $591.1 million at June 30,
2007.
|
·
|
Deposits
of $617.8 million at June 30, 2008, an increase of $76.7 million or 14.2%
from June 2007.
|
·
|
Demand
deposits of $214.5 million at June 30, 2008, a 10.6% increase over June
30, 2007, representing 35% of total
deposits.
|
·
|
Continued
strong credit quality with increasing reserve
levels.
|
·
|
The
declaration of a cash dividend of $.23 per share for the second quarter of
2008.
|
·
|
Commenced
trading on the NASDAQ stock market on June 9,
2008.
|
Three
months ended June 30,
|
2008
|
2007
|
||||||||||||||||||||||
(In
thousands)
|
Average
|
Average
|
||||||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||
Balance
|
Interest
|
Cost
|
Balance
|
Interest
|
Cost
|
|||||||||||||||||||
Interest
earning assets:
|
||||||||||||||||||||||||
Loans,
net (including loan fee income)
|
$ | 393,886 | $ | 6,906 | 7.05 | % | $ | 342,516 | $ | 6,506 | 7. 62 | % | ||||||||||||
Mortgage-backed
securities
|
153,366 | 1,875 | 4.84 | 113,787 | 1,353 | 4.70 | ||||||||||||||||||
Tax
exempt securities (1)
|
52,695 | 653 | 4.90 | 57,789 | 778 | 5.33 | ||||||||||||||||||
Taxable
securities
|
22,207 | 260 | 4.63 | 27,606 | 286 | 4.10 | ||||||||||||||||||
Federal
funds sold
|
13,438 | 70 | 2.06 | 14,682 | 195 | 5.25 | ||||||||||||||||||
Deposits
with banks
|
128 | 1 | 3.14 | 50 | - | - | ||||||||||||||||||
Total
interest earning assets
|
635,720 | 9,765 | 6.15 | 556,430 | 9,118 | 6.55 | ||||||||||||||||||
Non
interest earning assets:
|
||||||||||||||||||||||||
Cash
and due from banks
|
16,330 | 16,183 | ||||||||||||||||||||||
Other
assets
|
26,494 | 22,626 | ||||||||||||||||||||||
Total
assets
|
$ | 678,544 | $ | 595,239 | ||||||||||||||||||||
Interest
bearing liabilities:
|
||||||||||||||||||||||||
Savings,
NOW and money market deposits
|
$ | 304,329 | $ | 1,325 | 1.75 | % | $ | 295,609 | $ | 2,074 | 2.81 | % | ||||||||||||
Certificates
of deposit of $100,000 or more
|
62,202 | 523 | 3.37 | 32,845 | 345 | 4.21 | ||||||||||||||||||
Other
time deposits
|
32,846 | 254 | 3.10 | 29,171 | 274 | 3.77 | ||||||||||||||||||
Federal
funds purchased and repurchase agreements
|
20,773 | 120 | 2.29 | 959 | 14 | 5.78 | ||||||||||||||||||
Federal
Home Loan Bank advances
|
4,615 | 26 | 2.26 | - | - | - | ||||||||||||||||||
Total
interest bearing liabilities
|
424,765 | 2,248 | 2.13 | 358,584 | 2,707 | 3.03 | ||||||||||||||||||
Non
interest bearing liabilities:
|
||||||||||||||||||||||||
Demand
deposits
|
196,945 | 185,974 | ||||||||||||||||||||||
Other
liabilities
|
4,347 | 3,609 | ||||||||||||||||||||||
Total
liabilities
|
626,057 | 548,167 | ||||||||||||||||||||||
Stockholders'
equity
|
52,487 | 47,072 | ||||||||||||||||||||||
Total
liabilities and stockholders' equity
|
$ | 678,544 | $ | 595,239 | ||||||||||||||||||||
Net
interest income/interest rate spread (2)
|
7,517 | 4.02 | % | 6,411 | 3.52 | % | ||||||||||||||||||
Net
interest earning assets/net interest margin (3)
|
$ | 210,955 | 4.76 | % | $ | 197,846 | 4.62 | % | ||||||||||||||||
Ratio
of interest earning assets to interest bearing liabilities
|
149.66 | % | 155.17 | % | ||||||||||||||||||||
Less:
Tax equivalent adjustment
|
(207 | ) | (256 | ) | ||||||||||||||||||||
Net
interest income
|
$ | 7,310 | $ | 6,155 |
(1)
|
The
above table is presented on a tax equivalent
basis.
|
(2)
|
Net
interest rate spread represents the difference between the yield on
average interest earning assets and the cost of average interest bearing
liabilities.
|
(3)
|
Net
interest margin represents net interest income divided by average interest
earning assets.
|
Six
months ended June 30,
|
2008
|
2007
|
||||||||||||||||||||||
(In
thousands)
|
Average
|
Average
|
||||||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||
Balance
|
Interest
|
Cost
|
Balance
|
Interest
|
Cost
|
|||||||||||||||||||
Interest
earning assets:
|
||||||||||||||||||||||||
Loans,
net (including loan fee income)
|
$ | 386,136 | $ | 13,763 | 7.17 | % | $ | 335,415 | $ | 12,710 | 7.64 | % | ||||||||||||
Mortgage-backed
securities
|
142,425 | 3,476 | 4.83 | 117,326 | 2,747 | 4.66 | ||||||||||||||||||
Tax
exempt securities (1)
|
53,013 | 1,328 | 4.96 | 58,304 | 1,544 | 5.27 | ||||||||||||||||||
Taxable
securities
|
22,762 | 511 | 4.44 | 31,149 | 662 | 4.23 | ||||||||||||||||||
Federal
funds sold
|
8,743 | 100 | 2.26 | 9,173 | 242 | 5.25 | ||||||||||||||||||
Deposits
with banks
|
153 | 4 | 5.26 | 45 | 2 | 8.96 | ||||||||||||||||||
Total
interest earning assets
|
613,232 | 19,182 | 6.26 | 551,412 | 17,907 | 6.52 | ||||||||||||||||||
Non
interest earning assets:
|
||||||||||||||||||||||||
Cash
and due from banks
|
16,473 | 15,614 | ||||||||||||||||||||||
Other
assets
|
26,826 | 22,060 | ||||||||||||||||||||||
Total
assets
|
$ | 656,531 | $ | 589,086 | ||||||||||||||||||||
Interest
bearing liabilities:
|
||||||||||||||||||||||||
Savings,
NOW and money market deposits
|
$ | 299,122 | $ | 2,902 | 1.95 | % | $ | 295,127 | $ | 4,174 | 2.85 | % | ||||||||||||
Certificates
of deposit of $100,000 or more
|
58,878 | 1,054 | 3.60 | 32,110 | 680 | 4.27 | ||||||||||||||||||
Other
time deposits
|
34,039 | 577 | 3.41 | 29,120 | 545 | 3.77 | ||||||||||||||||||
Federal
funds purchased and repurchase agreements
|
17,735 | 231 | 2.62 | 2,768 | 77 | 5.61 | ||||||||||||||||||
Federal
Home Loan Bank advances
|
2,473 | 30 | 2.44 | - | - | - | ||||||||||||||||||
Total
interest bearing liabilities
|
412,247 | 4,794 | 2.34 | 359,125 | 5,476 | 3.07 | ||||||||||||||||||
Non
interest bearing liabilities:
|
||||||||||||||||||||||||
Demand
deposits
|
186,610 | 179,609 | ||||||||||||||||||||||
Other
liabilities
|
4,439 | 3,712 | ||||||||||||||||||||||
Total
liabilities
|
603,296 | 542,446 | ||||||||||||||||||||||
Stockholders'
equity
|
53,235 | 46,640 | ||||||||||||||||||||||
Total
liabilities and stockholders' equity
|
$ | 656,531 | $ | 589,086 | ||||||||||||||||||||
Net
interest income/interest rate spread (2)
|
14,388 | 3.92 | % | 12,431 | 3.45 | % | ||||||||||||||||||
Net
interest earning assets/net interest margin (3)
|
$ | 200,985 | 4.72 | % | $ | 192,287 | 4.55 | % | ||||||||||||||||
Ratio
of interest earning assets to interest bearing liabilities
|
148.75 | % | 153.54 | % | ||||||||||||||||||||
Less:
Tax equivalent adjustment
|
(430 | ) | (489 | ) | ||||||||||||||||||||
Net
interest income
|
$ | 13,958 | $ | 11,942 |
(1)
|
The
above table is presented on a tax equivalent
basis.
|
(2)
|
Net
interest rate spread represents the difference between the yield on
average interest earning assets and the cost of average interest bearing
liabilities.
|
(3)
|
Net
interest margin represents net interest income divided by average interest
earning assets.
|
Three
months ended June 30,
|
Six
months ended June 30,
|
|||||||||||||||||||||||
2008
Over 2007
|
2008
Over 2007
|
|||||||||||||||||||||||
(In
thousands)
|
Changes
Due To
|
Changes
Due To
|
||||||||||||||||||||||
Volume
|
Rate
|
Net
Change
|
Volume
|
Rate
|
Net
Change
|
|||||||||||||||||||
Interest
income on interest earning assets:
|
||||||||||||||||||||||||
Loans
(including loan fee income)
|
$ | 2,863 | $ | (2,463 | ) | $ | 400 | $ | 3,001 | $ | (1,948 | ) | $ | 1,053 | ||||||||||
Mortgage-backed
securities
|
483 | 39 | 522 | 1,844 | (1,115 | ) | 729 | |||||||||||||||||
Tax
exempt securities (1)
|
(64 | ) | (268 | ) | (332 | ) | (76 | ) | (570 | ) | (646 | ) | ||||||||||||
Taxable
securities
|
(242 | ) | 240 | (2 | ) | (55 | ) | (96 | ) | (151 | ) | |||||||||||||
Federal
funds sold
|
(15 | ) | (110 | ) | (125 | ) | (11 | ) | (131 | ) | (142 | ) | ||||||||||||
Deposits
with banks
|
(1 | ) | 2 | 1 | 5 | (3 | ) | 2 | ||||||||||||||||
Total
interest earning assets
|
3,024 | (2,560 | ) | 464 | 4,708 | (3,863 | ) | 845 | ||||||||||||||||
Interest
expense on interest bearing liabilities:
|
||||||||||||||||||||||||
Savings,
NOW and money market deposits
|
401 | (1,150 | ) | (749 | ) | 166 | (1,438 | ) | (1,272 | ) | ||||||||||||||
Certificates
of deposit of $100,000 or more
|
597 | (419 | ) | 178 | 677 | (303 | ) | 374 | ||||||||||||||||
Other
time deposits
|
153 | (173 | ) | (20 | ) | 156 | (124 | ) | 32 | |||||||||||||||
Federal
funds purchased and repurchase agreements
|
139 | (33 | ) | 106 | 289 | (135 | ) | 154 | ||||||||||||||||
Federal
Home Loan Bank advances
|
26 | - | 26 | 3 | 26 | 29 | ||||||||||||||||||
Total
interest bearing liabilities
|
1,316 | (1,775 | ) | (459 | ) | 1,291 | (1,974 | ) | (683 | ) | ||||||||||||||
Net
interest income
|
$ | 1,708 | $ | (785 | ) | $ | 923 | $ | 3,417 | $ | (1,889 | ) | $ | 1,528 | ||||||||||
(1)
The above table is presented on a tax equivalent basis.
|
To
Be Well
|
||||||||||||||||||||||||
For
Capital
|
Capitalized
Under
|
|||||||||||||||||||||||
Adequacy
|
Prompt
Corrective
|
|||||||||||||||||||||||
(dollars
in thousands)
|
Actual
|
Purposes
|
Action
Provision
|
|||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As
of June 30,2008
|
||||||||||||||||||||||||
Total
Capital (to risk weighted assets)
|
$ | 52,607 | 11.1 | % | $ | 38,066 | 8.0 | % | $ | 47,583 | 10.0 | % | ||||||||||||
Tier
1 Capital (to risk weighted assets)
|
49,164 | 10.3 | % | 19,033 | 4.0 | % | 28,550 | 6.0 | % | |||||||||||||||
Tier
1 Capital (to average assets)
|
49,164 | 7.3 | % | 27,124 | 4.0 | % | 33,905 | 5.0 | % | |||||||||||||||
As
of December 31, 2007
|
||||||||||||||||||||||||
Total
Capital (to risk weighted assets)
|
$ | 47,860 | 10.8 | % | $ | 35,524 | 8.0 | % | $ | 44,405 | 10.0 | % | ||||||||||||
Tier
1 Capital (to risk weighted assets)
|
44,906 | 10.1 | % | 17,762 | 4.0 | % | 26,643 | 6.0 | % | |||||||||||||||
Tier
1 Capital (to average assets)
|
44,906 | 7.4 | % | 24,338 | 4.0 | % | 30,423 | 5.0 | % |
Change
in Interest
Rates
in Basis Points
|
June 30,
2008
Potential
Change
in
Net
Interest
Income
|
December 31,
2007
Potential
Change
in
Net
Interest
Income
|
||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
$
Change
|
%
Change
|
$
Change
|
%
Change
|
|||||||||||||
200
|
$ | (2,411 | ) | (7.76 | )% | $ | (1,833 | ) | (7.05 | )% | ||||||
100
|
$ | (1,283 | ) | (4.13 | )% | $ | (897 | ) | (3.45 | )% | ||||||
Static
|
- | - | - | - | ||||||||||||
(100)
|
$ | 786 | 2.53 | % | $ | 555 | 2.13 | % |
|
(a)
|
Not
applicable.
|
|
(b)
|
Not
applicable.
|
|
(c)
|
Not
applicable.
|
Nominees
for Director
|
Term
|
Votes
For
|
Votes
Withheld
|
Class
A
|
|||
Albert
E. McCoy, Jr.
|
One
Year
|
4,786,721
|
301,067
|
Class
B
|
|||
Emanuel
Arturi
|
Two
Years
|
4,785,046
|
302,742
|
Class
C
|
|||
Kevin
M. O'Connor
|
Three
Years
|
4,785,395
|
302,393
|
Thomas
J. Tobin
|
Three
Years
|
4,390,622
|
697,166
|
Charles
I. Massoud
|
Three
Years
|
4,730,957
|
356,831
|
Votes
For
|
Votes
Against
|
Abstentions
|
|
Ratification
of Independent Registered Public
Accounting Firm
|
5,027,732
|
49,458
|
10,598
|
|
Certification
of Principal Executive Officer pursuant to Rule
13a-14(a)
|
|
Certification
of Principal Financial Officer pursuant to Rule
13a-14(a)
|
|
Certification
of Chief Executive Officer and Chief Financial Officer pursuant to Rule
13a-14(b) and 18 U.S.C. Section
1350
|
BRIDGE BANCORP,
INC.
|
|
Registrant
|
|
August
7, 2008
|
/s/
Kevin M. O’Connor
|
Kevin M. O’Connor
|
|
President
and Chief Executive Officer
|
|
August
7, 2008
|
/s/ Howard H.
Nolan
|
Howard
H. Nolan
|
|
Senior
Executive Vice President and Chief Financial
Officer
|