Maryland
|
74-3242562
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
Number)
|
Large
accelerated filer ¨
|
Accelerated
filer x
|
Non-accelerated
filer¨ (Do
not check if a smaller reporting company)
|
Smaller
reporting company ¨
|
INDEX
|
||
Page
|
||
PART
I. FINANCIAL INFORMATION
|
||
Item
1.
|
Financial
Statements
|
|
Consolidated
Statements of Condition
|
||
March
31, 2010 (unaudited) and December 31, 2009
|
1
|
|
Consolidated
Statements of Earnings
|
||
Three
Months Ended March 31, 2010 and 2009 (unaudited)
|
2
|
|
Consolidated
Statements of Stockholders’ Equity and Comprehensive
Income
|
||
Three
Months Ended March 31, 2010 and 2009 (unaudited)
|
3
|
|
Consolidated
Statements of Cash Flows
|
||
Three
Months Ended March 31, 2010 and 2009 (unaudited)
|
4
|
|
Notes
to Unaudited Consolidated Financial Statements
|
6
|
|
Item
2.
|
Management's
Discussion and Analysis of Financial Condition
|
|
and
Results of Operations
|
21
|
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
33
|
Item
4.
|
Controls
and Procedures
|
33
|
PART
II. OTHER INFORMATION
|
||
Item
1.
|
Legal
Proceedings
|
33
|
Item
1A.
|
Risk
Factors
|
33
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
34
|
Item
3.
|
Defaults
Upon Senior Securities
|
34
|
Item
4.
|
[Removed
and Reserved]
|
34
|
Item
5.
|
Other
Information
|
34
|
Item
6.
|
Exhibits
|
35
|
SIGNATURES
|
36
|
March
31,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
(unaudited)
|
(audited)
|
|||||||
ASSETS
|
||||||||
Cash
and due from banks
|
$ | 13,932 | $ | 14,565 | ||||
Interest-bearing
deposits
|
7,735 | 7,312 | ||||||
Total
cash and cash equivalents
|
21,667 | 21,877 | ||||||
Short-term
investments
|
1,100 | 1,096 | ||||||
Securities
available for sale, at fair value
|
225,043 | 243,304 | ||||||
Securities
held to maturity, at amortized cost (fair value of $71,658
at
|
||||||||
March
31, 2010 and $63,063 at December 31, 2009)
|
71,498 | 63,174 | ||||||
Loans,
net of allowance for loan losses of $9,610 at March 31,
2010
|
||||||||
and
$9,180 at December 31, 2009
|
1,093,830 | 1,115,416 | ||||||
Other
real estate owned
|
1,976 | 1,545 | ||||||
Accrued
interest receivable
|
5,281 | 5,209 | ||||||
Deferred
tax asset, net
|
11,214 | 11,295 | ||||||
Stock
in the Federal Home Loan Bank of Boston
|
15,365 | 15,365 | ||||||
Banking
premises and equipment, net
|
15,808 | 15,935 | ||||||
Bank-owned
life insurance
|
28,793 | 28,476 | ||||||
Goodwill
|
7,717 | 7,844 | ||||||
Other
intangible assets
|
586 | 613 | ||||||
Other
assets
|
12,805 | 9,891 | ||||||
TOTAL
ASSETS
|
$ | 1,512,683 | $ | 1,541,040 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Interest-bearing
|
$ | 904,085 | $ | 884,553 | ||||
Non-interest-bearing
|
161,107 | 154,374 | ||||||
Total
deposits
|
1,065,192 | 1,038,927 | ||||||
Short-term
borrowings
|
33,995 | 75,488 | ||||||
Long-term
debt
|
168,203 | 179,988 | ||||||
Subordinated
debentures
|
5,380 | 5,357 | ||||||
Escrow
funds held for borrowers
|
2,143 | 1,977 | ||||||
Capitalized
lease obligations
|
5,109 | 5,141 | ||||||
Accrued
expenses and other liabilities
|
8,429 | 8,916 | ||||||
Total
liabilities
|
1,288,451 | 1,315,794 | ||||||
Stockholders’
equity:
|
||||||||
Preferred
stock, par value $0.01 per share, authorized 50,000,000
shares;
|
||||||||
none
issued
|
- | - | ||||||
Common
stock, par value $0.01 per share, authorized 100,000,000
shares;
|
||||||||
18,706,933
shares issued at March 31, 2010 and December 31, 2009
|
187 | 187 | ||||||
Paid-in
capital
|
178,422 | 178,666 | ||||||
Retained
earnings
|
78,117 | 77,456 | ||||||
Unearned
compensation
|
(11,268 | ) | (11,441 | ) | ||||
Treasury
stock, at cost (1,962,971 shares at March 31, 2010 and
1,868,335
|
||||||||
shares
at December 31, 2009)
|
(26,203 | ) | (24,980 | ) | ||||
Accumulated
other comprehensive income, net of taxes
|
4,977 | 5,358 | ||||||
Total
stockholders’ equity
|
224,232 | 225,246 | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 1,512,683 | $ | 1,541,040 | ||||
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2010
|
2009
|
|||||||
Interest
and dividend income:
|
||||||||
Loans
|
$ | 15,457 | $ | 12,051 | ||||
Investments
|
3,292 | 3,871 | ||||||
Other
interest-earning assets
|
8 | 8 | ||||||
Total
interest and dividend income
|
18,757 | 15,930 | ||||||
Interest
expense:
|
||||||||
Deposits
|
3,375 | 3,825 | ||||||
Borrowings
|
1,886 | 1,950 | ||||||
Total
interest expense
|
5,261 | 5,775 | ||||||
Net
interest income before provision for loan losses
|
13,496 | 10,155 | ||||||
Provision
for loan losses
|
733 | 540 | ||||||
Net
interest income after provision for loan losses
|
12,763 | 9,615 | ||||||
Non-interest
income:
|
||||||||
Fee
income on depositors’ accounts
|
1,371 | 1,107 | ||||||
Net
gain on sale of loans
|
88 | 125 | ||||||
Impairment
charge on security
|
(145 | ) | - | |||||
Wealth
management income
|
138 | 132 | ||||||
Income
from bank-owned life insurance
|
346 | 314 | ||||||
Other
income
|
239 | 173 | ||||||
Total
non-interest income
|
2,037 | 1,851 | ||||||
Non-interest
expense:
|
||||||||
Salaries
and benefits
|
6,078 | 4,664 | ||||||
Occupancy
expenses
|
927 | 665 | ||||||
Marketing
expenses
|
560 | 342 | ||||||
Data
processing expenses
|
1,067 | 844 | ||||||
Professional
fees
|
541 | 423 | ||||||
Merger
related expenses
|
979 | - | ||||||
FDIC
insurance assessments
|
415 | 340 | ||||||
Amortization
of intangible assets
|
28 | 6 | ||||||
Other
expenses
|
1,423 | 871 | ||||||
Total
non-interest expense
|
12,018 | 8,155 | ||||||
Income
before income taxes
|
2,782 | 3,311 | ||||||
Income
tax expense
|
1,031 | 1,188 | ||||||
Net
income
|
$ | 1,751 | $ | 2,123 | ||||
Earnings
per share:
|
||||||||
Basic
|
$ | 0.11 | $ | 0.14 | ||||
Diluted
|
$ | 0.11 | $ | 0.14 | ||||
Weighted
average shares outstanding (1):
|
||||||||
Basic
|
15,618,540 | 15,709,006 | ||||||
Diluted
|
15,662,592 | 15,722,382 | ||||||
|
(1)
|
Prior
period basic and diluted share data were revised as required by the
Earnings Per Share Topic of FASB ASC and in accordance with the provisions
of "Determining Whether Instruments Issued in Share-Based Payment
Transactions are Participating Securities" which require that share-based
compensation awards that qualify as participating securities (entitled to
receive non-forfeitable dividends) be included in basic earnings per share
using the two-class method. This revision had no impact on earnings per
share as previously reported.
|
Accumulated
|
||||||||||||||||||||||||||||||||
Common
|
Other
|
|||||||||||||||||||||||||||||||
Shares
|
Common
|
Paid-In
|
Retained
|
Unearned
|
Treasury
|
Comprehensive
|
||||||||||||||||||||||||||
Outstanding
|
Stock
|
Capital
|
Earnings
|
Compensation
|
Stock
|
Income
(Loss)
|
Total
|
|||||||||||||||||||||||||
Balances
at December 31, 2008
|
17,501,949 | $ | 178 | $ | 164,358 | $ | 75,888 | $ | (12,144 | ) | $ | (3,497 | ) | $ | 2,931 | $ | 227,714 | |||||||||||||||
Net
income
|
- | - | - | 2,123 | - | - | - | 2,123 | ||||||||||||||||||||||||
Other
comprehensive loss
|
- | - | - | - | - | - | 1,517 | 1,517 | ||||||||||||||||||||||||
Total
comprehensive income
|
3,640 | |||||||||||||||||||||||||||||||
Cash
dividends paid ($0.07 per share)
|
- | - | - | (1,091 | ) | - | - | - | (1,091 | ) | ||||||||||||||||||||||
Treasury
stock purchases
|
(1,000,579 | ) | - | - | - | - | (13,624 | ) | - | (13,624 | ) | |||||||||||||||||||||
Stock-based
compensation
|
- | - | 621 | - | - | - | - | 621 | ||||||||||||||||||||||||
ESOP
shares committed to be released
|
- | - | 67 | - | 186 | - | - | 253 | ||||||||||||||||||||||||
Balances
at March 31, 2009
|
16,501,370 | $ | 178 | $ | 165,046 | $ | 76,920 | $ | (11,958 | ) | $ | (17,121 | ) | $ | 4,448 | $ | 217,513 | |||||||||||||||
Balances
at December 31, 2009
|
16,838,598 | $ | 187 | $ | 178,666 | $ | 77,456 | $ | (11,441 | ) | $ | (24,980 | ) | $ | 5,358 | $ | 225,246 | |||||||||||||||
Prior
service costs on pension and other
|
||||||||||||||||||||||||||||||||
post
retirement benefit plans
|
- | - | - | - | - | - | (472 | ) | (472 | ) | ||||||||||||||||||||||
Net
income
|
- | - | - | 1,751 | - | - | - | 1,751 | ||||||||||||||||||||||||
Other
comprehensive income
|
- | - | - | - | - | - | 91 | 91 | ||||||||||||||||||||||||
Total
comprehensive income
|
1,842 | |||||||||||||||||||||||||||||||
Cash
dividends paid ($0.07 per share)
|
- | - | - | (1,090 | ) | - | - | - | (1,090 | ) | ||||||||||||||||||||||
Treasury
stock purchases
|
(164,338 | ) | - | - | - | - | (2,124 | ) | - | (2,124 | ) | |||||||||||||||||||||
Reissuance
of treasury shares in connection
|
||||||||||||||||||||||||||||||||
with
restricted stock grants
|
69,702 | - | (901 | ) | - | - | 901 | - | - | |||||||||||||||||||||||
Stock-based
compensation
|
- | - | 591 | - | - | - | - | 591 | ||||||||||||||||||||||||
ESOP
shares committed to be released
|
- | - | 66 | - | 173 | - | - | 239 | ||||||||||||||||||||||||
Balances
at March 31, 2010
|
16,743,962 | $ | 187 | $ | 178,422 | $ | 78,117 | $ | (11,268 | ) | $ | (26,203 | ) | $ | 4,977 | $ | 224,232 | |||||||||||||||
Three
Months Ended March 31,
|
||||||||
2010
|
2009
|
|||||||
Change
in unrealized holding gains on available-for-sale
securities
|
$ | 27 | $ | 2,461 | ||||
Reclassification
adjustment for losses realized in income
|
145 | - | ||||||
Net
change in unrealized gains
|
172 | 2,461 | ||||||
Tax
effect
|
(81 | ) | (944 | ) | ||||
Other
comprehensive income
|
$ | 91 | $ | 1,517 | ||||
2010
|
2009
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ | 1,751 | $ | 2,123 | ||||
Adjustments
to reconcile net income to net cash used in operating
activities:
|
||||||||
Provision
for loan losses
|
733 | 540 | ||||||
ESOP
expense
|
239 | 253 | ||||||
Stock-based
compensation
|
591 | 621 | ||||||
Amortization
of premiums and discounts
|
273 | 93 | ||||||
Depreciation
and amortization
|
360 | 250 | ||||||
Amortization
of intangible assets
|
28 | 6 | ||||||
Net
(gain) loss on sale of other real estate owned
|
(23 | ) | 7 | |||||
Impairment
charges on securities
|
145 | - | ||||||
Net
gain on sale of loans
|
(88 | ) | (125 | ) | ||||
Increase
in cash surrender value of bank-owned life insurance
|
(317 | ) | (295 | ) | ||||
(Increase)
decrease in accrued interest receivable
|
(72 | ) | 131 | |||||
Increase
in other assets
|
(2,792 | ) | (218 | ) | ||||
Decrease
in accrued expenses and other liabilities
|
(892 | ) | (3,896 | ) | ||||
Net
cash used in operating activities
|
(64 | ) | (510 | ) | ||||
Cash
flows from investing activities:
|
||||||||
Purchases
of securities available for sale
|
- | (4,599 | ) | |||||
Proceeds
from maturities, calls and principal repayments of
securities
|
||||||||
available
for sale
|
18,303 | 16,782 | ||||||
Purchases
of securities held to maturity
|
(11,601 | ) | (2,043 | ) | ||||
Proceeds
from maturities, calls and principal repayments of
securities
|
||||||||
held
to maturity
|
3,134 | - | ||||||
Investment
in short term time deposits
|
(4 | ) | (8 | ) | ||||
Proceeds
from sales of other real estate owned
|
271 | 268 | ||||||
Net
loan originations, purchases and principal repayments
|
10,396 | (1,830 | ) | |||||
Proceeds
from sales of loans
|
9,725 | 10,927 | ||||||
Purchases
of property and equipment
|
(230 | ) | (134 | ) | ||||
Cash
paid to acquire Levine Financial Group
|
- | (92 | ) | |||||
Net
cash provided by investing activities
|
29,994 | 19,271 | ||||||
2010
|
2009
|
|||||||
Cash
flows from financing activities:
|
||||||||
Net
increase in deposits
|
26,265 | 12,658 | ||||||
Net
change in short-term borrowings
|
(35,393 | ) | (16,578 | ) | ||||
Repayment
of long-term debt
|
(17,862 | ) | (2,717 | ) | ||||
Net
increase in escrow funds held for borrowers
|
166 | 485 | ||||||
Payments
on capitalized lease obligations
|
(102 | ) | (63 | ) | ||||
Treasury
stock purchases
|
(2,124 | ) | (13,163 | ) | ||||
Cash
dividends paid
|
(1,090 | ) | (1,091 | ) | ||||
Net
cash used in financing activities
|
(30,140 | ) | (20,469 | ) | ||||
Decrease
in cash and cash equivalents
|
(210 | ) | (1,708 | ) | ||||
Cash
and cash equivalents at beginning of period
|
21,877 | 13,572 | ||||||
Cash
and cash equivalents at end of period
|
$ | 21,667 | $ | 11,864 | ||||
Supplemental Disclosure of Cash Flow
Information:
|
||||||||
Cash
paid during the period:
|
||||||||
Interest
on deposits, borrowings and other interest bearing
liabilities
|
$ | 5,983 | $ | 5,741 | ||||
Income
taxes – net
|
41 | 4,600 | ||||||
Non-cash
items:
|
||||||||
Transfer
of loans to other real estate owned
|
677 | - | ||||||
Trade
date accounting for treasury stock purchases
|
- | 461 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2010
|
2009
|
|||||||
Net
income
|
$ | 1,751 | $ | 2,123 | ||||
Weighted average common shares
applicable to basic EPS (3)
|
15,618,540 | 15,709,006 | ||||||
Effect of dilutive potential
common shares (1) (2)
|
44,052 | 13,376 | ||||||
Weighted average common shares
applicable to diluted EPS (3)
|
15,662,592 | 15,722,382 | ||||||
Earnings
per share:
|
||||||||
Basic
|
$ | 0.11 | $ | 0.14 | ||||
Diluted
|
$ | 0.11 | $ | 0.14 |
(1)
Options to purchase 1,470,776 and 1,295,863 shares for three
months ended March 31, 2010 and 2009, respectively, were outstanding but
not included in the computation of earnings per share because they were
antidilutive.
|
(2)
Includes incremental shares related to dilutive stock
options.
|
(3)
Prior period basic and diluted share data were revised as required by the
Earnings Per Share Topic of FASB ASC and in accordance with the provisions
of "Determining Whether Instruments Issued in Share-Based Payment
Transactions are Participating Securities" which require that share-based
compensation awards that qualify as participating securities (entitled to
receive non-forfeitable dividends) be included in basic EPS using the
two-class method. This revision had no impact on earnings per
share as previously reported.
|
Amortized
|
Unrealized
|
|||||||||||||||
Cost
|
Gains
|
Losses
|
Fair
Value
|
|||||||||||||
Securities Available for
Sale
|
||||||||||||||||
March
31, 2010:
|
||||||||||||||||
Debt
Securities:
|
||||||||||||||||
Government-sponsored
enterprises
|
$ | 314 | $ | 11 | $ | - | $ | 325 | ||||||||
Government-sponsored
and government-
|
||||||||||||||||
guaranteed
mortgage-backed securities
|
198,481 | 9,518 | (121 | ) | 207,878 | |||||||||||
Private
label mortgage-backed securities
|
3,934 | 75 | (55 | ) | 3,954 | |||||||||||
Municipal
bonds
|
11,004 | 186 | (262 | ) | 10,928 | |||||||||||
Corporate
bonds
|
1,448 | 372 | - | 1,820 | ||||||||||||
Subtotal
|
215,181 | 10,162 | (438 | ) | 224,905 | |||||||||||
Marketable
equity securities
|
97 | 41 | - | 138 | ||||||||||||
Total
|
$ | 215,278 | $ | 10,203 | $ | (438 | ) | $ | 225,043 | |||||||
December
31, 2009:
|
||||||||||||||||
Debt
Securities:
|
||||||||||||||||
Government-sponsored
enterprises
|
$ | 342 | $ | 11 | $ | - | $ | 353 | ||||||||
Government-sponsored
and government-
|
||||||||||||||||
guaranteed
mortgage-backed securities
|
215,819 | 9,216 | (199 | ) | 224,836 | |||||||||||
Private
label mortgage-backed securities
|
4,999 | 97 | (60 | ) | 5,036 | |||||||||||
Municipal
bonds
|
11,004 | 189 | (260 | ) | 10,933 | |||||||||||
Corporate
bonds
|
1,449 | 279 | (16 | ) | 1,712 | |||||||||||
Subtotal
|
233,613 | 9,792 | (535 | ) | 242,870 | |||||||||||
Marketable
equity securities
|
97 | 337 | - | 434 | ||||||||||||
Total
|
$ | 233,710 | $ | 10,129 | $ | (535 | ) | $ | 243,304 |
Amortized
|
Unrealized
|
|||||||||||||||
Cost
|
Gains
|
Losses
|
Fair
Value
|
|||||||||||||
Securities Held to Maturity
|
||||||||||||||||
March
31, 2010:
|
||||||||||||||||
Government-sponsored
and government-
|
||||||||||||||||
guaranteed
mortgage-backed securities
|
$ | 62,152 | $ | 358 | $ | (270 | ) | $ | 62,240 | |||||||
Private
label mortgage-backed securities
|
687 | 6 | - | 693 | ||||||||||||
IRB
|
1,035 | - | - | 1,035 | ||||||||||||
State
of Israel bonds
|
150 | - | - | 150 | ||||||||||||
Municipal
bonds
|
7,474 | 78 | (12 | ) | 7,540 | |||||||||||
Total
|
$ | 71,498 | $ | 442 | $ | (282 | ) | $ | 71,658 | |||||||
December
31, 2009:
|
||||||||||||||||
Government-sponsored
and government-
|
||||||||||||||||
guaranteed
mortgage-backed securities
|
$ | 53,769 | $ | 180 | $ | (418 | ) | $ | 53,531 | |||||||
Private
label mortgage-backed securities
|
737 | 13 | - | 750 | ||||||||||||
IRB
|
1,039 | - | - | 1,039 | ||||||||||||
State
of Israel bonds
|
150 | - | - | 150 | ||||||||||||
Municipal
bonds
|
7,479 | 114 | - | 7,593 | ||||||||||||
Total
|
$ | 63,174 | $ | 307 | $ | (418 | ) | $ | 63,063 |
At
March 31, 2010
|
||||||||||||||||
Securities
|
Securities
|
|||||||||||||||
Available
for Sale
|
Held
to Maturity
|
|||||||||||||||
Amortized
|
Amortized
|
|||||||||||||||
Cost
|
Fair
Value
|
Cost
|
Fair
Value
|
|||||||||||||
Due
in one year or less
|
$ | 2,925 | $ | 2,930 | $ | 460 | $ | 464 | ||||||||
Due
from one year to five years
|
5,403 | 5,561 | 604 | 628 | ||||||||||||
Due
from five years to ten years
|
22,362 | 23,369 | 18,566 | 18,694 | ||||||||||||
Due
after ten years
|
184,491 | 193,045 | 51,868 | 51,872 | ||||||||||||
$ | 215,181 | $ | 224,905 | $ | 71,498 | $ | 71,658 |
Less
than 12 months
|
12
months or longer
|
Total
|
||||||||||||||||||||||||||
Unrealized
|
Unrealized
|
Number
of
|
Unrealized
|
|||||||||||||||||||||||||
Fair
Value
|
Losses
|
Fair
Value
|
Losses
|
Securities
|
Fair
Value
|
Losses
|
||||||||||||||||||||||
At March 31, 2010:
|
||||||||||||||||||||||||||||
Securities Available for
Sale
|
||||||||||||||||||||||||||||
Debt
Securities:
|
||||||||||||||||||||||||||||
Government-sponsored
and
|
||||||||||||||||||||||||||||
government-guaranteed
mortgage-
|
||||||||||||||||||||||||||||
backed
securities
|
$ | 13,670 | $ | (119 | ) | $ | 871 | $ | (2 | ) | 16 | $ | 14,541 | $ | (121 | ) | ||||||||||||
Private
label mortgage-backed
|
||||||||||||||||||||||||||||
securities
|
2,092 | (55 | ) | - | - | 2 | 2,092 | (55 | ) | |||||||||||||||||||
Municipal
bonds
|
1,766 | (161 | ) | 928 | (101 | ) | 8 | 2,694 | (262 | ) | ||||||||||||||||||
Total
|
$ | 17,528 | $ | (335 | ) | $ | 1,799 | $ | (103 | ) | 26 | $ | 19,327 | $ | (438 | ) | ||||||||||||
Securities Held to Maturity
|
||||||||||||||||||||||||||||
Government-sponsored
and
|
||||||||||||||||||||||||||||
government-guaranteed
mortgage-
|
||||||||||||||||||||||||||||
backed
securities
|
$ | 31,609 | $ | (270 | ) | $ | - | $ | - | 13 | $ | 31,609 | $ | (270 | ) | |||||||||||||
Municipal
bonds
|
2,981 | (12 | ) | - | - | 16 | 2,981 | (12 | ) | |||||||||||||||||||
Total
|
$ | 34,590 | $ | (282 | ) | $ | - | $ | - | 29 | $ | 34,590 | $ | (282 | ) | |||||||||||||
Less
than 12 months
|
12
months or longer
|
Total
|
||||||||||||||||||||||||||
Unrealized
|
Unrealized
|
Number
of
|
Unrealized
|
|||||||||||||||||||||||||
Fair
Value
|
Losses
|
Fair
Value
|
Losses
|
Securities
|
Fair
Value
|
Losses
|
||||||||||||||||||||||
At December 31, 2009:
|
||||||||||||||||||||||||||||
Securities Available for
Sale
|
||||||||||||||||||||||||||||
Debt
Securities:
|
||||||||||||||||||||||||||||
Government-sponsored
and
|
||||||||||||||||||||||||||||
government-guaranteed
mortgage-
|
||||||||||||||||||||||||||||
backed
securities
|
$ | 14,428 | $ | (197 | ) | $ | 1,068 | $ | (2 | ) | 16 | $ | 15,496 | $ | (199 | ) | ||||||||||||
Private
label mortgage-backed
|
||||||||||||||||||||||||||||
securities
|
2,301 | (60 | ) | - | - | 2 | 2,301 | (60 | ) | |||||||||||||||||||
Municipal
bonds
|
2,076 | (166 | ) | 935 | (94 | ) | 9 | 3,011 | (260 | ) | ||||||||||||||||||
Corporate
bonds
|
- | - | 308 | (16 | ) | 1 | 308 | (16 | ) | |||||||||||||||||||
Total
|
$ | 18,805 | $ | (423 | ) | $ | 2,311 | $ | (112 | ) | 28 | $ | 21,116 | $ | (535 | ) | ||||||||||||
Securities Held to Maturity
|
||||||||||||||||||||||||||||
Government-sponsored
and
|
||||||||||||||||||||||||||||
government-guaranteed
mortgage-
|
||||||||||||||||||||||||||||
backed
securities
|
$ | 36,742 | $ | (418 | ) | $ | - | $ | - | 15 | $ | 36,742 | $ | (418 | ) | |||||||||||||
Municipal
bonds
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Total
|
$ | 36,742 | $ | (418 | ) | $ | - | $ | - | 15 | $ | 36,742 | $ | (418 | ) |
March
31,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
Residential
mortgages
|
$ | 328,140 | $ | 343,300 | ||||
Commercial
mortgages
|
413,118 | 409,680 | ||||||
Construction
|
49,082 | 48,808 | ||||||
Home
equity
|
136,652 | 137,371 | ||||||
Commercial
and industrial
|
151,270 | 159,437 | ||||||
Automobile
|
14,137 | 14,729 | ||||||
Consumer
|
8,688 | 8,916 | ||||||
Total
loans
|
1,101,087 | 1,122,241 | ||||||
Net
deferred loan costs and fees
|
2,353 | 2,355 | ||||||
Allowance
for loan losses
|
(9,610 | ) | (9,180 | ) | ||||
Loans,
net
|
$ | 1,093,830 | $ | 1,115,416 | ||||
March
31,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
Non-accrual
loans:
|
||||||||
Residential
mortgages
|
$ | 943 | $ | 1,190 | ||||
Commercial
mortgages (1)
|
10,086 | 10,717 | ||||||
Construction
|
4,346 | 3,280 | ||||||
Home
equity
|
528 | 492 | ||||||
Commercial
and industrial
|
510 | 571 | ||||||
Automobile
|
- | 4 | ||||||
Other
consumer
|
47 | 33 | ||||||
Total
non-accrual loans
|
16,460 | 16,287 | ||||||
Other
real estate owned
|
1,976 | 1,545 | ||||||
Total
non-performing assets
|
$ | 18,436 | $ | 17,832 | ||||
Ratios:
|
||||||||
Total
non-performing loans to total loans
|
1.49 | % | 1.45 | % | ||||
Total
non-performing assets to total assets
|
1.22 | % | 1.16 | % | ||||
(1) Includes a $3.5
million troubled debt restructured commercial mortgage loan which was
restructured in the first quarter of 2010. There were no additional
commitments to this borrower. As of March 31, 2010 there were no other
troubled debt restructured loans.
|
Acquired loan information for CNB
Financial:
|
||||
As
of November 30, 2009:
|
||||
Contractually
required payments
|
$ | 5,178 | ||
Less:
Nonaccretable difference
|
(2,099 | ) | ||
Cash
flows expected to be collected (1)
|
3,079 | |||
Less:
Accretable yield
|
(13 | ) | ||
Fair
value of loans acquired
|
$ | 3,066 | ||
(1) The Bank has not
factored any prepayments into the expected cash flows.
|
For
the Three Months Ended
|
||||||||
March
31,
|
||||||||
2010
|
2009
|
|||||||
Balance
at beginning of period
|
$ | 9,180 | $ | 8,250 | ||||
Provision
for loan losses
|
733 | 540 | ||||||
Charge-offs:
|
||||||||
Commercial
mortgages
|
(90 | ) | - | |||||
Construction
|
(88 | ) | (65 | ) | ||||
Home
equity
|
(48 | ) | - | |||||
Commercial
and industrial
|
(68 | ) | (39 | ) | ||||
Automobile
|
(3 | ) | (5 | ) | ||||
Other
consumer
|
(11 | ) | (1 | ) | ||||
Total
charge-offs
|
(308 | ) | (110 | ) | ||||
Recoveries:
|
||||||||
Commercial
and industrial
|
5 | 47 | ||||||
Automobile
|
- | 1 | ||||||
Total
recoveries
|
5 | 48 | ||||||
Net
charge-offs
|
(303 | ) | (62 | ) | ||||
Balance
at end of period
|
$ | 9,610 | $ | 8,728 | ||||
Ratios:
|
||||||||
Net
charge-offs to average loans
|
||||||||
outstanding
(annualized)
|
0.11 | % | 0.03 | % | ||||
Allowance
for loan losses to non-performing
|
||||||||
loans
at end of period
|
58.38 | % | 201.43 | % | ||||
Allowance
for loan losses to total
|
||||||||
loans
at end of period
|
0.87 | % | 1.01 | % |
March
31,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
Unused
lines of credit
|
$ | 227,035 | $ | 226,543 | ||||
Amounts
due mortgagors
|
28,201 | 30,225 | ||||||
Standby
letters of credit
|
3,215 | 6,155 | ||||||
Commitments
to originate loans
|
3,479 | 16,120 |
March
31,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
Demand
|
$ | 161,107 | $ | 154,374 | ||||
NOW
|
39,338 | 42,262 | ||||||
Savings
|
165,946 | 174,270 | ||||||
Money
market
|
231,222 | 189,763 | ||||||
Certificates
of deposit
|
467,579 | 478,258 | ||||||
$ | 1,065,192 | $ | 1,038,927 |
Total
|
||||||||||||||||
Level
1
|
Level
2
|
Level
3
|
Fair
Value
|
|||||||||||||
At March 31, 2010
|
||||||||||||||||
Securities
available for sale:
|
||||||||||||||||
Government-sponsored
enterprises
|
$ | 325 | $ | - | $ | - | $ | 325 | ||||||||
Government-sponsored
and government-
|
||||||||||||||||
guaranteed
mortgage-backed securities
|
- | 207,878 | - | 207,878 | ||||||||||||
Private
label mortgage-backed securities
|
- | 3,954 | - | 3,954 | ||||||||||||
Municipal
bonds
|
- | 10,626 | 302 | 10,928 | ||||||||||||
Corporate
bonds
|
- | - | 1,820 | 1,820 | ||||||||||||
Marketable
equity securities
|
138 | - | - | 138 | ||||||||||||
Mortgage
servicing rights
|
- | - | 450 | 450 | ||||||||||||
Total
|
$ | 463 | $ | 222,458 | $ | 2,572 | $ | 225,493 | ||||||||
At December 31, 2009
|
||||||||||||||||
Securities
available for sale
|
||||||||||||||||
Government-sponsored
enterprises
|
$ | 353 | $ | - | $ | - | $ | 353 | ||||||||
Government-sponsored
and government-
|
||||||||||||||||
guaranteed
mortgage-backed securities
|
- | 224,836 | - | 224,836 | ||||||||||||
Private
label mortgage-backed securities
|
- | 5,036 | - | 5,036 | ||||||||||||
Municipal
bonds
|
- | 10,631 | 302 | 10,933 | ||||||||||||
Corporate
bonds
|
- | - | 1,712 | 1,712 | ||||||||||||
Marketable
equity securities
|
434 | - | - | 434 | ||||||||||||
Mortgage
servicing rights
|
- | - | 313 | 313 | ||||||||||||
Total
|
$ | 787 | $ | 240,503 | $ | 2,327 | $ | 243,617 | ||||||||
Balance
at December 31, 2009
|
$ | 2,327 | ||
Total
realized/unrealized losses included in net income
|
(3 | ) | ||
Change
in unrealized gain
|
109 | |||
Purchases,
sales, issuances and settlements
|
139 | |||
Transfers
in and out of Level 3
|
- | |||
Balance
at March 31, 2010
|
$ | 2,572 | ||
Three
Months Ended
|
||||||||||||||||
March
31, 2010
|
||||||||||||||||
At
March 31, 2010
|
Total
|
|||||||||||||||
Level
1
|
Level
2
|
Level
3
|
Gains/(Losses)
|
|||||||||||||
Assets:
|
||||||||||||||||
Loans
|
$ | - | $ | 16,460 | $ | - | $ | (607 | ) | |||||||
Other
real estate owned
|
- | 1,976 | - | - | ||||||||||||
Other
assets
|
- | - | 545 | (145 | ) | |||||||||||
Total
assets
|
$ | - | $ | 18,436 | $ | 545 | $ | (752 | ) |
At
March 31, 2010
|
At
December 31, 2009
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
Value
|
Fair
Value
|
Value
|
Fair
Value
|
|||||||||||||
Financial
Assets:
|
||||||||||||||||
Cash
and cash equivalents
|
$ | 21,667 | $ | 21,667 | $ | 21,877 | $ | 21,877 | ||||||||
Short-term
investments
|
1,100 | 1,100 | 1,096 | 1,096 | ||||||||||||
Securities
available for sale
|
225,043 | 225,043 | 243,304 | 243,304 | ||||||||||||
Securities
held to maturity
|
71,498 | 71,658 | 63,174 | 63,063 | ||||||||||||
Stock
in Federal Home Loan Bank of Boston
|
15,365 | 15,365 | 15,365 | 15,365 | ||||||||||||
Net
loans
|
1,093,830 | 1,087,625 | 1,115,416 | 1,109,232 | ||||||||||||
Financial
Liabilities:
|
||||||||||||||||
Deposits
(with no stated maturity)
|
597,613 | 597,613 | 560,669 | 560,669 | ||||||||||||
Time
deposits
|
467,579 | 473,675 | 478,258 | 483,843 | ||||||||||||
Federal
Home Loan Bank of Boston advances
|
160,136 | 164,655 | 208,173 | 211,954 | ||||||||||||
Repurchase
agreements
|
42,062 | 40,905 | 47,303 | 46,068 | ||||||||||||
Subordinated
debentures
|
5,380 | 5,380 | 5,357 | 5,357 |
For
the Three Months Ended March 31,
|
||||||||||||||||
2010
|
2009
|
|||||||||||||||
Director
|
Director
|
|||||||||||||||
Retirement
|
Retirement
|
|||||||||||||||
SERP
|
Plan
|
SERP
|
Plan
|
|||||||||||||
Periodic benefit cost:
|
||||||||||||||||
Service
cost
|
$ | 80 | $ | 17 | $ | 69 | $ | 15 | ||||||||
Interest
cost
|
44 | 10 | 35 | 9 | ||||||||||||
Total
pension cost
|
124 | 27 | 104 | 24 | ||||||||||||
Prior
service cost amortization
|
29 | 9 | 19 | 9 | ||||||||||||
Net
periodic benefit cost
|
$ | 153 | $ | 36 | $ | 123 | $ | 33 |
Loans
Delinquent For
|
||||||||||||||||||||||||
60
- 89 Days
|
90
Days and Over
|
Total
|
||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
At March 31, 2010
|
||||||||||||||||||||||||
Residential
mortgages
|
3 | $ | 307 | 3 | $ | 943 | 6 | $ | 1,250 | |||||||||||||||
Commercial
mortgages
|
3 | 548 | 14 | 6,571 | (1) | 17 | 7,119 | |||||||||||||||||
Construction
|
- | - | 7 | 4,346 | 7 | 4,346 | ||||||||||||||||||
Home
equity
|
6 | 251 | 3 | 528 | 9 | 779 | ||||||||||||||||||
Commercial
and industrial
|
2 | 11 | 14 | 510 | 16 | 521 | ||||||||||||||||||
Automobile
|
1 | 2 | - | - | 1 | 2 | ||||||||||||||||||
Other
consumer
|
2 | 1 | 1 | 47 | 3 | 48 | ||||||||||||||||||
Total
|
17 | $ | 1,120 | 42 | $ | 12,945 | 59 | $ | 14,065 | |||||||||||||||
At December 31, 2009
|
||||||||||||||||||||||||
Residential
mortgages
|
13 | $ | 1,355 | 5 | $ | 1,190 | 18 | $ | 2,545 | |||||||||||||||
Commercial
mortgages
|
8 | 2,298 | 13 | 10,717 | 21 | 13,015 | ||||||||||||||||||
Construction
|
3 | 424 | 5 | 3,280 | 8 | 3,704 | ||||||||||||||||||
Home
equity
|
3 | 157 | 4 | 492 | 7 | 649 | ||||||||||||||||||
Commercial
and industrial
|
3 | 54 | 15 | 571 | 18 | 625 | ||||||||||||||||||
Automobile
|
- | - | 3 | 4 | 3 | 4 | ||||||||||||||||||
Other
consumer
|
3 | 11 | 1 | 33 | 4 | 44 | ||||||||||||||||||
Total
|
33 | $ | 4,299 | 46 | $ | 16,287 | 79 | $ | 20,586 |
(1) Does not include a
$3.5 million commercial mortgage loan which was restructured in the first
quarter of 2010 and was placed on non-accrual status. Although this loan
is reported as a non-performing asset, the borrower is current with
respect to restructured payment
terms.
|
At
March 31,
|
At
December 31,
|
|||||||
2010
|
2009
|
|||||||
(In
thousands)
|
||||||||
Classified
Loans:
|
||||||||
Special
mention
|
$ | 32,306 | $ | 33,507 | ||||
Substandard
|
45,564 | 45,354 | ||||||
Doubtful
|
115 | 136 | ||||||
Loss
|
- | - | ||||||
Total
classified loans
|
$ | 77,985 | $ | 78,997 | ||||
Foreclosed
Assets:
|
||||||||
Other
real estate owned
|
1,976 | 1,545 | ||||||
Total
classified assets
|
$ | 79,961 | $ | 80,542 | ||||
Three
Months Ended March 31,
|
||||||||||||||||||||||||
2010
|
2009
|
|||||||||||||||||||||||
Interest
|
Interest
|
|||||||||||||||||||||||
Average
|
and
|
Yield/
|
Average
|
and
|
Yield/
|
|||||||||||||||||||
Balance
|
Dividends
|
Cost
|
Balance
|
Dividends
|
Cost
|
|||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Loans:
|
||||||||||||||||||||||||
Residential
real estate
|
$ | 341,337 | $ | 4,632 | 5.43 | % | $ | 355,060 | $ | 4,943 | 5.57 | % | ||||||||||||
Commercial
real estate
|
455,852 | 7,069 | 6.20 | % | 282,593 | 4,187 | 5.93 | % | ||||||||||||||||
Home
equity
|
138,530 | 1,443 | 4.17 | % | 121,371 | 1,418 | 4.67 | % | ||||||||||||||||
Commercial
and industrial
|
152,627 | 1,977 | 5.18 | % | 82,804 | 1,113 | 5.38 | % | ||||||||||||||||
Consumer
and other
|
23,983 | 336 | 5.60 | % | 27,752 | 390 | 5.62 | % | ||||||||||||||||
Total
loans
|
1,112,329 | 15,457 | 5.56 | % | 869,580 | 12,051 | 5.54 | % | ||||||||||||||||
Investment
securities
|
302,916 | 3,292 | 4.35 | % | 313,799 | 3,871 | 4.93 | % | ||||||||||||||||
Other
interest-earning assets
|
19,011 | 8 | 0.17 | % | 14,661 | 8 | 0.22 | % | ||||||||||||||||
Total
interest-earning assets
|
1,434,256 | 18,757 | 5.23 | % | 1,198,040 | 15,930 | 5.32 | % | ||||||||||||||||
Noninterest-earning
assets(1)
|
94,953 | 53,185 | ||||||||||||||||||||||
Total
assets
|
$ | 1,529,209 | $ | 1,251,225 | ||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Savings
accounts
|
$ | 170,489 | 397 | 0.93 | % | $ | 105,664 | 288 | 1.09 | % | ||||||||||||||
Money
market accounts
|
206,325 | 449 | 0.87 | % | 171,175 | 626 | 1.46 | % | ||||||||||||||||
NOW
accounts
|
38,650 | 50 | 0.52 | % | 30,344 | 35 | 0.46 | % | ||||||||||||||||
Certificates
of deposit
|
467,551 | 2,479 | 2.12 | % | 367,031 | 2,876 | 3.13 | % | ||||||||||||||||
Total
interest-bearing deposits
|
883,015 | 3,375 | 1.53 | % | 674,214 | 3,825 | 2.27 | % | ||||||||||||||||
FHLB
advances
|
202,644 | 1,552 | 3.06 | % | 204,501 | 1,737 | 3.40 | % | ||||||||||||||||
Other
interest-bearing liabilities
|
53,981 | 334 | 2.47 | % | 31,780 | 213 | 2.68 | % | ||||||||||||||||
Total
interest-bearing liabilities
|
1,139,640 | 5,261 | 1.85 | % | 910,495 | 5,775 | 2.54 | % | ||||||||||||||||
Demand
deposits
|
155,358 | 111,099 | ||||||||||||||||||||||
Other
noninterest-bearing liabilities
|
9,425 | 8,948 | ||||||||||||||||||||||
Total
liabilities
|
1,304,423 | 1,030,542 | ||||||||||||||||||||||
Stockholders'
equity
|
224,786 | 220,683 | ||||||||||||||||||||||
Total
liabilities and stockholders' equity
|
$ | 1,529,209 | $ | 1,251,225 | ||||||||||||||||||||
Net
interest income
|
$ | 13,496 | $ | 10,155 | ||||||||||||||||||||
Interest
rate spread(2)
|
3.38 | % | 2.78 | % | ||||||||||||||||||||
Net
interest-earning assets(3)
|
$ | 294,616 | $ | 287,545 | ||||||||||||||||||||
Net
interest margin(4)
|
3.76 | % | 3.39 | % | ||||||||||||||||||||
Average
interest-earning assets to
|
||||||||||||||||||||||||
average
interest-bearing liabilities
|
125.85 | % | 131.58 | % | ||||||||||||||||||||
|
(1)
|
Includes
bank-owned life insurance, the income on which is classified as
non-interest income.
|
|
(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-earning assets represents total interest-earning assets less
total interest-bearing liabilities.
|
|
(4)
|
Net
interest margin represents annualized net interest income divided by
average total interest-earning
assets.
|
Three
Months Ended March 31,
|
||||||||||||
2010
vs. 2009
|
||||||||||||
Increase
(Decrease) Due to
|
||||||||||||
Volume
|
Rate
|
Net
|
||||||||||
(In
thousands)
|
||||||||||||
Interest-earning
assets:
|
||||||||||||
Loans:
|
||||||||||||
Residential
real estate
|
$ | (188 | ) | $ | (123 | ) | $ | (311 | ) | |||
Commercial
real estate
|
2,679 | 203 | 2,882 | |||||||||
Home
equity
|
188 | (163 | ) | 25 | ||||||||
Commercial
and industrial
|
906 | (42 | ) | 864 | ||||||||
Consumer
and other
|
(53 | ) | (1 | ) | (54 | ) | ||||||
Total
loans
|
3,532 | (126 | ) | 3,406 | ||||||||
Investment
securities
|
(130 | ) | (449 | ) | (579 | ) | ||||||
Other
interest-earning assets
|
1 | (1 | ) | - | ||||||||
Total
interest-earning assets
|
3,403 | (576 | ) | 2,827 | ||||||||
Interest-bearing
liabilities:
|
||||||||||||
Savings
accounts
|
156 | (47 | ) | 109 | ||||||||
Money
market accounts
|
111 | (288 | ) | (177 | ) | |||||||
NOW
accounts
|
11 | 4 | 15 | |||||||||
Certificates
of deposit
|
671 | (1,068 | ) | (397 | ) | |||||||
Total
interest-bearing deposits
|
949 | (1,399 | ) | (450 | ) | |||||||
FHLB
advances
|
(16 | ) | (169 | ) | (185 | ) | ||||||
Other
interest-bearing liabilities
|
139 | (18 | ) | 121 | ||||||||
Total
interest-bearing liabilities
|
1,072 | (1,586 | ) | (514 | ) | |||||||
Change
in net interest income
|
$ | 2,331 | $ | 1,010 | $ | 3,341 | ||||||
Net
Interest Income At-Risk
|
||||
Estimated
Increase (Decrease)
|
Estimated
Increase (Decrease)
|
|||
Change
in Interest Rates
|
in
NII
|
in
NII
|
||
(Basis
Points)
|
(March
31, 2010)
|
(December
31, 2009)
|
||
-100
|
(2.0)%
|
(2.8)%
|
||
Stable
|
0.0%
|
0.0%
|
||
+200
|
1.7%
|
0.5%
|
||
March
31, 2010
|
||||||||||||||||||||||
NPV
as a Percentage of Present
|
||||||||||||||||||||||
Value
of Assets (3)
|
||||||||||||||||||||||
Estimated Increase (Decrease) in |
|
|||||||||||||||||||||
Change
in
|
NPV
|
Increase
|
||||||||||||||||||||
Interest
Rates
|
Estimated
|
(Decrease)
|
||||||||||||||||||||
(basis
points) (1)
|
NPV (2)
|
Amount
|
Percent
|
NPV
Ratio (4)
|
(basis
points)
|
|||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
+300 | $ | 140,236 | $ | (53,374 | ) | (28 | )% | 10.16 | % | (278 | ) | |||||||||||
+200 | 161,985 | (31,625 | ) | (16 | ) | 11.40 | (153 | ) | ||||||||||||||
+100 | 181,394 | (12,216 | ) | (6 | ) | 12.41 | (52 | ) | ||||||||||||||
0 | 193,610 | 12.93 | ||||||||||||||||||||
-100 | 209,468 | 15,858 | 8 | 13.70 | 77 | |||||||||||||||||
December
31, 2009
|
||||||||||||||||||||||
NPV
as a Percentage of Present
|
||||||||||||||||||||||
Value
of Assets (3)
|
||||||||||||||||||||||
Estimated Increase (Decrease) in |
|
|||||||||||||||||||||
Change
in
|
NPV
|
Increase
|
||||||||||||||||||||
Interest
Rates
|
Estimated
|
(Decrease)
|
||||||||||||||||||||
(basis
points) (1)
|
NPV (2)
|
Amount
|
Percent
|
NPV
Ratio (4)
|
(basis
points)
|
|||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
+300 | $ | 138,536 | $ | (53,844 | ) | (28 | )% | 9.83 | % | (278 | ) | |||||||||||
+200 | 160,423 | (31,957 | ) | (17 | ) | 11.07 | (155 | ) | ||||||||||||||
+100 | 179,607 | (12,773 | ) | (7 | ) | 12.07 | (55 | ) | ||||||||||||||
0 | 192,380 | 12.62 | ||||||||||||||||||||
-100 | 206,234 | 13,854 | 7 | 13.27 | 65 |
(1) Assumes
an instantaneous uniform change in interest rates at all
maturities.
|
||||||||||
(2) NPV
is the discounted present value of expected cash flows from assets,
liabilities and off-balance sheet contracts.
|
||||||||||
(3) Present
value of assets represents the discounted present value of incoming cash
flows on interest-earning assets.
|
||||||||||
(4) NPV
ratio represents NPV divided by the present value of
assets.
|
Payments
Due by Period (In Thousands)
|
||||||||||||||||||||
Less
Than
|
One
to Three
|
Three
to Five
|
More
than
|
|||||||||||||||||
One
Year
|
Years
|
Years
|
Five
Years
|
Total
|
||||||||||||||||
Contractual Obligations:
|
||||||||||||||||||||
Certificates
of deposit
|
$ | 311,593 | $ | 110,995 | $ | 44,569 | $ | - | $ | 467,157 | ||||||||||
Federal
Home Loan Bank advances
|
11,395 | 61,119 | 50,599 | 34,554 | 157,667 | |||||||||||||||
Repurchase
agreements
|
22,062 | - | - | 20,000 | 42,062 | |||||||||||||||
Subordinated
debentures
|
- | - | - | 7,732 | 7,732 | |||||||||||||||
Standby
letters of credit
|
3,215 | - | - | - | 3,215 | |||||||||||||||
Operating
leases
|
1,064 | 1,776 | 1,646 | 4,865 | 9,351 | |||||||||||||||
Capitalized
leases
|
406 | 812 | 813 | 6,661 | 8,692 | |||||||||||||||
Future
benefits to be paid under
|
||||||||||||||||||||
retirement
plans
|
199 | 3,540 | 171 | 4,650 | 8,560 | |||||||||||||||
Total
|
$ | 349,934 | $ | 178,242 | $ | 97,798 | $ | 78,462 | $ | 704,436 | ||||||||||
Commitments:
|
||||||||||||||||||||
Commitments
to extend credit
|
$ | 261,930 | $ | - | $ | - | $ | - | $ | 261,930 | ||||||||||
Commitment
to invest in venture
|
||||||||||||||||||||
capital
fund
|
700 | - | - | - | 700 | |||||||||||||||
Total
|
$ | 262,630 | $ | - | $ | - | $ | - | $ | 262,630 | ||||||||||
To
Be Well Capitalized
|
||||||
For
Capital
|
Under
Regulatory
|
|||||
Actual
|
Adequacy
Purposes
|
Framework
|
||||
As
of March 31, 2010:
|
||||||
Total
risk-based capital
|
16.96%
|
8.00%
|
10.00%
|
|||
Tier
1 risk-based capital
|
16.13%
|
4.00%
|
6.00%
|
|||
Tier
1 (core) capital
|
12.60%
|
4.00%
|
5.00%
|
|||
Tangible
equity
|
12.60%
|
1.50%
|
N/A
|
|||
As
of December 31, 2009:
|
||||||
Total
risk-based capital
|
16.53%
|
8.00%
|
10.00%
|
|||
Tier
1 risk-based capital
|
15.73%
|
4.00%
|
6.00%
|
|||
Tier
1 (core) capital
|
12.14%
|
4.00%
|
5.00%
|
|||
Tangible
equity
|
12.14%
|
1.50%
|
N/A
|
|||
(c)
|
(d)
|
|||||||||||||||
Total
Number of
|
Maximum
Number
|
|||||||||||||||
Shares
|
(or
Approximate
|
|||||||||||||||
(a)
|
(b)
|
(or
Units)
|
Dollar
Value) of
|
|||||||||||||
Total
Number
|
Average
Price
|
Purchased
as Part
|
Shares
(or Units) that
|
|||||||||||||
of
Shares
|
Paid
Per
|
of
Publicly
|
May
Yet Be
|
|||||||||||||
(or
Units)
|
Share
|
Announced
Plans
|
Purchased
Under the
|
|||||||||||||
Period
|
Purchased
|
(or
Unit)
|
or
Programs
|
Plans or Programs
(1)
|
||||||||||||
January
1 - 31, 2010
|
130,641 | $ | 12.90 | 130,641 | 601,884 | |||||||||||
February
1 - 28, 2010
|
33,697 | 13.01 | 33,697 | 568,187 | ||||||||||||
March
1 - 31, 2010
|
- | - | - | 568,187 | ||||||||||||
Total
|
164,338 | $ | 12.92 | 164,338 |
(1) On
October 16, 2009, the Board of Directors approved a plan to repurchase up
to 5%, or approximately 798,055 shares, of the Company’s common stock.
Under the plan, the Company intends to repurchase shares from time to
time, depending on market conditions and will continue until it is
completed.
|
3.1
|
Articles
of Incorporation of United Financial Bancorp, Inc. (1)
|
3.2
|
Amended
and Restated Bylaws of United Financial Bancorp, Inc.
(2)
|
4
|
Form
of Common Stock Certificate of United Financial Bancorp, Inc.
(1)
|
31.1
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Executive
Officer
|
31.2
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Financial
Officer
|
32
|
Section
1350 Certification of Chief Executive Officer and Chief Financial
Officer
|
(1)
|
Incorporated
by reference to the Registration Statement on Form S-1 of United Financial
Bancorp, Inc. (File No. 333-144245), originally filed with the Securities
and Exchange Commission on June 29, 2007.
|
(2)
|
Incorporated
by reference to the Form 10-K of United Financial Bancorp, Inc. filed with
the Securities and Exchange Commission on March 13,
2009.
|
United
Financial Bancorp, Inc.
|
||
Date:
May
7, 2010
|
By:
|
/s/ Richard B. Collins
|
Richard
B. Collins
|
||
Chairman,
President and Chief Executive Officer
|
||
Date:
May
7, 2010
|
By:
|
/s/ Mark A. Roberts
|
Mark
A. Roberts
|
||
Executive
Vice President and Chief Financial
Officer
|