|
x
|
ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
o
|
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
COMMUNITY PARTNERS BANCORP
|
(Exact Name of Registrant as Specified in Its Charter)
|
New Jersey
|
20-3700861
|
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
(I.R.S. Employer Identification Number)
|
766 Shrewsbury Avenue, Tinton Falls, New Jersey 07724
|
||
(Address of Principal Executive Offices, including Zip Code)
|
(732) 389-8722
|
||
(Registrant’s telephone number, including area code)
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Securities registered pursuant to Section 12(b) of the Act:
|
||
Title of each class
|
Name of each exchange on which registered
|
|
Common Stock, no par value
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The NASDAQ Stock Market LLC
|
Preferred Stock Purchase Rights
|
||
(Title of Class)
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Large accelerated filer
|
o
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Accelerated filer
|
o
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Non-accelerated filer (Do not check if a smaller reporting company)
|
o
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Smaller reporting company
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x
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PART I
|
|||
1
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|||
18
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|||
24
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|||
25
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|||
26
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|||
26
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|||
PART II
|
|||
26
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|||
26
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|||
27
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|||
51
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|||
51
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|||
51
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|||
51
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|||
52
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|||
PART III
|
|||
52
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|||
52
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|||
53
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|||
53
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|||
53
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|||
PART IV
|
|||
54
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|||
55
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·
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a prohibition on personal loans made or arranged by the issuer to its directors and executive officers (except for loans made by a bank subject to Regulation O);
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·
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independence requirements for audit committee members;
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·
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disclosure of whether at least one member of the audit committee is a “financial expert” (as such term is defined by the SEC) and if not, why not;
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·
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independence requirements for outside auditors;
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·
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certification of financial statements and reports on Forms 10-K and 10-Q by the chief executive officer and the chief financial officer;
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·
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the forfeiture of bonuses or other incentive-based compensation and profits from the sale of an issuer’s securities by directors and senior officers in the twelve month period following initial publication of any financial statements that later require restatement due to corporate misconduct;
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·
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disclosure of a code of ethics for financial officers and filing a Form 8-K for a change or waiver of such code; and
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·
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various increased criminal penalties for violations of securities laws.
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·
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The Dodd-Frank Act repealed the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other accounts. Depending on competitive responses, this significant change to existing law could have an adverse impact on the Company’s interest expense.
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·
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The Dodd-Frank Act also broadens the base for FDIC insurance assessments. Assessments will now be based on the average consolidated total assets less tangible equity capital of a financial institution.
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·
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The Dodd-Frank Act also permanently increases the maximum amount of deposit insurance for banks, savings institutions and credit unions to $250,000 per depositor, retroactive to January 1, 2008, and non-interest bearing transaction accounts have unlimited deposit insurance through December 31, 2012.
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·
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Bank and thrift holding companies with assets of less than $15 billion as of December 31, 2009, such as the Company, will be permitted to include trust preferred securities that were issued before May 19, 2010, as Tier 1 capital; however, trust preferred securities issued by a bank or thrift holding company (other than those with assets of less than $500 million) after May 19, 2010, will no longer count as Tier 1 capital. Trust preferred securities still will be entitled to be treated as Tier 2 capital.
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·
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The Dodd-Frank Act centralized responsibility for consumer financial protection by creating a new agency, the Consumer Financial Protection Bureau (“CFPB”), and giving it responsibility for implementing, examining and enforcing compliance with federal consumer protection laws.
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·
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The “Durbin Amendment” provisions of the Dodd-Frank Act provided that debit card interchange fees must be reasonable and proportional to the cost incurred by the issuer with respect to the transaction. In June 2011, the Federal Reserve adopted regulations setting the maximum permissible interchange fee as the sum of 21 cents per transaction and 5 basis points multiplied by the value of the transaction, with an additional adjustment of up to one cent per transaction, with an additional adjustment of up to one cent per transaction if the issuer implements certain fraud-prevention standards.
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·
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The Dodd-Frank Act created a new systemic risk oversight body, the Financial Stability Oversight Council (“FSOC”), to oversee and coordinate the efforts of the primary U.S. financial regulatory agencies in establishing regulations to address financial stability concerns.
|
|
·
|
The Dodd-Frank Act directs the FSOC to make recommendations to the Federal Reserve as to enhanced supervision and prudential standards applicable to large, interconnected financial institutions, including bank holding companies with total consolidated assets of $50 billion or more, and authorizes the Federal Reserve to establish such standards either on its own or upon the recommendations of the FSOC.
|
|
·
|
The Dodd-Frank Act includes provisions permitting national and insured state banks to engage in
de novo
interstate branching if, under the laws of the state where the new branch is to be established, as state bank chartered in that state would be permitted to establish a branch.
|
|
·
|
The Dodd-Frank Act requires various U.S. financial regulatory agencies to implement comprehensive rules governing the supervision, structure, trading and regulation of swap and over the-counter derivative markets and participants. The Dodd-Frank Act requires a large number of rules in this area, many of which are not yet final.
|
|
·
|
The Dodd-Frank Act requires the federal financial regulatory agencies to adopt rules that prohibit banks and their affiliates from engaging in proprietary trading and investing in and sponsoring certain unregistered investment companies (defined as hedge funds and private equity funds), with implementation starting as early as July 2012. The statutory provision is commonly referred to as the “Volcker Rule”. In October 2011, federal regulators proposed rules to implement the Volcker Rule. We do not currently anticipate that the Volcker Rule will have a material effect on our operations. However, until a final rule is adopted, the precise financial impact of the rule cannot be determined.
|
|
·
|
In October 2011, the Federal Reserve issued a final rule implementing resolution planning requirements in the Dodd-Frank Act. The final rule requires bank holding companies with assets of $50 billion or more and nonbank financial firms designated by FSOC for supervision by the Federal Reserve to annually submit resolution plans to the FDIC and Federal Reserve. Each plan shall describe the company’s strategy for rapid and orderly resolution in bankruptcy during times of financial distress. Under the final rule, companies will submit their initial resolution plans on a staggered basis.
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·
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the viability of the contractor;
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·
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the value of the project being subject to successful completion;
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·
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the contractor’s ability to complete the project, to meet deadlines and time schedules and to stay within cost estimates; and
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·
|
concentrations of such loans with a single contractor and its affiliates.
|
·
|
changes to regulatory capital requirements;
|
·
|
exclusion of hybrid securities, including trust preferred securities, issued on or after May 19, 2010 from tier 1 capital;
|
·
|
creation of new government regulatory agencies (such as the Financial Stability Oversight Council, which will oversee systemic risk, and the Consumer Financial Protection Bureau, which will develop and enforce rules for bank and non-bank providers of consumer financial products);
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·
|
potential limitations on federal preemption;
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·
|
changes to deposit insurance assessments;
|
·
|
regulation of debit interchange fees we earn;
|
·
|
changes in retail banking regulations, including potential limitations on certain fees we may charge; and
|
·
|
changes in regulation of consumer mortgage loan origination and risk retention.
|
Office Location
|
Address
|
Description
|
Opened
|
||||
Corporate Headquarters
|
766 Shrewsbury Avenue
Tinton Falls, NJ
|
17,626 sq. ft. building (leased)
|
10/12
|
||||
The Bank’s Main Office
:
|
1250 Highway 35 South
Middletown, NJ
|
5,300 sq. ft. first-floor stand- alone building (leased)
|
02/00
|
||||
Allaire
:
|
Monmouth Executive Airport
229 Airport Road, Bldg. 13
Farmingdale, NJ
|
3,800 sq. ft. building (leased)
|
02/04
|
||||
Atlantic Highlands
:
|
84 First Avenue
Atlantic Highlands, NJ
|
700 sq. ft. store front (leased)
|
03/02
|
||||
Cliffwood
:
|
Angel Street & Route 35
Aberdeen, NJ
|
2,500 sq. ft. building (leased)
|
11/04
|
(1) | |||
Cranford Office:
|
104 Walnut Avenue
Cranford, NJ
|
800 sq. ft. storefront (leased)
|
11/07
|
||||
Fanwood:
|
328 South Avenue
Fanwood, NJ
|
2,966 sq. ft. stand-alone building (leased)
|
03/08
|
||||
Manasquan:
|
240 Route 71
Manasquan, NJ
|
4,300 sq. ft. stand-alone building (leased)
|
06/08
|
||||
Navesink
:
|
East Pointe Shopping Center
2345 Route 36
Atlantic Highlands, NJ
|
2,080 sq. ft. in strip shopping center (leased)
|
09/05
|
||||
Port Monmouth
:
|
357 Highway 36
Port Monmouth, NJ
|
2,180 sq. ft. stand-alone building (leased)
|
06/01
|
||||
Red Bank
:
|
City Centre Plaza
100 Water Street
Red Bank, NJ
|
512 sq. ft. in strip shopping center (leased)
|
09/02
|
(1) | |||
Red Bank
:
|
140 Broad Street
Red Bank, NJ
|
2,350 sq. ft. store front (leased)
|
11/12
|
||||
Tinton Falls:
|
4050 Asbury Avenue
Tinton Falls, NJ
|
3,400 sq. ft. stand-alone building (leased)
|
10/06
|
||||
Tinton Falls
:
|
656 Shrewsbury Avenue
Tinton Falls, NJ
|
3,650 sq. ft. stand-alone building (leased)
|
08/00
|
||||
West Long Branch
:
|
359 Monmouth Road
West Long Branch, NJ
|
3,100 sq. ft. in strip shopping center (leased)
|
01/04
|
||||
Westfield:
|
520 South Avenue
Westfield, NJ
|
3,000 sq. ft. stand-alone building (leased)
|
10/98
|
||||
Westfield:
|
44 Elm Street
Westfield, NJ
|
3,000 sq. ft. downtown building (owned)
|
04/01
|
|
(1)
|
The Company has filed applications with its banking regulators to close these locations. For more information see “Item 9B. Other Information.”
|
2012
|
2011
|
|||||||||||||||
High
|
Low
|
High
|
Low
|
|||||||||||||
First Quarter
|
$
|
6.10
|
$
|
4.55
|
$
|
5.19
|
$
|
4.34
|
||||||||
Second Quarter
|
6.20
|
5.50
|
5.06
|
4.32
|
||||||||||||
Third Quarter
|
5.98
|
5.45
|
5.10
|
4.38
|
||||||||||||
Fourth Quarter
|
6.05
|
5.27
|
4.75
|
4.47
|
2012
|
2011
|
2010
|
||||||||||
Return on average assets
|
0.69
|
%
|
0.65
|
%
|
0.56
|
%
|
||||||
Return on average tangible assets (1)
|
0.71
|
%
|
0.67
|
%
|
0.57
|
%
|
||||||
Return on average equity
|
5.36
|
%
|
5.16
|
%
|
4.60
|
%
|
||||||
Return on average tangible equity (1)
|
6.75
|
%
|
6.64
|
%
|
6.05
|
%
|
||||||
Net interest margin
|
4.08
|
%
|
4.21
|
%
|
4.15
|
%
|
||||||
Average equity to average assets
|
12.84
|
%
|
12.54
|
%
|
12.08
|
%
|
||||||
Average tangible equity to average tangible assets (1)
|
10.47
|
%
|
10.02
|
%
|
9.45
|
%
|
|
(1)
|
The following table provided the reconciliation of Non-GAAP Financial Measures for the dates indicated:
|
2012
|
2011
|
2010
|
||||||||||
Net income available to common shareholders
|
$
|
4,367
|
$
|
3,494
|
$
|
3,039
|
||||||
Effect of accelerated portion of discount accretion
|
-
|
301
|
-
|
|||||||||
Net income available to common shareholders
|
||||||||||||
excluding accelerated discount accretion
|
$
|
4,367
|
$
|
3,795
|
$
|
3,039
|
||||||
Diluted earnings per common share
|
$
|
0.54
|
$
|
0.44
|
$
|
0.39
|
||||||
Effect of accelerated portion of discount accretion
|
-
|
.04
|
-
|
|||||||||
Diluted earnings per common share excluding
|
||||||||||||
excluding accelerated discount accretion
|
$
|
0.54
|
$
|
0.48
|
$
|
0.39
|
||||||
Book value per common share
|
$
|
10.02
|
$
|
9.46
|
$
|
9.12
|
||||||
Effect of intangible assets
|
(2.31
|
)
|
(2.33
|
)
|
(2.39
|
)
|
||||||
Tangible book value per common share
|
$
|
7.71
|
$
|
7.13
|
$
|
6.73
|
||||||
Return on average assets
|
0.69
|
%
|
0.65
|
%
|
0.56
|
%
|
||||||
Effect of intangible assets
|
0.02
|
%
|
0.02
|
%
|
0.01
|
%
|
||||||
Return on average tangible assets
|
0.71
|
%
|
0.67
|
%
|
0.57
|
%
|
||||||
Return on average equity
|
5.36
|
%
|
5.16
|
%
|
4.60
|
%
|
||||||
Effect of average intangible assets
|
1.39
|
%
|
1.48
|
%
|
1.45
|
%
|
||||||
Return on average tangible equity
|
6.75
|
%
|
6.64
|
%
|
6.05
|
%
|
||||||
Average equity to average assets
|
12.84
|
%
|
12.54
|
%
|
12.08
|
%
|
||||||
Effect of intangible assets
|
(2.37
|
%)
|
(2.52
|
%)
|
(2.63
|
%)
|
||||||
Average tangible equity to average tangible assets
|
10.47
|
%
|
10.02
|
%
|
9.45
|
%
|
Years ended December 31,
|
||||||||||||||||||||||||||||||||||||
2012
|
2011
|
2010
|
||||||||||||||||||||||||||||||||||
Average
balance
|
Interest
income/
expense
|
Average
rates
earned/
paid
|
Average
balance
|
Interest
income/
expense
|
Average
rates
earned/
paid
|
Average
balance
|
Interest
income/
expense
|
Average
rates
earned/
paid
|
||||||||||||||||||||||||||||
(in thousands, except for percentages)
|
||||||||||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||||||
Interest-Earning Assets:
|
||||||||||||||||||||||||||||||||||||
Interest bearing deposits in banks
|
$
|
31,748
|
$
|
81
|
0.26%
|
$
|
37,801
|
$
|
96
|
0.25%
|
$
|
30,808
|
$
|
78
|
0.25%
|
|||||||||||||||||||||
Federal funds sold
|
-
|
-
|
-
|
3,145
|
7
|
0.22%
|
12,704
|
27
|
0.21%
|
|||||||||||||||||||||||||||
Investment securities
|
65,624
|
1,565
|
2.38%
|
52,932
|
1,534
|
2.90%
|
45,885
|
1,596
|
3.48%
|
|||||||||||||||||||||||||||
Loans, net of unearned fees (1) (2)
|
545,986
|
29,192
|
5.35%
|
519,364
|
29,409
|
5.66%
|
514,553
|
29,578
|
5.75%
|
|||||||||||||||||||||||||||
Total Interest-Earning Assets
|
643,358
|
30,838
|
4.79%
|
613,242
|
31,046
|
5.06%
|
603,950
|
31,279
|
5.18%
|
|||||||||||||||||||||||||||
Non-Interest-Earning Assets:
|
||||||||||||||||||||||||||||||||||||
Allowance for loan loss
|
(7,351
|
)
|
(6,682
|
)
|
(6,869
|
)
|
||||||||||||||||||||||||||||||
Other assets
|
63,303
|
59,723
|
54,173
|
|||||||||||||||||||||||||||||||||
Total Assets
|
$
|
699,310
|
$
|
666,283
|
$
|
651,254
|
||||||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||||||||||
Interest-Bearing Liabilities:
|
||||||||||||||||||||||||||||||||||||
NOW deposits
|
$
|
69,063
|
296
|
0.43%
|
$
|
57,378
|
257
|
0.45%
|
$
|
48,638
|
297
|
0.61%
|
||||||||||||||||||||||||
Savings deposits
|
217,879
|
1,605
|
0.74%
|
199,641
|
1,720
|
0.86%
|
199,380
|
2,212
|
1.11%
|
|||||||||||||||||||||||||||
Money market deposits
|
83,140
|
320
|
0.38%
|
88,095
|
508
|
0.58%
|
99,659
|
882
|
0.89%
|
|||||||||||||||||||||||||||
Time deposits
|
106,012
|
1,856
|
1.75%
|
116,331
|
2,202
|
1.89%
|
117,946
|
2,288
|
1.94%
|
|||||||||||||||||||||||||||
Securities sold under agreements to repurchase
|
18,266
|
107
|
0.59%
|
16,593
|
118
|
0.71%
|
15,367
|
165
|
1.07%
|
|||||||||||||||||||||||||||
Long-term debt
|
13,500
|
434
|
3.21%
|
13,500
|
433
|
3.21%
|
9,719
|
350
|
3.60%
|
|||||||||||||||||||||||||||
Total Interest-Bearing Liabilities
|
507,860
|
4,618
|
0.91%
|
491,538
|
5,238
|
1.07%
|
490,709
|
6,194
|
1.26%
|
|||||||||||||||||||||||||||
Non-Interest-Bearing Liabilities:
|
||||||||||||||||||||||||||||||||||||
Demand deposits
|
96,967
|
86,687
|
78,052
|
|||||||||||||||||||||||||||||||||
Other liabilities
|
4,726
|
4,525
|
3,854
|
|||||||||||||||||||||||||||||||||
Total Non-Interest-Bearing Liabilities
|
101,693
|
91,212
|
81,906
|
|||||||||||||||||||||||||||||||||
Shareholders’ Equity
|
89,757
|
83,533
|
78,639
|
|||||||||||||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity
|
$
|
699,310
|
$
|
666,283
|
$
|
651,254
|
||||||||||||||||||||||||||||||
NET INTEREST INCOME
|
$
|
26,220
|
$
|
25,808
|
$
|
25,085
|
||||||||||||||||||||||||||||||
NET INTEREST SPREAD (3)
|
3.88%
|
3.99%
|
3.92%
|
|||||||||||||||||||||||||||||||||
NET INTEREST MARGIN (4)
|
4.08%
|
4.21%
|
4.15%
|
(1)
|
Included in interest income on loans are loan fees.
|
(2)
|
Includes non-performing loans.
|
(3)
|
The interest rate spread is the difference between the weighted average yield on average interest-earning assets and the weighted average cost of average interest-bearing liabilities.
|
(4)
|
The interest rate margin is calculated by dividing net interest income by average interest-earning assets.
|
Years ended December 31,
|
||||||||||||||||||||||||
2012 vs. 2011
|
2011 vs. 2010
|
|||||||||||||||||||||||
Increase (decrease) due to change in
|
||||||||||||||||||||||||
Average
volume
|
Average
rate
|
Net
|
Average
volume
|
Average
rate
|
Net
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Interest Earned On:
|
||||||||||||||||||||||||
Interest bearing deposits in banks
|
$
|
(15
|
)
|
$
|
-
|
$
|
(15
|
)
|
$
|
18
|
$
|
-
|
$
|
18
|
||||||||||
Federal funds sold
|
(7
|
)
|
-
|
(7
|
)
|
(20
|
)
|
-
|
(20
|
)
|
||||||||||||||
Investment securities
|
276
|
(245
|
)
|
31
|
184
|
(246
|
)
|
(62
|
)
|
|||||||||||||||
Loans, net of unearned fees
|
1,512
|
(1,729
|
)
|
(217
|
)
|
277
|
(446
|
)
|
(169
|
)
|
||||||||||||||
Total Interest Income
|
1,766
|
(1,974
|
)
|
(208
|
)
|
459
|
(692
|
)
|
(233
|
)
|
||||||||||||||
Interest Paid On:
|
||||||||||||||||||||||||
NOW deposits
|
52
|
(13
|
)
|
39
|
53
|
(93
|
)
|
(40
|
)
|
|||||||||||||||
Savings deposits
|
158
|
(273
|
)
|
(115
|
)
|
3
|
(495
|
)
|
(492
|
)
|
||||||||||||||
Money market deposits
|
(29
|
)
|
(159
|
)
|
(188
|
)
|
(102
|
)
|
(272
|
)
|
(374
|
)
|
||||||||||||
Time deposits
|
(196
|
)
|
(150
|
)
|
(346
|
)
|
(31
|
)
|
(55
|
)
|
(86
|
)
|
||||||||||||
Securities sold under agreements to repurchase
|
12
|
(23
|
)
|
(11
|
)
|
13
|
(60
|
)
|
(47
|
)
|
||||||||||||||
Long-term debt
|
1
|
-
|
1
|
136
|
(53
|
)
|
83
|
|||||||||||||||||
Total Interest Expense
|
(2
|
)
|
(618
|
)
|
(620
|
)
|
72
|
(1,028
|
)
|
(956
|
)
|
|||||||||||||
Net Interest Income
|
$
|
1,768
|
$
|
(1,356
|
)
|
$
|
412
|
$
|
387
|
$
|
336
|
$
|
723
|
Years ended
|
%
|
|||||||||||||||
December 31,
|
Increase
|
Increase
|
||||||||||||||
(dollars in thousands)
|
2012
|
2011
|
(Decrease)
|
(Decrease)
|
||||||||||||
Salaries and employee benefits
|
$
|
10,915
|
$
|
10,539
|
$
|
376
|
3.6%
|
|||||||||
Occupancy and equipment
|
3,200
|
3,205
|
(5
|
)
|
(0.2%
|
)
|
||||||||||
Professional fees
|
754
|
851
|
(97
|
)
|
(11.4%
|
)
|
||||||||||
Advertising and marketing
|
270
|
225
|
45
|
20.0%
|
||||||||||||
Data processing
|
748
|
641
|
107
|
16.7%
|
||||||||||||
Insurance
|
345
|
390
|
(45
|
)
|
(11.5%
|
)
|
||||||||||
FDIC insurance and assessments
|
553
|
673
|
(120
|
)
|
(17.8%
|
)
|
||||||||||
Outside service fees
|
508
|
422
|
86
|
20.4%
|
||||||||||||
Amortization of identifiable intangibles
|
163
|
201
|
(38
|
)
|
(18.9%
|
)
|
||||||||||
OREO expenses, OREO impairment and sales, net
|
699
|
270
|
429
|
158.9%
|
||||||||||||
Loan workout expenses
|
240
|
166
|
74
|
44.6%
|
||||||||||||
Other operating
|
1,452
|
1,510
|
(58
|
)
|
(3.8%
|
)
|
||||||||||
Total Non-Interest Expenses
|
$
|
19,847
|
$
|
19,093
|
$
|
754
|
3.9%
|
December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Investment securities available for sale at fair value:
|
||||||||||||
U.S. Government agency securities
|
$
|
-
|
$
|
2,258
|
$
|
5,786
|
||||||
Municipal securities
|
1,310
|
1,307
|
2,016
|
|||||||||
U.S. Government-sponsored enterprises (“GSE”) -
|
||||||||||||
Residential mortgage-backed securities
|
20,374
|
21,878
|
16,251
|
|||||||||
Collateralized residential mortgage obligations
|
22,996
|
17,163
|
5,745
|
|||||||||
Corporate debt securities, primarily financial institutions
|
3,655
|
2,528
|
3,087
|
|||||||||
Community Reinvestment Act (“CRA”) mutual fund
|
2,421
|
2,321
|
2,194
|
|||||||||
$
|
50,756
|
$
|
47,455
|
$
|
35,079
|
|||||||
Investment securities held to maturity at amortized cost:
|
||||||||||||
Municipal securities
|
$
|
17,799
|
$
|
11,296
|
$
|
8,522
|
||||||
GSE – Residential mortgage-backed securities
|
1,083
|
-
|
-
|
|||||||||
Collateralized residential mortgage obligations
|
892
|
-
|
-
|
|||||||||
Corporate debt securities, primarily financial institutions
|
1,812
|
1,809
|
2,307
|
|||||||||
$
|
21,586
|
$
|
13,105
|
$
|
10,829
|
December 31, 2012
|
Due within 1
year
|
Due 1 – 5 years
|
Due 5 – 10 years
|
Due after 10
years
|
Total
|
|||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
Amortized
cost
|
Wtd
Avg
Yield
|
Amortized
cost
|
Wtd
Avg
Yield
|
Amortized
cost
|
Wtd
Avg
Yield
|
Amortized
cost
|
Wtd
Avg
Yield
|
Amortized
cost
|
Wtd
Avg
Yield
|
||||||||||||||||||||||||||||||
Investment securities available for sale:
|
||||||||||||||||||||||||||||||||||||||||
Municipal securities
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
424
|
4.40
|
%
|
$
|
831
|
4.52
|
%
|
$
|
1,255
|
4.48
|
%
|
||||||||||||||||||||||
GSE - Residential
|
||||||||||||||||||||||||||||||||||||||||
mortgage-backed securities
|
-
|
-
|
74
|
6.48
|
%
|
4,627
|
2.84
|
%
|
15,180
|
2.94
|
%
|
19,881
|
2.93
|
%
|
||||||||||||||||||||||||||
Collateralized residential
|
||||||||||||||||||||||||||||||||||||||||
mortgage obligations
|
-
|
-
|
-
|
-
|
1,470
|
2.25
|
%
|
21,185
|
2.23
|
%
|
22,655
|
2.23
|
%
|
|||||||||||||||||||||||||||
Corporate debt securities,
|
||||||||||||||||||||||||||||||||||||||||
primarily financial institutions
|
-
|
-
|
1,791
|
2.65
|
%
|
1,040
|
2.02
|
%
|
1,186
|
1.38
|
%
|
4,017
|
2.11
|
%
|
||||||||||||||||||||||||||
$
|
-
|
-
|
$
|
1,865
|
2.80
|
%
|
$
|
7,561
|
2.70
|
%
|
$
|
38,382
|
2.53
|
%
|
$
|
47,808
|
2.57
|
%
|
||||||||||||||||||||||
Investment securities held to maturity:
|
||||||||||||||||||||||||||||||||||||||||
Municipal securities
|
$
|
9,032
|
0.81
|
%
|
$
|
1,922
|
3.78
|
%
|
$
|
4,967
|
3.85
|
%
|
$
|
1,878
|
4.68
|
%
|
$
|
17,799
|
2.39
|
%
|
||||||||||||||||||||
GSE - Residential
|
||||||||||||||||||||||||||||||||||||||||
mortgage-backed securities
|
-
|
-
|
-
|
-
|
-
|
-
|
1,083
|
3.50
|
%
|
1,083
|
3.50
|
%
|
||||||||||||||||||||||||||||
Collateralized residential
|
||||||||||||||||||||||||||||||||||||||||
mortgage obligations
|
-
|
-
|
-
|
-
|
-
|
-
|
892
|
2.00
|
%
|
892
|
2.00
|
%
|
||||||||||||||||||||||||||||
Corporate debt securities
|
||||||||||||||||||||||||||||||||||||||||
primarily financial institutions
|
-
|
-
|
-
|
-
|
-
|
-
|
1,812
|
0.85
|
%
|
1,812
|
0.85
|
%
|
||||||||||||||||||||||||||||
$
|
9,032
|
0.81
|
%
|
$
|
1,922
|
3.78
|
%
|
$
|
4,967
|
3.85
|
%
|
$
|
5,665
|
2.81
|
%
|
$
|
21,586
|
2.30
|
%
|
December 31,
|
||||||||||||||||||||||||
2012
|
2011
|
2010
|
||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
(in thousands, except for percentages)
|
||||||||||||||||||||||||
Commercial and industrial
|
$ | 138,438 | 24.2% | $ | 136,869 | 25.8% | $ | 134,266 | 26.1% | |||||||||||||||
Real estate - construction
|
83,755 | 14.6% | 51,180 | 9.6% | 33,909 | 6.6% | ||||||||||||||||||
Real estate - commercial
|
288,060 | 50.4% | 270,688 | 51.0% | 262,996 | 51.2% | ||||||||||||||||||
Real estate - residential
|
20,875 | 3.6% | 19,201 | 3.6% | 21,473 | 4.2% | ||||||||||||||||||
Consumer
|
40,975 | 7.2% | 52,853 | 10.0% | 60,879 | 11.9% | ||||||||||||||||||
Unearned fees
|
(656 | ) | 0.0% | (661 | ) | 0.0% | (529 | ) | 0.0% | |||||||||||||||
Total loans
|
$ | 571,447 | 100.0% | $ | 530,130 | 100.0% | $ | 512,994 | 100.0% |
December 31,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
(in thousands, except for percentages)
|
||||||||||||||||
Commercial and industrial
|
$
|
126,794
|
24.7%
|
$
|
114,758
|
25.6%
|
||||||||||
Real estate - construction
|
74,133
|
14.4%
|
81,774
|
18.2%
|
||||||||||||
Real estate - commercial
|
228,818
|
44.5%
|
177,650
|
39.6%
|
||||||||||||
Real estate - residential
|
19,381
|
3.8%
|
19,860
|
4.4%
|
||||||||||||
Consumer
|
64,723
|
12.6%
|
55,009
|
12.2%
|
||||||||||||
Unearned fees
|
(450
|
)
|
0.0%
|
(271
|
)
|
0.0%
|
||||||||||
Total loans
|
$
|
513,399
|
100.0%
|
$
|
448,780
|
100.0%
|
As of December 31, 2012
|
Due within 1
year
|
Due 1–5 years
|
Due after 5
years
|
Total
|
||||||||||||
(in thousands)
|
||||||||||||||||
Commercial and industrial
|
$
|
59,082
|
$
|
44,100
|
$
|
35,256
|
$
|
138,438
|
||||||||
Real estate - construction
|
32,508
|
9,704
|
41,543
|
83,755
|
||||||||||||
Real estate - commercial
|
17,291
|
32,671
|
238,098
|
288,060
|
||||||||||||
Total
|
$
|
108,881
|
$
|
86,475
|
$
|
314,897
|
$
|
510,253
|
||||||||
Fixed rate loans
|
$
|
27,328
|
$
|
61,644
|
$
|
42,704
|
$
|
131,676
|
||||||||
Variable rate loans
|
81,553
|
24,831
|
272,193
|
378,577
|
||||||||||||
Total
|
$
|
108,881
|
$
|
86,475
|
$
|
314,897
|
$
|
510,253
|
Years ended December 31,
|
||||||||||||||||||||
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||
Non-Performing Assets:
|
||||||||||||||||||||
Non-Performing Loans:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
1,681
|
$
|
2,349
|
$
|
792
|
$
|
4,719
|
$
|
5,334
|
||||||||||
Real estate – construction
|
-
|
292
|
523
|
7,121
|
5,147
|
|||||||||||||||
Real estate – commercial
|
3,542
|
145
|
605
|
-
|
-
|
|||||||||||||||
Real estate – residential
|
263
|
263
|
-
|
-
|
-
|
|||||||||||||||
Consumer
|
1,986
|
2,191
|
3,729
|
2,311
|
2,477
|
|||||||||||||||
Total Non-Performing Loans
|
7,472
|
5,240
|
5,649
|
14,151
|
12,958
|
|||||||||||||||
Loans Past Due 90 days or More and Still Accruing
|
2
|
-
|
-
|
-
|
-
|
|||||||||||||||
Other Real Estate Owned
|
1,752
|
7,765
|
8,098
|
-
|
-
|
|||||||||||||||
Total Non-Performing Assets
|
$
|
9,226
|
$
|
13,005
|
$
|
13,747
|
$
|
14,151
|
$
|
12,958
|
||||||||||
Ratios:
|
||||||||||||||||||||
Non-Performing loans to total loans
|
1.31
|
%
|
0.99
|
%
|
1.10
|
%
|
2.76
|
%
|
2.89
|
%
|
||||||||||
Non-Performing assets to total assets
|
1.26
|
%
|
1.93
|
%
|
2.16
|
%
|
2.21
|
%
|
2.27
|
%
|
||||||||||
Troubled Debt Restructured Loans
|
$
|
9,551
|
$
|
7,579
|
$
|
5,435
|
$
|
4,717
|
$
|
-
|
Years ended December 31,
|
||||||||||||||||||||
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||
(in thousands, except for percentages)
|
||||||||||||||||||||
Balance at beginning of year
|
$
|
7,310
|
$
|
6,246
|
$
|
6,184
|
$
|
6,815
|
$
|
4,675
|
||||||||||
Provision charged to expense
|
1,380
|
2,205
|
3,100
|
2,205
|
2,301
|
|||||||||||||||
Recoveries of loans charged off:
|
||||||||||||||||||||
Commercial and industrial
|
18
|
1
|
78
|
4
|
-
|
|||||||||||||||
Real estate – construction
|
169
|
58
|
15
|
-
|
-
|
|||||||||||||||
Consumer
|
3
|
52
|
-
|
-
|
-
|
|||||||||||||||
Loans charged-off:
|
||||||||||||||||||||
Commercial and industrial
|
(552
|
)
|
(482
|
)
|
(1,061
|
)
|
(526
|
)
|
-
|
|||||||||||
Real estate – construction
|
(59
|
)
|
(82
|
)
|
(1,420
|
)
|
(2,012
|
)
|
(158
|
)
|
||||||||||
Real estate – residential
|
-
|
-
|
(150
|
)
|
-
|
-
|
||||||||||||||
Consumer
|
(285
|
)
|
(688
|
)
|
(500
|
)
|
(302
|
)
|
(3
|
)
|
||||||||||
Charge-offs, net
|
(706
|
)
|
(1,141
|
)
|
(3,038
|
)
|
(2,836
|
)
|
(161
|
)
|
||||||||||
Balance of allowance at end of year
|
$
|
7,984
|
$
|
7,310
|
$
|
6, 246
|
$
|
6,184
|
$
|
6,815
|
||||||||||
Ratio of net charge-offs to average
loans outstanding
|
0.13
|
%
|
0.22
|
%
|
0.59
|
%
|
0.59
|
%
|
0.04
|
|||||||||||
Balance of allowance at period-end
as a percent of loans at year end
|
1.40
|
%
|
1.38
|
%
|
1.22
|
%
|
1.20
|
%
|
1.52
|
%
|
||||||||||
Ratio of allowance at period-end to
non-performing loans
|
106.85
|
%
|
139.50
|
%
|
110.57
|
%
|
43.70
|
%
|
52.59
|
%
|
December 31,
|
||||||||||||||||||||||||||||||||||||
2012
|
2011
|
2010
|
||||||||||||||||||||||||||||||||||
Percent of
|
Percent of
|
Percent of
|
||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
Amount
|
Allowance
to total
allowance
|
Loans
to total
loans
|
Amount
|
Allowance
to total
allowance
|
Loans
to total
loans
|
Amount
|
Allowance
to total
allowance
|
Loans
to total
loans
|
|||||||||||||||||||||||||||
Balance applicable to :
|
||||||||||||||||||||||||||||||||||||
Commercial and industrial
|
$
|
1,837
|
23.0%
|
24.2%
|
$
|
2,448
|
33.5%
|
25.8%
|
$
|
2,081
|
33.3%
|
26.1%
|
||||||||||||||||||||||||
Real estate - construction
|
1,646
|
20.6%
|
14.6%
|
1,222
|
16.7%
|
9.6%
|
895
|
14.3%
|
6.6%
|
|||||||||||||||||||||||||||
Real estate - commercial
|
3,367
|
42.2%
|
50.4%
|
2,412
|
33.0%
|
51.0%
|
2,193
|
35.1%
|
51.2%
|
|||||||||||||||||||||||||||
Real estate - residential
|
217
|
2.7%
|
3.6%
|
256
|
3.5%
|
3.6%
|
276
|
4.4%
|
4.2%
|
|||||||||||||||||||||||||||
Consumer
|
811
|
10.2%
|
7.2%
|
880
|
12.0%
|
10.0%
|
793
|
12.7%
|
11.9%
|
|||||||||||||||||||||||||||
Unallocated
|
106
|
1.3%
|
0.0%
|
92
|
1.3%
|
0.0%
|
8
|
0.2%
|
0.0%
|
|||||||||||||||||||||||||||
Total
|
$
|
7,984
|
100.0%
|
100.0%
|
$
|
7,310
|
100.0%
|
100.0%
|
$
|
6,246
|
100.0%
|
100.0%
|
December 31,
|
||||||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||||||
Percent of
|
Percent of
|
|||||||||||||||||||||||
(dollars in thousands)
|
Amount
|
Allowance
to total
allowance
|
Loans
to total
loans
|
Amount
|
Allowance
to total
allowance
|
Loans
to total
loans
|
||||||||||||||||||
Balance applicable to :
|
||||||||||||||||||||||||
Commercial and industrial
|
$
|
1,974
|
31.9%
|
24.7%
|
$
|
1,769
|
26.0%
|
25.6%
|
||||||||||||||||
Real estate - construction
|
945
|
15.3%
|
14.4%
|
2,470
|
36.2%
|
18.2%
|
||||||||||||||||||
Real estate - commercial
|
2,495
|
40.4%
|
44.5%
|
1,617
|
23.8%
|
39.6%
|
||||||||||||||||||
Real estate - residential
|
126
|
2.0%
|
3.8%
|
146
|
2.1%
|
4.4%
|
||||||||||||||||||
Consumer
|
624
|
10.1%
|
12.6%
|
798
|
11.7%
|
12.2%
|
||||||||||||||||||
Unallocated
|
20
|
0.3%
|
0.0%
|
15
|
0.2%
|
0.0%
|
||||||||||||||||||
Total
|
$
|
6,184
|
100.0%
|
100.0%
|
$
|
6,815
|
100.0%
|
100.0%
|
Years ended December 31,
|
||||||||||||||||||||||||
2012
|
2011
|
2010
|
||||||||||||||||||||||
(dollars in thousands)
|
Average
Balance
|
Average
Rate
|
Average
Balance
|
Average
Rate
|
Average
Balance
|
Average
Rate
|
||||||||||||||||||
Non-interest bearing demand
|
$
|
96,967
|
-
|
$
|
86,687
|
-
|
$
|
78,052
|
-
|
|||||||||||||||
Interest-bearing demand (NOW)
|
69,063
|
0.43%
|
57,378
|
0.45%
|
48,638
|
0.61%
|
||||||||||||||||||
Savings deposits
|
217,879
|
0.74%
|
199,641
|
0.86%
|
199,380
|
1.11%
|
||||||||||||||||||
Money market deposits
|
83,140
|
0.38%
|
88,095
|
0.58%
|
99,659
|
0.89%
|
||||||||||||||||||
Time deposits
|
106,012
|
1.75%
|
116,331
|
1.89%
|
117,946
|
1.94%
|
||||||||||||||||||
Total
|
$
|
573,061
|
0.71%
|
$
|
548,132
|
0.85%
|
$
|
543,675
|
1.05%
|
December 31,
2012
|
||||
Due in three months or less
|
$
|
10,755
|
||
Due over three months through twelve months
|
13,883
|
|||
Due over one year through three years
|
17,394
|
|||
Due over three years
|
2,197
|
|||
Total certificates of deposit $100,000 and over
|
$
|
44,229
|
Rate
|
Original Term
|
Maturity
|
||||||||||||||||
(dollars in thousands)
|
At December 31,
|
|||||||||||||||||
Long-term debt:
|
2012
|
2011
|
2010
|
|||||||||||||||
Fixed Rate Note
|
$
|
7,500
|
$
|
7,500
|
$
|
7,500
|
3.97%
|
10 years
|
November 2017
|
|||||||||
Fixed Rate Note
|
1,500
|
1,500
|
1,500
|
1.67%
|
4 years
|
August 2014
|
||||||||||||
Fixed Rate Note
|
1,500
|
1,500
|
1,500
|
2.00%
|
5 years
|
August 2015
|
||||||||||||
Fixed Rate Note
|
1,500
|
1,500
|
1,500
|
2.41%
|
6 years
|
August 2016
|
||||||||||||
Fixed Rate Note
|
1,500
|
1,500
|
1,500
|
2.71%
|
7 years
|
August 2017
|
||||||||||||
$
|
13,500
|
$
|
13,500
|
$
|
13,500
|
3.18%
|
Years ended December 31,
|
||||||||||||
(dollars in thousands)
|
2012
|
2011
|
2010
|
|||||||||
Repurchase agreements:
|
||||||||||||
Balance at year-end
|
$
|
16,710
|
$
|
16,218
|
$
|
14,857
|
||||||
Average during the year
|
18,266
|
16,593
|
15,367
|
|||||||||
Maximum month-end balance
|
19,860
|
19,524
|
17,532
|
|||||||||
Weighted average rate during the year
|
0.59
|
%
|
0.71
|
%
|
1.07
|
%
|
||||||
Weighted average rate at year end
|
0.52
|
%
|
0.55
|
%
|
0.81
|
%
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
(dollars in thousands)
|
||||||||
Home equity lines of credit
|
$ | 26,415 | $ | 27,524 | ||||
Commitments to fund commercial real estate and construction loans
|
50,032 | 72,409 | ||||||
Commitments to fund commercial and industrial loans
|
46,458 | 56,272 | ||||||
Commercial and financial letters of credit
|
4,195 | 5,066 | ||||||
$ | 127,100 | $ | 161,271 |
Actual
|
For Capital Adequacy
Purposes
|
To be Well Capitalized under
Prompt Corrective Action
Provisions
|
||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
(dollars in thousands, except for percentages)
|
||||||||||||||||||
As of December 31, 2012
|
||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||
Community Partners Bancorp
|
$
|
80,835
|
13.28%
|
$ |
>48,696
|
>
8.00%
|
$
|
N/A
|
N/A
|
|||||||||
Two River Community Bank
|
80,773
|
13.27%
|
>48,695
|
>
8.00%
|
>60,869
|
>
10.00%
|
||||||||||||
Tier 1 capital (to risk-weighted assets)
|
||||||||||||||||||
Community Partners Bancorp
|
73,220
|
12.03%
|
>24,346
|
>
4.00%
|
N/A
|
N/A
|
||||||||||||
Two River Community Bank
|
73,159
|
12.02%
|
>24,346
|
>
4.00%
|
>36,519
|
>
6.00%
|
||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||
Community Partners Bancorp
|
73,220
|
10.36%
|
>28,270
|
>
4.00%
|
N/A
|
N/A
|
||||||||||||
Two River Community Bank
|
73,159
|
10.35%
|
>28,274
|
>
4.00%
|
>35,343
|
>
5.00%
|
||||||||||||
As of December 31, 2011
|
||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||
Community Partners Bancorp
|
$
|
75,444
|
13.26%
|
$ |
>45,517
|
>
8.00%
|
$
|
N/A
|
N/A
|
|||||||||
Two River Community Bank
|
75,340
|
13.25%
|
>45,488
|
>
8.00%
|
>56,860
|
>
10.00%
|
||||||||||||
Tier 1 capital (to risk-weighted assets)
|
||||||||||||||||||
Community Partners Bancorp
|
68,332
|
12.01%
|
>22,758
|
>
4.00%
|
N/A
|
N/A
|
||||||||||||
Two River Community Bank
|
68,229
|
12.00%
|
>22,743
|
>
4.00%
|
>34,115
|
>
6.00%
|
||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||
Community Partners Bancorp
|
68,332
|
10.39%
|
>26,307
|
>
4.00%
|
N/A
|
N/A
|
||||||||||||
Two River Community Bank
|
68,229
|
10.38%
|
>26,292
|
>
4.00%
|
>32,866
|
>
5.00%
|
Gradual change in interest rates
|
|||||||||||
December 31, 2012
|
200 basis point increase
|
200 basis point decrease
|
|||||||||
(dollars in thousands)
|
Dollar change
|
Percent of
change
|
Dollar change
|
Percent of
change
|
ALCO
Policy Guideline
|
||||||
Twelve month horizon:
|
|||||||||||
Net interest income change
|
$
|
(774)
|
-3.0%
|
$
|
(573)
|
-2.2%
|
-10.0%
|
Gradual change in interest rates
|
|||||||||||
December 31, 2011
|
200 basis point increase
|
200 basis point decrease
|
|||||||||
(dollars in thousands)
|
Dollar change
|
Percent of
change
|
Dollar change
|
Percent of
change
|
ALCO
Policy Guideline
|
||||||
Twelve month horizon:
|
|||||||||||
Net interest income change
|
$
|
(817)
|
-3.2%
|
$
|
(338)
|
-1.3%
|
-6.0%
|
Economic Value of Portfolio Equity
December 31, 2012
|
||||||||||||
Change in Interest Rates
(dollars in thousands)
|
Base Case
(0 bp)
|
-200bp
|
+200bp
|
ALCO
Policy
Guideline
|
||||||||
Economic Value of Equity
|
$85,997
|
$
|
76,448
|
$
|
84,256
|
|||||||
$ Change
|
(9,549
|
)
|
(1,741
|
)
|
||||||||
% Change to Present Value of Equity
|
-11.1
|
%
|
-2.0
|
%
|
-25.0% |
December 31, 2011
|
||||||||||||
Change in Interest Rates
(dollars in thousands)
|
Base Case
(0 bp)
|
-200bp
|
+200bp
|
ALCO
Policy
Guideline
|
||||||||
Economic Value of Equity
|
$79,322
|
$
|
69,763
|
$
|
78,345
|
|||||||
$ Change
|
(9,559
|
)
|
(977
|
)
|
||||||||
% Change to Present Value of Equity
|
-12.0
|
%
|
-1.2
|
%
|
-25.0% |
/s/ WILLIAM D. MOSS
|
/s/ A. RICHARD ABRAHAMIAN
|
|||
Name:
|
William D. Moss
|
Name:
|
A. Richard Abrahamian
|
|
Title:
|
President and Chief Executive Officer
|
Title:
|
Executive Vice President and Chief Financial Officer
|
|
Date:
|
March 29, 2013
|
Date:
|
March 29, 2013
|
|
Plan category
|
Number of securities
to be issued upon
exercise of outstanding
options, warrants and
rights
(a)
|
Weighted-average exercise
price of outstanding
options, warrants and
rights
(b)
|
Number of securities
remaining available for
future issuance under
equity compensation plans
(excluding securities
reflected in column (a))
(c)
|
Equity compensation plans
approved by security holders
|
921,605
|
$ 6.95
|
245,504 (1)
|
Equity compensation plans not
approved by security holders
|
-0-
|
N/A
|
-0-
|
Total
|
921,605
|
$ 6.95
|
245,504
|
|
(1)
|
The Company may issue these shares pursuant to options and restricted stock awards.
|
Page
|
||
F-2
|
||
F-3
|
||
F-4
|
||
F-5
|
||
F-6
|
||
F-7
|
||
F-8
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
(In Thousands, Except Share Data)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
15,349
|
$
|
7,597
|
||||
Interest-bearing deposits in bank
|
33,197
|
30,425
|
||||||
Cash and Cash Equivalents
|
48,546
|
38,022
|
||||||
Securities available for sale
|
50,756
|
47,455
|
||||||
Securities held to maturity (fair value of $21,935 and $13,222 at December 31, 2012
and December 31, 2011, respectively)
|
21,586
|
13,105
|
||||||
Restricted investments, at cost
|
3,040
|
2,237
|
||||||
Loans
|
571,447
|
530,130
|
||||||
Allowance for loan losses
|
(7,984
|
)
|
(7,310
|
)
|
||||
Net Loans
|
563,463
|
522,820
|
||||||
Other real estate owned
|
1,752
|
7,765
|
||||||
Bank-owned life insurance
|
13,457
|
12,998
|
||||||
Premises and equipment, net
|
3,243
|
2,640
|
||||||
Accrued interest receivable
|
1,884
|
1,928
|
||||||
Goodwill
|
18,109
|
18,109
|
||||||
Other intangible assets, net of accumulated amortization of $1,838
|
||||||||
and $1,675 at December 31, 2012 and December 31, 2011, respectively
|
268
|
431
|
||||||
Other assets
|
7,791
|
7,044
|
||||||
Total Assets
|
$
|
733,895
|
$
|
674,554
|
||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$
|
112,746
|
$
|
88,209
|
||||
Interest-bearing
|
494,024
|
465,703
|
||||||
Total Deposits
|
606,770
|
553,912
|
||||||
Securities sold under agreements to repurchase
|
16,710
|
16,218
|
||||||
Accrued interest payable
|
70
|
107
|
||||||
Long-term debt
|
13,500
|
13,500
|
||||||
Other liabilities
|
4,880
|
3,683
|
||||||
Total Liabilities
|
641,930
|
587,420
|
||||||
Shareholders’ Equity
|
||||||||
Preferred stock, no par value; 6,500,000 shares authorized;
|
||||||||
Preferred stock, Series B, none issued or outstanding
|
-
|
-
|
||||||
Preferred stock, Series C, $12,000,000 liquidation preference; 12,000 shares authorized; 12,000 issued
and outstanding at December 31, 2012 and December 31, 2011, respectively
|
12,000
|
12,000
|
||||||
Common stock, no par value; 25,000,000 shares authorized; 7,983,778 and 7,942,218
shares issued and outstanding at December 31, 2012 and December 31, 2011,
respectively
|
71,537
|
71,179
|
||||||
Retained earnings
|
8,060
|
3,693
|
||||||
Accumulated other comprehensive income
|
368
|
262
|
||||||
Total Shareholders’ Equity
|
91,965
|
87,134
|
||||||
Total Liabilities and Shareholders’ Equity
|
$
|
733,895
|
$
|
674,554
|
See notes to consolidated financial statements.
|
Years Ended December 31,
|
||||||||
2012
|
2011
|
|||||||
(In Thousands, Except Per Share Data)
|
||||||||
Interest Income
|
||||||||
Loans, including fees
|
$
|
29,192
|
$
|
29,409
|
||||
Securities:
|
||||||||
Taxable
|
1,167
|
1,170
|
||||||
Tax-exempt
|
398
|
364
|
||||||
Federal funds sold and interest bearing deposits
|
81
|
103
|
||||||
Total Interest Income
|
30,838
|
31,046
|
||||||
Interest Expense
|
||||||||
Deposits
|
4,077
|
4,687
|
||||||
Securities sold under agreements to repurchase
|
107
|
118
|
||||||
Borrowings
|
434
|
433
|
||||||
Total Interest Expense
|
4,618
|
5,238
|
||||||
Net Interest Income
|
26,220
|
25,808
|
||||||
Provision for Loan Losses
|
1,380
|
2,205
|
||||||
Net Interest Income after Provision for Loan Losses
|
24,840
|
23,603
|
||||||
Non-Interest Income
|
||||||||
Total other-than-temporary impairment losses
|
(85
|
)
|
-
|
|||||
Less: Portion included in other comprehensive income (pre-tax)
|
5
|
-
|
||||||
Net other-than-temporary impairment charges to earnings
|
(80
|
)
|
-
|
|||||
Service fees on deposit accounts
|
604
|
542
|
||||||
Other loan fees
|
773
|
499
|
||||||
Earnings from investment in life insurance
|
459
|
372
|
||||||
Net realized gain on sale of securities
|
118
|
324
|
||||||
Net gain on sale of SBA loans
|
187
|
101
|
||||||
Other income
|
566
|
506
|
||||||
Total Non-Interest Income
|
2,627
|
2,344
|
||||||
Non-Interest Expenses
|
||||||||
Salaries and employee benefits
|
10,915
|
10,539
|
||||||
Occupancy and equipment
|
3,200
|
3,205
|
||||||
Professional
|
754
|
851
|
||||||
Advertising
|
270
|
225
|
||||||
Data processing
|
748
|
641
|
||||||
Insurance
|
345
|
390
|
||||||
FDIC insurance and assessments
|
553
|
673
|
||||||
Outside service fees
|
508
|
422
|
||||||
Amortization of identifiable intangibles
|
163
|
201
|
||||||
OREO expenses, OREO impairment and sales, net
|
699
|
270
|
||||||
Loan workout expenses
|
240
|
166
|
||||||
Other operating
|
1,452
|
1,510
|
||||||
Total Non-Interest Expenses
|
19,847
|
19,093
|
||||||
Income before Income Taxes
|
7,620
|
6,854
|
||||||
Income Tax Expense
|
2,805
|
2,546
|
||||||
Net Income
|
$
|
4,815
|
$
|
4,308
|
||||
Preferred stock dividends and discount accretion
|
(448
|
)
|
(814
|
)
|
||||
Net income available to common shareholders
|
$
|
4,367
|
$
|
3,494
|
||||
Earnings Per Common Share
|
||||||||
Basic
|
$
|
0.55
|
$
|
0.44
|
||||
Diluted
|
$
|
0.54
|
$
|
0.44
|
Years Ended
December 31,
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
Net income
|
$
|
4,815
|
$
|
4,308
|
||||
Other comprehensive income (loss):
|
||||||||
Reclassification adjustment for gains on sales of securities recognized in income,
net of income tax benefit 2012: $47; 2011 $133
|
(71
|
)
|
(194
|
)
|
||||
Unrealized holdings gains on securities available for sale, net of
income tax 2012: $110; net of income tax 2011: $190
|
180
|
288
|
|
|||||
Unrealized loss on securities for which a portion of the
impairment has been recognized in income, net of income
tax benefit 2012: $34; 2011: $0
|
(51
|
)
|
-
|
|||||
Reclassification adjustment for other-than-temporary credit losses
on securities included in net income, net income tax 2012: $32;
2011: $0
|
48
|
-
|
||||||
Other comprehensive income
|
106
|
94
|
|
|||||
Total comprehensive income
|
$
|
4,921
|
$
|
4,402
|
Common Stock
|
||||||||||||||||||||||||
(Dollars in Thousands)
|
Preferred
Stock
|
Outstanding
Shares
|
Amount
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income
|
Total
Shareholders’
Equity
|
||||||||||||||||||
Balance, January 1, 2011
|
$
|
8,628
|
7,620,929
|
$
|
70,067
|
$
|
1,325
|
$
|
168
|
$
|
80,188
|
|||||||||||||
Net Income
|
-
|
-
|
-
|
4,308
|
-
|
4,308
|
||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
94
|
94
|
||||||||||||||||||
Preferred stock, Series C issued
|
12,000
|
-
|
-
|
-
|
-
|
12,000
|
||||||||||||||||||
Preferred stock, Series C issuance costs
|
-
|
-
|
-
|
(48
|
)
|
-
|
(48
|
)
|
||||||||||||||||
Redemption of preferred stock, Series A
|
(9,000
|
)
|
-
|
-
|
-
|
-
|
(9,000
|
)
|
||||||||||||||||
Redemption of preferred stock, Series A
|
||||||||||||||||||||||||
warrant
|
-
|
-
|
(460
|
)
|
-
|
-
|
(460
|
)
|
||||||||||||||||
Dividends on preferred stock, Series C
|
-
|
-
|
-
|
(180
|
)
|
-
|
(180
|
)
|
||||||||||||||||
Dividends on preferred stock, Series A
|
-
|
-
|
-
|
(262
|
)
|
-
|
(262
|
)
|
||||||||||||||||
Preferred stock, Series A discount accretion
|
372
|
-
|
-
|
(372
|
)
|
-
|
-
|
|||||||||||||||||
Common stock dividend – 3%
|
-
|
231,328
|
1,078
|
(1,078
|
)
|
-
|
-
|
|||||||||||||||||
Stock option compensation expense
|
-
|
-
|
154
|
-
|
-
|
154
|
||||||||||||||||||
Options exercised
|
-
|
83,138
|
267
|
-
|
-
|
267
|
||||||||||||||||||
Tax-benefit-exercised non-qualified stock
|
-
|
-
|
41
|
-
|
-
|
41
|
||||||||||||||||||
options
|
||||||||||||||||||||||||
Employee stock purchase program
|
-
|
6,823
|
32
|
-
|
-
|
32
|
||||||||||||||||||
Balance, December 31, 2011
|
$
|
12,000
|
7,942,218
|
$
|
71,179
|
$
|
3,693
|
$
|
262
|
$
|
87,134
|
|||||||||||||
Net income
|
-
|
-
|
-
|
4,815
|
-
|
4,815
|
||||||||||||||||||
Other comprehensive income
|
106
|
106
|
||||||||||||||||||||||
Dividends on preferred stock, Series C
|
-
|
-
|
-
|
(448
|
)
|
-
|
(448
|
)
|
||||||||||||||||
Stock based compensation expense
|
-
|
-
|
183
|
-
|
-
|
183
|
||||||||||||||||||
Options exercised
|
-
|
37,130
|
124
|
-
|
-
|
124
|
||||||||||||||||||
Tax-benefit-exercised non-qualified stock
|
||||||||||||||||||||||||
options
|
-
|
-
|
13
|
-
|
-
|
13
|
||||||||||||||||||
Restricted stock awards-forfeiture
|
-
|
(4,133
|
)
|
(8
|
)
|
-
|
-
|
(8
|
)
|
|||||||||||||||
Employee stock purchase program
|
-
|
8,563
|
46
|
-
|
-
|
46
|
||||||||||||||||||
Balance, December 31, 2012
|
$
|
12,000
|
7,983,778
|
$
|
71,537
|
$
|
8,060
|
$
|
368
|
$
|
91,965
|
Years Ended December 31,
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
Cash Flows from Operating Activities
|
||||||||
Net income
|
$
|
4,815
|
$
|
4,308
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
680
|
703
|
||||||
Provision for loan losses
|
1,380
|
2,205
|
||||||
Intangible amortization
|
163
|
201
|
||||||
Net amortization of securities premiums and discounts
|
284
|
178
|
||||||
Other-than-temporary impairment on securities available for sale
|
80
|
-
|
||||||
Net realized gain on sale of securities available for sale
|
(118
|
)
|
(324
|
)
|
||||
Deferred income taxes
|
(697
|
)
|
(478
|
)
|
||||
Earnings from investment in life insurance
|
(459
|
)
|
(372
|
)
|
||||
Net realized loss (gain) on sale of other real estate owned
|
197
|
(381
|
)
|
|||||
Impairment on property held for sale
|
-
|
100
|
||||||
Impairment on other real estate owned
|
360
|
275
|
||||||
Stock based compensation expense
|
175
|
154
|
||||||
Gain from sale of SBA loans
|
(187
|
)
|
(101
|
)
|
||||
Decrease (increase) in assets:
|
||||||||
Accrued interest receivable
|
44
|
(17
|
)
|
|||||
Other assets
|
(111
|
)
|
588
|
|||||
(Decrease) increase in liabilities:
|
||||||||
Accrued interest payable
|
(37
|
)
|
14
|
|||||
Other liabilities
|
1,197
|
(51
|
)
|
|||||
Net Cash Provided by Operating Activities
|
7,766
|
7,002
|
||||||
Cash Flows from Investing Activities
|
||||||||
Purchase of securities available for sale
|
(17,880
|
)
|
(30,212
|
)
|
||||
Purchase of securities held to maturity
|
(12,093
|
)
|
(5,993
|
)
|
||||
Proceeds from sales of securities available for sale
|
2,948
|
4,048
|
||||||
Proceeds from repayments and maturities of securities available for sale
|
11,575
|
14,096
|
||||||
Proceeds from repayments and maturities of securities held to maturity
|
3,589
|
3,706
|
||||||
Proceeds from sale of SBA loans
|
1,987
|
1,803
|
||||||
Purchase of restricted investments
|
(803
|
)
|
(817
|
)
|
||||
Net increase in loans
|
(44,348
|
)
|
(21,667
|
)
|
||||
Proceeds from the sale of other real estate owned
|
6,047
|
2,852
|
||||||
Improvements on other real estate owned
|
(66
|
)
|
(725
|
)
|
||||
Purchase of bank-owned life insurance
|
-
|
(3,452
|
)
|
|||||
Purchase of premises and equipment
|
(1,283
|
)
|
(254
|
)
|
||||
Net Cash Used in Investing Activities
|
(50,327
|
)
|
(36,615
|
)
|
||||
Cash Flows from Financing Activities
|
||||||||
Net increase in deposits
|
52,858
|
29,441
|
||||||
Net increase in securities sold under agreements to repurchase
|
492
|
1,361
|
||||||
Proceeds from issuance of preferred stock, Series C
|
-
|
12,000
|
||||||
Preferred stock, Series C, issuance costs
|
-
|
(48
|
)
|
|||||
Redemption of preferred stock, Series A
|
-
|
(9,000
|
)
|
|||||
Redemption of preferred stock, Series A warrants
|
-
|
(460
|
)
|
|||||
Cash dividends paid on preferred stocks
|
(448
|
)
|
(442
|
)
|
||||
Proceeds from employee stock purchase plan
|
46
|
32
|
||||||
Proceeds from exercise of stock options
|
124
|
267
|
||||||
Tax benefit of stock options exercised
|
13
|
41
|
||||||
Net Cash Provided by Financing Activities
|
53,085
|
33,192
|
||||||
Net Increase in Cash and Cash Equivalents
|
10,524
|
3,579
|
||||||
Cash and Cash Equivalents – Beginning
|
38,022
|
34,443
|
||||||
Cash and Cash Equivalents – Ending
|
$
|
48,546
|
$
|
38,022
|
||||
Supplementary Cash Flows Information
|
||||||||
Interest paid
|
$
|
4,655
|
$
|
5,224
|
||||
Income taxes paid
|
$
|
3,270
|
$
|
3,302
|
||||
Supplementary schedule of non-cash activities:
|
||||||||
Other real estate acquired in settlement of loans
|
$
|
525
|
$
|
1,688
|
A.
|
Organization and Basis of Presentation
|
B.
|
Nature of Operations
|
C.
|
Estimates
|
D.
|
Significant Concentrations of Credit Risk
|
E.
|
Comprehensive Income
|
F.
|
Statement of Cash Flows
|
G.
|
Securities
|
H.
|
Restricted Investments
|
I.
|
Loans Receivable
|
J.
|
Allowance for Loan Losses
|
|
1.
|
The loan’s observable market price;
|
|
2.
|
The fair value of the underlying collateral; or
|
|
3.
|
The present value (PV) of expected future cash flows.
|
|
1.
|
Changes in lending policy and procedures, including changes in underwriting standards and collection practices not previously considered in estimating credit losses.
|
|
2.
|
Changes in relevant economic and business conditions.
|
|
3.
|
Changes in nature and volume of the loan portfolio and in the terms of loans.
|
|
4.
|
Changes in experience, ability and depth of lending management and staff.
|
|
5.
|
Changes in the volume and severity of past due loans, the volume of non-accrual loans and the volume and severity of adversely classified loans.
|
|
6.
|
Changes in the quality of the loan review system.
|
|
7.
|
Changes in the value of underlying collateral for collateral-dependent loans.
|
|
8.
|
The existence and effect of any concentration of credit and changes in the level of such concentrations.
|
|
9.
|
The effect of other external forces such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing portfolio.
|
K.
|
Transfers of Financial Assets
|
L.
|
Other Real Estate Owned
|
M.
|
Bank-Owned Life Insurance
|
N.
|
Bank Premises and Equipment
|
O.
|
Advertising
|
P.
|
Income Taxes
|
Q.
|
Off-Balance Sheet Financial Instruments
|
R.
|
Earnings per Common Share
|
S.
|
Stock-Based Compensation
|
T.
|
Reclassification
|
U.
|
Goodwill and Other Intangible Assets
|
V.
|
Segment Reporting
|
W.
|
Subsequent Events
|
X.
|
Recent Accounting Pronouncements
|
December 31, 2012:
|
||||||||||||||||||||
Gross
|
Gross
Unrealized Losses
|
|||||||||||||||||||
Amortized
Cost
|
Unrealized
Gains
|
Noncredit
OTTI
|
Other
|
Fair
Value
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||
Municipal securities
|
$
|
1,255
|
55
|
$
|
-
|
$
|
-
|
$
|
1,310
|
|||||||||||
U.S. Government-sponsored enterprises (“GSE”) -
Residential mortgage-backed securities
|
19,881
|
505
|
-
|
(12
|
)
|
20,374
|
||||||||||||||
Collateralized residential mortgage obligations
|
22,655
|
342
|
-
|
(1
|
)
|
22,996
|
||||||||||||||
Corporate debt securities, primarily financial
institutions |
4,017
|
49
|
(164
|
)
|
(247
|
)
|
3,655
|
|||||||||||||
47,808
|
951
|
(164
|
)
|
(260
|
)
|
48,335
|
||||||||||||||
Community Reinvestment Act (“CRA”)
mutual fund
|
2,344
|
77
|
-
|
-
|
2,421
|
|||||||||||||||
$
|
50,152
|
$
|
1,028
|
$
|
(164
|
)
|
$
|
(260
|
)
|
$
|
50,756
|
|||||||||
Securities held to maturity:
|
||||||||||||||||||||
Municipal securities
|
$
|
17,799
|
$
|
619
|
$
|
-
|
$
|
(4
|
)
|
$
|
18,414
|
|||||||||
GSE - Residential mortgage-backed securities
|
1,083
|
12
|
-
|
-
|
1,095
|
|||||||||||||||
Collateralized residential mortgage obligations
|
892
|
2
|
-
|
-
|
894
|
|||||||||||||||
Corporate debt securities, primarily financial
institutions |
1,812
|
-
|
-
|
(280
|
)
|
1,532
|
||||||||||||||
$
|
21,586
|
$
|
633
|
$
|
-
|
$
|
(284
|
)
|
$
|
21,935
|
December 31, 2011:
|
||||||||||||||||||||
Gross
|
Gross
Unrealized Losses
|
|||||||||||||||||||
Amortized
Cost
|
Unrealized
Gains
|
Noncredit
OTTI
|
Other
|
Fair
Value
|
||||||||||||||||
Securities available for sale:
|
(In Thousands)
|
|||||||||||||||||||
U.S. Government agency securities
|
$
|
2,250
|
$
|
8
|
$
|
-
|
$
|
-
|
$
|
2,258
|
||||||||||
Municipal securities
|
1,261
|
46
|
-
|
-
|
1,307
|
|||||||||||||||
GSE - Residential mortgage-backed securities
|
21,317
|
581
|
-
|
(20
|
)
|
21,878
|
||||||||||||||
Collateralized residential mortgage obligations
|
16,865
|
298
|
-
|
-
|
17,163
|
|||||||||||||||
Corporate debt securities, primarily financial
institutions |
3,067
|
-
|
(183
|
)
|
(356
|
)
|
2,528
|
|||||||||||||
44,760
|
933
|
(183
|
)
|
(376
|
)
|
45,134
|
||||||||||||||
CRA mutual fund
|
2,258
|
63
|
-
|
-
|
2,321
|
|||||||||||||||
$
|
47,018
|
$
|
996
|
$
|
(183
|
)
|
$
|
(376
|
)
|
$
|
47,455
|
|||||||||
Securities held to maturity:
|
||||||||||||||||||||
Municipal securities
|
$
|
11,296
|
$
|
613
|
$
|
-
|
$
|
(2
|
)
|
$
|
11,907
|
|||||||||
Corporate debt securities, primarily financial
institutions |
1,809
|
-
|
-
|
(494
|
)
|
1,315
|
||||||||||||||
$
|
13,105
|
$
|
613
|
$
|
-
|
$
|
(496
|
)
|
$
|
13,222
|
Available for Sale
|
Held to Maturity
|
|||||||||||||||
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Due in one year or less
|
$
|
-
|
$
|
-
|
$
|
9,032
|
$
|
9,034
|
||||||||
Due in one year through five years
|
1,791
|
1,805
|
1,922
|
2,049
|
||||||||||||
Due in five years through ten years
|
1,464
|
1,485
|
4,967
|
5,211
|
||||||||||||
Due after ten years
|
2,017
|
1,675
|
3,690
|
3,652
|
||||||||||||
5,272
|
4,965
|
19,611
|
19,946
|
|||||||||||||
GSE - Residential mortgage-backed securities
|
19,881
|
20,374
|
1,083
|
1,095
|
||||||||||||
Collateralized residential mortgage obligations
|
22,655
|
22,996
|
892
|
894
|
||||||||||||
$
|
47,808
|
$
|
48,335
|
$
|
21,586
|
$
|
21,935
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
December 31, 2012:
|
(In Thousands)
|
|||||||||||||||||||||||
Municipal securities
|
$
|
2,222
|
$
|
(4
|
)
|
$
|
-
|
$
|
-
|
$
|
2,222
|
$
|
(4
|
)
|
||||||||||
GSE – Residential mortgage-backed securities
|
2,320
|
(12
|
)
|
-
|
-
|
2,320
|
(12
|
)
|
||||||||||||||||
Collateralized residential mortgage obligations
|
4,184
|
(1
|
)
|
-
|
-
|
4,184
|
(1
|
)
|
||||||||||||||||
Corporate debt securities, primarily financial
institutions
|
-
|
-
|
2,805
|
(691
|
)
|
2,805
|
(691
|
)
|
||||||||||||||||
Total Temporarily
Impaired Securities
|
$
|
8,726
|
$
|
(17
|
)
|
$
|
2,805
|
$
|
(691
|
)
|
$
|
11,531
|
$
|
(708
|
)
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
December 31, 2011:
|
(In Thousands)
|
|||||||||||||||||||||||
Municipal securities
|
$
|
969
|
$
|
(2
|
)
|
$
|
-
|
$
|
-
|
$
|
969
|
$
|
(2
|
)
|
||||||||||
GSE – Residential mortgage-backed securities
|
3,490
|
(20
|
)
|
-
|
-
|
3,490
|
(20
|
)
|
||||||||||||||||
Corporate debt securities, primarily financial
institutions
|
1,252
|
(50
|
)
|
2,591
|
(983
|
)
|
3,843
|
(1,033
|
)
|
|||||||||||||||
Total Temporarily
Impaired Securities
|
$
|
5,711
|
$
|
(72
|
)
|
$
|
2,591
|
$
|
(983
|
)
|
$
|
8,302
|
$
|
(1,055
|
)
|
Beginning balance, January 1, 2011
|
$
|
228
|
||
Additional increases to the amount related to the credit loss
|
||||
for which an other-than-temporary impairment was
|
||||
previously recognized
|
-
|
|||
Ending balance, December 31, 2011
|
228
|
|||
Additional increases to the amount related to the credit loss
|
||||
for which an other-than-temporary impairment was
|
||||
previously recognized
|
80
|
|||
Ending balance, December 31, 2012
|
$
|
308
|
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
Commercial and industrial
|
$
|
138,438
|
$
|
136,869
|
||||
Real estate – construction
|
83,755
|
51,180
|
||||||
Real estate – commercial
|
288,060
|
270,688
|
||||||
Real estate – residential
|
20,875
|
19,201
|
||||||
Consumer
|
40,975
|
52,853
|
||||||
572,103
|
530,791
|
|||||||
Allowance for loan losses
|
(7,984
|
)
|
(7,310
|
)
|
||||
Unearned fees
|
(656
|
)
|
(661
|
)
|
||||
Net Loans
|
$
|
563,463
|
$
|
522,820
|
December 31, 2012:
|
Loans
|
|||||||||||||||||||||||||||
Receivable
|
||||||||||||||||||||||||||||
(In Thousands)
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
Greater
than 90
|
Total Past
Due
|
Current
|
Total Loans
Receivable
|
>90 Days and
Accruing
|
|||||||||||||||||||||
Commercial and industrial
|
$
|
350
|
$
|
2,132
|
$
|
1,681
|
$
|
4,163
|
$
|
134,275
|
$
|
138,438
|
$
|
-
|
||||||||||||||
Real estate – construction
|
-
|
324
|
-
|
324
|
83,431
|
83,755
|
-
|
|||||||||||||||||||||
Real estate – commercial
|
2,609
|
231
|
3,542
|
6,382
|
281,678
|
288,060
|
-
|
|||||||||||||||||||||
Real estate – residential
|
590
|
-
|
263
|
853
|
20,022
|
20,875
|
-
|
|||||||||||||||||||||
Consumer
|
201
|
-
|
1,988
|
2,189
|
38,786
|
40,975
|
2
|
|||||||||||||||||||||
Total
|
$
|
3,750
|
$
|
2,687
|
$
|
7,474
|
$
|
13,911
|
$
|
558,192
|
$
|
572,103
|
$
|
2
|
December 31, 2011:
|
Loans
|
|||||||||||||||||||||||||||
Receivable
|
||||||||||||||||||||||||||||
(In Thousands)
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
Greater
than 90
|
Total Past
Due
|
Current
|
Total Loans
Receivable
|
>90 Days and
Accruing
|
|||||||||||||||||||||
Commercial and industrial
|
$
|
538
|
$
|
1,776
|
$
|
2,349
|
$
|
4,663
|
$
|
132,206
|
$
|
136,869
|
$
|
-
|
||||||||||||||
Real estate – construction
|
-
|
-
|
292
|
292
|
50,888
|
51,180
|
-
|
|||||||||||||||||||||
Real estate – commercial
|
5,499
|
-
|
145
|
5,644
|
265,044
|
270,688
|
-
|
|||||||||||||||||||||
Real estate – residential
|
-
|
998
|
263
|
1,261
|
17,940
|
19,201
|
-
|
|||||||||||||||||||||
Consumer
|
375
|
50
|
2,191
|
2,616
|
50,237
|
52,853
|
-
|
|||||||||||||||||||||
Total
|
$
|
6,412
|
$
|
2,824
|
$
|
5,240
|
$
|
14,476
|
$
|
516,315
|
$
|
530,791
|
$
|
-
|
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
Commercial and industrial
|
$
|
1,681
|
$
|
2,349
|
||||
Real estate – construction
|
-
|
292
|
||||||
Real estate – commercial
|
3,542
|
145
|
||||||
Real estate – residential
|
263
|
263
|
||||||
Consumer
|
1,986
|
2,191
|
||||||
Total
|
$
|
7,472
|
$
|
5,240
|
December 31, 2012:
|
Recorded
Investment,
Net of
Charge-offs
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||
(In Thousands)
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
4,774
|
$
|
4,774
|
$
|
-
|
$
|
4,905
|
$
|
193
|
||||||||||
Real estate – construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Real estate – commercial
|
4,971
|
4,971
|
-
|
5,003
|
138
|
|||||||||||||||
Real estate – residential
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Consumer
|
352
|
352
|
-
|
361
|
16
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
1,140
|
$
|
1,140
|
$
|
295
|
$
|
1,185
|
$
|
138
|
||||||||||
Real estate – construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Real estate – commercial
|
4,121
|
4,121
|
470
|
4,170
|
206
|
|||||||||||||||
Real estate – residential
|
263
|
263
|
60
|
263
|
-
|
|||||||||||||||
Consumer
|
1,780
|
1,780
|
233
|
1,794
|
-
|
|||||||||||||||
Total:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
5,914
|
$
|
5,914
|
$
|
295
|
$
|
6,090
|
$
|
331
|
||||||||||
Real estate – construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Real estate – commercial
|
9,092
|
9,092
|
470
|
9,173
|
344
|
|||||||||||||||
Real estate – residential
|
263
|
263
|
60
|
263
|
-
|
|||||||||||||||
Consumer
|
2,132
|
2,132
|
233
|
2,155
|
16
|
|||||||||||||||
$
|
17,401
|
$
|
17,401
|
$
|
1,058
|
$
|
17,681
|
$
|
691
|
December 31, 2011:
|
Recorded
Investment,
Net of
Charge-offs
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||
(In Thousands)
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
3,423
|
$
|
3,423
|
$
|
-
|
$
|
3,436
|
$
|
139
|
||||||||||
Real estate – construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Real estate – commercial
|
3,510
|
3,510
|
-
|
3,529
|
160
|
|||||||||||||||
Real estate – residential
|
225
|
225
|
-
|
225
|
4
|
|||||||||||||||
Consumer
|
251
|
251
|
-
|
251
|
8
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
2,914
|
$
|
3,161
|
$
|
928
|
$
|
2,876
|
$
|
55
|
||||||||||
Real estate – construction
|
292
|
292
|
63
|
414
|
20
|
|||||||||||||||
Real estate – commercial
|
4,228
|
4,228
|
188
|
4,265
|
244
|
|||||||||||||||
Real estate – residential
|
263
|
263
|
15
|
263
|
5
|
|||||||||||||||
Consumer
|
1,938
|
1,938
|
254
|
1,938
|
-
|
|||||||||||||||
Total:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
6,337
|
$
|
6,584
|
$
|
928
|
$
|
6,312
|
$
|
194
|
||||||||||
Real estate – construction
|
292
|
292
|
63
|
414
|
20
|
|||||||||||||||
Real estate – commercial
|
7,738
|
7,738
|
188
|
7,794
|
404
|
|||||||||||||||
Real estate – residential
|
488
|
488
|
15
|
488
|
9
|
|||||||||||||||
Consumer
|
2,189
|
2,189
|
254
|
2,189
|
8
|
|||||||||||||||
$
|
17,044
|
$
|
17,291
|
$
|
1,448
|
$
|
17,197
|
$
|
635
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
December 31, 2012:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
119,195
|
$
|
7,196
|
$
|
12,047
|
$
|
-
|
$
|
138,438
|
||||||||||
Real estate – construction
|
78,119
|
1,443
|
4,193
|
-
|
83,755
|
|||||||||||||||
Real estate – commercial
|
267,768
|
4,648
|
15,644
|
-
|
288,060
|
|||||||||||||||
Real estate – residential
|
20,507
|
-
|
368
|
-
|
20,875
|
|||||||||||||||
Consumer
|
38,394
|
140
|
2,441
|
-
|
40,975
|
|||||||||||||||
Total:
|
$
|
523,983
|
$
|
13,427
|
$
|
34,693
|
$
|
-
|
$
|
572,103
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
December 31, 2011:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
119,531
|
$
|
4,683
|
$
|
12,655
|
$
|
-
|
$
|
136,869
|
||||||||||
Real estate – construction
|
50,346
|
-
|
834
|
-
|
51,180
|
|||||||||||||||
Real estate – commercial
|
255,877
|
4,300
|
10,511
|
-
|
270,688
|
|||||||||||||||
Real estate – residential
|
18,938
|
-
|
263
|
-
|
19,201
|
|||||||||||||||
Consumer
|
49,973
|
144
|
2,736
|
-
|
52,853
|
|||||||||||||||
Total:
|
$
|
494,665
|
$
|
9,127
|
$
|
26,999
|
$
|
-
|
$
|
530,791
|
Allowance for Credit Losses
|
Commercial
and
Industrial
|
Real Estate -
Commercial
|
Real Estate -
Construction
|
Real Estate –
Residential
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Beginning balance,
January 1, 2012
|
$
|
2,448
|
$
|
2,412
|
$
|
1,222
|
$
|
256
|
$
|
880
|
$
|
92
|
$
|
7,310
|
||||||||||||||
Charge-offs
|
(552
|
)
|
-
|
(59
|
)
|
-
|
(285
|
)
|
-
|
(896
|
)
|
|||||||||||||||||
Recoveries
|
18
|
-
|
169
|
-
|
3
|
-
|
190
|
|||||||||||||||||||||
Provision
|
(77
|
)
|
955
|
314
|
(39
|
)
|
213
|
14
|
1,380
|
|||||||||||||||||||
Ending balance,
December 31, 2012
|
$
|
1,837
|
$
|
3,367
|
$
|
1,646
|
$
|
217
|
$
|
811
|
$
|
106
|
$
|
7,984
|
Allowance for Credit Losses
|
Commercial
and
Industrial
|
Real Estate -
Commercial
|
Real Estate -
Construction
|
Real Estate -
Residential
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Beginning balance,
January 1, 2011
|
$
|
2,081
|
$
|
2,193
|
$
|
895
|
$
|
276
|
$
|
793
|
$
|
8
|
$
|
6,246
|
||||||||||||||
Charge-offs
|
(482
|
)
|
-
|
(82
|
)
|
-
|
(688
|
)
|
-
|
(1,252
|
)
|
|||||||||||||||||
Recoveries
|
1
|
-
|
58
|
-
|
52
|
-
|
111
|
|||||||||||||||||||||
Provision
|
848
|
219
|
351
|
(20
|
)
|
723
|
84
|
2,205
|
||||||||||||||||||||
Ending balance,
December 31, 2011
|
$
|
2,448
|
$
|
2,412
|
$
|
1,222
|
$
|
256
|
$
|
880
|
$
|
92
|
$
|
7,310
|
Allowance for Loan Losses
|
Loans Receivable
|
|||||||||||||||||||||||
December 31, 2012:
|
Balance
|
Balance
Related to
Loans
Individually
Evaluated
for
Impairment
|
Balance
Related to
Loans
Collectively
Evaluated
for
Impairment
|
Balance
|
Balance
Individually
Evaluated for
Impairment
|
Balance
Collectively
Evaluated for
Impairment
|
||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
Commercial and industrial
|
$
|
1,837
|
$
|
295
|
$
|
1,542
|
$
|
138,438
|
$
|
5,914
|
$
|
132,524
|
||||||||||||
Real estate – construction
|
1,646
|
-
|
1,646
|
83,755
|
-
|
83,755
|
||||||||||||||||||
Real estate – commercial
|
3,367
|
470
|
2,897
|
288,060
|
9,092
|
278,968
|
||||||||||||||||||
Real estate – residential
|
217
|
60
|
157
|
20,875
|
263
|
20,612
|
||||||||||||||||||
Consumer
|
811
|
233
|
578
|
40,975
|
2,132
|
38,843
|
||||||||||||||||||
Unallocated
|
106
|
-
|
106
|
-
|
-
|
-
|
||||||||||||||||||
Total:
|
$
|
7,984
|
$
|
1,058
|
$
|
6,926
|
$
|
572,103
|
$
|
17,401
|
$
|
554,702
|
Allowance for Loan Losses
|
Loans Receivable
|
|||||||||||||||||||||||
December 31, 2011:
|
Balance
|
Balance
Related to
Loans
Individually
Evaluated
for
Impairment
|
Balance
Related to
Loans
Collectively
Evaluated
for
Impairment
|
Balance
|
Balance
Individually
Evaluated for
Impairment
|
Balance
Collectively
Evaluated for
Impairment
|
||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
Commercial and industrial
|
$
|
2,448
|
$
|
928
|
$
|
1,520
|
$
|
136,869
|
$
|
6,337
|
$
|
130,532
|
||||||||||||
Real estate – construction
|
1,222
|
63
|
1,159
|
51,180
|
292
|
50,888
|
||||||||||||||||||
Real estate – commercial
|
2,412
|
188
|
2,224
|
270,688
|
7,738
|
262,950
|
||||||||||||||||||
Real estate – residential
|
256
|
15
|
241
|
19,201
|
488
|
18,713
|
||||||||||||||||||
Consumer
|
880
|
254
|
626
|
52,853
|
2,189
|
50,664
|
||||||||||||||||||
Unallocated
|
92
|
-
|
92
|
-
|
-
|
-
|
||||||||||||||||||
Total:
|
$
|
7,310
|
$
|
1,448
|
$
|
5,862
|
$
|
530,791
|
$
|
17,044
|
$
|
513,747
|
December 31, 2012
|
||||||||||||
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
||||||||||
Troubled Debt Restructuring:
|
(Dollars in Thousands)
|
|||||||||||
Commercial and industrial
|
4
|
$
|
2,167
|
$
|
2,142
|
|||||||
Real estate – construction
|
-
|
-
|
-
|
|||||||||
Real estate – commercial
|
2
|
279
|
277
|
|||||||||
Real estate – residential
|
-
|
-
|
-
|
|||||||||
Consumer
|
1
|
155
|
146
|
|||||||||
Total
|
7
|
$
|
2,601
|
$
|
2,565
|
December 31, 2011
|
||||||||||||
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
||||||||||
Troubled Debt Restructuring:
|
(Dollars in Thousands)
|
|||||||||||
Commercial and industrial
|
2
|
$
|
374
|
$
|
361
|
|||||||
Real estate – construction
|
-
|
-
|
-
|
|||||||||
Real estate – commercial
|
1
|
2,630
|
2,626
|
|||||||||
Real estate – residential
|
-
|
-
|
-
|
|||||||||
Consumer
|
-
|
-
|
-
|
|||||||||
Total
|
3
|
$
|
3,004
|
$
|
2,987
|
As of December 31, 2012
|
||||||||
Troubled Debt Restructuring That Subsequently Defaulted:
|
Number of
Contracts
|
Recorded
Investment
|
||||||
(Dollars in Thousands)
|
||||||||
Commercial and industrial
|
- | $ | - | |||||
Real estate – construction
|
- | - | ||||||
Real estate – commercial
|
1 | 476 | ||||||
Real estate – residential
|
- | - | ||||||
Consumer
|
- | - | ||||||
Total
|
1 | $ | 476 |
As of December 31, 2011
|
||||||||
Troubled Debt Restructuring That Subsequently Defaulted:
|
Number of
Contracts
|
Recorded
Investment
|
||||||
(Dollars in Thousands)
|
||||||||
Commercial and industrial
|
- | $ | - | |||||
Real estate – construction
|
- | - | ||||||
Real estate – commercial
|
- | - | ||||||
Real estate – residential
|
- | - | ||||||
Consumer
|
2 | 252 | ||||||
Total
|
2 | $ | 252 |
Estimated
Useful Lives
|
2012
|
2011
|
|||||||
(In Thousands)
|
|||||||||
Land
|
Indefinite
|
$
|
400
|
$
|
400
|
||||
Buildings
|
30 years
|
899
|
899
|
||||||
Leasehold improvements
|
5-15 years
|
4,516
|
4,281
|
||||||
Furniture and equipment
|
2 - 7 years
|
7,490
|
6,442
|
||||||
13,305
|
12,022
|
||||||||
Less accumulated depreciation and amortization
|
(10,062
|
)
|
(9,382
|
)
|
|||||
$
|
3,243
|
$
|
2,640
|
2013
|
$
|
124
|
||
2014
|
86
|
|||
2015
|
48
|
|||
2016
|
10
|
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
Demand, non-interest bearing
|
$
|
112,746
|
$
|
88,209
|
||||
Demand, interest bearing, money market and savings
|
394,317
|
352,025
|
||||||
Time, $100,000 and over
|
44,229
|
52,794
|
||||||
Time, other
|
55,478
|
60,884
|
||||||
$
|
606,770
|
$
|
553,912
|
2013
|
$
|
52,519
|
||
2014
|
26,514
|
|||
2015
|
11,320
|
|||
2016
|
3,830
|
|||
2017
|
3,393
|
|||
Thereafter
|
2,131
|
|||
$
|
99,707
|
2012
|
2011
|
||||||||
(Dollars In Thousands)
|
|||||||||
Repurchase agreements:
|
|||||||||
Balance at year-end
|
$ | 16,710 | $ | 16,218 | |||||
Average during the year
|
18,266 | 16,593 | |||||||
Maximum month-end balance
|
19,860 | 19,524 | |||||||
Weighted average rate during the year
|
0.59 | % | 0.71 | % | |||||
Weighted average rate at December 31
|
0.52 | % | 0.55 | % |
2012
|
2011
|
Rate |
Original Term
|
Maturity
|
|||||||||||
(Dollars In Thousands)
|
|||||||||||||||
Fixed Rate Note
|
$
|
7,500
|
$
|
7,500
|
3.97%
|
10 years
|
November 2017
|
||||||||
Fixed Rate Note
|
1,500
|
1,500
|
1.67%
|
4 years
|
August 2014
|
||||||||||
Fixed Rate Note
|
1,500
|
1,500
|
2.00%
|
5 years
|
August 2015
|
||||||||||
Fixed Rate Note
|
1,500
|
1,500
|
2.41%
|
6 years
|
August 2016
|
||||||||||
Fixed Rate Note
|
1,500
|
1,500
|
2.71%
|
7 years
|
August 2017
|
||||||||||
$
|
13,500
|
$
|
13,500
|
3.18%
|
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
Current
|
$
|
3,502
|
$
|
3,024
|
||||
Deferred
|
(697
|
)
|
(478
|
)
|
||||
$
|
2,805
|
$
|
2,546
|
2012
|
2011
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
(Dollars In Thousands)
|
||||||||||||||||
Pre-tax book income
|
$
|
2,591
|
34.0
|
%
|
$
|
2,330
|
34.0
|
%
|
||||||||
Tax exempt interest
|
(168
|
)
|
(2.2
|
)
|
(124
|
)
|
(1.8
|
)
|
||||||||
Bank-owned life insurance income
|
(156
|
)
|
(2.0
|
)
|
(126
|
)
|
(1.8
|
)
|
||||||||
State income taxes, net of federal income
tax benefit |
419
|
5.5
|
379
|
5.5
|
||||||||||||
Other
|
119
|
1.5
|
87
|
1.2
|
||||||||||||
$
|
2,805
|
36.8
|
%
|
$
|
2,546
|
37.1
|
%
|
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
Deferred tax assets:
|
||||||||
Allowance for loan losses
|
$
|
3,210
|
$
|
2,940
|
||||
Depreciation and amortization
|
1,541
|
1,460
|
||||||
Deferred compensation
|
128
|
25
|
||||||
Other real estate owned (“OREO”) write-downs
|
327
|
183
|
||||||
Other
|
194
|
162
|
||||||
5,400
|
4,770
|
|||||||
Deferred tax liabilities:
|
||||||||
Purchase accounting adjustments
|
(333
|
)
|
(402
|
)
|
||||
Unrealized gain on investment securities available for sale
|
(237
|
)
|
(176
|
)
|
||||
Other
|
(247
|
)
|
(245
|
)
|
||||
(817
|
)
|
(823
|
)
|
|||||
Net Deferred Tax Asset
|
$
|
4,583
|
$
|
3,947
|
Years Ended December 31,
|
||||||||
2012
|
2011
|
|||||||
(In Thousands, Except Per Share Data)
|
||||||||
Net income
|
$
|
4,815
|
$
|
4,308
|
||||
Preferred stock dividends and discount accretion
|
(448
|
)
|
(814
|
)
|
||||
Net income applicable to common shareholders
|
$
|
4,367
|
$
|
3,494
|
||||
Weighted average common shares outstanding
|
7,950
|
7,900
|
||||||
Effect of dilutive securities, stock options
|
174
|
115
|
||||||
Weighted average common shares outstanding used to calculate
diluted earnings per share
|
8,124
|
8,015
|
||||||
Basic earnings per common share
|
$
|
0.55
|
$
|
0.44
|
||||
Diluted earnings per common share
|
$
|
0.54
|
$
|
0.44
|
2013
|
$
|
1,223
|
||
2014
|
1,240
|
|||
2015
|
1,215
|
|||
2016
|
1,197
|
|||
2017
|
1,493
|
|||
Thereafter
|
3,360
|
|||
$
|
9,728
|
|
·
|
The Company granted to directors non-qualified stock options to purchase an aggregate of 61,800 shares of Company common stock. These options are scheduled to vest 20% per year over five years beginning December 12, 2012. These options were granted with an exercise price of $5.19 per share based upon the $4.69 trading price of Company’s common stock on the grant date.
|
|
·
|
The Company granted to employees incentive stock options to purchase an aggregate of 71,379 shares of Company common stock. These options are scheduled to vest 20% per year over five years beginning December 12, 2012. The options were granted with an exercise price of $5.19 per share based upon the $4.69 trading price of Company’s common stock on the grant date.
|
Number of
Shares
|
Weighted
Average
Price
|
Weighted
Average
Remaining
Contractual
Life
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Options outstanding, December 31, 2011
|
917,581 | $ | 6.82 | |||||||||||||
Options granted
|
68,400 | 5.50 | ||||||||||||||
Options exercised
|
(37,130 | ) | 3.34 | |||||||||||||
Options forfeited
|
(27,246 | ) | 3.91 | |||||||||||||
Options outstanding, December 31, 2012
|
921,605 | $ | 6.95 | 4.9 years | $ | 911,624 | ||||||||||
Options exercisable, end of year
|
610,593 | $ | 8.23 | 3.3 years | $ | 552,848 | ||||||||||
Options price range at end of year
|
$3.01 to $14.17 |
Options Outstanding
|
|||||||||
Range of Exercise Prices
|
Number
Outstanding
at December
31, 2012
|
Weighted-
Average
Remaining
Contractual
Life
|
Weighted-
Average
Exercise
Price
|
||||||
$3.01 - $3.91
|
373,275
|
6.0 years
|
$
|
3.35
|
|||||
$4.39 - $4.94
|
14,156
|
4.8 years
|
4.39
|
||||||
$5.01 - $5.95
|
195,153
|
9.2 years
|
5.30
|
||||||
$6.11 - $6.38
|
563
|
0.8 years
|
6.27
|
||||||
$7.23 - $7.95
|
1,095
|
1.3 years
|
7.39
|
||||||
$8.13 - $9.86
|
61,664
|
0.2 years
|
8.27
|
||||||
$11.17 - $14.17
|
275,699
|
1.2 years
|
12.83
|
||||||
921,605
|
Dividend yield
|
0.00
|
%
|
||
Expected volatility
|
29.39
|
%
|
||
Risk-free interest rate
|
1.06
|
%
|
||
Forfeiture rate
|
5.00
|
%
|
||
Expected life
|
7.5 years
|
|||
Fair value of options granted
|
$
|
1.87
|
Dividend yield
|
0.00
|
%
|
||
Expected volatility
|
29.97
|
%
|
||
Risk-free interest rate
|
1.18
|
%
|
||
Forfeiture rate
|
0.00
|
%
|
||
Expected life
|
7.5 years
|
|||
Fair value of options granted
|
$
|
1.94
|
Dividend yield
|
0.00
|
%
|
||
Expected volatility
|
30.82
|
%
|
||
Risk-free interest rate
|
1.40
|
%
|
||
Forfeiture rate
|
0.00
|
%
|
||
Expected life
|
7.5 years
|
|||
Fair value of options granted
|
$
|
2.09
|
Dividend yield
|
0.00
|
%
|
||
Expected volatility
|
30.58
|
%
|
||
Risk-free interest rate
|
1.45
|
%
|
||
Forfeiture rate
|
5.00
|
%
|
||
Expected life
|
7.5 years
|
|||
Fair value of options granted
|
$
|
1.53
|
Number of Shares
|
Weighted
Average Price
|
|||||||
Unvested at December 31, 2010
|
22,042
|
$
|
3.93
|
|||||
Granted
|
-
|
-
|
||||||
Unvested at December 31, 2011
|
22,042
|
$
|
3.93
|
|||||
Forfeited
|
(4,133
|
)
|
3.93
|
|||||
Unvested at December 31, 2012
|
17,909
|
$
|
3.93
|
Actual
|
For Capital Adequacy
Purposes
|
To be Well Capitalized under
Prompt Corrective Action
Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
As of December 31, 2012
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Community Partners Bancorp
|
$ |
80,835
|
13.28
|
%
|
$ |
>48,696
|
>
8.00
|
%
|
$ |
N/A
|
N/A
|
|||||||||||||
Two River Community Bank
|
80,773
|
13.27
|
%
|
>48,695
|
>
8.00
|
%
|
>60,869
|
>
10.00
|
%
|
|||||||||||||||
Tier 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Community Partners Bancorp
|
73,220
|
12.03
|
%
|
>24,346
|
>
4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Two River Community Bank
|
73,159
|
12.02
|
%
|
>24,346
|
>
4.00
|
%
|
>36,519
|
>
6.00
|
%
|
|||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||
Community Partners Bancorp
|
73,220
|
10.36
|
%
|
>28,270
|
>
4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Two River Community Bank
|
73,159
|
10.35
|
%
|
>28,274
|
>
4.00
|
%
|
>35,343
|
>
5.00
|
%
|
|||||||||||||||
As of December 31, 2011
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Community Partners Bancorp
|
$ |
75,444
|
13.26
|
%
|
$ |
>45,517
|
>
8.00
|
%
|
$ |
N/A
|
N/A
|
|||||||||||||
Two River Community Bank
|
75,340
|
13.25
|
%
|
>45,488
|
>
8.00
|
%
|
>56,860
|
>
10.00
|
%
|
|||||||||||||||
Tier 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Community Partners Bancorp
|
68,332
|
12.01
|
%
|
>22,758
|
>
4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Two River Community Bank
|
68,229
|
12.00
|
%
|
>22,743
|
>
4.00
|
%
|
>34,115
|
>
6.00
|
%
|
|||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||
Community Partners Bancorp
|
68,332
|
10.39
|
%
|
>26,307
|
>
4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Two River Community Bank
|
68,229
|
10.38
|
%
|
>26,292
|
>
4.00
|
%
|
>32,866
|
>
5.00
|
%
|
|
Level 1
:
|
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
|
|
Level 2
:
|
Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.
|
|
Level 3
:
|
Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity).
|
Description
|
(Level 1)
Quoted Prices
in Active
Markets for
Identical
Assets
|
(Level 2)
Significant
Other
Observable
Inputs
|
(Level 3)
Significant
Unobservable
Inputs
|
Total
|
||||||||||||
(In Thousands)
|
||||||||||||||||
At December 31, 2012
|
||||||||||||||||
Securities available for sale:
|
||||||||||||||||
Municipal securities
|
$
|
-
|
$
|
1,310
|
$
|
-
|
$
|
1,310
|
||||||||
GSE: Residential mortgage-backed
securities
|
-
|
20,374
|
-
|
20,374
|
||||||||||||
Collateralized residential mortgage
obligations
|
22,996
|
-
|
22,996
|
|||||||||||||
Corporate debt securities, primarily financial
institutions
|
-
|
3,627
|
28
|
3,655
|
||||||||||||
CRA mutual fund
|
2,421
|
-
|
-
|
2,421
|
||||||||||||
Total
|
$
|
2,421
|
$
|
48,307
|
$
|
28
|
$
|
50,756
|
||||||||
At December 31, 2011
|
||||||||||||||||
Securities available for sale:
|
||||||||||||||||
U.S. Government agency securities
|
$
|
-
|
$
|
2,258
|
$
|
-
|
$
|
2,258
|
||||||||
Municipal securities
|
-
|
1,307
|
-
|
1,307
|
||||||||||||
GSE: Residential mortgage-backed
securities
|
-
|
21,878
|
-
|
21,878
|
||||||||||||
Collateralized residential mortgage
obligations
|
17,163
|
-
|
17,163
|
|||||||||||||
Corporate debt securities, primarily financial
institutions
|
-
|
2,439
|
89
|
2,528
|
||||||||||||
CRA mutual fund
|
2,321
|
-
|
-
|
2,321
|
||||||||||||
Total
|
$
|
2,321
|
$
|
45,045
|
$
|
89
|
$
|
47,455
|
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
|
||||||||
Securities available for sale
|
||||||||
December 31, 2012
|
December 31, 2011
|
|||||||
(In Thousands)
|
||||||||
Beginning balance January 1
|
$
|
89
|
$
|
29
|
||||
Total gains/(losses):
|
||||||||
Included in earnings
|
(80
|
)
|
-
|
|||||
Included in other comprehensive income
|
19
|
60
|
||||||
Ending Balance
|
$
|
28
|
$
|
89
|
Description
|
(Level 1)
Quoted Prices
in Active
Markets for
Identical
Assets
|
(Level 2)
Significant
Other
Observable
Inputs
|
(Level 3)
Significant
Unobservable
Inputs
|
Total
|
||||||||||||
(In Thousands)
|
||||||||||||||||
At December 31, 2012
|
||||||||||||||||
Impaired loans
|
$
|
-
|
$
|
-
|
$
|
6,246
|
$
|
6,246
|
||||||||
Other real estate owned
|
-
|
-
|
1,752
|
1,752
|
||||||||||||
At December 31, 2011
|
||||||||||||||||
Impaired loans
|
$
|
-
|
$
|
-
|
$
|
8,187
|
$
|
8,187
|
||||||||
Other real estate owned
|
-
|
-
|
7,765
|
7,765
|
||||||||||||
Property held for sale
|
-
|
-
|
1,000
|
1,000
|
|
·
|
Impaired loans
– Impaired loans measured at fair value are those loans
in which the Company has measured impairment generally based on the fair value of the loan’s collateral. This method of fair value measurement is used on all of the Company’s impaired loans. Fair value is generally determined based upon either independent third party appraisals of the properties or discounted cash flows based upon the expected proceeds. The appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The discount range for appraisal values range from 0.0% to 5.0% (weighted average of 1.5%), and liquidation expenses range from 2.2% to 13.6% (weighted average of 6.7%). These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.
|
|
·
|
Other Real Estate Owned (“OREO”)
– Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and carried at fair value less cost to sell. Fair value is based upon the appraised value of the collateral, adjusted by management for factors such as economic conditions and other market factors. The discount range for collateral adjustment to OREO ranges from 3.5% to 8.5% (weighted average of 5.7%). These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement. At December 31, 2012, properties totaling $1,752,000 as compared to $7,765,000 at December 31, 2011, were acquired through foreclosure and are carried at fair value less estimated selling costs based on current appraisals.
|
|
·
|
Property held for sale –
This real estate property is carried in other assets as property held for sale at fair value based upon the appraised value of the property.
|
Fair Value Measurements at December 31, 2012
|
||||||||||||||||||||
(in thousands)
|
Carrying
Amount
|
Estimated
Fair
Value
|
(Level 1)
Quoted Prices
in Active
Markets for
Identical
Assets
|
(Level 2)
Significant
Other
Observable
Inputs
|
(Level 3)
Significant
Unobservable
Inputs
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
48,546
|
$
|
48,546
|
$
|
48,546
|
$
|
-
|
$
|
-
|
||||||||||
Securities available for sale
|
50,756
|
50,756
|
2,421
|
48,307
|
28
|
|||||||||||||||
Securities held to maturity
|
21,586
|
21,935
|
-
|
21,935
|
-
|
|||||||||||||||
Restricted investments
|
3,040
|
3,040
|
-
|
-
|
3,040
|
|||||||||||||||
Loans receivable
|
563,463
|
565,653
|
-
|
-
|
565,653
|
|||||||||||||||
Accrued interest receivable
|
1,884
|
1,884
|
-
|
237
|
1,647
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
606,770
|
608,329
|
-
|
608,329
|
-
|
|||||||||||||||
Securities sold under agreements to repurchase
|
16,710
|
16,710
|
-
|
16,710
|
-
|
|||||||||||||||
Long-term debt
|
13,500
|
14,921
|
-
|
14,921
|
-
|
|||||||||||||||
Accrued interest payable
|
70
|
70
|
-
|
70
|
-
|
|||||||||||||||
Off-balance sheet financial instruments:
|
||||||||||||||||||||
Commitments to extend credit and outstanding
letters of credit
|
-
|
-
|
-
|
-
|
-
|
2011
|
||||||||
Carrying
Amount
|
Estimated
Fair
Value
|
|||||||
(in thousands)
|
||||||||
Financial assets:
|
||||||||
Cash and cash equivalents
|
$
|
38,022
|
$
|
38,022
|
||||
Securities available for sale
|
47,455
|
47,455
|
||||||
Securities held to maturity
|
13,105
|
13,222
|
||||||
Restricted investments
|
2,237
|
2,237
|
||||||
Loans receivable
|
522,820
|
516,174
|
||||||
Accrued interest receivable
|
1,928
|
1,928
|
||||||
Financial liabilities:
|
||||||||
Deposits
|
553,912
|
556,442
|
||||||
Securities sold under agreements to repurchase
|
16,218
|
16,218
|
||||||
Long-term debt
|
13,500
|
14,950
|
||||||
Accrued interest payable
|
107
|
107
|
||||||
Off-balance sheet financial instruments:
|
||||||||
Commitments to extend credit and outstanding
letters of credit
|
-
|
-
|
Dividend Rate Following Investment Date
|
||||||
Increase in Qualified Small Business Lending
from the Baseline
|
First 9
Quarters*
|
Quarter 10
to Year 4.5
|
After Year
4.5
|
|||
0% or less
|
5%
|
7%
|
9%
|
|||
More than 0%, but less than 2.5%
|
5%
|
5%
|
9%
|
|||
2.5% or more, but less than 5%
|
4%
|
4%
|
9%
|
|||
5% or more, but less than 7.5%
|
3%
|
3%
|
9%
|
|||
7.5% or more, but less than 10%
|
2%
|
2%
|
9%
|
|||
10% or more
|
1%
|
1%
|
9%
|
* For the first nine quarters, the dividend rate will be adjusted quarterly.
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
114
|
$
|
190
|
||||
Investments in subsidiaries
|
91,904
|
87,031
|
||||||
Other assets
|
25
|
39
|
||||||
Total assets
|
$
|
92,043
|
$
|
87,260
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Other liabilities
|
$
|
78
|
$
|
126
|
||||
Shareholders’ equity
|
91,965
|
87,134
|
||||||
Total liabilities and shareholders’ equity
|
$
|
92,043
|
$
|
87,260
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
Other operating expenses
|
$
|
175
|
$
|
152
|
||||
Loss before income taxes
|
(175
|
)
|
(152
|
)
|
||||
Income tax expense
|
2
|
2
|
||||||
Loss before undistributed income of subsidiaries
|
(177
|
)
|
(154
|
)
|
||||
Equity in undistributed income of subsidiaries
|
4,992
|
4,462
|
||||||
Net income
|
$
|
4,815
|
$
|
4,308
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
4,815
|
$
|
4,308
|
||||
Adjustments to reconcile net income
to net cash provided by operating
activities:
|
||||||||
Equity in undistributed net income of subsidiaries
|
(4,992
|
)
|
(4,462
|
)
|
||||
Stock option compensation expense
|
175
|
154
|
||||||
Other, net
|
191
|
578
|
||||||
Net cash provided by operating activities
|
189
|
578
|
||||||
Cash flows from investing activities:
|
||||||||
Contributions to subsidiary, net
|
-
|
(3,000
|
)
|
|||||
Net cash used in investing activities
|
-
|
(3,000
|
)
|
|||||
Cash flows from financing activities:
|
||||||||
Proceeds from exercise of stock options
|
124
|
267
|
||||||
Tax benefit of stock options exercised
|
13
|
41
|
||||||
Proceeds from issuance of preferred stock, Series C
|
-
|
12,000
|
||||||
Preferred stock, Series C issuance costs
|
-
|
(48
|
)
|
|||||
Redemption of preferred stock, Series A
|
-
|
(9,000
|
)
|
|||||
Redemption of preferred stock, Series A warrants
|
-
|
(460
|
)
|
|||||
Proceeds from employee stock purchase program
|
46
|
32
|
||||||
Cash dividends paid on preferred stocks
|
(448
|
)
|
(442
|
)
|
||||
Net cash (used in) provided by financing activities
|
(265
|
)
|
2,390
|
|||||
Decrease in cash and cash equivalents
|
(76
|
)
|
(32
|
)
|
||||
Cash and cash equivalents at beginning of period
|
190
|
222
|
||||||
Cash and cash equivalents at end of year
|
$
|
114
|
$
|
190
|
2012
|
||||||||||||||||
Fourth Quarter
|
Third Quarter
|
Second Quarter
|
First Quarter
|
|||||||||||||
Interest income
|
$
|
7,762
|
$
|
7,739
|
$
|
7,609
|
$
|
7,728
|
||||||||
Interest expense
|
1,113
|
1,126
|
1,157
|
1,222
|
||||||||||||
Net interest income
|
6,649
|
6,613
|
6,452
|
6,506
|
||||||||||||
Provision for loan losses
|
430
|
330
|
270
|
350
|
||||||||||||
Net interest income after provision for loan losses
|
6,219
|
6,283
|
6,182
|
6,156
|
||||||||||||
Non-interest income
|
702
|
597
|
760
|
568
|
||||||||||||
Non-interest expense
|
4,963
|
4,919
|
5,063
|
4,902
|
||||||||||||
Income before income taxes
|
1,958
|
1,961
|
1,879
|
1,822
|
||||||||||||
Income taxes
|
718
|
727
|
693
|
667
|
||||||||||||
Net income
|
1,240
|
1,234
|
1,186
|
1,155
|
||||||||||||
Preferred stock dividends
|
(130
|
)
|
(31
|
)
|
(150
|
)
|
(137
|
)
|
||||||||
Net income available to common shareholders
|
$
|
1,110
|
$
|
1,203
|
$
|
1,036
|
$
|
1,018
|
||||||||
Per common share data:
|
||||||||||||||||
Basic earnings
|
$
|
0.14
|
$
|
0.15
|
$
|
0.13
|
$
|
0.13
|
||||||||
Diluted earnings
|
$
|
0.14
|
$
|
0.15
|
$
|
0.13
|
$
|
0.13
|
2011
|
||||||||||||||||
Fourth Quarter
|
Third Quarter
|
Second Quarter
|
First Quarter
|
|||||||||||||
Interest income
|
$
|
7,739
|
$
|
7,819
|
$
|
7,843
|
$
|
7,645
|
||||||||
Interest expense
|
1,276
|
1,302
|
1,348
|
1,312
|
||||||||||||
Net interest income
|
6,463
|
6,517
|
6,495
|
6,333
|
||||||||||||
Provision for loan losses
|
350
|
730
|
600
|
525
|
||||||||||||
Net interest income after provision for loan losses
|
6,113
|
5,787
|
5,895
|
5,808
|
||||||||||||
Non-interest income
|
522
|
899
|
868
|
436
|
||||||||||||
Non-interest expense
|
4,716
|
4,920
|
5,052
|
4,786
|
||||||||||||
Income before income taxes
|
1,919
|
1,766
|
1,711
|
1,458
|
||||||||||||
Income taxes
|
717
|
661
|
633
|
535
|
||||||||||||
Net income
|
1,202
|
1,105
|
1,078
|
923
|
||||||||||||
Preferred stock dividends & discount accretion
|
(126
|
)
|
(402
|
)
|
(143
|
)
|
(143
|
)
|
||||||||
Net income available to common shareholders
|
$
|
1,076
|
$
|
703
|
$
|
935
|
$
|
780
|
||||||||
Per common share data:
|
||||||||||||||||
Basic earnings
|
$
|
0.14
|
$
|
0.09
|
$
|
0.12
|
$
|
0.10
|
||||||||
Diluted earnings
|
$
|
0.13
|
$
|
0.09
|
$
|
0.12
|
$
|
0.10
|
COMMUNITY PARTNERS BANCORP
|
|||
Date: March 29, 2013
|
By:
|
/s/ WILLIAM D. MOSS
|
|
William D. Moss
|
|||
President and Chief Executive Officer
|
|||
Signature
|
Capacity
|
Date
|
||
/s/ FRANK J. PATOCK, JR.
|
Chairman of the Board
|
March 29, 2013
|
||
Frank J. Patock, Jr.
|
||||
/s/ CHARLES T. PARTON
|
Vice Chairman of the Board
|
March 29, 2013
|
||
Charles T. Parton
|
||||
/s/ JAMES M. BOLLERMAN
|
Director
|
March 29, 2013
|
||
James M. Bollerman
|
||||
/s/ ROBERT E. GREGORY
|
Director
|
March 29, 2013
|
||
Robert E. Gregory
|
||||
/s/ ROBERT B. GROSSMAN, MD
|
Director
|
March 29, 2013
|
||
Robert B. Grossman, MD
|
||||
/s/ JOHN E. HOLOBINKO, ESQ.
|
Director
|
March 29, 2013
|
||
John E. Holobinko, ESQ.
|
||||
/s/ WILLIAM F. LaMORTE
|
Director
|
March 29, 2013
|
||
William F. LaMorte
|
||||
/s/ JOSEPH F.X. O’SULLIVAN
|
Director
|
March 29, 2013
|
||
Joseph F.X. O’Sullivan
|
||||
/s/ JOHN J. PERRI, JR. CPA
|
Director
|
March 29, 2013
|
||
John J. Perri, Jr. CPA
|
||||
/s/ WILLIAM STATTER
|
Director
|
March 29, 2013
|
||
William Statter
|
||||
/s/ ANDREW A. VITALE, CPA
|
Director
|
March 29, 2013
|
||
Andrew A. Vitale, CPA
|
||||
/s/ ROBIN ZAGER
|
Director
|
March 29, 2013
|
||
Robin Zager
|
/s/ WILLIAM D. MOSS
|
President, Chief Executive Officer, Director
|
March 29, 2013
|
||
William D. Moss
|
||||
/s/ A. RICHARD ABRAHAMIAN
|
Executive Vice President, Chief Financial Officer
|
March 29, 2013
|
||
A Richard Abrahamian
|
(Principal Financial and Accounting Officer)
|
|||
Exhibit
No.
|
Description
|
||
3.1
|
Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant’s Registration Statement on Form S-3 (File No. 333-182855) filed with the SEC on July 26, 2012)
|
||
3.2
|
By-laws of the Registrant, as amended (incorporated by reference to Exhibit 3.2 to the Registrant’s Quarterly Report on Form 10-Q (File No. 000-51889) for the quarterly period ended September 30, 2011 filed with the SEC on November 10, 2011)
|
||
4.1
|
Specimen certificate representing the Registrant’s common stock, no par value per share (incorporated by reference to Exhibit 4.1 to the Registrant’s Registration Statement on Form S-4/A filed with the SEC on January 6, 2006 (the “January S-4/A”))
|
||
4.2
|
Specimen certificate representing the Registrant’s Senior Non-Cumulative Perpetual Stock, Series C, without par value (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on August 12, 2011)
|
||
4.3
|
Shareholder Rights Agreement, dated as of July 20, 2011, by and between the Registrant and Registrar and Transfer Company (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on July 26, 2011)
|
||
4.4
|
Form of Rights Certificate of the Registrant (incorporated by reference to Exhibit B to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on July 26, 2011)
|
||
10.0
|
#
|
Community Partners Bancorp Employee Stock Purchase Plan (incorporated by reference to Exhibit 4.3 to the Registrant’s Registration Statement on Form S-8 filed with the SEC on February 18, 2011).
|
|
10.1
|
#
|
Supplemental Executive Retirement Agreement between Two River Community Bank and William D. Moss (incorporated by reference to Exhibit 10.5 to the S-4)
|
|
10.2
|
#
|
Supplemental Executive Retirement Agreement between Two River Community Bank and Alan Turner (incorporated by reference to Exhibit 10.8 to the S-4)
|
|
10.3
|
#
|
Two River Community Bank 2003 Incentive Stock Option Plan (incorporated by reference to Exhibit 10.9 to the S-4)
|
|
10.4
|
#
|
Two River Community Bank 2003 Non-qualified Stock Option Plan (incorporated by reference to Exhibit 10.10 to the S-4)
|
|
10.5
|
Services agreement between Two River Community Bank and Phoenix International Ltd., Inc. dated November 18, 1999, and subsequent amendment #1 dated February 1, 2005 (incorporated by reference to Exhibit 10.24 to the S-4)
|
||
10.6
|
Remote processing services agreement between Harland Financial Solutions, Inc. and Two River Community Bank, dated February 27, 2006
|
||
10.7
|
#
|
Community Partners Bancorp 2007 Equity Incentive Plan (incorporated by reference to Exhibit A to the Registrant’s Definitive Proxy Statement on Schedule 14A filed with the SEC on April 17, 2007)
|
|
10.8
|
Form of Incentive Stock Option Agreement under 2007 Equity Incentive Plan
|
||
10.9
|
Form of Non-qualified Stock Option Agreement under 2007 Equity Incentive Plan
|
10.10
|
Securities Purchase Agreement, effective August 11, 2011, between the Registrant and the United States Department of the Treasury (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on August 12, 2011)
|
||
10.11
|
#
|
First Amendment to the Two River Community Bank Supplemental Executive Retirement Agreement dated July 7, 2005 by and between Two River Community Bank and William D. Moss, effective as of January 1, 2005 (incorporated by reference to Exhibit 10.13 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009 filed with the SEC on May 15, 2009)
|
|
10.12
|
#
|
First Amendment to the Two River Community Bank Supplemental Executive Retirement Agreement dated January 1, 2005 by and between Two River Community Bank and Alan B. Turner, effective as of January 1, 2005 (incorporated by reference to Exhibit 10.20 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009 filed with the SEC on May 15, 2009)
|
|
10.13
|
#
|
Employment Agreement, effective as of May 28, 2010, by and between Community Partners Bancorp, Two River Community Bank and William D. Moss (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010 filed with SEC on August 16, 2010)
|
|
10.14
|
#
|
First Amendment to Employment Agreement, effective as of July 22, 2010, by and between Community Partners Bancorp, Two River Community Bank and William D. Moss (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010 filed with SEC on August 16, 2010)
|
10.15
|
#
|
Change in Control Agreement, effective as of June 1, 2010, by and between Community Partners Bancorp, Two River Community Bank and Alan B. Turner (incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010 filed with SEC on August 16, 2010)
|
|
10.16
|
#
|
First Amendment to Change in Control Agreement, effective as of July 22, 2010, by and between Community Partners Bancorp, Two River Community Bank and Alan B. Turner (incorporated by reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010 filed with SEC on August 16, 2010)
|
|
10.17
|
#
|
Second Amendment to the Two River Community Bank Supplemental Executive Retirement Agreement dated March 1, 2010 by and between Two River Community Bank and Alan Turner
|
|
10.18
|
#
|
Second Amendment to the Two River Community Bank Supplemental Executive Retirement Agreement dated June 11, 2010 by and between Two River Community Bank and William D. Moss, effective as of June 1, 2010(incorporated by reference to Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010 filed with SEC on August 16, 2010)
|
|
10.19
|
#
|
Third Amendment to the Two River Community Bank Supplemental Executive Retirement Agreement dated June 11, 2010 by and between Two River Community Bank and Alan B. Turner, effective as of June 1, 2010(incorporated by reference to Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010 filed with SEC on August 16, 2010)
|
|
10.20
|
#
|
Change in Control Agreement, effective as of July 20, 2010, by and between Community Partners Bancorp, Two River Community Bank and A. Richard Abrahamian (incorporated by reference to Exhibit 10.7 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010 filed with SEC on August 16, 2010)
|
|
10.21
|
#
|
Restricted Stock Agreement, dated as of September 30, 2010, by and between Community Partners Bancorp, Two River Community Bank and William D. Moss and supplemented effective October 20, 2010 (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010 filed with SEC on November 15, 2010)
|
|
10.22
|
#
|
Form of Restricted Stock Agreement (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010 filed with SEC on November 15, 2010)
|
|
10.23
|
#
|
Change in Control Agreement, effective as of April 20, 2011, by and between Community Partners Bancorp, Two River Community Bank and Robert C. Werner (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with SEC on April 21, 2011)
|
10.24
|
#
|
Two River Community Bank 2012 Incentive Bonus Program (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012 filed with SEC on August 14, 2012)
|
|||
21
|
*
|
Subsidiaries of the Registrant
|
|||
23
|
*
|
Consent of Independent Registered Public Accounting Firm
|
|||
31.1
|
*
|
Certification of William D. Moss, President and Chief Executive Officer of the Registrant, pursuant to Securities Exchange Act Rule 13a-14(a)
|
|||
31.2
|
*
|
Certification of A. Richard Abrahamian, Chief Financial Officer of the Registrant, pursuant to Securities Exchange Act Rule 13a-14(a)
|
|||
32
|
*
|
Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, signed by William D. Moss, President and Chief Executive Officer of the Registrant, and A. Richard Abrahamian, Chief Financial Officer of the Registrant
|
|||
101.INS**
|
XBRL Instance Document
|
||||
101.SCH**
|
XBRL Taxonomy Extension Schema
|
||||
101.CAL**
|
XBRL Taxonomy Extension Calculation Linkbase
|
||||
101.DEF**
|
XBRL Taxonomy Extension Definition Linkbase
|
||||
101.LAB**
|
XBRL Taxonomy Extension Label Linkbase
|
||||
101.PRE**
|
XBRL Taxonomy Extension Presentation Linkbase
|
* Filed herewith.
|
|||
** Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability. |
HARLAND FINANCIAL SOLUTIONS, INC. | TWO RIVER COMMUNITY BANK | ||||
By: | /s/ W. Zayas | By: | /s/ Michael J. Gormley | ||
Name: | W. Zayas | Name: | Michael J. Gormley | ||
Title: | SVP + G.M. | Title: | EVP CFO | ||
Date: | 3/3/06 | Date: | 2/27/2006 |
|
1.
|
In
Section 2.13
, HFS agrees that any change to the Services shall not materially decrease or fundamentally alter any deliverables of the Services provided hereunder.
|
|
2.
|
In
Section 4.4
:
|
|
§
|
In the second sentence of the first paragraph is replaced with the following:
|
|
§
|
With respect to the second paragraph describing instances in which fee increases may exceed the percentage set forth in the immediately preceding section, HFS agrees that any such increases will not exceed 30% of the then-current applicable recurring fee(s) listed in Schedule 1.
|
|
3.
|
The parties agree that the limitations of
Section 8.1
and
Section 8.2
shall not apply to the extent that damages are the result of the gross negligence or willful misconduct of HFS.
|
|
4.
|
Section 9.1
is deleted in its entirety, and replaced with the following:
|
|
5.
|
The fifth sentence of
Section 9.2
, describing the location for dispute resolution, is deleted and replaced with the following:
|
CUSTOMER: | HFS: | |||||
Two River Community Bank | Harland Financial Solutions, Inc. | |||||
BY: | /s/ Michael J. Gormley | BY: | /s/ W. Zayas | |||
NAME: | Michael J. Gormley | NAME: | W. Zayas | |||
TITLE: | EVP CFO | TITLE: | SVP + G.M. | |||
DATE: | 2/27/2006 | EFFECTIVE DATE: | 3/3/06 | |||
1250 Highway 35 South
Middletown, NJ 07748
|
400 SW Sixth Avenue
Portland, OR 97204
|
A.
|
Recurring Charges
. Commencing the month the Live Date occurs and for each month thereafter during the term of the Agreement, Customer agrees to pay the fees set forth in this Section 1:
|
|
1)
|
Live Date
.
On the Live Date, Customer shall pay to HFS the following payments, which amounts are due and payable to HFS on the Live Date:
|
|
(i)
|
a Monthly Asset Value Payment (as defined below) prorated for the number of days remaining in the then current month; and
|
|
(ii)
|
a Monthly Asset Value Payment, which shall be applied by HFS towards the actual Monthly Asset Value Payment for the Customer’s last month Remote Processing Services under this Agreement (the amount by which the actual Monthly Asset Value Payment for such exceeds the payment made at this time shall be invoiced separately as of the last such month).
|
|
2)
|
Recurring Monthly Charges
.
Customer shall pay to HFS a Monthly Asset Value Payment based on the Total Bank Assets as of the last business day of the immediately preceding month. Each Monthly Asset Value payment shall be due and payable within thirty (30) days of Customer’s receipt of an invoice for such amount.
|
|
3)
|
Monthly Asset Value Payment
. For purposes of this Section 1(A), “Monthly Asset Value Payment” shall mean and be determined according to the following formula:
|
|
4)
|
Reporting Requirements.
On or before the third (3
rd
) business day of each calendar month, Customer shall submit to HFS (by such means as directed by HFS from time to time (i.e., via email, fax or other means where confirmation of receipt by HFS is available) its Asset Value as of the last business day of the immediately preceding calendar month. Upon request, Customer shall promptly confirm its Asset Value on the Live Date for purposes of the payment referenced in Section 1(A)(1) above. In the event Customer fails to provide its Asset Value in a timely manner as provided in the Section, HFS shall have the right and option to either (i) wait on the Asset Value to be provided or (ii) rely on the most recently provided Asset Value for Customer and proceed with invoicing for charges as provided hereunder (and adjusting the charges for the immediately following months if the Asset Value is subsequently determined to have been incorrect).
|
B.
|
One Time, Annual and Monthly Recurring Fees Based on Interfaces and Third-Party Products.
|
|
1)
|
HFS Interfaces to Third Party Products and Additional Fees
(Any existing standard HFS Interface is available
|
Function/ Services Utilized
|
Third Party
Products*
|
One Time
Set-Up
Fee
|
One Time
Interface
License Fee
|
Annual
Support Fee
|
Monthly
Fee
|
Monthly
Transmission
Fee
|
All Existing HFS Standard Interfaces are included
|
N/A
|
N/A
|
N/A
|
Included
|
N/A
|
|
2)
|
Third Party Products Licensed Pursuant to Section 2.18 of the Agreement and Additional Fees
|
Third Party
Vendor
|
Functions/Services Utilized
|
One Time
License Fees
|
Implementation Fees
|
Annual Support Fee
|
Star
|
Off-line ATM via Phoenix XM
|
N/A
|
N/A
|
Included
|
|
3)
|
Third Party Interfaces Not Licensed Under the Agreement
|
Third Party
Products
|
Function/Services Utilized
|
N/A
|
|
4)
|
Third Party Interfaces Licensed Under the Agreement and Additional Fees
|
Product Related to
Third Party Interface
|
Third Party
Products
|
One Time
Set-Up Fee
|
One Time
Interface
License Fee
|
Annual
Support Fee
|
Monthly
Fee
|
Monthly
Transmission
Fee
|
None
|
|
5)
|
Third Party Interfaces Not Licensed Under the Agreement and Additional Fees
|
C.
|
HFS One Time System Implementation Fees†
|
One Time Fees |
Set-Up for standard HFS Phoenix Banking System, Definitions, Deposits, Loans, Relationship Information Management, and General Ledger Setup, including Database Server
|
$97,647.00 (The Town Bank)
|
|
Phoenix Teller Application
|
$ included
|
|
Network Design Fee for each Customer Connection to the Data Center (Does not include Customer’s internal systems
|
$ N/A
|
|
Holding Company
|
$4,500
|
|
On-line ATM Implementation – The Town Bank - $14,859.50 (Optional)
|
||
On-line ATM Implementation – Two River Community Bank - $18,825 (Optional)
|
D.
|
Recurring Monthly Fees for Data Communications
|
Monthly Fees
|
Terminal Access
|
Included
|
|
Equipment Charges DSU/CSU
|
Included
|
|
Communications Hardware maintenance
|
(as set forth in Schedule 4)*
|
|
High-Speed Frame Relay
|
(as set forth in Schedule 4)*
|
|
Backup Circuit (ISDN)
|
(as set forth in Schedule 4)*
|
|
Internet Bandwidth
|
(as set forth in Schedule 4)*
|
E.
|
Additional Data Conversion Fees (see Schedule 5)†
|
ATM/Debit Card Conversion
|
Included
|
|
Deposit Account Transaction History
|
$10,000
|
|
Loan Account Transaction History
|
$10,000
|
|
Internet Banking Conversion
|
$7,500
|
F.
|
Training Fees†
|
Training at Implementation
|
Included (as set forth in Schedule 5)
|
G.
|
Recurring Monthly Fees for Other Services
|
Minimum Monthly Fees
|
Business Recovery Services
|
$ Included
|
|
Provide extract files for Credit Bureau Reporting to third party
|
$ Included
|
|
Provide extract files for Delinquent Child Support match to third party
|
$ Included
|
|
Provide extract files for OFAC match to third party
|
$ Included
|
|
Additional Databases (Reporting, etc.)
|
$400/each
|
H.
|
Recurring Fees for Remote Processing Services Based on Actual Usage of Such Specific Services.
Customer agrees to pay the following fees for each month during the term of this Agreement based on its usage of the services set forth in this Section 2:
|
I.
|
De-conversion Fees Following Termination.
In the event of termination, Phoenix agrees to provide reasonable de-conversion assistance and Customer’s Phoenix database (provided that new core provider signs an HFS nondisclosure agreement) for which Customer agrees to pay in advance to Phoenix a de-conversion fee equal to two (2) times the average Monthly Asset Value Payment for the Phoenix Core System for the three (3) months prior to termination.
|
J.
|
Early Termination Right
|
|
o
|
Customer must pay all Monthly Asset Value Payments as well as any other recurring fees which would have been incurred during the remainder of the 5-year term had this termination right not been exercised. Monthly Asset Value Payments for the remainder of the term shall be determined using Customer’s asset size as of the last Monthly Asset Value Payment prior to the merger or acquisition:
|
|
o
|
In addition, prior to performance of de-conversion services by HFS, Customer must pay to HFS an early termination fee equal to the difference between the total Monthly Asset Value Payments paid or payable during the 5-year term and the total Monthly Asset Value Payments that would be or would have been payable by Customer over the 5-year term had the discount described in Section A(3) of this Schedule 1 not been applied.
|
K.
|
Approval Condition
|
Initials: | ||||
HFS
|
/s/ WZ | |||
Customer |
/s/ MJG
|
|||
2/27/06
|
1.
|
On-Line Processing Hours
(all such hours subject to holiday schedule set forth in Section 3 below):
|
2.
|
Report Delivery
|
3.
|
HFS Holiday Schedule
|
4.
|
Service Level Response Guidelines
|
5.
|
Service Level for Remote Processing Services
|
A.
|
HFS shall make commercially reasonable efforts to ensure the Remote Processing Services are available for use by Customer not less than 96% of each calendar month. The “availability” will be measured as the percentage of minutes each day that the Remote Processing Services are available for use by Customer, and will be measured as the number of minutes per month that the Remote Processing Services are capable of receiving and processing Customer’s data. The “availability” of the Remote Processing Services shall be measured on a daily basis. A one hundred and eighty (180) minute period shall be excluded from the calculation each day because HFS will be performing system maintenance at this time each day. Additionally, the following “downtime” for the Remote Processing Services shall not be considered as available time for purposes of calculating the “availability” of Remote Process Services for each month: (i) “downtime” based on HFS performing system maintenance during the two (2) Sundays during each calendar month reserved for such purpose (as set forth in
Schedule 2.1
), and (ii) “downtime” caused by factors outside HFS’ control (such as downtimes caused by parties other than HFS like third party communication providers or Customer).
|
B.
|
Customer shall advise HFS in writing of any divergence from the “availability” terms set forth herein.
|
C.
|
HFS agrees that, if HFS is unable to provide the “availability” for the Remote Processing Services represented in Section A above for a given calendar month, HFS will provide priority support to Customer until the represented “availability” level is satisfied. Additionally, in the event HFS is unable to provide the “availability” represented in Section A for more than six (6) consecutive calendar months, Customer, as its sole and exclusive remedy and HFS entire liability, shall have the right to a credit of one (1) Monthly Asset Value Payment (as set forth in
Schedule 1.A
.), toward its Recurring Fees for Remote Processing Services during the next calendar month (provided that such written notice is provided within thirty (30) days of the end of the sixth consecutive month).
|
Customer Database Information
|
Retention Period from
Creation Date
|
Daily Production Files
EOM
EOQ
EOY
|
60 days
13 months
5 calendar quarters
7 years (offsite)
|
1.
|
Consulting Services for Training
.
|
|
§
|
10 days Account Processing Training
|
2.
|
Additional Consulting Services for Conversion of Customer Data and Customer Databases
.
|
3.
|
Conversion Date
.
|
1.
|
Customer will designate a Customer installation manager to be HFS ’s primary contact. The Customer installation manager will be responsible for coordination of proper resources from Customer management and operations to ensure timely completion of all Customer obligations related to the implementation of the RPS Products; including, but not limited to:
|
|
·
|
Review and selection of procession options.
|
|
·
|
Establishing Chart of Accounts.
|
|
·
|
Gathering information for product and parameter set-up.
|
|
·
|
Analysis and verification of pre-installation test output.
|
|
·
|
Availability of Customer to assist in balancing and verification of data accuracy.
|
2.
|
Customer will designate a training manager to coordinate attendance at HFS’ training classes and to supervise the training of all other Customer personnel by HFS. The Customer training manager will verify that personnel selected by Customer to attend HFS’ training classes have sufficient product knowledge and experience to teach other Customer staff. The training manager will also assure that there is sufficient time set aside for the training of all necessary and available Customer personnel.
|
3.
|
Customer will notify third parties in writing of its intent to use HFS as the data processing service provider and will support HFS in HFS’ set-up, converting, testing and preparing the RPS Products for production use.
|
4.
|
Customer will select and order all forms, coupons, and other items necessary for supporting Customer’s operations.
|
5.
|
Customer will prepare its installation site for all necessary equipment, communication and telecom lines, including proper electrical connections and air conditioning.
|
6.
|
Customer will use only the equipment that has been certified for use with the RPS Products by HFS. HFS may be contracted to provide equipment and installation services as Consulting Services pursuant to the Agreement.
|
(1)
|
Customer is prohibited from using the Third Party Products for purposes outside the scope defined in the Agreement.
|
(2)
|
Customer’s use of the Third Products shall be restricted to the number of specified users, workstations, seats or servers, as applicable, set forth in Schedule 1 for such Third Party Product. Customer is prohibited from (i) sublicensing, timesharing, rental, facility management, or service bureau usage of the Third Party Products; and (ii) permitting third parties to remotely access and use the Third Party Products over the internet, unless otherwise authorized in the Agreement. “Service bureau” shall mean an arrangement pursuant to which (i) third parties are permitted to access and use the Third Party Products directly or indirectly by any means to process their own data; or (ii) Customer uses the Third Party Products to process the data of any third party other than as authorized in the Agreement.
|
(3)
|
The third party owner of the Third Party Products retains title to the Third Party Products, and all copies thereof, and associated intellectual property rights therein. Customer may not copy the Third Party Products other than as expressly authorized in the Agreement or in writing by HFS, and must include on all copies of the Third Party Products all copyright, government restricted rights and other proprietary notices or legends included on the Sybase Program when it was shipped to such licensee.
|
(4)
|
Only object code versions of the Third Party Products are licensed to Customer, and any reverse engineering, disassembly or decompilation to derive source code is prohibited (except to the extent expressly allowed under applicable law).
|
(5)
|
Customer agrees to comply with all export and re-export restrictions and regulations (“Export Restrictions”) imposed by the government of the United States. If any Third Party Product license is provided to U.S. government licensee use, duplication or disclosure of the software and documentation by the U.S. Government shall be provided subject to terms and conditions consistent with these Mandatory Terms and any applicable FAR provisions, for example, FAR 52.227-19.
|
(6)
|
Although copyrighted, the Third Party Products may be unpublished and contain proprietary and confidential information of the owner of such Third Party Products. Customer agrees to maintain the Third Party Products in confidence and protect the Third Party Products with at least the same degree of care with which it protects its own similar confidential information and consistent with the terms of the Agreement for Confidential Information relate to the RPS Products.
|
(7)
|
Upon termination of the license for the Third Party Products, Customer shall destroy or return all copies of the Third Party Products consistent with the terms of the Agreement.
|
(8)
|
HFS shall have the right to conduct and/or direct an independent accounting firm to conduct, during normal business hours, an audit of the appropriate records of Customer to verify the number of copies of the Third Party Products in use and the computer systems and the number of users, workstations, seats or servers, as applicable licensed for or using the Third Party Products.
|
(9)
|
The owners of the Third Party Products shall be considered third party beneficiaries of this Agreement for purposes solely of the Third Party Products.
|
Initials: | ||||
HFS
|
/s/ WZ | |||
Customer |
/s/ MJG
|
|||
2/27/06
|
Portion of Option by
|
|
Number of Underlying Shares
|
Scheduled Vesting Date
|
December 11, 2013
|
|
December 11, 2014
|
|
December 11, 2015
|
|
December 11, 2016
|
|
December 11, 2017
|
COMMUNITY PARTNERS BANCORP
|
|||
|
By:
|
||
William D. Moss
|
|||
President and Chief Executive Officer | |||
PARTICIPANT:
|
|||
Date: _____________________
|
|
_____
|
cash in the amount of $______ |
|
_____
|
certified or bank cashier’s check in the amount of $_____ |
|
_____
|
by surrender of shares of the Company’s common stock with a value of $_____ represented by certificate number_____, duly endorsed for transfer to the Company with signature guaranteed, which may be (i) shares which were received by the Participant upon exercise of one or more incentive stock options, but only if such shares had been held by the Participant for a least the greater of (A) two years from the date the incentive stock options were granted or (B) one year after the transfer of shares to the Participant, (ii) shares which were received by the Participant upon exercise of one or more nonqualified stock options, but only if such shares had been held by the Participant for at least six months, or (iii) shares which were received by the Participant upon the vesting of one or more shares of restricted stock of the Company, but only if and to the extent that such shares had been held by the Participant for at least six months after vesting.
|
________________________________
Name:
________________________________
Address
________________________________
|
Portion of Option by
|
|
Number of Underlying Shares
|
Scheduled Vesting Date
|
1,000 |
December 12, 2012
|
1,000 |
December 12, 2013
|
1,000 |
December 12, 2014
|
1,000 |
December 12, 2015
|
1,000 |
December 12, 2016
|
Date: _____________________
|
|
_____
|
cash in the amount of $______ |
|
_____
|
certified or bank cashier’s check in the amount of $_____ |
|
_____
|
by surrender of shares of the Company’s common stock with a value of $_____ represented by certificate number(s) ________, duly endorsed for transfer to the Company with signature guaranteed,
which may, but need not, consist of or include
(i) shares which were received by me upon exercise of one or more nonqualified stock options, but only if such shares have been held by me for at least six months, or (ii)
shares which were awarded to, and received by, me as restricted stock of the Company, but only if and to the extent that such shares have been held by me for at least six months after vesting.
|
________________________________
Name:
________________________________
________________________________
(PRINT ADDRESS)
|
|
2.1.1
|
Amount of Benefit
. The annual benefit under this Section 2.1 is Seventy-One Thousand Dollars ($71,000).
|
EXECUTIVE: | BANK: | ||
TWO RIVER COMMUNITY BANK | |||
By | |||
ALAN B. TURNER | Title |
|
|
|
|
Schedule A Attached to 2
nd
Amendment Dated March 1, 2010
|
Plan Year Reporting
|
|
Schedule A
|
Birth Date: 8/29/1963
|
Early Termination
|
Disability
|
Change in Control
|
Pre-retire.
|
|||||||
Normal Retirement: 8/29/2028, Age 65
|
Death
|
||||||||||
Annual Benefit
2
|
Annual Benefit
2
|
Annual Benefit
2
|
Benefit
|
||||||||
Amount Payable at
|
Amount Payable at
|
Amount Payable at
|
Lump Sum
|
||||||||
Separation from Service
|
Normal Retirement Age
|
Separation from Service
|
Benefit
|
||||||||
Based On
|
Based On
|
Based On
|
Based On
|
||||||||
Values
|
Age
|
Accrual
|
Accrual
|
Benefit
|
Accrual
|
||||||
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
|||||||
Mar 2010
1
|
46
|
5,605
|
18,597
|
34,367
|
330,548
|
||||||
Dec 2010
|
47
|
7,172
|
22,542
|
35,509
|
341,530
|
||||||
Dec 2011
|
48
|
9,166
|
27,002
|
36,929
|
355,191
|
||||||
Dec 2012
|
49
|
11,294
|
31,183
|
38,406
|
369,399
|
||||||
Dec 2013
|
50
|
13,565
|
35,102
|
39,943
|
384,175
|
||||||
Dec 2014
|
51
|
15,988
|
38,774
|
41,540
|
399,542
|
||||||
Dec 2015
|
52
|
18,573
|
42,216
|
43,202
|
415,524
|
||||||
Dec 2016
|
53
|
21,331
|
45,442
|
44,930
|
432,145
|
||||||
Dec 2017
|
54
|
24,274
|
48,466
|
46,727
|
449,431
|
||||||
Dec 2018
|
55
|
27,414
|
51,299
|
48,596
|
467,408
|
||||||
Dec 2019
|
56
|
30,764
|
53,955
|
50,540
|
486,104
|
||||||
Dec 2020
|
57
|
34,338
|
56,444
|
52,562
|
505,548
|
||||||
Dec 2021
|
58
|
38,152
|
58,777
|
54,664
|
525,770
|
||||||
Dec 2022
|
59
|
42,222
|
60,963
|
56,851
|
546,801
|
||||||
Dec 2023
|
60
|
46,564
|
63,013
|
59,125
|
568,673
|
||||||
Dec 2024
|
61
|
51,196
|
64,933
|
61,490
|
591,420
|
||||||
Dec 2025
|
62
|
56,139
|
66,733
|
63,949
|
615,077
|
||||||
Dec 2026
|
63
|
61,413
|
68,420
|
66,507
|
639,680
|
||||||
Dec 2027
|
64
|
67,041
|
70,001
|
69,168
|
665,267
|
||||||
Aug 2028
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65
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71,000
|
71,000
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71,000
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682,891
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Name of Subsidiary
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State or Other Jurisdiction of
Incorporation or Organization
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Two River Community Bank
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New Jersey
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TRCB Investment Company*
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New Jersey
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Two River Community Bank Employer’s Trust*
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New Jersey
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TRCB Holdings One LLC*
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New Jersey
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TRCB Holdings Two LLC*
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New Jersey
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TRCB Holdings Three LLC*
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New Jersey
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TRCB Holdings Four LLC*
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New Jersey
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TRCB Holdings Five LLC*
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New Jersey
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TRCB Holdings Six LLC*
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New Jersey
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1.
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I have reviewed this annual report on Form 10-K of Community Partners Bancorp;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
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/s/ WILLIAM D. MOSS
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Name:
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William D. Moss
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Title:
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President and Chief Executive Officer
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1.
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I have reviewed this annual report on Form 10-K of Community Partners Bancorp;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
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/s/ A. RICHARD ABRAHAMIAN
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Name:
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A. Richard Abrahamian
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Title:
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Executive Vice President and Chief Financial Officer
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/s/ WILLIAM D. MOSS
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Name:
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William D. Moss
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Title:
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President and Chief Executive Officer
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Date:
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March 29, 2013
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/s/ A. RICHARD ABRAHAMIAN
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Name:
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A. Richard Abrahamian
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Title:
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Executive Vice President and Chief Financial Officer
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Date:
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March 29, 2013
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