Edgar Filing: BCB BANCORP INC

form10k-114569_bcb.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

T Annual Report Pursuant To Section 13 or 15(d) Of The Securities Exchange Act of 1934

For the fiscal ended December 31, 2010.

* Transition Report Pursuant To Section 13 or 15(d) Of The Securities Exchange Act of 1934

For the transition period from ______________ to ______________.

Commission file number: 000-50275

BCB BANCORP, INC.

(Exact name of registrant as specified in its charter)

New Jersey		26-0065262
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

104-110 Avenue C, Bayonne, New Jersey		07002
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (201) 823-0700

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Name of each exchange on which registered
Common Stock, no par value		The NASDAQ Stock Market, LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

YES o NO x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

YES o NO x

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES x NO o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or such shorter period that the Registrant was required to submit and post such files).

YES o NO o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o

Accelerated filer o

Non-accelerated filer o

Smaller reporting company x

(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES o NO x

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant, computed by reference to the last sale price on June 30, 2010, as reported by the Nasdaq Capital Market, was approximately $27.0 million.

As of March 1, 2011, there were issued 9,402,779 shares of the Registrant’s Common Stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE:

(1) Proxy Statement for the 2011 Annual Meeting of Stockholders of the Registrant (Part III).

(2) Annual Report to Stockholder (Part II and IV).

TABLE OF CONTENTS

Item		Page Number

ITEM 1.	BUSINESS	1
ITEM 1A.	RISK FACTORS	32
ITEM 1B.	UNRESOLVED STAFF COMMENTS	36
ITEM 2.	PROPERTIES	36
ITEM 3.	LEGAL PROCEEDINGS	36
ITEM 4.	RESERVED	37
ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	38
ITEM 6.	SELECTED CONSOLIDATED FINANCIAL DATA	40
ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	41
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	58
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	60
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	60
ITEM 9A.(T)	CONTROLS AND PROCEDURES	60
ITEM 9B.	OTHER INFORMATION	61
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	61
ITEM 11.	EXECUTIVE COMPENSATION	62
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	62
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	62
ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	62
ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	62

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This report on Form 10-K contains forward-looking statements that are based on assumptions and may describe future plans, strategies and expectations of BCB Bancorp, Inc. and subsidiaries. This document may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” or similar expressions. Although we believe that our plans, intentions and expectations, as reflected in these forward-looking statements are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved or realized. By identifying these statements for you in this manner, we are alerting you to the possibility that our actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Important factors that could cause our actual results and financial condition to differ from those indicated in the forward-looking statements include, among others, those discussed below and under “Risk Factors” in Part I, Item 1A of this Annual Report on Form 10-K. You should not place undue reliance on these forward-looking statements, which reflect our expectations only as of the date of this report. We do not assume any obligation to revise forward-looking statements except as may be required by law.

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PART I

ITEM 1.

BUSINESS

BCB Bancorp, Inc.

BCB Bancorp, Inc. (the “Company”) is a New Jersey corporation, and is the holding company parent of BCB Community Bank (the “Bank”). The Company has not engaged in any significant business activity other than owning all of the outstanding common stock of BCB Community Bank. Our executive office is located at 104-110 Avenue C, Bayonne, New Jersey 07002. Our telephone number is (201) 823-0700. At December 31, 2010 we had $1.1 billion in consolidated assets, $886.3 million in deposits and $99.0 million in consolidated stockholders’ equity. The Company is subject to extensive regulation by the Board of Governors of the Federal Reserve System.

BCB Community Bank

BCB Community Bank opened for business on November 1, 2000 as Bayonne Community Bank, a New Jersey chartered commercial bank. We changed our name from Bayonne Community Bank to BCB Community Bank in April of 2007. On July 6, 2010, the Company completed its acquisition of Pamrapo Bancorp, Inc. All information contained in this Annual Report on Form 10-K reflects the impact of the acquisition of Pamrapo Bancorp, Inc. from the date of the acquisition. At December 31, 2010, we operated through ten branches in Bayonne, Jersey City, Hoboken and Monroe Township, New Jersey and through our executive office located at 104-110 Avenue C, Bayonne, New Jersey 07002. Our deposit accounts are insured by the Federal Deposit Insurance Corporation (FDIC) and we are a member of the Federal Home Loan Bank System.

We are a community-oriented financial institution. Our business is to offer FDIC-insured deposit products and to invest funds held in deposit accounts at the Bank, together with funds generated from operations, in investment securities and loans. We offer our customers:

loans, including commercial and multi-family real estate loans, one- to four-family mortgage loans, home equity loans, construction loans, consumer loans and commercial business loans. In recent years the primary growth in our loan portfolio has been in loans secured by commercial real estate and multi-family properties. Conversely, in 2010, we deemphasized the origination of construction loans;

FDIC-insured deposit products, including savings and club accounts, non-interest bearing accounts, money market accounts, certificates of deposit and individual retirement accounts; and

retail and commercial banking services including wire transfers, money orders, traveler’s checks, safe deposit boxes, a night depository, federal payroll tax deposits, bond coupon redemption and automated teller services.

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Business Strategy

Our business strategy is to operate as a well-capitalized, profitable and independent community-oriented financial institution dedicated to providing quality customer service. Management’s and the Board of Directors’ extensive knowledge of the Hudson County market differentiates us from our competitors. Our business strategy incorporates the following elements: maintaining a community focus, focusing on profitability, continuing our growth, concentrating on real estate based lending, capitalizing on market dynamics, providing attentive and personalized service and attracting highly qualified and experienced personnel.

Maintaining a community focus. Our management and Board of Director’s have strong ties to the Bayonne community. Many members of the management team are Bayonne natives and are active in the community through non-profit board membership, local business development organizations, and industry associations. In addition, our board members are well established professionals and business people in the Bayonne area. Management and the Board are interested in making a lasting contribution to the Bayonne community and have succeeded in attracting deposits and loans through attentive and personalized service.

Focusing on profitability. For the year ended December 31, 2010, our return on average equity was 22.67% and our return on average assets was 1.62%. Our earnings per diluted share increased from $1.08 for the year ended December 31, 2006 to $2.05 for the year ended December 31, 2010. Earnings per share results have come under pressure recently, primarily as a result of the pervasive economic downturn in both the national and local economy as well as several one-time events. Management is committed to maintaining profitability by diversifying the products, pricing and services we offer.

Continuing our growth. We have consistently increased our assets. In addition to organic growth, the acquisition of Pamrapo Bancorp, Inc. resulted in our assets increasing from $631.5 million at December 31, 2009 to $1.1 billion at December 31, 2010. Moreover, we have maintained our asset quality ratios while growing the loan portfolio. At December 31, 2010, our non-performing assets to total assets ratio was 4.10%.

Concentrating on real estate-based lending. A primary focus of our business strategy is to originate loans secured by commercial and multi-family properties. Such loans provide higher returns than loans secured by one- to four-family real estate. As a result of our underwriting practices, including debt service requirements for commercial real estate and multi-family loans, management believes that such loans offer us an opportunity to obtain higher returns.

Capitalizing on market dynamics. The consolidation of the banking industry in Hudson County has provided a unique opportunity for a customer focused banking institution, such as the Bank. We believe our local roots and community focus provides the bank with an opportunity to capitalize on the consolidation in our market area. This consolidation has moved decision making away from local, community-based banks to much larger banks headquartered outside of New Jersey. We believe our local roots and community focus provides the Bank with an opportunity to capitalize on the consolidation in our market area.

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Providing attentive and personalized service. Management believes that providing attentive and personalized service is the key to gaining deposit and loan relationships in Bayonne and its surrounding communities. Since we began operations, our branches have been open seven (7) days a week.

Attracting highly experienced and qualified personnel. An important part of our strategy is to hire bankers who have prior experience in the Hudson County market as well as pre-existing business relationships. Our management team has an average of 30 years of banking experience, while our lenders and branch personnel have significant prior experience at community banks and regional banks in Hudson County. Management believes that its knowledge of the Hudson County market has been a critical element in the success of BCB Community Bank. Management’s extensive knowledge of the local communities has allowed us to develop and implement a highly focused and disciplined approach to lending and has enabled the Bank to attract a high percentage of low cost deposits.

Our Market Area

We are located in the City of Bayonne, Jersey City and Hoboken in Hudson County, and Monroe Township in Middlesex County, New Jersey. The Bank’s locations are easily accessible and provide convenient services to businesses and individuals throughout our market area. Following our acquisition of Pamrapo Bancorp, Inc. our market area expanded to include branch offices in Jersey City and Monroe Township, New Jersey.

Our market area includes the City of Bayonne, Jersey City, portions of Hoboken and Monroe Township, New Jersey. These areas are all considered “bedroom” or “commuter” communities to Manhattan. Our market area is well-served by a network of arterial roadways including Route 440 and the New Jersey Turnpike.

Our market area has a high level of commercial business activity. Businesses are concentrated in the service sector and retail trade areas. Major employers in our market area include Bayonne Medical Center and the Bayonne Board of Education.

Competition

The banking business in New Jersey is extremely competitive. We compete for deposits and loans with existing New Jersey and out-of-state financial institutions that have longer operating histories, larger capital reserves and more established customer bases. Our competition includes large financial service companies and other entities in addition to traditional banking institutions such as savings and loan associations, savings banks, commercial banks and credit unions.

Our larger competitors have a greater ability to finance wide-ranging advertising campaigns through their greater capital resources. Our marketing efforts depend heavily upon referrals from officers, directors, stockholders, selective advertising in local media and direct mail solicitations. We compete for business principally on the basis of personal service to customers, customer access to our officers and directors and competitive interest rates and fees.

In the financial services industry in recent years, intense market demands, technological and regulatory changes and economic pressures have eroded industry classifications that were once clearly defined. Banks have diversified their services, increased rates paid on deposits and

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become more cost effective as a result of competition with one another and with new types of financial service companies, including non-banking competitors. Some of the results of these market dynamics in the financial services industry have been a number of new bank and non-bank competitors, increased merger activity, and increased customer awareness of product and service differences among competitors.

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Lending Activities

Analysis of Loan Portfolio. Set forth below is selected data relating to the composition of our loan portfolio by type of loan as a percentage of the respective portfolio.

	At December 31,
	2010					2009					2008					2007					2006
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
Type of loans:	(Dollars in Thousands)
Real estate loans:
Residential	$	234,435		29.98	%	$	76,490		18.70	%	$	74,039		17.94	%	$	55,248		14.96	%	$	43,993		13.64	%
Construction		17,848		2.28			51,330		12.55			62,483		15.14			49,984		13.53			38,882		12.06
Commercial and multi-family		410,212		52.45			223,792		54.71			223,179		54.07			208,108		56.35			192,141		59.60
Home equity(2)		63,603		8.13			34,298		8.39			38,065		9.22			35,397		9.58			32,321		10.02
Commercial business(1)		54,160		6.93			22,487		5.50			14,098		3.42			19,873		5.38			14,705		4.56
Consumer		1,816		0.23			641		0.15			920		0.21			739		0.20			396		0.12

Total		782,074		100.00	%		409,038		100.00	%		412,784		100.00	%		369,349		100.00	%		322,438		100.00	%
Less:
Deferred loan fees, net		556					522					654					630					575
Allowance for loan losses		8,417					6,644					5,304					4,065					3,733
Total loans, net	$	773,101				$	401,872				$	406,826				$	364,654				$	318,130

__________

(1) Includes business lines of credit

(2) Includes home equity lines of credit

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Loan Maturities. The following table sets forth the contractual maturity of our loan portfolio at December 31, 2010. The amount shown represents outstanding principal balances. Demand loans, loans having no stated schedule of repayments and no stated maturity and overdrafts are reported as being due in one year or less. Variable-rate loans are shown as due at the time of repricing. The table does not include prepayments or scheduled principal repayments.

	Due within 1 Year		Due after 1 through 5 Years		Due after 5 Years		Total
	(In Thousands)
Residential	$	1,812	$	2,988	$	229,635	$	234,435
Construction		15,805		1,630		413		17,848
Commercial business(1)		20,784		18,671		14,705		54,160
Commercial and multi-family		20,359		60,837		329,016		410,212
Home equity(2)		1,526		3,993		58,084		63,603
Consumer		111		537		1,168		1,816
Total amount due	$	60,397	$	88,656	$	633,021	$	782,074

Loans with Predetermined or Floating or Adjustable Rates of Interest. The following table sets forth the dollar amount of all loans at December 31, 2010 that are due after December 31, 2011, and have predetermined interest rates and that have floating or adjustable interest rates.

	Fixed Rates		Floating or Adjustable Rates		Total
	(In Thousands)
Residential	$	225,704	$	6,919	$	232,623
Construction		1,017		1,026		2,043
Commercial business(1)		14,103		19,273		33,376
Commercial and multi-family		181,072		208,781		389,853
Home equity(2)		52,905		9,172		62,077
Consumer		1,700		5		1,705
Total amount due	$	476,501	$	245,176	$	721,677

__________

(1) Includes business lines of credit

(2) Includes home equity lines of credit

Commercial and Multi-family Real Estate Loans. Our commercial and multi-family real estate loans are secured by commercial real estate (for example, shopping centers, medical buildings, retail offices) and multi-family residential units, consisting of five or more units. Permanent loans on commercial and multi-family properties are generally originated in amounts up to 75% of the appraised value of the property. Our commercial real estate loans are secured by improved property such as office buildings, retail stores, warehouses, church buildings and other non-residential buildings. Commercial and multi-family real estate loans are generally made at rates that adjust above the five year U.S. Treasury interest rate, with terms of up to 25 years, or are balloon loans with fixed interest rates which generally mature in three to five years with principal amortization for a period of up to 30 years. Our largest commercial loan had a principal balance of $2.9 million at December 31, 2010, was secured by a mixed use residential/commercial property and was performing in accordance with its terms on that date. Our largest multi-family loan had a principal balance of $4.4 million at December 31, 2010. This loan, which was operating under the terms of a work-out plan and had performed according to its

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adjusted terms, had that workout plan expire on December 31, 2010. The loan will now return to its original terms and is expected to perform as required.

Loans secured by commercial and multi-family real estate are generally larger and involve a greater degree of risk than one- to four-family residential mortgage loans. The borrower’s creditworthiness and the feasibility and cash flow potential of the project is of primary concern in commercial and multi-family real estate lending. Loans secured by income properties are generally larger and involve greater risks than residential mortgage loans because payments on loans secured by income properties are often dependent on the successful operation or management of the properties. As a result, repayment of such loans may be subject to a greater extent than residential real estate loans to adverse conditions in the real estate market or the economy. We intend to continue emphasizing the origination of loans secured by commercial real estate and multi-family properties.

Residential One- to Four-Family Lending. Our one- to four-family residential mortgage loans are secured by property located primarily in the State of New Jersey. We generally originate one- to four-family residential mortgage loans in amounts up to 80% of the lesser of the appraised value or selling price of the mortgaged property without requiring mortgage insurance. We will originate loans with loan to value ratios up to 90% provided the borrowers obtain private mortgage insurance. We originate both fixed rate and adjustable rate loans. One- to four-family loans may have terms of up to 30 years. The majority of one- to four-family loans we originate for retention in our portfolio have terms no greater than 15 years. We offer adjustable rate loans with fixed rate periods of up to five years, with principal and interest calculated using a maximum 30-year amortization period. We offer these loans with a fixed rate for the first five years with repricing following every year after the initial period. Adjustable rate loans may adjust up to 200 basis points annually and 600 basis points over the term of the loan. We also broker for a third party lender one- to four-family residential loans, which are primarily fixed rate loans with terms of 30 years. Our loan brokerage activities permit us to offer customers longer-term fixed rate loans we would not otherwise originate while providing a source of fee income. During 2010, we brokered $19.4 million in one- to four-family loans and recognized gains of $295,000 from the sale of such loans. As a result of the Pamrapo Bancorp acquisition we were able to market our one-to-four-family origination program to a broader cross-section of our primary market area.

All of our one- to four-family mortgages include “due on sale” clauses, which are provisions giving us the right to declare a loan immediately payable if the borrower sells or otherwise transfers an interest in the property to a third party.

Property appraisals on real estate securing our single-family residential loans are made by state certified and licensed independent appraisers approved by our Board of Directors. Appraisals are performed in accordance with applicable regulations and policies. At our discretion, we obtain either title insurance policies or attorneys’ certificates of title on all first mortgage real estate loans originated. We also require fire and casualty insurance on all properties securing our one- to four-family loans. We also require the borrower to obtain flood insurance where appropriate. In some instances, we charge a fee equal to a percentage of the loan amount commonly referred to as points.

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Construction Loans. We offer loans to finance the construction of various types of commercial and residential property. We originated $5.4 million of such loans during the year ended December 31, 2010. Construction loans to builders generally are offered with terms of up to eighteen months and interest rates are tied to the prime rate plus a margin. During 2010, we deemphasized the origination of construction loans. These loans generally are offered as adjustable rate loans. We will originate residential construction loans for individual borrowers and builders, provided all necessary plans and permits are in order. Construction loan funds are disbursed as the project progresses. At December 31, 2010, our largest construction loan was $3.8 million, of which $2.8 million was disbursed. This construction loan has been made for the construction of twenty-one residential units. At December 31, 2010, this loan was performing in accordance with its terms.

Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan is dependent largely upon the accuracy of the initial estimate of the property’s value at completion of construction and development and the estimated cost (including interest) of construction. During the construction phase, a number of factors could result in delays and cost overruns. If the estimate of construction costs proves to be inaccurate, we may be required to advance funds beyond the amount originally committed to permit completion of the project. Additionally, if the estimate of value proves to be inaccurate, we may be confronted, at or prior to the maturity of the loan, with a project having a value which is insufficient to assure full repayment.

Home Equity Loans and Home Equity Lines of Credit. We offer home equity loans and lines of credit that are secured by the borrower’s primary residence. Our home equity loans can be structured as loans that are disbursed in full at closing or as lines of credit. Home equity loans and lines of credit are offered with terms up to 15 years. Virtually all of our home equity loans are originated with fixed rates of interest and home equity lines of credit are originated with adjustable interest rates tied to the prime rate. Home equity loans and lines of credit are underwritten under the same criteria that we use to underwrite one- to four-family loans. Home equity loans and lines of credit may be underwritten with a loan-to-value ratio of 80% when combined with the principal balance of the existing mortgage loan. At the time we close a home equity loan or line of credit, we file a mortgage to perfect our security interest in the underlying collateral. At December 31, 2010, the outstanding balances of home equity loans and lines of credit totaled $63.6 million, or 8.13% of our loan portfolio.

Commercial Business Loans. Our commercial business loans are underwritten on the basis of the borrower’s ability to service such debt from income. Our underwriting standards for commercial business loans include a review of the applicant’s tax returns, financial statements, credit history and an assessment of the applicant’s ability to meet existing obligations and payments on the proposed loan based on cash flow generated by the applicant’s business. Commercial business loans are generally made to small and mid-sized companies located within the State of New Jersey. In most cases, we require collateral of real estate, equipment, accounts receivable, inventory, chattel or other assets before making a commercial business loan. Our largest commercial business loan at December 31, 2010 was an unsecured loan to a local Board of Education and had a principal balance of $6.2 million. This loan was performing in accordance with its terms as of that date.

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Commercial business loans generally have higher rates and shorter terms than one- to four-family residential loans, but they may also involve higher average balances and a higher risk of default since their repayment generally depends on the successful operation of the borrower’s business.

Consumer Loans. We make various types of secured and unsecured consumer loans and loans that are collateralized by new and used automobiles. Consumer loans generally have terms of three years to ten years.

Consumer loans are advantageous to us because of their interest rate sensitivity, but they also involve more credit risk than residential mortgage loans because of the higher potential for default, the nature of the collateral and the difficulty in disposing of the collateral.

The following table shows our loan origination, purchase, sale and repayment activities for the periods indicated.

	Years Ended December 31,
	2010		2009			2008		2007		2006
	(In Thousands)

Beginning of period	$	409,038	$	412,784		$	369,349	$	322,438	$	288,145

Loans Acquired Through Merger		412,142		—			—		—		—


Originations by Type:
Real estate mortgage:
Residential		13,408		19,509			9,683		6,454		9,203
Construction		5,366		16,060			15,591		48,415		34,889
Home equity		7,995		3,015			9,699		14,512		15,821
Commercial and multi-family		31,604		33,809			63,601		55,892		51,542
Commercial business		47,607		17,843			11,624		16,987		7,946
Consumer		200		132			492		215		222
Total loans originated		106,180		90,368			110,690		142,475		119,623

Purchases:
Real estate mortgage:
Residential		—		—			—		—		—
Construction		676		1,744			113		3,726		4,870
Home equity		—		—			—		—		—
Commercial and multi-family		992		—			—		5,267		1,737
Commercial business		—		—			—		600		400
Consumer		—		—			—		—		—
Total loans purchased		1,668		1,744			113		9,593		7,007

Sales:
Real estate mortgage:
Residential		—		—			—		—		—
Construction		493		1,238			2,523		5,040		2,044
Home equity		—		—			—		—		—
Commercial and multi-family		1,085		—			—		1,275		3,388
Commercial business		130		—			—		—		—
Consumer		—		—			—		—		—
Total loans sold		1,708		1,238			2,523		6,315		5,432

Principal repayments		138,539		94,549			63,651		97,396		86,905
Transfer of loans to real estate owned		6,887		71			1,194		1,446		—
Total reductions		145,246		94,620			64,845		98,842		92,337

Net increase (decrease)		373,036		(3,746	)		43,435		46,911		34,293

Ending balance	$	782,074	$	409,038		$	412,784	$	369,349	$	322,438

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Loan Approval Authority and Underwriting. We establish various lending limits for executive management and also maintain a loan committee. The loan committee is comprised of the Chairman of the Board, the President, the Senior Lending Officer and five non-employee members of the Board of Directors. The President or the Senior Lending Officer, together with one other loan officer, have authority to approve applications for real estate loans up to $500,000, other secured loans up to $500,000 and unsecured loans up to $25,000. The loan committee considers all applications in excess of the above lending limits and the entire board of directors ratifies all such loans.

Upon receipt of a completed loan application from a prospective borrower, a credit report is ordered. Income and certain other information is verified. If necessary, additional financial information may be requested. An appraisal is required for the underwriting of all one- to four-family loans. We may rely on an estimate of value of real estate performed by our Senior Lending Officer for home equity loans or lines of credit of up to $250,000. Appraisals are processed by state certified independent appraisers approved by the Board of Directors.

An attorney’s certificate of title is required on all newly originated real estate mortgage loans. In connection with refinancing and home equity loans or lines of credit in amounts up to $250,000, we will obtain a record owner’s search in lieu of an attorney’s certificate of title. Borrowers also must obtain fire and casualty insurance. Flood insurance is also required on loans secured by property that is located in a flood zone.

Loan Commitments. Written commitments are given to prospective borrowers on all approved real estate loans. Generally, we honor commitments for up to 60 days from the date of issuance. At December 31, 2010, our outstanding loan origination commitments totaled $3.0 million, standby letters of credit totaled $2.0 million, outstanding construction loans in progress totaled $5.2 million and undisbursed lines of credit totaled $33.7 million.

Loan Delinquencies. We send a notice of nonpayment to borrowers when their loan becomes 15 days past due. If such payment is not received by month end, an additional notice of nonpayment is sent to the borrower. After 60 days, if payment is still delinquent, a notice of right to cure default is sent to the borrower giving 30 additional days to bring the loan current before foreclosure is commenced. If the loan continues in a delinquent status for 90 days past due and no repayment plan is in effect, foreclosure proceedings will be initiated. In an effort to more closely monitor the performance of our loan portfolio and asset quality, the Bank has created various concentration of credit reports, specifically as it relates to our construction and commercial real estate portfolios. These reports stress test declining property values up to and including a 25% value deprecation to the original appraised value to determine our potential exposure.

Loans are reviewed and are placed on a non-accrual status when the loan becomes more than 90 days delinquent or when, in our opinion, the collection of additional interest is doubtful. Once placed on non-accrual status, the accrual of interest income is discontinued. Income is subsequently recognized only to the extent that cash payments are received until delinquency status is reduced to less than ninety days, in which case the loan is returned to accrual status. At December 31, 2010, we had $41.8 million in non-accruing loans. Our largest exposure of non-

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performing loans at that date consisted of two loans, with one specific borrower with a combined principal balance of $3.0 million, collateralized by two multi-unit apartment complexes. These units are under contract to have their notes sold to a third party. The closing on these facilities occurred during the first quarter of 2011, with the bank realizing a loss of approximately $76,000. Another loan relationship consisting of two loans with one specific borrower and a balance of $2.25 million is also in non-accrual status. This borrower is in foreclosure and while there has been a certain level of depreciation of the underlying collateral, the Bank believes that upon conveyance and disposition of the properties, the Bank will not incur a loss on these facilities.

A loan is considered impaired when it is probable the borrower will not repay the loan according to the original contractual terms of the loan agreement. We have determined that first mortgage loans on one- to four-family properties and all consumer loans represent large groups of smaller-balance homogeneous loans that are collectively evaluated. Additionally, we have determined that an insignificant delay (less than 90 days) will not cause a loan to be classified as impaired and a loan is not impaired during a period of delay in payment, if we expect to collect all amounts due including interest accrued at the contractual interest rate for the period of delay. We independently evaluate all loans identified as impaired. We estimate credit losses on impaired loans based on the present value of expected cash flows or the fair value of the underlying collateral if the loan repayment will be derived from the sale or operation of such collateral. Impaired loans, or portions of such loans, are charged off when we determine that a realized loss has occurred. Until such time, an allowance for loan losses is maintained for estimated losses. Cash receipts on impaired loans are applied first to accrued interest receivable unless otherwise required by the loan terms, except when an impaired loan is also a nonaccrual loan, in which case the portion of the receipts related to interest is recognized as income. At December 31, 2010, we had fifty seven loans with an unpaid principal balance totaling $33.6 million which are classified as impaired and on which loan loss allowances totaling $2.1 million have been established. During 2010, interest income of $2.1 million was recognized on impaired loans during the time of impairment.

The following table sets forth delinquencies in our loan portfolio as of the dates indicated:

	At December 31, 2010										At December 31, 2009
	60-89 Days					90 Days or More					60-89 Days					90 Days or More
	Number of Loans		Principal Balance of Loans			Number of Loans		Principal Balance of Loans			Number of Loans		Principal Balance of Loans			Number of Loans		Principal Balance of Loans
	(Dollars in Thousands)
Real estate mortgage:
Residential		9	$	3,706			48	$	15,115			3	$	3,973			5	$	1,559
Construction		—		—			7		2,773			—		—			7		4,343
Home equity		7		694			20		1,632			2		517			2		251
Commercial and multi-family		9		5,391			64		21,147			5		2,729			8		5,280
Total		25		9,791			139		40,667			10		7,219			22		11,433

Commercial business		4		456			5		861			1		369			1		500
Consumer		1		5			4		283			—		—			—		—
Total delinquent loans		30	$	10,252			148	$	41,811			11	$	7,588			23	$	11,933

Delinquent loans to total loans				1.31	%				5.35	%				1.86	%				2.92	%

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	At December 31, 2008										At December 31, 2007
	60-89 Days					90 Days or More					60-89 Days					90 Days or More
	Number of Loans		Principal Balance of Loans			Number of Loans		Principal Balance of Loans			Number of Loans		Principal Balance of Loans			Number of Loans		Principal Balance of Loans
	(Dollars in Thousands)
Real estate mortgage:
Residential		3	$	1,507			4	$	1,213			—	$	—			1	$	319
Construction		1		360			—		—			—		—			1		1,247
Home equity		—		—			—		—			—		—			1		149
Commercial and multi-family		2		265			5		2,515			2		1,770			5		2,558
Total		6		2,132			9		3,728			2		1,770			8		4,273

Commercial business		—		—			—		—			—		—			—		—
Consumer		—		—			—		—			—		—			—		—
Total delinquent loans		6	$	2,132			9	$	3,728			2	$	1,770			8	$	4,273

Delinquent loans to total loans				0.51	%				0.90	%				0.48	%				1.16	%

	At December 31, 2006
	60-89 Days					90 Days or More
	Number of Loans		Principal Balance of Loans			Number of Loans		Principal Balance of Loans
	(Dollars in Thousands)
Real estate mortgage:
Residential		—	$	—			—	$	—
Construction		1		1,356			—		—
Home equity		—		—			—		—
Commercial and multi-family		—		—			1		307
Total		1		1,356			1		307

Commercial business		—		—			—		—
Consumer		1		2			1		16
Total delinquent loans		2	$	1,358			2	$	323

Delinquent loans to total loans				0.42	%				0.10	%

The table below sets forth the amounts and categories of non-performing assets in the Bank’s loan portfolio. Loans are placed on non-accrual status when delinquent more than 90 days or when the collection of principal and/or interest become doubtful. Foreclosed assets include assets acquired in settlement of loans.

	At December 31,
	2010			2009			2008			2007			2006
	(Dollars in Thousands)
Non-accruing loans:
Residential	$	15,115		$	1,559		$	1,213		$	319		$	—
Construction		2,773			4,343			—			1,247			—
Home equity		1,632			251			—			149			—
Commercial and multi-family		21,147			5,280			2,515			2,039			307
Commercial business		861			500			—			—			—
Consumer		283			—			—			—			16
Total		41,811			11,933			3,728			3,754			323

Accruing loans delinquent more than 90 days:
Residential		—			—			—			—			—
Construction		—			—			—			—			—
Home equity		—			—			—			—			—
Commercial and multi-family		—			—			—			519			—
Commercial business		—			—			—			—			—
Consumer		—			—			—			—			—
Total		—			—			—			519			—

Total non-performing loans		41,811			11,933			3,728			4,273			323
Foreclosed assets		3,602			1,270			1,435			287			—

Total non-performing assets	$	45,413		$	13,203		$	5,163		$	4,560		$	323
Total non-performing assets as a percentage of total assets		4.10	%		2.09	%		0.89	%		0.81	%		0.06	%
Total non-performing loans as a percentage of total loans		5.35	%		2.92	%		0.90	%		1.16	%		0.10	%

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For the year ended December 31, 2010, gross interest income which would have been recorded had our non-accruing loans been current in accordance with their original terms amounted to $1.9 million. We received and recorded $280,000 in interest income for such loans for the year ended December 31, 2010. The year over year increase in non-performing loans reflects nonperforming loans acquired as part of the Pamrapo Bancorp, Inc. acquisition.

Classified Assets. Our policies provide for a classification system for problem assets. Under this classification system, problem assets are classified as “substandard,” “doubtful,” “loss” or “special mention.” An asset is considered substandard if it is inadequately protected by its current net worth and paying capacity of the borrower or of the collateral pledged, if any. Substandard assets include those characterized by the “distinct possibility” that “some loss” will be sustained if the deficiencies are not corrected. Assets classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weakness present makes “collection or liquidation in full” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Assets classified as loss are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted, and the loan, or a portion thereof, is charged-off. Assets may be designated special mention because of potential weaknesses that do not currently warrant classification in one of the aforementioned categories.

When we classify problem assets, we may establish general allowances for loan losses in an amount deemed prudent by management. General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular problem assets. A portion of general loss allowances established to cover possible losses related to assets classified as substandard or doubtful may be included in determining our regulatory capital. Specific valuation allowances for loan losses generally do not qualify as regulatory capital. At December 31, 2010, we had $668,000 in assets classified as loss, all of which is considered impaired, $16.8 million in assets classified as doubtful, of which $5.4 million was classified as impaired, $31.5 million in assets classified as substandard, of which $11.4 million was classified as impaired and $40.1 million in assets classified as special mention, of which $11.5 million was classified as impaired. The loans classified as substandard represent primarily commercial loans secured either by residential real estate, commercial real estate or heavy equipment. The loans that have been classified substandard were classified as such primarily because either updated financial information has not been timely provided, or the collateral underlying the loan is in the process of being revalued.

The Company’s internal credit risk grades are based on the definitions currently utilized by the banking regulatory agencies. The grades assigned and definitions are as follows, and loans

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graded excellent, above average, good and watch list (risk ratings 1-4) are treated as “pass” for grading purposes:

5 – Special Mention- Loans currently performing but with potential weaknesses including adverse trends in borrower’s operations, credit quality, financial strength, or possible collateral deficiency.

6 – Substandard- Loans that are inadequately protected by current sound worth, paying capacity, and collateral support. Loans on “nonaccrual” status. The loan needs special and corrective attention.

7 – Doubtful- Weaknesses in credit quality and collateral support make full collection improbable, but pending reasonable factors remain sufficient to defer the loss status.

8 – Loss- Continuance as a bankable asset is not warranted. However, this does not preclude future attempts at partial recovery.

Allowances for Loan Losses. A provision for loan losses is charged to operations based on management’s evaluation of the losses that may be incurred in our loan portfolio. In addition, our determination of the amount of the allowance for loan losses is subject to review by the New Jersey Department of Banking and Insurance and the FDIC, as part of their examination process. After a review of the information available, our regulators might require the establishment of an additional allowance. Any increase in the loan loss allowance required by regulators would have a negative impact on our earnings. Management reviews the adequacy of the allowance on at least a quarterly basis to ensure that the provision for loan losses has been charged against earnings in an amount necessary to maintain the allowance at a level that is adequate based on management’s assessment of probable estimated losses. The Company’s methodology for assessing the adequacy of the allowance for loan losses consists of several key elements. These elements include a general allocated allowance for impaired loans, a specific allowance for impaired loans, and an unallocated portion.

The Company consistently applies the following comprehensive methodology. During the quarterly review of the allowance for loan losses, the Company considers a variety of factors that include:

General economic conditions.

Trends in charge-offs.

Trends and levels of delinquent loans.

Trends and levels of non-performing loans, including loans over 90 days delinquent.

Trends in volume and terms of loans.

Levels of allowance for specific classified loans.

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Credit Concentrations

The methodology includes the segregation of the loan portfolio into two divisions. Loans that are performing and loans that are impaired. Loans which are performing are evaluated homogeneously by loan class or loan type. The allowance of performing loans are evaluated based on historical loan loss peer analysis with an adjustment for qualitative factors due to economic conditions in the market. Impaired loans are loans which are 60 or more days delinquent or troubled debt restructured. These loans are individually evaluated for loan loss either by current appraisal, estimated economic factor, or net present value. Impaired loans which do not produce a specific loan loss are reconsidered under the general valuation method of performing loans. Management reviews the overall estimate for feasibility and bases the loan loss provision accordingly. The Company also maintains an unallocated allowance. The unallocated allowance is used to cover any factors or conditions which may cause a potential loan loss but are not specifically identifiable. It is prudent to maintain an unallocated portion of the allowance because no matter how detailed an analysis of potential loan losses is performed, these estimates by definition lack precision. Management must make estimates using assumptions and information that is often subjective and changing rapidly.

The following table sets forth an analysis of the Bank’s allowance for loan losses.

	Years Ended December 31,
	2010			2009			2008			2007			2006
	(Dollars in Thousands)

Balance at beginning of period	$	6,644		$	5,304		$	4,065		$	3,733		$	3,090

Charge-offs:
Residential		—			—			—			—			—
Construction		15			—			90			270			—
Commercial business(1)		351			—			3			—			66
Commercial and multi-family		323			205			—			—			—
Home equity(2)		—			—			—			—			—
Consumer		—			7			8			15			1
Total charge-offs		689			212			101			285			67

Recoveries		12			2			40			17			85
Net charge-offs (recoveries)		677			210			61			268			(18	)
Provisions charged to operations		2,450			1,550			1,300			600			625
Ending balance	$	8,417		$	6,644		$	5,304		$	4,065		$	3,733

Ratio of non-performing assets to total assets at the end of period		4.10	%		2.09	%		0.89	%		0.81	%		0.06	%

Allowance for loan losses as a percent of total loans outstanding		1.08	%		1.62	%		1.28	%		1.10	%		1.16	%

Ratio of net charge-offs (recoveries) during the period to total loans outstanding at end of the period		0.09	%		0.05	%		0.01	%		0.07	%		(0.01	)%

Ratio of net charge-offs (recoveries) during the period to non-performing loans		1.62	%		1.79	%		1.64	%		6.27	%		(5.57	)%

____________

(1) Includes business lines of credit

(2) Includes home equity lines of credit

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Allocation of the Allowance for Loan Losses. The following table illustrates the allocation of the allowance for loan losses for each category of loan. The allocation of the allowance to each category is not necessarily indicative of future loss in any particular category and does not restrict our use of the allowance to absorb losses in other loan categories.

	At December 31,
	2010					2009					2008					2007					2006
	Amount		Percent of Loans in each Category in Total Loans			Amount		Percent of Loans in each Category in Total Loans			Amount		Percent of Loans in each Category in Total Loans			Amount		Percent of Loans in each Category in Total Loans			Amount		Percent of Loans in each Category in Total Loans
	(Dollars in Thousands)
Type of loan:
Residential	$	171		29.98	%	$	430		18.70	%	$	688		17.94	%	$	221		14.96	%	$	69		13.64	%
Construction		426		2.28			1,437		12.55			941		15.14			885		13.53			1,068		12.06
Home equity		204		8.13			186		8.39			167		9.22			172		9.58			126		10.02
Commercial and multi-family		6,179		52.45			4,184		54.71			3,175		54.07			2,476		56.35			2,285		59.60
Commercial business		1,286		6.93			365		5.50			216		3.42			262		5.38			168		4.56
Consumer		18		0.23			42		0.15			117		0.21			49		0.20			17		0.12
Unallocated		133		-			-		-			-		-			-		-			-		-
Total	$	8,417		100.00	%	$	6,644		100.00	%	$	5,304		100.00	%	$	4,065		100.00	%	$	3,733		100.00	%

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Investment Activities

Investment Securities. We are required under federal regulations to maintain a minimum amount of liquid assets that may be invested in specified short-term securities and certain other investments. The level of liquid assets varies depending upon several factors, including: (i) the yields on investment alternatives, (ii) our judgment as to the attractiveness of the yields then available in relation to other opportunities, (iii) expectation of future yield levels, and (iv) our projections as to the short-term demand for funds to be used in loan origination and other activities. Investment securities, including mortgage-backed securities, are classified at the time of purchase, based upon management’s intentions and abilities, as securities held-to-maturity or securities available for sale. Debt securities acquired with the intent and ability to hold to maturity are classified as held-to-maturity and are stated at cost and adjusted for amortization of premium and accretion of discount, which are computed using the level yield method and recognized as adjustments of interest income. All other debt and equity securities are classified as available for sale to serve principally as a source of liquidity.

Current regulatory and accounting guidelines regarding investment securities require us to categorize securities as held-to-maturity, available for sale or trading. As of December 31, 2010, the amortized cost of securities classified as held-to-maturity was $165.6 million. We had $1.1 million in securities classified as available for sale, and no securities classified as trading. Securities classified as available for sale are reported for financial reporting purposes at the fair value with net changes in the fair value from period to period included as a separate component of stockholders’ equity, net of income taxes. At December 31, 2010, our securities classified as held-to-maturity had a fair value of $166.8 million. Changes in the fair value of securities classified as held-to-maturity do not affect our income, unless we determine there to be an other-than-temporary impairment for those securities in an unrealized loss position. At December 31, 2010, management concluded that all unrealized losses were temporary in nature since they are related to interest rate fluctuations rather than any underlying credit quality of the issuers. Additionally, the Company has no plans to sell these securities and has concluded that it is unlikely it would have to sell these securities prior to the anticipated recovery of the unrealized losses. During the year ended December 31, 2010, we had no securities sales.

At December 31, 2010, our investment policy allowed investments in instruments such as: (i) U.S. Treasury obligations; (ii) U.S. federal agency or federally sponsored agency obligations; (iii) mortgage-backed securities; and (iv) certificates of deposit. The Board of Directors may authorize additional investments. At December 31, 2010, our U.S. Government agency securities totaled $30.8 million, all of which were classified as held-to-maturity and which primarily consisted of callable securities issued by government sponsored enterprises. Our level of U.S. government agency securities totaled $98.0 million at December 31, 2009. The decrease during 2010 reflects the maturity or call of $130.5 million in U.S. government agency securities.

As a source of liquidity and to supplement our lending activities, we have invested in residential mortgage-backed securities. Mortgage-backed securities generally yield less than the loans that underlie such securities because of the cost of payment guarantees or credit enhancements that reduce credit risk. Mortgage-backed securities can serve as collateral for borrowings and, through repayments, as a source of liquidity. Mortgage-backed securities

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represent a participation interest in a pool of single-family or other type of mortgages. Principal and interest payments are passed from the mortgage originators, through intermediaries (generally government-sponsored enterprises) that pool and repackage the participation interests in the form of securities, to investors, like us. The government-sponsored enterprises guarantee the payment of principal and interest to investors and include Freddie Mac, Ginnie Mae, and Fannie Mae.

Mortgage-backed securities typically are issued with stated principal amounts. The securities are backed by pools of mortgage loans that have interest rates that are within a set range and have varying maturities. The underlying pool of mortgages can be composed of either fixed rate or adjustable rate mortgage loans. Mortgage-backed securities are generally referred to as mortgage participation certificates or pass-through certificates. The interest rate risk characteristics of the underlying pool of mortgages (i.e., fixed rate or adjustable rate) and the prepayment risk, are passed on to the certificate holder. The life of a mortgage-backed pass-through security is equal to the life of the underlying mortgages. Expected maturities will differ from contractual maturities due to scheduled repayments and because borrowers may have the right to call or prepay obligations with or without prepayment penalties. As a result of our acquisition of Pamrapo Bancorp, Inc. and our own internal activities, our level of mortgage backed securities, all of which are classified as held to maturity, increased from $34.6 million at December 31, 2009 to $127.0 million at December 31, 2010.

Securities Portfolio. The following table sets forth the carrying value of our securities portfolio and FHLB stock at the dates indicated.

	At December 31,
	2010		2009		2008
	(In Thousands)
Securities available for sale:
Equity securities	$	1,098	$	1,346	$	888
Securities held to maturity:
U.S. Government and Agency securities		30,838		98,023		98,607
Mortgage-backed securities		126,955		34,621		42,673
Corporate subordinated notes		6,000		—		—
Municipal obligations		1,376		—		—
Trust originated preferred security		403		—		—
Total securities held to maturity		165,572		132,644		141,280
FHLB stock		6,723		5,714		5,736
Total investment securities	$	173,393	$	139,704	$	147,904

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The following table shows our securities held-to-maturity purchase, sale and repayment activities for the periods indicated.

	Years Ended December 31,
	2010			2009			2008
	(In Thousands)
Securities acquired through merger	$	86,770		$	—		$	—

Purchases:
Fixed-rate	$	104,997		$	147,647		$	60,606
Total purchases	$	104,997		$	147,647		$	60,606

Sales:
Fixed-rate	$	—		$	—		$	—
Total sales	$	—		$	—		$	—

Principal Repayments:
Repayment of principal	$	(156,757	)	$	155,553		$	84,400
Increase (decrease) in other items, net		(2,082	)		730			(58	)
Net (decreases) increases	$	32,928		$	(8,636	)	$	(23,850	)

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Maturities of Securities Portfolio. The following table sets forth information regarding the scheduled maturities, carrying values, estimated market values, and weighted average yields for the Bank’s debt securities portfolio at December 31, 2010 by contractual maturity. The following table does not take into consideration the effects of scheduled repayments or the effects of possible prepayments.

	As of December 31, 2010
	Within one year					More than One to five years					More than five to ten years					More than ten years					Total investment securities
	Carrying Value		Average Yield			Carrying Value		Average Yield			Carrying Value		Average Yield			Carrying Value		Average Yield			Fair Value		Carrying Value		Average Yield
	(Dollars in Thousands)
U.S. government agency securities	$	-		-		$	3,315		5.00	%	$	-		2.35	%	$	27,523		2.69	%	$	30,970	$	30,838		2.94	%

Mortgage-backed securities		6		6.00	%		775		2.74			54,629		-			71,545		3.96			128,054		126,955		3.26

Corporate subordinated notes		6,000		8.09			-		-			-		-			-		-			6,000		6,000		8.09

Municipal obligations		-		-			-		-			-		-			1,376		5.37			1,355		1,376		5.37

Trust originated preferred security		-		-			-		-			-		-			403		7.67			406		403		7.67

Total investment securities	$	6,006		8.09	%	$	4,090		4.57	%	$	54,629		2.35	%	$	100,847		3.65	%	$	166,785	$	165,572		3.40	%

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Sources of Funds

Our major external source of funds for lending and other investment purposes are deposits. Funds are also derived from the receipt of payments on loans, prepayment of loans, maturities of investment securities and mortgage-backed securities and borrowings. Scheduled loan principal repayments are a relatively stable source of funds, while deposit inflows and outflows and loan prepayments are significantly influenced by general interest rates and market conditions.

Deposits. Consumer and commercial deposits are attracted principally from within our primary market area through the offering of a selection of deposit instruments including demand, NOW, savings and club accounts, money market accounts, and term certificate accounts. Deposit account terms vary according to the minimum balance required, the time period the funds must remain on deposit, and the interest rate.

The interest rates paid by us on deposits are set at the direction of our senior management. Interest rates are determined based on our liquidity requirements, interest rates paid by our competitors, our growth goals, and applicable regulatory restrictions and requirements. At December 31, 2010, we had $6.3 million of brokered deposits.

Deposit Accounts. The following table sets forth the dollar amount of deposits in the various types of deposit programs we offered as of the dates indicated.

December 31,

2010

2009

2008

Weighted

Average

Rate(1)

Amount

Weighted

Average

Rate(1)

Amount