At December 31, 2010, the Company had $27 million in troubled debt restructurings (TDRs), primarily consisting of two $10 million classified partially secured commercial and industrial (C&I) loans and a classified $6.5 million secured, performing land loan in Roslyn, New York. The borrowers requested and were granted interest rate or other concessions. These credits have been on the Company's watch list since 2009 and 2008, respectively, and are fully advanced. The Company had TDRs amounting to $436 thousand at December 31, 2009 and $7.2 million at September 30, 2010.

As of December 31, 2010, the Company's allowance for loan losses amounted to $33 million or 2.9% of period-end loans outstanding. The allowance as a percentage of loans outstanding was 2.6% at December 31, 2009 and 2.9% at September 30, 2010.  

The Company recorded net loan charge-offs of $2.1 million in the fourth quarter of 2010 versus net charge-offs of $23.7 million in the fourth quarter of 2009 and $1.3 million in the third quarter of 2010. As a percentage of average total loans outstanding, these net amounts represented, on an annualized basis, 0.8% for the fourth quarter of 2010, 8.5% for the fourth quarter of 2009 and 0.5% for the third quarter of 2010. 

The Company has held no other real estate owned since 2005.

Capital

Total stockholders' equity was $155 million at December 31, 2010 compared to $149 million at December 31, 2009 and $154 million at September 30, 2010. The increase in stockholders' equity versus December 31, 2009 is largely reflective of net income earned in 2010 and the equity recorded as a result of the December 2009 exchange of the Company's $10 million 8.25% subordinated notes for an aggregate of 1,656,600 shares of common stock valued at $6.50 each.

Cash dividends of $0.20 per share, totaling $3.3 million, were paid to the Company's stockholders in 2010.