##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR
THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2007
 or
 o
    
    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 : 000-51525
 LEGACY BANCORP, INC.
  Delaware
    
    20-3135053(State or other jurisdiction of incorporation or organization)
    
    (IRS Employer Identification No.)
 99 NORTH STREET
PITTSFIELD, MASSACHUSETTS 01201
 (413) 443-4421
 
 þ o
  o þ o
 o þ
 9,457,926




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##### 



LEGACY BANCORP, INC.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
 Page No.Part I  Financial InformationItem 1 Financial StatementsConsolidated Balance Sheets as of September 30, 2007 and December 31, 2006
    
    
    2Consolidated Statements of Income for the three months ended September 30, 2007 and 2006 and the nine months ended September 30, 2007 and 2006
    
    
    3Consolidated Statements of Changes in Stockholders Equity for the nine months ended September 30, 2007 and 2006
    
    
    4Consolidated Statements of Cash Flows for the nine months ended September 30, 2007 and 2006
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    7Item 2 Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    8Item 3 Quantitative and Qualitative Disclosures about Market Risks
    
    
    20Item 4 Controls and Procedures
    
    
    21Part II  Other InformationItem 1 Legal Proceedings
    
    
    21Item 1A Risk Factors
    
    
    21Item 2 Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    21Item 3 Defaults Upon Senior Securities
    
    
    22Item 4 Submission of Matters to a Vote of Security Holders
    
    
    22Item 5 Other Information
    
    
    22Item 6 Exhibits
    
    
    23EX-31.1 Certification pursuant to Rule 13a-14(a)/15d-14(a) of J. Williar DunlaevyEX-31.2 Certification pursuant to Rule 13a-14(a)/15d-14(a) of Stephen M. ConleyEX-32 Certification pursuant to 18 U.S.C. Section 1350 CEO & CFO
  1




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##### Table of Contents



PART I  FINANCIAL INFORMATION
 
 Item 1: Financial Statements
 LEGACY BANCORP, INC. AND SUBSIDIARIES
 
 CONSOLIDATED BALANCE SHEETS
 (Dollars in thousands)
 September 30,
    
    
    December 31,2007
    
    
    2006(Unaudited)ASSETSCash and due from banks
    
    $
    11,090
    
    
    $
    10,442Short-term investments
    
    
    13,023
    
    
    
    11,202Cash and cash equivalents
    
    
    24,113
    
    
    
    21,644Securities and other investments
    
    
    159,432
    
    
    
    176,132Loans held for sale
    
    
    
    
    
    
    Loans, net of allowance for loan losses of $5,158
in 2007 and $4,677 in 2006
    
    
    630,395
    
    
    
    578,802Premises and equipment, net
    
    
    17,405
    
    
    
    15,416Accrued interest receivable
    
    
    3,997
    
    
    
    3,552Goodwill, net
    
    
    3,085
    
    
    
    3,085Net deferred tax asset
    
    
    4,564
    
    
    
    4,474Bank-owned life insurance
    
    
    14,601
    
    
    
    4,424Other assets
    
    
    828
    
    
    
    789$
    858,420
    
    
    $
    808,318LIABILITIES AND STOCKHOLDERS EQUITYDeposits
    
    $
    540,856
    
    
    $
    518,248Securities sold under agreements to repurchase
    
    
    3,270
    
    
    
    5,575Federal Home Loan Bank advances
    
    
    168,574
    
    
    
    127,438Mortgagors escrow accounts
    
    
    1,116
    
    
    
    944Accrued expenses and other liabilities
    
    
    7,318
    
    
    
    6,116Total liabilities
    
    
    721,134
    
    
    
    658,321Commitments and contingenciesStockholders EquityPreferred Stock ($.01 par value, 10,000,000 shares
authorized, none issued or outstanding)
    
    
    
    
    
    
    Common Stock ($.01 par value, 40,000,000 shares
authorized and 10,308,600 issued at September 30, 2007 and
December 31, 2006; 9,582,826 outstanding at September 30,
2007, and 10,308,600 outstanding at December 31, 2006)
    
    
    103
    
    
    
    103Additional paid-in-capital
    
    
    101,653
    
    
    
    106,094Unearned Compensation  ESOP
    
    
    (8,970
    )
    
    
    (9,519
    )Unearned Compensation  Equity Incentive Plan
    
    
    (4,569
    )
    
    
    (5,375
    )Retained earnings
    
    
    59,481
    
    
    
    58,863Accumulated other comprehensive income (loss)
    
    
    229
    
    
    
    (169
    )Treasury stock, at cost (725,774 shares at September 30, 2007 and no shares at December 31, 2006)
    
    
    (10,641
    )
    
    
    Total stockholders equity
    
    
    137,286
    
    
    
    149,997$
    858,420
    
    
    $
    808,318
  2




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##### Table of Contents



LEGACY BANCORP, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF INCOME
 (Dollars in thousands)
 Three months ended September 30,
    
    
    Nine months ended September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006(Unaudited)
    
    
    (Unaudited)Interest and dividend income:Loans
    
    $
    10,321
    
    
    $
    9,235
    
    
    $
    29,861
    
    
    $
    26,609Securities:Taxable
    
    
    2,039
    
    
    
    1,865
    
    
    
    6,109
    
    
    
    5,424Tax-Exempt
    
    
    64
    
    
    
    62
    
    
    
    196
    
    
    
    177Short-term investments
    
    
    120
    
    
    
    85
    
    
    
    413
    
    
    
    296Total interest and dividend income
    
    
    12,544
    
    
    
    11,247
    
    
    
    36,579
    
    
    
    32,506Interest expense:Deposits
    
    
    4,692
    
    
    
    3,737
    
    
    
    13,337
    
    
    
    9,706Federal Home Loan Bank advances
    
    
    1,863
    
    
    
    1,629
    
    
    
    5,253
    
    
    
    4,812Other borrowed funds
    
    
    30
    
    
    
    31
    
    
    
    93
    
    
    
    99Total interest expense
    
    
    6,585
    
    
    
    5,397
    
    
    
    18,683
    
    
    
    14,617Net interest income
    
    
    5,959
    
    
    
    5,850
    
    
    
    17,896
    
    
    
    17,889Provision for loan losses
    
    
    160
    
    
    
    (95
    )
    
    
    598
    
    
    
    245Net interest income after provision for loan losses
    
    
    5,799
    
    
    
    5,945
    
    
    
    17,298
    
    
    
    17,644Non-interest income:Customer service fees
    
    
    700
    
    
    
    686
    
    
    
    2,348
    
    
    
    1,994Portfolio management fees
    
    
    293
    
    
    
    240
    
    
    
    856
    
    
    
    739Income from bank owned life insurance
    
    
    192
    
    
    
    89
    
    
    
    314
    
    
    
    142Insurance, annuities and mutual fund fees
    
    
    61
    
    
    
    58
    
    
    
    169
    
    
    
    122Gain on sales of securities, net
    
    
    166
    
    
    
    (14
    )
    
    
    559
    
    
    
    152Gain on sales of loans, net
    
    
    74
    
    
    
    58
    
    
    
    172
    
    
    
    124Miscellaneous
    
    
    11
    
    
    
    11
    
    
    
    31
    
    
    
    32Total non-interest income
    
    
    1,497
    
    
    
    1,128
    
    
    
    4,449
    
    
    
    3,305Non-interest expenses:Salaries and employee benefits
    
    
    4,018
    
    
    
    2,885
    
    
    
    11,590
    
    
    
    8,670Occupancy and equipment
    
    
    723
    
    
    
    613
    
    
    
    2,137
    
    
    
    1,886Data processing
    
    
    639
    
    
    
    501
    
    
    
    1,673
    
    
    
    1,471Professional fees
    
    
    230
    
    
    
    335
    
    
    
    749
    
    
    
    1,101Advertising
    
    
    176
    
    
    
    165
    
    
    
    620
    
    
    
    553Other general and administrative
    
    
    720
    
    
    
    512
    
    
    
    2,258
    
    
    
    1,873Total non-interest expenses
    
    
    6,506
    
    
    
    5,011
    
    
    
    19,027
    
    
    
    15,554Income before income taxes
    
    
    790
    
    
    
    2,062
    
    
    
    2,720
    
    
    
    5,395Provision for income taxes
    
    
    270
    
    
    
    759
    
    
    
    982
    
    
    
    1,998Net income
    
    $
    520
    
    
    $
    1,303
    
    
    $
    1,738
    
    
    $
    3,397Earnings per shareBasic
    
    $
    0.06
    
    
    $
    0.14
    
    
    $
    0.19
    
    
    $
    0.36Diluted
    
    $
    0.06
    
    
    $
    0.14
    
    
    $
    0.19
    
    
    $
    0.36Weighted average shares outstandingBasic
    
    
    8,724,814
    
    
    
    9,566,530
    
    
    
    9,021,472
    
    
    
    9,552,888Diluted
    
    
    8,741,902
    
    
    
    9,566,530
    
    
    
    9,043,883
    
    
    
    9,552,888
  3




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##### Table of Contents



LEGACY BANCORP, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY
 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
 (Dollars in thousands)
 (Unaudited)
 Unearned
    
    
    
    
    
    
    AccumulatedAdditional
    
    
    Unearned
    
    
    Compensation -
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    TotalCommon Stock
    
    
    Paid-in
    
    
    Compensation -
    
    
    Equity
    
    
    Retained
    
    
    Comprehensive
    
    
    Treasury
    
    
    StockholdersShares
    
    
    Amount
    
    
    Capital
    
    
    ESOP
    
    
    Incentive Plan
    
    
    Earnings
    
    
    Income (Loss)
    
    
    Stock
    
    
    EquityBalance at December 31, 2005
    
    
    10,308,600
    
    
    $
    103
    
    
    $
    100,202
    
    
    $
    (10,252
    )
    
    $
    
    
    
    $
    57,202
    
    
    $
    (1,089
    )
    
    $
    
    
    
    $
    146,166Comprehensive income:Net Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,397
    
    
    
    
    
    
    
    
    
    
    
    3,397Net unrealized gain on securities
available for sale, net of reclassification
adjustment and tax effects
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    273
    
    
    
    
    
    
    
    273Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,670Cash dividends declared ($0.09 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (859
    )
    
    
    
    
    
    
    
    
    
    
    (859
    )Common stock held by ESOP committed
to be released (41,235 shares)
    
    
    
    
    
    
    
    
    
    
    67
    
    
    
    550
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    617Balance at September 30, 2006
    
    
    10,308,600
    
    
    $
    103
    
    
    $
    100,269
    
    
    $
    (9,702
    )
    
    $
    
    
    
    $
    59,740
    
    
    $
    (816
    )
    
    $
    
    
    
    $
    149,594Balance at December 31, 2006
    
    
    10,308,600
    
    
    $
    103
    
    
    $
    106,094
    
    
    $
    (9,519
    )
    
    $
    (5,375
    )
    
    $
    58,863
    
    
    $
    (169
    )
    
    $
    
    
    
    $
    149,997Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,738
    
    
    
    
    
    
    
    
    
    
    
    1,738Net unrealized gain on securities
available for sale, net of reclassification
adjustment and tax effects
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    398
    
    
    
    
    
    
    
    398Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,136Cash dividends declared ($0.12 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,120
    )
    
    
    
    
    
    
    
    
    
    
    (1,120
    )Common stock repurchased  Restricted stock
portion of 2006 Equity Incentive Plan (412,344 shares)
    
    
    (65,844
    )
    
    
    

    
    
    
    (5,579
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,080
    )
    
    
    (6,659
    )Common stock repurchased  5% Stock Repurchase
Program announced April 2007
    
    
    (515,430
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,534
    )
    
    
    (7,534
    )Common stock repurchased  5% Stock Repurchase
Program announced August 2007
    
    
    (144,500
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,027
    )
    
    
    (2,027
    )Stock option expense
    
    
    
    
    
    
    
    
    
    
    1,071
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,071Restricted stock expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    806
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    806Common stock held by ESOP committed
to be released (41,235 shares)
    
    
    
    
    
    
    
    
    
    
    67
    
    
    
    549
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    616Balance at September 30, 2007
    
    
    9,582,826
    
    
    $
    103
    
    
    $
    101,653
    
    
    $
    (8,970
    )
    
    $
    (4,569
    )
    
    $
    59,481
    
    
    $
    229
    
    
    $
    (10,641
    )
    
    $
    137,286
  4




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##### Table of Contents



LEGACY BANCORP, INC.
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Dollars in thousands)
 Nine Months ended September 30,2007
    
    
    2006(Unaudited)Cash flows from operating activities:Net income
    
    $
    1,738
    
    
    $
    3,397Adjustments to reconcile net income to net cash
provided by operating activities:Provision for loan losses
    
    
    598
    
    
    
    245Net accretion of securities
    
    
    (702
    )
    
    
    (854
    )Depreciation and amortization expense
    
    
    871
    
    
    
    757Gain on sales of securities, net
    
    
    (559
    )
    
    
    (152
    )Gain on sales of loans, net
    
    
    (172
    )
    
    
    (124
    )Loans originated for sale
    
    
    (11,781
    )
    
    
    (7,480
    )Proceeds from sale of loans
    
    
    11,953
    
    
    
    7,282Share-based compensation expense
    
    
    1,877
    
    
    
    Deferred tax provision
    
    
    (335
    )
    
    
    (164
    )Employee Stock Ownership Plan expense
    
    
    616
    
    
    
    617Net change in:Bank-owned life insurance
    
    
    (363
    )
    
    
    (190
    )Accrued interest receivable
    
    
    (445
    )
    
    
    (473
    )Other assets
    
    
    (39
    )
    
    
    101Accrued expenses and other liabilities
    
    
    1,202
    
    
    
    152Net cash provided by operating activities
    
    
    4,459
    
    
    
    3,114Cash flows from investing activities:Activity in available-for-sale securities:Sales
    
    
    6,645
    
    
    
    1,593Maturities, prepayments and calls
    
    
    66,774
    
    
    
    72,180Purchases
    
    
    (53,632
    )
    
    
    (69,841
    )Purchase of Federal Home Loan Bank stock
    
    
    (320
    )
    
    
    Purchase of other investments
    
    
    (903
    )
    
    
    (1,063
    )Maturities, prepayments and call of other investments
    
    
    40
    
    
    
    42Loan originations and purchases, net of principal payments
    
    
    (52,191
    )
    
    
    (27,808
    )Purchases of bank-owned life insurance
    
    
    (9,814
    )
    
    
    Additions to premises and equipment
    
    
    (2,860
    )
    
    
    (893
    )Net cash used in investing activities
    
    
    (46,261
    )
    
    
    (25,790
    )
   5




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##### Table of Contents



LEGACY BANCORP, INC.
 CONSOLIDATED STATEMENTS OF CASH FLOWS (Concluded)
 (Dollars in thousands)
 Nine Months ended September 30,2007
    
    
    2006(Unaudited)Cash flows from financing activities:Net increase in deposits
    
    
    22,608
    
    
    
    32,682Net decrease in securities sold under
agreements to repurchase
    
    
    (2,305
    )
    
    
    (1,467
    )Repayment of Federal Home Loan Bank advances
    
    
    (157,656
    )
    
    
    (139,285
    )Proceeds from Federal Home Loan Bank advances
    
    
    198,792
    
    
    
    131,239Net increase in mortgagors escrow accounts
    
    
    172
    
    
    
    338Repurchase of common stock
    
    
    (16,220
    )
    
    
    Payment of dividends on common stock
    
    
    (1,120
    )
    
    
    (859
    )Net cash provided by financing activities
    
    
    44,271
    
    
    
    22,648Net change in cash and cash equivalents
    
    
    2,469
    
    
    
    (28
    )Cash and cash equivalents at beginning of period
    
    
    21,644
    
    
    
    19,232Cash and cash equivalents at end of period
    
    $
    24,113
    
    
    $
    19,204Supplemental cash flow information:Interest paid on deposits
    
    $
    13,260
    
    
    $
    10,201Interest paid on Federal Home Loan Bank advances
    
    
    5,151
    
    
    
    5,832Interest paid on other borrowed funds
    
    
    93
    
    
    
    99Income taxes paid
    
    
    1,480
    
    
    
    2,025
  6




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##### Table of Contents



LEGACY BANCORP AND SUBSIDIARIES
 
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (Unaudited)
 1. Basis of presentation
  2. Recent Accounting Pronouncements
 Accounting for Servicing of Financial Assets Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities
 Accounting for
Uncertainty in Income Taxes
 Fair Value
Measurement
 Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement
Split-Dollar Life Insurance Arrangements
 7




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##### Table of Contents



The Fair
Value Option for Financial Assets and Financial Liabilities
 3. Earnings Per Share
  Three months ended September 30,
    
    
    Nine months ended September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net income applicable to common stock (000s)
    
    $
    520
    
    
    $
    1,303
    
    
    $
    1,738
    
    
    $
    3,397Average number of shares issued
    
    
    10,308,600
    
    
    
    10,308,600
    
    
    
    10,308,600
    
    
    
    10,308,600Less: average unallocated ESOP shares
    
    
    (687,091
    )
    
    
    (742,070
    )
    
    
    (700,733
    )
    
    
    (755,712
    )Less: average treasury shares
    
    
    (550,195
    )
    
    
    
    
    
    
    (239,895
    )
    
    
    Less: unvested restricted stock awards
    
    
    (346,500
    )
    
    
    
    
    
    
    (346,500
    )
    
    
    Average number of basic shares outstanding
    
    
    8,724,814
    
    
    
    9,566,530
    
    
    
    9,021,472
    
    
    
    9,552,888Plus: dilutive unvested restricted stock awards
    
    
    17,088
    
    
    
    
    
    
    
    22,411
    
    
    
    Plus: diluted stock option shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Average number of diluted shares outstanding
    
    
    8,741,902
    
    
    
    9,566,530
    
    
    
    9,043,883
    
    
    
    9,552,888Basic earnings per share
    
    $
    0.06
    
    
    $
    0.14
    
    
    $
    0.19
    
    
    $
    0.36Diluted earnings per share
    
    $
    0.06
    
    
    $
    0.14
    
    
    $
    0.19
    
    
    $
    0.36
 4. Dividends
  5. Loan Commitments and other Contingencies
  
 Item 2: Managements Discussion and Analysis of Financial Condition and Results of Operations
  8




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##### Table of Contents



Forward-Looking Statements
  Critical Accounting Policies
  Allowance for Loan Losses.
 Income Taxes.
  Comparison of Financial Condition at September 30, 2007 and December 31, 2006
 Overview:
 Investment Activities Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds
 9




---



##### Table of Contents



At September 30, 2007
    
    
    At December 31, 2006Amortized
    
    
    
    
    
    
    Amortized
    
    
    FairCost
    
    
    Fair Value
    
    
    Cost
    
    
    Value(Dollars in Thousands)Securities available for sale:Government-sponsored enterprises
    
    $
    74,032
    
    
    $
    74,200
    
    
    $
    91,181
    
    
    $
    90,906Municipal bonds
    
    
    7,912
    
    
    
    7,869
    
    
    
    7,199
    
    
    
    7,174Corporate bonds and other obligations
    
    
    1,500
    
    
    
    1,505
    
    
    
    2,971
    
    
    
    2,977Mortgage-backed securities
    
    
    52,680
    
    
    
    52,490
    
    
    
    54,165
    
    
    
    53,838Total debt securities
    
    
    136,124
    
    
    
    136,064
    
    
    
    155,516
    
    
    
    154,895Common stock
    
    
    6,878
    
    
    
    8,266
    
    
    
    6,013
    
    
    
    7,318Total securities available for sale
    
    
    143,002
    
    
    
    144,330
    
    
    
    161,529
    
    
    
    162,213Securities held to maturity:Other bonds and obligations
    
    
    97
    
    
    
    97
    
    
    
    97
    
    
    
    97Restricted equity securities and other investments:Federal Home Loan Bank of Boston stock
    
    
    9,319
    
    
    
    9,319
    
    
    
    8,999
    
    
    
    8,999Savings Bank Life Insurance
    
    
    1,709
    
    
    
    1,709
    
    
    
    1,709
    
    
    
    1,709Other investments
    
    
    3,977
    
    
    
    3,977
    
    
    
    3,114
    
    
    
    3,114Total restricted equity securities
and other investments
    
    
    15,005
    
    
    
    15,005
    
    
    
    13,822
    
    
    
    13,822Total securities
    
    $
    158,104
    
    
    $
    159,432
    
    
    $
    175,448
    
    
    $
    176,132
 Lending Activities:
 At September 30, 2007
    
    
    At December 31, 2006Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent(Dollars in Thousands)Mortgage loans on real estate:Residential
    
    $
    347,409
    
    
    
    54.77
    %
    
    $
    325,407
    
    
    
    55.85
    %Commercial
    
    
    194,708
    
    
    
    30.70
    
    
    
    170,971
    
    
    
    29.35Home equity
    
    
    56,932
    
    
    
    8.97
    
    
    
    56,856
    
    
    
    9.76599,049
    
    
    
    94.44
    
    
    
    553,234
    
    
    
    94.96Other loans:Commercial
    
    
    24,654
    
    
    
    3.89
    
    
    
    22,903
    
    
    
    3.93Consumer and other
    
    
    10,581
    
    
    
    1.67
    
    
    
    6,451
    
    
    
    1.1135,235
    
    
    
    5.56
    
    
    
    29,354
    
    
    
    5.04Total loans
    
    
    634,284
    
    
    
    100.00
    %
    
    
    582,588
    
    
    
    100.00
    %Other Items:Net deferred loan costs
    
    
    1,269
    
    
    
    
    
    
    
    891Unamortized premiums
    
    
    
    
    
    
    
    
    
    
    Allowance for loan losses
    
    
    (5,158
    )
    
    
    
    
    
    
    (4,677
    )Total Loans, net
    
    $
    630,395
    
    
    
    
    
    
    $
    578,802
 10




---



##### Table of Contents



Non-performing Assets:
 At September 30,
    
    
    At December 31,2007
    
    
    2006(Dollars in Thousands)Non-accrual loans:Residential mortgage
    
    $
    383
    
    
    $
    483Commercial mortgage
    
    
    348
    
    
    
    179Commercial
    
    
    303
    
    
    
    132Home equity, consumer and other
    
    
    65
    
    
    
    85Total non-accrual loans
    
    
    1,099
    
    
    
    879Loans greater than 90 days delinquent and still accruing:Residential mortgage
    
    
    
    
    
    
    Commercial mortgage
    
    
    
    
    
    
    Commercial
    
    
    
    
    
    
    Home equity, consumer and other
    
    
    
    
    
    
    Total loans 90 days delinquent and still accruing
    
    
    
    
    
    
    Total non-performing assets
    
    $
    1,099
    
    
    $
    879Troubled debt restructurings
    
    $
    
    
    
    $
    943Ratios:Non-performing loans to total loans
    
    
    0.17
    %
    
    
    0.15
    %Non-performing assets to total assets
    
    
    0.13
    %
    
    
    0.11
    %
 Allowance for Loan Losses :
  11




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##### Table of Contents



At or for the Three Months
    
    
    At or for the Nine MonthsEnded September 30,
    
    
    Ended September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006(Dollars in Thousands)Balance at beginning of period
    
    $
    5,043
    
    
    $
    4,693
    
    
    $
    4,677
    
    
    $
    4,220Charge-offs:Mortgage loans on real estate:
    
    
    
    
    
    
    
    
    
    
    (31
    )
    
    
    (50
    )Other loans:Commercial
    
    
    (28
    )
    
    
    (2
    )
    
    
    (46
    )
    
    
    (7
    )Consumer and other
    
    
    (29
    )
    
    
    (23
    )
    
    
    (89
    )
    
    
    (72
    )Total other loans
    
    
    (57
    )
    
    
    (25
    )
    
    
    (135
    )
    
    
    (79
    )Total charge-offs
    
    
    (57
    )
    
    
    (25
    )
    
    
    (166
    )
    
    
    (129
    )Recoveries:Mortgage loans on real estate
    
    
    
    
    
    
    3
    
    
    
    11
    
    
    
    3Other loans:Commercial
    
    
    
    
    
    
    104
    
    
    
    3
    
    
    
    306Consumer and other
    
    
    12
    
    
    
    11
    
    
    
    35
    
    
    
    46Total other loans
    
    
    12
    
    
    
    115
    
    
    
    38
    
    
    
    352Total recoveries
    
    
    12
    
    
    
    118
    
    
    
    49
    
    
    
    355Net (charge-offs) recoveries
    
    
    (45
    )
    
    
    93
    
    
    
    (117
    )
    
    
    226Provision for loan losses
    
    
    160
    
    
    
    (95
    )
    
    
    598
    
    
    
    245Balance at end of period
    
    $
    5,158
    
    
    $
    4,691
    
    
    $
    5,158
    
    
    $
    4,691Ratios:Net (charge-offs) recoveries to average loans outstanding  annualized
    
    
    (0.03
    %)
    
    
    0.06
    %
    
    
    (0.03
    %)
    
    
    0.05
    %Allowance for loan losses to non-performing loans at end of period
    
    
    469.34
    %
    
    
    749.36
    %
    
    
    469.34
    %
    
    
    749.36
    %Allowance for loan losses to total loans at end of period
    
    
    0.81
    %
    
    
    0.81
    %
    
    
    0.81
    %
    
    
    0.81
    %
 12




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##### Table of Contents



Deposits
 At September 30, 2007
    
    
    At December 31, 2006Balance
    
    
    Percent
    
    
    Balance
    
    
    Percent(Dollars in Thousands)
    
    
    (Dollars in Thousands)Deposit type:Demand
    
    $
    51,332
    
    
    
    9.49
    %
    
    $
    50,753
    
    
    
    9.79
    %Regular savings
    
    
    44,368
    
    
    
    8.20
    
    
    
    50,939
    
    
    
    9.83Relationship Savings
    
    
    102,463
    
    
    
    18.95
    
    
    
    93,017
    
    
    
    17.95Money market deposits
    
    
    65,524
    
    
    
    12.11
    
    
    
    58,097
    
    
    
    11.21NOW deposits
    
    
    33,786
    
    
    
    6.25
    
    
    
    37,553
    
    
    
    7.24Total transaction accounts
    
    
    297,473
    
    
    
    55.00
    
    
    
    290,359
    
    
    
    56.02Certificates of deposit
    
    
    243,383
    
    
    
    45.00
    
    
    
    227,889
    
    
    
    43.98Total deposits
    
    $
    540,856
    
    
    
    100.00
    %
    
    $
    518,248
    
    
    
    100.00
    %
  Borrowings
 Stockholders Equity
 Comparison of Operating Results for the Three Months Ended September 30, 2007 and 2006
  Analysis of Net Interest Income
  13




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##### Table of Contents



Three Months Ended September 30, 2007
    
    
    Three Months Ended September 30, 2006Average
    
    
    
    
    
    
    
    
    
    
    AverageOutstanding
    
    
    
    
    
    
    
    
    
    
    OutstandingBalance
    
    
    Interest
    
    
    Yield/ Rate(1)
    
    
    Balance
    
    
    Interest
    
    
    Yield/ Rate(1)(Dollars in thousands)Interest-earning assets:Loans  Net (2)
    
    $
    622,526
    
    
    $
    10,321
    
    
    
    6.63
    %
    
    $
    572,365
    
    
    $
    9,235
    
    
    
    6.45
    %Investment securities
    
    
    161,879
    
    
    
    2,103
    
    
    
    5.20
    %
    
    
    174,439
    
    
    
    1,927
    
    
    
    4.42
    %Short-term investments
    
    
    9,649
    
    
    
    120
    
    
    
    4.97
    %
    
    
    6,455
    
    
    
    85
    
    
    
    5.27
    %Total interest-earning assets
    
    
    794,054
    
    
    
    12,544
    
    
    
    6.32
    %
    
    
    753,259
    
    
    
    11,247
    
    
    
    5.97
    %Non-interest-earning assets
    
    
    52,734
    
    
    
    
    
    
    
    
    
    
    
    41,496Total assets
    
    $
    846,788
    
    
    
    
    
    
    
    
    
    
    $
    794,755Interest-bearing liabilities:Savings deposits
    
    $
    45,564
    
    
    
    51
    
    
    
    0.45
    %
    
    $
    56,515
    
    
    
    62
    
    
    
    0.44
    %Relationship Savings
    
    
    105,654
    
    
    
    1,028
    
    
    
    3.89
    %
    
    
    80,499
    
    
    
    856
    
    
    
    4.25
    %Money market
    
    
    58,307
    
    
    
    571
    
    
    
    3.92
    %
    
    
    52,133
    
    
    
    421
    
    
    
    3.23
    %NOW accounts
    
    
    35,082
    
    
    
    58
    
    
    
    0.66
    %
    
    
    37,220
    
    
    
    36
    
    
    
    0.39
    %Certificates of deposits
    
    
    245,401
    
    
    
    2,984
    
    
    
    4.86
    %
    
    
    219,435
    
    
    
    2,362
    
    
    
    4.31
    %Total interest-bearing deposits
    
    
    490,008
    
    
    
    4,692
    
    
    
    3.83
    %
    
    
    445,802
    
    
    
    3,737
    
    
    
    3.35
    %Borrowed Funds
    
    
    159,315
    
    
    
    1,893
    
    
    
    4.75
    %
    
    
    145,218
    
    
    
    1,660
    
    
    
    4.57
    %Total interest-bearing liabilities
    
    
    649,323
    
    
    
    6,585
    
    
    
    4.06
    %
    
    
    591,020
    
    
    
    5,397
    
    
    
    3.65
    %Non-interest-bearing liabilities
    
    
    57,376
    
    
    
    
    
    
    
    
    
    
    
    57,262Total liabilities
    
    
    706,699
    
    
    
    
    
    
    
    
    
    
    
    648,282Equity
    
    
    140,089
    
    
    
    
    
    
    
    
    
    
    
    146,473Total liabilities and equity
    
    $
    846,788
    
    
    
    
    
    
    
    
    
    
    $
    794,755Net interest income
    
    
    
    
    
    $
    5,959
    
    
    
    
    
    
    
    
    
    
    $
    5,850Net interest rate spread (3)
    
    
    
    
    
    
    
    
    
    
    2.26
    %
    
    
    
    
    
    
    
    
    
    
    2.32
    %Net interest-earning assets (4)
    
    $
    144,731
    
    
    
    
    
    
    
    
    
    
    $
    162,239Net interest margin (5)
    
    
    
    
    
    
    
    
    
    
    3.00
    %
    
    
    
    
    
    
    
    
    
    
    3.11
    %Average interest-earning assets to interest-bearing liabilities
    
    
    
    
    
    
    
    
    122.29
    %
    
    
    
    
    
    
    
    
    
    
    127.45
    %
 
 (1)
    
    Yields and rates for the three months ended September 30, 2007 and 2006 are annualized.(2)
    
    Includes loans held for sale.(3)
    
    Net interest rate spread represents the difference between the yield on total average
interest-earning assets and the cost of total average
interest-bearing liabilities for the three months ended September 30, 2007 and 2006.(4)
    
    Net interest-earning assets represents total interest-earning assets less total
interest-bearing liabilities.(5)
    
    Net interest margin represents net interest income divided by average total interest-earning
assets.  14




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##### Table of Contents



Three Months Ended September 30,2007 vs. 2006Increase
    
    Total(Decrease) Due to
    
    IncreaseVolume
    
    Rate
    
    (Decrease)(Dollars in thousands)Interest-earning assets:Loans  Net
    
    $
    823
    
    
    $
    263
    
    
    $
    1,086Investment securities
    
    
    (122
    )
    
    
    298
    
    
    
    176Short-term investments
    
    
    40
    
    
    
    (5
    )
    
    
    35Total interest-earning assets
    
    
    741
    
    
    
    556
    
    
    
    1,297Interest-bearing liabilities:Savings deposits
    
    
    (12
    )
    
    
    1
    
    
    
    (11
    )Relationship Savings
    
    
    236
    
    
    
    (64
    )
    
    
    172Money market
    
    
    54
    
    
    
    96
    
    
    
    150NOW accounts
    
    
    (2
    )
    
    
    24
    
    
    
    22Certificates of deposits
    
    
    299
    
    
    
    323
    
    
    
    622Total deposits
    
    
    575
    
    
    
    380
    
    
    
    955Borrowed Funds
    
    
    166
    
    
    
    67
    
    
    
    233Total interest-bearing liabilities
    
    
    741
    
    
    
    447
    
    
    
    1,188Change in net interest income
    
    $
    
    
    
    $
    109
    
    
    $
    109
 Net interest income
 Interest income
 Interest expense
 Provision for loan loss expense
 15




---



##### Table of Contents



Non-interest income
 Non-interest expense
 Income tax expense
 Comparison of Operating Results for the Nine Months Ended September 30, 2007 and 2006
  Analysis of Net Interest Income
   16




---



##### Table of Contents



Nine Months Ended September 30, 2007
    
    
    Nine Months Ended September 30, 2006Average
    
    
    
    
    
    
    
    
    
    
    AverageOutstanding
    
    
    
    
    
    
    
    
    
    OutstandingBalance
    
    
    Interest
    
    
    Yield/ Rate(1)
    
    
    Balance
    
    
    Interest
    
    
    Yield/ Rate(1)(Dollars in thousands)Interest-earning assets:Loans  Net (2)
    
    $
    604,706
    
    
    $
    29,861
    
    
    
    6.58
    %
    
    $
    561,975
    
    
    $
    26,609
    
    
    
    6.31
    %Investment securities
    
    
    165,529
    
    
    
    6,305
    
    
    
    5.08
    %
    
    
    175,121
    
    
    
    5,601
    
    
    
    4.26
    %Short-term investments
    
    
    11,120
    
    
    
    413
    
    
    
    4.95
    %
    
    
    8,199
    
    
    
    296
    
    
    
    4.81
    %Total interest-earning assets
    
    
    781,355
    
    
    
    36,579
    
    
    
    6.24
    %
    
    
    745,295
    
    
    
    32,506
    
    
    
    5.82
    %Non-interest-earning assets
    
    
    48,303
    
    
    
    
    
    
    
    
    
    
    
    41,041Total assets
    
    $
    829,658
    
    
    
    
    
    
    
    
    
    
    $
    786,336Interest-bearing liabilities:Savings deposits
    
    $
    47,401
    
    
    
    155
    
    
    
    0.44
    %
    
    $
    58,341
    
    
    
    191
    
    
    
    0.44
    %Relationship Savings
    
    
    100,466
    
    
    
    3,020
    
    
    
    4.01
    %
    
    
    74,426
    
    
    
    2,032
    
    
    
    3.64
    %Money market
    
    
    54,395
    
    
    
    1,492
    
    
    
    3.66
    %
    
    
    52,865
    
    
    
    1,109
    
    
    
    2.80
    %NOW accounts
    
    
    35,546
    
    
    
    171
    
    
    
    0.64
    %
    
    
    38,159
    
    
    
    80
    
    
    
    0.28
    %Certificates of deposits
    
    
    238,669
    
    
    
    8,499
    
    
    
    4.75
    %
    
    
    210,957
    
    
    
    6,294
    
    
    
    3.98
    %Total interest-bearing deposits
    
    
    476,477
    
    
    
    13,337
    
    
    
    3.73
    %
    
    
    434,748
    
    
    
    9,706
    
    
    
    2.98
    %Borrowed Funds
    
    
    152,396
    
    
    
    5,346
    
    
    
    4.68
    %
    
    
    149,577
    
    
    
    4,911
    
    
    
    4.38
    %Total interest-bearing liabilities
    
    
    628,873
    
    
    
    18,683
    
    
    
    3.96
    %
    
    
    584,325
    
    
    
    14,617
    
    
    
    3.34
    %Non-interest-bearing liabilities
    
    
    56,529
    
    
    
    
    
    
    
    
    
    
    
    56,086Total liabilities
    
    
    685,402
    
    
    
    
    
    
    
    
    
    
    
    640,411Equity
    
    
    144,256
    
    
    
    
    
    
    
    
    
    
    
    145,925Total liabilities and equity
    
    $
    829,658
    
    
    
    
    
    
    
    
    
    
    $
    786,336Net interest income
    
    
    
    
    
    $
    17,896
    
    
    
    
    
    
    
    
    
    
    $
    17,889Net interest rate spread (3)
    
    
    
    
    
    
    
    
    
    
    2.28
    %
    
    
    
    
    
    
    
    
    
    
    2.48
    %Net interest-earning assets (4)
    
    $
    152,482
    
    
    
    
    
    
    
    
    
    
    $
    160,970Net interest margin (5)
    
    
    
    
    
    
    
    
    
    
    3.05
    %
    
    
    
    
    
    
    
    
    
    
    3.20
    %Average interest-earning assets
to interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    124.25
    %
    
    
    
    
    
    
    
    
    
    
    127.55
    %
 
 (1)
    
    Yields and rates for the nine months ended September 30, 2007 and 2006 are annualized.(2)
    
    Includes loans held for sale.(3)
    
    Net interest rate spread represents the difference between the yield on total average
interest-earning assets and the cost of total average
interest-bearing liabilities for the nine months ended September 30, 2007 and 2006.(4)
    
    Net interest-earning assets represents total interest-earning assets less total
interest-bearing liabilities.(5)
    
    Net interest margin represents net interest income divided by average total interest-earning
assets.  17




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##### Table of Contents



Nine Months Ended September 30,2007 vs. 2006Increase
    
    Total(Decrease) Due to
    
    IncreaseVolume
    
    Rate
    
    (Decrease)(Dollars in thousands)Interest-earning assets:Loans  Net
    
    $
    2,081
    
    
    $
    1,171
    
    
    $
    3,252Investment securities
    
    
    (279
    )
    
    
    983
    
    
    
    704Short-term investments
    
    
    108
    
    
    
    9
    
    
    
    117Total interest-earning assets
    
    
    1,910
    
    
    
    2,163
    
    
    
    4,073Interest-bearing liabilities:Savings deposits
    
    
    (36
    )
    
    
    
    
    
    
    (36
    )Relationship Savings
    
    
    765
    
    
    
    223
    
    
    
    988Money market
    
    
    33
    
    
    
    350
    
    
    
    383NOW accounts
    
    
    (5
    )
    
    
    96
    
    
    
    91Certificates of deposits
    
    
    892
    
    
    
    1,313
    
    
    
    2,205Total deposits
    
    
    1,649
    
    
    
    1,982
    
    
    
    3,631Borrowed Funds
    
    
    94
    
    
    
    341
    
    
    
    435Total interest-bearing liabilities
    
    
    1,743
    
    
    
    2,323
    
    
    
    4,066Change in net interest income
    
    $
    167
    
    
    $
    (160
    )
    
    $
    7
 Net interest income
 Interest income
 Interest expense
 Provision for loan loss expense
 18




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##### Table of Contents



Non-interest income
 Non-interest expense
 Income tax expense
 Minimum Regulatory Capital Requirements:
 Minimum To Be WellMinimum
    
    Capitalized UnderCapital
    
    Prompt CorrectiveActual
    
    Requirement
    
    Action ProvisionsAmount
    
    Ratio
    
    Amount
    
    Ratio
    
    Amount
    
    RatioSeptember 30, 2007:Total capital to risk weighted assets
    
    $
    99,162
    
    
    
    16.5
    %
    
    $
    48,011
    
    
    
    8.0
    %
    
    $
    60,014
    
    
    
    10.0
    %Tier 1 capital to risk weighted assets:
    
    
    93,166
    
    
    
    15.5
    
    
    
    24,006
    
    
    
    4.0
    
    
    
    36,008
    
    
    
    6.0Tier 1 capital to average assets:
    
    
    93,166
    
    
    
    11.5
    
    
    
    24,357
    
    
    
    3.0
    
    
    
    40,594
    
    
    
    5.0December 31, 2006:Total capital to risk weighted assets:
    
    $
    101,280
    
    
    
    18.9
    %
    
    $
    42,808
    
    
    
    8.0
    %
    
    $
    53,510
    
    
    
    10.0
    %Tier 1 capital to risk weighted assets:
    
    
    95,825
    
    
    
    17.9
    
    
    
    21,404
    
    
    
    4.0
    
    
    
    32,106
    
    
    
    6.0Tier 1 capital to average assets:
    
    
    95,825
    
    
    
    12.5
    
    
    
    22,906
    
    
    
    3.0
    
    
    
    38,177
    
    
    
    5.0
 Contractual Obligations
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##### Table of Contents



September 30, 2007More than
    
    More thanOne Year
    
    Three YearsOne Year
    

through Three
    
    through Five
    
    Over FiveTotal
    


or Less
    
    Years
    
    Years
    


    Years(Dollars in thousands)Federal Home Loan Bank of Boston advances
    
    $
    168,574
    
    
    $
    61,700
    
    
    $
    69,641
    
    
    $
    16,000
    
    
    $
    21,233Securities sold under agreements to repurchase
    
    
    3,270
    
    
    
    3,270
    
    
    
    
    
    
    
    
    
    
    
    Total FHLBB advances and repurchase agreements
    
    $
    171,844
    
    
    $
    64,970
    
    
    $
    69,641
    
    
    $
    16,000
    
    
    $
    21,233
 Off-Balance Sheet Arrangements:
 September 30, 2007More than
    
    
    More thanOne Year
    
    
    Three YearsOne Year or
    
    
    through
    
    
    Through
    
    
    Over FiveTotal
    
    
    Less
    
    
    Three Years
    
    
    Five Years
    
    
    years(Dollars in thousands)Commitments to grant loans (1)
    
    $
    40,507
    
    
    $
    40,507
    
    
    $
    
    
    
    $
    
    
    
    $
    Commercial loan lines-of-credit
    
    
    16,578
    
    
    
    16,578
    
    
    
    
    
    
    
    
    
    
    
    Unused portion of home equity loans (2)
    
    
    69,186
    
    
    
    549
    
    
    
    2,114
    
    
    
    8,502
    
    
    
    58,021Unused portion of construction loans (3)
    
    
    3,736
    
    
    
    3,736
    
    
    
    
    
    
    
    
    
    
    
    Unused portion of overdraft lines-of-credit(4)
    
    
    3,578
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,578Unused portion of personal lines-of-credit(5)
    
    
    402
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    402Standby letters of credit(6)
    
    
    586
    
    
    
    586
    
    
    
    
    
    
    
    
    
    
    
    Other commitments and contingencies(7)
    
    
    12,232
    
    
    
    12,232
    
    
    
    
    
    
    
    
    
    
    
    Total loan & other commitments
    
    $
    146,805
    
    
    $
    74,188
    
    
    $
    2,114
    
    
    $
    8,502
    
    
    $
    62,001
 
 (1)
    
    Commitments for loans are extended to customers for up to 60 days after which they expire.(2)
    
    Unused portions of home equity loans are available to the borrower for up to 10 years.(3)
    
    Unused portions of construction loans are available to the borrower for up to one year.(4)
    
    Unused portion of checking overdraft lines-of-credit are available to customers in good
standing indefinitely.(5)
    
    Unused portion of personal lines-of-credit are available to customers in good standing
indefinitely.(6)
    
    Standby letters of credit are generally available for less than one year.(7)
    
    Other commitments relate primarily to potential additional capital calls the Company is
committed to contribute as part of its investment
in certain limited partnerships. 
 Item 3: Quantitative and Qualitative Disclosures about Market Risks
  20




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##### Table of Contents



Item 4: Controls and Procedures
 Disclosure Controls and Procedures
 Internal Control Over Financial Reporting
 
 PART II  OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 1A. Risk Factors
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
 (a)
    
    Unregistered Sales of Equity Securities  Not applicable(b)
    
    Use of Proceeds  Not applicable(c)
    
    Repurchase of Our Equity Securities  In April 2007 the Company announced that its
Board of Directors authorized a stock repurchase program (the Stock Repurchase Program)
for the purchase of up to 515,430 shares of the Companys common stock or approximately 5%
of its outstanding common stock.  This program was completed in August 2007. On August 22,
2007 the Company announced that its Board of Directors authorized a second stock repurchase
program for the purchase of up to 486,366 shares of the Companys common stock or
approximately 5% of its outstanding common stock. Purchases under the two Stock Repurchase
Programs in the third quarter of 2007 were as follows:
 (d) Maximum Number or(a) Total
    
    
    
    
    
    (c) Total Number of
    
    Approximate Dollar ValueNumber of
    
    (b) Average
    
    Shares Purchased as Part
    
    of Shares that May Yet BeShares
    
    Price
    
    of Publicly announced
    
    Purchased Under the PlansPeriod
    
    Purchased
    
    Paid per Share
    
    Plans or Programs
    
    or ProgramsJuly 1  30
    
    
    238,500
    
    
    $
    14.42
    
    
    
    469,900
    
    
    
    45,530August 1  31:5% Plan announced April 2007
    
    
    45,530
    
    
    $
    13.53
    
    
    
    515,430
    
    
    
    - 0 5% Plan announced August 2007
    
    
    17,300
    
    
    $
    14.08
    
    
    
    17,300
    
    
    
    469,066September 1 - 30
    
    
    127,200
    
    
    $
    14.02
    
    
    
    144,500
    
    
    
    341,866
 In the period from October 1, 2007 to November 2, 2007, the Company repurchased an
additional 124,900 shares under the repurchase program announced in August 2007, at an
average price of $14.43 per share.
 21




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##### Table of Contents



Item 3. Defaults Upon Senior Securities
  
 Item 4. Submission of Matters to a Vote of Security Holders
  
 Item 5 Other Information
   22




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##### Table of Contents



Item 6 Exhibits
 2.1
    
    Amended and Restated Plan of Conversion*3.1
    
    Certificate of Incorporation of Legacy Bancorp, Inc.*3.2
    
    Bylaws of Legacy Bancorp, Inc. (as amended)*10.1
    
    Legacy Banks ESOP Trust Agreement**10.2
    
    ESOP Plan Document**10.3
    
    ESOP Loan Documents**10.4.1
    
    Employment Agreement between Legacy Banks and J. Williar Dunlaevy**10.4.2
    
    Employment Agreement between Legacy Banks and Michael A. Christopher**10.4.3
    
    Employment Agreement between Legacy Banks and Steven F. Pierce**10.4.4
    
    Employment Agreement between Legacy Banks and Stephen M. Conley**10.4.5
    
    Employment Agreement between Legacy Banks and Richard M. Sullivan**10.5.1
    
    Employment Agreement between Legacy Bancorp, Inc. and J. Williar Dunlaevy**10.5.2
    
    Employment Agreement between Legacy Bancorp, Inc. and Michael A. Christopher**10.5.3
    
    Employment Agreement between Legacy Bancorp, Inc. and Steven F. Pierce**10.5.4
    
    Employment Agreement between Legacy Bancorp, Inc. and Stephen M. Conley**10.5.5
    
    Employment Agreement between Legacy Bancorp, Inc. and Richard M. Sullivan**10.8
    
    Legacy Banks Employee Severance Compensation Plan**10.9.1
    
    Legacy Banks Supplemental Executive Retirement Plan with J. Williar Dunlaevy**10.9.2
    
    Legacy Banks Supplemental Executive Retirement Plan with Michael A. Christopher**10.10
    
    Director Fee Continuation Plan**10.11
    
    2006 Equity Incentive Plan***11.0
    
    Statement re: Computation of per share earnings is incorporated herein by
reference to Notes to Consolidated Financial Statementswithin Part I, Item 1,
Financial Statements31.1
    
    Certification pursuant to Rule 13a-14(a)/15d-14(a) of J. Williar Dunlaevy31.2
    
    Certification pursuant to Rule 13a-14(a)/15d-14(a) of Stephen M. Conley32
    
    Certification pursuant to 18 U.S.C. Section 1350
 
 *
    
    Incorporated by reference from the Registrants Quarterly Report on Form 10-Q for the
Quarter Ended September 30, 2005 filed October 27, 2005.**
    
    Incorporated by reference from the Registration Statement on Form S-1 (No. 333-126481) filed
July 8, 2005, as amended.***
    
    Incorporated by reference from the Registrants Proxy Statement on Form DEF 14A filed
September 28, 2006. 23




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##### Table of Contents



SIGNATURES
  LEGACY BANCORP, INC.Date: November 6, 2007
    
    /s/ J. Williar DunlaevyJ. Williar DunlaevyChief Executive Officer and Chairman of the BoardDate: November 6, 2007
    
    /s/ Stephen M. ConleyStephen M. ConleySenior Vice President, Chief Financial Officer andTreasurer (Principal Accounting Officer)
 24