##### Table of Contents





UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
     Form 10-K
    þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)  OF THE
    SECURITIES EXCHANGE ACT OF 1934For the Fiscal Year Ended
    December 31, 2007.o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)  OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to          .   Commission File Number
    000-51194
 Benjamin
    Franklin Bancorp, Inc.
 (Exact name of Registrant as
    specified in its Charter)
  Massachusetts

04-3336598(State of
    incorporation)

(I.R.S. Employer Identification
    No.)   P.O. Box 309
 58 Main Street
 Franklin, Massachusetts
    02038-0309
 (508) 528-7000
 (Address and telephone number of
    principal executive
    offices )
  SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE
    ACT
  Title of Each Class

Name of Each Exchange on which RegisteredCommon Stock, no par value

NASDAQ Global Select Market   SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE
    ACT:
 None
     o þ
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K. o
  Rule 12b-2
  Large accelerated
    filer o

Accelerated
    filer þ

Non-accelerated
    filer o
    (Do not check if a smaller reporting company)

Smaller reporting
    company o   Rule 12b-2 o þ
      DOCUMENTS
    INCORPORATED BY REFERENCE
  Form 10-K.




---



##### 





TABLE OF
    CONTENTS
   
 PagePART I.





2Item 1.


Business


2General


2Market Area and Competition


2Lending Activities


4Asset Quality


13Investment Activities


19Sources of Funds


22Employees


25Subsidiary Activities


25Regulation and Supervision


26Forward-Looking Statements


34Item 1A.


Risk Factors


35Item 1B.


Unresolved Staff Comments


38Item 2.


Properties


39Item 3.


Legal Proceedings


39Item 4.


Submission of Matters to a Vote of Security
    Holders


39PART II.





40Item 5.


Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities


40Item 6.


Selected Financial Data


43Item 7.


Managements Discussion and Analysis of
    Financial Condition and Results of Operations


45Item 7A.


Quantitative and Qualitative Disclosures about
    Market Risk


62Item 8.


Financial Statements and Supplementary
    Data


66Item 9.


Changes in and Disagreements With Accountants
    on Accounting and Financial Disclosure


67Item 9A.


Controls and Procedures


66Item 9B.


Other Information


69PART III.





69Item 10.


Directors, Executive Officers and Corporate
    Governance


69Item 11.


Executive Compensation


69Item 12.


Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters


69Item 13.


Certain Relationships and Related
    Transactions, and Director Independence


69Item 14.


Principal Accountant Fees and Services


69PART IV





69Item 15.


Exhibits and Financial Statement
    Schedules


69Ex-23.1 Consent of Wolf & Company, P.C.Ex-31.1 Section 302 Certification of CEOEx-31.2 Section 302 Certification of CFOEx-32.1 Section 906 Certification of CEOEx-32.2 Section 906 Certification of CFO




---



##### Table of Contents



PART I  Item 1.
    Business General  mutual-to-stock
      www.benfranklinbank.com www.benfranklinbank.com Form 10-K www.sec.gov 1-800-SEC-0330.
 Market
    Area and Competition     2




---



##### Table of Contents



PerCapita


Median Household


UnemploymentIncome(1)


Income(2)


Rate(3)Norfolk County

$
53,278


$
80,500



3.4
%Middlesex County


51,869



80,500



3.2
%Worcester County


36,851



72,800



4.5
%Massachusetts


43,501



75,700



4.3
%United States


34,471



59,000



5.0
%     (1)
    
    Bureau of Economic Analysis, as of April 2007.(2)
    
    Housing and Urban Development and U.S. Census Bureau, 2007.(3)
    
    Mass. Department of Labor and Workforce Development, December
    2007.  1 2 3 4 5 6 7
      1
  2
  3
  4
  5
  6
  7
 3




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##### Table of Contents



Lending
    Activities  General.
   4




---



##### Table of Contents





At December 31,2007


2006


2005


2004


2003Amount


Percent


Amount


Percent


Amount


Percent


Amount


Percent


Amount


Percent(Dollars in thousands)Mortgage loans on real estate:Residential

$
187,991



30.73%


$
275,861
(1)


42.79%


$
286,204



46.95%


$
241,090



62.56%


$
172,123



59.22%Commercial


168,463



27.54%



159,188



24.69%



159,504



26.17%



65,176



16.91%



49,781



17.13%Construction


55,763



9.11%



68,877



10.68%



60,399



9.91%



28,651



7.43%



23,936



8.23%Home equity


37,768



6.17%



36,546



5.67%



32,419



5.32%



23,199



6.02%



18,171



6.25%449,985



73.55%



540,472



83.84%



538,526



88.34%



358,116



92.92%



264,011



90.83%Other loans:Commercial


159,233



26.03%



101,055



15.68%



68,667



11.26%



25,110



6.52%



24,430



8.42%Consumer


2,592



0.42%



3,110



0.48%



2,395



0.39%



2,170



0.56%



2,219



0.76%161,825



26.45%



104,165



16.16%



71,062



11.66%



27,280



7.08%



26,649



9.17%Total loans


611,810



100.00%



644,637



100.00%



609,588



100.00%



385,396



100.00%



290,660



100.00%Other items:Net deferred loan origination costs


925







913







1,214







1,149







725Allowance for loan losses


(5,789
)






(5,337
)






(5,212
)






(2,874
)






(2,395
)Total loans, net

$
606,946






$
640,213






$
605,590






$
383,671






$
288,990     (1)
    
    Includes $63.7 million of loans held for sale 5




---



##### Table of Contents





Commercial Real Estate Loans.
    80-90%
      Construction Loans.
 6




---



##### Table of Contents



Commercial Business Loans.
       7




---



##### Table of Contents



Residential Real Estate Loans.
         8




---



##### Table of Contents



Home Equity Lines-of-Credit and
    Loans.
   9




---



##### Table of Contents



Consumer and Other Loans.
  Loan Origination and Underwriting.
    page F-
 10




---



##### Table of Contents



For the Years Ended December 31,2007


2006


2005


2004


2003(Dollars in thousands)Loans, including loans held for sale, at beginning of year

$
644,637


$
609,588


$
385,396


$
290,660


$
263,662Originations:Mortgage loans on real estate:Residential


75,378



52,965



61,132



116,866



183,263Commercial


51,307



45,994



67,701



23,230



23,168Construction


50,407



46,361



49,376



43,661



16,176Home equity


18,474



17,221



17,990



15,947



17,115195,566



162,541



196,199



199,705



239,723Other loans:Commercial


71,903



41,962



25,740



6,276



5,521Consumer


1,708



3,186



1,993



1,659



1,62573,611



45,148



27,733



7,934



7,146Total loans originated


269,176



207,690



223,932



207,638



246,869Loans acquired through acquisition of Chart Bank










185,847







Purchases of mortgage loans






16,118







34,207



26,546Deduct:Principal loan repayments and prepayments


185,540



153,041



162,348



115,907



149,623Loan sales


116,200



33,205



23,160



31,185



96,256Charge-offs


263



152



79



17



537Writedown on transfer of loans to held for sale






2,361











Total deductions


302,003



188,759



185,587



147,109



246,416Net increase (decrease) in loans


(32,827
)


35,049



224,192



94,736



26,998Loans, including loans held for sale, at end of year

$
611,810


$
644,637


$
609,588


$
385,396


$
290,660      11




---



##### Table of Contents



Loan Maturity.
  Residential Mortgage


Commercial Mortgage


ConstructionWeighted





Weighted





WeightedAverage





Average





AverageAmount


Rate


Amount


Rate


Amount


Rate(Dollars in thousands)Due less than one year

$
9,862



5.28
%

$
17,349



6.91
%

$
24,579



7.66
%Due after one year to five years


38,079



5.24
%


35,655



6.81
%


19,745



7.35
%Due after five years


140,050



5.54
%


115,459



6.79
%


11,439



6.82
%Total

$
187,991



5.47
%

$
168,463



6.81
%

$
55,763



7.38
%   12




---



##### Table of Contents



Commercial Business


Consumer


TotalWeighted





Weighted





WeightedAverage





Average





AverageAmount


Rate


Amount


Rate


Amount


Rate(Dollars in thousands)Due less than one year

$
27,694



7.64
%

$
8,770



7.46
%

$
88,254



7.22
%Due after one year to five years


31,128



7.03
%


5,853



6.57
%


130,460



6.48
%Due after five years


100,411



6.84
%


25,737



6.93
%


393,096



6.37
%Total

$
159,233



7.02
%

$
40,360



6.99
%

$
611,810



6.52
%     Fixed


Adjustable


Total(Dollars in thousands)Residential mortgage

$
72,809


$
105,320


$
178,129Commercial mortgage


25,862



125,252



151,114Construction


20,935



10,249



31,184Commercial


34,383



97,156



131,539Home equity, consumer and other


14,621



16,969



31,590Total

$
168,610


$
354,946


$
523,556  Asset
    Quality  General.
  Delinquent Loans.
 13




---



##### Table of Contents



Loans Delinquent For60-89 Days


90 Days and Over


TotalNumber


Amount


Number


Amount


Number


Amount(Dollars in thousands)At December 31, 2007Residential mortgage


4


$
627



2


$
376



6


$
1,003Commercial mortgage










2



658



2



658Construction






















Commercial






















Consumer


7



110



2



55



9



165Total


11


$
737



6


$
1,089



17


$
1,826At December 31, 2006Residential mortgage


3


$
272



1


$
230



4


$
502Commercial mortgage










2



1,256



2



1,256Construction






















Commercial


1



437











1



437Consumer


11



112



1



25



12



137Total


15


$
821



4


$
1,511



19


$
2,332At December 31, 2005Residential mortgage


2


$
157






$




2


$
157Commercial mortgage






















Construction






















Commercial


1



11



1



40



2



51Consumer


10



169



4



27



14



196Total


13


$
337



5


$
67



18


$
404   Other Real Estate Owned.
  Classification of Assets and Loan
    Review.
   14




---



##### Table of Contents



Non-Performing Assets.
  At December 31,2007


2006


2005


2004


2003(Dollars in thousands)Non-accrual loans:Residential mortgage

$
712


$
230


$
184


$



$
Commercial mortgage


658



1,257











Construction


















Commercial










256



334



458Consumer and other


228



61



25







Total non-accrual loans

$
1,598


$
1,548


$
465


$
334


$
458Loans greater than 90 days delinquent and still
    accruing:Residential mortgage

$



$



$



$



$
Commercial mortgage


















Construction


















Commercial


















Consumer and other










2



3



5Total loans 90 days and still accruing

$



$



$
2


$
3


$
5Total non-performing loans and assets

$
1,598


$
1,548


$
467


$
337


$
463Ratios:Non-performing loans to total loans and loans held for sale


0.26
%


0.24
%


0.08
%


0.09
%


0.16
%Non-performing assets to total assets


0.18
%


0.17
%


0.05
%


0.07
%


0.10
%  15




---



##### Table of Contents



and/or
  Allowance for Loan Losses.
           16




---



##### Table of Contents



At or For the Years Ended December 31,2007


2006


2005


2004


2003(Dollars in thousands)Balance at beginning of year

$
5,337


$
5,211


$
2,874


$
2,395


$
2,312Allowance added from acquisition of Chart Bank










1,812







Charge-offs:Residential mortgage loans


(143
)














Commercial loans


(11
)


(40
)


(68
)






(43
)Consumer loans


(109
)


(112
)


(11
)


(17
)


(494
)Total charge-offs


(263
)


(152
)


(79
)


(17
)


(537
)Recoveries:Commercial loans


45



37



71



35



100Consumer loans


36



40



8



11



23Total recoveries


81



77



79



46



123Net (charge-offs)/recoveries


(182
)


(75
)






29



(414
)Provision for loan losses


634



201



525



450



497Balance at end of year


5,789



5,337



5,211



2,874



2,395Ratios:Net (charge-offs)/recoveries to average loans outstanding(1)


(0.03
)%


(0.01
)%


0.00
%


0.01
%


(0.15
)%Allowance for loan losses to non-performing loans at end of year


362.27
%


344.77
%


1115.85
%


852.82
%


517.28
%Allowance for loan losses to total loans at end of year


0.94
%


0.92
%


0.85
%


0.74
%


0.82
%     (1)
    
    Average loans includes loans held for sale. 17




---



##### Table of Contents



At December 31,2007


2006


2005Percent








Percent








Percentof Loans








of Loans








of LoansLoan


in Each





Loan


in Each





Loan


in EachAllowance


Balances


Category to


Allowance


Balances


Category to


Allowance


Balances


Category tofor Loan


by


to Total


for Loan


by


to Total


for Loan


by


to TotalLosses


Category


Loans


Losses


Category


Loans


Losses


Category


Loans(Dollars in thousands)Mortgage loans on real estate:Residential

$
499


$
187,991



30.73
%

$
533


$
212,131



36.52
%

$
721


$
286,204



46.95
%Commercial


1,959



168,463



27.54
%


1,864



159,188



27.40
%


2,004



159,504



26.17
%Construction


850



55,763



9.11
%


1,083



68,877



11.86
%


840



60,399



9.91
%Home equity


142



37,768



6.17
%


137



36,546



6.29
%


122



32,419



5.32
%3,450



449,985



73.55
%


3,617



476,742



82.07
%


3,687



538,526



88.35
%Other loans:Commercial


1,874



159,233



26.03
%


1,319



101,055



17.39
%


1,172



68,667



11.26
%Consumer


80



2,592



0.42
%


76



3,110



0.54
%


44



2,395



0.39
%Unallocated(1)


385



0



0.00
%


325



0



0.00
%


308



0



0.00
%2,339



161,825



26.45
%


1,720



104,165



17.93
%


1,524



71,062



11.65
%Total

$
5,789


$
611,810



100.00
%

$
5,337


$
580,907



100.00
%

$
5,211


$
609,588



100.00
%   At December 31,2004


2003Percent








Percentof Loans








of LoansLoan


in Each





Loan


in EachAllowance


Balances


Category to


Allowance


Balances


Category tofor Loan


by


to Total


for Loan


by


to TotalLosses


Category


Loans


Losses


Category


Loans(Dollars in thousands)Mortgage loans on real estate:Residential

$
612


$
241,090



62.56
%

$
485


$
172,123



59.21
%Commercial


1,067



65,176



16.91
%


943



49,781



17.13
%Construction


340



28,651



7.43
%


295



23,936



8.24
%Home equity


87



23,199



6.02
%


46



18,171



6.25
%2,106



358,116



92.92
%


1,769



264,011



90.83
%Other loans:Commercial


532



25,110



6.52
%


596



24,430



8.41
%Consumer


22



2,170



0.56
%


22



2,219



0.76
%Unallocated(1)


214



0



0.00
%


8



0



0.00
%768



27,280



7.08
%


626



26,649



9.17
%Total

$
2,874


$
385,396



100.00
%

$
2,395


$
290,660



100.00
%     (1)
    
    The unallocated portion of the allowance for loan losses is
    intended to capture the exposure, if any, that may exist as a
    result of a number of qualitative factors that are difficult to
    quantify with precision. 18




---



##### Table of Contents



Investment
    Activities  General.
          Government-sponsored Enterprise
    Obligations.
    Municipal Obligations.
 19




---



##### Table of Contents



Mortgage-Backed Securities.
      Restricted Equity Securities.
 20




---



##### Table of Contents



At December 31,2007


2006


2005Amortized Cost


Fair Value


Amortized Cost


Fair Value


Amortized Cost


Fair Value(Dollars in thousands)Securities available for sale:Government-sponsored enterprise obligations

$
85,972


$
86,178


$
97,723


$
97,502


$
86,141


$
85,494Municipal obligations


1,206



1,202



1,707



1,687



2,211



2,191Corporate bonds and other obligations


















2,508



2,50087,178



87,380



99,430



99,189



90,860



90,185Mortgage-backed securities


70,839



69,381



29,677



27,793



34,107



32,194Total debt securities


158,017



156,761



129,107



126,982



124,967



122,379Total available for sale securities

$
158,017


$
156,761


$
129,107


$
126,982


$
124,967


$
122,379Securities held to maturity:Mortgage-backed securities

$



$



$
31


$
31


$
109


$
109Restricted equity securities:Federal Home Loan Bank of Boston stock

$
9,111


$
9,111


$
8,470


$
8,470


$
7,496


$
7,496Access Capital Strategies Community Investment Fund


1,965



1,965



1,965



1,965



2,000



2,000SBLI & DIF stock


516



516



516



516



516



516Total restricted equity securities

$
11,591


$
11,591


$
10,951


$
10,951


$
10,012


$
10,012  21




---



##### Table of Contents



More than One Year


More than Five YearsOne Year or Less


through Five Years


through Ten YearsWeighted





Weighted





WeightedAmortized


Average


Amortized


Average


Amortized


AverageCost


Yield


Cost


Yield


Cost


Yield(Dollars in thousands)Securities available for sale:Government-sponsored enterprise obligations

$
52,616



4.12
%

$
33,356



4.93
%

$




0.00
%Municipal obligations


1,206



3.05
%






0.00
%






0.00
%Mortgage-backed securities






0.00
%






0.00
%


2,691



4.15
%Total debt securities


53,822



4.10
%


33,356



4.93
%


2,691



4.15
%Total securities

$
53,822



4.10
%

$
33,356



4.93
%

$
2,691



4.15
%   More than Ten Years


Total SecuritiesWeighted








WeightedAmortized


Average


Amortized


Fair


AverageCost


Yield


Cost


Value


Yield(Dollars in thousands)Securities available for sale:Government-sponsored enterprise obligations

$




0.00
%

$
85,972


$
86,178



4.43
%Municipal obligations






0.00
%


1,206



1,202



3.05
%Mortgage-backed securities


68,148



5.14
%


70,839



69,381



5.10
%Total debt securities


68,148



5.14
%


158,017



156,761



4.72
%Total securities

$
68,148



5.14
%

$
158,017


$
156,761



4.72
%  Sources
    of Funds  General.
  Deposits.
   22




---



##### Table of Contents



Years Ended December 31,2007


2006Weighted








WeightedAverage





Average


Average





AverageBalance


Percent


Rate


Balance


Percent


Rate(Dollars in thousands)Deposit type:Demand deposits

$
117,938



18.70
%


0.00
%

$
126,894



19.98
%


0.00
%NOW deposits


40,607



6.44
%


2.27
%


27,155



4.28
%


0.27
%Money market deposits


109,123



17.31
%


2.67
%


100,741



15.87
%


2.28
%Regular and other savings


81,691



12.96
%


0.49
%


91,201



14.36
%


0.50
%Total transaction and savings accounts


349,359



55.41
%


1.21
%


345,991



54.49
%


0.82
%Certificates of deposit


281,138



44.59
%


4.53
%


288,969



45.51
%


4.05
%Total deposits

$
630,497



100.00
%


2.69
%

$
634,960



100.00
%


2.29
%   Year Ended December 31, 2005WeightedAverage





AverageBalance


Percent


Rate(Dollars in thousands)Deposit type:Demand deposits

$
114,483



20.19
%


0.00
%NOW deposits


31,742



5.60
%


0.20
%Money market deposits


95,638



16.86
%


1.62
%Regular and other savings


102,781



18.12
%


0.50
%Total transaction and savings accounts


344,644



60.77
%


0.62
%Certificates of deposit


222,500



39.23
%


2.86
%Total deposits

$
567,144



100.00
%


1.50
%  23




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##### Table of Contents



At December 31,2007


2006


2005(Dollars in thousands)Interest RateLess than 2%

$
7


$



$
2672.00%-2.99%


100



3,748



49,6983.00%-3.99%


33,143



53,435



150,8384.00%-4.99%


185,734



121,230



62,0015.00%-5.99%


43,650



129,637



19Total

$
262,634


$
308,050


$
262,823     Year Ending December 31,2008


2009


2010


2011


2012


Total(Dollars in thousands)Interest RateLess than 2%

$
7


$



$



$



$



$
72.00%-2.99%


100



















1003.00%-3.99%


26,394



6,171



507



55



16



33,1434.00%-4.99%


160,998



17,536



3,529



2,140



1,531



185,7345.00%-5.99%


30,550



7,257



1,067



581



4,195



43,650Total

$
218,049


$
30,964


$
5,103


$
2,776


$
5,742


$
262,634     At December 31, 2007(Dollars in thousands)Three months or less

$
29,684Over three months through six months


37,254Over six months through one year


21,438Over one year to three years


11,377Over three years


3,609$
103,362   Borrowings.
 24




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##### Table of Contents



At or For the Years Ended December 31,2007


2006


2005(Dollars in thousands)Balance at end of year

$
165,284


$
149,969


$
128,936Average balance during year


146,409



130,908



101,181Maximum outstanding at any month end


165,284



150,963



128,936Weighted average interest rate at end of year


4.74
%


4.54
%


4.00
%Weighted average interest rate during year


4.73
%


4.32
%


3.94
%   3-month
   Employees   Subsidiary
    Activities    Benjamin Franklin Bank Capital Trust I
  Benjamin Franklin Securities Corp. (BFSC) and
    Benjamin Franklin Securities Corp. II (BFSCII)
 25




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##### Table of Contents



Creative Strategic Solutions, Inc. (CSSI),
  The
    Benjamin Franklin Bank Charitable Foundation
   Regulation
    and Supervision  General.
      Massachusetts
    Bank Regulation.
  General.
    Activities and Investments.
 26




---



##### Table of Contents



Lending Activities.
  Dividends.
  Regulatory Enforcement Authority.
  Insurance Sales.
  DIF.
  Federal
    Regulations.
  Capital Requirements.
 27




---



##### Table of Contents



risk-weighting
        Standards for Safety and Soundness.
  Investment Activities.
 28




---



##### Table of Contents



Interstate Banking and Branching.
  Prompt Corrective Regulatory Action.
      Transactions with Affiliates.
 29




---



##### Table of Contents



Enforcement.
  Insurance of Deposit Accounts.
   30




---



##### Table of Contents



5-7 basis notice-and-comment
    Federal
    Reserve System.
    Federal
    Home Loan Bank System.
     31




---



##### Table of Contents



Holding
    Company Regulation.
  General.
        Dividends.
 32




---



##### Table of Contents



Financial Modernization.
  Miscellaneous
    Regulation.
  Community Reinvestment Act.
    Consumer Protection And Fair Lending
    Regulations.
 33




---



##### Table of Contents



Sarbanes-Oxley Act of 2002.
   Forward-Looking
    Statements    
    statements of our goals, intentions and expectations;
    statements regarding our business plans and prospects and growth
    and operating strategies;
    statements regarding the asset quality of our loan and
    investment portfolios; and
    estimates of our risks and future costs and benefits.    
    our ability to enter new markets successfully and take advantage
    of growth opportunities;
    significantly increased competition among depository and other
    financial institutions;
    inflation, changes in the interest rate environment (including
    changes in the shape of the yield curve) that reduce our margins
    or reduce the fair value of financial instruments;
    general economic conditions, either nationally or in our market
    areas, that are worse than expected;
    adverse changes in the securities markets;
    legislative or regulatory changes that adversely affect our
    business;
    changes in consumer spending, borrowing and savings habits;
    changes in accounting policies and practices, as may be adopted
    by the bank regulatory agencies, the Financial Accounting
    Standards Board and the Public Company Accounting Oversight
    Board;
    changes in our organization, compensation and benefit
    plans; and
    the risk factors described below.   34




---



##### Table of Contents



Item 1.A.
    Risk
    Factors    Our
    Commercial Real Estate, Construction And Commercial Business
    Loans May Expose Us To Increased Credit Risks, And This Risk
    Will Increase As We Increase Our Investment In These Types Of
    Loans.
        Our
    Continuing Concentration Of Loans In Our Primary Market Area May
    Increase Our Risk.
   35




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##### Table of Contents



Our
    Return On Equity May Be Low Compared To Other Financial
    Institutions. A Low Return Could Lower The Trading Price Of Our
    Common Stock.
    Our
    Branch Expansion Strategy May Not Be Accretive To
    Earnings.
    Strong
    Competition Within Our Market Area May Limit Our Growth And
    Profitability.
    Our
    Ability to Grow May Be Limited if We Cannot Make
    Acquisitions.
   36




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##### Table of Contents



We
    Operate In A Highly Regulated Environment And May Be Adversely
    Affected By Changes In Law And Regulations.
      Truth-in-Lending
  Changes
    in Market Interest Rates Could Adversely Affect Our Financial
    Condition and Results of Operations.
     37




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##### Table of Contents



Our
    Stock Value May Suffer From Anti-Takeover Provisions That May
    Impede Potential Takeovers.
      Item 1.B.
    Unresolved
    Staff Comments   38




---



##### Table of Contents



Item 2.
    Properties    Year Opened/



Expiration of

RenewalAcquired

Owned or Leased

Lease

OptionsMain Office:58 Main StreetFranklin, MA 02038

1935

Owned



Branch Offices:231 East Central StreetFranklin, MA 02038

1998

Leased

December 2021

Three 5-year
    renewal terms4 North Main StreetBellingham, MA 02019

1982

Leased

December 2021

Three 5-year
    renewal terms1 Mechanic StreetFoxborough, MA 02035

1998

Leased

December 2021

Three 5-year
    renewal terms76 North StreetMedfield, MA 02052

1998

Owned



221 Main StreetMilford, MA 01757

1992

Leased

December 2021

Three 5-year
    renewal terms40 Austin StreetNewton, MA 02460

2005

Leased

December 2021

Three 5-year
    renewal terms1290 Main StreetWaltham, MA 02451

2005

Leased

December 2021

Three 5-year
    renewal terms75 Moody StreetWaltham, MA 02453

2005

Leased

March 2018

Three 10-year
    renewal terms330 Washington StreetWellesley, MA 02481

2006

Leased

December 2010

Two 5-year
    renewal terms430B Main StreetWatertown, MA 02472

2006

Leased

June 2016

Two 5-year
    renewal terms   Item 3.
    Legal
    Proceedings    Item 4.
    Submission
    of Matters to a Vote of Security Holders   39




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##### Table of Contents



PART II  Item 5.
    Market
    for Registrants Common Equity, Related Stockholder Matters
    and Issuer Purchases of Equity Securities  Market Information.
    Dividends DeclaredHigh


Low


Per Share2006First Quarter

$
14.25


$
13.00


$
0.03Second Quarter


14.19



13.58



0.03Third Quarter


14.20



13.76



0.03Fourth Quarter


16.36



13.81



0.042007First Quarter

$
16.94


$
14.19


$
0.04Second Quarter


15.68



13.50



0.06Third Quarter


14.34



12.01



0.06Fourth Quarter


14.98



12.08



0.06   Holders.
    Dividends.
       40




---



##### Table of Contents



Securities Authorized for Issuance under Equity
    Compensation Plans.
    CNumber of SecuritiesA





Remaining Available forNumber of Securities


B


Future Issuance Underto be Issued


Weighted-Average


Equity CompensationUpon Exercises of


Exercise Price of


Plans (Excluding SecuritiesPlan Category

Outstanding Options


Outstanding Options


Reflected in Column A)Equity compensation plans approved by security shareholders:Stock options


541,766


$
13.64



55,975Restricted stock










16,593Equity compensation plans not approved by security shareholders










Total


541,766


$
13.64



72,568  41




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##### Table of Contents



Performance Graph.
    Total
    Return Performance
  
  Period EndingIndex

04/05/05

12/31/05

06/30/06

12/31/06

06/30/07

12/31/07Benjamin Franklin Bancorp, Inc.


100.00



140.46



137.96



164.23



139.78



134.34Russell 2000


100.00



110.55



119.63



130.85



139.29



128.80SNL New England Bank Index


100.00



111.99



117.92



132.18



136.53



154.72SNL New England Thrift Index


100.00



109.80



116.28



143.09



125.43



118.57   Use of Proceeds
  Repurchases of Equity Securities
    (d)Maximum number(or approximate(c)Total Number of


dollar value) ofShares Purchased as


shares that may yetPart of Publicly


be purchased under(a)Total Number of


(b)Average Price


Announced Plans or


the Plans orPeriod

Shares Purchased


Paid per Share


Programs


ProgramsOctober 1-31


86,290


$
14.64



86,290



November 1-30














394,200December 1-31


29,400


$
12.93



29,400



364,800Total


115,690


$
14.20



115,690  42




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##### Table of Contents



Item 6.
    Selected
    Financial Data    At December 31,2007


2006


2005


2004


2003(Dollars in thousands)Selected Financial Condition Data:Total assets

$
903,278


$
914,122


$
867,515


$
517,691


$
458,972Loans, net(1)


606,946



640,213



605,590



383,671



288,990Securities(2)


168,352



137,964



132,500



93,262



110,254Deposits


617,368



633,179



611,673



396,499



380,257Short-term borrowings


2,500



10,000







4,250



Long-term debt


162,784



148,969



140,339



81,000



45,000Stockholders equity


107,444



109,405



108,112



31,328



29,301     (1)
    
    Includes loans held for sale of $63,730 at December 31,
    2006.(2)
    
    Includes restricted equity securities.  For the Years Ended December 31,2007


2006(3)


2005(1)(2)


2004


2003(Dollars in thousands, except per share data)Selected Operating Data:Interest and dividend income

$
48,173


$
44,259


$
35,135


$
20,795


$
19,532Interest expense


24,488



20,863



13,117



7,032



6,752Net interest income


23,685



23,396



22,018



13,763



12,780Provision for loan losses(4)


634



201



525



451



497Net interest income after provision for loan losses


23,051



23,195



21,493



13,312



12,283Non-interest income


7,772



3,549



3,487



2,148



2,990Gain (loss) on sale/write-down of securities, net


38



(25
)






(24
)


86Non-interest expense(4)


25,687



22,337



23,437



12,855



12,852Income before income tax provision


5,174



4,382



1,543



2,581



2,507Income tax provision (benefit)


1,532



(358
)


1,112



892



819Net income

$
3,642


$
4,740


$
431


$
1,689


$
1,688Dividends paid per common share

$
0.22


$
0.13


$
0.06



n/a



n/aDividend payout ratio


46.81
%


21.67
%


n/a



n/a



n/aEarnings per share (basic)

$
0.48


$
0.60



n/a



n/a



n/aEarnings per share (diluted)

$
0.47


$
0.60



n/a



n/a



n/a     (1)
    
    Operating results for 2005 reflect the acquisition of Chart
    Bank, the conversion from mutual to stock form, and the
    $4.0 million pre-tax contribution to the Benjamin Franklin
    Bank Charitable Foundation, all occurring on April 4,
    2005.(*)(2)
    
    The Companys mutual-to-stock conversion was completed on
    April 4, 2005. Because shares were not issued and
    outstanding for the entire period, earnings per share have not
    been reported for the year ended 43




---



##### Table of Contents



December 31, 2005. Earnings per share (both basic and
    diluted) were $.16 in each of the third and fourth quarters of
    2005. Cash dividends paid per share were $.03 in each of the
    third and fourth quarters of 2005.(3)
    
    Operating results for 2006 reflect the effect of the sale and
    leaseback of six of the Banks branch locations as well as
    a loss incurred upon the designation of $63.7 million of
    loans as held for sale at December 31, 2006.(*)(4)
    
    In 2007, the Company reclassified the provision for unfunded
    lending commitments from the provision for loan losses to
    non-interest expense, for all periods presented.(*)(*)
    
    For further information see Item 7, Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations.  At or For the Years Ended December 31,2007


2006


2005


2004


2003Selected Financial Ratios and Other Data:Performance Ratios:Return on average assets (ratio of net income to average total
    assets)


0.40
%


0.53
%


0.06
%


0.34
%


0.36
%Return on average equity (ratio of net income to average equity)


3.36
%


4.35
%


0.49
%


5.59
%


5.65
%Net interest rate spread(1)


2.40
%


2.45
%


2.79
%


2.63
%


2.76
%Net interest margin(2)


3.00
%


3.01
%


3.21
%


3.00
%


2.98
%Efficiency ratio(3)


80.13
%


71.38
%


68.00
%


79.66
%


80.35
%Non-interest expense to average total assets


2.84
%


2.50
%


3.01
%


2.61
%


2.76
%Average interest-earning assets to average interest- bearing
    liabilities


118.34
%


120.06
%


121.90
%


123.91
%


114.38
%Asset Quality Ratios:Non-performing assets to total assets


0.18
%


0.17
%


0.05
%


0.07
%


0.10
%Non-performing loans to total loans and loans held for sale


0.26
%


0.24
%


0.08
%


0.09
%


0.16
%Allowance for loan losses to non-performing loans


362.27
%


344.77
%


1115.85
%


852.82
%


517.28
%Allowance for loan losses to total loans


0.94
%


0.92
%


0.85
%


0.74
%


0.82
%Capital Ratios:Equity to total assets at end of year


11.89
%


11.97
%


12.46
%


6.05
%


6.38
%Average equity to average assets


11.98
%


12.20
%


11.36
%


6.13
%


6.42
%Risk-based capital ratio at end of year


12.32
%


14.43
%


15.30
%


12.48
%


13.94
%Other Data:Number of full service offices


11



10



9



6



6     (1)
    
    The net interest rate spread represents the difference between
    the weighted-average yield on interest-earning assets and the
    weighted-average cost of interest-bearing liabilities for the
    period.(2)
    
    The net interest margin represents net interest income as a
    percent of average interest-earning assets for the period.(3)
    
    The efficiency ratio represents non-interest expense minus
    expenses related to the amortization of intangible assets, and
    (in 2005) to the contribution to the Benjamin Franklin Bank
    Charitable Foundation, divided by the sum of net interest income
    (before the loan loss provision) plus non-interest income
    (excluding nonrecurring net gains (losses) on sale of bank
    assets). 44




---



##### Table of Contents



Item 7.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations    Overview
  Financial Condition.
      Operating Results.
   45




---



##### Table of Contents



Critical
    Accounting Policies
    Allowance for Loan Losses.
  Income Taxes.
  Intangible Assets.
 46




---



##### Table of Contents



Analysis
    of Net Interest Income
   47




---



##### Table of Contents



Years Ended December 31,2007


2006


2005Average








Average








AverageOutstanding





Yield/


Outstanding





Yield/


Outstanding





Yield/Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate(Dollars in thousands)Interest-earning assets:Loans(4)

$
608,811


$
39,182



6.38
%

$
626,715


$
37,676



5.97
%

$
547,542


$
30,409



5.56
%Securities


162,349



8,139



5.01
%


137,765



5,925



4.30
%


120,007



4,211



3.51
%Short-term investments


17,861



852



4.70
%


13,906



658



4.66
%


18,701



515



2.75
%Total interest-earning assets


789,021



48,173



6.06
%


778,386



44,259



5.65
%


686,250



35,135



5.13
%Non-interest-earning assets


116,246











113,930











91,508Total assets

$
905,267










$
892,316










$
777,758Interest-bearing liabilities:Savings accounts

$
81,691



397



0.49
%

$
91,201



456



0.50
%

$
102,781



518



0.50
%Money market accounts


109,123



2,917



2.67
%


100,741



2,299



2.28
%


95,638



1,553



1.62
%NOW accounts


40,607



922



2.27
%


27,155



75



0.27
%


31,742



63



0.20
%Certificates of deposit


281,138



12,749



4.53
%


288,969



11,717



4.05
%


222,500



6,366



2.86
%Total deposits


512,559



16,985



3.31
%


508,066



14,547



2.86
%


452,661



8,500



1.88
%Borrowings


154,206



7,503



4.80
%


140,281



6,316



4.44
%


110,281



4,617



4.19
%Total interest-bearing liabilities


666,765



24,488



3.66
%


648,347



20,863



3.20
%


562,942



13,117



2.34
%Non-interest bearing liabilities


130,067











135,082











126,455Total liabilities


796,832











783,429











689,397Equity


108,435











108,887











88,361Total liabilities and equity

$
905,267










$
892,316










$
777,758Net interest income





$
23,685










$
23,396










$
22,018Net interest rate spread(1)










2.40
%










2.45
%










2.79
%Net interest-earning assets(2)

$
122,256










$
130,039










$
123,308Net interest margin(3)










3.00
%










3.01
%










3.21
%Average of interest-earning assets to interest-bearing
    liabilities










118.34
%










120.06
%










121.90
%     (1)
    
    Net interest rate spread represents the difference between the
    weighted-average yield on interest-earning assets and the
    weighted-average cost of interest-bearing liabilities.(2)
    
    Net interest-earning assets represents total interest-earning
    assets less total interest-bearing liabilities.(3)
    
    Net interest margin represents net interest income divided by
    average total interest-earning assets.(4)
    
    Loans include loans held for sale.   48




---



##### Table of Contents



Years Ended December 31,


Years Ended December 31,2007 vs. 2006


2006 vs. 2005Total








TotalIncrease (Decrease) Due to


Increase


Increase (Decrease) Due to


IncreaseVolume


Rate


(Decrease)


Volume


Rate


(Decrease)(Dollars in thousands)Interest-earning assets:Loans

$
(1,098
)

$
2,604


$
1,506


$
4,628


$
2,639


$
7,267Securities


1,148



1,066



2,214



679



1,035



1,714Short-term investments


189



5



194



(157
)


300



143Total interest-earning assets


239



3,675



3,914



5,150



3,974



9,124Interest-bearing liabilities:Savings accounts


(46
)


(13
)


(59
)


(58
)


(4
)


(62
)Money market accounts


202



416



618



87



659



746NOW accounts


54



793



847



(10
)


22



12Certificates of deposit


(325
)


1,357



1,032



2,233



3,118



5,351Total deposits


(115
)


2,553



2,438



2,252



3,795



6,047Borrowings


655



532



1,187



1,330



369



1,699Total interest-bearing liabilities


540



3,085



3,625



3,582



4,164



7,746Change in net interest income

$
(301
)

$
590


$
289


$
1,568


$
(190
)

$
1,378   Comparison
    of Financial Condition At December 31, 2007 and
    December 31, 2006
  Total Assets.
  Cash and Short-term Investments.
  Securities.
 49




---



##### Table of Contents



Net Loans.
      fixed-rate fixed-rate
      Loans Held for Sale.
 50




---



##### Table of Contents



Deposits.
      Borrowed Funds.
  Stockholders Equity.
  Comparison
    of Operating Results For The Year Ended December 31, 2007
    and December 31, 2006
  Net Income.
  Net Interest Income.
 51




---



##### Table of Contents



Interest Income.
      Interest Expense.
   52




---



##### Table of Contents



year-over-year,
    Provision for Loan Losses.
    Non-interest Income.
 53




---



##### Table of Contents



2007


2006


Change(Dollars in thousands)Reported non-interest income

$
7,810


$
3,524


$
4,286Less:Write-down of loans transferred to held for sale






(2,361
)


2,361Gain/(loss) on sale of premises


198



(503
)


701Gain on sale of CSSI customer list


203







203Normalized non-interest income

$
7,409


$
6,388


$
1,021            54




---



##### Table of Contents



Non-interest Expense.
  $553,000 year-over-year.
      Income Taxes.
   55




---



##### Table of Contents



Comparison
    of Financial Condition At December 31, 2006 and
    December 31, 2005
  Total Assets.
  Cash and Short-term Investments.
  Securities.
  Net Loans.
  Loans Held for Sale.
 56




---



##### Table of Contents



Deposits.
      Borrowed Funds.
  Stockholders Equity.
  Comparison
    of Operating Results For The Year Ended December 31, 2006
    and December 31, 2005
  Net Income.
  Net Interest Income.
     57




---



##### Table of Contents



Interest Income.
    Interest Expense.
    year-over-year,
    Provision for Loan Losses.
 58




---



##### Table of Contents



Non-interest Income.
    2006


2005


Change(Dollars in thousands)Reported non-interest income

$
3,524


$
3,487


$
37Less:Write-down of loans transferred to held for sale


(2,361
)






(2,361
)Gain/(loss) on sale of premises


(503
)


380



(883
)Write-down of premises






(1,400
)


1,400Normalized non-interest income

$
6,388


$
4,507


$
1,881          59




---



##### Table of Contents



Non-interest Expense.
        Income Taxes.
   60




---



##### Table of Contents



Off-Balance-Sheet
    Arrangements
    Impact of
    Inflation and Changing Prices
    Impact of
    Recent Accounting Standards
       61




---



##### Table of Contents



Item 7A.
    Quantitative
    and Qualitative Disclosures about Market Risk      Management of Credit Risk.
  Management of Market Risk.
 62




---



##### Table of Contents



63




---



##### Table of Contents



Percentage Change in EstimatedNet Interest IncomeOver 12 months300 basis point increase in rates


(8.46
)%200 basis point increase in rates


(5.95
)%100 basis point increase in rates


(2.28
)%Flat interest rates


100 basis point decrease in rates


1.50
%200 basis point decrease in rates


(3.06
)%     12-month 12-month
  12-month 12-month
  Management of Liquidity Risk.
 64




---



##### Table of Contents



Contractual
    Obligations:
  At December 31, 2007More than


More thanOne Year


Three YearsOne Year


through


through


Over FiveTotal


or Less


Three Years


Five Years


Years(Dollars in thousands)Federal Home Loan Bank advances(1)

$
165,284


$
29,494


$
107,000


$
18,000


$
10,790Operating leases(2)


14,347



1,190



2,375



2,181



8,601Non-qualified pension(3)


11,695



2,386



1,944



1,955



5,410Other contractual obligations(4)


5,829



3,047



2,782







Total contractual obligations

$
197,155


$
36,117


$
114,101


$
22,136


$
24,801     (1)
    
    Secured under a blanket security agreement on qualifying assets,
    principally 1-4 family residential mortgage loans. One advance
    in the amount of $10 million maturing in June, 2010 will
    become immediately payable if
    3-month
    LIBOR rises above 6.0% (measured on a quarterly basis).(2)
    
    Represents non-cancelable operating leases for branch offices.(3)
    
    Pension obligations include expected payments under the
    Companys Director Fee Continuation Plan and expected
    contributions to the Companys supplemental executive
    retirement plans.(4)
    
    Represents contracts for technology services and employment
    agreements. 65




---



##### Table of Contents



Loan
    Commitments:
  December 31, 2007More than


More thanOne Year


Three YearsOne Year


through


through


Over FiveTotal


or Less


Three Years


Five Years


Years(Dollars in thousands)Commitments to grant loans(1)

$
15,097


$
15,097


$



$



$
Unused portion of commercial loan lines of credit


29,909



29,802



107







Unused portion of home equity lines of credit(2)


42,691















42,691Unused portion of construction loans(3)


25,126



14,254



10,872







Unused portion of personal lines of credit(4)


2,413















2,413Commercial letters of credit


1,213



1,213











Total loan commitments

$
116,449


$
60,366


$
10,979


$



$
45,104     General:
  (1)
    
    Commitments for loans are extended to customers for up to
    180 days after which they expire.(2)
    
    Unused portions of home equity lines of credit are available to
    the borrower for up to 10 years.(3)
    
    Unused portions of construction loans are available to the
    borrower for up to 2 years for development loans and up to
    1 year for other construction loans.(4)
    
    Unused portion of checking overdraft lines of credit are
    available to customers in good standing indefinitely.  Management of Other Risks.
    Item 8.
    Financial
    Statements and Supplementary Data  page F-1
  Item 9.
    Changes
    in and Disagreements With Accountants on Accounting and
    Financial Disclosure   66




---



##### Table of Contents



Item 9A.
    Controls
    and Procedures  Evaluation
    of Disclosure Controls and Procedures.
  Rules 13a-15(e) 15d-15(e)),
  Changes
    in Internal Controls Over Financial Reporting.
    Managements
    Report on Internal Control Over Financial Reporting.
    Internal
    Control  Integrated Framework
    Important
    Considerations.
   67




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##### Table of Contents



Report of
    Independent Registered Public Accounting Firm on Internal
    Control over Financial Reporting
  To the Board
    of Directors
    Internal Control 
    Integrated Framework
        Internal Control  Integrated
    Framework
    
    68




---



##### Table of Contents



Item 9B.
    Other
    Information   PART III  Item 10.
    Directors,
    Executive Officers and Corporate Governance    Item 11.
    Executive
    Compensation    Item 12
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters  Form 10-K.
  Item 13
    Certain
    Relationships and Related Transactions, and Director
    Independence    Item 14
    Principal
    Accountant Fees and Services   PART IV  Item 15.
    Exhibits
    and Financial Statement Schedules.  (a) Exhibits
  Exhibit No.

Description

Footnotes2
.1

Plan of Conversion of Benjamin Franklin Bancorp.


32
.2

Agreement and Plan of Merger among Benjamin Franklin Bancorp,
    M.H.C., Benjamin Franklin Savings Bank and Chart Bank, a
    Cooperative Bank, dated as of September 1, 2004.


23
.1

Articles of Organization of Benjamin Franklin Bancorp, Inc.


23
.2

Bylaws of Benjamin Franklin Bancorp, Inc.


74
.1

Form of Common Stock Certificate of Benjamin Franklin Bancorp,
    Inc.


510
.1.1

Form of Employment Agreement with Thomas R. Venables.*


610
.1.2

Form of Employment Agreement with Claire S. Bean.*


6 69




---



##### Table of Contents



Exhibit No.

Description

Footnotes10
.2

Form of Change in Control Agreement with five other Executive
    Officers, providing one years severance to Karen Niro,
    Michael J. Piemonte and Kathleen P. Sawyer, and two years
    severance to Mariane E. Broadhurst and Rose M. Buckley.  This
    form contains all material information concerning the agreement
    and the only differences are the name and contact information of
    the executive officer who is party to the agreement and the
    number of years of severance provided.*


210
.3

Form of Benjamin Franklin Bank Benefit Restoration Plan.*


210
.4.1

Amended and Restated Supplemental Executive Retirement Agreement
    between Benjamin Franklin Bank and Thomas R. Venables dated as
    of March 22, 2006.*


810
.4.2

Amended and Restated Supplemental Executive Retirement Agreement
    between Benjamin Franklin Bank and Claire S. Bean dated as of
    March 22, 2006.*


810
.5

Benjamin Franklin Bancorp Director Fee Continuation Plan. *


410
.6

Benjamin Franklin Bancorp Employee Salary Continuation Plan.*


210
.7.1

Payments and Waiver Agreement among Richard E. Bolton, Jr.,
    Benjamin Franklin Bancorp, M.H.C., Benjamin Franklin Savings
    Bank and Chart Bank, a Cooperative Bank, dated as of September
    1, 2004.*


210
.7.2

Consulting and Noncompetition Agreement between Richard E.
    Bolton, Jr. and Benjamin Franklin Bancorp, M.H.C., dated as of
    September 1, 2004.*


210
.8

Benjamin Franklin Bancorp, Inc. 2006 Stock Incentive Plan*


910
.8.1

Form of Incentive Stock Option Agreement*


1010
.8.2

Form of Non-Statutory Stock Option Agreement (Officer)*


1010
.8.3

Form of Non-Statutory Stock Option Agreement (Director)*


1010
.8.4

Form of Restricted Stock Agreement (Officer)*


1010
.8.5

Form of Restricted Stock Agreement (Director)*


1010
.9

Purchase and Sale Agreement dated December 19, 2006.


1111


See Note 3 to the Financial Statements for a discussion of
    earnings per share.


21


Subsidiaries of Registrant


823
.1

Consent of Wolf & Company, P.C., independent
    registered public accounting firm.


131
.1

Certification of Chief Executive Officer pursuant to Section 302
    of the Sarbanes-Oxley Act of 2002.


131
.2

Certification of Chief Financial Officer pursuant to Section 302
    of the Sarbanes-Oxley Act of 2002.


132
.1

Certification of Chief Executive Officer pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to Section 906
    of the Sarbanes-Oxley Act of 2002.


132
.2

Certification of Chief Financial Officer pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to Section 906
    of the Sarbanes-Oxley Act of 2002.


1     *
    
    Relates to compensation.1.
    
    Filed herewith.2.
    
    Incorporated by reference to the Registrants Registration
    Statement on
    Form S-1,
    File
    No. 333-121154,
    filed on December 10, 2004.3.
    
    Incorporated by reference to Amendment No. 1 to the
    Registrants Registration Statement on
    Form S-1,
    File
    No. 333-121154,
    filed on January 24, 2005.4.
    
    Incorporated by reference to the Registrants Registration
    Statement on
    Form S-4,
    File
    No. 333-121608,
    filed on December 23, 2004.5.
    
    Incorporated by reference to the Registrants Registration
    Statement on
    Form 8-A,
    File
    No. 000-51194,
    filed on March 9, 2005.6.
    
    Incorporated by reference to the Registrants Annual Report
    on
    Form 10-K,
    filed on March 29, 2005.7.
    
    Incorporated by reference to the Registrants Current
    Report on
    Form 8-K,
    filed on March 3, 2006.8.
    
    Incorporated by reference to the Registrants Annual Report
    on
    Form 10-K,
    filed on March 28, 2006. 70




---



##### Table of Contents



9.
    
    Incorporated by reference to Appendix B to the
    Registrants Proxy Statement for the 2006 Annual Meeting of
    Stockholders, filed on March 28, 2006.10.
    
    Incorporated by reference to the Registrants Quarterly
    Report on
    Form 10-Q/A,
    filed on August 18, 2006.11.
    
    Incorporated by reference to the Registrants Current
    Report on
    Form 8-K,
    filed on December 26, 2006.  (b) Financial Statement Schedules
   71




---



##### Table of Contents



SIGNATURES
    Benjamin Franklin Bancorp, Inc.
  By:
    /s/  Thomas
    R. Venables   President and Chief Executive Officer
      Signature

Title/s/  Thomas
    R. VenablesThomas
    R. Venables

President and Chief Executive Officer, Director
    (Principal Executive Officer)/s/  Claire
    S. BeanClaire
    S. Bean

Treasurer and Chief Financial Officer(Principal Financial and Accounting Officer)/s/  Mary
    AmblerMary
    Ambler

Director/s/  William
    P. BissonnetteWilliam
    P. Bissonnette

Director/s/  Richard
    E. Bolton, Jr.Richard
    E. Bolton, Jr.

Director/s/  William
    F. Brady, Jr.William
    F. Brady, Jr.

Director/s/  Paul
    E. CapassoPaul
    E. Capasso

Director/s/  Jonathan
    A. HaynesJonathan
    A. Haynes

Director/s/  Anne
    M. KingAnne
    M. King

Director/s/  Daniel
    F. OBrienDaniel
    F. OBrien

Director 72




---



##### Table of Contents



Signature

Title/s/  Charles
    F. OteriCharles
    F. Oteri

DirectorDonald
    P. Quinn

Director/s/  Neil
    E. TodreasNeil
    E. Todreas

Director/s/  Alfred
    H. WahlersAlfred
    H. Wahlers

Director/s/  Charles
    YergatianCharles
    Yergatian

Director  73




---



##### Table of Contents



Benjamin
    Franklin Bancorp, Inc.
  Annual
    Report on
    Form 10-K
    for the Year Ended December 31, 2007
    Exhibits Filed Herewith
  ExhibitNumber

Description23
.1

Consent of Wolf & Company, P.C., independent
    registered public accounting firm.31
.1

Certification of Chief Executive Officer pursuant to Section 302
    of the Sarbanes-Oxley act of 2002.31
.2

Certification of Chief Financial Officer pursuant to Section 302
    of the Sarbanes-Oxley act of 2002.32
.1

Certification of Chief Executive Officer pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to Section 906
    of the Sarbanes-Oxley Act of 2002.32
.2

Certification of Chief Financial Officer pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to Section 906
    of the Sarbanes-Oxley Act of 2002.  74




---



##### 



BENJAMIN
    FRANKLIN BANCORP, INC.
  YEARS
    ENDED DECEMBER 31, 2007, 2006 and 2005
  INDEX TO
    CONSOLIDATED FINANCIAL STATEMENTS
   
 PageReport of Independent Registered Public
    Accounting Firm


F-2Consolidated Balance Sheets


F-3Consolidated Statements of Income


F-4Consolidated Statements of Changes in
    Stockholders Equity


F-5Consolidated Statements of Cash Flows


F-6Notes to Consolidated Financial Statements


F-7 - F-39   F-1




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM           Internal Control 
    Integrated Framework
  
    F-2




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  CONSOLIDATED
    BALANCE SHEETS
  December 31,2007


2006(Dollars in thousands)ASSETSCash and due from banks

$
12,226


$
16,115Cash supplied to ATM customers


42,002



39,732Short-term investments


10,363



16,748Total cash and cash equivalents


64,591



72,595Securities available for sale, at fair value


156,761



126,982Securities held to maturity, at amortized cost






31Restricted equity securities, at cost


11,591



10,951Loans, net of allowance for loan losses of $5,789 in 2007 and
    $5,337 in 2006


606,946



576,483Loans held for sale, net






63,730Premises and equipment, net


5,410



5,202Accrued interest receivable


3,648



3,480Bank-owned life insurance


10,700



10,298Goodwill


33,763



33,763Other intangible assets


2,474



3,069Other assets


7,394



7,538$
903,278


$
914,122LIABILITIES AND STOCKHOLDERS EQUITYDeposits

$
617,368


$
633,179Short-term borrowings


2,500



10,000Long-term debt


162,784



148,969Deferred gain on sale of premises


3,531



3,783Other liabilities


9,651



8,786Total liabilities


795,834



804,717Commitments and contingencies (Notes 7 and 13)Stockholders equity:Common stock, no par value, 75,000,000 shares authorized:
    8,030,415 shares issued and 7,856,172 shares
    outstanding at December 31, 2007; 8,468,137 shares
    issued and 8,249,802 shares outstanding at
    December 31, 2006






Additional paid-in capital


77,370



82,909Retained earnings


38,515



36,634Unearned compensation


(7,094
)


(7,938
)Accumulated other comprehensive loss


(1,347
)


(2,200
)Total stockholders equity


107,444



109,405$
903,278


$
914,122    F-3




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  CONSOLIDATED
    STATEMENTS OF INCOME
  Years Ended December 31,2007


2006


2005(Dollars in thousands, except per share amounts)Interest and dividend income:Loans, including fees

$
39,182


$
37,676


$
30,409Debt securities


7,432



5,374



3,811Dividends


707



551



400Short-term investments


852



658



515Total interest and dividend income


48,173



44,259



35,135Interest expense:Interest on deposits


16,985



14,547



8,500Interest on short-term borrowings


272



320



117Interest on long-term debt


7,231



5,996



4,500Total interest expense


24,488



20,863



13,117Net interest income


23,685



23,396



22,018Provision for loan losses


634



201



525Net interest income, after provision for loan losses


23,051



23,195



21,493Other income (charges):ATM servicing fees


2,534



3,059



1,639Deposit servicing fees


1,487



1,428



1,233Other loan-related fees


935



487



442Gain (loss) on loans sold and held for sale, net


680



(2,030
)


116Gain (loss) on sale/write-down of securities, net


38



(25
)


Gain (loss) on sale/write-down of premises, net


450



(495
)


(1,020
)Gain on trading assets


264







Gain on sale of CSSI customer list


203







Income from bank-owned life insurance


402



347



269Miscellaneous


817



753



808Total other income


7,810



3,524



3,487Operating expenses:Salaries and employee benefits


14,687



11,682



9,882Occupancy and equipment


3,456



2,631



2,374Data processing


2,411



1,945



1,734Professional fees


859



1,289



1,021Marketing and advertising


611



778



738Contribution to Benjamin Franklin Bank Charitable Foundation










4,000Amortization of intangible assets


803



1,064



1,400Other general and administrative


2,860



2,948



2,288Total operating expenses


25,687



22,337



23,437Income before income taxes


5,174



4,382



1,543Provision (benefit) for income taxes


1,532



(358
)


1,112Net income

$
3,642


$
4,740


$
431Weighted-average shares outstanding:Basic


7,644,470



7,949,042



n/aDiluted


7,686,543



7,953,739



n/aEarnings per share:Basic

$
0.48


$
0.60



n/aDiluted

$
0.47


$
0.60



n/a    F-4




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
 CONSOLIDATED
    STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY
    Years Ended December 31, 2007, 2006 and 2005  AccumulatedAdditional








Other


TotalCommon Stock


Paid-In


Retained


Unearned


Comprehensive


StockholdersShares


Amount


Capital


Earnings


Compensation


Loss


Equity(Dollars in thousands, except per share amounts)Balance at December 31, 2004





$



$



$
32,997


$



$
(1,669
)

$
31,328Comprehensive loss:Net income














431











431Net unrealized loss on securities available for sale, net of tax
    effects






















(657
)


(657
)Total comprehensive loss


























(226
)Issuance of common stock for initial public offering, net of
    expenses of $2,053


5,577,419







53,721















53,721Issuance of common stock to Benjamin Frankin Bank Charitable
    Foundation


400,000







4,000















4,000Issuance of common stock for acquisition of Chart Bank


2,511,479







25,115















25,115Stock purchased by ESOP


















(5,537
)






(5,537
)Release of ESOP stock










13







184







197Dividends declared ($.06 per share)














(486
)










(486
)Balance at December 31, 2005


8,488,898







82,849



32,942



(5,353
)


(2,326
)


108,112Comprehensive income:Net income














4,740











4,740Net unrealized gain on securities available for sale, net of
    reclassification adjustment and tax effects






















424



424Total comprehensive income


























5,164Common stock repurchased


(239,096
)






(3,373
)














(3,373
)Issuance of common stock in connection with stock incentive plan










3,046







(3,046
)






Restricted stock expense


















277







277Stock option expense










347















347Release of ESOP stock










40







184







224Dividends declared ($.13 per share)














(1,048
)










(1,048
)Adjustment to initially apply FASB Statement No. 158






















(298
)


(298
)Balance at December 31, 2006


8,249,802







82,909



36,634



(7,938
)


(2,200
)


109,405Comprehensive income:Net income














3,642











3,642Net unrealized gain on securities available for sale, net of
    reclassification adjustment and tax effects






















752



752FASB Statement No. 158 tax effect adjustment






















101



101Total comprehensive income


























4,495Common stock repurchased


(441,890
)






(6,271
)














(6,271
)Issuance of common stock in connection with stock incentive plan










225







(225
)






Restricted stock expense


48,260















690







690Forfeiture of restricted stock










(193
)






193







Stock option expense










657















657Release of ESOP stock










43







186







229Dividends declared ($.22 per share)














(1,761
)










(1,761
)Balance at December 31, 2007


7,856,172


$



$
77,370


$
38,515


$
(7,094
)

$
(1,347
)

$
107,444    F-5




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  CONSOLIDATED
    STATEMENTS OF CASH FLOWS
  Years Ended December 31,2007


2006


2005(Dollars in thousands)Cash flows from operating activities:Net income

$
3,642


$
4,740


$
431Adjustments to reconcile net income to net cash provided by
    operating activities:Amortization (accretion) of securities, net


(579
)


(760
)


9Amortization (accretion) of loans, net


124



(37
)


(64
)Loss (gain) on sale/write-down of securities, net


(38
)


25



Loss (gain) on sale/write-down of premises, net


(198
)


499



1,020Amortization of deferred gain on sale of premises


(252
)


(4
)


Provision for loan losses


634



201



525Provision (credit) for losses on unfunded loan commitments


(261
)


(15
)


161Accretion of deposit and borrowing discounts, net


(6
)


(35
)


(307
)Amortization of mortgage servicing rights


297



241



282Depreciation expense


913



1,019



983Amortization of intangible assets


803



1,064



1,400Stock-based compensation and ESOP


1,576



848



197Deferred income tax provision (benefit)


264



(4,231
)


(1,944
)Income from bank-owned life insurance


(402
)


(347
)


(269
)Gains on trading assets


(264
)






Purchases of trading assets


(15,000
)






Proceeds from sales of trading assets


15,264







Gain (loss) on loans sold and held for sale, net


(680
)


2,030



(116
)Loans originated for sale


(54,078
)


(33,205
)


(23,160
)Proceeds from sales of loans


54,758



33,536



23,276Increase in accrued interest receivable


(168
)


(435
)


(1,555
)Contribution of common stock to Charitable Foundation










4,000Other, net


604



1,640



3,360Net cash provided by operating activities


6,953



6,774



8,229Cash flows from investing activities:Activity in
    available-for-sale
    securities:Sales


6,967



10



Maturities, calls, and principal repayments


67,606



65,970



49,770Purchases


(102,840
)


(69,350
)


(52,900
)Maturities of and principal repayments on
    held-to-maturity
    securities


5



78



108Net change in restricted equity securities


(640
)


(974
)


(653
)Purchases of mortgage loans






(16,118
)


Loan originations, net


(30,383
)


(21,029
)


(38,346
)Purchases of bank-owned life insurance






(2,500
)


Proceeds from sales of loans held for sale


62,122







Proceeds from sales of premises and equipment


1,078



9,743



785Purchases of identifiable intangible assets


(208
)






Additions to premises and equipment


(1,142
)


(1,509
)


(819
)Net cash used for (provided by) investing activities


2,565



(35,679
)


(42,055
)Cash flows from financing activities:Net increase (decrease) in deposits


(15,780
)


21,574



(1,858
)Net change in short-term borrowings


(7,500
)


10,000



(4,250
)Proceeds from long-term debt


46,000



56,000



33,903Repayment of long-term debt


(32,210
)


(47,403
)


Net proceeds from issuance of common stock










53,721Common stock repurchased


(6,271
)


(3,373
)


Dividends paid on common stock


(1,761
)


(1,048
)


(486
)Acquisition of common stock by ESOP










(5,537
)Net cash provided by (used for) financing activities


(17,522
)


35,750



75,493Net change in cash and cash equivalents


(8,004
)


6,845



41,667Cash and cash equivalents acquired in the purchase of Chart Bank










9,879Cash and cash equivalents at beginning of year


72,595



65,750



14,204Cash and cash equivalents at end of year

$
64,591


$
72,595


$
65,750Supplemental cash flow information:Interest paid on deposits

$
17,147


$
14,450


$
8,476Interest paid on borrowings


7,441



6,186



4,452Income taxes paid


1,282



3,595



1,238Loans reclassified as held for sale






66,091



Loans held for sale transferred to loans, net


1,063







Loans held for sale transferred to other assets


545







Deferred gain recorded on sale of premises and equipment






3,787



Premises and equipment transferred to other assets










634Loans transferred to other assets


225







Securities transferred from
    held-to-maturity
    to
    available-for-sale


26







Assets acquired and liabilities assumed from Chart Bank were as
    follows:Fair value of noncash assets acquired

$



$



$
259,008Fair value of liabilities assumed










243,772Fair value of common stock issued










25,115    F-6




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARYNOTES TO CONSOLIDATED FINANCIAL STATEMENTSYears Ended December 31, 2007, 2006 and 2005
    (Dollars in Thousands)
  1.
    SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES  Basis
    of presentation and consolidation
    mutual-to-stock
    Note 11-
  Business
    and operating segments
      Use of
    estimates
   F-7




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
    Reclassifications
    Significant
    group concentrations of credit risk
    Cash
    and cash equivalents
    Trading
    activities
    Securities
    held-to-maturity other-than-temporary other-than-temporary
   F-8




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  Loans
    held for sale
    Loans
          Allowance
    for loan losses
         F-9




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
      Mortgage
    loan servicing
    Premises
    and equipment
    Bank-owned
    life insurance
    Transfers
    of financial assets
    Goodwill
    and other intangible assets
   F-10




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  Derivative
    financial instruments
  Derivative
    Loan Commitments
        Forward
    Loan Sale Commitments
      Retirement
    plan
     F-11




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  Stock
    compensation plans
    Income
    taxes
      Advertising
    costs
    Comprehensive
    income
    Years Ended December 31,2007


2006


2005Unrealized holding gains (losses) on securities available for
    sale

$
907


$
438


$
(750
)Reclassification adjustment for (gains) losses and impairment
    recognized in income


(38
)


25



869



463



(750
)Tax effect


(117
)


(39
)


93Net-of-tax
    amount


752



424



(657
)FASB Statement No. 158 tax effect adjustment


101







$
853


$
424


$
(657
)  F-12




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
    December 31,2007


2006Net unrealized loss on securities available for sale

$
(1,256
)

$
(2,125
)Tax effect


106



223Net-of-tax
    amount


(1,150
)


(1,902
)Unrecognized net actuarial gain pertaining to defined benefit
    plan


346



346Unrecognized prior service cost pertaining to defined benefit
    plan


(644
)


(644
)(298
)


(298
)Tax effect of initially applying SFAS No. 158


101



Net-of-tax
    amount


(197
)


(298
)$
(1,347
)

$
(2,200
)   Earnings
    per share
        Years Ended December 31,2007


2006Net income

$
3,642


$
4,740Average number of common shares outstanding


7,644,470



7,949,042Effect of dilutive options and restricted stock


42,073



4,697Average number of common shares outstanding used to calculate
    diluted earnings per common share


7,686,543



7,953,739    F-13




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  Recent
    accounting pronouncements
           F-14




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  pooling-of-interests
    2.
    RESTRICTIONS
    ON CASH AND DUE FROM BANKS    3.
    SHORT-TERM
    INVESTMENTS    December 31,2007


2006Federal funds sold

$
2,370


$
12,438Repurchase agreements


3,029



Money market accounts


4,964



4,310$
10,363


$
16,748  F-15




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  4.
    SECURITIES    Gross


GrossAmortized


Unrealized


Unrealized


FairCost


Gains


Losses


ValueDecember 31, 2007:Securities available for sale:Government-sponsored enterprise obligations

$
85,972


$
240


$
(34
)

$
86,178Municipal obligations


1,206







(4
)


1,202Mortgage-backed securities


70,839



373



(1,831
)


69,381$
158,017


$
613


$
(1,869
)

$
156,761December 31, 2006:Securities available for sale:Government-sponsored enterprise obligations

$
97,723


$
70


$
(291
)

$
97,502Municipal obligations


1,707







(20
)


1,687Mortgage-backed securities


29,677



8



(1,892
)


27,793$
129,107


$
78


$
(2,203
)

$
126,982Securities held to maturity:Mortgage-backed securities

$
31










$
31     Amortized


FairCost


ValueWithin 1 year

$
53,822


$
53,860After 1 year through 5 years


33,356



33,520$
87,178


$
87,380    F-16




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
    Less Than Twelve Months


Over Twelve MonthsGross





GrossUnrealized


Fair


Unrealized


FairLosses


Value


Losses


ValueDecember 31, 2007:Government-sponsored enterprise obligations

$
26


$
12,920


$
8


$
3,983Municipal obligations










4



1,202Mortgage-backed securities


4



2,317



1,827



24,968Total temporarily impaired securities

$
30


$
15,237


$
1,839


$
30,153December 31, 2006:Government-sponsored enterprise obligations

$
70


$
29,972


$
221


$
41,865Municipal obligations










20



1,687Mortgage-backed securities










1,892



27,220Total temporarily impaired securities

$
70


$
29,972


$
2,133


$
70,772     5.
    LOANS    December 31,2007


2006Mortgage loans on real estate:Residential

$
187,991


$
212,131Commercial


168,463



159,188Construction


55,763



68,877Home equity


37,768



36,546449,985



476,742Other loans:Commercial


159,233



101,055Consumer


2,592



3,110161,825



104,165Total loans


611,810



580,907Allowance for loan losses


(5,789
)


(5,337
)Net deferred loan costs


925



913Loans, net

$
606,946


$
576,483  F-17




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
    Years Ended December 31,2007


2006


2005Balance at beginning of year

$
5,337


$
5,211


$
2,874Allowance added from acquisition of Chart Bank










1,812Provision for loan losses


634



201



525Recoveries


81



77



79Charge-offs


(263
)


(152
)


(79
)Balance at end of year

$
5,789


$
5,337


$
5,211     December 31,2007


2006Total impaired loans

$
880


$
1,256Valuation allowances related to impaired loans

$
37


$
Non-accrual loans

$
1,598


$
1,548Loans greater than 90 days past due and still accruing

$



$
   Years Ended December 31,2007

2006

2005Average recorded investment in impaired loans

$
439


$
38


$
266Interest income recognized on a cash basis on impaired loans

$
9


$



$
12     Borrower-in-Custody
  6.
    MORTGAGE
    LOAN SERVICING   F-18




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
    Years Ended December 31,2007


2006


2005Balance at beginning of year

$
335


$
503


$
653Additions


553



73



132Amortization


(297
)


(241
)


(282
)Balance at end of year

$
591


$
335


$
503Fair value of mortgage servicing assets

$
2,252


$
1,446


$
943     7.
    PREMISES
    AND EQUIPMENT    December 31,


Estimated2007


2006


Useful LivesLand

$
1,415


$
1,415



Buildings and improvements


5,043



4,339



5-40 yearsEquipment


7,327



6,940



3-10 years13,785



12,694Less accumulated depreciation


(8,375
)


(7,492
)$
5,410


$
5,202       Year Ending December 31,

Amount2008

$
1,1902009


1,1872010


1,1872011


1,0852012


1,097Thereafter


8,601$
14,347    F-19




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  15-year 5-year 15-year
    8.
    GOODWILL
    AND OTHER INTANGIBLE ASSETS      December 31,2007


2006Customer-based intangible assets

$
6,964


$
6,756Accumulated amortization


(4,490
)


(3,687
)$
2,474


$
3,069     2008

$
6162009


4662010


3522011


2722012


194Thereafter


574$
2,474  F-20




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  9.
    DEPOSITS    December 31,2007


2006Demand deposits

$
113,023


$
120,966NOW


52,000



28,606Regular and other savings


79,167



81,569Money market deposits


110,544



93,988Total non-certificate accounts


354,734



325,129Term certificates less than $100


159,272



176,677Term certificates of $100 or more


103,362



131,373Total certificate accounts


262,634



308,050Total deposits

$
617,368


$
633,179     2008

$
218,0492009


30,9642010


5,1032011


2,7762012


5,742$
262,634   10.
    SHORT-TERM
    BORROWINGS    11.
    LONG-TERM
    DEBT    December 31,2007


2006FHLB fixed-rate advances

$
162,784


$
139,969Subordinated debt issued to trust subsidiary






9,000$
162,784


$
148,969  F-21




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  FHLB
    advances
    December 31, 2007


December 31, 2006Weighted





WeightedAverage





AverageMaturity Date

Amount


Rate


Amount


Rate2007

$





%

$
22,969



3.25
%2008


26,994



4.09



27,000



4.092009


43,000



5.08



27,000



5.382010(1)


64,000



4.53



40,000



4.292011


15,000



5.63



15,000



5.632012


3,000



4.26







2014


3,000



4.58







2027(2)


7,790



5.31



8,000



5.31$
162,784



4.74
%

$
139,969



4.49
%     (1)
    
    Includes a $10,000 advance that is callable in 2008.(2)
    
    Amortizing advance requiring monthly principal and interest
    payments.      Subordinated
    debt
  , ,
   F-22




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  12.
    INCOME
    TAXES    Years Ended December 31,2007


2006


2005Current tax provision:Federal

$
1,178


$
2,711


$
2,394State


90



1,162



6621,268



3,873



3,056Deferred tax benefit:Federal


405



(976
)


(2,012
)State


191



(1,117
)


(365
)596



(2,093
)


(2,377
)Change in valuation reserve


(332
)


(2,138
)


433264



(4,231
)


(1,944
)Total tax provision (benefit)

$
1,532


$
(358
)

$
1,112     Years Ended December 31,2007


2006


2005Statutory rate


34.0
%


34.0
%


34.0
%Increase (decrease) resulting from:State taxes, net of federal tax


3.6



0.7



12.7Change in valuation reserve


(6.4
)


(40.2
)


28.1Officers life insurance


(2.5
)


(2.6
)


(5.4
)Other, net


0.9



(0.1
)


2.7Effective tax rates


29.6
%


(8.2
)%


72.1
%  F-23




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
    December 31,2007


2006Deferred tax liabilities:Federal

$
(1,425
)

$
(1,599
)State


(478
)


(525
)(1,903
)


(2,124
)Deferred tax assets:Federal


5,477



6,048State


1,474



1,7366,951



7,784Valuation reserve


(252
)


(584
)6,699



7,200Net deferred tax asset

$
4,796


$
5,076     December 31,2007


2006Allowance for loan losses

$
2,362


$
2,192Employee benefit plans


1,656



900Net unrealized loss on securities available for sale


106



223Depreciation


(155
)


(148
)Net deferred loan costs


(379
)


(373
)Mortgage servicing rights


(242
)


(136
)Capital loss carryforward


252



11Writedown of land






573Deferred gain on sale of premises


1,445



1,547Write-down of loans






966Charitable contribution carryover


848



977Purchase accounting adjustments


(989
)


(1,220
)Other, net


144



1485,048



5,660Valuation reserve


(252
)


(584
)Deferred tax asset

$
4,796


$
5,076    F-24




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
    13.
    OTHER
    COMMITMENTS AND CONTINGENCIES    Loan
    commitments
        December 31,2007


2006Commitments to grant loans

$
15,097


$
15,657Unadvanced funds on construction loans


25,126



27,783Unadvanced funds on home equity lines-of-credit


42,691



39,905Unadvanced funds on commercial lines-of-credit


29,909



21,001Unadvanced funds on personal lines-of-credit


2,413



2,432Commercial letters of credit


1,213



1,355   case-by-case
   F-25




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  Derivative
    financial instruments
      Other
    contingencies
    14.
    STOCKHOLDERS
    EQUITY  Minimum
    regulatory capital requirements
     F-26




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
    Minimum to beMinimum Capital


Well CapitalizedActual


Requirements


Under Prompt Corrective Action ProvisionsAmount


Ratio


Amount


Ratio


Amount


RatioDecember 31, 2007:Total capital to risk weighted assets:Consolidated

$
78,526



12.3
%

$
50,982



8.0
%


N/A



N/ABank


71,154



11.2



50,944



8.0


$
63,680



10.0
%Tier 1 capital to risk weighted assets:Consolidated


72,554



11.4



25,491



4.0



N/A



N/ABank


65,182



10.2



25,472



4.0



38,208



6.0Tier 1 capital to average assets:Consolidated


72,554



8.3



34,898



4.0



N/A



N/ABank


65,182



7.5



35,006



4.0



43,757



5.0December 31, 2006:Total capital to risk weighted assets:Consolidated

$
89,256



14.4
%

$
49,473



8.0
%


N/A



N/ABank


66,632



10.8



49,408



8.0


$
61,761



10.0
%Tier 1 capital to risk weighted assets:Consolidated


83,475



13.5



24,737



4.0



N/A



N/ABank


60,851



9.9



24,704



4.0



37,056



6.0Tier 1 capital to average assets:Consolidated


83,475



9.6



34,710



4.0



N/A



N/ABank


60,851



6.7



34,793



4.0



43,491



5.0  F-27




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
    December 31, 2007


December 31, 2006Consolidated


Bank


Consolidated


BankTotal stockholders equity per financial statements

$
107,444


$
100,072


$
109,405


$
95,781Adjustments for Tier 1 capital:Goodwill


(33,763
)


(33,763
)


(33,763
)


(33,763
)Intangible assets


(2,474
)


(2,474
)


(3,069
)


(3,069
)Trust preferred securities










9,000



Net unrealized loss on securities available for sale, net of tax


1,150



1,150



1,902



1,902Unrecognized gains and prior service cost pertaining to defined
    benefit plan, net of tax


197



197







Total Tier 1 capital


72,554



65,182



83,475



60,851Adjustments for total capital:Allowance for loan losses


5,789



5,789



5,337



5,337Allowance for unfunded lending commitments


183



183



444



444Total capital per regulatory reporting

$
78,526


$
71,154


$
89,256


$
66,632   Common
    stock repurchases
    Liquidation
    account
    15.
    RESTRICTIONS
    ON DIVIDENDS, LOANS AND ADVANCES   F-28




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
        16.
    EMPLOYEE
    BENEFIT PLANS  401(k)
    plan
    Supplemental
    retirement plans
   F-29




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  Director
    fee continuation plan
    Years Ended December 31,2007


2006


2005Change in benefit obligation:Benefit obligation at beginning of year

$
801


$
788


$
Benefit obligation at inception for prior service cost










824Service cost


44



65



110Interest cost


45



45



34Change in discount rate






(9
)


(10
)Actuarial gain


64



(88
)


(170
)Benefits paid


(36
)






Benefit obligation at end of year


918



801



788Fair value of plan assets at end of year










Funded status


(918
)


(801
)


(788
)Unrecognized net actuarial gain










(179
)Unrecognized prior service cost










746Accrued pension cost

$
(918
)

$
(801
)

$
(221
)Accumulated benefit obligation at end of year

$
(826
)

$
(718
)

$
(599
)     December 31,2007

2006Discount rate


6.00
%


6.00
%Rate of fee increase


2.00



2.00     Years Ended December 31,2007


2006


2005Service cost

$
44


$
65


$
110Interest cost


45



45



34Amortization of prior service cost


103



103



77Recognized net actuarial gain


(27
)


(14
)


$
165


$
199


$
221     Actuarial gain

$
(28
)Prior service costs

$
103  F-30




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
    Years Ended December 31,2007

2006

2005Discount rate


6.00
%


5.75
%


5.75
%Annual salary increase


2.00



2.00



2.00     Year Ending December 31,

Amount2008

$
1672009


1872010


1872011


1872012


151Years
    2013-2017


160   Executive
    employment and change in control agreements
      Employee
    Stock Ownership Plan
  30-year
 F-31




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##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
    Year Ending December 31,

Amount2008

$
832009


882010


942011


992012


104Thereafter


4,705$
5,173       December 31,2007


2006Allocated


30,989



15,940Committed to be allocated


15,940



15,940Unallocated


430,374



446,314477,303



478,194       17.
    STOCK
    COMPENSATION PLANS   F-32




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##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
    WeightedAverageNumber of


Grant DateShares


Fair ValueRestricted stock at beginning of year


218,335


$
13.95Granted


18,034



12.49Vested


(48,260
)


13.88Forfeited


(13,866
)


13.95Restricted stock at end of year


174,243


$
13.82         2007


2006Fair value

$
2.26


$
3.86Risk-free interest rate


3.41
%


4.49
%Expected dividend yield


1.90
%


0.85
%Expected volatility


18.71
%


14.66
%Expected term


5 years



7 years    F-33




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##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
    WeightedAverageWeighted


RemainingAverage


Contractual


AggregateExercise


Term


IntrinsicShares


Price


(In Years)


ValueOutstanding at beginning of year


448,750


$
13.95Granted


116,800



12.49Exercised






Forfeited


(23,784
)


13.95Expired






Outstanding at end of year


541,766


$
13.64



5.9


$
72Exercisable at end of year


96,327


$
13.89



5.6


$
3       2008


2009


2010


2011


2012


TotalStock options

$
402


$
249


$
150


$
84


$
47


$
932Restricted stock


665



607



527



324



36



2,159$
1,067


$
856


$
677


$
408


$
83


$
3,091   18.
    RELATED
    PARTY TRANSACTIONS    Years Ended December 31,2007


2006Beginning balance

$
3,136


$
1,348Originations


837



1,875Payments and change in status


(290
)


(87
)Ending balance

$
3,683


$
3,136    F-34




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##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  19.
    FAIR
    VALUE OF FINANCIAL INSTRUMENTS      Cash and cash equivalents:
  Securities:
  Loans and loans held for sale:
  Deposits:
  Short-term borrowings:
  Long-term debt:
  Accrued interest:
  Off-balance-sheet instruments:
 F-35




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##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
    December 31,2007


2006Carrying


Fair


Carrying


FairAmount


Value


Amount


ValueFinancial assets:Cash and cash equivalents

$
64,591


$
64,591


$
72,595


$
72,595Securities available for sale


156,761



156,761



126,982



126,982Securities held to maturity










31



31Restricted equity securities


11,591



11,591



10,951



10,951Loans and loans held for sale


606,946



606,915



639,769



629,054Accrued interest receivable


3,648



3,648



3,480



3,480Financial liabilities:Deposits


617,368



618,583



633,179



633,056Short-term borrowings


2,500



2,510



10,000



10,000Long-term debt


162,784



163,702



148,969



151,160Accrued interest payable


721



721



815



815   20.  CONDENSED
    FINANCIAL STATEMENTS OF PARENT COMPANY
    BALANCE
    SHEETS
  December 31,2007


2006(In thousands)AssetsCash due from Benjamin Franklin Bank

$
1,882


$
16,567Investment in common stock of Benjamin Franklin Bank


100,070



95,779Loan to Benjamin Franklin Bank ESOP


5,173



5,252Other assets


652



909Total assets

$
107,777


$
118,507Liabilities and Stockholders EquitySubordinated debt issued to trust subsidiary

$



$
9,000Other liabilities


333



102Total liabilities


333



9,102Stockholders equity


107,444



109,405Total liabilities and stockholders equity

$
107,777


$
118,507  F-36




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##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  STATEMENTS
    OF INCOME
  Years Ended December 31,2007


2006


2005Income:Dividends from Benjamin Franklin Bank

$
633


$
633


$
633Interest on investments


615



692



464Total income


1,248



1,325



1,097Contribution to Benjamin Franklin Bank Charitable Foundation










4,000Other operating expenses


768



642



642Income (loss) before income taxes and equity in undistributed
    net income of Benjamin Franklin Bank


480



683



(3,545
)Applicable income tax provision (benefit)


(52
)


20



(1,420
)532



663



(2,125
)Equity in undistributed net income of Benjamin Franklin Bank


3,110



4,077



2,556Net income

$
3,642


$
4,740


$
431  F-37




---



##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 (Dollars
    in Thousands)
  STATEMENTS
    OF CASH FLOWS
  Years Ended December 31,2007


2006


2005Cash flows from operating activities:Net income

$
3,642


$
4,740


$
431Adjustments to reconcile net income to net cash provided (used)
    by operating activities:Equity in undistributed net income of Benjamin Franklin Bank


(3,110
)


(4,077
)


(2,556
)Contribution to Benjamin Franklin Bank Charitable Foundation










4,000Decrease (increase) in other assets


257



2,233



(2,192
)Increase in other liabilities


231



69



Other, net


1,248



517



Net cash provided (used) by operating activities


2,268



3,482



(317
)Cash flows from investing activities:Investment in Benjamin Franklin Bank










(30,120
)Loan to ESOP










(5,537
)Repayment of ESOP loan


79



74



212Other, net










(41
)Net cash provided (used) by investing activities


79



74



(35,486
)Cash flows from financing activities:Proceeds from issuance of common stock










53,721Common stock repurchased


(6,271
)


(3,373
)


Repayment of subordinated debt


(9,000
)






Dividends paid on common stock


(1,761
)


(1,048
)


(486
)Net cash provided (used) by financing activities


(17,032
)


(4,421
)


53,235Net increase (decrease) in cash and cash equivalents


(14,685
)


(865
)


17,432Cash and cash equivalents at beginning of year


16,567



17,432



Cash and cash equivalents at end of year

$
1,882


$
16,567


$
17,432  F-38




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##### Table of Contents



BENJAMIN
    FRANKLIN BANCORP, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Concluded)
 (Dollars
    in Thousands)
  NOTE 21.
    QUARTERLY
    DATA (UNAUDITED)  Years Ended December 31,2007


2006Fourth


Third


Second


First


Fourth


Third


Second


FirstQuarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter(In thousands, except per share data)Interest and dividend income

$
12,201


$
12,081


$
12,052


$
11,839


$
11,602


$
11,395


$
10,822


$
10,440Interest expense


6,160



6,315



6,000



6,013



6,016



5,410



4,908



4,529Net interest income


6,041



5,766



6,052



5,826



5,586



5,985



5,914



5,911Provision for loan losses


165



57



229



183



(169
)


248



146



(24
)Net interest income, after provision for loan losses


5,876



5,709



5,823



5,643



5,755



5,737



5,768



5,935Non-interest income


1,965



2,079



1,794



1,972



(1,202
)(1)


1,738



1,577



1,411Non-interest expenses


6,226



6,250



6,425



6,786



5,939



5,675



5,361



5,362Income (loss) before income taxes


1,615



1,538



1,192



829



(1,386
)


1,800



1,984



1,984Provision (benefit) for income taxes


465



467



362



238



(2,430
)


632



724



716Net income

$
1,150


$
1,071


$
830


$
591


$
1,044


$
1,168


$
1,260


$
1,268Earnings per common share:Basic

$
0.15


$
0.14


$
0.11


$
0.08


$
0.13


$
0.15


$
0.16


$
0.16Diluted

$
0.15


$
0.14


$
0.11


$
0.07


$
0.13


$
0.15


$
0.16


$
0.16     (1)
    
    Includes $2,361 loss on loans held for sale F-39