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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

For the quarterly period ended March 31, 2004

OR

For the transition period from              to             

Commission File Number: 0-17177

BSB Bancorp, Inc.

(Exact name of registrant as specified in its charter)

58-68 Exchange Street, Binghamton, New York 13901

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (607) 779-2406

n/a

Former name, former address and former fiscal year, if changed since last report

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes: x No: ¨

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes: x No: ¨

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of May 5, 2004: 9,377,242 shares of common stock, $0.01 par value.

INDEX

Part 1

Item 1

BSB BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CONDITION (unaudited)

See accompanying notes to unaudited interim consolidated financial statements.

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BSB BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

See accompanying notes to unaudited interim consolidated financial statements.

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BSB BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

See accompanying notes to unaudited interim consolidated financial statements.

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BSB BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (unaudited)

(In Thousands, Except Share and Per Share Data)

See accompanying notes to unaudited interim consolidated financial statements.

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BSB BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

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BSB BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (unaudited)

See accompanying notes to unaudited interim consolidated financial statements.

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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2004

In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments which are of a normal recurring nature necessary for a fair presentation of the results for the interim periods presented. All intercompany transactions have been eliminated in consolidation. Amounts in the prior periods’ financial statements are reclassified whenever necessary to conform to the current period’s presentation. The December 31, 2003 Consolidated Statement of Condition is derived from the audited consolidated financial statements included in the Company’s 2003 Annual Report on Form 10-K. The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s 2003 Annual Report on Form 10-K. The results of operations for the March 31, 2004 interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year ended December 31, 2004, or any other interim periods.

Basic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed in a manner similar to that of basic earnings per share, except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares (such as stock options) were issued during the reporting period, computed using the treasury stock method. The following table provides information on the calculation of basic earnings per share and diluted earnings per share for the quarters ended March 31, 2004 and 2003, respectively.

The Company has a subsidiary business trust, BSB Capital Trust I (“Trust I”), formed in 1998 for the purpose of issuing trust preferred securities which qualify as Tier 1 capital of the Company. Trust I issued at par $30.0 million of 8.125% trust preferred securities in an exempt offering. The trust preferred securities are non-voting, mandatorily redeemable in 2028 and guaranteed by the Company. The entire net proceeds to Trust I from the offering were invested in junior subordinated obligations of the Company, which are the sole assets of Trust I. During 2002, the Company repurchased $7.0 million of these preferred securities at a net gain of approximately $726,000, before taxes. In 2003, the Company repurchased $1.5 million of these preferred securities at a net gain of approximately $6,000, before taxes.

During 2002, two new subsidiary trusts were formed for the purpose of issuing additional trust preferred securities that are non-voting and guaranteed by the Company. BSB Capital Trust II (“Trust II”) was formed in the second quarter of 2002 for the purpose of issuing trust preferred securities which qualify as Tier I capital for the Company. Trust II issued at par $10.0 million of floating rate securities maturing in 2032. These preferred securities pay interest at the six-month London InterBank Offering Rate (“LIBOR”) plus 370 basis points. BSB Capital Trust III (“Trust III”) was formed in the fourth quarter of 2002 for the purpose of issuing trust preferred securities which qualify as Tier I capital for the Company. Trust III issued at par $15.0 million of floating rate securities maturing in 2033. These preferred securities pay interest at the three-month LIBOR plus 335 basis points. The entire net proceeds from Trust II and Trust

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III were invested in junior subordinated obligations of the Company, which are the sole assets of the respective trusts. The proceeds from each of these trusts were used for general corporate purposes.

See Note 7 for discussion of FIN No. 46 and its impact on trust preferred securities.

In March 2003, the Company sold its entire holdings of $9.1 million in certain corporate securities based upon an internal analysis concerned with anticipated downgrades associated with deteriorating fundamentals of the issuer. These corporate securities were acquired in 2002 and were initially classified as held to maturity securities. Under the provisions of SFAS No. 115, such sale transactions cast doubt on the Company’s intent to hold other held to maturity securities until maturity. As a result, in March 2003, the Company reclassified its entire held to maturity portfolio as available for sale and recognized the unrealized gain of $312,000 on the transferred securities as a credit to accumulated other comprehensive income within shareholders’ equity as of the transfer date. The aggregate amortized cost of the held to maturity portfolio was $44.9 million, with a fair value of $45.2 million at the time of the transfer. In addition, as a result of the sale and transfer, the Company is precluded from classifying any newly purchased securities as held to maturity for the foreseeable future.

The Company has two stock-based compensation plans that are described more fully in Note 15 to the Consolidated Financial Statements in the Company’s 2003 Annual Report on Form 10-K. The Company accounts for those plans under the recognition and measurement principles of APB Opinion No. 25, “Accounting for Stock Issued to Employees”, and related interpretations. No stock-based compensation cost has been reflected in net income, as all options granted under the plans had an exercise price equal to the market value of the underlying common stock on the grant date. The following table illustrates the effect on net income and earnings per share as if the Company had applied the fair value recognition provisions of FASB Statement No. 123, “Accounting for Stock-Based Compensation”, to its stock-based compensation plans.

During the first three months of 2004, the Company granted 15,750 stock options at the exercise price of $38.10. For 2003, the Company granted 246,116 options in the first quarter, at exercise prices ranging from $20.82 to $21.18, and 289,996 options in the fourth quarter, at the exercise price of $39.50, under the stock-based compensation plans in effect.

The Company’s stock options have characteristics significantly different from those of traded options for which the Black-Scholes model was developed. Since changes in the subjective input assumptions can materially affect the fair value estimates, the existing model, in management’s opinion, does not necessarily provide a single reliable measure of the fair value of its stock options. In addition, the pro forma effect on reported net income and earnings per share for the quarters ended March 31, 2004 and 2003 may not be representative of the pro forma effects on reported net income and earnings per share for future periods.

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Letters of credit written are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including bond financing and similar transactions. Most of these guarantees extend for periods ranging from one month to five years. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Since some of the letters of credit are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

For letters of credit, the amount of collateral obtained, if any, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include residential and commercial real estate and business related assets. As required by a letter of credit agreement for one commercial relationship, the Company has $281,000 in a pledged deposit account at a commercial bank with no corporate securities pledged at March 31, 2004. By comparison, the Company pledged as collateral corporate securities having a fair value of approximately $280,000 at December 31, 2003. With respect to a second standby letter of credit agreement which had a notional value of $1.0 million, the Company has $1.6 million in corporate securities pledged to the Bank at March 31, 2004 and $1.7 million in corporate securities pledged to the Bank at December 31, 2003.

The components of net periodic benefit cost for the above plans for the years ended December 31, 2003, 2002 and 2001 are as follows:

As previously disclosed in our financial statements for the year ended December 31, 2003, the Company expected to contribute $500,000 to the pension plan. As of March 31, 2004, the Company has not made a contribution to the plan.

In January 2003, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation No. 46 (“FIN 46”), “Consolidation of Variable Interest Entities.” The objective of this interpretation is to provide guidance on how to identify a variable interest entity (“VIE”) and determine when the assets, liabilities, non-controlling interests and results of operations of a VIE need to be included in a company’s consolidated financial statements. A company that holds variable interests in an entity will need to consolidate the entity if the company’s interest in the VIE is such that the company will absorb a majority of the VIE’s expected losses and/or receive a majority of the entity’s expected residual returns, if they occur. FIN 46 also requires additional disclosures by primary beneficiaries and other significant variable interest holders. FIN 46 was effective for all VIE’s created after January 31, 2003. However, the FASB postponed that effective date to December 31, 2003. In December 2003, the FASB issued a revised FIN 46 (FIN 46 R), which has an effective date of March 31, 2004 for VIE’s created prior to February 1, 2003, except for special purpose entities, which must adopt either FIN 46 or FIN 46 R as of December 31, 2003. The requirements of FIN 46 R resulted in the deconsolidation of the Company’s wholly owned subsidiary trusts, formed to issue mandatorily redeemable preferred securities (“trust preferred securities”). The deconsolidation, as of December 31, 2003, resulted in the recognition of the trust preferred securities as junior subordinated obligations on the consolidated statement of financial condition. The junior subordinated obligations of the trusts also include common interests, which aggregate approximately $1.7 million, and are offset by an identical amount representing the Company’s investments in these trusts and is included in other assets. The provisions of FIN 46 R had no impact on the Company’s consolidated statements of income or cash flows

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for 2003. During the three months ended March 31, 2004, interest expense on the junior subordinated obligations has separate presentation on the consolidated statement of income from interest expense on the trust preferred securities in 2003. Adoption of FIN 46 R had no impact on net interest income for the three months ended March 31, 2004.

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General Information

BSB Bancorp, Inc. (“BSB” or the “Company”), holding company for BSB Bank & Trust Company (the “Bank”), earned net income for the quarter ended March 31, 2004 of $4.1 million or $0.43 per diluted share, compared to net income of $4.9 million or $0.52 per diluted share for the fourth quarter of 2003 and $3.9 million or $0.41 per diluted share for the first quarter of 2003.

On April 26, 2004, the Board of Directors declared a quarterly cash dividend of $0.25 per share payable on June 10, 2004 to shareholders of record at the close of business on May 21, 2004.

Recent Developments

On December 24, 2003, Partners Trust Financial Group, Inc. (“Partners”) announced a definitive agreement to acquire BSB Bancorp, Inc. The merger is contingent upon the successful conversion and restructuring of Partners and Partners Trust, MHC into a full capital stock corporation. The Company will be merged into the reorganized Partners following the conversion. The conversion, offering and acquisition are expected to be completed in mid-2004, subject to regulatory and stockholder approvals. The consideration to be paid in the merger will be 40% cash and 60% stock. Shareholders of the Company will be able to elect either $36.00 in cash or shares of common stock of the reorganized Partners Trust, subject to customary proration and allocation procedures. The exchange ratio for the stock portion will be determined by dividing $36.00 by the price at which shares of Partners Trust common stock are sold in the conversion. The aggregate value of the transaction is approximately $347 million.

Critical Accounting Policies

In the course of the Company’s normal business activity, management must select and apply many accounting policies and methodologies that lead to the financial results presented in the consolidated financial statements of the Company. Some of these policies are more critical than others. Management considers the accounting policy relating to the allowance for loan losses to be a critical accounting policy because of the uncertainty and subjectivity inherent in estimating the levels of allowance needed to cover probable credit losses within the loan portfolio and the material effect that these estimates can have on the Company’s results of operations. While management’s evaluation of the allowance for loan losses as of March 31, 2004 considers the allowance to be adequate, under adversely different conditions or assumptions, the Company may need to increase the allowance. In addition, the assumptions and estimates used in the internal reviews of the Company’s non-performing loans and potential problem loans, as well as the associated evaluation of the related collateral coverage for these loans, have a significant impact on the overall analysis of the adequacy of the allowance for loan losses. Though management has concluded that the current evaluation of collateral values is reasonable under the circumstances, if collateral evaluations were significantly lowered, the Company’s allowance for loan losses policy would also require making additional provisions for loan losses. All accounting policies are important and the reader of the financial statements should review these policies, described in Note 1 to the Consolidated Financial Statements included in the Company’s 2003 Annual Report on Form 10-K, to gain a greater understanding of how the Company’s financial performance is reported.

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Forward-looking Statements

Certain statements in this Form 10-K, especially within Management’s Discussion and Analysis of Financial Condition and Results of Operations, will include forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. In general, the word or phrases “will likely result”, “are expected to”, “will continue”, “is anticipated”, “estimate”, “project”, “believe” or similar expressions are intended to identify “forward-looking statements”. In addition, certain disclosures and information customarily provided by financial institutions, such as analysis of the adequacy of the allowance for loan losses or an analysis of the interest rate sensitivity of the Company’s assets and liabilities, are inherently based upon predictions of future events and circumstances. Although the Company makes such statements based on assumptions which it believes to be reasonable, there can be no assurance that actual results will not differ materially from the Company’s expectations. Some of the important factors which could cause its results to differ from any results which might be projected, forecasted or estimated, based on such forward-looking statements include: (i) general economic and competitive conditions in the markets in which the Company operates, and the risks inherent in its operations; (ii) the Company’s ability to manage its credit risk and control its operating expense, increase earning assets and non-interest income, and maintain its net interest margin; and (iii) the level of demand for new and existing products. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements. Except as required by applicable law, the Company does not intend, and specifically disclaims any obligation, to update forward-looking statements.

FINANCIAL CONDITION

Total assets of the Company increased to $2,221.5 million at March 31, 2004 from $2,212.1 million at December 31, 2003. Changes in the composition of total assets relate directly to the Company’s strategy to reduce credit risk and maintain a loan portfolio consistent with the objectives of management in preparation for the pending merger with Partners Trust Financial Group, Inc. discussed earlier. The most significant elements of change relate to increases of $15.7 million in investment securities and $31.2 million in federal funds partially offset by the decrease of $25.5 million in the aggregate net loan portfolio.

The Company’s total loan portfolio decreased $24.9 million or 1.7% to $1,424.4 million at March 31, 2004 from $1,449.2 million at December 31, 2003. The overall decrease in the total loan portfolio relates to decreases in commercial and industrial loan (“C&I”) ($17.3 million), consumer ($15.9) and commercial real estate ($6.6 million) portfolios. The impact of such decreases on the loan portfolio was partially offset by the $14.9 million net increase in residential real estate loans to $573.7 million at March 31, 2004.

The Company continues to actively pursue opportunities to be a leader of the residential mortgage business in its primary markets. Residential mortgage loan originations, in the first quarter of 2004, have slowed dramatically, consistent with national trends after setting quarterly records during 2003. Originations were $39.5 million for the first quarter of 2004, as compared to $86.9 million in the first three months of 2003. Despite the recent slowdown, the Company considers itself well positioned to maintain a leadership role in the residential mortgage market within the Bank’s primary geographic areas. In addition, the Company continues to successfully market a fixed-rate, bi-weekly mortgage loan product, which provides the most significant origination volume in our key market areas. For the first three months of 2004, bi-weekly mortgage loan originations were $22.8 million or 57.8% of the aggregate originations for the same period. Also, current mortgage originations include refinanced mortgage loans at a 72.6% level. As a result, with bi-weekly originations of 10- and 15-year loans being approximately 89.1% of all bi-weekly originations, the overall residential loan portfolio increased with shorter durations. The bi-weekly mortgage loan products promoted by the Company also require payment by automatic debit to a checking account with the Company. Such deposit account relationships have contributed directly to the Company’s growth in checking accounts, discussed later, since they tend to retain higher than average deposit balances. In 2004, the Company also continued to sell most residential real estate loans originated with extended maturities of 20 years or longer in order to maintain flexibility within the real estate portfolio. Sales of residential real estate loans amounted to $6.1 million for the three months of 2004 compared to $5.8 million for the comparative period in 2003.

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The commercial real estate loan portfolio decreased 3.3% to $192.8 million at March 31, 2004 compared to $199.4 million at December 31, 2003. The commercial real estate portfolio in the Company’s primary market area continues to be hindered by slow economic growth of moderate-sized commercial organizations within the region. The Company has used this period to evaluate the long-term strategy and objectives of the organization once the pending merger is completed. As a result, commercial real estate originations were $9.1 million for the first quarter of 2004 with $6.2 million representing additional draws for existing loan relationships. By comparison, commercial real estate originations were $16.8 million for the same period in 2003.

During the first three months of 2004, the commercial and industrial (“C&I”) loan portfolio decreased $17.2 million to $306.4 million at March 31, 2004 from $323.6 million at December 31, 2003. The majority of this decline was attributed to principal reductions and loan pay-offs, as well as a reduction of $2.2 million associated with loan charge-offs (see “Asset Quality”) for the period. As discussed under commercial real estate, the Company has used this period to assess strategic objectives for this line of business in terms of corporate risk, targeted geographic growth and customer service relationships following the pending merger. As a result, commercial loan originations were only $3.1 million for the quarter ended March 31, 2004 compared to $17.9 million for the same period in 2003.

Consumer loans decreased to $351.5 million at March 31, 2004 from $367.4 million at December 31, 2003, which reflects continued softening in this market mix. Consumer loans generally provide opportunities to meet the credit needs of our individual customers, and the short-term nature of these loans shortens the duration of the entire loan portfolio. The decrease in consumer loans reflects the overall decline of $13.3 million in consumer loan originations, with the most significant declines in both direct and indirect auto loan originations. New auto loans continued to lag due to heavy competition in the new car market from auto manufacturers’ incentives provided to market their products. In the first quarter of 2004, the Company’s more strict underwriting guidelines and the seasonal decline in auto sales resulted in a decline of $5.3 million in indirect used car loans. Equity lines of credit were the only consumer loan sector to increase during the first quarter of 2004. Originations of equity lines of credit were $5.6 million for the first quarter of 2004 representing 23.6% of overall consumer loan originations for the same period. Such originations tend to have longer repayment terms than the remainder of this portfolio.

The Company’s investment portfolio activity continues to reflect the ongoing role for such assets’ demands associated with fluctuations in loan demand, as well as fulfilling the regulatory and operational liquidity demands of day-to-day business activities. Despite the continued rapid amortization and calls of securities related to the low interest rate environment, the Company maintained investment securities (including Federal Home Loan Bank of New York stock) at $659.6 million at March 31, 2004 compared to $643.4 million at December 31, 2003. Mortgage-backed securities, including collateralized mortgage obligations (“CMOs”), represented approximately 54% of the aggregate portfolio at March 31, 2004 compared to 58% at December 31, 2003. Other securities consist of United States Treasury securities, United States Government Agency securities, as well as obligations of state and local governments and corporate debt and equity securities. Continued high levels of prepayments on mortgage-backed securities impacted the current year-to-date yield of the investment portfolio; however, they provide sufficient liquidity to fund current operating requirements as the Company prepares for the transition under the terms of the pending merger.

In March 2003, the Company sold its entire holdings of certain corporate securities based upon an internal analysis that anticipated downgrades associated with deteriorating fundamentals of the issuer. These corporate securities were acquired in 2002 and were initially classified as held to maturity securities. Under the provisions of SFAS No. 115, such sales transactions cast doubt on the Company’s intent to hold other held to maturity securities to maturity. As a result, in March 2003, the Company reclassified its entire held to maturity portfolio to available for sale. The aggregate amortized cost of the held to maturity portfolio was $44.9 million at the time of the transfer. In addition, as a result of the sale and transfer, the Company is precluded from classifying any newly purchased securities as held to maturity for the foreseeable future.

Other real estate owned and repossessed assets decreased to $832,000 at March 31, 2004 compared to $1.2 million at December 31, 2003. Other real estate owned, as a component of such total, included $731,000 at March 31, 2004 compared to $1.1 million at December 31, 2003. Activity for the period included the transfer of approximately $39,000 in loans, principally commercial, with sales and recoveries of $374,000 for the period. Repossessed assets were $102,000 at March 31, 2004 as well as December 31, 2003.

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The Company initially purchased $20.0 million of bank owned life insurance (“BOLI”) in December 2002 with an additional $20.0 million acquired in December 2003. The Company’s BOLI investment was acquired to provide funding for certain employee benefits, and is carried at the cash surrender value of the underlying policies. BOLI provides tax-exempt income (recorded as non-interest income) based on increases in the cash surrender value of the underlying policies. Income from this source was $468,000 for the first quarter of 2004 compared to $247,000 for the first quarter of 2003.

Other assets decreased to $28.4 million at March 31, 2004 from $35.7 million at December 31, 2003. The most significant factor associated with the $7.3 million decrease in other assets relates to refundable federal income taxes of $3.9 million received in March 2004. In addition, deferred income taxes associated with the increase in the fair value of securities held for sale resulted in a $1.6 million decrease in other assets during the period.

Total deposits decreased to $1,580.6 million at March 31, 2004 compared to $1,589.1 million at December 31, 2003. Core deposits are generally considered deposit accounts other than time deposits. Money market deposits increased by $8.6 million during the first quarter of 2004, primarily due to the $12.6 million increase in municipal accounts, which tend to be cyclical, consistent with the related government activities. Time deposits decreased $18.3 million at March 31, 2004 compared to December 31, 2003. Retail time deposits, principally maturities of six months to less than two years, declined $19.1 million, while municipal time deposits provided a partial offset with an increase of $3.4 million. Non-interest-bearing demand accounts decreased $2.4 million during the first quarter of 2004 with the decrease primarily attributed to the $6.5 million decline in commercial checking accounts. These declines were primarily offset by increases in a variety of retail checking accounts as well as a $1.4 million increase in municipal checking accounts.

The following table shows the detail composition at both dates:

The Company’s borrowings increased to $420.6 million at March 31, 2004 from $410.8 million at December 31, 2003. The primary source of borrowings is Federal Home Loan Bank (“FHLB”) advances which accounted for $400.8 million and $390.8 million of aggregate borrowings at March 31, 2004 and December 31, 2003, respectively. New FHLB advances for 2004 have a weighted average term of 2.8 years at March 31, 2004. The comparative weighted average term for all FHLB advances outstanding at March 31, 2004 was 5.3 years. Other borrowings at March 31, 2004 were primarily comprised of $18.7 million of securities sold under agreements to repurchase and no FHLB line of credit was utilized. These borrowings, along with deposits, are used to fund the Company’s lending and investment activities.

Total shareholders’ equity increased by $7.4 million in the first three months of 2004 primarily due to net income of $4.1 million and the increase of $3.3 million from the proceeds of the exercise of stock options, including related tax benefits. Cash dividends of $2.3 million were paid, offset by a $2.4 million increase in accumulated other comprehensive income.

Asset Quality

In order to improve overall asset quality, the Company has dedicated itself to implementing a strong credit culture, which is expected to translate into an improved or lower credit risk profile for the future. The Company utilizes a system to rate substantially all of its commercial loans based on their respective risks. The system assists management in assessing the adequacy of the allowance for loan losses. Loan ratings are continually reviewed to determine the integrity of the respective ratings.

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Total non-performing assets were $17.5 million or 0.79% of total assets at March 31, 2004, compared to $14.4 million or 0.65% of total assets at December 31, 2003. Loans are placed on a non-accrual status when, in the judgment of management, the probability of collection of principal or interest is deemed to be insufficient to warrant further accrual. When a loan is placed in a non-accrual status, previously accrued but unpaid interest is deducted from interest income. Other than with respect to consumer loans, the Company does not accrue interest on loans greater than 90 days past due unless the estimated fair value of the collateral and active collection efforts are believed to be adequate to result in full recovery.

The following table sets forth information regarding non-accrual loans, loans which are 90 days or more overdue and other real estate owned (“ORE”) and repossessed assets held by the Company at the dates indicated: