Business & Finance
Business and Finance
Business and Finance 
Tue, December 1, 2009
Mon, November 30, 2009
Bank of Smithtown Opens New Branches in East Setauket and Deer Park
SMITHTOWN, NY--(Marketwire - November 30, 2009) - Bank of Smithtown (a subsidiary of Smithtown Bancorp) (
"Each of these branch projects has been in development for more than four years," said Brad Rock, the Bank's Chairman & CEO. "We have always thought that both of these sites are excellent locations, and that's why we have been willing to be so persistent with the development challenges we faced at each site."
The East Setauket branch is located on the heavily-traveled Nesconset Highway (Route 347) in front of a popular Waldbaum's supermarket and just to the east of a Wal-Mart Supercenter and BJ's Wholesale Club. It is a stand-alone pad site with multiple drive-through lanes.
The Deer Park branch is also a stand-alone pad site with multiple drive-through lanes and is located on Commack Road near the Tanger outlet mall known as "The Arches."
While Bank of Smithtown's earnings were positive for the third quarter, earnings were reduced by increased provisions for possible future loan losses. Net charge-offs for the first nine months of 2009 were $1.212 million, representing approximately .06% of average loans, as compared with an annualized average of 2.71% for the industry. For the same nine-month period, however, the Bank has grown its core deposit base by $495 million, or by 46%.
Mr. Rock said: "Due to the continued recessionary economic environment and stress on the commercial real estate market in the New York metropolitan area, we expect elevated levels of nonperforming loans, loan loss provisions and charge-offs to continue for some months to come. But as the economy takes its course and we work through the resulting problem loans, we continue to build a valuable franchise for collecting core deposits. These new branches will become part of that continued success."
With approximately $2.7 billion in assets, Bank of Smithtown is the largest independent commercial bank headquartered on Long Island. Founded in 1910, Bank of Smithtown is nearing its 100th anniversary as a community bank. The stock of its parent holding company, Smithtown Bancorp, is traded on the NASDAQ Global Select Market under the symbol "SMTB."
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