THE LITTLE BANK THAT MADE GOOD.

This article focuses on the performance of Smithtown Bancorp. In 2008, it reported a 10% increase in profits to $15.7 million or $1.55 per share. The stock was able to post a return of 12% annually over the past ten years which beats Standard & Poor's 500-stock index by an average of 15 percentage points each year. In addition, the bank has successfully avoiding making bad loans. The bank chose not to participate in the federal government's Troubled Asset Relief Program even though it was eligible for $38 million in capital. INSET: Five More Stress-Free Banks.