FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
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or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from____________________ to________________
Commission File Number: 1-6451
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Summit Bancorp.
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(Exact name of registrant as specified in its charter)
New Jersey 22-1903313
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
301 Carnegie Center, P.O. Box 2066, Princeton, New Jersey 08543-2066
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(Address of principal executive offices) (Zip Code)
(609) 987-3200
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(Registrant's telephone number, including area code)
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(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.
[X] Yes [ ] No
As of April 30, 1996 there were 93,504,424 shares
of common stock, $1.20 par value, outstanding.
<PAGE>
SUMMIT BANCORP.
FORM 10-Q
INDEX
Part I. Financial Information. Page No.
Item 1. Financial Statements
Consolidated Balance Sheets -
March 31, 1996, December 31, 1995 and March 31, 1995..............2
Consolidated Statements of Operations -
Three Months Ended March 31, 1996 and 1995.......................3
Consolidated Statements of Cash Flows -
Three Months Ended March 31, 1996 and 1995........................4
Consolidated Statements of Shareholders' Equity -
Three Months Ended March 31, 1996 and 1995........................5
Consolidated Average Balance Sheets With Resultant
Interest and Rates - Three Months Ended
March 31, 1996 and 1995...........................................6
Notes to Consolidated Financial Statements (Unaudited)..............7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations..........................9
Part II. Other Information.
Item 1. Legal Proceedings............................................15
Item 4. Submission of Matters to a Vote of Security Holders..........15
Item 6. Exhibits and Reports on Form 8-K.............................17
Signatures...............................................................18
Exhibit Index............................................................19
1
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PART I - FINANCIAL INFORMATION
------------------------------
ITEM 1. FINANCIAL STATEMENTS.
- -----------------------------
<TABLE>
SUMMIT BANCORP.
CONSOLIDATED BALANCE SHEETS
Unaudited
(dollars in thousands)
<CAPTION>
March 31, December 31, March 31,
1996 1995 1995
------------- ------------ ------------
<S> <C> <C> <C>
Assets
Cash and cash equivalents:
Cash and due from banks $ 1,122,977 $ 1,337,718 $ 1,147,414
Federal funds sold and securities purchased under agreements to resell 41,892 161,650 111,572
------------- ------------ ------------
Total cash and cash equivalents 1,164,869 1,499,368 1,258,986
Interest bearing deposits with banks 36,338 18,329 12,009
Trading account securities 49,755 28,637 18,815
Securities available for sale 2,476,859 2,408,065 927,509
Securities held to maturity:
U.S. Government and Federal agencies 1,667,684 1,261,172 2,502,799
States and political subdivisions 271,409 271,621 359,185
Other securities 1,532,827 1,514,287 1,986,906
------------- ------------ ------------
Total securities held to maturity 3,471,920 3,047,080 4,848,890
Loans (net of unearned discount):
Commercial 5,354,519 5,321,047 5,318,803
Residential mortgage 3,551,936 3,296,818 2,847,042
Commercial mortgage 2,456,852 2,315,384 2,236,030
Consumer 3,192,783 3,086,325 2,763,739
------------- ------------ ------------
Total loans 14,556,090 14,019,574 13,165,614
Less: Allowance for loan losses 280,590 279,034 296,936
------------- ------------ ------------
Net loans 14,275,500 13,740,540 12,868,678
Premises and equipment 213,192 206,691 210,565
Assets held for accelerated disposition 15,559 16,650 31,795
Accrued interest receivable 136,227 132,441 113,890
Other real estate owned, net 26,410 24,295 45,919
Due from customers on acceptances 19,838 26,740 20,664
Other assets 443,309 388,099 392,656
------------- ------------ ------------
Total Assets $ 22,329,776 $ 21,536,935 $ 20,750,376
============= ============ ============
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing demand deposits $ 3,628,466 $ 3,873,801 $ 3,390,066
Interest bearing deposits:
Savings and time deposits 13,698,428 13,373,864 12,799,849
Commercial certificates of deposit $100,000 and over 766,910 707,438 644,327
------------- ------------ ------------
Total deposits 18,093,804 17,955,103 16,834,242
Commercial paper 37,090 38,503 46,951
Other borrowed funds 1,531,549 1,004,053 1,432,425
Long-term debt 398,605 424,862 513,331
Accrued interest payable 56,428 45,567 53,548
Bank acceptances outstanding 19,838 26,740 20,664
Accrued expenses and other liabilities 375,540 239,791 270,818
------------- ------------ ------------
Total liabilities 20,512,854 19,734,619 19,171,979
Shareholders' equity:
Preferred stock without par value:
Series B: Authorized 1,200,000; issued and outstanding 600,166 in
1996 and 1995, adjustable-rate cumulative, $50 stated value 30,008 30,008 30,008
Series C: Authorized 800,000; issued and outstanding 504,481 in
1996 and 1995, adjustable-rate cumulative, $25 stated value 12,612 12,612 12,612
Common stock par value $1.20:
Authorized 130,000,000 shares; issued and outstanding 93,398,970
at March 31, 1996; 88,471,028 at December 31, 1995 and
85,403,039 at March 31, 1995 112,079 106,165 102,484
Surplus 869,307 826,788 735,440
Retained earnings 794,948 821,579 711,121
Net unrealized gain (loss) on securities, net of tax (2,032) 5,164 (13,268)
------------- ------------ ------------
Total shareholders' equity 1,816,922 1,802,316 1,578,397
------------- ------------ ------------
Total Liabilities and Shareholders' Equity $ 22,329,776 $ 21,536,935 $ 20,750,376
============= ============ ============
<FN>
See accompanying Notes to Consolidated Financial Statements.
</FN>
</TABLE>
2
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<TABLE>
SUMMIT BANCORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(dollars in thousands, except per share data)
<CAPTION> Three Months Ended
March 31,
-------------------------
1996 1995
----------- -----------
<S> <C> <C>
Interest Income
Interest and fees on loans $ 295,129 $ 273,421
Interest on securities held to maturity:
Taxable 46,744 66,970
Tax-exempt 4,795 5,912
Interest on securities available for sale 39,211 15,650
Interest on Federal funds sold and securities
purchased under agreements to resell 1,115 712
Interest on trading account securities 568 266
Interest on deposits with banks 191 229
----------- -----------
Total interest income 387,753 363,160
Interest Expense
Interest on savings and time deposits 123,601 108,319
Interest on commercial certificates of deposit
$100,000 and over 10,541 8,998
Interest on borrowed funds 27,620 30,255
----------- -----------
Total interest expense 161,762 147,572
----------- -----------
Net interest income 225,991 215,588
Provision for loan losses 15,500 16,200
----------- -----------
Net interest income after provision for loan losses 210,491 199,388
Non-Interest Income
Service charges on deposit accounts 23,456 21,020
Service and loan fee income 10,569 7,248
Trust income 9,243 8,332
Securities gains 757 2,226
Trading account gains 31 364
Other 14,207 12,800
----------- -----------
Total non-interest income 58,263 51,990
Non-Interest Expenses
Salaries 62,992 62,292
Pension and other employee benefits 23,927 22,297
Occupancy, net 20,241 17,713
Furniture and equipment 15,633 14,733
FDIC assessment 1,226 9,313
Other real estate owned expenses 2,299 2,053
Advertising and public relations 3,732 4,222
Restructuring charges 110,700 -
Other 31,985 29,750
----------- -----------
Total non-interest expenses 272,735 162,373
----------- -----------
Income (loss) before income taxes (benefit) (3,981) 89,005
Federal and state income taxes (benefit) (1,742) 31,738
----------- -----------
Net Income (Loss) $ (2,239) $ 57,267
=========== ===========
Net Income (Loss) Per Common Share $ (0.03) $ 0.66
=========== ===========
Average Common Shares Outstanding (in thousands) 93,134 85,208
=========== ===========
<FN>
Note: Certain prior period amounts have been reclassified for comparative purposes.
See accompanying Notes to Consolidated Financial Statements.
</FN>
</TABLE>
3
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<TABLE>
SUMMIT BANCORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
(dollars in thousands)
<CAPTION>
Three Months Ended
March 31,
---------------------------
1996 1995
------------- -------------
<S> <C> <C>
Operating activities
Net income (loss) $ (2,239)$ 57,267
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for loan losses and other real estate owned 15,872 17,575
Depreciation, amortization and accretion, net 7,001 9,734
Restructuring charges 110,700 -
Gains on sales of trading account securities and securities available for sale (788) (2,590)
Losses (gains) on sales of mortgages held for sale 18 (436)
Gains on sales of other real estate owned (503) (1,112)
Proceeds from sales of other real estate owned 6,138 5,095
Proceeds from sales of mortgages held for sale 17,232 8,074
Originations of mortgages held for sale (15,625) (17,626)
Net (increase) decrease in trading account securities (21,087) 16,419
(Increase) decrease in accrued interest receivable and other assets (45,799) 49,089
Increase in accrued interest payable, accrued
expenses and other liabilities 29,008 69,007
------------- -------------
Net cash provided by operating activities 99,928 210,496
------------- -------------
Investing activities
Proceeds from maturities of securities held to maturity 154,550 240,928
Purchases of securities held to maturity (579,512) (287,078)
Purchases of securities available for sale (282,951) (107,215)
Proceeds from maturities of securities available for sale 121,299 20,154
Proceeds from sales of securities available for sale 81,018 299,450
Net (increase) decrease in interest bearing deposits with banks (18,009) 6,813
Net increase in loans (559,043) (78,027)
Purchases of premises and equipment, net (13,780) (4,478)
------------- -------------
Net cash (used in) provided by investing activities (1,096,428) 90,547
------------- -------------
Financing activities
Net increase (decrease) in demand and savings deposits 22,703 (677,278)
Net increase in time deposits 115,998 534,411
Net increase (decrease) in short-term borrowings 526,083 (83,663)
Principal payments on long-term debt (26,257) (96,303)
Proceeds from issuance of long-term debt - 64,640
Dividends paid (38,156) (22,125)
Proceeds from issuance of common stock for
immaterial pooling acquisitions 48,323 -
Proceeds from issuance of common stock under dividend
reinvestment and other stock plans 13,597 5,788
Repurchase of preferred stock - (5,984)
Other, net (290) (1,699)
------------- -------------
Net cash provided by (used in) financing activities 662,001 (282,213)
------------- -------------
(Decrease) increase in cash and cash equivalents (334,499) 18,830
Cash and cash equivalents at beginning of period 1,499,368 1,240,156
------------- -------------
Cash and cash equivalents at end of period $ 1,164,869 $ 1,258,986
============= =============
Supplemental disclosure of cash flow information
Cash paid:
Interest payments $ 150,901 $ 128,965
Income tax payments 395 296
Noncash investing activities:
Loans made in conjunction with the sale of other real estate owned 200 134
Net transfer of loans to other real estate owned 9,000 6,868
Net transfer of assets to assets held for accelerated disposition - 2,765
<FN>
See accompanying Notes to Consolidated Financial Statements.
</FN>
</TABLE>
4
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<TABLE>
SUMMIT BANCORP.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Unaudited
(dollars in thousands)
<CAPTION>
Net Total
Preferred Common Retained Unrealized Shareholders'
Stock Stock Surplus Earnings Gain (Loss) Equity
-------- --------- --------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1994 $ 50,008 $ 102,005 $ 730,131 $ 676,281 $ (24,708) $ 1,533,717
Net income - - - 57,267 - 57,267
Cash dividends declared:
Preferred stock - - - (774) - (774)
Common stock - - - (23,057) - (23,057)
Common stock issued:
Dividend reinvestment and other stock plans
(211,692 shares) - 254 4,448 - - 4,702
Exercise of stock options, net (187,395 shares) - 225 861 - - 1,086
Redemption of Series C preferred stock (7,388) - - 1,404 - (5,984)
Change in unrealized gain (loss) on securities,
net of tax - - - - 11,440 11,440
-------- --------- --------- --------- ----------- -----------
Balance, March 31, 1995 $ 42,620 $ 102,484 $ 735,440 $ 711,121 $ (13,268) $ 1,578,397
======== ========= ========= ========= =========== ===========
Balance, December 31, 1995 $ 42,620 $ 106,165 $ 826,788 $ 821,579 $ 5,164 $ 1,802,316
Balances at beginning of period of immaterial
pooled acquisitions (4,353,085 shares) - 5,224 29,612 14,054 (567) 48,323
Net income (loss) - - - (2,239) - (2,239)
Cash dividends declared:
Preferred stock - - - (639) - (639)
Common stock - - - (37,807) - (37,807)
Common stock issued:
Dividend reinvestment and other stock plans
(283,457 shares) - 340 9,098 - - 9,438
Exercise of stock options, net (291,400 shares) - 350 3,809 - - 4,159
Change in unrealized gain (loss) on securities,
net of tax - - - - (6,629) (6,629)
-------- --------- --------- --------- ----------- -----------
Balance, March 31, 1996 $ 42,620 $ 112,079 $ 869,307 $ 794,948 $ (2,032) $ 1,816,922
======== ========= ========= ========= =========== ===========
<FN>
See accompanying Notes to Consolidated Financial Statements.
</FN>
</TABLE>
5
<PAGE>
<TABLE>
SUMMIT BANCORP.
CONSOLIDATED AVERAGE BALANCE SHEETS WITH RESULTANT INTEREST AND RATES
Unaudited
(Tax-equivalent basis, dollars in thousands)
<CAPTION>
Three Months Ended March 31,
---------------------------------------------------------------
1996 1995
----------------------------- -----------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
----------- --------- ------- ----------- --------- -------
<S> <C> <C> <C> <C> <C> <C>
Assets
Interest earning assets:
Federal funds sold and securities purchased
under agreements to resell $ 76,240 $ 1,115 5.88 % $ 49,590 $ 712 5.82 %
Interest bearing deposits with banks 14,686 191 5.23 15,383 229 6.04
Trading account securities 43,934 580 5.31 19,534 285 5.92
Securities available for sale 2,533,420 39,211 6.19 949,882 15,800 6.65
Securities held to maturity:
U.S. Government and Federal agencies 1,575,048 24,797 6.30 2,433,841 36,615 6.02
States and political subdivisions 277,485 6,563 9.46 366,067 8,906 9.73
Other securities 1,508,622 22,702 6.02 2,001,800 30,331 6.06
----------- --------- ------- ----------- --------- -------
Total securities held to maturity 3,361,155 54,062 6.43 4,801,708 75,852 6.32
----------- --------- ------- ----------- --------- -------
Loans:
Commercial 5,321,143 111,029 8.39 5,299,929 115,263 8.82
Residential mortgage 3,494,086 65,259 7.47 2,818,998 50,833 7.21
Commercial mortgage 2,447,476 53,208 8.70 2,236,185 49,604 8.87
Consumer 3,155,019 66,884 8.53 2,753,970 58,977 8.69
----------- --------- ------- ----------- --------- -------
Total loans 14,417,724 296,380 8.27 13,109,082 274,677 8.50
----------- --------- ------- ----------- --------- -------
Total interest earning assets 20,447,159 391,539 7.70 18,945,179 367,555 7.87
----------- --------- ------- ----------- --------- -------
Non-interest earning assets:
Cash and due from banks 1,135,779 1,064,488
Allowance for loan losses (293,194) (308,531)
Other assets 799,279 856,321
----------- -----------
Total non-interest earning assets 1,641,864 1,612,278
----------- -----------
Total Assets $22,089,023 $20,557,457
=========== ===========
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Savings deposits $ 8,077,351 51,276 2.55 $ 7,887,984 50,191 2.58
Time deposits 5,634,517 72,325 5.16 4,890,035 58,128 4.82
Commercial certificates of deposit
$100,000 and over 778,039 10,541 5.45 637,004 8,998 5.73
----------- --------- ------- ----------- --------- -------
Total interest bearing deposits 14,489,907 134,142 3.72 13,415,023 117,317 3.55
----------- --------- ------- ----------- --------- -------
Commercial paper 44,265 582 5.29 50,047 706 5.72
Other borrowed funds 1,435,412 19,278 5.40 1,407,679 19,896 5.73
Long-term debt 410,642 7,760 7.56 521,122 9,653 7.41
----------- --------- ------- ----------- --------- -------
Total interest bearing liabilities 16,380,226 161,762 3.97 15,393,871 147,572 3.89
----------- --------- ------- ----------- --------- -------
Non-interest bearing liabilities:
Demand deposits 3,524,750 3,299,086
Other liabilities 308,185 302,158
----------- -----------
Total non-interest bearing liabilities 3,832,935 3,601,244
Shareholders' equity 1,875,862 1,562,342
----------- -----------
Total Liabilities and Shareholders' Equity $22,089,023 $20,557,457
=========== ===========
Net Interest Income (tax-equivalent basis) 229,777 3.73 % 219,983 3.98 %
======= =======
Tax-equivalent basis adjustment (3,786) (4,395)
--------- ---------
Net Interest Income $ 225,991 $ 215,588
========= =========
Net Interest Income as a Percent of Interest
Earning Assets (tax-equivalent basis) 4.52 % 4.71 %
======= =======
<FN>
Notes: The tax-equivalent adjustment was computed based on a Federal income tax rate of 35% for 1996 and 1995.
Average balances and rates include non-accruing and renegotiated loans.
See accompanying Notes to Consolidated Financial Statements.
</FN>
</TABLE>
6
<PAGE>
SUMMIT BANCORP.
Notes to Consolidated Financial Statements (Unaudited)
1.) Basis of Presentation
The accompanying financial statements reflect, in the opinion of
management, all normal, recurring adjustments necessary to
present fairly the financial position of Summit Bancorp. (the
"Company"), the results of its operations and changes in its
cash flows. The financial statements presented, in all material
respects, comply with the current reporting requirements of
supervisory authorities. For additional information and
disclosures required under generally accepted accounting
principles, reference is made to the registrant's 1995 Annual
Report on Form 10-K.
2.) Acquisitions
On March 1, 1996, UJB Financial Corp. completed its acquisition
of The Summit Bancorporation, and the company changed its name
to Summit Bancorp. This acquisition was accounted for as a
pooling of interests and all financial information has been
restated to reflect the combined results of operations. On
January 16, 1996, The Summit Bancorporation acquired Garden
State Bancshares, Inc. ("Garden State") and on February 23,
1996, UJB Financial Corp. acquired The Flemington National Bank
and Trust Company ("Flemington"). Both of these acquisitions
were accounted for as poolings of interests.
However, because these acquisitions were considered immaterial
to Summit Bancorp., the Flemington and Garden State transactions
were recorded as adjustments to beginning shareholders' equity
at January 1, 1996, without restating the consolidated financial
statements for 1995 and prior.
3.) Earnings Per Common Share
Earnings per common share is calculated by dividing net income,
less the dividends on the adjustable-rate cumulative preferred
stock, by the average daily number of common shares outstanding
during the period. Common stock equivalents are not included in
the calculation as they have no material dilutive effect.
4.) Recent Accounting Pronouncements
In May 1995 the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standards ("SFAS")
No.122, "Accounting for Mortgage Servicing Rights." This
Statement requires capitalization of the value of rights to
service mortgage loans for others, whether those rights were
acquired through
7
<PAGE>
purchase or origination. SFAS No. 122 also requires
that capitalized mortgage servicing rights be evaluated
for impairment based on their fair value with any adjustments
recognized through a valuation allowance. Effective January 1,
1996, SFAS No. 122 was adopted and capitalization of originated
mortgage servicing rights began. All capitalized mortgage
servicing rights, both originated and purchased, are evaluated
for impairment on a quarterly basis. The impact of adopting SFAS
No. 122 during the first quarter of 1996 was immaterial.
In October 1995 the FASB issued SFAS No. 123, "Accounting for
Stock-Based Compensation." This Statement encourages use of a
fair value based method of accounting for stock-based
compensation plans while allowing continued use of the intrinsic
value method of accounting prescribed by Accounting Principles
Board Opinion (APB) No. 25, "Accounting for Stock Issued to
Employees." Entities electing to continue using the APB No. 25
method of accounting must make pro forma disclosures of net
income and earnings per share as if the fair value based method
of accounting, as defined in SFAS No. 123, had been applied.
The accounting and disclosure requirements for SFAS No. 123 are
effective for fiscal years beginning after December 15, 1995.
Summit Bancorp. continues accounting for stock-based
compensation under APB No. 25 and will include the pro forma
disclosures required by SFAS No. 123 in financial statements
issued for fiscal years beginning January 1, 1996.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
---------------------------------------
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
-----------------------------------------------
FINANCIAL CONDITION
March 31, 1996 versus December 31, 1995
Total assets at March 31, 1996 were $22.3 billion, an increase
of $792.8 million or 3.7 percent from year-end 1995. The
increase in total assets was primarily related to the impact of
Garden State Bancshares, Inc.("Garden State") and The Flemington
National Bank and Trust Company ("Flemington") acquisitions.
These acquisitions represented approximately $597.7 million to
this increase.
Securities held to maturity at March 31, 1996 were $3.5 billion,
an increase of $424.8 million or 13.9 percent from year-end
1995. The increase from year-end 1995 was the result of $105.9
million from the two acquisitions and $473.6 million in
purchases, partially offset by $154.6 million in maturities.
At March 31, 1996, the aggregate market value of the
held-to-maturity portfolio was $3.4 billion. The aggregate
market value at December 31, 1995 was $3.0 billion .
At March 31, 1996, securities available for sale amounted to
$2.5 billion. These securities increased $68.8 million or 2.9
percent from year-end 1995, and comprised $2.1 billion of U.S.
Government and Federal agency securities and $379.9 million of
other securities, predominately corporate collateralized
mortgage obligations. During the first quarter of 1996, $283.0
million of securities were purchased. This increase was
partially offset by maturities of $121.3 million and sales of
$82.7 million.
At March 31, 1996, total loans amounted to $14.6 billion and
increased $536.5 million or 3.8 percent from year-end 1995. The
acquisitions of Garden State and Flemington accounted for $399.3
million of this increase. Residential mortgage loans increased
$255.1 million or 7.7 percent, and commercial mortgage loans
increased $141.5 million or 6.1 percent from December 31, 1995.
The Garden State and Flemington acquisitions contributed $188.6
million to residential mortgage loans and $132.6 million to the
commercial mortgage loan increase. Consumer loans increased
$106.5 million or 3.4 percent from year-end 1995 to $3.2
billion. Commercial loans at March 31, 1996, increased $33.5
million or .6 percent from year-end 1995.
Total deposits were $18.1 billion at March 31, 1996, an increase
of $138.7 million or .8 percent from December 31, 1995. This
increase was primarily due to the Garden State and Flemington
acquisitions. Demand deposits decreased $245.3 million or 6.3
percent from year-end 1995 to $3.6 billion following seasonal
patterns. Savings and time deposits increased $324.6 million or
2.4 percent from
9
<PAGE>
December 31, 1995 to $13.7 billion. Commercial certificates
of deposit $100,000 and over were $766.9 million, an
increase of $59.5 million or 8.4 percent compared to December
31, 1995. The increases in savings and time deposits, and
commercial certificates of deposit $100,000 and over were
primarily attributable to the Garden State and Flemington
acquisitions.
Borrowed funds, including commercial paper and long-term debt,
at March 31, 1996 increased $499.8 million or 34.1 percent from
December 31, 1995 to $2.0 billion. The increase in borrowed
funds was primarily used to prefund investment activity during
the first quarter of 1996.
Total shareholders' equity increased $14.6 million or .8 percent
from December 31, 1995 to $1.8 billion. Contributing to this
increase were the effects of the Garden State and Flemington
pooling acquisitions as of January 1, 1996 which added $48.3
million to shareholders' equity. As of March 31, 1996, the
unrealized loss on securities, net of tax, recorded in equity
amounted to $2.0 million, compared to an unrealized gain of $5.2
million at year-end 1995. The leverage ratio of the Company was
7.79 percent at March 31, 1996, compared to 7.97 percent at
December 31, 1995. Under the risk-based capital guidelines, the
Company's Tier I capital was 10.57 percent and total capital was
13.23 percent at March 31, 1996, compared with 10.75 percent and
13.46 percent, respectively, at December 31, 1995. The current
minimum regulatory guidelines for Tier I and total capital
ratios are 4.0 percent and 8.0 percent, respectively.
Non-performing Loans and Other Real Estate Owned
At March 31, 1996, total non-performing loans and other real
estate owned (OREO) were $215.2 million, a decline of $32.6
million or 13.2 percent, from the prior year. Compared to
December 31, 1995, non-performing loans and OREO increased $2.4
million. This increase is attributable to the Garden State and
Flemington acquisitions which added $11.3 million.
Non-performing loans at March 31, 1996, which have been defined
as impaired loans under Statement of Financial Accounting
Standards No.114 were $188.8 million, for which general and
specific allocations to the allowance for loan losses of $33.6
million were identified. At March 31, 1996, these loans
represented 1.30 percent of total loans, compared to $201.9
million, or 1.53 percent a year ago, and $188.5 million, or 1.34
percent, at December 31, 1995. OREO, net of a $13.4 million
reserve, amounted to $26.4 million at March 31, 1996, a decline
of 42.5 percent from $45.9 million a year ago, and rose 8.7
percent from $24.3 million at year-end 1995. The rise in OREO
from year-end 1995 is attributable to the Garden State and
Flemington acquisitions.
Allowance for Loan Losses
The allowance for loan losses at March 31, 1996 was $280.6
million or 1.93 percent of loans, compared to $279.0 million or
1.99 percent of loans at December 31, 1995 and $296.9 million or
2.26 percent of loans at March 31, 1995. For the three
10
<PAGE>
months ended March 31, 1996, net charge offs were $20.3 million,
or .57 percent of average loans compared to $24.6 million, or .76
percent of average loans in the first quarter of 1995. This
compared to net charge offs of $31.6 million, or .91 percent of
average loans in the fourth quarter of 1995. Transactions in the
allowance for loan losses for the quarters presented are shown
in the following table (dollars in thousands):
Mar 31, Dec 31, Mar 31,
1996 1995 1995
--------- -------- ---------
Balance, beginning of period $ 279,034 $ 291,156 $ 305,330
Allowance acquired through immaterial
poolings of interests 6,342 - -
Provision charged to expense 15,500 19,500 16,200
--------- --------- ---------
300,876 310,656 321,530
Net charge offs:
Loans charged off 25,053 37,061 28,126
Less recoveries 4,767 5,439 3,532
--------- --------- --------
Net loans charged off 20,286 31,622 24,594
--------- --------- --------
Balance, end of period $280,590 $ 279,034 $ 296,936
========= ========= =========
RESULTS OF OPERATIONS
For the first quarter of 1996, the Company reported a net loss
of $2.2 million or $.03 per share compared to net income of
$57.3 million or $.66 per share earned during the first quarter
of 1995.
The results for the first quarter of 1996 included restructuring
charges of $110.7 million. This included merger-related charges
of $89.0 million for The Summit Bancorporation, $7.9 million
for Garden State and $4.3 million for Flemington. Also included
was $9.5 million related to branch-closing expenses recorded in
conjunction with the announced agreement to open 70 in-store
supermarket branches. Without the after-tax effect of these
restructuring charges, net income would have been $67.7 million
or $.72 per share.
Interest income on a tax-equivalent basis was $391.5 million for
the quarter ended March 31, 1996, an increase of $24.0 million,
or 6.5 percent, compared to the prior year period. For the three
months ended March 31, 1996, interest earning assets averaged
$20.4 billion, an increase of $1.5 billion, or 7.9 percent. This
increase in interest earning assets, partially due to the Garden
State and Flemington acquisitions, contributed $39.6 million to
interest income. Offsetting this volume increase in interest
income, was a $15.6 million decrease due to the decline in
interest rates. The
11
<PAGE>
average prime rate for the first quarter of 1996 declined
approximately 50 basis points from the prior year period.
Interest expense increased $14.2 million, or 9.6 percent, for
the quarter ended March 31, 1996 compared to the same period in
1995. For the first quarter of 1996 interest bearing
liabilities averaged $16.4 billion, an increase of $1.0 billion,
or 6.4 percent, from the prior year period. This increase in
interest bearing liabilities contributed $16.8 million to
interest expense offset by a decrease of $2.6 million due to the
decline in interest rates.
Net interest income on a tax-equivalent basis was $229.8 million
for the quarter ended March 31, 1996, an increase of $9.8
million, or 4.5 percent, compared to the same period in 1995.
The net interest spread percentage on a tax-equivalent basis
(the difference between the rate earned on average interest
earning assets and the rate paid on average interest bearing
liabilities) was 3.73 percent for the three months ended March
31, 1996 compared to 3.98 percent for the prior year period.
Net interest margin (net interest income on a tax-equivalent
basis as a percentage of average interest earning assets) was
4.52 percent during the first three months of 1996 compared to
4.71 percent during the same period in 1995. The declines in net
interest spread and margin were primarily due to a narrower
spread between interest earning assets and retail savings and
time deposits in a lower interest rate environment.
Asset and liability management efforts involve the use of
certain derivative financial instruments. At March 31, 1996,
the notional value of this derivative financial instruments
portfolio consisted of $795.4 million of interest rate swaps.
Interest rate swaps are contractual agreements between two
parties to exchange interest payments at particular intervals.
These swaps are accounted for as hedges and are not recorded on
the balance sheet. Income or expense related to these
instruments is accrued monthly and recognized as an adjustment
to interest income or interest expense for those balance sheet
instruments being hedged. Hedged transactions resulted in a net
interest income reduction of $.5 million in the first quarter of
1996, compared to a $2.8 million reduction during the first
quarter of 1995. The cost to terminate these contracts at March
31, 1996 was $3.7 million compared to $1.1 million at December
31, 1995.
The provision for loan losses for the first quarter was $15.5
million, compared with $16.2 million for the same period a year
ago.
Non-interest income for the first quarter of 1996 totaled $58.3
million, an increase of $6.3 million, or 12.1 percent, compared
with the first quarter of 1995. Excluding securities gains,
total non-interest income was $57.5 million, an increase of $7.7
million, or 15.6 percent, from the prior year period.
12
<PAGE>
For the first quarter of 1996, net gains of $.8 million on the
sales and early redemptions of securities were realized
compared with net gains of $2.2 million in the first quarter of
1995. Service and loan fee income for the first three months
of 1996 increased $3.3 million, or 45.8 percent, compared with
the quarter ended March 31, 1995. This increase is primarily due
to an increase in service and fee income on mortgage loans. For
the first quarter of 1996, service charges on deposits were
$23.5 million, an increase of $2.4 million or 11.6 percent
compared with the first quarter of 1995. This increase was
primarily attributable to higher fees charged on personal demand
deposits. During the first three months of 1996, trust fee
income increased $.9 million or 10.9 percent compared to the
prior year period. This increase included the rise in income on
personal accounts and mutual funds.
Non-interest expenses for the first quarter of 1996 totaled
$272.7 million compared to $162.4 for the first quarter of 1995.
Included in non-interest expenses for the first quarter of 1996
was the impact of the Garden State and Flemington acquisitions.
Non-interest expenses for the first quarter of 1996 included
restructuring charges of $110.7 million. This included
merger-related charges of $89.0 million for The Summit
Bancorporation, $7.9 million for Garden State and $4.3 million
for Flemington. Also included was $9.5 million related to branch-closing
expenses recorded in conjunction with the announced agreement
to open 70 in-store supermarket branches. These merger-related
charges include estimated severance and outplacement costs,
expenses related to facilities closures and consolidation costs
directly attributable to the mergers.
Salaries expense increased $.7 million, or 1.1 percent, during
the first quarter of 1996 compared to the prior year period.
Pension and other employee benefits for the first quarter of
1996 were $23.9 million, up $1.6 million, or 7.3 percent,
compared with the first quarter of 1995. This increase was due
in part to an increase in medical insurance premiums.
Occupancy expenses for the first quarter of 1996 increased $2.5
million, or 14.3 percent, compared to the prior year period.
These expenses increased due in part to the severe weather
conditions experienced during the first three months of 1996.
Furniture and equipment expenses rose $.9 million, or 6.1
percent, in the first quarter of 1996 when compared with the
first quarter of 1995.
The FDIC assessment expense of $1.2 million represented a
decline of $8.1 million, or 86.8 percent, from the first quarter
of 1995. This decrease is attributable to the FDIC's decision to
reduce the assessment rate on deposits insured under the Bank
Insurance Fund effective June 1, 1995.
Other real estate owned expenses were $2.3 million for the first
quarter of 1996, an increase of $.2 million, or 12.0 percent,
from the first quarter of 1995. Included in these amounts is a
provision for losses on other real estate owned and expenses
related to holding property. A provision of $.4 million for the
first quarter of 1996
13
<PAGE>
was added to the allowance for other real estate owned.
This compares to a provision of $1.4 million for the
first quarter of 1995. Expenses for operating and
maintaining other real estate owned amounted to $1.9 million for
the first quarter of 1996 compared with $.7 million for the
first three months of 1995. Included in expenses for operating
and maintaining other real estate owned were gains on the sales
of property of $.5 million for the first quarter of 1996
compared to $1.1 million for the prior year period.
LIQUIDITY
Liquidity is the ability to meet the borrowing needs and deposit
withdrawal requirements of customers and support asset growth.
Principal sources of liquidity are deposit generation, access to
purchased funds, maturities and repayments of loans and
investment securities and interest and fee income.
The consolidated statements of cash flows present the change in
cash and cash equivalents from operating, investing and
financing activities. During the first three months of 1996,
net cash provided by operating activities totaled $99.9 million.
Contributing to net cash provided by operating activities were
the results of operations adjusted for the restructuring
charges, the provisions for loan losses and other real estate
owned, and proceeds from the sales of mortgages held for sale.
Net cash used in investing activities totaled $1.1 billion and
was the result of investment and loan activity. Net cash
provided by financing activities totaled $662.0 million,
reflecting the increases in time deposits and short-term
borrowings from year-end 1995.
During the first three months of 1996, proceeds of $275.8
million from maturities in the securities portfolios, including
securities available for sale, and an increase of $324.6 million
in savings and time deposits, and an increase of $499.8 million
in borrowed funds contributed to liquidity. Offsetting these
sources, demand deposits declined $245.3 million to $3.6 billion
from year-end 1995. Other uses of funds included an increase in
total loans of $536.5 million, and purchases totaling $862.5
million of securities, including held to maturity and available
for sale.
Additional liquidity is generated from maturities and principal
repayments in the investment portfolio. Scheduled maturities
and anticipated principal repayments of the held to maturity
portfolio will approximate $625 million throughout the balance
of 1996. In addition, all or part of the securities available
for sale portfolio of $2.5 billion could be sold to provide
liquidity. These sources can be used to meet the funding needs
during periods of loan growth. Liquidity is also available
through additional lines of credit and the ability to incur
additional debt. At March 31, 1996, there were $40.0 million of
short-term lines of credit available for general corporate
purposes, with no outstandings. In addition, the banking
subsidiaries have
14
<PAGE>
established lines of credit with the Federal Reserve Bank
and the Federal Home Loan Bank of New York which further
support and enhance liquidity.
PART II. OTHER INFORMATION
---------------------------
ITEM 1. LEGAL PROCEEDINGS.
- ---------------------------
1. In re Payroll Express Corporation of New York and Payroll
Express Corporation, United States Bankruptcy Court for the
Southern District of New York, Case Nos. 92-B-43149 (CB) and
92-B-43150 (CB). Reported on Form 10-K for the period ended
December 31, 1995. In the matter of John E. Pereira, as Chapter
11 Trustee of the Estate of Payroll Express Corporation et al v.
United Jersey Bank, both the Bank and the Trustee filed motions
for summary judgment. Those motions were heard on February 15,
1996 but no decision has been rendered by the court.
2. Annette Loatman on behalf of herself and all others
similarly situated v. United Jersey Bank, U.S. District Court
for the District of New Jersey, Civil Action #95CV05258 (JBS),
filed October 4, 1995. Reported on Form 10-K for the period
ended December 31, 1995. The mandatory settlement conference
which had been scheduled by the U.S. Magistrate for April 25,
1996 was changed, at the request of plaintiff's counsel, to a
status conference.
3. Michael Hochman and Joan Hochman, individually and on behalf
of a class of similarly situated depositors v. United Jersey
Bank, a New Jersey corporation and UJB Financial Corp., a New
Jersey Corporation, U.S. District Court for the District of New
Jersey, Civil Action No. 96-916 (MTB), removed February 27,
1996. Reported on Form 10-K for the period ended December 31,
1995. The Bank and UJB Financial Corp. (the former name of
Summit Bancorp.) have filed a motion for summary judgment. A
decision by the court is not expected until June 1996 or later.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
- ------------------------------------------------------------
A special meeting of the shareholders of Summit Bancorp. was
held January 12, 1996. Shareholders were presented with a
proposal to approve the Agreement and Plan of Merger, dated
September 10, 1995, as amended by Amendment No. 1 dated
15
<PAGE>
December 1, 1995, between UJB Financial Corp. and The Summit
Bancorporation and the transactions contemplated thereby
including (i) the merger of The Summit Bancorporation with and
into UJB Financial Corp. and the issuance of 0.90 shares of UJB
Financial Corp. Common Stock for each share of the outstanding
Common Stock of The Summit Bancorporation, and (ii) an amendment
to the Restated Certificate of Incorporation of UJB Financial
Corp. changing the name of UJB Financial Corp. to "Summit
Bancorp." Voting on the proposal occurred as follows: FOR -
38,196,694 shares, AGAINST - 1,888,317 shares, ABSTAINED -
275,649 shares.
16
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
- ------------------------------------------
(a) Exhibits
(27.1) Summit Bancorp. financial data schedule - March 31, 1996
(27.2) Summit Bancorp. restated financial data schedule -
December 31, 1995
(27.3) Summit Bancorp. restated financial data schedule -
September 30, 1995
(27.4) Summit Bancorp. restated financial data schedule -
June 30, 1995
(27.5) Summit Bancorp. restated financial data schedule -
March 31, 1995
(27.6) Summit Bancorp. restated financial data schedule -
December 31, 1994
(27.7) Summit Bancorp. restated financial data schedule -
September 30, 1994
(b) Reports on Form 8-K
In a current report on Form 8-K and an amendment on Form 8-K/A
dated March 1, 1996, the Company under Item 2 Acquisition or
Disposition of Assets reported the completion of the pooling
acquisition of The Summit Bancorporation on March 1, 1996 and
changing its name to Summit Bancorp. The Company under Item 7
Financial Statements, Pro Forma Financial Information and
Exhibits on Form 8-K/A dated March 1, 1996, reported audited
financial statements and notes for The Summit Bancorporation.
These financial statements included audited balance sheets at
December 31, 1994 and 1993, audited statements of income, cash
flows, and stockholders' equity for the three years ended
December 31, 1994. The company also reported interim financial
statements for The Summit Bancorporation.
These financial statements included balance sheets at September
30, 1995 and December 31, 1994, statements of income, cash flows
and stockholders' equity for the three months and nine months
ended September 30, 1995 and 1994. The Company also reported Pro
Forma Financial Information. This pro forma information
included a pro forma balance sheet at September 30, 1995 and pro
forma statements of income for the nine months ended September
30, 1995 and 1994 and the years ended December 31, 1994, 1993,
and 1992.
17
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
Summit Bancorp.
---------------
Registrant
DATE: May 15, 1996 BY: /s/WILLIAM J.HEALY
------------------
William J. Healy
Executive Vice President and Comptroller
(Chief Accounting Officer)
18
<PAGE>
EXHIBIT INDEX
-------------
Exhibit No.
- -----------
(27.1) Summit Bancorp. financial data schedule -
March 31, 1996
(27.2) Summit Bancorp. restated financial data schedule -
December 31, 1995
(27.3) Summit Bancorp. restated financial data schedule -
September 30, 1995
(27.4) Summit Bancorp. restated financial data schedule -
June 30, 1995
(27.5) Summit Bancorp. restated financial data schedule -
March 31, 1995
(27.6) Summit Bancorp. restated financial data schedule -
December 31, 1994
(27.7) Summit Bancorp. restated financial data schedule -
September 30, 1994
19
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MARCH
31, 1996 10-Q FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 1122977
<INT-BEARING-DEPOSITS> 36338
<FED-FUNDS-SOLD> 41892
<TRADING-ASSETS> 49755
<INVESTMENTS-HELD-FOR-SALE> 2476859
<INVESTMENTS-CARRYING> 3471920
<INVESTMENTS-MARKET> 3439575
<LOANS> 14556090
<ALLOWANCE> 280590
<TOTAL-ASSETS> 22329776
<DEPOSITS> 18093804
<SHORT-TERM> 1568639
<LIABILITIES-OTHER> 451806
<LONG-TERM> 398605
0
42620
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<OTHER-SE> 1662223
<TOTAL-LIABILITIES-AND-EQUITY> 22329776
<INTEREST-LOAN> 295129
<INTEREST-INVEST> 90750
<INTEREST-OTHER> 1874
<INTEREST-TOTAL> 387753
<INTEREST-DEPOSIT> 134142
<INTEREST-EXPENSE> 161762
<INTEREST-INCOME-NET> 225991
<LOAN-LOSSES> 15500
<SECURITIES-GAINS> 757
<EXPENSE-OTHER> 272735
<INCOME-PRETAX> (3981)
<INCOME-PRE-EXTRAORDINARY> (2239)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2239)
<EPS-PRIMARY> (0.03)
<EPS-DILUTED> (0.03)
<YIELD-ACTUAL> 4.52
<LOANS-NON> 188769
<LOANS-PAST> 6009
<LOANS-TROUBLED> 0
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<ALLOWANCE-OPEN> 285376
<CHARGE-OFFS> 25053
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<ALLOWANCE-CLOSE> 280590
<ALLOWANCE-DOMESTIC> 198892
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 81698
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
ON MARCH 1, 1996, UJB FINANCIAL CORP. COMPLETED ITS ACQUISITION OF THE SUMMIT
BANCORPORATION, AND THE COMPANY CHANGED ITS NAME TO SUMMIT BANCORP. THIS
ACQUISITION WAS ACCOUNTED FOR AS A POOLING OF INTERESTS AND THE SUMMARY
FINANCIAL INFORMATION HAS BEEN RESTATED.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 1337718
<INT-BEARING-DEPOSITS> 18329
<FED-FUNDS-SOLD> 161650
<TRADING-ASSETS> 28637
<INVESTMENTS-HELD-FOR-SALE> 2408065
<INVESTMENTS-CARRYING> 3047080
<INVESTMENTS-MARKET> 3040826
<LOANS> 14019574
<ALLOWANCE> 279034
<TOTAL-ASSETS> 21536935
<DEPOSITS> 17955103
<SHORT-TERM> 1042556
<LIABILITIES-OTHER> 312098
<LONG-TERM> 424862
0
42620
<COMMON> 106165
<OTHER-SE> 1653531
<TOTAL-LIABILITIES-AND-EQUITY> 21536935
<INTEREST-LOAN> 1132584
<INTEREST-INVEST> 353283
<INTEREST-OTHER> 9750
<INTEREST-TOTAL> 1495617
<INTEREST-DEPOSIT> 514733
<INTEREST-EXPENSE> 626376
<INTEREST-INCOME-NET> 869241
<LOAN-LOSSES> 71850
<SECURITIES-GAINS> 8606
<EXPENSE-OTHER> 642361
<INCOME-PRETAX> 379219
<INCOME-PRE-EXTRAORDINARY> 242870
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 242870
<EPS-PRIMARY> 2.77
<EPS-DILUTED> 2.77
<YIELD-ACTUAL> 4.60
<LOANS-NON> 188289
<LOANS-PAST> 9746
<LOANS-TROUBLED> 199
<LOANS-PROBLEM> 18708
<ALLOWANCE-OPEN> 311461
<CHARGE-OFFS> 126372
<RECOVERIES> 22095
<ALLOWANCE-CLOSE> 279034
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<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 85858
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
ON MARCH 1, 1996, UJB FINANCIAL CORP. COMPLETED ITS ACQUISITION OF THE SUMMIT
BANCORPORATION, AND THE COMPANY CHANGED ITS NAME TO SUMMIT BANCORP. THIS
ACQUISITION WAS ACCOUNTED FOR AS A POOLING OF INTERESTS AND THE SUMMARY
FINANCIAL INFORMATION HAS BEEN RESTATED.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 1066587
<INT-BEARING-DEPOSITS> 15951
<FED-FUNDS-SOLD> 70870
<TRADING-ASSETS> 32663
<INVESTMENTS-HELD-FOR-SALE> 1032770
<INVESTMENTS-CARRYING> 4649117
<INVESTMENTS-MARKET> 4609366
<LOANS> 13730520
<ALLOWANCE> 291156
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<DEPOSITS> 17513124
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<LIABILITIES-OTHER> 322516
<LONG-TERM> 475530
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<INTEREST-LOAN> 840172
<INTEREST-INVEST> 266549
<INTEREST-OTHER> 7843
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<INTEREST-DEPOSIT> 381855
<INTEREST-EXPENSE> 467884
<INTEREST-INCOME-NET> 646680
<LOAN-LOSSES> 52350
<SECURITIES-GAINS> 6815
<EXPENSE-OTHER> 483013
<INCOME-PRETAX> 277356
<INCOME-PRE-EXTRAORDINARY> 177714
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 177714
<EPS-PRIMARY> 2.04
<EPS-DILUTED> 2.04
<YIELD-ACTUAL> 4.60
<LOANS-NON> 206720
<LOANS-PAST> 11103
<LOANS-TROUBLED> 222
<LOANS-PROBLEM> 44243
<ALLOWANCE-OPEN> 311461
<CHARGE-OFFS> 89311
<RECOVERIES> 16656
<ALLOWANCE-CLOSE> 291156
<ALLOWANCE-DOMESTIC> 212353
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 78803
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
ON MARCH 1, 1996, UJB FINANCIAL CORP. COMPLETED ITS ACQUISITION OF THE SUMMIT
BANCORPORATION, AND THE COMPANY CHANGED ITS NAME TO SUMMIT BANCORP. THIS
ACQUISITION WAS ACCOUNTED FOR AS A POOLING OF INTERESTS AND THE SUMMARY
FINANCIAL INFORMATION HAS BEEN RESTATED.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 1344387
<INT-BEARING-DEPOSITS> 13288
<FED-FUNDS-SOLD> 183868
<TRADING-ASSETS> 42700
<INVESTMENTS-HELD-FOR-SALE> 925056
<INVESTMENTS-CARRYING> 4723676
<INVESTMENTS-MARKET> 4686899
<LOANS> 13221085
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<DEPOSITS> 17185629
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<LIABILITIES-OTHER> 317320
<LONG-TERM> 522890
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<TOTAL-LIABILITIES-AND-EQUITY> 20952796
<INTEREST-LOAN> 554215
<INTEREST-INVEST> 177688
<INTEREST-OTHER> 5147
<INTEREST-TOTAL> 737050
<INTEREST-DEPOSIT> 246994
<INTEREST-EXPENSE> 306750
<INTEREST-INCOME-NET> 430300
<LOAN-LOSSES> 33150
<SECURITIES-GAINS> 5046
<EXPENSE-OTHER> 324691
<INCOME-PRETAX> 180367
<INCOME-PRE-EXTRAORDINARY> 115537
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 115537
<EPS-PRIMARY> 1.34
<EPS-DILUTED> 1.34
<YIELD-ACTUAL> 4.66
<LOANS-NON> 220599
<LOANS-PAST> 9670
<LOANS-TROUBLED> 250
<LOANS-PROBLEM> 61160
<ALLOWANCE-OPEN> 305330
<CHARGE-OFFS> 59516
<RECOVERIES> 11402
<ALLOWANCE-CLOSE> 290366
<ALLOWANCE-DOMESTIC> 200429
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 89937
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
ON MARCH 1, 1996, UJB FINANCIAL CORP. COMPLETED ITS ACQUISITION OF THE SUMMIT
BANCORPORATION, AND THE COMPANY CHANGED ITS NAME TO SUMMIT BANCORP. THIS
ACQUISITION WAS ACCOUNTED FOR AS A POOLING OF INTERESTS AND THE SUMMARY
FINANCIAL INFORMATION HAS BEEN RESTATED.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
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<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 1147414
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<FED-FUNDS-SOLD> 111572
<TRADING-ASSETS> 18815
<INVESTMENTS-HELD-FOR-SALE> 927509
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0
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<INTEREST-DEPOSIT> 117317
<INTEREST-EXPENSE> 147572
<INTEREST-INCOME-NET> 215588
<LOAN-LOSSES> 16200
<SECURITIES-GAINS> 2226
<EXPENSE-OTHER> 162373
<INCOME-PRETAX> 89005
<INCOME-PRE-EXTRAORDINARY> 57267
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<CHANGES> 0
<NET-INCOME> 57267
<EPS-PRIMARY> 0.66
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<LOANS-TROUBLED> 510
<LOANS-PROBLEM> 71304
<ALLOWANCE-OPEN> 305330
<CHARGE-OFFS> 28126
<RECOVERIES> 3532
<ALLOWANCE-CLOSE> 296936
<ALLOWANCE-DOMESTIC> 210065
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 86871
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
ON MARCH 1, 1996, UJB FINANCIAL CORP. COMPLETED ITS ACQUISITION OF THE SUMMIT
BANCORPORATION, AND THE COMPANY CHANGED ITS NAME TO SUMMIT BANCORP. THIS
ACQUISITION WAS ACCOUNTED FOR AS A POOLING OF INTERESTS AND THE SUMMARY
FINANCIAL INFORMATION HAS BEEN RESTATED.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<CASH> 1187086
<INT-BEARING-DEPOSITS> 18822
<FED-FUNDS-SOLD> 53070
<TRADING-ASSETS> 34870
<INVESTMENTS-HELD-FOR-SALE> 1122264
<INVESTMENTS-CARRYING> 4800987
<INVESTMENTS-MARKET> 4571593
<LOANS> 13105179
<ALLOWANCE> 305330
<TOTAL-ASSETS> 20894815
<DEPOSITS> 16977109
<SHORT-TERM> 1563039
<LIABILITIES-OTHER> 276014
<LONG-TERM> 544936
0
50008
<COMMON> 102005
<OTHER-SE> 1381704
<TOTAL-LIABILITIES-AND-EQUITY> 20894815
<INTEREST-LOAN> 951029
<INTEREST-INVEST> 346552
<INTEREST-OTHER> 5219
<INTEREST-TOTAL> 1302800
<INTEREST-DEPOSIT> 368847
<INTEREST-EXPENSE> 475973
<INTEREST-INCOME-NET> 826827
<LOAN-LOSSES> 91995
<SECURITIES-GAINS> 2232
<EXPENSE-OTHER> 699665
<INCOME-PRETAX> 245233
<INCOME-PRE-EXTRAORDINARY> 156281
<EXTRAORDINARY> 0
<CHANGES> (1731)
<NET-INCOME> 154550
<EPS-PRIMARY> 1.80
<EPS-DILUTED> 1.80
<YIELD-ACTUAL> 4.53
<LOANS-NON> 197285
<LOANS-PAST> 13195
<LOANS-TROUBLED> 2920
<LOANS-PROBLEM> 34614
<ALLOWANCE-OPEN> 340938
<CHARGE-OFFS> 112909
<RECOVERIES> 22258
<ALLOWANCE-CLOSE> 305330
<ALLOWANCE-DOMESTIC> 199470
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 105860
<FN>
ALLOWANCE FOR LOAN LOSSES AT DECEMBER 31, 1994, INCLUDES WRITE DOWNS OF
$36,952,000 ON TRANSFER TO ASSETS HELD FOR ACCELERATED DISPOSITION.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
ON MARCH 1, 1996, UJB FINANCIAL CORP. COMPLETED ITS ACQUISITION OF THE SUMMIT
BANCORPORATION, AND THE COMPANY CHANGED ITS NAME TO SUMMIT BANCORP. THIS
ACQUISITION WAS ACCOUNTED FOR AS A POOLING OF INTERESTS AND THE SUMMARY
FINANCIAL INFORMATION HAS BEEN RESTATED.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
<CASH> 1337341
<INT-BEARING-DEPOSITS> 18844
<FED-FUNDS-SOLD> 10603
<TRADING-ASSETS> 20100
<INVESTMENTS-HELD-FOR-SALE> 1283733
<INVESTMENTS-CARRYING> 4842385
<INVESTMENTS-MARKET> 4712691
<LOANS> 12952455
<ALLOWANCE> 328607
<TOTAL-ASSETS> 20980797
<DEPOSITS> 16628427
<SHORT-TERM> 2089166
<LIABILITIES-OTHER> 284231
<LONG-TERM> 466706
0
50008
<COMMON> 101707
<OTHER-SE> 1360552
<TOTAL-LIABILITIES-AND-EQUITY> 20980797
<INTEREST-LOAN> 688512
<INTEREST-INVEST> 257945
<INTEREST-OTHER> 4388
<INTEREST-TOTAL> 950845
<INTEREST-DEPOSIT> 258069
<INTEREST-EXPENSE> 338808
<INTEREST-INCOME-NET> 612037
<LOAN-LOSSES> 62295
<SECURITIES-GAINS> 2026
<EXPENSE-OTHER> 539144
<INCOME-PRETAX> 169305
<INCOME-PRE-EXTRAORDINARY> 105415
<EXTRAORDINARY> 0
<CHANGES> (1731)
<NET-INCOME> 103684
<EPS-PRIMARY> 1.20
<EPS-DILUTED> 1.20
<YIELD-ACTUAL> 4.53
<LOANS-NON> 254964
<LOANS-PAST> 13332
<LOANS-TROUBLED> 2945
<LOANS-PROBLEM> 38533
<ALLOWANCE-OPEN> 340938
<CHARGE-OFFS> 88466
<RECOVERIES> 13840
<ALLOWANCE-CLOSE> 328607
<ALLOWANCE-DOMESTIC> 225056
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 103551
</TABLE>
