UNITED STATES
SECURITITES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
Commission File Number 0-12635
SOUTH JERSEY BANCORP OF DELAWARE, INC.
(Exact name of Registrant as Specified in Charter)
Delaware 22-2983654
(State of Other Jurisdiction (I.R.S. Employer Identification
of Incorporation or Organization) Number>
53 South Laurel Street
Bridgeton, NJ 08302
(Address of Principal Executive Offices)
(609) 453-3134
(Registrant's Area Code and Telephone Number)
Registrant has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the period it has been subject
to such filing requirements.
[x] YES [ ] NO
Common Stock Outstanding as of June 30, 1995 1,101,223
<PAGE>
<TABLE>
PART I-Financial Information
This is the consolidated balance sheet for Southern Jersey Bancorp.
All dollar amounts are in thousands.
<CAPTION>
6/30/95 6/30/94 12/31/94
<S> <C> <C> <C>
ASSET
Cash and due from banks 15,331 17,658 17,982
interest bearing deposits 3,000 2,000 3,000
Investment securities held to maturity 104,512 124,051 117,728
Investment securities available for sale 18,366 19,521 20,416
Market Value
6-31-95 122,777
6-31-94 141,980
12-31-94 134,170
Loan net of unearned income 210,431 171,639 192,518
Less: Allowance for loan losses 2,451 2,309 2,146
Net Loans 207,980 169,330 190,372
Federal funds sold 20,400 14,600 11,250
Bank premises and equipment - net 5,901 5,043 5,308
Other assets 7,745 6,718 6,840
Total Assets 383,235 358,921 372,896
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES 6/30/95 6/30/94 12/31/94
<S> <C> <C> <C>
Deposits-interest bearing 283,060 249,043 249,040
Non-interest bearing deposits 61,494 76,381 88,183
------ ------ ------
Total Deposits 344,554 325,424 337,223
Other Liabilities 3,964 2,487 3,118
----- ----- -----
Total Liabilities 348,518 327,911 340,341
Shareholder's Equity
Common stock par value $1.67 per share
Authorized 5,000,000 shares;
Issued 1,275,000 shares 2,129 2,129 2,129
Surplus 2,258 2,260 2,258
Undivided profits 32,890 29,504 31,344
------ ------ ------
37,277 33,893 35,731
Less: Treasury stock at cost
173,777 Common Shares 6-30-95
177,567 Common Shares 6-30-94
175,767 Common Shares 12-31-94 3,198 3,306 3,232
----- ----- -----
34,079 30,587 32,499
Allowance for unrealized gain/losses
on Available for Sale Securities 638 423 56
Total Shareholders' Equity 34,717 31,010 32,555
------ ------ ------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 383,235 358,921 372,896
</TABLE>
<PAGE>
<TABLE>
This is the consolidated statement of earnings sheet for
Southern Jersey Bancorp. All dollar amounts are in thousands except for per
share data
<CAPTION>
Six Months Second Qtr.
Ended End
June 30 June 30
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest on securities:
Taxable interest income 2,904 3,296 1,391 1,537
Tax-exempt interest income 1,045 1,077 514 630
Interest and fees on loans 8,837 7,103 4,615 3,676
Interest on interest bearing deposits 102 17 51 11
Federal funds sold 174 451 141 240
Lease income 6 6 1 5
- - - -
Total interest income 13,068 11,950 6,713 6,099
INTEREST EXPENSE
Interest on deposits
Savings 2,728 2,471 1,317 1,171
Certificates of deposit $100,000
and over 861 793 539 455
Fed Funds Purchased 30 0 0 0
Other time deposits 2,470 1,946 1,350 983
----- ----- -- ---
Total interest expense 6,089 5,210 3,206 2,609
NET INTEREST INCOME 6,979 6,740 3,507 3,490
Provision for loan losses 450 390 225 195
Net Interest Income After --- --- --- ---
Provision for Loan Losses 6,529 6,350 3,282 3,295
OTHER OPERATING INCOME
Service charges on deposit accounts 667 598 348 311
Trust Department Income 325 332 166 169
Commissions, collection
Charges and fees 188 141 108 67
Investment security gains (losses) 226 0 233 0
--- - --- -
Total Other Operating Income 1,406 1,071 855 547
OTHER OPERATING EXPENSES
Salaries and wages 2,212 2,024 1,176 1,150
Pension and other benefits 688 494 358 276
Occupancy and equipment 775 752 383 383
FDIC Assessments 416 401 208 201
Postage, stationery and supplies 193 167 82 84
Professional Fees 140 111 64 49
Other operating expenses 663 667 336 282
--- --- --- ---
Total Other Operating Expenses 5,087 4,616 2,607 2,425
Income Before Income Taxes 2,848 2,805 1,530 1,417
Applicable Income Taxes 750 730 375 360
----- ----- --- -----
NET INCOME 2,098 2,075 1,155 1,057
----- ----- ----- -----
Earnings per Common Share 1.91 1.89 1.05 .96
</TABLE>
<PAGE>
<TABLE>
SOUTHERN JERSEY BANCORP OF DELAWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands)
<CAPTION>
Six Months Ended
June 30
1995 1994
---- ----
<S> <C> <C>
Cash flow from operating activities
Net Income 2,098 2,075
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization of organization expenses 0 0
Depreciation of premises and equipment 189 183
Net Loan charge offs (145) (216)
Provision of loan losses 450 390
Premium Amortization net of discount accretion 104 35
Gain or (Loss) on sale of securities 226 0
Gain on other real estate 0 0
Gain on sale of bank premises and equipment 0 0
Increase in other assets (916) (91)
Increase/(decrease) in other liabilities 846 122
Increase/(decrease) in borrowed funds 0 0
--- ---
Net cash provided by operating activities 2,852 2,498
Cash flows from investing activities
Interest bearing deposits 0 0
Purchase of investment securities (11,451) (11,594)
Proceeds from sales of investment securities 12,437 0
Proceeds from maturities of investment securities 14,342 18,417
Increase in loans (17,913) (20,297)
Bank premises and equipment (771) (214)
Proceeds from sale of bank premises and equipment 0 0
Proceeds from sale of other real estate 190 646
--- ---
Net cash used for investing activities (3,166) (13,042)
Cash flows from financing activities
(Decrease)/Increase in total deposits 7,331 (1,837)
Cash dividends (552) (527)
Purchase of Treasury stock (80) (111)
Sale of Treasury stock 114 124
--- ---
Net Cash provided by financing activities 6,813 (2,351)
Net increase/(decrease) in cash and cash equivalents 6,499 (12,895)
Cash and equivalents at beginning of year 29,232 45,153
Cash and Cash equivalent at end of year 35,731 32,258
Supplementary Schedule of NonCash Investing
and Financing Activities 86 316
Loans, Net of Chargeoffs transferred to Other Real Estate Owned:
</TABLE>
<PAGE>
SOUTHERN JERSEY BANCORP OF DELAWARE, INC.
NOTES TO FINANCIAL STATEMENTS
Six Months Ended June 30, 1995
1) Principles of Consolidation: The consolidated financial statements
reflect the account of Southern Jersey Bancorp of Delaware, Inc. and
its subsidiary, The Farmers and Merchants National Bank of Bridgeton,
after the elimination of all intercompany balances and transactions.
2) There have been no significant changes in the account policies of
the registrant since December 31, 1994, the date of the most recent
annual report to security holders, nor have there occurred events
which have had a material impact on the disclosures herein.
3) The interim financial statements contained herein reflect all
adjustments which are, in the opinion of management, necessary to a
fair statement of the results for the interim periods presented.
4) In accordance with Rule 10-01(b)(8), the unaudited interim financial
statements filed under cover of Form 10-Q for June 30, 1995, reflect
adjustments that are of a normal recurring nature which are, in the
opinion of Management, necessary to a fair statement of the results
for the interim periods presented.
<PAGE>
SOUTHERN JERSEY BANCORP OF DELAWARE, INC.
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.
SOUTHERN JERSEY BANCORP OF DELAWARE, INC.
(Registrant)
Paul Ritter
Treasurer
Clarence D. McCormick
Chairman/CEO
DATE: September 25, 1995
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF
RESULTS IN OPERATIONS
Six Months Ended June 30, 1995
The net operating income of $2,098,000 for the first six months
of 1995 is 1.11% above the same period in the prior year. Net
income after taxes for 1995 is projected to be approximately
$4,500,000 or approximately .51% more than 1994.
This is primarily due to the fact that during the half of 1995
an increase in operating expenses, primarily caused by additional
costs to administer the expanded branch facilities, resulted in
company realizing only a slight increase in net income in the first
half of 1995 as compared to 1994.
An unrealized gain of approximately $638,000 net of tax effects was
recognized on the value of securities available for sale pursuant to
FASB 115.
There has been no other significant changes in charge-offs, recoveries,
provision for loan and lease losses, non-accruing or non-performing loans
except for an increase of approximately $1,477,00 in commercial and
industrial loans past due 90 days or more and still accruing interest.
Additionally, there were total charge-offs of $193,000 and recoveries
of $48,000 through the first six months of 1995.
A gain of approximately $226,000 was realized on the sale of investment
securities classifed Available For Sale for the first six months of 1995.
<PAGE>
PART II - OTHER INFORMATION
EXHIBITS AND REPORTS ON FORM 8-K
A. Exhibits
Exhibit 27. Financial Data Schedule
B. Reports on Form 8-K
No reports have been filed on form 8-K during this quarter.
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 15,331
<INT-BEARING-DEPOSITS> 3,000
<FED-FUNDS-SOLD> 20,400
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 18,366
<INVESTMENTS-CARRYING> 104,512
<INVESTMENTS-MARKET> 122,777
<LOANS> 210,431
<ALLOWANCE> 2,451
<TOTAL-ASSETS> 383,235
<DEPOSITS> 344,554
<SHORT-TERM> 0
<LIABILITIES-OTHER> 3,964
<LONG-TERM> 0
<COMMON> 2,129
0
0
<OTHER-SE> 32,588
<TOTAL-LIABILITIES-AND-EQUITY> 383,235
<INTEREST-LOAN> 8,843
<INTEREST-INVEST> 3,949
<INTEREST-OTHER> 276
<INTEREST-TOTAL> 13,068
<INTEREST-DEPOSIT> 6,089
<INTEREST-EXPENSE> 6,089
<INTEREST-INCOME-NET> 6,979
<LOAN-LOSSES> 450
<SECURITIES-GAINS> 226
<EXPENSE-OTHER> 5,087
<INCOME-PRETAX> 2,848
<INCOME-PRE-EXTRAORDINARY> 2,848
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,098
<EPS-PRIMARY> 1.91
<EPS-DILUTED> 1.91
<YIELD-ACTUAL> 3.94
<LOANS-NON> 2,388
<LOANS-PAST> 3,603
<LOANS-TROUBLED> 1,158
<LOANS-PROBLEM> 2,579
<ALLOWANCE-OPEN> 2,146
<CHARGE-OFFS> 193
<RECOVERIES> 48
<ALLOWANCE-CLOSE> 2,451
<ALLOWANCE-DOMESTIC> 2,451
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
