UNITED STATES
SECURITIES 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 March 31, 1996
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 March 31, 1996 1,085,925
<PAGE>
<TABLE>
PART I-Financial Information
This is the consolidated balance sheet for Southern Jersey Bancorp.
All dollar amounts are in thousands.
<CAPTION>
3/31/96 3/31/95 12/31/95
<S> <C> <C> <C>
ASSET
Cash and due from banks 14,172 13,834 18,981
interest bearing deposits 0 3,000 0
Investment securities held to maturity 75,242 112,453 80,566
Investment securities available for sale 41,365 18,509 33,754
Market Value
3-31-96 116,654
3-31-95 129,078
12-31-95 115,240
Loan: net of unearned income 242,418 197,895 232,113
Less: Allowance for loan losses 2,650 2,331 2,413
Net Loans 239,768 195,564 229,700
Federal funds sold 17,000 0 27,800
Bank premises and equipment - net 6,105 5,605 5,916
Other assets 9,961 7,750 7,523
Total Assets 403,613 356,715 404,240
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES 3/31/96 3/31/95 12/31/95
<S> <C> <C> <C>
Deposits-interest bearing 311,132 252,744 286,117
Non-interest bearing deposits 49,760 61,512 77,316
------ ------ ------
Total Deposits 360,892 314,256 363,433
Fed funds purchased 0 4,250 0
Other Liabilities 5,264 4,375 4,164
----- ----- -----
Total Liabilities 366,156 322,881 367,597
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 2,223 2,258 2,223
Undivided profits 36,537 32,287 35,103
------ ------ ------
40,889 36,674 39,455
Less: Treasury stock at cost
189,075 Common Shares 3-31-96
174,690 Common Shares 3-31-95
190,193 Common Shares 12-31-95 3,700 3,198 3,741
----- ----- -----
37,189 33,476 35,714
Allowance for unrealized gain/losses
on Available for Sale Securities 268 358 929
Total Shareholders' Equity 37,457 33,834 36,643
------ ------ ------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 403,613 356,715 404,240
</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>
Three Months First Qtr.
Ended Ended
Mar. 31 Mar. 31
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest on securities:
Taxable interest income 1,315 1,513 1,315 1,513
Tax-exempt interest income 437 531 437 531
Interest and fees on loans 4,910 4,222 4,910 4,222
Interest on interest bearing deposits 0 51 0 51
Federal funds sold 393 33 393 33
Lease income 225 5 225 5
- - - -
Total interest income 7,280 6,355 7,280 6,355
INTEREST EXPENSE
Interest on deposits
Savings 1,339 1,411 1,339 1,411
Certificates of deposit $100,000
and over 633 322 633 322
Fed Funds Purchased 0 30 0 30
Other time deposits 1,587 1,120 1,587 1,120
----- ----- -- ---
Total interest expense 3,559 2,883 3,559 2,883
NET INTEREST INCOME 3,721 3,472 3,721 3,472
Provision for loan losses 300 225 300 225
Net Interest Income After --- --- --- ---
Provision for Loan Losses 3,421 3,247 3,421 3,247
OTHER OPERATING INCOME
Service charges on deposit accounts 378 319 378 319
Trust Department Income 169 159 169 159
Commissions, collection
Charges and fees 118 80 118 80
Investment security gains (losses) 0 (7) 0 (7)
--- - --- -
Total Other Operating Income 665 551 665 551
OTHER OPERATING EXPENSES
Salaries and wages 1,046 1,036 1,046 1,036
Pension and other benefits 252 330 252 330
Occupancy and equipment 373 392 373 392
FDIC Assessments 24 208 24 208
Postage, stationery and supplies 67 111 67 111
Professional Fees 106 76 106 76
Other operating expenses 334 327 334 327
--- --- --- ---
Total Other Operating Expenses 2,202 2,480 2,202 2,480
Income Before Income Taxes 1,884 1,318 1,884 1,318
Applicable Income Taxes 450 375 450 375
----- ----- --- -----
NET INCOME 1,434 943 1,434 943
----- ----- ----- -----
Earnings per Common Share 1.32 0.86 1.32 0.86
</TABLE>
<PAGE>
<TABLE>
SOUTHERN JERSEY BANCORP OF DELAWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands)
<CAPTION>
Three Months Ended
Mar 31
1996 1995
---- ----
<S> <C> <C>
Cash flow from operating activities
Net Income 1,434 943
Adjustments to reconcile net income to net cash
provided by operating activities
Amortization of organization expenses 0 0
Depreciation of premises and equipment 88 94
Net Loan charge offs (63) (40)
Provision of loan losses 300 225
Premium Amortization net of discount accretion 33 (80)
Gain or (Loss) on sale of securities 0 7
Gain on other real estate 0 0
Gain on sale of bank premises and equipment (42) 0
Increase/(decrease) in other assets (2,441) (290)
Increase/(decrease) in other liabilities 1,100 1,257
Increase/(decrease) in borrowed funds 0 4,250 --- ---
Net cash provided by operating activities 409 6,366
Cash flows from investing activities
Interest bearing deposits 0 0
Purchase of investment securities (10,780) (6,112)
Proceeds from sales of investment securities 0 7,000
Proceeds from maturities of investment securities 7,706 5,853
Increase in loans (10,305) (5,377)
Bank premises and equipment (262) (385)
Proceeds from sale of bank premises and equipment 42 0
Proceeds from sale of other real estate 81 190
--- ---
Net cash used for investing activities (13,518) 1,169
Cash flows from financing activities
(Decrease)/Increase in total deposits (2,541) (22,967)
Cash dividends 0 0
Purchase of Treasury stock (3) 0
Sale of Treasury stock 44 34
--- ---
Net Cash provided by financing activities (2,500) (22,933)
Net increase/(decrease) in cash and cash equivalents (15,609) (15,398)
Cash and equivalents at beginning of year 46,781 29,232
Cash and Cash equivalent at end of quarter 31,172 13,834
Supplementary Schedule of NonCash Investing
and Financing Activities
Loans, Net of Chargeoffs transferred to Other Real
Estate Owned: 15 164
</TABLE>
<PAGE>
SOUTHERN JERSEY BANCORP OF DELAWARE, INC.
NOTES TO FINANCIAL STATEMENTS
Nine Months Ended March 31, 1996
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, 1995, 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 March 31, 1996,
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: May 10, 1996
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF
RESULTS IN OPERATIONS
Nine Months Ended March 31, 1996
The net operating income of $1,434,000 for the first three months
of 1996 is 52.07% above the same period the prior year. Net
income after taxes for 1996 is projected to be approximately
$5,200,000 or approximately 7.17% more than 1995.
This is primarily due to the fact that during the first quarter of
1996 a decrease in FDIC expenses and an increase in Federal Funds Sold
Income resulted in net income increase in the first quarter of 1996
compared to 1995.
An unrealized gain of approximately $268,000 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 in
the last quarter except for an increase of approximately $1,117,000 in non
accrual loanssecured by real estate and approximately $1,630,000 increase in
nonaccrual commercial and industrial loans. These loans are adequately
secured by real estate and other collateral and minimal loss is expected at
this time.
Total charge-offs for the first three months of 1996 totalled $95,000
while total recoveries during the period were $32,000.
<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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 14,172
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 17,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 41,365
<INVESTMENTS-CARRYING> 75,242
<INVESTMENTS-MARKET> 116,607
<LOANS> 242,418
<ALLOWANCE> 2,650
<TOTAL-ASSETS> 403,613
<DEPOSITS> 360,892
<SHORT-TERM> 0
<LIABILITIES-OTHER> 5,264
<LONG-TERM> 0
<COMMON> 2,129
0
0
<OTHER-SE> 35,328
<TOTAL-LIABILITIES-AND-EQUITY> 403,613
<INTEREST-LOAN> 5,135
<INTEREST-INVEST> 1,752
<INTEREST-OTHER> 393
<INTEREST-TOTAL> 7,280
<INTEREST-DEPOSIT> 3,559
<INTEREST-EXPENSE> 3,559
<INTEREST-INCOME-NET> 3,721
<LOAN-LOSSES> 300
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,202
<INCOME-PRETAX> 1,884
<INCOME-PRE-EXTRAORDINARY> 1,884
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,434
<EPS-PRIMARY> 1.32
<EPS-DILUTED> 1.32
<YIELD-ACTUAL> 4.16
<LOANS-NON> 5,884
<LOANS-PAST> 1,235
<LOANS-TROUBLED> 1,156
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,413
<CHARGE-OFFS> 95
<RECOVERIES> 32
<ALLOWANCE-CLOSE> 2,650
<ALLOWANCE-DOMESTIC> 2,650
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
