UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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, 1997
Commission File Number 0-12635
SOUTHERN 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, New Jersey 08302
(Address of Principal Executive Officers)
(609) 453-3000
(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, 1997 1,086,236
<PAGE>
<TABLE>
PART I - Financial Information
This is the Consolidated Balance Sheet for Southern Jersey Bancorp of
Delaware. All dollar amounts are in thousands.
<CAPTION>
3/31/97 3/31/96 12/31/96
<S> <C> <C> <C>
ASSET
Cash and due from banks 14,897 14,172 18,347
Interest Bearing Deposits 0 0 0
Investment Securities Held to Maturity
62,315 75,242 61,765
Investment Securities Available for Sale
37,949 41,365 34,904
Market Value:
3/31/97 101,663
3/31/96 116,654
12/31/96 97,736
Loan: Net of Unearned Income 300,920 242,418 290,885
Less: Allowance for loan losses 3,440 2,650 3,190
------ ------- -----
Net Loans 297,480 239,768 287,695
------- ------- -------
Federal Funds Sold 18,700 17,000 12,900
Bank Premises and Equipment - Net 6,686 6,105 6,214
Other Assets 10,572 9,961 8,499
----- ------ -----
Total Assets 448,599 403,613 430,324
====== ======= =======
LIABILITIES
3/31/97 3/31/96 12/31/96
<S> <C> <C> <C>
Deposits - Interest Bearing 347,724 311,132 330,041
Non-Interest Bearing Deposits 53,628 49,760 55,343
----- ------- ------
Total Deposits 401,352 360,892 385,384
Federal Funds Purchased 0 0 0
Other Liabilities 6,568 5,264 5,189
------ ----- -----
Total Liabilities 407,920 366,156 390,573
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 2,260 2,223 2,260
Undivided Profits 40,489 36,537 39,236
------ ------ ------
44,878 40,889 43,625
Less: Treasury Stock at cost
188,764 Common Shares 3-31-97
189,075 Common Shares 3-31-96
190,196 Common Shares 12-31-96 3,845 3,700 3,896
----- ----- -----
41,033 37,189 39,729
Allowance for unrealized gain/losses
on Available for Sale Securities (354) 268 22
------ ------ -----
Total Shareholder's Equity 40,679 37,457 39,751
------ ------ ------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
448,599 403,613 430,324
======= ======= =======
</TABLE>
<PAGE>
<TABLE>
This is the Consolidated Statement of Earnings sheet for Southern Jersey
Bancorp of Delaware, Inc. All dollar amounts are in thousands except for
per share data.
<CAPTION>
Three Months First Qtr.
Ended Ended
Mar. 31 Mar. 31
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest on Securities:
Taxable Interest Income 1,088 1,315 1,088 1,315
Tax-exempt Interest Income 362 437 362 437
Interest and Fees on Loans 6,214 4,910 6,214 4,910
Interest on Int. Bearing Deposits 0 0 0 0
Federal Funds Sold 280 393 280 393
Lease Income 0 225 0 225
---- ----- ---- ----
Total Interest Income 7,944 7,280 7,944 7,280
INTEREST EXPENSE
Interest on Deposit Savings 1,187 1,339 1,187 1,339
Certificates of Deposit $100,000 and over
871 633 871 633
Federal Funds Purchased 0 0 0 0
Other Time Deposits 1,837 1,587 1,837 1,587
----- ----- ----- -----
Total Interest Expense 3,895 3,559 3,895 3,559
----- ----- ----- -----
NET INTEREST INCOME 4,049 3,721 4,049 3,721
Provision for Loan Losses 345 300 345 300
----- ----- ----- -----
Net Interest Income After
Provision for Loan Losses 3,704 3,421 3,704 3,421
OTHER OPERATING INCOME
Service Charges on Deposit Accts 408 378 408 378
Trust Department Income 181 169 181 169
Commissions, collections, charges
and fees 94 118 94 118
Investment Security gains/(losses) 0 0 0 0
Other Non-Interest Income 0 0 0 0
--- --- --- ---
Total Other Operating Income 683 665 683 665
OTHER OPERATING EXPENSES
Salaries and Wages 1,181 1,046 1,181 1,046
Pension and Benefits 301 252 301 252
Occupancy and Equipment 383 373 383 373
FDIC Assessment 33 24 33 24
Postage, stationary and supplies 139 99 139 99
Professional Fees 112 106 112 106
Other operating Expenses 385 302 385 302
---- ---- ---- ----
Total Other Operating Expenses 2,534 2,202 2,534 2,202
----- ----- ----- -----
Income Before Income Taxes 1,853 1,884 1,853 1,884
Applicable Income Taxes 600 450 600 450
----- ----- ----- -----
NET INCOME 1,253 1,434 1,253 1,434
===== ===== ===== =====
Earnings Per Common Share 1.15 1.32 1.15 1.32
</TABLE>
<PAGE>
<TABLE>
SOUTHERN JERSEY BANCORP OF DELAWARE, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in Thousands)
<CAPTION>
Three Months Ended
March 31
1997 1996
---- ----
<S> <C> <C>
Cash Flows from Operating Activities
Net Income 1,253 1,434
Adjustments to reconcile net income to
net cash provided by operating activities
Amortization of Organization Expenses 0 0
Depreciation of Premises and Equipment 98 88
Net Loan Charge-Offs (95) (63)
Provision for Loan Losses 345 300
Premium Amortization net of discount accretion 53 33
Gain or (Loss) on Sale of Securities 0 0
Gain on Other Real Estate 2 0
Gain on Sale of Bank Premises & Equipment 0 (42)
(Increase)/decrease in Other Assets (2,078) (2,441)
Increase/(decrease) in Other Liabilities 1,385 1,100
Increase/(decrease) in Borrowed Funds 0 0
----- -----
Net Cash Provided by Operating Activities 963 409
Cash Flows from Investing Activities
Interest Bearing deposits 0 0
Purchase of Investment Securities (7,368) (10,780)
Proceeds from Sale of Investment Securities 0 0
Proceeds from Maturities of Invest. Securities 3,233 7,706
Increase in Loans (10,035) (10,305)
Bank Premises and Equipment (565) (262)
Proceeds from Sale of Bank Premises & Equipment 0 42
Proceeds from Sale of Other Real Estate 103 81
---- -----
Net Cash Used for Investing Activities (14,632) (13,518)
Cash Flows from Financing Activities
(Decrease)/Increase in Total Deposits 15,968 (2,541)
Cash Dividends 0 0
Purchase of Treasury Stock (36) (3)
Sale of Treasury Stock 87 44
----- ----
Net Cash Provided by Financing Activities 16,019 (2,500)
Net Increase/(Decrease) in Cash and Cash Equivalents
2,350 (15,609)
Cash and Equivalents at the Beginning of the Year
31,247 46,781
------ ------
Cash and Equivalents at End of the Quarter 33,597 31,172
====== ======
Supplementary Schedule of Non-Cash Investing and
Financing Activities
Loans, Net of Charge-Offs transferred to
Other Real Estate Owned: 0 15
</TABLE>
<PAGE>
SOUTHERN JERSEY BANCORP OF DELAWARE, INC.
NOTES TO FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 1997
1. Principals 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 change in the account policies of
the Registrant since December 31, 1996, the date the most recent
annual report to security holders, nor have there occurred
events which have 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 period 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, 1997, 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.
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 J. Ritter, III
Treasurer
Clarence D. McCormick
Chairman/CEO
DATE: May 14, 1997
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF
RESULTS IN OPERATIONS
Three Months Ended March 31, 1997
The net operating income of $1,253,000 for the first three months of
1997 is 12.62% below the same period for the prior year. Net income after
taxes for 1997 is projected to be approximately $5,500,000 or approximately
3.2% more than 1996.
This is primarily due to the fact that during the first quarter of 1997
an increase in the provision of income taxes resulted in net income decrease
in the first quarter of 1997 compared to 1996.
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 $4,629,000 in
commercial and industrial loans 30 through 89 days past due and an increase of
approximately $559,000 in loans to individuals past due 90 days or more.
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 1997 totaled $106,000
while total recoveries during the period were $11,000.
<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
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<CASH> 14,897
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 18,700
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 37,949
<INVESTMENTS-CARRYING> 62,315
<INVESTMENTS-MARKET> 63,714
<LOANS> 300,920
<ALLOWANCE> 3,440
<TOTAL-ASSETS> 448,599
<DEPOSITS> 401,352
<SHORT-TERM> 0
<LIABILITIES-OTHER> 6,568
<LONG-TERM> 0
<COMMON> 2,129
0
0
<OTHER-SE> 38,550
<TOTAL-LIABILITIES-AND-EQUITY> 448,599
<INTEREST-LOAN> 6,214
<INTEREST-INVEST> 1,450
<INTEREST-OTHER> 280
<INTEREST-TOTAL> 7,944
<INTEREST-DEPOSIT> 3,895
<INTEREST-EXPENSE> 3,895
<INTEREST-INCOME-NET> 4,049
<LOAN-LOSSES> 345
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,534
<INCOME-PRETAX> 1,853
<INCOME-PRE-EXTRAORDINARY> 1,853
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,253
<EPS-PRIMARY> 1.15
<EPS-DILUTED> 1.15
<YIELD-ACTUAL> 4.09
<LOANS-NON> 3,081
<LOANS-PAST> 2,223
<LOANS-TROUBLED> 974
<LOANS-PROBLEM> 6,528
<ALLOWANCE-OPEN> 3,190
<CHARGE-OFFS> 106
<RECOVERIES> 11
<ALLOWANCE-CLOSE> 3,440
<ALLOWANCE-DOMESTIC> 3,440
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
