<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 1996
Commission file number 2-91511
SMITHTOWN BANCORP, INC.
(Exact name of registrant as specified in its charter)
NEW YORK 11-2695037
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
ONE EAST MAIN STREET, SMITHTOWN, NEW YORK 11787-2801
(Address of principal executive offices)
516-360-9300
(Registrant's telephone number, including area code)
NOT APPLICABLE
(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.
Yes X No
---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:
433,268 Shares of Common stock ($5.00 Par Value) Outstanding as of
September 30, 1996.
<PAGE> 2
SMITHTOWN BANCORP, INC.
INDEX
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - September 30, 1996 and December
31, 1995
Consolidated Statements of Income - Three months ended September
30, 1996 and 1995, and nine months ended September 30, 1996 and
1995
Consolidated Statements of Changes in Stockholders' Equity -
Nine months ended September 30, 1996 and 1995
Consolidated Statements of Cash Flows - Three months ended
September 30, 1996 and 1995, and nine months ended September 30,
1996 and 1995
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Item 3. Notes to Consolidated Financial Statements
PART II - OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Change in Securities - None
Item 3. Defaults under Senior Securities - None
Item 4. Submission of Matters to Vote of Security Holders - None
Item 5. Other Information - None
Item 6. (a) Exhibits - None
.
<PAGE> 3
SMITHTOWN BANCORP
CONSOLIDATED BALANCE SHEETS
(unaudited)
<TABLE>
<CAPTION>
AS OF
SEPT. 30, 1996 DEC. 31, 1995
--------------- -------------
<S> <C> <C>
ASSETS
Cash and Due from Banks $ 9,745,527 $ 7,003,234
Investment Securities:
Investment Securities Held to Maturity
Obligations of U.S. Government 2,009,739 2,013,739
Mortgage-Backed Securities 9,184,815 10,226,753
Obligations of State and Political Subdivisions 5,000,167 4,647,865
------------ ------------
Total 16,194,721 16,888,357
------------ ------------
Investment Securities Available for Sale
Obligations of U.S. Government 0 3,008,900
Obligations of U.S. Government Agencies 10,903,100 3,015,900
Mortgage-Backed Securities 29,622,161 13,155,534
Other Securities 599,800 599,000
------------ ------------
Total 41,125,061 19,779,334
------------ ------------
Total Investment Securities 57,319,782 36,667,691
(Market value $57,035,617 at 9/30/96 and ------------ ------------
$36,755,073 at 12/31/95)
Federal Funds Sold 4,100,000 6,750,000
Loans
Real Estate 65,905,055 62,926,321
Commercial and Industrial 20,566,215 19,074,380
Loans to Individuals for Household, Family and
Other Personal Expenditures 12,541,843 15,993,856
Other 136,489 74,704
------------ ------------
Total 99,149,602 98,069,261
Less: Unearned Discount 548,491 655,323
Reserve for Possible Loan Losses 1,679,767 1,429,894
------------ ------------
Loans, Net 96,921,344 95,984,044
------------ ------------
Bank Premises and Equipment 2,707,875 3,173,036
Other Assets
Other Real Estate Owned 3,896,544 5,046,544
Other 3,067,823 2,903,725
------------ ------------
TOTAL ASSETS $177,758,895 $157,528,274
============ ============
LIABILITIES
Deposits:
Demand $ 40,336,995 $ 35,944,658
Money Market 27,703,048 23,376,214
NOW 13,738,582 13,341,511
Savings 46,804,266 46,314,234
Certificates of Deposit $100,000 and over 6,732,746 4,986,024
Other Time Deposits 22,316,823 19,618,856
------------ ------------
Total Deposits 157,632,460 143,581,497
Dividend Payable 138,646 121,315
Securities Sold Under Agreements to Repurchase 2,800,000 0
Demand Notes Issued to the U.S. Treasury 2,800,000 0
Other Liabilities 1,137,056 988,389
------------ ------------
Total Liabilities 164,508,162 144,691,201
------------ ------------
</TABLE>
<PAGE> 4
<TABLE>
<CAPTION>
AS OF
SEPT. 30, 1996 DEC. 31, 1995
-------------- -------------
<S> <C> <C>
STOCKHOLDERS' EQUITY
Common Stock - $5.00 Par Value, 1,500,000 Shares 2,239,775 2,239,775
Authorized; 447,955 Shares Issued
Capital Surplus 1,993,574 1,993,574
Unrealized Loss on Investment Securities
Available for Sale (208,703) (28,157)
Retained Earnings 9,672,726 9,078,520
------------ -------------
Total 13,697,372 13,283,712
Less: Treasury Stock 446,639 446,639
------------- -------------
Total 13,250,733 12,837,073
------------- -------------
TOTAL LIABILITIES AND CAPITAL $ 177,758,895 $ 157,528,274
============= =============
</TABLE>
<PAGE> 5
SMITHTOWN BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
<TABLE>
<CAPTION>
FOR THREE MONTHS ENDED
SEPT. 30, 1996 SEPT. 30, 1995
---------------- ----------------
<S> <C> <C>
Interest Income
Interest and Fees on Loans $2,367,435 $2,112,334
Interest and Dividends on:
Obligations of U.S. Government 30,270 98,510
Obligations of U.S. Government Agencies 191,176 44,631
Mortgage-Backed Securities 496,620 471,969
Obligations of State & Political Subdivisions 76,850 75,905
Other Securities 1,908 2,339
Interest on Federal Funds Sold 110,551 51,923
Interest on Balances Due From Depository Institutions 0 2
----------- ----------
Total Interest Income 3,274,810 2,857,613
----------- ----------
INTEREST EXPENSE
Money Market Accounts 205,324 175,357
Savings 326,198 346,305
Certificates of Deposit $100,000 and Over 30,233 48,443
Other Time Deposits 329,335 266,112
Interest on Federal Funds Purchased and Securities
Sold Under agreements to Repurchase 43,201 0
Interest on Demand Notes Issued to the U.S. Treasury 12,057 1,993
---------- ----------
Total Interest Expense 946,348 838,210
---------- ----------
Net Interest Income 2,328,462 2,019,403
Provision for Possible Loan Losses 150,000 20,000
---------- ----------
Net Interest Income After Provision for Possible
Loan Losses 2,178,462 1,999,403
---------- ----------
OTHER NON - INTEREST INCOME
Trust Department Income 92,431 106,012
Service Charges on Deposit Accounts 322,117 313,466
Other Income 101,693 161,654
---------- ----------
Total Other Non - Interest Income 516,241 581,132
---------- ----------
OTHER OPERATING EXPENSES
Salaries 839,420 871,219
Pension and Other Employee Benefits 119,045 148,456
Net Occupancy Expense of Bank Premises 241,122 245,593
Furniture and Equipment Expense 158,085 155,688
Miscellaneous Operating Expense 503,627 409,299
---------- ----------
Total Other Operating Expense 1,861,299 1,830,255
---------- ----------
Income Before Income Taxes 833,404 750,280
Provision for Income Taxes 313,476 285,745
---------- ----------
NET INCOME $ 519,928 $ 464,535
========== ==========
Earnings Per Share
Net Income $ 1.20 $ 1.07
Cash Dividends Paid 0.32 0.28
Weighted Average Shares Outstanding 433,268 433,268
</TABLE>
<PAGE> 6
SMITHTOWN BANCORP
CONSOLIDATED INCOME STATEMENTS
(unaudited)
<TABLE>
<CAPTION>
FOR NINE MONTHS ENDED
SEPT. 30, 1996 SEPT. 30, 1995
--------------- ----------------
<S> <C> <C>
Interest Income
Interest and Fees on Loans $7,043,785 $6,060,659
Interest and Dividends on:
Obligations of U.S. Government 115,977 360,525
Obligations of U.S. Government Agencies 365,666 134,135
Mortgage-Backed Securities 1,221,261 1,470,997
Obligations of State & Political Subdivisions 218,209 246,219
Other Securities 20,509 6,155
Interest on Federal Funds Sold 372,751 148,400
Interest on Balances Due From Depository Institutions 332 2
---------- ----------
Total Interest Income 9,358,490 8,427,092
---------- ----------
INTEREST EXPENSE
Money Market Accounts 620,758 532,748
Savings 997,911 1,033,731
Certificates of Deposit $100,000 and Over 151,823 133,298
Other Time Deposits 896,072 668,133
Interest on Federal Funds Purchased and Securities
Sold Under Agreements to Repurchase 57,576 106,510
Interest on Demand Notes Issued to the U.S. Treasury 17,436 0
Interest on Other Borrowed Funds 0 1,993
---------- ----------
Total Interest Expense 2,741,576 2,476,413
---------- ----------
Net Interest Income 6,616,914 5,950,679
Provision for Possible Loan Losses 370,000 80,000
---------- ----------
Net Interest Income After Provision for Possible
Loan Losses 6,246,914 5,870,679
---------- ----------
OTHER NON - INTEREST INCOME
Trust Department Income 288,241 278,490
Service Charges on Deposit Accounts 965,128 961,983
Other Income 385,794 355,277
Net Securities Transactions 0 1,826
---------- ----------
Total Other Non - Interest Income 1,639,163 1,597,576
---------- ----------
OTHER OPERATING EXPENSES
Salaries 2,635,665 2,589,424
Pension and Other Employee Benefits 559,269 573,249
Net Occupancy Expense of Bank Premises 825,675 680,158
Furniture and Equipment Expense 486,521 456,129
Miscellaneous Operating Expense 1,800,360 1,345,271
---------- ----------
Total Other Operating Expense 6,307,490 5,644,231
---------- ----------
Income Before Income Taxes 1,578,587 1,824,024
Provision for Income Taxes 568,444 669,445
---------- ----------
NET INCOME $1,010,143 $1,154,579
========== ==========
Earnings Per Share
Income $ 2.33 $ 2.67
Cash Dividends Paid 0.92 0.84
Weighted Average Shares Outstanding 433,268 432,816
</TABLE>
<PAGE> 7
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(unaudited) NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
NET UNREALIZED
COMMON STOCK COST OF GAIN (LOSS) ON
COMMON INVESTMENT TOTAL
SHARES CAPITAL RETAINED STOCK IN SECURITIES STOCKHOLDERS'
OUTSTANDING AMOUNT SURPLUS EARNINGS TREASURY AVAILABLE FOR SALE EQUITY
----------- ------ ------- -------- -------- ------------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1995 427,666 $2,239,775 $1,993,118 $ 8,092,029 $(584,588) $(134,616) $11,605,718
Net Income 1,154,579 1,154,579
Cash Dividend Declared (363,575) (363,575)
Allowance for Unrealized
Gain 114,615 114,615
Sale of Treasury Stock 5,602 456 137,949 138,405
-------- ---------- ---------- ----------- --------- --------- -----------
BALANCE AT SEPT. 30, 1995 433,268 $2,239,775 $1,993,574 $ 8,883,033 $(446,639) $ (20,001) $12,649,742
======== ========== ========== =========== ========= ========== ===========
Balance at January 1, 1996 433,268 $2,239,775 $1,993,574 $ 9,078,520 $(446,639) $ (28,157) $12,837,073
Net Income 1,010,143 1,010,143
Cash Dividend Declared (415,937) (415,937)
Allowance for Unrealized
Loss (180,546) (180,546)
-------- ---------- ---------- ----------- ---------- ---------- -----------
BALANCE AT SEPT. 30, 1996 433,268 $2,239,775 $1,993,574 $ 9,672,726 $(446,639) $(208,703) $13,250,733
======== ========== ========== =========== ========== ========== ===========
</TABLE>
<PAGE> 8
SMITHTOWN BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
FOR THREE MONTHS ENDED
SEPT. 30, 1996 SEPT. 30, 1995
--------------- ---------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 519,928 $ 464,535
Adjustments to reconcile net income to net cash
provided by operating activities:
Valuation Reserve for Other Real Estate Owned 0 40,000
Depreciation on Premises and Equipment 108,942 113,706
Provision for Possible Loan Losses 150,000 20,000
Amortization of Transition Obligation 11,925 11,925
Increase (Decrease) in Interest Payable (2,797) 10,701
Increase in Miscellaneous Payables and
Accrued Expenses 132,920 211,313
Decrease in Fees and Commissions
Receivable (17,600) (400)
(Increase) Decrease in Interest Receivable (26,362) 58,496
Decrease in Prepaid Expenses 219,201 45,324
(Increase) Decrease in Miscellaneous Receivables (308) 8,722
Decrease in Income Taxes Receivable 75,576 0
(Increase) Decrease in Deferred Taxes (70,100) 86,434
Decrease in Accumulated Post Retirement Benefit
Obligation (16,170) (10,380)
Amortization of Investment Security Premiums and
Accretion of Discounts 33,461 (1,732)
----------- -----------
CASH PROVIDED BY OPERATING ACTIVITIES $ 598,688 $ 594,109
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Maturities on Investment Securities
Held to Maturity 1,941,826 1,438,585
Proceeds from Maturities of Investment Securities
Available for Sale 537,532 1,990,966
Purchases of Investment Securities Available for
Sale (8,142,856) (1,358,956)
Net Decrease in Federal Funds Sold 2,750,000 6,450,000
Net (Increase) Decrease in Loans 3,170,968 (5,326,176)
Purchases of Premises and Equipment (50,697) (252,720)
Proceeds from Sale of Other Real Estate Owned 0 307,469
----------- -----------
CASH PROVIDED BY INVESTING ACTIVITIES $ 206,773 $ 3,249,168
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase (Decrease) in Demand Deposits, NOW
Accounts and Savings Accounts 1,064,930 (5,324,644)
Net Increase in Time Accounts (963,862) (2,119,491)
Cash Dividends Paid (138,646) (121,149)
Net Increase in Borrowed Funds 754,287 3,000,000
Proceeds from Sale of Treasury Stock 0 14,999
----------- -----------
CASH PROVIDED (USED) BY FINANCING ACTIVITIES $ 716,709 $(4,550,285)
----------- -----------
Net Increase (Decrease) in Cash and Due from Banks 2,042,098 (242,473)
</TABLE>
<PAGE> 9
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
SEPT. 30, 1996 SEPT. 30, 1995
-------------- --------------
<S> <C> <C>
Cash and Due from Banks, Beginning 7,703,429 6,905,510
----------- ------------
Cash and Due from Banks, Ending $ 9,745,527 $ 6,663,037
=========== ===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash Paid During the Period for:
Interest $ 55,257 $ 1,994
Income Taxes 308,000 135,000
</TABLE>
<PAGE> 10
SMITHTOWN BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
FOR NINE MONTHS ENDED
SEPT. 30, 1996 SEPT. 30, 1995
-------------- --------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 1,010,143 $ 1,154,579
Adjustments to reconcile net income to net cash
provided by operating activities:
Valuation Reserve for Other Real Estate Owned 80,000 40,000
Depreciation on Premises and Equipment 344,123 330,859
Provision for Possible Loan Losses 370,000 80,000
Net Gain on Sales of Investment Securities 0 (1,826)
Amortization of Transition Obligation 35,775 62,275
Loss on Sale of Bank Property 57,568 0
Increase in Interest Payable 12,467 89,325
Increase in Miscellaneous Payables and
Accrued Expenses 102,883 77,967
(Increase) Decrease in Fees and Commissions
Receivable (63,200) 663
(Increase) Decrease in Interest Receivable (244,860) 152,548
Decrease in Prepaid Expenses 285,291 81,780
Decrease in Miscellaneous Receivables 2,717 933,478
Decrease in Income Taxes Receivable 82,672 245,148
(Increase) Decrease in Deferred Taxes (60,191) 28,936
Decrease in Accumulated Post Retirement Benefit
Obligation (38,246) (33,652)
Amortization of Investment Security Premiums and
Accretion of Discounts (37,828) 4,156
------------ ------------
CASH PROVIDED BY OPERATING ACTIVITIES $ 929,171 $ 2,091,657
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Maturities on Investment Securities
Held to Maturity 2,782,827 5,401,741
Proceeds from Maturities of Investment Securities
Available for Sale 4,259,117 8,580,290
Purchases of Investment Securities Available for
Sale (27,253,144) (1,476,956)
Purchases of Investment Securities Held to
Maturity (714,347) 0
Net (Increase) Decrease in Federal Funds Sold 2,650,000 (1,800,000)
Net Increase in Loans (1,307,301) (11,063,467)
Purchases of Premises and Equipment (141,769) (340,851)
Proceeds from Sale of Bank Property 205,239 0
Proceeds from Sale of Other Real Estate Owned 1,070,000 307,469
------------ ------------
CASH USED BY INVESTING ACTIVITIES $(18,449,378) $ (391,774)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase (Decrease) in Demand Deposits, NOW
Accounts and Savings Accounts 9,606,275 (5,832,628)
Net Increase in Time Accounts 4,444,689 9,899,824
Cash Dividends Paid (398,607) (349,176)
Net Increase (Decrease) in Borrowed Funds 5,600,000 (6,003,500)
Proceeds from Sale of Treasury Stock 0 138,405
------------ ------------
CASH PROVIDED (USED) BY FINANCING ACTIVITIES $ 19,252,357 $ (2,147,075)
------------ ------------
Net Increase in Cash and Due from Banks 2,742,293 707,387
</TABLE>
<PAGE> 11
<TABLE>
<CAPTION>
FOR THE NINE MONTHS ENDED
SEPT. 30, 1996 SEPT. 30, 1995
-------------- --------------
<S> <C> <C>
Cash and Due from Banks, Beginning of Year 7,003,234 5,955,650
---------- ----------
Cash and Due from Banks, End of Year $9,745,527 $6,663,037
========== ==========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid During the Period for:
Interest: $ 75,011 $ 106,511
Income Taxes 545,963 362,949
NON-CASH INVESTING ACTIVITIES
Loans Transferred to Other Real Estate Owned $ 0 $ 87,099
</TABLE>
<PAGE> 12
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FINANCIAL STATEMENT PRESENTATION
In the opinion of management, the accompanying unaudited interim
consolidated financial statements contain all adjustments (consisting of normal
recurring accruals) necessary to present fairly its financial position as of
September 30, 1996, and its results of operations for the nine months and three
months ended September 30, 1996 and 1995 and its cash flows for the nine months
and three months ended September 30, 1996 and 1995. For further information,
refer to the consolidated financial statements and notes thereto included in
the Company's annual report on Form 10-K for the year ended December 31, 1995.
EARNINGS PER COMMON SHARES
Earnings per share are calculated by dividing Net Income by the
weighted average number of common shares outstanding.
INVESTMENT SECURITIES
<TABLE>
<S> <C> <C>
Market Value:
September 30, 1996 $57,035,617
December 31, 1995 $36,755,073
</TABLE>
<PAGE> 13
Management's Discussion and Analysis of Financial Condition and
Results of Operation
Smithtown Bancorp, a one-bank holding company, acquired 100% of the
outstanding common stock of Bank of Smithtown on November 1, 1984. Smithtown
Bancorp and its subsidiary Bank of Smithtown, filed an Annual Report 10-KSB for
the period year ended December 31, 1995, and a quarterly report 10Q for the
period, ending March 31, 1996 and June 30,1996.
Results of operations for the nine months ended September 30, 1996 were
very strong. Net income was $1,010,143 as compared to $1,154,599 for the same
period during 1995. Third quarter income levels are almost double the levels of
income achieved during the first six months of the year. This is due primarily
to the effects of the re-engineering project undertaken earlier this year. Non-
interest expense (salary and benefit expense) was 23.10% lower than during the
comparable period in 1995. This expense is expected to continue to decline
throughout fourth quarter as severance packages are fully expensed. Other
significant items contributing to higher levels of income are increased levels
of net interest income (6.41%), the driving force behind bank earnings. Total
interest income was 11.05% higher during the nine months of 1996 than the same
period in 1995. This is due to the increased volume of loans, investment
securities and federal funds sold. Interest expense also increased during 1996
as a result of both higher deposit levels and increased rates. The cost for
borrowed funds decreased during 1996 due to the availability of cash for loan
and security funding. The provision for possible loan losses is significantly
higher than it was during 1995. Management has determined the need for increased
reserves to absorb losses on existing problem loans. Other non-interest income
exceeded 1995 levels by 2.60% due primarily to greater loan fees. Non-interest
expense, excluding salary and benefit expense, increased by 33.49% during 1996
due to the cost of consulting expenses related to the re-engineering project.
These expenses are now completed and no additional re-engineering costs will be
paid during 1996.
The balance sheet for September 30, 1996 is considerably different that
that of 1995. Total assets is $177,758,895, as compared to $157,528,274, a
12.84% increase. This increase is mainly in the investment security portfolio.
It has increased in size by 56.32%. A majority of the security purchases have
been Government National Mortgage Association Adjustable Rate Mortgages. 71.75%
of the entire investment portfolio is held as available for sale. The loan
portfolio has increased slightly by .98% with portfolio segregation remaining
relatively stable. Other Real Estate Owned decreased by $1,150,000 or 22.79% of
the December 31, 1995 level. Total deposits grew by 9.79% since year end 1995,
with the largest increases in demand deposits and certificates of deposit. The
increase in deposits is due to a variety of factors including a more competitive
rate structure, additional deposit products and preferred packages for consumers
and professionals who carry high aggregate levels of deposits. At September 30,
1996, the Bank had total borrowed funds of $5,600,000 of which $2,800,000 was a
2 year repurchase agreement used to fund a three year security purchase and
$2,800,000 were demand notes issued to the U.S. Treasury on which the Bank earns
a small interest spread. Capital levels remain strong for the Bank as compared
to regulatory guidelines and are detailed below:
<TABLE>
<CAPTION>
SEPTEMBER 30, 1996 DECEMBER 31, 1995 REQUIRED
<S> <C> <C> <C>
Tier I 11.89 11.63 4.00
Tier II 1.25 1.25 * * *
Total Risk Based
Capital Ratio 13.17 12.89 8.00
Leverage Ratio 7.56 8.15 4.00
</TABLE>
Based on continued decreased non-interest expense and increased levels
of deposits, management is highly optimistic regarding the level of income
during fourth quarter of 1996 and for the year 1997.
<PAGE> 14
BANK OF SMITHTOWN
GAP REPORT 9/30/96
<TABLE>
<CAPTION>
3 MONTHS 3-6 6-12 1-5 5+
REVOLVING OR LESS MONTHS MONTHS YEARS YEARS
--------- --------- ------ ------ ----- -----
<S> <C> <C> <C> <C> <C>
ASSETS:
INVESTMENTS $ 3,547,339 0 $ 9,615,067 $ 10,165,111 $ 20,672,038 $ 12,720,427
FED FUNDS SOLD 4,100,000 0 0 0 0 0
LOANS:
INSTALLMENT 0 2,096,370 757,048 3,914,489 11,879,456 73,157
REAL ESTATE AND COMMERCIAL 24,061,173 2,677,865 3,375,039 2,445,828 34,187,741 10,113,114
CASH & DUE 0 29,948 0 0 0 0
FIXED ASSETS 0 0 0 0 0 0
OTHER ASSETS 0 0 0 0 0 0
A/L/L 0 0 0 0 0 0
NON-ACCRUALS & UNEARNED DISCOUNT 0 0 0 0 0 0
----------- ------------ ------------ ------------ ------------- ------------
TOTAL $31,708,512 $ 4,804,183 $ 13,747,154 $ 16,525,428 $ 66,739,236 $ 22,906,697
LIABILITIES:
SAVINGS $ 0 $ 2,340,213 $ 2,340,213 $ 4,680,427 $ 37,443,413 $ 0
MONEY MARKETS 0 3,462,881 3,462,881 6,925,762 13,851,524 0
NOW 0 686,929 686,929 1,373,858 10,990,865 0
CD less than 100 85,161 4,569,690 5,241,572 4,286,660 6,740,961 0
CD greater than 100 1,054,506 1,634,748 793,375 1,582,572 1,667,544 0
HOLIDAY CLUBS 0 0 0 0 0 0
DEMAND 0 1,013,147 1,013,147 2,026,295 16,210,360 0
REPURCHASE AGREEMENTS 0 0 0 0 2,800,000 0
OTHER BORROWED MONEY 0 2,800,000 0 0 0 0
OTHER LIABILITIES 0 0 0 0 0 0
STOCKHOLDERS' EQUITY 0 0 0 0 0 0
----------- ------------ ------------ ------------ ------------- ------------
TOTAL $ 1,139,667 $ 16,507,609 $ 13,538,118 $ 20,875,574 $ 89,704,667 $ 0
INTEREST SENSITIVITY GAP
PER PERIOD 30,568,845 (11,703,426) 209,036 (4,350,146) (22,965,432) 22,906,697
GAP/TOTAL ASSETS 17.20% -6.58% 0.12% -2.45% -12.92% 12.89%
CUMULATIVE INTEREST
SENSITIVITY GAP 30,568,845 18,865,420 19,074,456 14,724,310 (8,241,122) 14,665,575
% of CUMULATIVE GAP
TO TOTAL ASSETS 17.20% 10.61% 10.73% 8.28% -4.64% 8.25%
<CAPTION>
OTHER TOTAL
------ -----
<S> <C> <C>
ASSETS:
INVESTMENTS $ 599,800 $ 57,319,781
FED FUNDS SOLD 0 4,100,000
LOANS:
INSTALLMENT 0 18,720,521
REAL ESTATE AND COMMERCIAL 136,488 76,997,249
CASH & DUE 9,715,579 9,745,527
FIXED ASSETS 2,707,875 2,707,875
OTHER ASSETS 6,964,367 6,964,367
A/L/L (1,679,767) (1,679,767)
NON-ACCRUALS & UNEARNED DISCOUNT 2,883,342 2,883,342
------------- -------------
TOTAL $ 21,327,684 $ 177,758,895
=============
LIABILITIES:
SAVINGS $ 0 $ 46,804,267
MONEY MARKETS 0 27,703,048
NOW 0 13,738,582
CD less than 100 0 20,924,044
CD greater than 100 0 6,732,746
HOLIDAY CLUBS 1,392,779 1,392,779
DEMAND 20,262,950 40,525,899
REPURCHASE AGREEMENTS 0 2,800,000
OTHER BORROWED MONEY 0 2,800,000
OTHER LIABILITIES 1,137,056 1,137,056
STOCKHOLDERS' EQUITY 13,200,475 13,200,475
------------- -------------
TOTAL $ 35,993,260 $ 177,758,895
=============
INTEREST SENSITIVITY GAP
PER PERIOD (14,665,576)
GAP/TOTAL ASSETS
CUMULATIVE INTEREST
SENSITIVITY GAP
% of CUMULATIVE GAP
TO TOTAL ASSETS
</TABLE>
<PAGE> 15
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.
SMITHTOWN BANCORP, INC.
November 10, 1996 /s/ Bradley E. Rock
--------------------------
Bradley E. Rock, President
November 10, 1996 /s/ Anita Florek
-----------------------
Anita Florek, Treasurer
<PAGE> 16
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
27 FINANCIAL DATA SCHEDULE
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 2,808,176
<INT-BEARING-DEPOSITS> 29,948
<FED-FUNDS-SOLD> 4,100,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 41,125,061
<INVESTMENTS-CARRYING> 16,194,721
<INVESTMENTS-MARKET> 57,035,617
<LOANS> 96,921,344
<ALLOWANCE> 1,679,767
<TOTAL-ASSETS> 177,758,895
<DEPOSITS> 157,632,460
<SHORT-TERM> 0
<LIABILITIES-OTHER> 6,737,056
<LONG-TERM> 0
0
0
<COMMON> 2,239,775
<OTHER-SE> 11,010,958
<TOTAL-LIABILITIES-AND-EQUITY> 177,758,895
<INTEREST-LOAN> 7,043,785
<INTEREST-INVEST> 2,314,373
<INTEREST-OTHER> 332
<INTEREST-TOTAL> 9,358,490
<INTEREST-DEPOSIT> 2,666,565
<INTEREST-EXPENSE> 2,741,577
<INTEREST-INCOME-NET> 6,616,913
<LOAN-LOSSES> 370,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 6,307,489
<INCOME-PRETAX> 1,578,587
<INCOME-PRE-EXTRAORDINARY> 1,010,143
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,010,143
<EPS-PRIMARY> 2.33
<EPS-DILUTED> 2.33
<YIELD-ACTUAL> 8.27
<LOANS-NON> 3,431,833
<LOANS-PAST> 25,690
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,525,294
<CHARGE-OFFS> 137,338
<RECOVERIES> 17,211
<ALLOWANCE-CLOSE> 1,679,767
<ALLOWANCE-DOMESTIC> 1,679,767
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 692,237
</TABLE>
