<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 June 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 June
30, 1996.
<PAGE> 2
SMITHTOWN BANCORP, INC.
INDEX
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - June 30, 1996 and December 31, 1995
Consolidated Statements of Income - Three months ended June 30,
1996 and 1995, and six months ended June 30, 1996 and 1995
Consolidated Statements of Changes in Stockholders' Equity -
Six months ended June 30, 1996 and 1995
Consolidated Statements of Cash Flows - Three months ended June
30, 1996 and 1995, and six months ended June 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
<TABLE>
<CAPTION>
(Unaudited) (Audited)
AS OF
JUNE 30, 1996 DECEMBER 31, 1995
------------- -----------------
<S> <C> <C>
ASSETS
Cash and Due from Banks $ 7,703,429 $ 7,003,234
Investment Securities:
Investment Securities Held to Maturity
Obligations of U.S. Government 2,011,095 2,013,739
Obligation of U.S. Government Agencies 0 0
Mortgage-Backed Securities 9,566,177 10,226,753
Obligations of State and Political Subdivisions 5,162,263 4,647,865
------------- -------------
Total 16,739,535 16,888,357
------------- -------------
Investment Securities Available for Sale
Obligations of U.S. Government 1,000,780 3,008,900
Obligations of U.S. Government Agencies 10,838,390 3,015,900
Mortgage-Backed Securities 22,343,314 13,155,534
Other Securities 599,800 599,000
------------- -------------
Total 34,782,284 19,779,334
------------- -------------
Total Investment Securities 51,521,819 36,667,691
------------- -------------
(Market value $51,216,363 at 6/30/96 and
$36,755,073 at 12/31/95)
Federal Funds Sold 6,850,000 6,750,000
Loans
Real Estate 69,010,059 62,926,321
Commercial and Industrial 19,495,201 19,074,380
Loans to Individuals for Household, Family and
Other Personal Expenditures 13,713,200 15,993,856
Other 94,364 74,704
------------- -------------
Total 102,312,824 98,069,261
Less: Unearned Discount (545,410) (655,323)
Reserve for Possible Loan Losses (1,525,100) (1,429,894)
------------- -------------
Loans, Net 100,242,314 95,984,044
------------- -------------
Bank Premises and Equipment 2,766,120 3,173,036
Other Assets
Other Real Estate Owned 3,893,630 5,046,544
Other 3,251,207 2,903,725
------------- -------------
TOTAL ASSETS $ 176,228,519 $ 157,528,274
============= =============
LIABILITIES
Deposits:
Demand $ 39,829,698 $ 35,944,658
Money Market 26,580,038 23,376,214
NOW 14,079,203 13,341,511
Savings 47,029,023 46,314,234
Certificates of Deposit $100,000 and over 8,209,935 4,986,024
Other Time Deposits 21,803,496 19,618,856
------------- -------------
Total 157,531,393 143,581,497
Dividend Payable 138,646 121,315
Securities Sold Under Agreements to Repurchase 2,800,000 0
Demand Notes Issued to the U.S. Treasury 2,045,713 0
Other Liabilities 940,712 988,389
------------- -------------
Total 163,456,464 144,691,201
------------- -------------
</TABLE>
<PAGE> 4
<TABLE>
<S> <C> <C>
CAPITAL ACCOUNTS
Common Stock - $5.00 Par Value, 500,000 Shares 2,239,775 2,239,775
Authorized; 447,955 Shares Issued
Unrealized Loss on Investment Securities
Available for Sale (306,099) (28,157)
Surplus 1,993,574 1,993,574
Retained Earnings 9,291,444 9,078,520
------------- -------------
Total 13,218,694 13,283,712
Less: Treasury Stock (446,639) (446,639)
------------- -------------
Total 12,772,055 12,837,073
TOTAL LIABILITIES AND CAPITAL $ 176,228,519 $ 157,528,274
============= =============
</TABLE>
<PAGE> 5
SMITHTOWN BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
<TABLE>
<CAPTION>
FOR THREE MONTHS ENDED
JUNE 30, 1996 JUNE 30, 1995
-------------- --------------
<S> <C> <C>
INTEREST INCOME
Interest and Fees on Loans $2,362,333 $2,005,789
Interest and Dividends on:
Obligations of U.S. Government 39,049 109,248
Obligations of U.S. Government Agencies 129,037 44,711
Mortgage-Backed Securities 399,452 491,520
Obligations of State & Political Subdivisions 70,513 83,105
Other Securities 9,538 1,908
Interest on Federal Funds Sold 110,333 68,997
Interest on Balances Due From Depository Institutions 207 0
---------- ----------
Total Interest Income 3,120,462 2,805,278
---------- ----------
INTEREST EXPENSE
Money Market Accounts 199,863 175,446
Savings 336,535 344,762
Certificates of Deposit $100,000 and Over 71,843 49,354
Other Time Deposits 284,663 250,700
Interest on Federal Funds Purchased and Securities
Sold Under agreements to Repurchase 14,375 20,003
Interest on Demand Notes Issued to the U.S. Treasury 5,379 0
---------- ----------
Total Interest Expense 912,658 840,265
---------- ----------
Net Interest Income 2,207,804 1,965,013
Provision for Possible Loan Losses 130,000 30,000
---------- ----------
Net Interest Income After Provision for Possible
Loan Losses 2,077,804 1,935,013
---------- ----------
OTHER NON - INTEREST INCOME
Trust Department Income 92,875 100,460
Service Charges on Deposit Accounts 322,352 322,123
Other Income 132,565 77,185
---------- ----------
Total Other Non - Interest Income 547,792 499,768
---------- ----------
OTHER OPERATING EXPENSES
Salaries 876,325 868,248
Pension and Other Employee Benefits 209,401 197,043
Net Occupancy Expense of Bank Premises 253,496 207,380
Furniture and Equipment Expense 159,788 148,429
Miscellaneous Operating Expense 677,750 450,916
---------- ----------
Total Other Operating Expense 2,176,760 1,872,016
---------- ----------
Income Before Income Taxes 448,836 562,765
Provision for Income Taxes 157,418 203,700
---------- ----------
NET INCOME $ 291,418 $ 359,065
========== ==========
Earnings Per Share
Net Income $ 0.67 $ 0.83
Cash Dividends Paid $ 0.32 $ 0.28
Weighted Average Shares Outstanding 433,268 432,590
</TABLE>
<PAGE> 6
SMITHTOWN BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
<TABLE>
<CAPTION>
FOR SIX MONTHS ENDED
JUNE 30, 1996 JUNE 30, 1995
------------- --------------
<S> <C> <C>
INTEREST INCOME
Interest and Fees on Loans $4,676,350 $3,948,325
Interest and Dividends on:
Obligations of U.S. Government 85,707 262,015
Obligations of U.S. Government Agencies 174,490 89,504
Mortgage-Backed Securities 724,641 999,028
Obligations of State & Political Subdivisions 141,359 170,314
Other Securities 18,601 3,816
Interest on Federal Funds Sold 262,200 96,477
Interest on Balances Due From Depository Institutions 332 0
---------- ----------
Total Interest Income 6,083,680 5,569,479
---------- ----------
INTEREST EXPENSE
Money Market Accounts 415,434 357,391
Savings 671,713 687,426
Certificates of Deposit $100,000 and Over 121,590 84,855
Other Time Deposits 566,737 402,021
Interest on Federal Funds Purchased and Securities
Sold Under agreements to Repurchase 14,375 106,510
Interest on Demand Notes Issued to the U.S. Treasury 5,379 0
---------- ----------
Total Interest Expense 1,795,228 1,638,203
---------- ----------
Net Interest Income 4,288,452 3,931,276
Provision for Possible Loan Losses 220,000 60,000
---------- ----------
Net Interest Income After Provision for Possible
Loan Losses 4,068,452 3,871,276
---------- ----------
OTHER NON - INTEREST INCOME
Trust Department Income 195,810 172,478
Service Charges on Deposit Accounts 643,011 648,517
Other Income 284,101 193,623
Net Securities Transactions 0 1,826
---------- ----------
Total Other Non - Interest Income 1,122,922 1,016,444
---------- ----------
OTHER OPERATING EXPENSES
Salaries 1,796,245 1,718,205
Pension and Other Employee Benefits 440,224 424,793
Net Occupancy Expense of Bank Premises 584,553 434,565
Furniture and Equipment Expense 328,436 300,441
Miscellaneous Operating Expense 1,296,733 935,972
---------- ----------
Total Other Operating Expense 4,446,191 3,813,976
---------- ----------
Income Before Income Taxes 745,183 1,073,744
Provision for Income Taxes 254,968 383,700
---------- ----------
NET INCOME $ 490,215 $ 690,044
========== ==========
Earnings Per Share
Net Income $ 1.13 $ 1.60
Cash Dividends Paid $ 0.60 $ 0.56
Weighted Average Shares Outstanding 433,268 432,590
</TABLE>
<PAGE> 7
SMITHTOWN BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
FOR THREE MONTHS ENDED
JUNE 30, 1996 JUNE 30, 1995
------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 291,418 $ 359,065
Adjustments to reconcile net income to net cash
provided by operating activities:
Valuation Reserve for Other Real Estate Owned 20,000 0
Depreciation on Premises and Equipment 115,903 109,625
Provision for Possible Loan Losses 130,000 30,000
Amortization of Transition Obligation 11,925 18,550
Increase in Interest Payable 2,486 60,234
Decrease in Miscellaneous Payables and
Accrued Expenses (68,145) (96,461)
Increase in Fees and Commissions
Receivable (22,800) (21,800)
Increase in Interest Receivable (266,153) (83,814)
Decrease in Prepaid Expenses 11,254 101,892
Decrease in Miscellaneous Receivables 8,189 929,796
Increase in Income Taxes Receivable (33,491) 0
(Increase) Decrease in Deferred Taxes 9,909 (22,323)
Decrease in accumulated Post Retirement Benefit
Obligation (11,501) (11,500)
Amortization of Investment Security Premiums and
Accretion of Discounts 47,604 (2,959)
------------ -----------
CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ (44,820) $ 1,011,240
------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Maturities on Investment Securities
Held to Maturity 387,769 605,206
Proceeds from Maturities of Investment Securities
Available for Sale 937,972 1,975,374
Purchases of Investment Securities Available for
Sale (14,937,302) 0
Purchases of Investment Securities Held to
Maturity (714,347) 0
Net (Increase) Decrease in Federal Funds Sold 4,750,000 (7,850,000)
Net Increase in Loans (2,945,985) (2,164,670)
Purchases of Premises and Equipment (71,494) (38,385)
Proceeds from Sale of Other Real Estate Owned 650,000 0
------------ -----------
CASH USED BY INVESTING ACTIVITIES $(11,943,387) $(7,472,475)
------------ -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in demand Deposits, NOW
Accounts and Savings Accounts 7,225,121 2,890,102
Net Increase in Time Accounts 1,336,104 4,460,362
Cash Dividends Paid (138,646) (121,110)
Net Increase in Borrowed Funds 4,845,713 0
Proceeds from Sale of Treasury Stock 0 3,408
------------ -----------
CASH PROVIDED BY FINANCING ACTIVITIES $ 13,268,292 $ 7,232,762
------------ -----------
Net Increase in Cash and Due from Banks 1,571,503 1,130,592
Cash and Due from Banks, Beginning 6,131,926 5,774,918
------------ -----------
Cash and Due from Banks, Ending $ 7,703,429 $ 6,905,510
============ ===========
</TABLE>
<PAGE> 8
<TABLE>
<S> <C> <C>
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash Paid During the Year for:
Income Taxes $ 181,000 $ 209,631
</TABLE>
<PAGE> 9
SMITHTOWN BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
FOR SIX MONTHS ENDED
6/30/96 6/30/95
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 490,215 $ 690,044
Adjustments to reconcile net income to net cash
provided by operating activities:
Valuation Reserve for Other Real Estate Owned 80,000 0
Depreciation on Premises and Equipment 235,181 217,153
Provision for Possible Loan Losses 220,000 60,000
Net Gain on Sales of Investment Securities 0 (1,826)
Amortization of Transition Obligation 23,850 50,350
Loss on Sale of Bank Property 57,568 0
Increase in Interest Payable 15,264 78,624
Decrease in Miscellaneous Payables and
Accrued Expenses (30,037) (133,346)
(Increase) Decrease in Fees and Commissions
Receivable (45,600) 1,063
(Increase) Decrease in Interest Receivable (218,498) 94,052
Decrease in Prepaid Expenses 66,090 36,456
Decrease in Miscellaneous Receivables 3,025 924,756
Decrease in Income Taxes Receivable 7,096 245,148
(Increase) Decrease in Deferred Taxes 9,909 (57,498)
Decrease in accumulated Post Retirement Benefit
Obligation (22,076) (23,272)
Amortization of Investment Security Premiums and
Accretion of Discounts (71,289) (5,888)
------------ ------------
CASH PROVIDED BY OPERATING ACTIVITIES $ 330,483 $ 1,485,772
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Maturities on Investment Securities
Held to Maturity 841,001 3,961,058
Proceeds from Maturities of Investment Securities
Available for Sale 3,721,585 6,485,198
Purchases of Investment Securities Available for
Sale (19,110,288) 0
Purchases of Investment Securities Held to
Maturity (714,347) 0
Net Increase in Federal Funds Sold (100,000) (8,250,000)
Net Increase in Loans (4,478,269) (5,737,291)
Purchases of Premises and Equipment (91,072) (88,131)
Proceeds from Sale of Bank Property 205,239 0
Proceeds from Sale of Other Real Estate Owned 1,070,000 0
------------ ------------
CASH USED BY INVESTING ACTIVITIES $(18,656,151) $ (3,629,166)
------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase (Decrease) in Demand Deposits, NOW
Accounts and Savings Accounts 8,541,345 (507,984)
Net Increase in Time Accounts 5,408,551 12,019,315
Cash Dividends Paid (259,961) (228,027)
Net Increase (Decrease) in Borrowed Funds 4,845,713 (9,003,500)
Proceeds from Sale of Treasury Stock 0 123,406
------------ ------------
CASH PROVIDED BY FINANCING ACTIVITIES $ 18,535,648 $ 2,403,210
------------ ------------
</TABLE>
<PAGE> 10
<TABLE>
<S> <C> <C>
Net Increase in Cash and Due from Banks 700,195 949,860
Cash and Due from Banks, Beginning of Year 7,003,234 5,955,650
------------ ------------
Cash and Due from Banks, End of Year $ 7,703,429 $ 6,905,510
============ ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid During the year for:
Interest: $ 19,754 $ 106,511
Income Taxes $ 237,963 $ 229,580
NON-CASH INVESTING ACTIVITIES
Loans Transferred to Other Real Estate Owned $ 0 $ 87,099
</TABLE>
<PAGE> 11
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(unaudited)
<TABLE>
<CAPTION>
UNREALIZED COST OF
COMMON STOCK LOSS COMMON TOTAL
SHARES CAPITAL ON SECURITIES RETAINED STOCK IN STOCKHOLDERS'
OUTSTANDING AMOUNT SURPLUS AVAILABLE FOR SALE EARNINGS TREASURY EQUITY
----------- ------ ------- ------------------ ---------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1995 427,666 $2,239,775 $1,993,118 $ (134,616) $ 8,092,029 $(584,588) $11,605,718
Net Income 690,044 690,044
Cash Dividend Declared (242,260) (242,260)
Allowance for Unrealized
Gain 114,921 114,921
Sale of Treasury Stock 84 123,322 123,406
-------- ---------- ---------- ----------- ----------- --------- -----------
BALANCE AT JUNE 30, 1995 427,666 $2,239,775 $1,993,202 $ (19,695) $ 8,539,813 $(461,266) $12,291,829
======= ========== ========== =========== =========== ========= ===========
Balance at January 1, 1996 433,268 $2,239,775 $1,993,574 $ (28,157) $9,078,520 $(446,639) $12,837,073
Net Income 490,215 490,215
Cash Dividend Declared (277,291) (277,291)
Allowance for Unrealized
Loss (277,942) (277,942)
Sale of Treasury Stock
-------- ---------- ---------- ----------- ----------- --------- -----------
BALANCE AT JUNE 30, 1996 $433,268 $2,239,775 $1,993,574 $ (306,099) $ 9,291,444 $(446,639) $12,772,055
======== ========== ========== =========== =========== ========= ============
</TABLE>
<PAGE> 12
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 10KSB from
the period ended December 31, 1995 and a Quarterly Report 10Q for the period
ended March 31, 1996.
The Bank's Balance Sheet for June 30, 1996 grew by 11.87% over December
31, 1995. On the Asset side of the Balance Sheet, total Investment Securities
increased by $14,854,128 or 40.51%, primarily through the purchase of GNMA ARM's
and FNMA and FHLB mortgage-backed securities. A majority of the security
purchases were placed in the Available for Sale portfolio. Loan growth for the
six month period was $4,353,476, representing a 4.46% increase. The bank's loan
to deposit ratio at June 30, 1996 was 67.85%. Yield on average interest earning
assets for that same period was 8.55%. Other Real Estate Owned was reduced by
$1,152,914 as a result of two property sales. On the Liability side of the
Balance Sheet, total Deposits increased by $13,949,896 or 9.71% over December
31, 1995. As can be seen from the deposit allocation on the Balance Sheet, all
types of deposit accounts grew during the first six months. The bank entered
into a two year repurchase agreement during second quarter, the funds from which
were used to purchase a two year callable FNMA security resulting in an after
tax benefit of 76 basis points. Bank of Smithtown also became a note option
depositary with the U.S. Treasury during second quarter, and at June 30, 1996
demand note balances at the bank were $2,045,713. Total Capital at June 30 was
$12,772,055 as compared to $12,837,073 at June 30, 1995, a .50% decrease due
entirely to the decline in Unrealized Losses on Securities Available for Sale.
Capital ratios, net of the unrealized loss, remain strong by all guidelines and
are outlined below.
<TABLE>
<CAPTION>
JUNE 30, 1996 DECEMBER 31, 1995 REQUIRED
<S> <C> <C> <C>
Tier I 11.40 11.63 4.00
Tier II 1.25 1.25 * * *
Total Risk Based
Capital Ratio 12.66 12.89 8.00
Leverage Ratio 7.52 8.15 4.00
</TABLE>
Income for the six months ended June 30, 1996 was $490,215 as compared
to $690,044 for the same period during 1995. An analysis of the Income Statement
shows loan income for the six month period in 1996 was 18.44% higher than in
1995. Investment security income was $1,144,798 as compared to $1,524,677, a
24.92% reduction due to reduced average balances in 1996. Total interest expense
was 9.59% higher during 1996, as a result of higher levels of deposits. The
Provision for Possible Loan Losses was $220,000 for the six month period ending
June 30, 1996 as compared to $60,000 during 1995. This increase was necessitated
to provide adequate coverage for both a greatly increased loan portfolio, and
one large nonperforming real estate loan. Net interest income after this
provision still remained 5.09% greater than that of 1995. Total non-interest
income was 10.48% greater during the first six months of 1996 due to trust
income, and a reduced OREO Valuation Provision. Other Operating Expenses were
$4,446,191 as compared to $3,813,976 or 16.58% higher, due totally to the
consulting expenses related to the bank's reengineering efforts. These
consulting expenses will be paid in full during August 1996 and thereafter, the
benefits of the effort will be reflected in Net Income. The benefits of the
reengineering have already resulted in greater reduced salary expense for active
employees. The full effects of this project, including a reduction of
approximately 25 full time equivalent employees, will begin during fourth
quarter.
Management remains confident that the second six months of 1996 will
reflect great improvements to bottom line, with all financial ratios remaining
strong.
<PAGE> 13
BANK OF SMITHTOWN
GAP REPORT 6/30/96
<TABLE>
<CAPTION>
3 MONTHS 3-6 6-12 1-5 5+
REVOLVING OR LESS MONTHS MONTHS YEARS YEARS
--------- ---------- ------ ------ ----- -----
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
INVESTMENTS $ 33,600 $ 2,111,233 $ 2,004,191 $ 13,224,154 $ 20,348,784 $ 13,200,057
FED FUNDS SOLD 6,850,000 0 0 0 0 0
LOANS:
INSTALLMENT 133 864,868 787,734 1,854,378 14,808,790 956,740
REAL ESTATE AND COMMERCIAL 25,763,820 3,152,973 1,606,516 4,923,130 17,353,572 27,290,809
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 $ 32,647,553 $ 6,159,022 $ 4,398,441 $ 20,001,662 $ 52,511,146 $ 41,447,606
LIABILITIES:
SAVINGS $ 0 $ 2,351,451 $ 2,351,451 $ 4,702,902 $ 37,623,218 $ 0
MONEY MARKETS 0 3,322,505 3,322,505 6,645,009 13,290,019 0
NOW 0 703,960 703,960 1,407,920 11,263,363 0
CD lesser than 100 120,824 6,745,813 2,779,879 6,151,634 4,919,314 0
CD greater than 100 1,054,315 2,995,716 699,314 1,320,212 2,140,378 0
HOLIDAY CLUBS 0 0 0 0 0 0
DEMAND 0 1,000,465 1,000,465 2,000,930 16,007,441 0
REPURCHASE AGREEMENTS 0 0 0 0 2,800,000 0
OTHER BORROWED MONEY 0 2,045,713 0 0 0 0
OTHER LIABILITIES 0 0 0 0 0 0
STOCKHOLDERS' EQUITY 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL $ 1,175,139 $ 19,165,623 $ 10,857,574 $ 22,228,607 $ 88,043,733 $ 0
INTEREST SENSITIVITY GAP
PER PERIOD 31,472,414 (13,006,601) (6,459,133) (2,226,945) (35,532,587) 41,447,606
GAP/TOTAL ASSETS 17.86% (7.38%) (3.67%) (1.26%) (20.16%) 23.52%
CUMULATIVE INTEREST
SENSITIVITY GAP 31,472,414 18,465,812 12,006,679 9,779,734 (25,752,853) 15,694,753
% of CUMULATIVE GAP
TO TOTAL ASSETS 17.86% 10.48% 6.81% 5.55% (14.61%) 8.91%
</TABLE>
<TABLE>
<CAPTION>
OTHER TOTAL
----- -----
<S> <C> <C>
ASSETS:
INVESTMENTS $ 599,800 $ 51,521,819
FED FUNDS SOLD 0 6,850,000
LOANS:
INSTALLMENT 0 19,272,643
REAL ESTATE AND COMMERCIAL 94,363 80,185,182
CASH & DUE 7,673,481 7,703,429
FIXED ASSETS 2,766,120 2,766,120
OTHER ASSETS 7,144,837 7,144,837
A/L/L (1,525,100) (1,525,100)
NON-ACCRUALS & UNEARNED DISCOUNT 2,309,589 2,309,589
------------ ------------
TOTAL $ 19,063,090 $176,228,519
LIABILITIES:
SAVINGS $ 0 $ 47,029,023
MONEY MARKETS 0 26,580,038
NOW 0 14,079,203
CD lesser than 100 0 20,717,464
CD greater than 100 0 8,209,934
HOLIDAY CLUBS 1,086,033 1,086,033
DEMAND 20,009,301 40,018,602
REPURCHASE AGREEMENTS 0 2,800,000
OTHER BORROWED MONEY 0 2,045,713
OTHER LIABILITIES 940,712 940,712
STOCKHOLDERS' EQUITY 12,721,797 12,721,797
------------ ------------
TOTAL $ 34,757,843 $176,228,519
INTEREST SENSITIVITY GAP
PER PERIOD (15,694,753)
GAP/TOTAL ASSETS
CUMULATIVE INTEREST
SENSITIVITY GAP
% of CUMULATIVE GAP
TO TOTAL ASSETS
</TABLE>
<PAGE> 14
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
June 30, 1996, and its results of operations for the three months ended June 30,
1996 and 1995 and its cash flows for the three months ended June 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 KSB 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
Market Value:
<TABLE>
<S> <C>
June 30, 1996 $51,216,363
December 31, 1995 $36,755,073
</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.
August 14, 1996 /s/ Bradley E. Rock
---------------------------
Bradley E. Rock, President
August 14, 1996 /s/ Anita Florek
--------------------------
Anita Florek, Treasurer
<PAGE> 16
EXHIBIT INDEX
-------------
Exhibit 27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 2,352,934
<INT-BEARING-DEPOSITS> 29,948
<FED-FUNDS-SOLD> 6,850,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 16,739,535
<INVESTMENTS-CARRYING> 34,782,284
<INVESTMENTS-MARKET> 51,216,363
<LOANS> 101,767,414
<ALLOWANCE> 1,525,100
<TOTAL-ASSETS> 176,228,519
<DEPOSITS> 157,531,393
<SHORT-TERM> 0
<LIABILITIES-OTHER> 5,925,071
<LONG-TERM> 0
0
0
<COMMON> 2,239,775
<OTHER-SE> 10,532,280
<TOTAL-LIABILITIES-AND-EQUITY> 176,228,519
<INTEREST-LOAN> 2,362,333
<INTEREST-INVEST> 757,922
<INTEREST-OTHER> 207
<INTEREST-TOTAL> 3,120,462
<INTEREST-DEPOSIT> 892,904
<INTEREST-EXPENSE> 912,658
<INTEREST-INCOME-NET> 2,207,804
<LOAN-LOSSES> 130,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,176,760
<INCOME-PRETAX> 448,836
<INCOME-PRE-EXTRAORDINARY> 291,418
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 291,418
<EPS-PRIMARY> .67
<EPS-DILUTED> .67
<YIELD-ACTUAL> 8.55
<LOANS-NON> 2,854,597
<LOANS-PAST> 280,027
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,525,294
<CHARGE-OFFS> 136,423
<RECOVERIES> 11,630
<ALLOWANCE-CLOSE> 1,525,100
<ALLOWANCE-DOMESTIC> 1,525,100
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 380,610
</TABLE>
