<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, 1997
Commission file number 2-91511
SMITHTOWN BANCORP
(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, 1997.
<PAGE> 2
SMITHTOWN BANCORP
INDEX
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - June 30, 1997 and December 31, 1996
Consolidated Statements of Income - Three months ended June 30, 1997
and 1996
Consolidated Statements of Income - Six months ended June 30, 1997 and
1996
Consolidated Statements of Changes in Stockholders' Equity - Six months
ended June 30, 1997 and 1996
Consolidated Statements of Cash Flows - Three months ended June 30,
1997 and 1996
Consolidated Statements of Cash Flows - Six months ended June 30, 1997
and 1996
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
(UNAUDITED) (AUDITED)
JUNE 30, 1997 DECEMBER 31, 1996
------------- -----------------
<S> <C> <C>
ASSETS
Cash and Due from Banks $ 10,428,758 $ 7,689,964
Investment Securities:
Investment Securities Held to Maturity
Obligations of U.S. Government 2,005,603 2,008,366
Mortgage - Backed Securities 8,110,926 9,003,335
Obligations of State and Political Subdivisions 5,037,184 4,996,750
------------ ------------
Total 15,153,713 16,008,451
------------ ------------
Investment Securities Available for Sale
Obligations of U.S. Government Agencies 13,536,503 13,563,700
Mortgage - Backed Securities 38,716,498 34,218,784
Other Securities 826,800 599,800
------------ ------------
Total 53,079,801 48,382,284
------------ ------------
Total Investment Securities 68,233,514 64,390,735
------------ ------------
(Fair value $68,218,067 at 6/30/97 and
$64,285,417 at 12/31/96)
Federal Funds Sold 13,300,000 0
Loans
Real Estate 67,209,226 65,326,210
Mortgage Loans Held for Sale 0 495,000
Commercial and Industrial 22,478,112 23,458,052
Loans to Individuals for Household, Family and
Other Personal Expenditures 9,213,950 11,543,331
Other 301,896 328,078
------------ ------------
Total 99,203,184 101,150,671
Less: Unearned Discount (545,126) (572,731)
Reserve for Possible Loan Losses (1,449,253) (1,622,572)
------------ ------------
Loans, Net 97,208,805 98,955,368
------------ ------------
Bank Premises and Equipment 2,523,306 2,618,863
Other Assets
Other Real Estate Owned 4,006,296 5,087,707
Other 2,735,350 2,886,412
------------ ------------
TOTAL ASSETS $198,436,029 $181,629,049
============ ============
</TABLE>
<PAGE> 4
<TABLE>
<S> <C> <C>
LIABILITIES
Deposits:
Demand $ 41,682,585 $ 42,562,809
Money Market 33,783,461 27,412,325
NOW 15,455,263 14,466,688
Savings 43,561,896 45,729,259
Certificates of Deposit $100,000 and Over 9,195,470 6,392,848
Other Time Deposits 23,051,887 22,364,526
------------ ------------
Total 166,730,562 158,928,455
Dividend Payable 151,644 138,646
Securities Sold Under Agreements to Repurchase 2,800,000 2,800,000
Demand Notes Issued to the U.S. Treasury 9,000,000 1,485,724
Other Borrowed Funds 3,000,000 3,000,000
Other Liabilities 1,237,453 1,178,985
------------ ------------
Total 182,919,659 167,531,810
------------ ------------
STOCKHOLDERS' EQUITY
Common Stock - $5.00 Par Value, 500,000 Shares 2,239,775 2,239,775
Authorized; 447,955 Shares Issued
Unrealized Gain on Investment Securities
Available for Sale 146,710 81,093
Surplus 1,993,574 1,993,574
Retained Earnings 11,582,950 10,229,436
------------ ------------
Total 15,963,009 14,543,878
Less: Treasury Stock (446,639) (446,639)
------------ ------------
Total 15,516,370 14,097,239
------------ ------------
TOTAL LIABILITIES AND CAPITAL $198,436,029 $181,629,049
============ ============
</TABLE>
<PAGE> 5
SMITHTOWN BANCORP
CONSOLIDATED STATEMENTS INCOME
(unaudited)
<TABLE>
<CAPTION>
FOR THREE MONTHS ENDED
JUNE 30, 1997 JUNE 30, 1996
------------- -------------
<S> <C> <C>
INTEREST INCOME
Interest and Fees on Loans $2,375,011 $2,362,333
Interest and Dividends on:
Obligations of U.S. Government 23,991 39,049
Obligations of U.S. Government Agencies 266,487 129,037
Mortgage - Backed Securities 753,222 399,452
Obligations of State & Political Subdivisions 77,804 70,513
Other Securities 22,630 9,538
Interest on Federal Funds Sold 65,908 110,333
Interest on Balances Due From Depository Institutions 1,385 207
---------- ----------
Total Interest Income 3,586,438 3,120,462
---------- ----------
INTEREST EXPENSE
Money Market Accounts 266,382 199,863
Savings 242,778 336,535
Certificates of Deposit $100,000 and Over 48,961 71,843
Other Time Deposits 334,474 284,663
Interest on Federal Funds Purchased and Securities
Sold Under Agreements to Repurchase 42,483 14,375
Interest on Demand Notes Issued by U. S. Treasury 31,035 5,379
Interest on Other Borrowed Money 42,245 0
---------- ----------
Total Interest Expense 1,008,358 912,658
---------- ----------
Net Interest Income 2,578,080 2,207,804
Provision for Possible Loan Losses 140,000 130,000
---------- ----------
Net Interest Income After Provision for Possible
Loan Losses 2,438,080 2,077,804
---------- ----------
OTHER NON - INTEREST INCOME
Trust Department Income 119,500 92,875
Service Charges on Deposit Accounts 401,868 322,352
Other Income 186,051 132,565
---------- ----------
Total Other Non - Interest Income 707,419 547,792
---------- ----------
OTHER OPERATING EXPENSES
Salaries 763,239 876,325
Pension and Other Employee Benefits 165,058 209,401
Net Occupancy Expense of Bank Premises 220,461 253,496
Furniture and Equipment Expense 141,422 159,788
Miscellaneous Operating Expense 456,541 677,750
---------- ----------
Total Other Operating Expense 1,746,721 2,176,760
---------- ----------
Income Before Income Taxes 1,398,778 448,836
Provision for Income Taxes 540,255 157,418
---------- ----------
NET INCOME $ 858,523 $ 291,418
========== ==========
Earnings Per Share
Net Income $ 1.98 $ 0.67
Cash Dividends Paid $ 0.35 $ 0.32
Weighted Average Shares Outstanding 433,268 433,268
</TABLE>
<PAGE> 6
SMITHTOWN BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
<TABLE>
<CAPTION>
FOR SIX MONTHS ENDED
JUNE 30, 1997 JUNE 30, 1996
------------- -------------
<S> <C> <C>
INTEREST INCOME
Interest and Fees on Loans $4,754,488 $4,676,350
Interest and Dividends on:
Obligations of U.S. Government 48,868 85,707
Obligations of U.S. Government Agencies 488,899 174,490
Mortgage - Backed Securities 1,438,976 724,641
Obligations of State & Political Subdivisions 152,352 141,359
Other Securities 24,890 18,601
Interest on Federal Funds Sold 120,212 262,200
Interest on Balances Due From Depository Institutions 2,293 332
---------- ----------
Total Interest Income 7,030,978 6,083,680
---------- ----------
INTEREST EXPENSE
Money Market Accounts 498,645 415,434
Savings 519,318 671,713
Certificates of Deposit $100,000 and Over 105,743 121,590
Other Time Deposits 629,944 566,737
Interest on Federal Funds Purchased and Securities
Sold Under Agreements to Repurchase 86,402 14,375
Interest on Demand Notes Issued by U.S. Treasury 46,641 5,379
Interest on Other Borrowed Money 88,668 0
---------- ----------
Total Interest Expense 1,975,361 1,795,228
---------- ----------
Net Interest Income 5,055,617 4,288,452
Provision for Possible Loan Losses 140,000 220,000
Net Interest Income After Provision for Possible
---------- ----------
Loan Losses 4,915,617 4,068,452
---------- ----------
OTHER NON - INTEREST INCOME
Trust Department Income 221,259 195,810
Service Charges on Deposit Accounts 774,541 643,011
Other Income 340,544 284,101
---------- ----------
Total Other Non - Interest Income 1,336,344 1,122,922
---------- ----------
OTHER OPERATING EXPENSES
Salaries 1,486,414 1,796,245
Pension and Other Employee Benefits 342,369 440,224
Net Occupancy Expense of Bank Premises 457,990 584,553
Furniture and Equipment Expense 297,600 328,436
Miscellaneous Operating Expense 958,861 1,296,733
---------- ----------
Total Other Operating Expense 3,543,234 4,446,191
---------- ----------
Income Before Income Taxes 2,708,727 745,183
Provision for Income Taxes 1,051,925 254,968
---------- ----------
NET INCOME $1,656,802 $ 490,215
========== ==========
Earnings Per Share
Net Income $ 3.82 $ 1.13
Cash Dividends Paid $ 0.67 $ 0.60
Weighted Average Shares Outstanding 433,268 433,268
</TABLE>
<PAGE> 7
SMITHTOWN BANCORP
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(unaudited)
<TABLE>
<CAPTION>
UNREALIZED COST OF
COMMON STOCK GAIN(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 1/1/96 433,268 $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
Gain(Loss) (277,942) (277,942)
--------- ---------- ---------- --------- ----------- --------- -----------
BALANCE AT 6/30/96 433,268 $2,239,775 $1,993,574 $(306,099) $ 9,291,444 $(446,639) $12,772,055
========= ========== ========== ========= =========== ========= ===========
Balance at 1/1/97 433,268 $2,239,775 $1,993,574 $ 81,093 $10,229,436 $(446,639) $14,097,239
Net Income 1,656,802 1,656,802
Cash Dividend Declared (303,288) (303,288)
Allowance for Unrealized
Gain(Loss) 65,617 65,617
--------- ---------- ---------- --------- ----------- --------- -----------
BALANCE AT 6/30/97 433,268 $2,239,775 $1,993,574 $ 146,710 $11,582,950 $(446,639) $15,516,370
========= ========== ========== ========= =========== ========= ===========
</TABLE>
<PAGE> 8
SMITHTOWN BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
FOR THREE MONTHS ENDED
JUNE 30, 1997 JUNE 30, 1996
------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 858,523 $ 291,418
Adjustments to reconcile net income to net cash
provided by operating activities:
Valuation Reserve for Other Real Estate Owned 30,000 20,000
Depreciation on Premises and Equipment 105,419 115,903
Provision for Possible Loan Losses 140,000 130,000
Amortization of Transition Obligation 26,025 11,925
Increase(Decrease)in Interest Payable (12,406) 2,486
Increase(Decrease)in Miscellaneous Payables and
Accrued Expenses 51,589 (68,145)
Increase in Fees and Commissions Receivable (6,000) (22,800)
(Increase)Decrease in Interest Receivable 159,721 (266,153)
Decrease in Prepaid Expenses 69,635 11,254
(Increase)Decrease in Miscellaneous Receivables (33,884) 8,189
Increase in Income Taxes Receivable (99,129) (33,491)
Increase(Decrease) in Deferred Taxes (90,616) 9,909
Decrease in Accumulated Post Retirement Benefit
Obligation (15,754) (11,501)
Amortization of Investment Security Premiums and
Accretion of Discounts (58,959) 47,604
------------ ------------
CASH PROVIDED BY OPERATING ACTIVITIES 1,124,164 246,598
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Maturities of Investment Securities
Held to Maturity 828,830 387,769
Proceeds from Maturities of Investment Securities
Available for Sale 5,654,456 937,972
Purchases of Investment Securities Available for Sale (4,897,019) (14,937,302)
Purchases of Investment Securities Held to Maturity (473,799) (714,347)
Net (Increase)Decrease in Federal Funds Sold (6,100,000) 4,750,000
Net (Increase)Decrease in Loans 30,158 (2,945,985)
Purchases of Premises and Equipment (86,923) (71,494)
Proceeds from Sale of Other Real Estate Owned 267,246 650,000
------------ ------------
CASH USED BY INVESTING ACTIVITIES (4,777,051) (11,943,387)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease)Increase in Demand Deposits, NOW
Accounts and Savings Accounts (2,512,750) 7,225,121
Net Increase(Decrease) in Time Accounts 3,501,085 1,336,104
Cash Dividends Paid (151,644) (138,646)
Net Increase in Borrowed Funds 4,699,999 4,845,713
------------ ------------
CASH PROVIDED BY FINANCING ACTIVITIES 5,536,690 13,268,292
------------ ------------
Net Increase in Cash and Due from Banks 1,883,803 1,571,503
Cash and Due from Banks, Beginning of Period 8,544,955 6,131,926
------------ ------------
Cash and Due from Banks, End of Period $ 10,428,758 $ 7,703,429
============ ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash Paid During the Year for:
Interest $ 115,762 $ 19,754
Income Taxes $ 730,000 $ 181,000
NON-CASH INVESTING ACTIVITIES
Loans Transferred to Other Real Estate Owned $ 430,273 $ 0
</TABLE>
<PAGE> 9
SMITHTOWN BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
FOR SIX MONTHS ENDED
JUNE 30, 1997 JUNE 30, 1997
------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 1,656,802 $ 490,215
Adjustments to reconcile net income to net cash
provided by operating activities:
Valuation Reserve for Other Real Estate Owned 120,000 80,000
Depreciation on Premises and Equipment 210,576 235,181
Provision for Possible Loan Losses 140,000 220,000
Amortization of Transition Obligation 52,052 23,850
Loss on Sale of Bank Property 0 57,568
Increase in Interest Payable 24,997 15,264
Decrease in Miscellaneous Payables and
Accrued Expenses (56,006) (30,037)
Increase in Fees and Commissions Receivable (21,000) (45,600)
Increase in Interest Receivable (52,983) (218,498)
Decrease in Prepaid Expenses 171,617 66,090
(Increase)Decrease in Miscellaneous Receivables (42,652) 3,025
Decrease in Income Taxes Receivable 90,849 7,096
Increase in Deferred Taxes 26,649 9,909
Decrease in Accumulated Post Retirement Benefit
Obligation (31,508) (22,076)
Amortization of Investment Security Premiums and
Accretion of Discounts (93,801) (71,289)
------------ ------------
CASH PROVIDED BY OPERATING ACTIVITIES 2,195,592 829,698
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Maturities of Investment Securities
Held to Maturity 1,310,305 841,001
Proceeds from Maturities of Investment Securities
Available for Sale 8,961,224 3,721,585
Purchases of Investment Securities Available for Sale (13,433,576) (19,110,288)
Purchases of Investment Securities Held to Maturity (473,799) (714,347)
Net Increase in Federal Funds Sold (13,300,000) (100,000)
Net (Increase) Decrease in Loans 997,921 (4,478,269)
Purchases of Premises and Equipment (115,021) (91,072)
Proceeds from Sale of Bank Property 0 205,239
Proceeds from Sale of Other Real Estate Owned 1,570,054 1,070,000
------------ ------------
CASH USED BY INVESTING ACTIVITIES (14,482,892) (18,656,151)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in Demand Deposits, NOW
Accounts and Savings Accounts 4,312,125 8,541,345
Net Increase in Time Accounts 3,489,983 5,408,551
Cash Dividends Paid (290,290) (259,961)
Net Increase in Borrowed Funds 7,514,276 4,845,713
------------ ------------
CASH PROVIDED BY FINANCING ACTIVITIES 15,026,095 18,535,648
------------ ------------
Net Increase in Cash and Due from Banks 2,738,794 700,195
Cash and Due from Banks, Beginning of Period 7,689,964 7,003,234
------------ ------------
Cash and Due from Banks, End of Period $ 10,428,758 $ 7,703,429
============ ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash Paid During the Year for:
Interest $ 221,711 $ 19,754
Income Taxes $ 934,427 $ 237,963
NON-CASH INVESTING ACTIVITIES
Loans Transferred to Other Real Estate Owned $ 609,643 $ 0
</TABLE>
<PAGE> 10
Management's Discussion and Analysis of Financial Condition and Results of
Operations
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 for
the period ended December 31, 1996.
The bank's asset base, for the first six months of 1997 grew by a
substantial 9.25%. This increased level of deposits has been used to increase
the investment portfolio and has been sold in federal funds. As the funding of
loans continues throughout the year, these federal funds will be reinvested in
higher yielding loans and in further growth of the investment portfolio. The
loan portfolio remains strong with a slight decrease from December 31, 1996,
primarily in the consumer loan base. Despite this small decline, gross loans
represent 49.99% of total assets and 59.50% of deposits. Investments comprise
34.39% of total assets with the segregation in the portfolio remaining
relatively constant. Obligations of U.S. Government Securities and U.S.
Government Agency Securities represent 22.78% of the portfolio. Mortgage Backed
Securities and Municipal securities comprise 68.63% and 7.38% respectively.
Other Real Estate Owned declined from December 1996 by 21.26%. This large
decline was due to the sale of one residential property. Since March 31, 1997,
two additional smaller properties have migrated into this account, and two
additional sales have taken place. On the liability side of the Balance Sheet,
deposit growth reached 4.91% for the first six months of 1997. The largest area
of growth was seen in Money Market Accounts and Certificates of Deposit. This
growth is a result of customers taking advantage of the bank's competitive rate
structure as well as the special benefits now offered to "Preferred" depositors.
The other area of significant growth was in Demand Notes Issued to the U.S.
Treasury. The bank is a member of an investment program with the U.S. Treasury
up to a pre-defined limit in accordance with collateral arrangements. This level
of investment has been increased in order to take advantage of the spread earned
on these funds. Capital increased by 10.07% due to the level of net income and
remains very strong by all regulatory guidelines. The following table outlines
current capital ratios.
<TABLE>
<CAPTION>
June 30, 1997 December 31, 1996 Required
<S> <C> <C> <C>
Tier I 13.52 12.30 4.00
Tier II 1.25 1.25 **
Total Risk Based
Capital Ratio 14.76 13.58 8.00
Leverage Ratio 8.35 7.82 4.00
</TABLE>
Results of operations for the first six months of 1997 are historically
high as the benefits of the 1996 re-engineering have been felt. Loan income
increased by 1.67% for
<PAGE> 11
the first six months of 1997 as compared to the same period in 1996, with an
average yield of 9.61%. Investment income rose by 88.15% with a corresponding
tax equivalent yield of 6.67%. The average yield on all interest earning assets
for the six month period ended June 30, 1997 was 8.35%. Interest expense on
deposit accounts actually declined over the first half of 1997 compared to the
same period in 1996 by 1.23%, due to the tiering of Savings accounts and more
extensive tiering of Money Market Accounts. Despite this slight decline in
interest expense, the level of deposits has continued to increase. The bank's
cost of funds, including all borrowings, is 2.32%. As can be seen from the above
yields, net interest income or margin, the driving force behind earnings is very
high and currently is 6.03%. Other non-interest income increased by 19.01%
primarily due to increased service charges, fees and commissions. Other
operating expenses declined by 20.31% due to a decrease in salary and benefit
expense, lower expenses related to Other Real Estate Owned and the completion of
expenses related to the re-engineering project.
As the bank enters third quarter, optimism remains strong regarding
record high earnings for 1997. With ROAA and ROAE at 1.78 and 21.36
respectively, Bank of Smithtown has surpassed peer group averages and is now a
truly high performance community bank.
<PAGE> 12
SMITHTOWN BANCORP
INTEREST RATE SENSITIVITY REPORT
JUNE 30, 1997
<TABLE>
<CAPTION>
3 MONTHS 3 -6 6 - 12
REVOLVING OR LESS MONTHS MONTHS
<S> <C> <C> <C> <C>
ASSETS:
INVESTMENTS 3,417,285 2,117,288 9,413,741 22,659,183
FED FUNDS SOLD 13,300,000 0 0 0
LOANS:
INSTALLMENT 968,633 806,144 2,230,667 2,729,634
REAL ESTATE AND COMMERCIAL 22,606,495 2,752,491 3,426,866 7,718,212
CASH AND DUE FROM BANKS 92,858 0 0 0
FIXED ASSETS 0 0 0 0
OTHER ASSETS 0 0 0 0
RESERVE FOR POSSIBLE LOAN LOSSES 0 0 0 0
NON-ACCRUALS AND UNEARNED DISCOUNT 0 0 0 0
---------- ---------- ---------- ----------
TOTAL 40,385,271 5,675,923 15,071,274 33,107,029
---------- ---------- ---------- ----------
LIABILITIES:
SAVINGS 0 2,178,095 2,178,095 4,356,190
MONEY MARKETS 0 4,222,933 4,222,933 8,445,865
NOW 0 772,763 772,763 1,545,526
TIME less than 100 8,551 6,210,289 4,221,169 6,531,605
TIME greater than 100 0 4,615,324 1,507,233 624,319
DEMAND 0 1,042,065 1,042,065 2,084,129
REPURCHASE AGREEMENTS 0 0 0 2,800,000
OTHER BORROWED MONEY 0 9,000,000 0 0
OTHER LIABILITIES 0 0 0 0
STOCKHOLDERS' EQUITY 0 0 0 0
---------- ---------- ---------- ----------
TOTAL 8,551 28,041,469 13,944,258 26,387,634
---------- ---------- ---------- ----------
INTEREST SENSITIVITY GAP
PER PERIOD 40,376,720 (22,365,546) 1,127,016 6,719,395
GAP/TOTAL ASSETS 20.35% -11.27% 0.57% 3.39%
CUMULATIVE INTEREST
SENSITIVITY GAP 40,376,720 18,011,174 19,138,190 25,857,585
PERCENT OF CUMULATIVE GAP
TO TOTAL ASSETS 20.35% 9.08% 9.64% 13.03%
</TABLE>
<TABLE>
<CAPTION>
1-3 3-5 5+
YEARS YEARS YEARS OTHER TOTAL
---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
INVESTMENTS 10,726,152 2,685,982 16,387,083 826,800 68,233,514
FED FUNDS SOLD 0 0 0 0 13,300,000
LOANS:
INSTALLMENT 4,074,622 6,786,789 1,004,083 0 18,600,572
REAL ESTATE AND COMMERCIAL 20,551,258 14,174,374 7,767,082 301,895 79,298,673
CASH AND DUE FROM BANKS 0 0 0 10,335,900 10,428,758
FIXED ASSETS 0 0 0 2,523,306 2,523,306
OTHER ASSETS 0 0 0 6,741,647 6,741,647
RESERVE FOR POSSIBLE LOAN LOSSES 0 0 0 (1,449,253) (1,449,253)
NON-ACCRUALS AND UNEARNED DISCOUNT 0 0 0 758,812 758,812
---------- ---------- ---------- ---------- -----------
TOTAL 35,352,032 23,647,145 25,158,248 20,039,107 198,436,029
---------- ---------- ---------- ---------- -----------
LIABILITIES:
SAVINGS 17,424,759 17,424,757 0 0 43,561,896
MONEY MARKETS 16,891,730 0 0 0 33,783,461
NOW 6,182,105 6,182,106 0 0 15,455,263
TIME less than 100 4,616,624 1,463,649 0 0 23,051,887
TIME greater than 100 2,448,594 0 0 0 9,195,470
DEMAND 8,336,517 8,336,517 0 20,841,292 41,682,585
REPURCHASE AGREEMENTS 0 0 0 0 2,800,000
OTHER BORROWED MONEY 0 3,000,000 0 0 12,000,000
OTHER LIABILITIES 0 0 0 1,389,097 1,389,097
STOCKHOLDERS' EQUITY 0 0 0 15,516,370 15,516,370
---------- ---------- ---------- ---------- -----------
TOTAL 55,900,329 36,407,029 0 37,746,759 198,436,029
---------- ---------- ---------- ---------- -----------
INTEREST SENSITIVITY GAP
PER PERIOD (20,548,297) (12,759,884) 25,158,248 (17,707,652)
GAP/TOTAL ASSETS -10.36% -6.43% 12.68%
CUMULATIVE INTEREST
SENSITIVITY GAP 5,309,288 (7,450,596) 17,707,652
PERCENT OF CUMULATIVE GAP
TO TOTAL ASSETS 2.68% -3.75% 8.92%
</TABLE>
ASSUMPTIONS:
1) BALANCE SHEET FIGURES AS OF JUNE 30, 1997
2) SAVINGS AND NOW ACCOUNTS ASSUMED TO DECLINE OVER 5 YEAR PERIOD
3) MONEY MARKET ACCOUNTS ASSUMED TO DECLINE OVER 2 YEAR PERIOD
<PAGE> 13
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, 1997, and its results of operations for the three months ended June 30,
1997 and 1996 and its cash flows for the three months ended June 30, 1997 and
1996. 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, 1996.
EARNINGS PER COMMON SHARES
Earnings per share are calculated by dividing Net Income by the
weighted average number of common shares outstanding.
INVESTMENT SECURITIES
Fair Value:
<TABLE>
<S> <C>
June 30, 1997 $68,218,067
December 31, 1996 $64,285,417
</TABLE>
<PAGE> 14
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
August 13, 1997 /s/ Bradley E. Rock
--------------------------
Bradley E. Rock, President
August 13, 1997 /s/ Anita Florek
--------------------------
Anita Florek, Treasurer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 2,862,458
<INT-BEARING-DEPOSITS> 92,858
<FED-FUNDS-SOLD> 13,300,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 53,079,801
<INVESTMENTS-CARRYING> 15,153,713
<INVESTMENTS-MARKET> 68,218,067
<LOANS> 97,208,805
<ALLOWANCE> 1,449,253
<TOTAL-ASSETS> 198,436,029
<DEPOSITS> 166,730,562
<SHORT-TERM> 0
<LIABILITIES-OTHER> 16,189,097
<LONG-TERM> 0
0
0
<COMMON> 2,239,775
<OTHER-SE> 13,276,595
<TOTAL-LIABILITIES-AND-EQUITY> 198,436,029
<INTEREST-LOAN> 2,375,011
<INTEREST-INVEST> 1,210,042
<INTEREST-OTHER> 1,385
<INTEREST-TOTAL> 3,586,438
<INTEREST-DEPOSIT> 892,595
<INTEREST-EXPENSE> 1,008,358
<INTEREST-INCOME-NET> 2,578,080
<LOAN-LOSSES> 140,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,746,721
<INCOME-PRETAX> 1,398,778
<INCOME-PRE-EXTRAORDINARY> 858,523
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 858,523
<EPS-PRIMARY> 1.98
<EPS-DILUTED> 1.98
<YIELD-ACTUAL> 8.26
<LOANS-NON> 1,303,938
<LOANS-PAST> 39,254
<LOANS-TROUBLED> 0
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<ALLOWANCE-OPEN> 1,300,239
<CHARGE-OFFS> 13,164
<RECOVERIES> 22,178
<ALLOWANCE-CLOSE> 1,449,253
<ALLOWANCE-DOMESTIC> 1,449,253
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 366,163
</TABLE>
