<PAGE> 3
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------
FORM 10-Q
------------------
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 2000
------------------
Commission file number 2-91511
SMITHTOWN BANCORP
Incorporated pursuant to the Laws of New York State
Internal Revenue Service - Employer Identification No. 11-2695037
One East Main Street, Smithtown, New York 11787-2801
631-360-9300
------------------
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: 806,168 Shares of Common stock
($2.50 Par Value) Outstanding as of March 31, 2000.
<PAGE> 4
SMITHTOWN BANCORP
INDEX
Part I - FINANCIAL INFORMATION PAGE
----
Item 1. Financial Statements
Consolidated Balance Sheets
March 31, 2000 and December 31, 1999 .................... 5
Consolidated Statements of Income
Three months ended March 31, 2000 and 1999 .............. 6
Consolidated Statements of Changes in Stockholders' Equity
Three months ended March 31, 2000 and 1999 .............. 7
Consolidated Statements of Comprehensive Income
Three months ended March 31, 2000 and 1999 .............. 8
Consolidated Statements of Cash Flows
Three months ended March 31, 2000 and 1999 .............. 9
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations ............................... 10 - 12
Item 3. Notes to Consolidated Financial Statements ............... 13
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> 5
<TABLE>
<CAPTION>
SMITHTOWN BANCORP
CONSOLIDATED BALANCE SHEETS
(unaudited)
As of
March 31, 2000 December 31, 1999
____________________________________________________________________________________________________________________________________
<S> <C> <C>
Assets
Cash and Due from Banks ............................................................ $ 9,288,570 $ 10,195,378
Investment Securities:
Investment Securities Held to Maturity
Mortgage - Backed Securities .................................................. 2,577,264 2,829,437
Obligations of State and Political Subdivisions ............................... 5,078,868 5,141,551
------------- --------------
(Estimated Fair Value $7,628,742 and $7,969,754 and ......................... 7,656,132 7,970,988
at 3/31/00 and 12/31/99) ------------- --------------
Investment Securities Available for Sale
Obligations of U.S. Government ................................................ -- 3,012,570
Obligations of U.S. Government Agencies ....................................... 19,681,851 17,331,246
Mortgage - Backed Securities .................................................. 18,266,096 19,612,906
Oligations of State and Political Subdivisions ................................ 12,902,780 11,152,866
Other Securities .............................................................. 3,600,700 3,580,700
------------- -------------
Total (At Estimated Fair Value) ............................................. 54,451,427 54,690,288
------------- -------------
Total Investment Securities ................................................... 62,107,559 62,661,276
(Estimated Fair Value $ 62,080,169 and $62,660,043 at ------------- -------------
3/31/00 and 12/31/99)
Federal Funds Sold ................................................................. 19,000,000 10,350,000
Loans .............................................................................. 188,171,892 176,819,745
Less: Unearned Discount ....................................................... 634,243 619,728
Reserve for Possible Loan Losses ..................................... 2,210,459 2,251,668
------------- -------------
Loans, Net ......................................................................... 185,327,190 173,948,349
------------- -------------
Bank Premises and Equipment ........................................................ 3,117,217 3,207,348
Other Assets
Other Real Estate Owned ....................................................... 855,354 855,354
Other ......................................................................... 9,997,834 4,863,738
------------- --------------
Total Assets ....................................................................... $ 289,693,724 $ 266,081,443
============= =============
Liabilities
Deposits:
Demand ........................................................................ $ 52,960,135 $ 50,008,452
Money Market .................................................................. 62,055,752 53,667,605
NOW ........................................................................... 16,766,425 15,968,937
Savings ....................................................................... 35,691,822 35,594,368
Time Deposits ................................................................. 65,694,730 52,566,899
------------- -------------
Total ....................................................................... 233,168,864 207,806,261
Dividend Payable ................................................................... 193,480 177,357
Other Borrowed Funds ............................................................... 35,000,000 38,000,000
Other Liabilities .................................................................. 1,810,637 1,407,810
------------- -------------
Total ......................................................................... 270,172,981 247,391,428
------------- -------------
Stockholders' Equity
Common Stock - $2.50 Par Value, 3,000,000 Shares .................................. 2,239,775 2,239,775
Authorized; 895,910 Shares Issued
Accumulated Other Comprehensive Income ............................................. (1,170,053) (1,069,376)
Surplus ............................................................................ 1,993,574 1,993,574
Retained Earnings .................................................................. 20,246,400 19,314,995
------------- --------------
Total ......................................................................... 23,309,696 22,478,968
Less: Treasury Stock (89,742 and 82,283 shares at cost) ....................... (3,788,953) (3,788,953)
------------- --------------
Total ......................................................................... 19,520,743 18,690,015
------------- --------------
Total Liabilities and Capital ...................................................... $ 289,693,724 $ 266,081,443
============= =============
</TABLE>
<PAGE> 6
<TABLE>
<CAPTION>
SMITHTOWN BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
For Three Months Ended
March 31, 2000 March 31, 1999
____________________________________________________________________________________________________________________________________
<S> <C> <C>
Interest Income
Interest and Fees on Loans ........................................................ $ 3,971,796 $ 2,717,413
Interest and Dividends on:
Obligations of U.S. Government ............................................... 23,602 90,146
Obligations of U.S. Government Agencies ...................................... 321,636 258,700
Mortgage - Backed Securities ................................................. 344,973 389,782
Obligations of State & Political Subdivisions ................................ 202,758 216,032
Other Securities ............................................................. 59,364 14,752
Interest on Federal Funds Sold .................................................... 188,158 106,011
Interest on Balances Due From Depository Institutions ............................. 5,912 562
----------- -----------
Total Interest Income ........................................................ 5,118,199 3,793,398
----------- -----------
Interest Expense
Money Market Accounts ............................................................. 571,276 345,412
Savings ........................................................................... 131,219 137,075
Time Deposits $100,000 and Over .................................................. 249,587 134,087
Other Time Deposits ............................................................... 540,158 267,375
Interest on Demand Notes Issued by U. S. Treasury ................................. -- 38,355
Interest on Other Borrowed Money .................................................. 563,021 94,133
----------- -----------
Total Interest Expense ....................................................... 2,055,261 1,016,437
----------- -----------
Net Interest Income ............................................................... 3,062,938 2,776,961
Provision for Possible Loan Losses ................................................ 120,000 90,000
----------- -----------
Net Interest Income After Provision for Possible
Loan Losses ..................................................................... 2,942,938 2,686,961
----------- -----------
Other Non - Interest Income
Trust Department Income ........................................................... 175,649 91,861
Service Charges on Deposit Accounts ............................................... 397,293 370,481
Other Income ...................................................................... 322,168 354,158
Net Securities Transactions ....................................................... (1,359) --
----------- -----------
Total Other Non - Interest Income ............................................ 893,751 816,500
----------- -----------
Other Operating Expenses
Salaries .......................................................................... 976,092 852,114
Pension and Other Employee Benefits ............................................... 196,011 184,672
Net Occupancy Expense of Bank Premises ............................................ 244,208 216,019
Furniture and Equipment Expense ................................................... 192,503 184,621
Miscellaneous Operating Expense ................................................... 442,829 446,169
----------- -----------
Total Other Operating Expense ................................................ 2,051,643 1,883,595
----------- -----------
Income Before Income Taxes ........................................................ 1,785,046 1,619,866
Provision for Income Taxes ........................................................ 660,161 586,757
----------- -----------
Net Income ................................................................... $ 1,124,885 $ 1,033,109
=========== ===========
Earnings Per Share
Net Income ....................................................................... $ 1.40 $ 1.26
Cash Dividends Declared .......................................................... $ 0.24 $ 0.22
Weighted Average Shares Outstanding 806,168 817,884
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
SMITHTOWN BANCORP
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(unaudited)
Cost of Accumulated
Common Stock Common Other Total
Shares Capital Retained Stock in Comprehensive Stockholders'
Outstanding Amount Surplus Earnings Treasury Income (Loss) Equity
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at 1/1/99 ............. 822,765 $ 2,239,775 $ 1,993,574 $ 15,770,822 $(2,841,437) $ 249,455 $17,412,189
Comprehensive Income:
Net Income ................. 1,033,109 1,033,109
Other Comprehensive Income,
Net of Tax ............... (179,618) (179,618)
Total Comprehensive Income 853,491
Cash Dividends Declared ... (177,594) (177,594)
Treasury Stock Purchases ...... (9,138) (506,748) (506,748)
------------------------------------------------------------------------------------------------
Balance at 3/31/99 ............ 813,627 $ 2,239,775 $ 1,993,574 $ 16,626,337 $(3,348,185) $ 69,837 $17,581,338
================================================================================================
Balance at 1/1/00 ............ 806,168 $ 2,239,775 $ 1,993,574 $ 19,314,995 $(3,788,953) $ (1,069,376) $18,690,015
Comprehensive Income:
Net Income ................ 1,124,885 1,124,885
Other Comprehensive Income,
Net of Tax (100,677) (100,677)
Total Comprehensive Income 1,024,208
Cash Dividends Declared ... (193,480) (193,480)
Treasury Stock Purchases -
------------------------------------------------------------------------------------------------
Balance at 3/31/00 806,168 $ 2,239,775 $ 1,993,574 $ 20,246,400 $(3,788,953) $ (1,170,053) $19,520,743
================================================================================================
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
SMITHTOWN BANCORP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
For Three Months Ended March 31,
2000 1999
____________________________________________________________________________________________________________________________________
<S> <C> <C>
Net Income ............................................................................... $ 1,124,885 $ 1,033,109
----------- -----------
Other Comprehensive Income, Before Tax:
Unrealized Holding Gain(Loss) Arising During the Period ............................. (173,581) (309,686)
Less: Reclassification Adjustment for Gains Included in Net Income ................. -- --
----------- ------------
(173,581) (309,686)
Income Tax Related to Other Comprehensive Income .................................... 72,904 130,068
----------- -----------
Other Comprehensive Income, Net of Tax .............................................. (100,677) (179,618)
----------- ------------
Total Comprehensive Income ....................................................... $ 1,024,208 $ 853,491
=========== ============
</TABLE>
<PAGE> 9
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
For Three Months Ended March 31,
2000 1999
____________________________________________________________________________________________________________________________________
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income ............................................................................... $ 1,124,885 $ 1,033,109
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation on Premises and Equipment ............................................... 129,317 124,256
Provision for Possible Loan Losses ................................................... 120,000 90,000
Loss on Sale of Investment Securities ................................................ 1,360 --
Amortization of Transition Obligation ................................................ 9,000 13,881
Gain on Other Real Estate Owned ...................................................... -- (29,281)
Increase (Decrease) in Interest Payable .............................................. 164,867 (1,991)
Decrease in Miscellaneous Payables and Accrued Expenses .............................. (67,724) (190,120)
Increase in Fees and Commissions Receivable .......................................... -- (4,800)
(Increase) Decrease in Interest Receivable ........................................... 22,100 (267,606)
(Increase) Decrease in Prepaid Expenses .............................................. (492,483) 19,747
Decrease in Miscellaneous Receivable ................................................. 269,732 117,841
Decrease in Income Taxes Receivable .................................................. 474,452 482,365
(Increase) Decrease in Deferred Taxes ................................................ 17,499 (44,198)
Decrease in Accumulated Post Retirement Benefit Obligation ........................... (10,608) (11,418)
Amortization of Investment Security Premiums and Accretion of Discounts .............. (1,557) 46,742
Increase in Cash Surrender Value of Officer's Life Insurance Policies ................ (45,200) --
----------- ------------
Cash Provided by Operating Activities ................................................ $ 1,715,640 $ 1,378,527
----------- ------------
Proceeds from Disposition of Mortgage-Backed Securities:
Held to Maturity ................................................................... 252,173 677,334
Available for Sale ................................................................. 1,258,017 2,434,945
Proceeds from Disposition of Other Investment Securities:
Held to Maturity ................................................................... 4,084,350 109,846
Available for Sale ................................................................. 60,000 138,467
Purchases of Mortgage-Backed Securities
Available for Sale ................................................................. -- (10,215,625)
Purchases of Other Investment Securities:
Available for Sale ................................................................. (5,274,207) (2,000,000)
Purchase of Officer's Life Insurance Policies ........................................ (5,000,000) --
Net (Increase) Decrease in Federal Funds Sold ........................................ (8,650,000) 12,200,000
Net (Increase) Decrease in Loans ..................................................... (11,498,841) (12,219,732)
Purchases of Equipment ............................................................... (39,186) (45,401)
Proceeds from Sale of Other Real Estate Owned ........................................ -- 246,423
Purchase of Treasury Stock ........................................................... -- (506,749)
------------ ------------
Cash Used by Investing Activities .................................................... $ (24,807,694) $(9,180,492)
------------ ------------
Net Increase in Demand Deposits, NOW Accounts
and Savings Accounts ............................................................... 12,234,773 2,942,485
Net Increase (Decrease) in Time Accounts ............................................. 13,127,830 (1,505,610)
Cash Dividends Paid .................................................................. (177,357) (163,850)
Net Increase (Decrease) in Borrowed Funds ............................................ (3,000,000) 7,227,520
------------ ------------
Cash Provided by Financing Activities ................................................ $ 22,185,246 $ 8,500,545
------------ ------------
Net Increase (Decrease) in Cash and Due from Banks ................................... (906,808) 698,580
Cash and Due from Banks, Beginning of Period ......................................... 10,195,378 7,124,365
------------ ------------
Cash and Due from Banks, End of Period ............................................... $ 9,288,570 $ 7,822,945
============ ============
Cash Paid During Period for:
Interest ............................................................................. 1,890,395 132,487
Income Taxes ......................................................................... 168,210 148,590
Unrealized Loss on Securities Available for Sale ......................................... 173,581 309,686
</TABLE>
<PAGE> 10
Management's Discussion and Analysis of Financial Condition and Results of
Operation
Bank of Smithtown's Balance Sheet remained very strong during first quarter of
2000. Total assets increased by 8.87% over December 1999, from $266,081,443 to
$289,693,724. This increase is due primarily to the 6.42% increase in the loan
portfolio. Composition of the loan portfolio remained stable, with real estate
loans and commercial loans comprising 80.21% and 17.76% of total loans. Loans
represent 64.74% of total assets. Loan yield for first quarter 2000 was 9.18%
compared to 9.36% during 1999. The investment portfolio remained nearly
constant, comprising 21.44% of total assets. Allocation of securities within the
portfolio also was nearly identical, with the only change being the maturity of
a treasury note replaced with mortgage-backed and municipal securities. Yield on
the investment portfolio during first quarter was 6.84%, compared to 6.58% for
the year ended December 1999. Other Real Estate Owned remained level at
$855,354. Other assets increased from $4,863,738 to $9,997,834, an increase of
105.56%. During the first quarter of 2000, the Bank purchased life insurance
policies for key executives. The policies represent a deferred retirement
benefit to these executives, and provide additional yield to the bank over
federal funds, which were used to purchase the policies. The liability side of
the Balance Sheet underwent some significant changes from December 1999. Total
deposits increased by 12.20% from $207,806,261 to $233,168,864. The majority of
the increase is evidenced in the money market balances, which increased by
15.63% and time deposits which grew by 24.97%. The Premier Money Market Account,
introduced during fourth quarter 1999, paying the 90 day treasury bill yield, is
responsible for the growth in money markets. The increase in time deposits is
primarily due to CD promotions run during the first quarter. The Bank's cost of
funds for the first quarter of 2000 was 4.04% as compared to 3.16% during 1999.
Net interest margin decreased from 5.96% to 5.24% for the same period, as a
result of higher paying deposit accounts. Management is aware of this decrease
and continues to monitor and control it carefully. Borrowings from the Federal
Home Loan Bank decreased by $3,000,000 during the first quarter of 2000. The
increased level of deposits provided the payoff funds for a $3,000,000 advance.
The 4.45% increase in Stockholder's Equity was the result of $1,124,885 in net
income and $193,480 in dividends. Capital remains strong as evidenced by the
following ratios:
March 31, 2000 December 31, 1999 Required
Tier I 10.44 10.96 6.00
Tier II 1.25 1.25 **
Total Risk Based
Capital 11.56 12.20 10.00
Total I Leverage 7.44 8.33 5.00
Net income for the quarter ended March 31, 2000 was $1,124,885, compared to
$1,033,109 for the same period in 1999, representing an 8.88% increase. These
increased earnings are primarily attributable to interest and fees on loans, and
increased non-interest income. Loan income was 46.16% higher during first
quarter 2000 than during the same period in 1999, due to the increased volume.
Non-interest income was 9.46% higher this year due to increased trust department
income and service charge fees on deposit accounts. Other operating expenses
increased by 8.92% due in a large part to higher salary expenses. Earnings per
share for the first quarter of 2000 were $1.40 as compared to $1.26 for the same
period in 1999. This represents an 11.11% increase due to increased net income
and a reduced number of shares outstanding.
First quarter results continue to mirror the bank's consistenly upward earnings
trend, and remain the highest in the Bank's 90 years of operation. Asset quality
remains high and capital ratios are strong. Management fully expects these
trends to continue throughout the balance of the year.
<PAGE> 11
<TABLE>
<CAPTION>
SMITHTOWN BANCORP
INTEREST RATE SENSITIVITY GAP REPORT
MARCH 31, 2000
TOTAL
3 MONTHS 3-6 6-12 SENITIVE
REVOLVING OR LESS MONTHS MONTHS WITHIN 1 YR
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
INVESTMENTS $ 6,280,858 $11,606,314 $ 9,588,543 $ 2,031,191 $ 29,506,906
FEDERAL FUNDS SOLD 19,000,000 0 0 0 19,000,000
LOANS:
INSTALLMENT 42,478 824,296 616,607 5,991,012 7,474,393
REAL ESTATE AND COMMERCIAL 36,487,083 4,650,513 4,811,219 5,279,208 51,228,023
CASH AND DUE FROM BANKS 537,285 0 0 0 537,285
FIXED ASSETS 0 0 0 0 0
OTHER ASSETS 0 0 0 0 0
RESERVE FOR POSSIBLE LOAN LOSSES 0 0 0 0 0
NON-ACCRUALS 0 0 0 0 0
UNEARNED DISCOUNT 0 0 0 0 0
------------------------------------------------------------------------------------------
TOTAL $62,347,704 $17,081,123 $15,016,369 $13,301,411 $107,746,607
------------------------------------------------------------------------------------------
SMITHTOWN BANCORP
INTEREST RATE SENSITIVITY GAP REPORT (continue)
MARCH 31, 2000
1-3 3-5 5+ OTHER TOTAL
YEARS YEARS YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENTS $ 5,136,472 $ 6,151,550 $17,711,931 $ 3,600,700 $ 62,107,559
FEDERAL FUNDS SOLD 0 0 0 0 19,000,000
LOANS:
INSTALLMENT 3,242,947 3,726,704 7,801,280 0 22,245,324
REAL ESTATE AND COMMERCIAL 19,171,375 48,225,431 45,963,200 128,458 164,716,487
CASH AND DUE FROM BANKS 0 0 0 8,751,285 9,288,570
FIXED ASSETS 0 0 0 3,117,217 3,117,217
OTHER ASSETS 0 0 0 10,853,188 10,853,188
RESERVE FOR POSSIBLE LOAN LOSSES 0 0 0 (2,210,459) (2,210,459)
NON-ACCRUALS 0 0 0 1,210,081 1,210,081
UNEARNED DISCOUNT 0 0 0 (634,243) (634,243)
------------------------------------------------------------------------------------------
TOTAL $27,550,794 $58,103,685 $71,476,411 $24,816,227 $289,693,724
------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 12
<TABLE>
<CAPTION>
SMITHTOWN BANCORP
INTEREST RATE SENSITIVITY GAP REPORT
MARCH 31, 2000
TOTAL
3 MONTHS 3-6 6-12 SENITIVE
REVOLVING OR LESS MONTHS MONTHS WITHIN 1 YR
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES:
SAVINGS $ 0 $ 1,784,591 $ 1,784,591 $ 3,569,182 $ 7,138,364
MONEY MARKETS 0 7,756,969 7,756,969 15,513,938 31,027,876
NOW 0 838,321 838,321 1,676,643 3,353,285
TIME DEPOSITS OF $100,000 + 0 6,193,268 615,275 7,246,733 14,055,276
OTHER TIME DEPOSITS 0 6,640,143 4,911,890 18,084,851 29,636,884
DEMAND 0 1,324,003 1,324,003 2,648,007 5,296,013
OTHER BORROWED MONEY 0 10,000,000 10,000,000 0 20,000,000
OTHER LIABILITIES 0 0 0 0 0
STOCKHOLDERS' EQUITY 0 0 0 0 0
------------------------------------------------------------------------------------------
TOTAL $ 0 $34,537,295 $27,231,049 $48,739,354 $ 110,507,698
------------------------------------------------------------------------------------------
SMITHTOWN BANCORP
INTEREST RATE SENSITIVITY GAP REPORT (continue)
MARCH 31, 2000
1-3 3-5 5+ OTHER TOTAL
YEARS YEARS YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIABILITIES:
SAVINGS $ 14,276,728 $14,276,730 $ 0 $ 0 $ 35,691,822
MONEY MARKETS 31,027,876 0 0 0 62,055,752
NOW 6,706,570 6,706,570 0 0 16,766,425
TIME DEPOSITS OF $100,000 + 1,925,240 4,542,255 0 0 20,522,771
OTHER TIME DEPOSITS 5,814,471 9,720,604 0 0 45,171,959
DEMAND 10,592,027 10,592,027 0 26,480,068 52,960,135
OTHER BORROWED MONEY 0 15,000,000 0 0 35,000,000
OTHER LIABILITIES 0 0 0 2,004,117 2,004,117
STOCKHOLDERS' EQUITY 0 0 0 19,520,743 19,520,743
------------------------------------------------------------------------------------------
TOTAL $ 70,342,912 $60,838,186 $ 0 $48,004,928 $ 289,693,724
------------------------------------------------------------------------------------------
SMITHTOWN BANCORP
INTEREST RATE SENSITIVITY GAP REPORT
MARCH 31, 2000
TOTAL
3 MONTHS 3-6 6-12 SENITIVE
REVOLVING OR LESS MONTHS MONTHS WITHIN 1 YR
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INTEREST SENSITIVITY GAP
PER PERIOD 62,347,704 (17,456,172) (12,214,680) (35,437,943) (2,761,091)
GAP/TOTAL ASSETS 21.52% -6.03% -4.22% -12.23% -0.95%
CUMULATIVE INTEREST
SENSITIVITY GAP 62,347,704 44,891,532 32,676,852 (2,761,091) (2,761,091)
% OF CUMULATIVE GAP
TO TOTAL ASSETS 21.52% 15.50% 11.28% -0.95% -0.95%
SMITHTOWN BANCORP
INTEREST RATE SENSITIVITY GAP REPORT (continue)
MARCH 31, 2000
1-3 3-5 5+ OTHER TOTAL
YEARS YEARS YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INTEREST SENSITIVITY GAP
PER PERIOD (42,792,118) (2,734,501) 71,476,411 (23,188,701)
GAP/TOTAL ASSETS -14.77% -0.94% 24.67%
CUMULATIVE INTEREST
SENSITIVITY GAP (45,553,209) (48,287,710) 23,188,701
% OF CUMULATIVE GAP
TO TOATAL ASSETS -15.72 -16.67% 8.00%
ASSUMPTIONS:
1)BALANCE SHEET FIGURES AS OF MARCH 31, 2000
2)SAVINGS AND NOW ACCOUNTS ASSUMED TO DECLINE OVER 5 YEAR PERIOD
3)MONEY MARKET ACCOUNTS ASSUMED TO DELCINE OVER 2 YEAR PERIOD
</TABLE>
<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 March 31,
2000, and its results of operations for the three months ended March 31, 2000
and 1999 and its cash flows for the three months ended March 31, 2000 and 1999.
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, 1999.
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:
March 31, 2000 $62,080,169
December 31, 1999 $62,660,043
<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
May 11, 2000
/s/ Bradley E. Rock
___________________________
Bradley E. Rock, President
May 11, 2000
/s/ Anita M. Florek
__________________________
Anita M. Florek, Treasurer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-2000
<PERIOD-END> Mar-31-2000
<CASH> 3,749,431
<INT-BEARING-DEPOSITS> 537,285
<FED-FUNDS-SOLD> 19,000,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 54,451,426
<INVESTMENTS-CARRYING> 7,656,133
<INVESTMENTS-MARKET> 62,080,169
<LOANS> 188,171,892
<ALLOWANCE> 2,210,459
<TOTAL-ASSETS> 289,693,724
<DEPOSITS> 233,168,864
<SHORT-TERM> 20,000,000
<LIABILITIES-OTHER> 1,810,637
<LONG-TERM> 15,000,000
0
0
<COMMON> 2,239,775
<OTHER-SE> 17,280,968
<TOTAL-LIABILITIES-AND-EQUITY> 289,693,724
<INTEREST-LOAN> 3,971,796
<INTEREST-INVEST> 952,333
<INTEREST-OTHER> 194,070
<INTEREST-TOTAL> 5,118,199
<INTEREST-DEPOSIT> 1,492,240
<INTEREST-EXPENSE> 2,055,261
<INTEREST-INCOME-NET> 3,062,938
<LOAN-LOSSES> 120
<SECURITIES-GAINS> (1)
<EXPENSE-OTHER> 2,051,643
<INCOME-PRETAX> 1,785,046
<INCOME-PRE-EXTRAORDINARY> 1,785,046
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,124,885
<EPS-BASIC> 1.40
<EPS-DILUTED> 1.40
<YIELD-ACTUAL> 8.45
<LOANS-NON> 1,210,080
<LOANS-PAST> 374,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,251,668
<CHARGE-OFFS> 166,559
<RECOVERIES> 5,350
<ALLOWANCE-CLOSE> 2,210,459
<ALLOWANCE-DOMESTIC> 2,210,459
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 390,899
</TABLE>
