<PAGE> 1
BRUNSWICK BANCORP AND SUBSIDIARIES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
__________
Quarter ended March 31, 1995 Commission file number 0-14403
BRUNSWICK BANCORP
(Exact Name of Registrant as Specified in its Charter)
__________
NEW JERSEY 22-2610694
(State of Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization Identification Number)
NEW BRUNSWICK, NEW JERSEY 08901
Address of principal executive offices) (Zip Code)
(908) 247-3900
--------------
(Registrant's Telephone Number Including Area Code)
NOT APPLICABLE
--------------
(Former Name, Former Address and Former Fiscal Year
if Changed Since Last Report)
COMMON STOCK, PAR VALUE $2.00 601,770 SHARES
- - ----------------------------- --------------
(Class of Stock) (Outstanding at March 31, 1995
__________
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 periods that
the registrant was required to file such report), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X NO
----- -----
<PAGE> 2
BRUNSWICK BANCORP AND SUBSIDIARIES
I N D E X
PART I - FINANCIAL INFORMATION P A G E
- - ------------------------------ -------
Item 1. Financial Statements (Unaudited):
Consolidated Balance Sheets
March 31, 1995 and December 31, 1994 1
Consolidated Statements of Income
Three Months Ended March 31, 1995, 1994 and 1993 2
Consolidated Statements of Stockholders' Equity
Three Months Ended March 31, 1995, 1994 and 1993 3
Consolidated Statements of Cash Flows
Three Months Ended March 31, 1995, 1994 and 1993 4
Notes to Consolidated Financial Statements 5-6
Item 2. Management's Discussion and Analysis of Financial
Conditions and Results of Operations 7-8
PART II - OTHER INFORMATION
- - ---------------------------
Item 6. Exhibits and Reports on Form 8-K 9
Signatures 10
<PAGE> 3
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
UNAUDITED
<TABLE>
<CAPTION>
MAR 31 DEC 31
1995 1994
---- ----
<S> <C> <C>
ASSETS:
Cash and due from banks $ 3,352,192 $ 4,072,796
Federal funds sold 18,600,000 28,800,000
Investment securities 21,818,730 21,683,507
Loans 46,548,875 46,710,693
Less allowance for credit losses 1,180,350 1,000,159
----------- ------------
Net loans 45,368,525 45,710,534
Premises and equipment 827,016 850,918
Other real estate owned 3,768,655 3,708,920
Accrued interest receivable and other assets 825,062 924,131
----------- ------------
NET ASSETS $94,560,180 $105,750,806
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Liabilities:
Deposits:
Demand deposits $26,999,553 $ 24,840,551
NOW accounts 14,164,458 19,631,040
Savings deposits 15,731,263 15,644,155
Time deposits 19,667,816 27,587,386
----------- ------------
Total deposits 76,563,090 87,703,132
Borrowed funds 93,980 532,730
Accrued expenses and other liabilities 941,222 775,921
----------- ------------
Total liabilities 77,598,292 89,011,783
----------- ------------
Stockholders' equity:
Common stock, par value $2.00:
Authorized 3,000,000 shares;
issued 601,770 shares 1,203,540 1,203,540
Surplus 2,722,854 2,722,854
Retained earnings 13,035,494 12,812,629
----------- ------------
Total stockholders' equity 16,961,888 16,739,023
----------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $94,560,180 $105,750,806
=========== ============
</TABLE>
1
<PAGE> 4
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1995, 1994 AND 1993
UNAUDITED
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $1,254,617 $1,013,451 $1,093,254
Interest on investment securities:
Taxable 343,633 216,853 179,701
Exempt from Federal income tax 3,892 4,687 5,421
Interest on Federal funds sold 249,756 197,285 198,240
Interest on deposits with bank - 516 2,008
---------- ---------- ----------
Total interest income 1,851,898 1,432,792 1,478,624
---------- ---------- ----------
INTEREST EXPENSE:
Interest on deposits 372,853 357,321 375,005
Interest on borrowed funds 5,342 3,074 3,533
---------- ---------- ----------
Total interest expense 378,195 360,395 378,538
---------- ---------- ----------
Net interest income 1,473,703 1,072,397 1,100,086
Provision for credit losses 175,000 150,000 175,000
---------- ---------- ----------
Net interest income after
provision for credit losses 1,298,703 922,397 925,086
---------- ---------- ----------
NON-INTEREST INCOME:
Service fees 165,620 149,948 161,604
Other non-interest income - - -
---------- ---------- ----------
Total non-interest income 165,620 149,948 161,604
---------- ---------- ----------
NON-INTEREST EXPENSES:
Salaries and wages 353,792 332,924 330,624
Employee benefits 79,044 75,320 50,798
Occupancy 156,928 143,808 145,884
Furniture and equipment 33,263 42,360 43,054
Other non-interest expenses 423,458 235,948 225,860
---------- ---------- ----------
Total non-interest expenses 1,046,485 830,360 796,220
---------- ---------- ----------
Income before income taxes 417,838 241,985 290,470
Income tax expense 194,973 99,293 112,600
---------- ---------- ----------
NET INCOME $ 222,865 $ 142,692 $ 177,870
========== ========== ==========
NET INCOME PER SHARE $ .37 $ .24 $ .30
========== ========== ==========
</TABLE>
2
<PAGE> 5
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
THREE MONTHS ENDED MARCH 31, 1995, 1994 AND 1993
UNAUDITED
<TABLE>
<CAPTION>
COMMON RETAINED
STOCK SURPLUS EARNINGS TOTAL
----- ------- -------- -----
<S> <C> <C> <C> <C>
Balance
Dec. 31, 1992 $1,003,252 $1,420,982 $12,640,663 $15,064,897
Net income - - 177,870 177,870
--------- --------- ---------- ----------
Balance
March 31, 1993 $1,003,252 $1,420,982 $12,818,533 $15,242,767
========= ========= ========== ==========
Balance
Dec. 31, 1993 $1,003,252 $1,420,982 $13,342,147 $15,766,381
Net income - - 142,692 142,692
--------- --------- ---------- ----------
Balance
March 31, 1994 $1,003,252 $1,420,982 $13,484,839 $15,909,073
========= ========= ========== ==========
Balance
Dec. 31, 1994 $1,203,540 $2,722,854 $12,812,629 $16,739,023
Net income - - 222,865 222,865
--------- --------- ---------- ----------
Balance
March 31, 1995 $1,203,540 $2,722,854 $13,035,494 $16,961,888
========= ========= ========== ==========
</TABLE>
3
<PAGE> 6
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1995, 1994 AND 1993
UNAUDITED
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
OPERATING ACTIVITIES:
Net income $ 222,865 $ 142,692 $ 177,870
Adjustments to reconcile net
income to cash provided by
operating activities:
Provision for credit losses 175,000 150,000 175,000
Depreciation and amortization 23,902 27,124 36,019
Net accretion of securities
discounts (175,965) (116,557) (90,006)
(Increase) decrease in interest
receivable and other assets 99,069 (195,423) 752,626
(Increase) decrease in interest
payable and other liabilities 165,301 73,252 28,542
----------- ---------- ----------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 510,172 81,088 1,080,051
----------- ---------- ----------
INVESTING ACTIVITIES:
Net (increase) decrease in
Federal funds sold 10,200,000 3,500,000 (3,800,000)
Proceeds from maturities of
investment securities - 6,000,000 -
Return of capital on invest-
ment securities 40,742 646,051 451,005
Purchase of investment securities - (3,123,750) -
Net (increase) decrease in loans 107,274 (1,368,172) 26,171
Capital acquisitions - (23,220) -
----------- ---------- ----------
NET CASH PROVIDED BY
INVESTING ACTIVITIES 10,348,016 5,630,909 (3,322,824)
----------- ---------- ----------
FINANCING ACTIVITIES:
Net increase (decrease) in
demand deposits 2,159,002 (1,300,581) (3,052,665)
Net increase (decrease) in
NOW accounts (5,466,582) (2,158,753) 4,004,683
Net increase (decrease) in
savings deposits 87,108 452,007 536,274
Net increase (decrease) in
time deposits (7,919,570) (4,779,674) 1,011,272
Net increase (decrease) in
borrowed funds (438,750) (48,596) (83,763)
------------ ---------- ----------
NET CASH USED BY FINANCING
ACTIVITIES (11,578,792) (7,835,597) 2,415,801
----------- ---------- ----------
Increase (decrease) in cash and
cash equivalents (720,604) (2,123,600) 173,028
Cash and Cash equivalents at
January 1 4,072,796 7,671,794 4,940,965
----------- ---------- ----------
Cash and Cash equivalents at
March 31 $ 3,352,192 $ 5,548,194 $ 5,113,993
=========== ========== ==========
</TABLE>
4
<PAGE> 7
BRUNSWICK BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1995
UNAUDITED
NOTE 1
BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information, and with the instructions to Form 10-Q and Rule
10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, the
information presented includes all normal and recurring adjustments considered
necessary for a fair presentation of the interim period results.
NOTE 2
INVESTMENT SECURITIES
The following is a comparative summary of the book values and estimated market
values of investment securities:
<TABLE>
<CAPTION>
MARCH 31, 1995
BOOK VALUE MARKET VALUE
---------- ------------
<S> <C> <C>
U.S. Treasury $12,671,487 $12,455,487
U.S. Government Agencies 7,823,186 8,042,715
States and political subdivisions 184,153 184,153
Other securities 1,139,904 1,175,745
---------- ----------
$21,818,730 $21,858,100
========== ==========
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1994
BOOK VALUE MARKET VALUE
---------- ------------
<S> <C> <C>
U.S. Treasury $12,464,487 $12,464,487
U.S. Government Agencies 7,885,196 7,927,047
States and political subdivisions 194,594 194,594
Other securities 1,139,230 1,161,560
---------- ----------
$21,683,507 $21,747,688
========== ==========
</TABLE>
5
<PAGE> 8
BRUNSWICK BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1995
UNAUDITED
NOTE 3
NET LOANS
The composition of net loans is as follows:
<TABLE>
<CAPTION>
MARCH 31 DECEMBER 31
1995 1994
----------- -----------
<S> <C> <C>
Commercial loans $19,692,392 $19,430,183
Real estate loans 26,172,645 26,598,757
Consumer loans 772,243 737,494
---------- ----------
46,637,280 46,766,434
Less:
Allowance for credit losses 1,180,350 1,000,159
Unearned income 88,405 55,741
---------- ----------
$45,368,525 $45,710,534
========== ==========
</TABLE>
NOTE 4
PREMISES AND EQUIPMENT
The major components of premises and equipment are as follows:
<TABLE>
<CAPTION>
MARCH 31 DECEMBER 31
1995 1994
----------- -----------
<S> <C> <C>
Land $ 300,705 $ 300,705
Buildings 562,049 562,049
Leasehold improvements 284,456 284,456
Equipment 621,244 914,501
---------- ----------
1,768,454 2,061,711
Less accumulated depreciation
and amortization 941,438 1,210,793
---------- ----------
$ 827,016 $ 850,918
========== ==========
</TABLE>
6
<PAGE> 9
BRUNSWICK BANCORP AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
MARCH 31, 1995
The most significant change in the Corporation's Balance Sheet since December
31, 1994 is the decrease in deposits of approximately $11,100,000. Most of this
decrease occurred in Public Funds, NOW and time deposit accounts.
As a result of this decrease in deposits, Federal funds sold decreased by
$10,200,000.
Also noteworthy is an increase of approximately $180,000 in the allowance for
credit losses which resulted from $175,000 in provisions and $5,000 in
recoveries. At March 31, 1995, the $1,180,000 allowance represented 2.5% of
total loans and 17% of past due and nonaccrual loans.
The results of operations for the first quarters of 1995, compared to the same
period of 1994, show an increase in income before taxes of approximately
$176,000. The main components of this increase are as follows.
Net interest income increased by approximately $401,000. The changes in net
interest income are analyzed in detail on page 8.
The provision for credit losses increased by $25,000 in order to maintain the
allowance for credit losses at, what Management believes to be, an adequate
level. However, ultimately the level of credit losses is dependent in part upon
factors outside of Management's control which may not be presently foreseeable.
Non-interest expenses increased by approximately $216,000. The three largest
components of this increase are as follows.
Salaries, wages and employee benefits increased by $25,000 because of increases
in base salaries and wages. Advertising expense increased by $65,000 because of
recent advertising campaigns. A $60,000 provision was recorded for potential
civil penalties which may arise from litigation initiated by the United States
Treasury Department. It should be mentioned that the Corporation is vigorously
defending against this litigation.
Because of conservatism and the resulting asset quality, the Corporation's
capital position continues to be one of its strong points. At March 31, 1995 and
December 31, 1994, the risk-based capital ratios were 34.4% and 31.2%, both of
which are well above the minimum regulatory guideline.
In Management's opinion, the Corporation's liquidity position is strong, based
on its high level of core deposits, the stability of its other funding sources
and the support provided by its capital base.
7
<PAGE> 10
BRUNSWICK BANCORP AND SUBSIDIARIES
ANALYSIS OF CHANGES IN NET INTEREST INCOME
(IN THOUSANDS)
<TABLE>
<CAPTION>
Increase (Decrease) Due to Changes in
Volume Rates Total
------ ----- -----
<S> <C> <C> <C>
Three Months Ended March 31, 1995
Versus
Three Months Ended March 31, 1994
Interest income on:
Loans $ 54 $ 188 $ 242
Investment securities 150 (25) 125
Federal funds sold (88) 141 53
Deposits with banks (1) - (1)
---- ---- ----
Total interest income 115 304 419
---- ---- ----
Interest expense on:
Deposits (20) 36 16
Borrowed funds - 2 2
---- ---- ----
Total interest expense (20) 38 18
---- ---- ----
Net interest income $ 135 $ 266 $ 401
==== ==== ====
</TABLE>
8
<PAGE> 11
BRUNSWICK BANCORP AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K
The Corporation filed no Form 8-K during the three month period ended March 31,
1995.
9
<PAGE> 12
BRUNSWICK BANCORP AND SUBSIDIARIES
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 duly authorized.
BRUNSWICK BANCORP AND SUBSIDIARIES
April 14, 1995 /s/ Carmen J. Gumina
- - --------------------- ----------------------------------
Date Carmen J. Gumina
President
April 14, 1995 /s/ Thomas Fornale
- - --------------------- ----------------------------------
Date Thomas Fornale
Treasurer
10
<PAGE> 13
EXHIBIT INDEX
-------------
Exhibit No. Description
----------- ------------
Ex-27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 3,352,192
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 18,600,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 21,818,730
<INVESTMENTS-MARKET> 21,858,100
<LOANS> 46,548,875
<ALLOWANCE> 1,180,350
<TOTAL-ASSETS> 94,560,180
<DEPOSITS> 76,563,090
<SHORT-TERM> 93,980
<LIABILITIES-OTHER> 941,222
<LONG-TERM> 0
<COMMON> 1,203,540
0
0
<OTHER-SE> 15,758,348
<TOTAL-LIABILITIES-AND-EQUITY> 94,560,180
<INTEREST-LOAN> 1,254,617
<INTEREST-INVEST> 347,525
<INTEREST-OTHER> 249,756
<INTEREST-TOTAL> 1,851,898
<INTEREST-DEPOSIT> 372,853
<INTEREST-EXPENSE> 378,195
<INTEREST-INCOME-NET> 1,473,703
<LOAN-LOSSES> 175,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,046,485
<INCOME-PRETAX> 417,838
<INCOME-PRE-EXTRAORDINARY> 222,865
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 222,865
<EPS-PRIMARY> .37
<EPS-DILUTED> .37
<YIELD-ACTUAL> 1.96
<LOANS-NON> 2,319,164
<LOANS-PAST> 411,069
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,000,159
<CHARGE-OFFS> 0
<RECOVERIES> 5,191
<ALLOWANCE-CLOSE> 1,180,350
<ALLOWANCE-DOMESTIC> 1,180,350
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
