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Previous: BEN & JERRYS HOMEMADE INC, 10-Q, 1995-08-07 |
Next: CIRCUIT SYSTEMS INC, DEF 14A, 1995-08-07 |
<PAGE> 1
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 June 30, 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) 247-5800
(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 June 30, 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
<TABLE>
<CAPTION>
P A G E
-------
<S> <C>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited):
Consolidated Balance Sheets
June 30, 1995 and December 31, 1994 1
Consolidated Statements of Income
Six Months Ended June 30, 1995, 1994 and 1993 2
Consolidated Statements of Income
Quarters Ended June 30, 1995, 1994 and 1993 3
Consolidated Statements of Stockholders' Equity
Six Months Ended June 30, 1995, 1994 and 1993 4
Consolidated Statements of Cash Flows
Six Months Ended June 30, 1995, 1994 and 1993 5
Notes to Consolidated Financial Statements 6-7
Item 2. Management's Discussion and Analysis of Financial
Conditions and Results of Operations 8-9
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 10
Signatures 11
</TABLE>
<PAGE> 3
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
UNAUDITED
<TABLE>
<CAPTION>
JUNE 30 DEC 31
1995 1994
---- ----
<S> <C> <C>
ASSETS:
Cash and due from banks $ 4,189,068 $ 4,072,796
Federal funds sold 14,200,000 28,800,000
Investment securities 21,942,062 21,683,507
Loans 44,976,794 46,710,693
Less allowance for credit losses 1,520,976 1,000,159
----------- ------------
Net loans 43,455,818 45,710,534
Premises and equipment 803,109 850,918
Other real estate owned 3,574,928 3,708,920
Accrued interest receivable and other assets 974,226 924,131
----------- ------------
NET ASSETS $89,139,211 $105,750,806
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Liabilities:
Deposits:
Demand deposits $24,447,068 $ 24,840,551
NOW accounts 12,573,522 19,631,040
Savings deposits 15,394,401 15,644,155
Time deposits 18,126,151 27,587,386
----------- ------------
Total deposits 70,541,142 87,703,132
Borrowed funds 519,837 532,730
Accrued expenses and other liabilities 967,813 775,921
----------- ------------
Total liabilities 72,028,792 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 13,184,025 12,812,629
----------- ------------
Total stockholders' equity 17,110,419 16,739,023
----------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $89,139,211 $105,750,806
=========== ============
</TABLE>
1
<PAGE> 4
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
SIX MONTHS ENDED JUNE 30, 1995, 1994 AND 1993
UNAUDITED
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $2,435,429 $2,142,966 $2,068,804
Interest on investment securities:
Taxable 686,494 410,162 385,636
Exempt from Federal income tax 7,575 9,181 10,665
Interest on Federal funds sold 531,415 433,509 424,505
Interest on deposits with banks - 516 5,136
---------- ---------- ----------
Total interest income 3,660,913 2,996,334 2,894,746
---------- ---------- ----------
INTEREST EXPENSE:
Interest on deposits 847,509 679,455 771,818
Interest on borrowed funds 10,821 6,937 6,474
---------- ---------- ----------
Total interest expense 858,330 686,392 778,292
---------- ---------- ----------
Net interest income 2,802,583 2,309,942 2,116,454
Provision for credit losses 300,000 315,000 265,000
---------- ---------- ----------
Net interest income after
provision for credit losses 2,502,583 1,994,942 1,851,454
---------- ---------- ----------
NON-INTEREST INCOME:
Service fees 440,264 339,572 358,480
Other non-interest income 1,500 157,979 -
---------- ---------- ----------
Total non-interest income 441,764 497,551 358,480
---------- ---------- ----------
NON-INTEREST EXPENSES:
Salaries and wages 748,393 675,761 679,097
Employee benefits 156,454 144,185 98,974
Occupancy 299,489 298,601 291,746
Furniture and equipment 78,418 88,117 91,630
Other non-interest expenses 899,441 705,249 509,576
---------- ---------- ----------
Total non-interest expenses 2,182,195 1,911,913 1,671,023
---------- ---------- ----------
Income before income taxes 762,152 580,580 538,911
Income tax expense 390,756 215,944 200,313
---------- ---------- ----------
NET INCOME $ 371,396 $ 364,636 $ 338,598
========== ========== ==========
NET INCOME PER SHARE $ .62 $ .61 $ .56
========== ========== ==========
</TABLE>
2
<PAGE> 5
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
QUARTERS ENDED JUNE 30, 1995, 1994 AND 1993
UNAUDITED
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $1,180,812 $1,129,515 $ 975,550
Interest on investment securities:
Taxable 342,861 193,309 205,935
Exempt from Federal income tax 3,683 4,494 5,244
Interest on Federal funds sold 281,659 236,224 226,265
Interest on deposits with banks - - 3,128
---------- ---------- ----------
Total interest income 1,809,015 1,563,542 1,416,122
---------- ---------- ----------
INTEREST EXPENSE:
Interest on deposits 474,656 322,134 396,813
Interest on borrowed funds 5,479 3,863 2,941
---------- ---------- ----------
Total interest expense 480,135 325,997 399,754
---------- ---------- ----------
Net interest income 1,328,880 1,237,545 1,016,368
Provision for credit losses 125,000 165,000 90,000
---------- ---------- ----------
Net interest income after
provision for credit losses 1,203,880 1,072,545 926,368
---------- ---------- ----------
NON-INTEREST INCOME:
Service fees 274,644 189,624 196,876
Other non-interest income 1,500 157,979 -
---------- ---------- ----------
Total non-interest income 276,144 347,603 196,876
---------- ---------- ----------
NON-INTEREST EXPENSES:
Salaries and wages 394,601 342,837 348,473
Employee benefits 77,410 68,865 48,176
Occupancy 142,561 154,793 145,862
Furniture and equipment 45,155 45,757 48,576
Other non-interest expenses 475,983 469,301 283,716
---------- ---------- ----------
Total non-interest expenses 1,135,710 1,081,553 874,803
---------- ---------- ----------
Income before income taxes 344,314 338,595 248,441
Income tax expense 195,783 116,651 87,713
---------- ---------- ----------
NET INCOME $ 148,531 $ 221,944 $ 160,728
========== ========== ==========
NET INCOME PER SHARE $ .25 $ .37 $ .27
========== ========== ==========
</TABLE>
3
<PAGE> 6
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
SIX MONTHS ENDED JUNE 30, 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 - - 338,598 338,598
---------- ---------- ----------- -----------
Balance
June 30, 1993 $1,003,252 $1,420,982 $12,979,261 $15,403,495
========== ========== =========== ===========
Balance
Dec. 31, 1993 $1,003,252 $1,420,982 $13,342,147 $15,766,381
Net income - - 364,636 364,636
---------- ---------- ----------- -----------
Balance
June 30, 1994 $1,003,252 $1,420,982 $13,706,783 $16,131,017
========== ========== =========== ===========
Balance
Dec. 31, 1994 $1,203,540 $2,722,854 $12,812,629 $16,739,023
Net income - - 371,396 371,396
---------- ---------- ----------- -----------
Balance
June 30, 1995 $1,203,540 $2,722,854 $13,184,025 $17,110,419
========== ========== =========== ===========
</TABLE>
4
<PAGE> 7
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1995, 1994 AND 1993
UNAUDITED
<TABLE>
<CAPTION>
1995 1994 1993
----- ----- ----
<S> <C> <C> <C>
OPERATING ACTIVITIES:
Net income $ 371,396 $ 364,636 $ 338,598
Adjustments to reconcile net
income to cash provided by
operating activities:
Provision for credit losses 300,000 315,000 265,000
Depreciation and amortization 47,809 54,250 72,043
Net accretion of securities
discounts (351,586) (150,565) (206,290)
(Increase) decrease in interest
receivable and other assets 83,897 (240,236) 114,783
Increase in interest
payable and other liabilities 191,892 145,863 90,238
----------- ----------- ----------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 643,408 488,948 674,372
----------- ----------- ----------
INVESTING ACTIVITIES:
Net decrease in
Federal funds sold 14,600,000 10,200,000 4,300,000
Proceeds from maturities of
investment securities - 10,000,000 -
Return of capital on invest-
ment securities 93,031 844,956 970,214
Purchase of investment securities - (7,362,500) -
Net (increase) decrease in loans 1,954,716 (2,150,508) (495,911)
Capital acquisitions - (23,220) -
----------- ----------- ----------
NET CASH PROVIDED BY
INVESTING ACTIVITIES 16,647,747 11,508,728 4,774,303
----------- ----------- ----------
FINANCING ACTIVITIES:
Net decrease in demand deposits (393,483) (221,504) (1,740,208)
Net decrease in NOW accounts (7,057,518) (6,485,705) (4,193,364)
Net increase (decrease) in
savings deposits (249,754) 436,756 1,460,935
Net increase (decrease) in
time deposits (9,461,235) (6,185,585) 136,794
Net increase (decrease) in
borrowed funds (12,893) (75,332) (82,148)
----------- ----------- ----------
NET CASH USED BY FINANCING
ACTIVITIES (17,174,883) (12,531,370) (4,417,991)
----------- ----------- ----------
Increase in cash and cash
equivalents 116,272 (533,694) 1,030,684
Cash and Cash equivalents at
January 1 4,072,796 7,671,794 4,940,965
----------- ----------- ----------
Cash and Cash equivalents at
June 30 $ 4,189,068 $ 7,138,100 $5,971,649
=========== =========== ==========
</TABLE>
5
<PAGE> 8
BRUNSWICK BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 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>
JUNE 30, 1995
BOOK VALUE MARKET VALUE
---------- ------------
<S> <C> <C>
U.S. Treasury $12,878,487 $12,455,487
U.S. Government Agencies 7,749,493 8,167,918
States and political subdivisions 173,505 173,505
Other securities 1,140,577 1,193,785
----------- -----------
$21,942,062 $21,990,695
=========== ===========
</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>
6
<PAGE> 9
BRUNSWICK BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1995
UNAUDITED
NOTE 3
NET LOANS
The composition of net loans is as follows:
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
1995 1994
----------- -----------
<S> <C> <C>
Commercial loans $19,290,285 $19,430,183
Real estate loans 24,906,127 26,598,757
Consumer loans 873,553 737,494
----------- -----------
45,069,965 46,766,434
Less:
Allowance for credit losses 1,520,976 1,000,159
Unearned income 93,171 55,741
----------- -----------
$43,455,818 $45,710,534
=========== ===========
</TABLE>
NOTE 4
PREMISES AND EQUIPMENT
The major components of premises and equipment are as follows:
<TABLE>
<CAPTION>
JUNE 30 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 965,345 1,210,793
---------- ----------
$ 803,109 $ 850,918
========== ==========
</TABLE>
7
<PAGE> 10
BRUNSWICK BANCORP AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
JUNE 30, 1995
The most significant change in the Corporation's Balance Sheet since December
31, 1994 is the decrease in deposits of approximately $17,000,000. 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
$14,600,000.
Also noteworthy is an increase of approximately $521,000 in the allowance for
credit losses which resulted from $300,000 in provisions and $221,000 in
recoveries. At June 30, 1995, the $1,521,000 allowance represented 3.4% of
total loans and 26% of past due and nonaccrual loans.
The results of operations for the first half of 1995, compared to the same
period of 1994, show an increase in income before taxes of approximately
$182,000. The main components of this increase are as follows.
Net interest income increased by approximately $492,000. The changes in net
interest income are analyzed in detail on page 9.
Service fees increased by $100,000 mainly because trust fees increased by
$47,000 and credit card application fees increased by $41,000. Other
non-interest income decreased by $156,000 because, during the first half of
1994, a $158,000 gain was realized from the sale of real estate acquired
through foreclosure.
Non-interest expenses increased by approximately $270,000. The three largest
components of this increase are as follows.
Salaries, wages and employee benefits increased by $85,000 because of increases
in base salaries and wages and additions to staff. Advertising expense
increased by $61,000 because of recent advertising campaigns. A $170,000
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 June 30, 1995
and December 31, 1994, the risk-based capital ratios were 36.6% 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.
8
<PAGE> 11
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>
Six Months Ended June 30, 1995
Versus
Six Months Ended June 30, 1994
Interest income on:
Loans $ 82 $210 $292
Investment securities 372 (97) 275
Federal funds sold (158) 256 98
Deposits with banks (1) - (1)
----- ----
Total interest income 295 369 664
----- ---- ----
Interest expense on:
Deposits 12 156 168
Borrowed funds - 4 4
----- ---- ----
Total interest expense 12 160 172
----- ---- ----
Net interest income $ 283 $209 $492
===== ==== ====
Quarter Ended June 30, 1995
Versus
Quarter Ended June 30, 1994
Interest income on:
Loans $ 29 $ 22 $ 51
Investment securities 226 (78) 148
Federal funds sold (67) 113 46
----- ---- ----
Total interest income 188 57 245
----- ---- ----
Interest expense on:
Deposits 35 118 153
Borrowed funds - 1 1
----- ---- ----
Total interest expense 35 119 154
----- ---- ----
Net interest income $ 153 ($62) $ 91
===== ==== ====
</TABLE>
9
<PAGE> 12
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 June 30,
1995.
10
<PAGE> 13
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
7/17/95
----------- /s/ Carmen J. Gumina
Date ---------------------------
Carmen J. Gumina
President
7/17/95
----------- /s/ Thomas Fornale
Date ---------------------------
Thomas Fornale
Treasurer
11
<PAGE> 14
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Description
----------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 4,189,068
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 14,200,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 21,942,062
<INVESTMENTS-MARKET> 21,990,695
<LOANS> 44,976,794
<ALLOWANCE> 1,520,976
<TOTAL-ASSETS> 89,139,211
<DEPOSITS> 70,541,142
<SHORT-TERM> 519,837
<LIABILITIES-OTHER> 967,813
<LONG-TERM> 0
<COMMON> 1,203,540
0
0
<OTHER-SE> 15,906,879
<TOTAL-LIABILITIES-AND-EQUITY> 89,139,211
<INTEREST-LOAN> 2,435,429
<INTEREST-INVEST> 694,069
<INTEREST-OTHER> 531,415
<INTEREST-TOTAL> 3,660,913
<INTEREST-DEPOSIT> 847,509
<INTEREST-EXPENSE> 858,330
<INTEREST-INCOME-NET> 2,802,583
<LOAN-LOSSES> 300,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,182,195
<INCOME-PRETAX> 762,152
<INCOME-PRE-EXTRAORDINARY> 371,396
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 371,396
<EPS-PRIMARY> .62
<EPS-DILUTED> .62
<YIELD-ACTUAL> 0
<LOANS-NON> 2,863,591
<LOANS-PAST> 1,198,418
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,000,159
<CHARGE-OFFS> 0
<RECOVERIES> 220,817
<ALLOWANCE-CLOSE> 1,520,976
<ALLOWANCE-DOMESTIC> 1,520,976
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
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