<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 September 30, 1995 Commission file number 0-14403
BRUNSWICK BANCORP
-----------------
(Exact Name of Registrant as Specified in its Charter)
----------
<TABLE>
<S> <C>
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)
</TABLE>
(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)
<TABLE>
<S> <C>
COMMON STOCK, PAR VALUE $2.00 601,770 SHARES
- ----------------------------- --------------
(Class of Stock) (Outstanding at June 30, 1995
</TABLE>
----------
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
September 30, 1995 and December 31, 1994 1
Consolidated Statements of Income
Nine Months Ended September 30, 1995, 1994 and 1993 2
Consolidated Statements of Income
Quarters Ended September 30, 1995, 1994 and 1993 3
Consolidated Statements of Stockholders' Equity
Nine Months Ended June 30, 1995, 1994 and 1993 4
Consolidated Statements of Cash Flows
Nine 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>
SEP 30 DEC 31
1995 1994
---- ----
<S> <C> <C>
ASSETS:
Cash and due from banks $ 6,566,432 $ 4,072,796
Federal funds sold 24,500,000 28,800,000
Investment securities 13,981,890 21,683,507
Loans 43,975,238 46,710,693
Less allowance for credit losses 1,377,929 1,000,159
---------- -----------
Net loans 42,597,309 45,710,534
Premises and equipment 779,201 850,918
Other real estate owned 3,493,655 3,708,920
Accrued interest receivable and other assets 897,670 924,131
---------- -----------
TOTAL ASSETS $92,816,157 $105,750,806
========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Liabilities:
Deposits:
Demand deposits $26,945,139 $ 24,840,551
NOW accounts 11,037,109 19,631,040
Savings deposits 14,322,272 15,644,155
Time deposits 21,700,813 27,587,386
---------- -----------
Total deposits 74,005,333 87,703,132
Borrowed funds 499,972 532,730
Accrued expenses and other liabilities 1,045,235 775,921
---------- -----------
Total liabilities 75,550,540 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 13,339,223 12,812,629
---------- -----------
Total stockholders' equity 17,265,617 16,739,023
---------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $92,816,157 $105,750,806
========== ===========
</TABLE>
1
<PAGE> 4
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
NINE MONTHS ENDED SEPTEMBER 30, 1995, 1994 AND 1993
UNAUDITED
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $3,653,721 $3,292,920 $3,059,451
Interest on investment securities:
Taxable 1,016,257 590,445 566,980
Exempt from Federal income tax 11,045 13,478 15,726
Interest on Federal funds sold 788,141 680,101 640,563
Interest on deposits with banks - 516 7,921
--------- --------- ---------
Total interest income 5,469,164 4,577,460 4,290,641
--------- --------- ---------
INTEREST EXPENSE:
Interest on deposits 1,298,966 991,880 1,125,917
Interest on borrowed funds 17,419 10,959 9,588
--------- --------- ---------
Total interest expense 1,316,385 1,002,839 1,135,505
--------- --------- ---------
Net interest income 4,152,779 3,574,621 3,155,136
Provision for credit losses 350,000 450,000 315,000
--------- --------- ---------
Net interest income after
provision for credit losses 3,802,779 3,124,621 2,840,136
--------- --------- ---------
NON-INTEREST INCOME:
Service fees 636,552 499,520 547,364
Other non-interest income 1,500 157,979 -
--------- --------- ---------
Total non-interest income 638,052 657,499 547,364
--------- --------- ---------
NON-INTEREST EXPENSES:
Salaries and wages 1,158,351 1,020,232 1,042,495
Employee benefits 228,671 216,439 179,301
Occupancy 450,521 442,933 442,080
Furniture and equipment 123,206 131,964 143,528
Other non-interest expenses 1,360,978 1,029,111 779,066
--------- --------- ---------
Total non-interest expenses 3,321,727 2,840,679 2,586,470
--------- --------- ---------
Income before income taxes 1,119,104 941,441 801,030
Income tax expense 592,510 357,325 293,413
--------- --------- ---------
NET INCOME $ 526,594 $ 584,116 $ 507,617
========= ========= =========
NET INCOME PER SHARE $ .88 $ .97 $ .84
========= ======== =========
</TABLE>
2
<PAGE> 5
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
QUARTERS ENDED SEPTEMBER 30, 1995, 1994 AND 1993
UNAUDITED
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $1,218,292 $1,149,954 $ 990,647
Interest on investment securities:
Taxable 329,763 180,283 181,344
Exempt from Federal income tax 3,470 4,297 5,061
Interest on Federal funds sold 256,726 246,592 216,058
Interest on deposits with banks - - 2,785
--------- --------- ---------
Total interest income 1,808,251 1,581,126 1,395,895
--------- --------- ---------
INTEREST EXPENSE:
Interest on deposits 451,457 312,425 354,099
Interest on borrowed funds 6,598 4,022 3,114
--------- --------- ---------
Total interest expense 458,055 316,447 357,213
--------- --------- ---------
Net interest income 1,350,196 1,264,679 1,038,682
Provision for credit losses 50,000 135,000 50,000
--------- --------- ---------
Net interest income after
provision for credit losses 1,300,196 1,129,679 988,682
--------- --------- ---------
NON-INTEREST INCOME:
Service fees 196,288 159,948 188,884
Other non-interest income - - -
--------- --------- ---------
Total non-interest income 196,288 159,948 188,884
--------- --------- ---------
NON-INTEREST EXPENSES:
Salaries and wages 409,958 344,471 363,398
Employee benefits 72,217 72,254 80,327
Occupancy 151,032 144,332 150,334
Furniture and equipment 44,788 43,847 51,898
Other non-interest expenses 461,537 323,862 269,490
--------- --------- ---------
Total non-interest expenses 1,139,532 928,766 915,447
--------- --------- ---------
Income before income taxes 356,952 360,861 262,119
Income tax expense 201,754 141,381 93,100
--------- --------- ---------
NET INCOME $ 155,198 $ 219,480 $ 169,019
========= ========= =========
NET INCOME PER SHARE $ .26 $ .36 $ .28
========= ========= =========
</TABLE>
3
<PAGE> 6
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
NINE MONTHS ENDED SEPTEMBER 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 - - 507,617 507,617
--------- --------- ---------- ----------
Balance
Sept. 30, 1993 $1,003,252 $1,420,982 $13,148,280 $15,572,514
========= ========= ========== ==========
Balance
Dec. 31, 1993 $1,003,252 $1,420,982 $13,342,147 $15,766,381
Net income - - 584,116 584,116
--------- --------- ---------- ----------
Balance
Sept. 30, 1994 $1,003,252 $1,420,982 $13,926,263 $16,350,497
========= ========= ========== ==========
Balance
Dec. 31, 1994 $1,203,540 $2,722,854 $12,812,629 $16,739,023
Net income - - 526,594 526,594
--------- --------- ---------- ----------
Balance
Sept. 30, 1995 $1,203,540 $2,722,854 $13,339,223 $17,265,617
========= ========= ========== ==========
</TABLE>
4
<PAGE> 7
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1995, 1994 AND 1993
UNAUDITED
<TABLE>
<CAPTION>
1995 1994 1993
----- ----- ----
<S> <C> <C> <C>
OPERATING ACTIVITIES:
Net income $ 526,594 $ 584,116 $ 507,617
Adjustments to reconcile net
income to cash provided by
operating activities:
Provision for credit losses 350,000 450,000 315,000
Depreciation and amortization 71,717 82,471 108,066
Net accretion of securities ( 450,117) ( 170,594) ( 298,024)
discounts
(Increase) decrease in interest
receivable and other assets 241,726 ( 233,863) 6,453
Increase in interest
payable and other liabilities 269,314 306,313 86,443
---------- ---------- ----------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 1,009,234 1,018,443 725,555
---------- ---------- ----------
INVESTING ACTIVITIES:
Net decrease in
Federal funds sold 4,300,000 9,300,000 2,100,000
Proceeds from maturities of
investment securities 13,000,000 10,000,000 -
Return of capital on invest-
ment securities 157,199 960,276 1,554,445
Purchase of investment
securities ( 5,005,465) ( 7,762,500) -
Net (increase) decrease in loans 2,763,225 ( 4,010,930) ( 367,356)
Capital acquisitions - ( 67,008) -
---------- ---------- ----------
NET CASH PROVIDED BY
INVESTING ACTIVITIES 15,214,959 8,419,838 3,287,089
---------- ---------- ----------
FINANCING ACTIVITIES:
Net decrease in demand deposits 2,104,588 468,919 ( 4,566,576)
Net decrease in NOW accounts ( 8,593,931) ( 4,027,870) ( 1,625,899)
Net increase (decrease) in
savings deposits ( 1,321,883) 1,009,287 1,503,775
Net increase (decrease) in
time deposits ( 5,886,573) ( 6,722,795) ( 395,266)
Net increase (decrease) in
borrowed funds ( 32,758) ( 56,408) ( 75,940)
Cash dividends declared - - -
---------- ---------- ----------
NET CASH USED BY FINANCING
ACTIVITIES (13,730,557) ( 9,328,867) ( 5,159,906)
---------- ---------- ----------
Increase in cash and cash
equivalents 2,493,636 109,414 ( 1,147,262)
Cash and Cash equivalents at
January 1 4,072,796 7,671,794 4,940,965
---------- ---------- ----------
Cash and Cash equivalents at
September 30 $ 6,566,432 $ 7,781,208 $ 3,793,703
========== ========== ==========
</TABLE>
5
<PAGE> 8
BRUNSWICK BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 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>
SEPT 30, 1995
BOOK VALUE MARKET VALUE
---------- ------------
<S> <C> <C>
U.S. Treasury $ 5,014,782 $ 4,989,700
U.S. Government Agencies 7,663,215 8,070,072
States and political subdivisions 162,643 162,643
Other securities 1,141,250 1,191,020
---------- ----------
$13,981,890 $14,413,435
========== ==========
</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
SEPTEMBER 30, 1995
UNAUDITED
NOTE 3
NET LOANS
The composition of net loans is as follows:
<TABLE>
<CAPTION>
SEPEMBER 30 DECEMBER 31
1995 1994
----------- -----------
<S> <C> <C>
Commercial loans $19,124,942 $19,430,183
Real estate loans 23,907,614 26,598,757
Consumer loans 1,001,865 737,494
---------- ----------
44,034,421 46,766,434
Less:
Allowance for credit losses 1,377,929 1,000,159
Unearned income 59,183 55,741
---------- ----------
$42,597,309 $45,710,534
========== ==========
</TABLE>
NOTE 4
PREMISES AND EQUIPMENT
The major components of premises and equipment are as follows:
<TABLE>
<CAPTION>
SEPEMBER 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 989,253 1,210,793
---------- ----------
$ 779,201 $ 850,918
========== ==========
</TABLE>
7
<PAGE> 10
BRUNSWICK BANCORP AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
SEPTEMBER 30, 1995
The most significant change in the Corporation's Balance Sheet since December
31, 1994 is the decrease in deposits of approximately $13,700,000. Most of
this decrease occurred in Public Funds, NOW and time deposit accounts.
As a result of this decrease in deposits, Federal funds sold and investment
securities decreased by $4,300,000 and $7,700,000, respectively.
Also noteworthy is an increase of approximately $378,000 in the allowance for
credit losses which resulted from $350,000 in provisions and $28,000 in net
recoveries. At September 30, 1995, the $1,378,000 allowance represented 3.1%
of total loans and 21% of past due and nonaccrual loans.
The results of operations for the first three quarters of 1995, compared to the
same period of 1994, show an increase in income before taxes of approximately
$178,000. The main components of this increase are as follows.
Net interest income increased by approximately $578,000. The changes in net
interest income are analyzed in detail on page 9.
Service fees increased by $137,000 mainly because trust fees increased by
$47,000 and credit card application fees increased by $55,000. 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 $481,000. The three largest
components of this increase are as follows.
Salaries, wages and employee benefits increased by $150,000 because of
increases in base salaries and wages and additions to staff. Advertising
expense increased by $68,000 because of recent advertising campaigns. A
$265,000 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 September 30,
1995 and December 31, 1994, the risk-based capital ratios were 35.7% 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 September 30, 1995
Versus
Six Months Ended September 30, 1994
- -----------------------------------
Interest income on:
Loans $ 39 $ 322 $ 361
Investment securities 497 ( 74) 423
Federal funds sold ( 125) 233 108
Deposits with banks ( 1) - ( 1)
---- ---- ----
Total interest income 410 481 891
---- ---- ----
Interest expense on:
Deposits 32 275 307
Borrowed funds ( 1) 7 6
---- ---- ----
Total interest expense 31 282 313
---- ---- ----
Net interest income $ 379 $ 199 $ 578
==== ==== ====
Quarter Ended September 30, 1995
Versus
Quarter Ended September 30, 1994
- --------------------------------
Interest income on:
Loans ($ 46) $ 114 $ 68
Investment securities 223 ( 75) 148
Federal funds sold ( 54) 65 11
---- ---- ----
Total interest income 123 104 227
---- ---- ----
Interest expense on:
Deposits 20 119 139
Borrowed funds - 3 3
---- ---- ----
Total interest expense 20 122 142
---- ---- ----
Net interest income $ 103 ($ 18) $ 85
==== ==== ====
</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 nine month period
ended September 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
10/24/95 /s/ Carmen J. Gumina
----------- -------------------------
Date Carmen J. Gumina
President
10/24/95 /s/ Thomas Fornale
----------- -------------------------
Date Thomas Fornale
Treasurer
11
<PAGE> 14
EXHIBIT INDEX
-------------
EXHIBIT NO. DESCRIPTION
----------- -----------
Ex-27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 6,566,432
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 24,500,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 13,981,890
<INVESTMENTS-MARKET> 14,413,435
<LOANS> 43,975,238
<ALLOWANCE> 1,377,929
<TOTAL-ASSETS> 92,816,157
<DEPOSITS> 74,005,333
<SHORT-TERM> 499,972
<LIABILITIES-OTHER> 1,045,235
<LONG-TERM> 0
<COMMON> 1,203,540
0
0
<OTHER-SE> 16,062,077
<TOTAL-LIABILITIES-AND-EQUITY> 92,816,157
<INTEREST-LOAN> 3,653,721
<INTEREST-INVEST> 1,027,302
<INTEREST-OTHER> 788,141
<INTEREST-TOTAL> 5,469,164
<INTEREST-DEPOSIT> 1,298,966
<INTEREST-EXPENSE> 1,316,385
<INTEREST-INCOME-NET> 4,152,779
<LOAN-LOSSES> 350,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,321,727
<INCOME-PRETAX> 1,119,104
<INCOME-PRE-EXTRAORDINARY> 526,594
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 526,594
<EPS-PRIMARY> .88
<EPS-DILUTED> .88
<YIELD-ACTUAL> 0
<LOANS-NON> 2,462,532
<LOANS-PAST> 1,384,239
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,000,159
<CHARGE-OFFS> 276,646
<RECOVERIES> 304,416
<ALLOWANCE-CLOSE> 1,377,929
<ALLOWANCE-DOMESTIC> 1,377,929
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
