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Previous: BATTLE MOUNTAIN GOLD CO, 424B3, 1996-07-26 |
Next: HUTCHINSON TECHNOLOGY INC, 10-Q, 1996-07-26 |
<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, 1996 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 $2.00 721,920 SHARES
(Class of Stock) (Outstanding at June 30, 1996)
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, 1996 and December 31, 1995 1
Consolidated Statements of Income
Six Months Ended June 30, 1996, 1995 and 1994 2
Consolidated Statements of Income
Quarters Ended June 30, 1996, 1995 and 1994 3
Consolidated Statements of Stockholders' Equity
Six Months Ended June 30, 1996, 1995 and 1994 4
Consolidated Statements of Cash Flows
Six Months Ended June 30, 1996, 1995 and 1994 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
1996 1995
---- ----
ASSETS:
<S> <C> <C>
Cash and due from banks $ 4,676,095 $ 6,348,014
Federal funds sold 21,900,000 21,000,000
Investment securities 13,989,370 14,129,902
Loans 51,922,729 46,408,294
Less allowance for credit losses 1,074,374 867,189
----------- -----------
Net loans 50,848,355 45,541,105
Premises and equipment 972,413 769,788
Other real estate owned 4,098,186 3,613,007
Accrued interest receivable and other assets 1,015,280 1,035,620
----------- -----------
NET ASSETS $97,499,699 $92,437,436
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Liabilities:
Deposits:
Demand deposits $24,768,848 $24,290,027
NOW accounts 17,334,196 13,663,887
Savings deposits 14,003,489 14,412,413
Time deposits 21,813,216 20,958,897
----------- -----------
Total deposits 77,919,749 73,325,224
Borrowed funds 533,986 368,247
Accrued expenses and other liabilities 818,545 853,885
----------- -----------
Total liabilities 79,272,280 74,547,356
----------- -----------
Stockholders' equity:
Common stock, par value $2.00:
Authorized 3,000,000 shares;
issued 721,920 shares 1,443,840 1,443,840
Surplus 4,284,804 4,284,804
Retained earnings 12,498,775 12,161,436
----------- -----------
Total stockholders' equity 18,227,419 17,890,080
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $97,499,699 $92,437,436
=========== ===========
</TABLE>
1
<PAGE> 4
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
SIX MONTHS ENDED JUNE 30, 1996, 1995 AND 1994
UNAUDITED
<TABLE>
<CAPTION>
1996 1995 1994
---- ---- ----
INTEREST INCOME:
<S> <C> <C> <C>
Interest and fees on loans $2,510,764 $2,435,429 $2,142,966
Interest on investment securities:
Taxable 436,321 686,494 410,162
Exempt from Federal income tax 5,837 7,575 9,181
Interest on Federal funds sold 563,321 531,415 433,509
Interest on deposits with banks -- -- 516
---------- ---------- ----------
Total interest income 3,516,243 3,660,913 2,996,334
---------- ---------- ----------
INTEREST EXPENSE:
Interest on deposits 967,166 847,509 679,455
Interest on borrowed funds 6,593 10,821 6,937
---------- ---------- ----------
Total interest expense 973,759 858,330 686,392
---------- ---------- ----------
Net interest income 2,542,484 2,802,583 2,309,942
Provision for credit losses 210,000 300,000 315,000
---------- ---------- ----------
Net interest income after
provision for credit losses 2,332,484 2,502,583 1,994,942
---------- ---------- ----------
NON-INTEREST INCOME:
Service fees 349,712 440,264 339,572
Other non-interest income 34,651 1,500 157,979
---------- ---------- ----------
Total non-interest income 384,363 441,764 497,551
---------- ---------- ----------
NON-INTEREST EXPENSES:
Salaries and wages 891,709 748,393 675,761
Employee benefits 223,475 156,454 144,185
Occupancy 341,630 299,489 298,601
Furniture and equipment 78,821 78,418 88,117
Other non-interest expenses 592,237 899,441 705,249
---------- ---------- ----------
Total non-interest expenses 2,127,872 2,182,195 1,911,913
---------- ---------- ----------
Income before income taxes 588,975 762,152 580,580
Income tax expense 251,636 390,756 215,944
---------- ---------- ----------
NET INCOME $ 337,339 $ 371,396 $ 364,636
========== ========== ==========
NET INCOME PER SHARE $ .47 $ .62 $ .61
========== ========== ==========
</TABLE>
2
<PAGE> 5
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
QUARTERS ENDED JUNE 30, 1996, 1995 AND 1994
UNAUDITED
<TABLE>
<CAPTION>
1996 1995 1994
---- ---- ----
INTEREST INCOME:
<S> <C> <C> <C>
Interest and fees on loans $1,380,851 $1,180,812 $1,129,515
Interest on investment securities:
Taxable 203,924 342,861 193,309
Exempt from Federal income tax 2,806 3,683 4,494
Interest on Federal funds sold 268,296 281,659 236,224
Interest on deposits with banks -- -- --
---------- ---------- ----------
Total interest income 1,855,877 1,809,015 1,563,542
---------- ---------- ----------
INTEREST EXPENSE:
Interest on deposits 484,541 474,656 322,134
Interest on borrowed funds 2,393 5,479 3,863
---------- ---------- ----------
Total interest expense 486,934 480,135 325,997
---------- ---------- ----------
Net interest income 1,368,943 1,328,880 1,237,545
Provision for credit losses 135,000 125,000 165,000
---------- ---------- ----------
Net interest income after
provision for credit losses 1,233,943 1,203,880 1,072,545
---------- ---------- ----------
NON-INTEREST INCOME:
Service fees 181,679 274,644 189,624
Other non-interest income 10,616 1,500 157,979
---------- ---------- ----------
Total non-interest income 192,295 276,144 347,603
---------- ---------- ----------
NON-INTEREST EXPENSES:
Salaries and wages 449,055 394,601 342,837
Employee benefits 113,192 77,410 68,865
Occupancy 176,601 142,561 154,793
Furniture and equipment 43,050 45,155 45,757
Other non-interest expenses 310,883 475,983 469,301
---------- ---------- ----------
Total non-interest expenses 1,092,781 1,135,710 1,081,553
---------- ---------- ----------
Income before income taxes 333,457 344,314 338,595
Income tax expense 137,749 195,783 116,651
---------- ---------- ----------
NET INCOME $ 195,708 $ 148,531 $ 221,944
========== ========== ==========
NET INCOME PER SHARE $ .27 $ .21 $ .31
========== ========== ==========
</TABLE>
3
<PAGE> 6
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
SIX MONTHS ENDED JUNE 30, 1996, 1995 AND 1994
UNAUDITED
<TABLE>
<CAPTION>
COMMON RETAINED
STOCK SURPLUS EARNINGS TOTAL
----- ------- -------- -----
Balance
<S> <C> <C> <C> <C>
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
=========== =========== =========== ===========
Balance
Dec. 31, 1995 $ 1,443,840 $ 4,284,804 $12,161,436 $17,890,080
Net income -- -- 337,339 337,339
----------- ----------- ----------- -----------
Balance
June 30, 1996 $ 1,443,840 $ 4,284,804 $12,498,775 $18,227,419
=========== =========== =========== ===========
</TABLE>
4
<PAGE> 7
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1996, 1995 AND 1994
UNAUDITED
<TABLE>
<CAPTION>
1996 1995 1994
---- ---- ----
OPERATING ACTIVITIES:
<S> <C> <C> <C>
Net income $ 337,339 $ 371,396 $ 364,636
Adjustments to reconcile net
income to cash provided by
operating activities:
Provision for credit losses 210,000 300,000 315,000
Depreciation and amortization 53,775 47,809 54,250
Net accretion of securities
discounts (37,106) (351,586) (150,565)
(Increase) decrease in interest
receivable and other assets 20,340 83,897 (240,236)
Increase (decrease) in interest
payable and other liabilities (35,340) 191,892 145,863
------------ ------------ ------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 549,008 643,408 488,948
------------ ------------ ------------
INVESTING ACTIVITIES:
Net (increase) decrease in
Federal funds sold (900,000) 14,600,000 10,200,000
Proceeds from maturities of
investment securities 7,000,000 -- 10,000,000
Return of capital on invest-
ment securities 142,638 93,031 844,956
Purchase of investment securities (6,965,000) -- (7,362,500)
Net (increase) decrease in loans (6,002,429) 1,954,716 (2,150,508)
Capital acquisitions (256,400) -- (23,220)
------------ ------------ ------------
NET CASH PROVIDED BY (USED
IN) INVESTING ACTIVITIES (6,981,191) 16,647,747 11,508,728
------------ ------------ ------------
FINANCING ACTIVITIES:
Increase (decrease) in:
Demand deposits 478,821 (393,483) (221,504)
NOW accounts 3,670,309 (7,057,518) (6,485,705)
Savings deposits (408,924) (249,754) 436,756
Time deposits 854,319 (9,461,235) (6,185,585)
Borrowed funds 165,739 (12,893) (75,332)
------------ ------------ ------------
NET CASH PROVIDED BY (USED
IN) FINANCING ACTIVITIES 4,760,264 (17,174,883) (12,531,370)
------------ ------------ ------------
Increase (decrease) in cash and cash
equivalents (1,671,919) 116,272 (533,694)
Cash and Cash equivalents at
January 1 6,348,014 4,072,796 7,671,794
------------ ------------ ------------
Cash and Cash equivalents at
June 30 $ 4,676,095 $ 4,189,068 $ 7,138,100
============ ============ ============
</TABLE>
5
<PAGE> 8
BRUNSWICK BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1996
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, 1996
BOOK VALUE MARKET VALUE
---------- ------------
<S> <C> <C>
U.S. Treasury $11,992,532 $11,960,620
U.S. Government Agencies 474,832 781,950
States and political subdivisions 128,737 128,737
Other securities 1,393,269 1,432,575
----------- -----------
$13,989,370 $14,303,882
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1995
BOOK VALUE MARKET VALUE
---------- ------------
<S> <C> <C>
U.S. Treasury $ 5,014,099 $ 5,041,250
U.S. Government Agencies 7,572,316 8,038,199
States and political subdivisions 151,564 151,564
Other securities 1,391,923 1,449,505
----------- -----------
$14,129,902 $14,680,518
=========== ===========
</TABLE>
6
<PAGE> 9
BRUNSWICK BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1996
UNAUDITED
NOTE 3
NET LOANS
The composition of net loans is as follows:
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
1996 1995
----------- -----------
<S> <C> <C>
Commercial loans $24,812,124 $19,233,053
Real estate loans 26,030,958 26,109,107
Consumer loans 1,151,743 1,120,594
----------- -----------
51,994,825 46,462,754
Less:
Allowance for credit losses 1,074,374 867,189
Unearned income 72,096 54,460
----------- -----------
$50,848,355 $45,541,105
=========== ===========
</TABLE>
NOTE 4
PREMISES AND EQUIPMENT
The major components of premises and equipment are as follows:
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
1996 1995
---------- ----------
<S> <C> <C>
Land $ 300,705 $ 300,705
Buildings 562,049 562,049
Leasehold improvements 89,071 284,456
Equipment 828,682 635,739
---------- ----------
1,780,507 1,782,949
Less accumulated depreciation
and amortization 808,094 1,013,161
---------- ----------
$ 972,413 $ 769,788
========== ==========
</TABLE>
7
<PAGE> 10
BRUNSWICK BANCORP AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
JUNE 30, 1996
The most significant change in the Corporation's Balance Sheet since December
31, 1995 are the increases in loans and deposits of approximately $5,500,000 and
$4,600,000, respectively. The increase in loans was the result of intense
commercial lending activity. Most of the increase in deposits occurred in Public
Funds NOW accounts.
Also noteworthy is an increase of approximately $207,000 in the allowance for
credit losses which resulted mainly from $210,000 in credit loss provisions. At
June 30, 1996 the allowance for credit losses represented 2.1% of total loans
and 23.3% of past due and nonaccrual loans.
The results of operations for the first half of 1996, compared to the same
period of 1995, show a decrease in income before taxes of approximately
$173,000. The main reason for this decrease is a $260,000 decrease in net
interest income offset by a decrease in the provision for credit loses of
$90,000. The decrease in net interest income is analyzed on page 9.
Service fee income decreased by $91,000 because of decreases in trust service
fees and credit card application fees of $48,000 and $39,000, respectively.
The $35,000 of other non-interest income reported for the frist half of the
current year represents rental income on properties acquired through foreclosure
net of applicable expenses. During the first half of 1996 expenses exceeded
rental income, and the resulting net expenses are included in other non-interest
expenses for that period.
Salaries and wages increased by $143,000 because of increases in base salaries
and wages and additions to staff. Employee benefits increased by $67,000 mainly
because of $60,000 in contributions to a recently implemented deferred
compensation plan.
Other non-interest expenses decreased by $307,000. The main reason for this
decrease is that during the first half of 1996, a $170,000 provision was
recorded for a civil penalty initiated by the United States Treasury Department.
The next two largest components of this decrease are a decrease in advertising
expense of $75,000 and a decrease in our FDIC assessment of $86,000.
Because of conservatism and the resulting asset quality, the Corporation's
capital position continues to be one of its strong points. At June 30, 1996 and
December 31, 1995, the total risk-based capital ratios were 31.7% and 34.8%,
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, 1996
Versus
Six Months Ended June 30, 1995
Interest income on:
Loans $ 175 ($ 99) $ 76
Investment securities (228) (24) (252)
Federal funds sold 87 (55) 32
----- ----- -----
Total interest income 34 (178) (144)
----- ----- -----
Interest expense on:
Deposits 25 95 120
Borrowed funds (6) 2 (4)
----- ----- -----
Total interest expense 19 97 116
----- ----- -----
Net interest income $ 15 ($275) ($260)
===== ===== =====
Quarter Ended June 30, 1996
Versus
Quarter Ended June 30, 1995 Interest income on:
Loans $ 169 $ 31 $ 200
Investment securities (123) (16) (139)
Federal funds sold 21 (35) (14)
----- ----- -----
Total interest income 67 (20) 47
----- ----- -----
Interest expense on:
Deposits 1 9 10
Borrowed funds (3) -- (3)
----- ----- -----
Total interest expense (2) 9 7
----- ----- -----
Net interest income $ 69 ($ 29) $ 40
===== ===== =====
</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, 1996.
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
July 19, 1996 /s/ Carmen J. Gumina
------------- --------------------
Date Carmen J. Gumina
President
July 19, 1996 /s/ Thomas Fornale
------------- --------------------
Date Thomas Fornale
Treasurer
11
<PAGE> 14
EXHIBIT INDEX
Exhibit No. Description
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 4,676,095
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 21,900,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 13,989,370
<INVESTMENTS-MARKET> 14,303,882
<LOANS> 51,922,729
<ALLOWANCE> 1,074,374
<TOTAL-ASSETS> 97,499,699
<DEPOSITS> 77,919,749
<SHORT-TERM> 533,986
<LIABILITIES-OTHER> 818,545
<LONG-TERM> 0
1,443,840
0
<COMMON> 0
<OTHER-SE> 16,783,579
<TOTAL-LIABILITIES-AND-EQUITY> 97,499,699
<INTEREST-LOAN> 2,510,764
<INTEREST-INVEST> 442,158
<INTEREST-OTHER> 563,321
<INTEREST-TOTAL> 3,516,243
<INTEREST-DEPOSIT> 967,166
<INTEREST-EXPENSE> 973,759
<INTEREST-INCOME-NET> 2,542,484
<LOAN-LOSSES> 210,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,127,872
<INCOME-PRETAX> 588,975
<INCOME-PRE-EXTRAORDINARY> 337,339
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 337,339
<EPS-PRIMARY> .47
<EPS-DILUTED> .47
<YIELD-ACTUAL> 0
<LOANS-NON> 2,485,234
<LOANS-PAST> 1,067,667
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 867,189
<CHARGE-OFFS> 3,510
<RECOVERIES> 695
<ALLOWANCE-CLOSE> 1,074,374
<ALLOWANCE-DOMESTIC> 1,074,374
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
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