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Previous: INTERSTATE JOHNSON LANE INC, 10-Q, 1998-05-14 |
Next: AEI REAL ESTATE FUND 85-B LTD PARTNERSHIP, 10QSB, 1998-05-14 |
<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 March 31, 1998 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)
(732) 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 March 31, 1998)
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
March 31, 1998 and December 31, 1997 1
Consolidated Statements of Income
Three Months Ended March 31, 1998, 1997 and 1996 2
Consolidated Statements of Stockholders' Equity
Three Months Ended March 31, 1998, 1997 and 1996 3
Consolidated Statements of Cash Flows
Three Months Ended March 31, 1998, 1997 and 1996 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
</TABLE>
<PAGE> 3
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
UNAUDITED
<TABLE>
<CAPTION>
MAR 31 DEC 31
1998 1997
------------- -------------
<S> <C> <C>
ASSETS:
Cash and due from banks $ 9,229,667 $ 4,933,343
Federal funds sold 29,100,000 26,600,000
Securities held to maturity 12,053,149 15,120,064
Loans receivable, net 50,319,916 52,705,619
Premises and equipment 1,564,457 1,252,328
Foreclosed real estate 124,337 60,080
Other assets 989,955 968,815
------------- -------------
NET ASSETS $ 103,381,481 $ 101,640,249
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Liabilities:
Deposits:
Demand deposits $ 27,919,611 $ 25,177,070
NOW accounts 23,502,988 18,447,438
Savings deposits 12,300,722 12,706,999
Time deposits 18,329,752 24,426,444
------------- -------------
Total deposits 82,053,073 80,757,951
Borrowed funds 314,900 511,649
Accrued expenses and other liabilities 837,306 545,074
------------- -------------
Total liabilities 83,205,279 81,814,674
------------- -------------
Stockholders' equity:
Common stock, par value $2.00:
Authorized 3,000,000 shares;
issued 721,920 shares 1,443,840 1,443,840
Additional paid-in capital 4,284,804 4,284,804
Retained earnings 14,521,272 14,168,828
Treasury stock at cost (73,714) (71,897)
------------- -------------
Total stockholders' equity 20,176,202 19,825,575
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS
EQUITY $ 103,381,481 $ 101,640,249
============= =============
</TABLE>
1
<PAGE> 4
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1998, 1997 AND 1996
UNAUDITED
<TABLE>
<CAPTION>
1998 1997 1996
---------- ---------- ----------
<S> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $1,392,051 $1,345,664 $1,129,913
Interest on investment securities:
Taxable 193,467 222,560 232,397
Exempt from Federal income tax 1,091 2,100 3,031
Interest on Federal funds sold 364,458 229,144 295,025
---------- ---------- ----------
Total interest income 1,951,067 1,799,468 1,660,366
---------- ---------- ----------
INTEREST EXPENSE:
Interest on deposits 471,391 483,181 482,625
Interest on borrowed funds 3,802 3,432 4,200
---------- ---------- ----------
Total interest expense 475,193 486,613 486,825
---------- ---------- ----------
Net interest income 1,475,874 1,312,855 1,173,541
Provision for credit losses 75,000 170,000 75,000
---------- ---------- ----------
Net interest income after
provision for credit losses 1,400,874 1,142,855 1,098,541
---------- ---------- ----------
NON-INTEREST INCOME:
Service fees 200,949 188,952 168,033
Other non-interest income 4,080 -- 24,035
---------- ---------- ----------
Total non-interest income 205,029 188,952 192,068
---------- ---------- ----------
NON-INTEREST EXPENSES:
Salaries and wages 414,355 399,579 442,654
Employee benefits 125,561 109,540 110,283
Occupancy 146,544 154,437 165,029
Furniture and equipment 40,445 40,489 35,771
Other non-interest expenses 314,654 290,180 281,354
---------- ---------- ----------
Total non-interest expenses 1,041,559 994,225 1,035,091
---------- ---------- ----------
Income before income taxes 564,344 337,582 255,518
Income tax expense 211,900 156,480 113,887
---------- ---------- ----------
NET INCOME $ 352,444 $ 181,102 $ 141,631
========== ========== ==========
NET INCOME PER SHARE $ .49 $ .25 $ .20
========== ========== ==========
</TABLE>
2
<PAGE> 5
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
THREE MONTHS ENDED MARCH 31, 1998, 1997 AND 1996
UNAUDITED
<TABLE>
<CAPTION>
COMMON RETAINED TREASURY
STOCK SURPLUS EARNINGS STOCK TOTAL
------------ ------------ ------------ --------- ------------
<S> <C> <C> <C> <C> <C>
Balance
December 31, 1995 $ 1,443,840 $ 4,284,804 $ 12,161,436 $ -- $ 17,890,080
Net income -- -- 141,631 -- 141,631
------------ ------------ ------------ --------- ------------
Balance
Mar. 31, 1996 $ 1,443,840 $ 4,284,804 $ 12,303,067 $ -- $ 18,031,711
============ ============ ============ ========= ============
Balance
December 31, 1996 $ 1,443,840 $ 4,284,804 $ 12,924,286 $ -- $ 18,652,930
Net income -- -- 181,102 -- 181,102
------------ ------------ ------------ --------- ------------
Balance
Mar. 31, 1997 $ 1,443,840 $ 4,284,804 $ 13,105,388 $ -- $ 18,834,032
============ ============ ============ ========= ============
Balance
December 31, 1997 $ 1,443,840 $ 4,284,804 $ 14,168,828 $ (71,897) $ 19,825,575
Net income -- -- 352,444 -- 352,444
Purchase of
treasury stock -- -- -- (1,817) (1,817)
------------ ------------ ------------ --------- ------------
Balance
Mar. 31, 1998 $ 1,443,840 $ 4,284,804 $ 14,521,272 ($ 73,714) $ 20,176,202
============ ============ ============ ========= ============
</TABLE>
3
<PAGE> 6
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1998, 1997 AND 1996
UNAUDITED
<TABLE>
<CAPTION>
1998 1997 1996
------------ ------------ ------------
<S> <C> <C> <C>
OPERATING ACTIVITIES:
Net income $ 352,444 $ 181,102 $ 141,631
Adjustments to reconcile net
income to cash provided by
operating activities:
Provision for credit losses 75,000 170,000 75,000
Depreciation and amortization 34,921 31,090 24,972
Net accretion of securities
discounts (81,758) (14,528) (13,808)
(Increase) decrease in other
assets (21,140) (270,299) 169,404
Increase in accrued expenses
and other liabilities 292,232 218,407 141,176
------------ ------------ ------------
CASH FLOWS FROM OPERATING
ACTIVITIES 651,699 315,772 538,375
------------ ------------ ------------
INVESTING ACTIVITIES:
Net (increase) decrease in
Federal funds sold (2,500,000) 10,000,000 (4,000,000)
Maturities of investment
securities 6,009,840 7,000,000 7,000,000
Principal repayments on invest-
ment securities 64,303 40,266 66,468
Purchase of investment
securities (2,925,470) (11,012,300) (6,965,000)
Net (increase) decrease in loans
receivable 2,246,446 (501,092) (2,214,685)
Acquisitions of premises and
equipment (347,050) (139,138) (83,977)
------------ ------------ ------------
CASH FLOWS FROM INVESTING
ACTIVITIES 2,548,069 5,387,736 (6,197,194)
------------ ------------ ------------
FINANCING ACTIVITIES:
Net increase (decrease) in
demand deposits 2,742,541 (1,829,938) 1,935,293
Net increase (decrease) in
NOW accounts 5,055,550 (6,710,230) 4,394,240
Net increase (decrease) in
savings deposits (406,277) (393,785) 59,783
Net increase (decrease) in
time deposits (6,096,692) (159,806) (1,649,172)
Net increase (decrease) in
borrowed funds (196,749) 183,544 9,995
Purchase of treasury stock (1,817) -- --
------------ ------------ ------------
CASH FLOWS FROM FINANCING
ACTIVITIES 1,096,556 (8,910,215) 4,750,139
------------ ------------ ------------
Increase (decrease) in cash and cash
equivalents 4,296,324 (3,206,707) (908,680)
Cash and cash equivalents at
January 1 4,933,343 9,190,838 6,348,014
------------ ------------ ------------
Cash and cash equivalents at
March 31 $ 9,229,667 $ 5,984,131 $ 5,439,334
============ ============ ============
</TABLE>
4
<PAGE> 7
BRUNSWICK BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1998
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, 1998
BOOK VALUE MARKET VALUE
<S> <C> <C>
U.S. Treasury $10,113,837 $10,471,876
States and political subdivisions 41,331 41,331
Other securities 1,897,981 1,920,500
---------- ----------
$12,053,149 $12,433,707
========== ==========
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1997
BOOK VALUE MARKET VALUE
<S> <C> <C>
U.S. Treasury $13,168,184 $13,630,617
States and political subdivisions 54,572 54,572
Other securities 1,897,308 1,923,330
---------- ----------
$15,120,064 $15,608,519
========== ==========
</TABLE>
5
<PAGE> 8
BRUNSWICK BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1998
UNAUDITED
NOTE 3
NET LOANS
The composition of net loans is as follows:
<TABLE>
<CAPTION>
MARCH 31 DECEMBER 31
1998 1997
---------- -----------
<S> <C> <C>
Commercial loans $18,533,241 $19,891,202
Real estate loans 31,487,789 32,467,152
Consumer loans 1,336,511 1,328,652
---------- ----------
51,357,541 53,687,006
Less:
Allowance for credit losses 894,427 820,254
Unearned income 143,198 161,133
---------- ----------
$50,319,916 $52,705,619
========== ==========
</TABLE>
NOTE 4
PREMISES AND EQUIPMENT
The major components of premises and equipment are as
follows:
<TABLE>
<CAPTION>
MARCH 31 DECEMBER 31
1998 1997
----------- ----------
<S> <C> <C>
Land $ 834,372 $ 537,927
Buildings 562,049 562,049
Leasehold improvements 70,137 70,137
Equipment 1,075,852 1,058,097
----------- ----------
2,542,410 2,228,210
Less accumulated depreciation
and amortization 977,953 975,882
---------- ----------
$ 1,564,457 $ 1,252,328
========== ==========
</TABLE>
6
<PAGE> 9
BRUNSWICK BANCORP AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
MARCH 31, 1998
There were no significant changes in the Corporation's Balance Sheet since
December 31, 1997; however, it should be mentioned that investment securities
decreased by approximately $3,000,000 as a result of securities being called
prior to maturity.
Also, loan balances decreased by $2,386,000, and deposits increased by
$1,295,000. The aforementioned changes resulted in increases in liquid assets,
cash and balances with banks including Federal funds sold.
Also noteworthy is an increase of approximately $74,000 in the allowance for
credit losses which resulted mainly from $75,000 in credit loss provisions. At
March 31, 1998, the allowance for credit losses represented 1.7% of total loans
and 52.3% of past due 90 days or more and nonaccrual loans.
The results of operations for the first quarter of 1998, compared to the same
period of 1997, show an increase in income before taxes of approximately
$227,000. The main reasons for this increase are a $163,000 increase in net
interest income and a decrease in the provision for credit losses of $95,000,
offset by an increase in non-interest expenses of approximately $47,000. The
increase in net interest income is analyzed in detail on page 8.
Non-interest income and expense balances were comparable to those amounts
reported for the first quarter of 1997.
The Corporation's capital position continues to be one of its strong points. At
March 31, 1998 our total risk-based capital ratios was 31.9% which is almost
four times the regulatory requirement.
In Management's opinion, the Corporation's liquidity position is strong, based
on its high level of core deposits, the stability of its other funding sources
and the support provided by its capital base.
7
<PAGE> 10
BRUNSWICK BANCORP AND SUBSIDIARIES
ANALYSIS OF CHANGES IN NET INTEREST INCOME
(IN THOUSANDS)
<TABLE>
<CAPTION>
Increase (Decrease) Due to Changes in
Volume Rates Total
----- ----- -----
<S> <C> <C> <C>
Three Months Ended March 31, 1998
Versus
Three Months Ended March 31, 1997
Interest income on:
Loans ($ 65) $ 112 $ 47
Investment securities (22) (8) (30)
Federal funds sold 119 16 135
----- ----- -----
Total interest income 32 120 152
----- ----- -----
Interest expense on:
Deposits 8 (19) (11)
Borrowed funds 0 0 0
----- ----- -----
Total interest expense 8 (19) (11)
----- ----- -----
Net interest income $ 24 $ 139 $ 163
===== ===== =====
</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, 1998.
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
04-24-98 Carmen J. Gumina
------------ ----------------------------
Date Carmen J. Gumina
President
04-24-98 Thomas Fornale
------------ ----------------------------
Date Thomas Fornale
Treasurer
10
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 9,229,667
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 29,100,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 12,053,149
<INVESTMENTS-MARKET> 12,433,707
<LOANS> 51,214,343
<ALLOWANCE> 894,427
<TOTAL-ASSETS> 103,381,481
<DEPOSITS> 82,053,073
<SHORT-TERM> 314,900
<LIABILITIES-OTHER> 837,306
<LONG-TERM> 0
0
0
<COMMON> 1,443,840
<OTHER-SE> 18,732,362
<TOTAL-LIABILITIES-AND-EQUITY> 20,176,202
<INTEREST-LOAN> 1,392,051
<INTEREST-INVEST> 194,558
<INTEREST-OTHER> 364,458
<INTEREST-TOTAL> 1,951,067
<INTEREST-DEPOSIT> 471,391
<INTEREST-EXPENSE> 475,193
<INTEREST-INCOME-NET> 1,475,874
<LOAN-LOSSES> 75,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,041,559
<INCOME-PRETAX> 564,344
<INCOME-PRE-EXTRAORDINARY> 352,444
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 352,444
<EPS-PRIMARY> .49
<EPS-DILUTED> .49
<YIELD-ACTUAL> 0
<LOANS-NON> 620,035
<LOANS-PAST> 1,091,484
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 820,254
<CHARGE-OFFS> 1,372
<RECOVERIES> 545
<ALLOWANCE-CLOSE> 894,427
<ALLOWANCE-DOMESTIC> 894,427
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
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