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Previous: STAR STUCK LTD, 10QSB, 2000-05-11 |
Next: GMO TRUST, SC 13G, 2000-05-11 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
-----------------------------------------
Quarter ended March 31, 2000 Commission file number 0-14403
BRUNSWICK BANCORP
(Exact Name of Registrant as Specified in its Charter)
-------------------------------------------
NEW JERSEY 22-2610694
(State or Other Jurisdiction of (IRS Employer
Incorporation or Organization) Identification Number)
NEW BRUNSWICK, NEW JERSEY 08901
(Address of Principal Executive Office) (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 1,804,532 SHARES
(Class of Stock) (Outstanding March 31, 2000)
---------------------------------------------
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
INDEX
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PART I- FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets
March 31, 2000 and December 31, 1999 1
Consolidated Statements of Income
Three Months Ended March 31, 2000, 1999 and 1998 2
Consolidated Statements of Stockholders' Equity
Three Months Ended March 31, 2000, 1999 and 1998 3
Consolidated Statements of Cash Flows
Three Months Ended March 31, 2000, 1999 and 1998 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>
MARCH 31 DECEMBER 31
2000 1999
---- ----
<S> <C> <C>
ASSETS
Cash and due from banks $ 6,873,812 $ 5,905,416
Federal funds sold 30,400,000 34,600,000
------------- -------------
Total cash and cash equivalents 37,273,812 40,505,416
Securities held to maturity 22,662,508 22,663,091
Loans receivable, net 43,749,367 43,102,803
Premises and equipment 2,076,134 1,870,994
Other assets 1,206,855 730,574
------------- -------------
TOTAL ASSETS $ 106,968,676 $ 108,872,878
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing $ 26,535,120 $ 25,353,409
Interest bearing 56,520,155 59,945,120
------------- -------------
Total deposits 83,055,275 85,298,529
Borrowed funds 257,132 631,258
Accrued expenses and other liabilities 694,663 285,395
------------- -------------
Total liabilities 84,007,070 86,215,182
------------- -------------
Stockholders' equity:
Common stock, par value $2.00:
Authorized 3,000,000 shares:
issued 1,804,532 shares, March 31, 2000
and 902,266 shares, December 31, 1999; 3,609,064 1,804,532
Additional paid-in capital 2,119,580 3,924,112
Retained earnings 17,324,736 17,020,826
Treasury stock at cost, 9,300 shares (91,774) (91,774)
------------- -------------
Total Stockholders' equity 22,961,606 22,657,696
------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 106,968,676 $ 108,872,878
============= =============
</TABLE>
1
<PAGE> 4
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 2000, 1999 AND 1998
UNAUDITED
<TABLE>
<CAPTION>
2000 1999 1998
---- ---- ----
<S> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $1,124,429 $1,034,537 $1,392,051
Interest on securities held to maturity 320,754 373,520 194,558
Interest on Federal funds sold 475,619 404,275 364,458
---------- ---------- ----------
Total interest income 1,920,802 1,812,332 1,951,067
---------- ---------- ----------
INTEREST EXPENSE:
Interest on deposits 482,340 483,429 471,391
Interest on borrowed funds 4,147 1,839 3,802
---------- ---------- ----------
Total interest expense 486,487 485,268 475,193
---------- ---------- ----------
Net interest income 1,434,315 1,327,064 1,475,874
Provision for credit losses 35,000 25,000 75,000
---------- ---------- ----------
Net interest income after provision
for credit losses 1,399,315 1,302,064 1,400,874
---------- ---------- ----------
NON-INTEREST INCOME:
Service fees 230,672 221,624 200,949
Other non-interest income 4,080 9,575 4,080
---------- ---------- ----------
Total non-interest income 234,752 231,199 205,029
---------- ---------- ----------
NON-INTEREST EXPENSES:
Salaries and wages 467,965 428,723 414,355
Employee benefits 148,099 116,209 125,561
Occupancy 156,428 148,492 146,544
Furniture and equipment 48,299 58,996 40,445
Other non-interest expenses 306,516 292,085 314,654
---------- ---------- ----------
Total non-interest expenses 1,127,307 1,044,505 1,041,559
---------- ---------- ----------
Income before income taxes 506,760 488,758 564,344
Income tax expense 202,850 198,200 211,900
---------- ---------- ----------
NET INCOME $ 303,910 $ 290,558 $ 352,444
========== ========== ==========
NET INCOME PER SHARE $ 0.17 $ 0.16 $ 0.20
========== ========== ==========
</TABLE>
2
<PAGE> 5
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
THREE MONTHS ENDED MARCH 31, 2000, 1999 AND 1998
UNAUDITED
<TABLE>
<CAPTION>
COMMON RETAINED TREASURY
STOCK SURPLUS EARNINGS STOCK TOTAL
----- ------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
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, March 31, 1998 $1,443,840 $4,284,804 $14,521,272 $(73,714) $20,176,202
========== ========== =========== ======== ===========
Balance, December 31, 1998 $1,443,840 $4,284,804 $15,704,680 $(91,774) $21,341,550
Net income - - 290,558 - 290,558
Stock Split 360,692 (360,692) (4,556) - (4,556)
---------- ---------- ----------- -------- -----------
Balance, March 31, 1999 $1,804,532 $3,924,112 $15,990,682 $(91,774) $21,627,552
========== ========== =========== ======== ===========
Balance, December 31, 1999 $1,804,532 $3,924,112 $17,020,826 $(91,774) $22,657,696
Net income - - 303,910 - $ 303,910
Stock split 1,804,532 (1,804,532) - - $ -
---------- ---------- ----------- -------- -----------
Balance, March 31, 2000 $3,609,064 $2,119,580 $17,324,736 $(91,774) $22,961,606
========== ========== =========== ======== ===========
</TABLE>
3
<PAGE> 6
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2000, 1999 AND 1998
UNAUDITED
<TABLE>
<CAPTION>
2000 1999 1998
---- ---- ----
<S> <C> <C> <C>
OPERATING ACTIVITIES:
Net income $303,910 $290,558 $352,444
Adjustments to reconcile net income to
cash provided by operating activities:
Provision for credit losses 35,000 25,000 75,000
Depreciation and amortization 38,408 35,466 34,921
Net accretion of securities discounts
and premiums (18,479) (63,214) (81,758)
(Increase) decrease in other assets (476,281) (344,633) (21,140)
Increase (decrease) in accrued expenses
and other liabilities 409,268 347,912 292,232
----------- ----------- -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 291,826 291,089 651,699
----------- ----------- -----------
INVESTING ACTIVITIES:
Maturities of investment securities - - 6,009,840
Principal repayments on investment securities 19,062 63,833 64,303
Purchase of investment securities - - (2,925,470)
Net (increase) decrease in loans receivable (681,564) 1,181,878 2,246,446
Acquisitions of premises and equipment (243,548) - (347,050)
----------- ----------- -----------
NET CASH PROVIDED BY INVESTING
ACTIVITIES (906,050) 1,245,711 5,048,069
----------- ----------- -----------
FINANCING ACTIVITIES:
Cash paid in lieu of fractional shares - (4,556) -
Net increase (decrease) in non-interest
bearing deposits 1,181,711 2,796,553 2,742,541
Net increase (decrease) in interest
bearing deposits (3,424,965) 3,177,191 (1,447,419)
Net increase ( decrease) in savings deposits (2,338,307) (406,277)
Net increase (decrease) in borrowed funds (374,126) (3,795,083) (196,749)
Purchase of treasury stock - (1,817)
----------- ----------- -----------
NET CASH USED BY FINANCING ACTIVITIES (2,617,380) 2,174,105 1,096,556
----------- ----------- -----------
Increase (decrease) in cash and cash equivalents (3,231,604) 3,710,905 6,796,324
Cash and cash equivalents at January 1 40,505,416 40,448,304 31,533,343
----------- ----------- -----------
Cash and cash equivalents at March 31 $37,273,812 $44,159,209 $38,329,667
=========== =========== ===========
</TABLE>
4
<PAGE> 7
BRUNSWICK BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31,2000
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 principals 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 31,2000
-------------
BOOK MARKET
VALUE VALUE
----- -----
<S> <C> <C>
U.S. Government and agencies $21,012,508 $21,025,374
Other securities 1,650,000 1,650,000
----------- -----------
$22,662,508 $22,675,374
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1999
-----------------
BOOK MARKET
VALUE VALUE
----- -----
<S> <C> <C>
U.S. Government and agencies $21,013,091 $21,000,531
Other securities 1,650,000 1,650,000
----------- -----------
$22,663,091 $22,650,531
=========== ===========
</TABLE>
5
<PAGE> 8
BRUNSWICK BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2000
UNAUDITED
NOTE 3
NET LOANS
The composition of net loans is as follows:
<TABLE>
<CAPTION>
MARCH 31 DECEMBER 31
2000 1999
----------- -----------
<S> <C> <C>
Commercial loans $14,294,206 $10,634,153
Real estate loans 29,294,322 32,117,006
Consumer Loans 1,189,461 1,258,879
----------- -----------
44,777,989 44,010,038
Less:
Allowance for credit losses 892,041 800,000
Unearned income 136,581 107,235
----------- -----------
$43,749,367 $43,102,803
=========== ===========
</TABLE>
NOTE 4
PREMISES AND EQUIPMENT
The major components of premises and equipment are as follows:
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
---- ----
<S> <C> <C>
Land $ 828,372 $ 828,372
Buildings 1,186,572 983,001
Leasehold improvements 70,137 70,137
Equipment 1,167,098 1,127,121
---------- ----------
3,252,179 3,008,631
Less:
Accumulated depreciation and
amortization 1,176,045 1,137,637
---------- ----------
$2,076,134 $1,870,994
========== ==========
</TABLE>
6
<PAGE> 9
BRUNSWICK BANCORP AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
MARCH 31, 2000
There were no significant changes in the Corporation's Balance Sheet since
December 31, 1999.
Total assets decreased by approximately $1,900,000 mostly due to a decrease in
deposits of approximately $2,200,000 and a resulting decrease in Federal funds
sold. It should also be mentioned that there was a modest increase in net loans
receivable of $647,000.
Also noteworthy is an increase of approximately $92,000 in the allowance for
credit losses that resulted mainly from $35,000 in credit loss provisions and
net recoveries totaling $57,000. At March 31, 2000 the allowance for credit
losses totaled $892,041 that represented 2% of total loans and 48% of loans past
due 90 days or more and non-accrual loans.
The results of operation for the first quarter of 2000, compared to the same
period of 1999, show a slight increase in income before taxes of $18,000. The
two main components of this increase are a $107,000 increase in net interest
income offset by a decrease in non-interest expenses of $83,000. The increase in
non-interest expenses was the result of increases in salaries, wages and
employee benefits that totaled $71,000. The decrease in net interest income is
analyzed in detail on page 8.
The Corporation continues to be "Well Capitalized" which is the highest
classification a bank can receive. At March 31, 2000 our total risk-based
capital ration was 33.3% that is over 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
------ ----- -----
Three Months Ended March 31, 2000
- ---------------------------------
Versus
------
Three Months Ended March 31,1999
- --------------------------------
<S> <C> <C> <C>
Interest Income on:
Loans $15 $74 $89
Investment securities (6) (47) (53)
Federal funds sold (10) 82 72
------------ ------------ ------------
Total interest income (1) 109 108
Interest expense on:
Deposits (25) 24 (1)
Borrowed funds 1 1 2
------------ ------------ ------------
Total interest expense (24) 25 1
------------ ------------ ------------
Net interest income $23 $84 $107
============ ============ ============
</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,
2000.
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 20, 2000 /s/ Carmine J. Gumina
- --------------- --------------------------
Date Carmine J. Gumina
President
April 20, 2000 /s/ Thomas A. Fornale
- ----------- --------------------------
Date Thomas A. Fornale
Treasurer
10
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 6,873,812
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 30,400,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 22,662,508
<INVESTMENTS-MARKET> 22,675,374
<LOANS> 44,641,408
<ALLOWANCE> 892,041
<TOTAL-ASSETS> 106,968,676
<DEPOSITS> 83,055,275
<SHORT-TERM> 257,132
<LIABILITIES-OTHER> 694,663
<LONG-TERM> 0
0
0
<COMMON> 3,609,064
<OTHER-SE> 19,352,542
<TOTAL-LIABILITIES-AND-EQUITY> 106,968,676
<INTEREST-LOAN> 1,124,429
<INTEREST-INVEST> 320,754
<INTEREST-OTHER> 475,619
<INTEREST-TOTAL> 1,920,802
<INTEREST-DEPOSIT> 482,340
<INTEREST-EXPENSE> 486,487
<INTEREST-INCOME-NET> 1,434,315
<LOAN-LOSSES> 35,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,127,307
<INCOME-PRETAX> 506,760
<INCOME-PRE-EXTRAORDINARY> 303,910
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 303,910
<EPS-BASIC> .17
<EPS-DILUTED> .17
<YIELD-ACTUAL> 0
<LOANS-NON> 505,437
<LOANS-PAST> 1,362,763
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 800,000
<CHARGE-OFFS> 27,231
<RECOVERIES> 84,272
<ALLOWANCE-CLOSE> 892,041
<ALLOWANCE-DOMESTIC> 892,041
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
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