United States
Securities and Exchange Commission
Washington, D.C. 20549
Form 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Period Ended March 31,1997
Commission File Number: 0-15830
Raritan Bancorp Inc.
- -----------------------------------------------------------------
(exact name of registrant as specified in its charter)
Delaware 22-2792402
(State of Incorporation) (I.R.S. Employer Identification Number)
9 West Somerset Street, Raritan, New Jersey 08869
(address of principal executive offices) (zip code)
908-725-0080
(Registrant's telephone number, including area code)
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 period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements
for the past 90 days.
/X/ Yes / / No
Applicable only to corporate issuers:
As of April 23, 1997, 1,590,307 common shares, $.01 par
value per share were outstanding.
<PAGE>
RARITAN BANCORP INC.
FORM 10-Q
INDEX
<TABLE>
PAGE
<S> <C>
PART I - FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS 1
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF
OPERATIONS 7
PART II -OTHER INFORMATION
ITEM 1 LEGAL PROCEEDINGS 11
ITEM 2 CHANGES IN THE RIGHTS OF THE CORPORATION'S
SECURITY HOLDERS 11
ITEM 3 DEFAULTS BY THE CORPORATION ON ITS SENIOR
SECURITIES 11
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS 11
ITEM 5 OTHER INFORMATION 12
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K 12
SIGNATURES 13
</TABLE>
PAGE
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
RARITAN BANCORP INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars In thousands, except per share data)
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
(Unaudited) (Audited)
- -------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Cash and due from banks $ 5,451 $ 5,453
Federal funds sold 19,200 27,300
- -------------------------------------------------------------------------------
Total cash and cash equivalents 24,651 32,753
Securities available-for-sale,
at fair value 45,404 47,253
Investment securities, net (fair
value: $48,856 at March 31, 1997
and $51,202 at December 31,
1996) 50,022 51,919
Loans: 247,098 235,474
Less: Unearned income 329 404
Allowance for loan losses 3,127 2,965
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Net loans 243,642 232,105
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Banking premises and equipment, net 3,660 3,689
Federal Home Loan Bank of
New York stock, at cost 2,672 2,672
Accrued interest receivable 2,089 1,947
Other assets 2,998 3,055
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Total assets $375,138 $375,393
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- -------------------------------------------------------------------------------
Liabilities and Shareholders'
Equity:
Due to depositors:
Interest-bearing $309,368 $309,569
Non-interest-bearing 21,103 21,609
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Total deposits 330,471 331,178
Borrowings 10,154 10,154
Accrued interest payable 98 59
Accrued expenses and other
liabilities 5,620 5,734
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Total liabilities 346,343 347,125
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Shareholders' equity:
Preferred stock, $.01 par value,
2,000,000 shares authorized,
none issued
Common stock, $.01 par value,
3,500,000 shares authorized,
1,725,000 shares issued with
1,531,584 shares outstanding
at March 31, 1997 and
1,513,709 shares outstanding
at December 31, 1996 17 17
Additional paid-in capital 11,013 11,165
Retained earnings 20,719 20,016
Fair value adjustment of securities
available for sale, net of tax (26) 204
Less: Unallocated common stock
acquired by the ESOP (154) (154)
Cost of common stock in
treasury, 193,416 shares at
March 31, 1997 and 211,291
shares at December 31, 1996 (2,774) (2,980)
- -------------------------------------------------------------------------------
Total shareholders' equity 28,795 28,268
Commitments and contingencies
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Total liabilities and shareholders'
equity $375,138 $375,393
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</TABLE>
See accompanying notes to consolidated financial statements.
1
PAGE
<PAGE>
RARITAN BANCORP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31
- ------------------------------------------------------------------------------
1997 1996
- -----------------------------------------------------------------------------
<S> <C> <C>
Interest income:
Interest and fees on real estate
loans $ 3,927 $ 3,096
Interest and fees on other loans 1,009 903
Interest and dividends on
investment securities:
Taxable 1,507 1,692
Tax-exempt 12 13
Interest on deposits in other
banks 207 315
- -----------------------------------------------------------------------------
Total interest income 6,662 6,019
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Interest expense:
Interest on deposit accounts 3,266 3,210
Interest on borrowings 45 10
- -----------------------------------------------------------------------------
Total interest expense 3,311 3,220
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Net interest income 3,351 2,799
Provision for loan losses 150 75
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Net interest income after provision
for loan losses 3,201 2,724
Other income:
Service charges and other income 177 174
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Total other income 177 174
- -----------------------------------------------------------------------------
Operating expenses:
Salaries and employee benefits 1,000 907
Occupancy expense 188 199
FDIC insurance premium 20 43
Net cost of operation of
other real estate 9 8
Other operating expenses 614 560
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Total operating expenses 1,831 1,717
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Income before income tax expense 1,547 1,181
Income tax expense 577 438
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Net income $ 970 $ 743
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Average number of shares outstanding
Primary 1,657,124 1,597,324
Fully Diluted 1,660,480 1,597,324
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- -----------------------------------------------------------------------------
Net income per share
Primary $ 0.59 $ 0.46
Fully Diluted $ 0.58 $ 0.46
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- -----------------------------------------------------------------------------
</TABLE>
See accompanying notes to consolidated financial statements.
2
PAGE
<PAGE>
Raritan Bancorp Inc. and Subsidiary
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
1997 1996
- -------------------------------------------------------------------------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 970 $ 743
Adjustments to reconcile net income
to net cash provided by operating
activities:
Increase in accrued interest
receivable (142) (136)
Amortization on securities, net 39 54
Provision for loan losses 150 75
Increase (decrease) in accrued interest
payable 39 (6)
Increase in accrued expenses 101 69
Decrease (increase) in prepaid expenses 33 (127)
Depreciation 88 89
Deferred income taxes 60 (7)
Increase in income taxes payable 419 420
Net decrease, other (595) (310)
- -------------------------------------------------------------------------------
Total cash provided by operating
activities 1,162 864
- -------------------------------------------------------------------------------
Cash flows from investing
activities:
Proceeds from call and repayments
of securities available-for-sale 1,468 3,017
Proceeds from repayments of
investment securities, net 1,874 1,928
Purchase of securities available-
for-sale - (2,962)
Net disbursements for loans (11,627) (1,950)
Capital expenditures (59) (153)
- -------------------------------------------------------------------------------
Net cash used in investing activities (8,344) (120)
- -------------------------------------------------------------------------------
Cash flows from financing activities:
Net increase in demand deposits,
money market accounts, NOW accounts,
prime performance accounts, and
savings accounts (475) (3,776)
Net (decrease)increase in market-rate
certificates (232) 7,303
Proceeds from issuance of common stock 173 30
Treasury stock acquired, at cost (119) (1,476)
Repayment of Borrowings - (10,000)
Cash dividends paid (267) (221)
- -------------------------------------------------------------------------------
Net cash used in financing activities (920) (8,140)
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Net decrease in cash and
cash equivalents (8,102) (7,396)
Cash and cash equivalents at
beginning of period 32,753 39,886
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Cash and cash equivalents at
end of period $24,651 $32,490
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Supplemental schedule of cash
flow information:
Interest paid $ 3,272 $ 3,211
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Income taxes paid $ 98 $ 25
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</TABLE>
See accompanying notes to consolidated financial statements.
3
PAGE
<PAGE>
RARITAN BANCORP INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1: The consolidated financial statements include the
accounts of the Raritan Bancorp Inc. ("Corporation") and its
wholly-owned subsidiary, The Raritan Savings Bank ("Bank").
The consolidated balance sheet at March 31, 1997, the
consolidated statements of income for the three month periods
ended March 31, 1997 and 1996, and the consolidated statements of
cash flows for the three month periods ended March 31, 1997 and
1996, have been prepared by the Corporation without audit. In
the opinion of management, all adjustments (which include only
normal recurring adjustments) necessary to present fairly the
financial condition, results of operations, and changes in cash
flows at March 31, 1997 and for all periods presented have been
made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been omitted. These
consolidated financial statements are to be read in conjunction
with the December 31, 1996 audited financial statements and notes
thereto.
Interim results are not necessary indicative of results for the
full year.
Note 2: Securities Available-for-Sale, at fair value, and
Investment Securities, net:
The amortized cost of securities and their estimated fair values
at March 31, 1997, were as follows:
<TABLE>
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
- ----------------------------------------------------------------------------------------------------------------------
(Unaudited)
(In thousands)
<S> <C> <C> <C> <C>
Securities available-for-sale, at fair value:
U.S. Treasury securities and obligations of
U.S. Government agencies $16,632 $ 5 $ (109) $16,528
Obligations of states and political subdivisions 710 36 - 746
Equity security 129 38 - 167
Mortgage-backed securities issued by Federal agencies 27,973 317 (327) 27,963
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$45,444 $396 $ (436) $45,404
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Investment securities, net:
Mortgage-backed securities issued by Federal agencies $50,022 $ 7 $(1,173) $48,856
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
The amortized cost of securities and their estimated fair values at
December 31, 1996, were as follows:
<TABLE>
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
- ----------------------------------------------------------------------------------------------------------------------
(Unaudited)
(In thousands)
<S> <C> <C> <C> <C>
Securities available-for-sale, at fair value:
U.S. Treasury securities and obligations of
U.S. Government agencies $17,130 $ 48 $ (35) $17,143
Obligations of states and political subdivisions 710 38 - 748
Equity security 129 41 - 170
Mortgage-backed securities issued by Federal agencies 28,959 396 (163) 29,192
- ----------------------------------------------------------------------------------------------------------------------
$46,928 $523 $ (198) $47,253
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Investment securities, net:
Mortgage-backed securities issued by Federal agencies $51,919 $ 22 $ (739) $51,202
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- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
Note 3: Loans and Allowance for Loan Losses:
Loans are summarized as follows:
<TABLE>
March 31, 1997 December 31, 1996
(Unaudited) (Audited)
(In thousands)
<S> <C> <C>
Real estate:
Conventional $192,528 $179,135
Construction 9,571 11,019
-------- --------
202,099 190,154
Consumer Loans 34,988 35,300
Commercial Loans 10,011 10,020
-------- --------
$247,098 $235,474
-------- --------
-------- --------
</TABLE>
The activity in the allowance for loan losses follows:
<TABLE>
Three Months Ended March 31
1997 1996
(Unaudited)
(In thousands)
<S> <C> <C>
Balance at beginning of period $2,965 $2,582
Provision charged to operations 150 75
Charge-offs (3) (54)
Recoveries 15 3
------ -------
Balance at end of period $3,127 $2,606
------ -------
------ -------
</TABLE>
5
<PAGE>
Non-performing loans (over 90 days delinquent), real estate
acquired by foreclosure (included in Other Assets) and non-
accrual loans less than 90 days delinquent totaled $1,790,000 and
$1,486,000 at March 31, 1997 and December 31, 1996, respectively,
as follows:
<TABLE>
March 31, 1997 December 31, 1996
Number Amount Number Amount
of Loans (In thousands) of Loans (In thousands)
Description: (Unaudited) (Audited)
<S> <C> <C> <C> <C>
First mortgage loans 6 $ 658 4 $ 576
Home equity loans 3 111 2 115
Second mortgage loans 1 45 1 47
Consumer loans 1 5 - -
Commercial loans 1 155 2 326
Loans secured with marketable
securities 2 410 - -
Loans with modified terms 3 252 3 253
-- ----- -- -----
Total non-performing loans 17 1,636 12 1,317
Real estate acquired by
foreclosure 1 103 1 103
-- ----- -- -----
18 1,739 13 1,420
Non-accrual loans less than
90 days delinquent 2 51 4 66
-- ----- -- -----
20 $1,790 17 $ 1,486
-- ----- -- -----
-- ----- -- -----
</TABLE>
The loss of interest on loans charged-off, non-performing loans,
real estate acquired by foreclosure and non-accrual loans less
than 90 days delinquent totaled approximately $38,000 and $55,000
for the three months ended March 31, 1997 and 1996, respectively.
At March 31, 1997 and December 31, 1996, the Corporation had
impaired loans totaling $1,636,000 and $1,317,000, respectively.
The Corporation calculated a total allowance for impaired loans
of $144,000 and $112,000 at March 31, 1997 and December 31, 1996,
respectively. Impaired loans averaged $1,342,000 and $1,742,000
for the three months ended March 31, 1997 and 1996, respectively.
Interest income totaling $10,000 and $23,000 was recognized, all
on a cash basis, on impaired loans for the three months ended
March 31, 1997 and 1996, respectively.
Note 4: Recently Issued Accounting Pronouncements:
FASB Statement No. 128 "Earnings Per Share":
In February, 1997, the Financial Accounting Standards Board
("FASB") issued Statement of Financial Accounting Standards No.
128, "Earnings Per Share" ("Statement 128"). Statement 128
supersedes APB Opinion No. 15, "Earnings Per Share', and
specifies the computation, presentation and disclosure
requirements for earnings per share ("EPS") for entities with
publicly held common stock or potential common stock. Statement
128 replaces Primary EPS and Fully Diluted EPS with Basic EPS and
Diluted EPS, respectively. Statement 128 also requires dual
presentation of Basic and Diluted EPS on the face of the income
statement for entities with complex capital structures and a
reconciliation of the information utilized to calculate Basic EPS
to that used to calculate Diluted EPS.
Statement 128 is effective for financial statements periods
ending after December 15, 1997. Earlier application is not
permitted. After adoption, all prior period EPS is required to
be restated to conform with Statement 128. The Corporation
expects that the adoption of Statement 128 will result in Basic
EPS being higher than Primary EPS and Diluted EPS will be
approximately the same as Fully Diluted EPS.
6
<PAGE>
FASB Statement No. 129 "Disclosure of Information about Capital
Structure":
Statement of Financial Accounting Standards No. 129, "Disclosure
of Information about Capital Structure" ("Statement 129") was
issued in February, 1997. Statement 129 is effective for periods
ending after December 15, 1997. Statement 129 lists required
disclosures about capital structure that had been included in a
number of separate statements and opinions of authoritative
accounting literature. As such, the adoption of Statement 129 is
not expected to have a significant impact on the disclosures in
financial statements of the Corporation.
Item 2: Management's Discussion and Analysis of Financial
Condition and Results of Operations
At March 31, 1997, the Corporation's total assets decreased to
$375.1 million from $375.4 million at December 31, 1996. Net
loans increased to $243.6 million at March 31, 1997 from $232.1
million at December 31, 1996, as loan disbursements exceeded
repayments by $11.6 million. Deposits decreased to $330.5
million at March 31, 1997 from $331.2 at December 31, 1996.
Deposits outflows, exclusive of interest credited, exceeded
inflows by $4.0 million during the first three months of 1997.
Non-performing loans (over 90 days delinquent), real estate
acquired by foreclosure (included in Other Assets) and non-
accrual loans less than 90 days delinquent totaled $1,790,000 or
0.73% of total net loans plus real estate acquired by foreclosure
at March 31, 1997, compared to $1,486,000 or 0.61% of total net
loans plus real estate acquired by foreclosure at December 31,
1996.
During the three months ended March 31, 1997 the Corporation
added $150,000 to the allowance for loan losses compared to
$75,000 during the corresponding period in 1996. The increased
provision was in response to a growing diversified loan
portfolio. All non-performing assets are individually reviewed as
well as the overall loan portfolio when calculating the
provision.
Non-performing loans (over 90 days delinquent), real estate
acquired by foreclosure (included in Other Assets) and non-
accrual loans less than 90 days delinquent totaled $1,790,000 and
$1,486,000 at March 31, 1997 and December 31, 1996, respectively,
as follows:
<TABLE>
March 31, 1997 December 31, 1996
Number Amount Number Amount
of Loans (In thousands) of Loans (In thousands)
Description: (Unaudited) (Audited)
<S> <C> <C> <C> <C>
First mortgage loans 6 $ 658 4 $ 576
Home equity loans 3 111 2 115
Second mortgage loans 1 45 1 47
Consumer loans 1 5 - -
Commercial loans 1 155 2 326
Loans secured with marketable
securities 2 410 - -
Loans with modified terms 3 252 3 253
-- ------ -- -----
Total non-performing loans 17 1,636 12 1,317
Real estate acquired by
foreclosure 1 103 1 103
-- ------ -- -----
18 1,739 13 1,420
Non-accrual loans less than
90 days delinquent 2 51 4 66
-- ------ -- -----
20 $1,790 17 $ 1,486
-- ------ -- -----
-- ------ -- -----
</TABLE>
7
<PAGE>
Of the seventeen non-performing loans at March 31, 1997, fourteen
($1,221,000) are collateralized by real estate, one is
collateralized by an automobile ($5,000) and two ($410,000) are
secured with marketable securities. Real estate acquired by
foreclosure consists of one two-family dwelling . The two non-
accrual loans are secured by real estate.
Based on a review of each individual non-performing loan and non-
accrual loan less than 90 days delinquent, and loans rated loss,
doubtful, substandard and special mention according to regulatory
definition, a specific allowance of $1,106,000 has been allocated
to such loans, together with a general allowance of $2,021,000 on
the remaining loan portfolio taken as a whole. During the
quarter ended March 31, 1997 loans totaling $3,000 were charged
off, while loans totaling $54,000 were charged off during the
first three months of 1996.
On an ongoing basis, management reviews the overall adequacy of
the allowance for loan losses based on an evaluation of the risk
characteristics of the loan portfolio both on potential
individual problem loans, and on the aggregate loan portfolio
taken as a whole. Such factors as the financial condition of the
borrower, the fair value of the underlying collateral and other
items which, in management's opinion, deserve recognition in
estimating the adequacy of the allowance for loan losses are
evaluated. When reviewing the adequacy of the allowance for loan
losses, management reviews the status of the current (and
potential) non-performing loans, delinquency trends, coverage
ratios and various economic and other factors, and determines
what levels of allowance for loan losses are necessary to absorb
current losses in the loan portfolio.
Shareholders' equity totaled $28.8 million, or $18.80 per share
at March 31, 1997, compared to $28.3 million, or $18.67 per share
at December 31, 1996. The increase in shareholders' equity is
the result of net income totaling $970,000 for the quarter ended
March 31, 1997, the issuance of 22,875 shares of common stock
for $173,000 via the exercise of stock options, offset by a
decrease in the fair value adjustment of securities available-
for-sale of $230,000, dividend payments of $267,000 to
shareholders and the repurchase of 5,000 shares of the
Corporation's common stock for $119,000.
Results of Operations:
Raritan Bancorp Inc. and its subsidiary recorded net income of
$970,000 for the first quarter of 1997 compared to $743,000 for
the same period in 1996, an increase of $227,000, or 30.6%.
Net interest income increased for the first quarter of 1997 to
$3.4 million from $2.8 million, or 21.4%, for the comparable
quarter in 1996, as a result of an increase in average net
earning assets to $40.4 million from $34.9 million a year
earlier, together with an increase in the interest rate spread to
3.33% from 2.92% a year earlier. The increased spread is the
result of investing available funds into higher-yielding loan
products instead of lower-yielding investment securities.
Net interest income for the first quarter of 1997 was also
affected by the loss of interest on non-performing loans, non-
accrual loans and real estate acquired by foreclosure.
Generally, when a loan becomes more than thirty days delinquent,
the Corporation ceases to accrue income and deducts interest
income on that loan which had previously been accrued into
interest income for such period of time. The loss of interest on
loans charged off, non-performing loans, non-accrual loans, and
real estate acquired by foreclosure for the first quarter of 1997
was approximately $38,000 compared to $55,000 for the
corresponding 1996 period.
The provision for loan losses for the first quarter of 1997 was
$150,000 compared to $75,000 for the corresponding 1996 period.
As described in the discussion of the Corporation's financial
condition, the increased provision was in response to a growing
diversified loan portfolio. All non-performing assets are
individually reviewed for collectibility as well as the overall
loan portfolio when calculating the provision.
8
<PAGE>
Management calculated the provision based on a review of the
required allowance at March 31, 1997. All non-performing loans
and loans rated loss, doubtful, substandard and special mention
according to regulatory definition were reviewed and a specific
allowance of $1,106,000 was determined to be adequate by
comparing the existing loan balances with the value of supporting
collateral. A review of the remaining loan portfolio was made
and a general allowance of approximately $2,021,000 was deemed
reasonable and was established by assigning risk factors to the
various loan categories based on the collateral securing the
appropriate loans and historical trends.
Other expenses for the first quarter of 1997 were $1,831,000
compared to $1,717,000 for the corresponding period in 1996.
Salaries and employee benefits increased to $1,000,000 for the
first quarter of 1997 from $907,000 for the comparable period in
1996. The addition of five employees as a result of the Manville
Savings Bank merger and acquisition in August, 1996, together
with normal merit and cost of living adjustments contributed to
the increase. Occupancy expense decreased $11,000 to $188,000
for the first three months of 1997 from $199,000 for comparable
1996 period as a result of reduced snow removal expenses. The
FDIC insurance premium decreased $23,000 to $20,000 for the first
quarter of 1997 compared to $43,000 for the corresponding 1996
period as a result of the recapitalization of the Savings
Association Insurance Fund in 1996 which assesses a lower FDIC
premium rate for the Bank beginning in 1997. Other operating
expenses increased $54,000, or 9.6%, to $614,000, for the first
quarter of 1997 compared to the first quarter of 1996 as a result
of an increase in outside services expenses, legal fees,
consultant fees, marketing, trade association expenses and office
supplies, offset by negative goodwill accretion pertaining to the
aforementioned Manville Savings Bank merger and acquisition in
August, 1996.
The Corporation's annualized return on average total assets and
average shareholders' equity was 1.06% and 13.55%, respectively,
for the first quarter of 1997, compared to 0.86% and 11.46%,
respectively, for the comparable period in 1996.
Liquidity and Capital Resources
The Corporation's liquidity is a measure of its ability to fund
loans and withdrawal of deposits in a cost-effective manner. The
Corporation's principal sources of funds are deposits, scheduled
amortization and repayment of loan principal, maturities of
investment securities and funds provided by operations. At March
31, 1997, the Corporation's liquid assets (cash and cash
equivalents and investment securities maturing in one year or
less) totaled $25.2 million which represents 6.7% of total
assets.
The Corporation's main liquidity demands come from loan
disbursements which totaled approximately $28.4 million for the
first three months of 1997. At March 31, 1997 outstanding
commitments to extend credit totaled $49.1 million. Management
believes that the Corporation has adequate sources of liquidity
to fund these commitments.
The Bank has a borrowing arrangement with the Federal Home Loan
Bank of New York which can provide additional funds, if needed.
At March 31, 1997, this borrowing capacity totaled $35.4 million.
9
<PAGE>
Both the Corporation and the Bank are subject to regulatory
capital requirements mandated by the Federal Reserve Board (FRB)
and the Federal Deposit Insurance Corporation (FDIC),
respectively. Both are required to maintain minimum capital
requirements, defined by both the FRB and FDIC as risk-based
capital ratio (Tier 1 and Total) and leverage capital ratio.
The following chart presents the minimum capital requirement
ratios and the actual ratios for both the Corporation and the
Bank:
March 31, 1997
Required Actual Excess
THE CORPORATION:
Risk-based capital:
Tier 1 4.00% 12.504% 8.504%
Total 8.00 13.757 5.757
Leverage capital ratio 4.00 7.54 3.54
THE BANK:
Risk-based capital:
Tier 1 4.00 12.455 8.455
Total 8.00 13.708 5.708
Leverage capital ratio 4.00 7.51 3.51
10
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
Not applicable.
Item 2. Changes in Securities.
Not applicable.
Item 3. Defaults Upon Senior Securities.
Not applicable.
Item 4. Submission of Matters to a Vote of Securities Holders.
(a) The annual meeting of the security holders of Raritan
Bancorp Inc. took place on April 23, 1997.
(b)(i) The following directors were elected to a three-
year term:
<TABLE>
Number of Votes Number of Votes
Name Expiration of Term in Favor Withheld
<S> <C> <C> <C>
William T. Kelleher, Jr. 2000 1,290,121 13,604
Thomas F. Tansey 2000 1,290,121 13,604
</TABLE>
(b)(ii) The following directors' term of office continued
after the meeting:
<TABLE>
Name Expiration of Term
<S> <C>
Arlyn D. Rus 1998
Peter S. Johnson 1998
William T. Anderson, M.D. 1999
William W. Crouse 1999
</TABLE>
(c) KPMG Peat Marwick LLP was ratified as the Corporation's
auditors by a vote of 1,284,006 shares For, 17,750
shares Against and 1,969 shares Abstained.
(d) The Raritan Bancorp Inc. 1997 Long-Term Incentive Stock
Benefit Plan was approved by a vote of 992,354 shares
For, 101,866 shares Against and 9,281 shares Abstained.
11
<PAGE>
Item 5. Other Information.
Not applicable
Item 6. Exhibits and Reports on Form 8-K.
Not applicable.
12
<PAGE>
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 thereunto
duly authorized.
RARITAN BANCORP INC.
-----------------------------------
(Registrant)
Date: April 23, 1997 By: /s/ Arlyn D. Rus
------------------------------
Arlyn D. Rus
Chairman, President and
Chief Executive Officer
Director
Date: April 23, 1997 By: /s/ Thomas F. Tansey
------------------------------
Thomas F. Tansey
Executive Vice President
Chief Operating Officer &
Treasurer
Director
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