<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 1996
Commission file number 33-29708
-----------------------------------------------------------------
SUMMIT BANCORP
-----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Ohio 34-1599501
- ----------------------------- -----------------------
(State or other jurisdiction) (IRS Employer I.D. No.)
2680 West Market Street, Akron, Ohio 44333
-------------------------------------------
(Address of principal executive office)
(330) 864-8080
---------------------------
(Issuer's telephone number)
Check whether the issuer (1) 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, and (2) has been subject to such filing requirements for the past 90
days. Yes X No
--- ---
As of November 11, 1996 there were outstanding 234,806 shares, without par
value, of the Company's common stock.
Transitional Small Business Disclosure Format (Check One)
Yes No X
--- ---
Page 1 of 15
<PAGE> 2
SUMMIT BANCORP AND SUBSIDIARIES
Index
Page Number
-----------
PART I. FINANCIAL INFORMATION
- ------------------------------
ITEM 1. UNAUDITED FINANCIAL STATEMENTS
Consolidated Condensed Balance Sheets 3
Consolidated Statements of Income 4
Consolidated Statements of Cash Flows 5
Notes to Consolidated Financial Statements 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 9
PART II. OTHER INFORMATION
- --------------------------
ITEMS 1. through 6. 13
SIGNATURES 14
Page 2 of 15
<PAGE> 3
SUMMIT BANCORP
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1996 1995
------------------------------
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 2,906,886 $ 3,432,431
Investment securities available-for-sale
at fair market value 18,734,468 18,949,702
Mortgage loans originated and held for sale 1,760,821 1,768,019
Loans:
Commercial 33,857,477 29,783,039
Residential mortgages 11,980,291 12,123,794
Consumer 8,395,264 7,409,183
------------------------------
Total loans 54,233,032 49,316,016
Less allowance for loan losses 842,709 739,062
------------------------------
Net loans 53,390,323 48,576,954
Premises and equipment, net 831,980 748,768
Accrued interest and other assets 1,594,104 1,089,448
------------------------------
TOTAL ASSETS $ 79,218,582 $ 74,565,322
==============================
LIABILITIES:
Deposits:
Non interest bearing demand $ 8,344,024 $ 9,309,067
Interest bearing deposits 56,132,042 52,287,696
------------------------------
Total deposits 64,476,066 61,596,763
Borrowings 6,935,000 5,650,000
Accrued interest payable and other liabilities 883,200 663,760
------------------------------
TOTAL LIABILITIES 72,294,266 67,910,523
SHAREHOLDERS' EQUITY:
Common Stock, no par value,
3,000,000 shares authorized,
256,190 shares issued 6,154,447 6,125,647
Retained earnings 1,603,816 1,007,016
Treasury Stock, at cost, 21,379 shares
held at September 30,1996 and
16,179 at December 31, 1995 (694,876) (512,532)
Securities equity valuation account (139,071) 34,668
------------------------------
TOTAL SHAREHOLDERS' EQUITY 6,924,316 6,654,799
------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 79,218,582 $ 74,565,322
==============================
</TABLE>
See notes to consolidated financial statements.
Page 3 of 15
<PAGE> 4
SUMMIT BANCORP
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------------------------------------------
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INTEREST INCOME:
Loans $1,320,752 $1,036,430 $3,764,249 $3,063,577
Investments and mortgage backed securities 312,890 322,255 883,748 879,466
Other investments 3,260 20,746 11,900 29,644
--------------------------------------------------------
TOTAL INTEREST INCOME 1,636,902 1,379,431 4,659,897 3,972,687
INTEREST EXPENSE:
Deposits 699,691 609,342 1,989,362 1,554,494
Other borrowings 83,959 108,217 241,886 338,150
--------------------------------------------------------
TOTAL INTEREST EXPENSE 783,650 717,559 2,231,248 1,892,644
--------------------------------------------------------
NET INTEREST INCOME 853,252 661,872 2,428,649 2,080,043
Provision for loan losses 45,000 25,000 110,000 100,000
--------------------------------------------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 808,252 636,872 2,318,649 1,980,043
NON-INTEREST INCOME:
Origination fees on loans sold 231,660 201,835 682,329 586,956
Customer service fees 47,585 21,994 135,765 91,174
Commissions 34,494 15,382 81,796 46,139
Net gain on sales of securities 759 34,494 33,072 33,700
Other income 3,509 20,198 15,119 36,341
--------------------------------------------------------
TOTAL NON-INTEREST INCOME 318,007 293,903 948,081 794,310
NON-INTEREST EXPENSE:
Salaries and employee benefits 451,657 382,821 1,266,424 1,069,062
Net occupancy expense 59,876 43,688 165,344 130,346
Depreciation and amortization 45,181 55,680 137,330 156,350
Professional services 50,083 55,550 124,662 144,834
EDP and communications 89,530 80,145 264,511 205,972
Ohio franchise tax 24,807 19,835 73,190 61,280
FDIC insurance 1,000 (3,333) 2,000 53,838
Other operating costs 113,730 51,247 332,973 246,572
--------------------------------------------------------
TOTAL NON-INTEREST EXPENSE 835,864 685,633 2,366,434 2,068,254
--------------------------------------------------------
INCOME BEFORE INCOME TAXES 290,395 245,142 900,296 706,099
Provision for income taxes 94,000 68,000 303,500 209,000
--------------------------------------------------------
NET INCOME $ 196,395 $ 177,142 $ 596,796 $ 497,099
========================================================
Net income per share $ 0.85 $ 0.73 $ 2.56 $ 2.03
========================================================
Weighted average shares outstanding 231,815 242,695 232,751 245,323
========================================================
</TABLE>
See notes to consolidated financial statements.
Page 4 of 15
<PAGE> 5
SUMMIT BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
FOR THE NINE MONTHS ENDED
SEPTEMBER 30,
1996 1995
------------------------------
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Net income $ 596,796 $ 497,099
Adjustments to reconcile net income
to net cash from operating activities:
Provision for loan losses 110,000 100,000
Depreciation and amortization 137,330 156,350
Amortization of securities available for sale premiums, net 103,227 51,125
Amortization of securities held to maturity premiums, net -- (5,698)
Investment and mortgage backed securities net loss/(gain) (33,072) (33,700)
FHLB stock dividends received (49,300) (55,300)
Deferred income taxes 8,835 6,937
Mortgage loans originated for sale (27,869,689) (22,971,783)
Proceeds from the sale of loan originations 27,876,887 22,429,796
Changes in:
Accrued interest receivable and other assets (340,278) (479,289)
Accrued interest payable and other liabilities 219,440 288,262
------------------------------
NET CASH FROM OPERATING ACTIVITIES 760,176 (16,201)
CASH FLOWS USED BY INVESTING ACTIVITIES:
Purchases of securities held to maturity -- (5,036,938)
Purchases of securities available for sale (12,489,661) (117,700)
Proceeds from the sales of securities held to maturity -- 2,014,455
Proceeds from the sales of securities available for sale 8,317,665 1,964,340
Proceeds from maturities of securities held to maturity -- 349,725
Proceeds from maturities of securities available for sale 4,040,292 1,475,722
Net increase in loans (4,923,369) (5,491,082)
Purchase of premises and equipment (212,608) (110,624)
------------------------------
NET CASH USED BY INVESTING ACTIVITIES (5,267,680) (4,952,102)
CASH FLOWS FROM FINANCING ACTIVITIES:
Deposits 2,879,303 5,073,853
Purchase of treasury stock (182,344) (347,953)
Proceeds from the sale of treasury stock -- 29,974
Short term borrowings 1,285,000 (340,074)
------------------------------
NET CASH FROM FINANCING ACTIVITIES 3,981,959 4,415,800
------------------------------
Net change in cash and cash equivalents (525,545) (552,503)
Cash and cash equivalents at the beginning of the period 3,432,431 2,650,639
------------------------------
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD $ 2,906,886 $ 2,098,136
==============================
</TABLE>
See notes to consolidated financial statements.
Page 5 of 15
<PAGE> 6
SUMMIT BANCORP AND SUBSIDIARIES
Notes to Consolidated Financial Statements
For the Nine Months Ended September 30, 1996 and 1995
(UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The unaudited consolidated financial statements include the accounts of Summit
Bancorp and its wholly owned subsidiaries, Summit Bank and Summit Banc
Investments Corporation. All significant intercompany transactions have been
eliminated.
These accompanying unaudited interim consolidated financial statements have been
prepared in accordance with the instructions of Form 10-QSB and therefore do not
include all information and footnotes necessary for a fair presentation of
financial position, results of operations, and cash flows in conformity with
generally accepted accounting principles. All adjustments which are in the
opinion of management necessary for a fair statement of the financial statements
for the periods covered by this report have been included. All such adjustments
are of a normal recurring nature.
The consolidated financial statements included herein should be read in
conjunction with the consolidated financial statements and notes thereto, and
the Report of Independent Auditors included in Summit Bancorp's Annual Report on
Form 10-KSB for the fiscal year ended December 31, 1995. Reference is made to
the accounting policies of Summit Bancorp described in the notes to financial
statements contained in the Company's Annual Report on Form 10-KSB for the
fiscal year ended December 31, 1995. Summit Bancorp has consistently followed
those policies in preparing this report. Certain items from 1995 have been
reclassified to conform to the 1996 presentation.
The provision for income taxes is based upon the effective tax rate expected to
be applicable for the entire year.
Earnings per share is computed based on the weighted average shares outstanding
during the year. Stock options outstanding do not presently have a dilutive
effect of greater than 3% on net income per share.
The Company, through its subsidiary bank, grants residential, consumer, and
commercial loans to customers located in Northern Ohio. Residential mortgage,
commercial and consumer loans comprise 22.2%, 62.3%, and 15.5% of total loans at
September 30, 1996.
The Company in its normal course of business, makes commitments to extend credit
which are not reflected in the financial statements. At September 30, 1996,
unused credit lines amounted to approximately $10,500,000. Since many
commitments to make loans expire without being used, the amount does not
necessarily represent future cash commitments.
Page 6 of 15
<PAGE> 7
Collateral obtained related to the commitments is determined using management's
credit evaluation of the borrower and may include real estate, vehicles,
business assets, deposits, and other items. In management's opinion these
commitments represent normal banking transactions, and no material losses are
expected to result therefrom.
NOTE B - INVESTMENT AND MORTGAGE BACKED SECURITIES
The amortized cost and estimated market values of investment securities are as
follows:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Estimated
Cost Gains Losses Fair Value
----------------------------------------------------
<S> <C> <C> <C> <C>
SEPTEMBER 30, 1996
SECURITIES AVAILABLE FOR SALE:
Mortgage-backed securities $12,770,537 $ -- $193,456 $12,577,081
Federal agencies 2,997,594 -- 25,720 2,971,874
Other debt security 54,668 -- 5,467 49,201
U.S. Treasuries obligations 1,996,730 8,582 -- 2,005,312
----------------------------------------------------
Total debt securities available for sale 17,819,529 8,582 224,643 17,603,468
Other securities 1,131,000 -- -- 1,131,000
----------------------------------------------------
Total securities available for sale $18,950,529 $ 8,582 $224,643 $18,734,468
====================================================
DECEMBER 31, 1995
SECURITIES AVAILABLE FOR SALE:
Mortgage-backed securities $15,709,878 $101,913 $ 31,575 $15,780,216
Other debt security 107,987 4,225 -- 112,212
U.S. Treasuries obligations 1,994,908 39,466 -- 2,034,374
----------------------------------------------------
Total debt securities available for sale 17,812,773 145,604 31,575 17,926,802
Other securities 1,022,900 -- -- 1,022,900
----------------------------------------------------
Total securities available for sale $18,835,673 $145,604 $ 31,575 $18,949,702
====================================================
</TABLE>
During the third quarter of 1996, the Company sold three available for sale
securities totaling $1,905,392. Gains on securities sold totaled $7,800 and
losses totaled $6,700. Proceeds from these sales were reinvested in available
for sale securities, consisting of mortgage backed securities and federal
agencies. Second quarter purchases totaled $3,293,468. Third quarter purchases
totaled $2,000,000.
Page 7 of 15
<PAGE> 8
The amortized cost and estimated fair value of debt securities at September 30,
1996, by contractual maturity, are shown below. Actual maturities may differ
from contractual maturities because borrowers may have the right to call or
prepay obligations.
<TABLE>
<CAPTION>
Amortized Estimated
Cost Fair Value
---------------------------
<S> <C> <C>
SECURITIES AVAILABLE FOR SALE:
- ------------------------------
Due within 1 year $ 640,223 $ 638,542
Due after 1 year through 5 years 6,191,014 6,152,031
Due after 5 years through 10 years 6,076,112 5,993,560
Due after 10 years 4,912,180 4,819,335
Other securities 1,131,000 1,131,000
---------------------------
TOTAL SECURITIES AVAILABLE FOR SALE $18,950,529 $18,734,468
===========================
</TABLE>
NOTE C - ALLOWANCE FOR LOAN LOSSES
Changes in the allowance for loan losses for the nine month periods ending
September 30, 1996 and 1995 were as follows:
<TABLE>
<CAPTION>
1996 1995
------------------------
<S> <C> <C>
Balance at beginning of period $ 739,062 $ 618,788
Charge-offs (46,104) (63,638)
Recoveries 39,751 78,952
Provision for loan losses 110,000 100,000
------------------------
Balance at end of period $ 842,709 $ 734,102
========================
</TABLE>
Page 8 of 15
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
INTRODUCTION
The purpose of this discussion is to focus on information about Summit
Bancorp ("Company"), its financial condition and results of operations which is
not otherwise apparent from the consolidated financial statements. This
discussion should be read in conjunction with the interim consolidated financial
statements and footnotes included in this Form 10-QSB. The Company is not aware
of any market or institutional trends, events or uncertainties that will have or
are reasonably likely to have a material effect on liquidity, capital resources
or operations except as discussed herein. The Company is not aware of any
current recommendations by regulatory authorities which would have such effect
if implemented.
SOURCES AND USES OF FUNDS
The Company functions as a financial intermediary, and as such, its
financial condition should be examined in terms of trends in its sources and
uses of funds. The Company uses its funds primarily to support its lending
activities. Year to date in 1996, total loans have increased $4.9 million to
$54.2 million and represent 72% of earning assets. Commercial loans grew $4.1
million (a 14% increase), residential mortgages decreased $.1 million (1%) and
other loans increased $.9 million (13%) when compared to December 31, 1995
balances.
Investment and mortgage backed securities, a major use of funds, overall
remained relatively unchanged during the first nine months of 1996. Security
purchases were offset by sales and maturities. The investment portfolio of $18.7
million represents 25% of earning assets at September 30, 1996. The balance of
mortgage loans originated and held for sale is unchanged from December 31, 1995.
These loans are normally held less than 30 days before they are sold to private
investors and FNMA. Loans originated for sale were $27.9 million during the
first nine months of 1996 ($23 million for the first nine months of 1995).
As the primary source of funds, deposits have increased $2.9 million when
compared to the December 31, 1995 balances. Demand deposits have declined $1
million (10%) year to date when compared to December 31, 1995. Interest bearing
deposits have grown $3.9 million (7%) year to date. The cost to acquire retail
deposits compared to market indices, such as US Treasury rates, has increased in
1996 due to competitive pressures; consequently, the Company has chosen to
increase its use of wholesale funds in 1996 to control the cost to fund earning
assets. Wholesale funds represent 10.9% of the total funding at September 30,
1996 compared to 5.6% at December 31, 1995. The Company's cost to fund earning
assets averaged 4.06% during the first nine months of 1996 which is comparable
to 4.0% for the same period for 1995.
Page 9 of 15
<PAGE> 10
LIQUIDITY
The primary functions of asset/liability management are to assure adequate
liquidity and maintain an appropriate balance between interest-sensitive earning
assets and interest-bearing liabilities. Liquidity management involves the
ability to meet the cash flow requirements of customers who may be either
depositors wanting to withdraw funds or borrowers needing assurance that
sufficient funds will be available to meet their credit needs. Interest rate
sensitivity management seeks to avoid fluctuating net interest margins and to
enhance consistent growth of net interest income through periods of changing
interest rates.
Investment securities available for sale are a primary source of liquidity.
Projected cash flow from the securities portfolio between October 1, 1996 and
December 31, 1997 is $6.2 million. Other types of assets, such as mortgages held
for sale and maturing loans are sources of liquidity. Liquidity is further
enhanced because of the significant aggregate amount of core deposits.
Additionally, the Company has available lines of credit aggregating $11.2
million which enhance liquidity. Advances on these lines total $4.9 million at
September 30, 1996.
CAPITAL RESOURCES
The Company maintains a strong capital base to take advantage of business
opportunities while ensuring that it has resources to absorb the risks inherent
in the business. The Federal Reserve Board has set standards for measuring
capital adequacy for U.S. banking organizations. In general, the standards
require banks and bank holding companies to maintain capital based on
"risk-adjusted" assets so that categories of assets with potentially higher
credit risk will require more capital backing than assets with lower risk. In
addition, banks and bank holding companies are required to maintain capital to
support, on a risk-adjusted basis, certain off-balance-sheet activities such as
loan commitments and interest rate swaps.
The Federal Reserve Board standards classify capital into two tiers,
referred to as Tier 1 and Tier 2. Tier 1 capital consists of common
shareholders' equity, noncumulative and cumulative (bank holding companies only)
perpetual preferred stock, and minority interests less goodwill. Tier 2 capital
consists of allowance for loan and lease losses, perpetual preferred stock (not
included in Tier 1), hybrid capital instruments, term subordinated debt, and
intermediate-term preferred stock. Banks are required to meet a minimum ratio of
8% of qualifying total capital to risk-adjusted total assets with at least 4%
Tier 1 capital. Capital that qualifies as Tier 2 capital is limited to 100% of
Tier 1 capital.
Page 10 of 15
<PAGE> 11
Federal Reserve Board regulations have also established a minimum leverage
capital ratio of 3%. The leverage capital ratio is defined as Tier 1 capital to
total average assets. The FDIC defines a well capitalized bank as exceeding Tier
1 capital of 6%, Tier 2 capital of 10% and a leverage ratio of 5%. The table
below illustrates the Company's subsidiary bank's regulatory capital ratios:
<TABLE>
<CAPTION>
SEPTEMBER 30, 1996 DECEMBER 31, 1995
-------------------------------------
<S> <C> <C>
(Thousands of dollars)
Tier 1 Capital $ 6,920 $ 6,541
Tier 2 Capital 843 739
-------------------------
Total Qualifying Capital $ 7,763 $ 7,280
=========================
Risk Adjusted Total Assets
(including off-balance sheet exposures) $51,927 $49,881
=========================
Tier 1 Risk-Based Capital Ratio 13% 13%
Total Risk-Based Capital Ratio 15% 15%
Leverage Ratio 9% 9%
</TABLE>
The ability of the Company to pay dividends is dependent upon the Bank
paying dividends to the Company. These payments by the Bank are restricted by
the regulatory agencies. For the nine months ended September 30, 1996, the Bank
has paid $300,000 in dividends to the Company. The Bank has accumulated earnings
of $1.7 million available for distribution to the Company. To date the Company
has decided to reinvest earnings rather than pay a dividend to shareholders.
Dividends to the Company have been used to purchase treasury stock.
REGULATORY MATTERS
Examination procedures require examiners to make judgements about a
borrower's ability to repay loans, sufficiency of collateral values and the
effects of changing economic circumstances. These judgements are similar to
those employed by the Company in determining the adequacy of the allowance for
loan losses and in classifying loans. Judgements made by regulatory examiners
may differ from those made by management.
Management and the boards of directors of the Company and Bank evaluate
existing practices and procedures on an ongoing basis. In addition, regulators
often make recommendations during the course of their examinations that relate
to the operations of the Company and its subsidiary. As a matter of practice,
management and the boards of directors of the Company and its subsidiaries
consider such recommendations promptly.
During September 1996, the Federal Reserve Bank of Cleveland conducted an
examination of the Company and its subsidiaries, which included an evaluation of
the Bank's asset quality. The Bank's level and classification of identified
potential problem loans is not expected to be revised as a result of this
regulatory examination.
Page 11 of 15
<PAGE> 12
RESULTS OF OPERATIONS
The Company's net interest margin year to date 1996 is 4.17% compared to
4.20% for the same period in 1995. The net interest margin is calculated by
dividing net interest income before the provision for loan losses by average
earning assets. As with net interest income, the net interest margin is affected
by the level and mix of earning assets, the proportion of earning assets funded
by noninterest bearing liabilities and the interest rate spread.
Year to date net interest income before the provision for loan losses has
increased $345,000 over the same period in the prior year. Net interest income
increased $420,000 due to volume changes and decreased $75,000 due to rate
changes. For the first nine months of 1996 in comparison with the same period in
1995, average earning assets increased $10.1 million. Average total loans and
investments grew $9.9 million and $.6 million, respectively. Average interest
bearing deposit balances for 1996 have declined $.4 million compared to the
first nine months of 1995. Growth in earning assets was funded primarily by an
increase of $11.1 million in average deposits. The yield on earning assets was
8.50% during the first nine months of 1996 and 1995. Deposits and borrowings had
an average rate of 4.31% in the first nine months of 1996 compared to 4.23%
during the same period in 1995.
Noninterest income increased $154,000 year to date 1996 in comparison to
1995. The increase resulted primarily from the growth in mortgage loan
originations and gains from the sale of SBA guaranteed loans. During the first
nine months of 1996, originations totaled $27.9 million compared to $23 million
in 1995.
1996 year to date total noninterest expenses have increased $325,000 in
comparison to the same period in 1995. The increase is primarily the result of
additional personnel to staff the new financial center in Hudson, Ohio, Hudson
facility costs, the addition of four loan officers in the Fairlawn office and
increased data processing costs related to the use of enhanced technologies,
such as Summit Bank's new P.C. based funds management system.
The Federal Deposit Insurance Corporation (FDIC) has reduced deposit
insurance premiums year to date in 1996 in response to the deposit insurance
fund reaching its required funding level of $1.25 per $100 of deposits during
the second quarter of 1995. Year to date FDIC insurance costs have totaled
$2,000 compared to $54,000 for the same period in 1995.
Page 12 of 15
<PAGE> 13
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 SECURITY HOLDERS -
Not applicable
ITEM 5. OTHER INFORMATION - Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
A) Exhibit #27. Financial Data Schedule.
B) Reports on Form 8-K. No report on Form 8-K was
filed during the quarter ended September 30, 1996.
Page 13 of 15
<PAGE> 14
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
SUMMIT BANCORP
Dated: November 14, 1996 By: /s/ David C. Vernon
------------------------------------------
David C. Vernon
Chairman of the Board, President and
Chief Executive Officer
By: /s/ Jon W. Park
------------------------------------------
Jon W. Park
Vice President and Chief Financial Officer
Page 14 of 15
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 90,778
<INT-BEARING-DEPOSITS> 43,586
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 18,734,468
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 54,233,032
<ALLOWANCE> 842,709
<TOTAL-ASSETS> 79,218,582
<DEPOSITS> 64,476,066
<SHORT-TERM> 4,935,000
<LIABILITIES-OTHER> 883,200
<LONG-TERM> 2,000,000
<COMMON> 6,154,447
0
0
<OTHER-SE> 769,869
<TOTAL-LIABILITIES-AND-EQUITY> 79,218,582
<INTEREST-LOAN> 3,764,249
<INTEREST-INVEST> 883,748
<INTEREST-OTHER> 11,900
<INTEREST-TOTAL> 3,972,687
<INTEREST-DEPOSIT> 1,989,362
<INTEREST-EXPENSE> 2,231,248
<INTEREST-INCOME-NET> 2,428,649
<LOAN-LOSSES> 110,000
<SECURITIES-GAINS> 33,072
<EXPENSE-OTHER> 2,366,434
<INCOME-PRETAX> 900,296
<INCOME-PRE-EXTRAORDINARY> 900,296
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 596,796
<EPS-PRIMARY> 2.56
<EPS-DILUTED> 2.50
<YIELD-ACTUAL> 4.39
<LOANS-NON> 114,000
<LOANS-PAST> 24,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 1,674,531
<ALLOWANCE-OPEN> 739,062
<CHARGE-OFFS> 46,104
<RECOVERIES> 39,751
<ALLOWANCE-CLOSE> 842,709
<ALLOWANCE-DOMESTIC> 647,368
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 195,341
</TABLE>
