<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 June 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 August 5, 1996 there were outstanding 232,011 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 SUBSIDIARY
Index
<TABLE>
<CAPTION>
Page Number
-----------
<S> <C> <C>
PART I. FINANCIAL INFORMATION
ITEM 1. UNAUDITED FINANCIAL STATEMENTS
Consolidated Condensed Balance Sheets 3
Consolidated Statements
of Income 5
Consolidated Statements
of Cash Flows 6
Notes to Consolidated
Financial Statements 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS 10
PART II. OTHER INFORMATION
ITEMS 1. through 6. 14
SIGNATURES 15
</TABLE>
Page 2 of 15
<PAGE> 3
SUMMIT BANCORP
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
-------------------------------------------
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 2,646,739 $ 3,432,431
Investments securities available-for-sale at fair value 19,775,753 18,949,702
Mortgage loans originated and held for sale 1,586,697 1,768,019
Loans
Commercial 32,493,758 29,783,039
Real estate mortgage 11,897,724 12,123,794
Other 9,465,496 7,409,183
-------------------------------------------
Total loans 53,856,978 49,316,016
Less allowance for loan losses 812,442 739,062
-------------------------------------------
Net loans 53,044,536 48,576,954
Premises and equipment, net 861,299 748,768
Accrued interest and other assets 1,437,623 1,089,448
-------------------------------------------
TOTAL ASSETS $ 79,352,647 $ 74,565,322
===========================================
</TABLE>
Page 3 of 15
<PAGE> 4
SUMMIT BANCORP
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
-------------------------------------------
LIABILITIES:
<S> <C> <C>
Deposits
Non interest bearing demand $ 8,182,217 $ 9,309,067
Interest bearing deposits 56,538,014 52,287,696
-------------------------------------------
Total deposits 64,720,231 61,596,763
Borrowings 7,300,000 5,650,000
Accrued interest payable and other liabilities 669,515 663,760
-------------------------------------------
Total liabilities 72,689,746 67,910,523
STOCKHOLDERS' EQUITY:
Common Stock, no par value,
3,000,000 shares authorized,
252,590 shares issued 6,125,647 6,125,647
Retained earnings 1,407,418 1,007,016
Treasury Stock, at cost, 20,179 shares held at
June 30,1996 and 16,179 at December 31, 1995 (650,626) (512,532)
Securities equity valuation account (219,538) 34,668
-------------------------------------------
Total shareholders' equity 6,662,901 6,654,799
-------------------------------------------
Total liabilities and shareholders' equity $ 79,352,647 $ 74,565,322
===========================================
</TABLE>
See notes to consolidated financial statements.
Page 4 of 15
<PAGE> 5
SUMMIT BANCORP
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
JUNE 30, JUNE 30,
1996 1995 1996 1995
---- ---- ---- ----
INTEREST INCOME
<S> <C> <C> <C> <C>
Loans $ 1,260,150 $ 1,047,706 $ 2,447,497 $ 2,027,147
Investments and mortgage-backed securities 287,305 307,179 570,858 557,211
Other investments 4,650 5,023 8,640 8,897
--------------------------------------------------------------------
TOTAL INTEREST INCOME 1,552,105 1,359,908 3,026,995 2,593,256
--------------------------------------------------------------------
INTEREST EXPENSE
Deposits 666,126 500,443 1,289,671 945,152
Other borrowings 73,215 153,861 157,927 229,993
--------------------------------------------------------------------
TOTAL INTEREST EXPENSE 739,341 654,310 1,447,598 1,175,085
--------------------------------------------------------------------
NET INTEREST INCOME 812,764 705,598 1,579,397 1,418,171
PROVISION FOR LOAN LOSSES 35,000 45,000 65,000 75,000
--------------------------------------------------------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 777,764 660,598 1,514,397 1,343,171
NON-INTEREST INCOME
Origination fees on loans sold 192,987 257,448 446,669 385,121
Customer service fees 41,594 41,428 88,180 69,180
Commissions 27,772 12,075 47,302 30,757
Net gain (loss) on sales of securities 0 (794) 32,313 (794)
Other income 5,433 7,767 11,610 16,143
--------------------------------------------------------------------
Total non-interest income 267,786 317,924 626,074 500,407
--------------------------------------------------------------------
NON-INTEREST EXPENSE
Salaries and employee benefits 405,117 376,667 814,767 686,241
Net occupancy expense 58,749 46,939 105,468 86,658
Depreciation and amortization 43,133 51,224 92,149 100,670
Professional services 33,337 49,657 70,529 89,284
EDP and communications 93,196 64,922 174,981 125,827
Ohio franchise tax 24,614 20,225 48,383 41,445
FDIC insurance 500 28,585 1,000 57,171
Other operating costs 108,894 105,285 223,293 195,325
--------------------------------------------------------------------
TOTAL NON-INTEREST EXPENSE 767,540 743,504 1,530,570 1,382,621
INCOME BEFORE INCOME TAXES 278,010 235,018 609,901 460,957
Federal income taxes 89,500 74,100 209,500 141,000
--------------------------------------------------------------------
NET INCOME $ 188,510 $ 160,918 $ 400,401 $ 319,957
=====================================================================
Net income per share $ 0.81 $ 0.66 $ 1.72 $ 1.30
=====================================================================
Weighted average shares outstanding 232,784 245,676 233,224 246,515
====================================================================
</TABLE>
See notes to consolidated financial statements.
Page 5 of 15
<PAGE> 6
SUMMIT BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
For the Six Months Ended
June 30,
1996 1995
-----------------------------------------
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Net income $ 400,401 $ 319,957
Adjustments to reconcile net income
to net cash from operating activities:
Provision for loan losses 65,000 75,000
Depreciation and amortization 92,149 100,670
Amortization of securities available for sale premiums, net 76,113 22,794
Amortization of securities held to maturity premiums, net - (3,226)
Investment and mortgage backed securities net loss/(gain) (32,313) 794
FHLB stock dividends received (32,100) (25,800)
Deferred income taxes (4,557) 9,215
Mortgage loans originated for sale (19,780,499) (13,346,655)
Proceeds from the sale of loan originations 19,961,821 13,200,018
Changes in:
Accrued interest receivable and other assets (149,103) (273,802)
Accrued interest payable and other liabilities 5,755 21,739
-----------------------------------------
NET CASH FROM OPERATING ACTIVITIES 602,667 100,704
CASH FLOWS USED BY INVESTING ACTIVITIES:
Purchases of securities held to maturity - (5,036,938)
Purchases of securities available for sale (10,503,880) (117,700)
Proceeds from the sales of securities available for sale 6,228,121 1,964,340
Proceeds from maturities of securities held to maturity - 249,728
Proceeds from maturities of securities available for sale 2,983,080 622,234
Net increase in loans (4,532,582) (3,172,559)
Purchase of premises and equipment (198,473) (47,485)
-----------------------------------------
NET CASH USED BY INVESTING ACTIVITIES (6,023,733) (5,538,380)
CASH FLOWS FROM FINANCING ACTIVITIES:
Deposits 3,123,468 1,308,957
Purchase of treasury stock (138,094) (215,905)
Proceeds from the sale of treasury stock - 29,974
Increase in short term borrowings 1,650,000 4,962,000
-----------------------------------------
NET CASH FROM FINANCING ACTIVITIES 4,635,374 6,085,026
-----------------------------------------
Net change in cash and cash equivalents (785,692) 647,350
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 $ 2,646,739 $ 3,297,989
=========================================
</TABLE>
See notes to consolidated financial statements.
Page 6 of 15
<PAGE> 7
SUMMIT BANCORP AND SUBSIDIARY
Notes to Consolidated Financial Statements
For the Six months Ended June 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 subsidiary, Summit Bank. 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 20.3%, 65%, and 14.6% of total loans at
June 30, 1996.
The Company in its normal course of business, makes commitments to extend credit
which are not reflected in the financial statements. At June 30, 1996, unused
credit lines amounted to approximately $11,300,000. Since many commitments to
make loans expire without being used, the amount does not necessarily represent
future cash commitments.
Page 7 of 15
<PAGE> 8
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
-----------------------------------------------------------------
JUNE 30, 1996
SECURITIES AVAILABLE FOR SALE:
<S> <C> <C> <C> <C>
Mortgage-backed securities $ 14,922,820 $ - $ 302,319 $ 14,620,501
Federal agencies 2,016,391 - 38,579 1,977,812
Other debt security 62,451 564 - 63,015
U.S. Treasuries obligations 1,993,684 6,941 - 2,000,625
-----------------------------------------------------------------
Total debt securities available for sale 18,995,346 7,505 340,898 18,661,953
Other securities 1,113,800 - - 1,113,800
-----------------------------------------------------------------
Total securities available for sale $20,109,146 $ 7,505 $ 340,898 $ 19,775,753
=================================================================
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 first quarter of 1996, the Company sold five available for sale
securities totaling $6,228,121. Gains on securities sold totaled $32,313. There
were no losses. Proceeds from these sales were reinvested in available for sale
securities, consisting of mortgage backed securities and federal agencies. First
quarter purchases totaled $7,210,412. Second quarter purchases totaled
$3,293,468.
Page 8 of 15
<PAGE> 9
The amortized cost and estimated fair value of debt securities at June 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
-----------------------------------
SECURITIES AVAILABLE FOR SALE:
- ------------------------------
<S> <C> <C> <C>
Due within 1 year $ 1,218,704 $ 1,211,516
Due after 1 year through 5 years 6,326,327 6,286,004
Due after 5 years through 10 years 5,105,286 4,994,641
Due after 10 years 6,345,029 6,169,792
Other securities 1,113,800 1,113,800
-----------------------------------
TOTAL SECURITIES AVAILABLE FOR SALE $ 20,109,146 $ 19,775,753
====================================
</TABLE>
NOTE C - ALLOWANCE FOR LOAN LOSSES
Changes in the allowance for loan losses for the six month periods ending June
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 (30,853) (63,638)
Recoveries 39,233 69,933
Provision for loan losses 65,000 75,000
-----------------------------------
Balance at end of period $ 812,442 $ 700,083
===================================
</TABLE>
Page 9 of 15
<PAGE> 10
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 $4.5 million to
$53.9 million and represented 72% of earning assets. Commercial loans grew $2.7
million (a 9% increase), residential mortgages decreased $.2 million (2%) and
other loans increased $2 million (28%) when compared to December 31, 1995
balances.
Investment and mortgage backed securities, a major use of funds,
overall remained relatively unchanged during the first six months of 1996.
Security purchases were offset by sales and maturities. The investment portfolio
of $19.8 million represents 27% of earning assets at June 30, 1996. The balance
of mortgage loans originated and held for sale decreased $.2 million 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 $19.8
million during the first half of 1996 ($13.3 million for the first half of
1995).
As the primary source of funds, deposits have increased $3.1 million
when compared to the December 31, 1995 balances. Demand deposits have declined
$1.1 million (12%) year to date when compared to December 31, 1995. Interest
bearing deposits have grown $4.2 million (8%) year to date. The Company's cost
to fund earning assets averaged 4.02% during the first six months of 1996. The
same period for 1995 averaged 3.89%. Increases in rates for time deposits, which
followed similar market rate increases for U.S. Treasuries, was the most
significant factor contributing to the increase in cost of funds.
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
Page 10 of 15
<PAGE> 11
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 within one year of
June 30, 1996 is $5.3 million, and an additional $5.0 million within two years.
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. The Company does not rely heavily on brokered
deposits or large certificates of deposit as a significant source of funds.
Additionally, the Company has available lines of credit aggregating $11.2
million which enhance liquidity. Advances on these lines total $5.3 million at
June 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 11 of 15
<PAGE> 12
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>
June 30, 1996 December 31, 1995
--------------------------------------------
(Thousands of dollars)
<S> <C> <C>
Tier 1 Capital $ 6,659 $ 6,541
Tier 2 Capital 659 739
-------------------------------------
Total Qualifying Capital $ 7,318 $ 7,280
=====================================
Risk Adjusted Total Assets
(including off-balance sheet exposures) $ 52,592 $ 49,881
=====================================
Tier 1 Risk-Based Capital Ratio 13% 13%
Total Risk-Based Capital Ratio 14% 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 six months ended June 30, 1996, the Bank has
paid $300,000 in dividends to the Company. The Bank has accumulated earnings of
$1.5 million available for distribution to the Company. To date the Company has
decided to reinvest earnings rather than pay a dividend to shareholders. The
$300,000 dividend to the Company is 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
subsidiary consider such recommendations promptly.
During February 1995, the Ohio Division of Banks completed an
examination at the Company's subsidiary Bank, which included an evaluation of
the Bank's asset quality. The Bank's level and classification of identified
potential problem loans was not revised as a result of this regulatory
examination process. The next scheduled examination has been set for September
1996 by the Federal Reserve Bank of Cleveland.
Page 12 of 15
<PAGE> 13
RESULTS OF OPERATIONS
The Company's net interest margin year to date 1996 is 4.19% compared
to 4.40% 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 $161,225 over the same period in the prior year. Net interest
income increased $261,730 due to volume changes and decreased $101,505 due to
rate changes. For the first half of 1996 in comparison with the same period in
1995, average earning assets increased $10.6 million. Average total loans and
investments grew $10 million and $.5 million respectively. Growth in earning
assets was funded primarily by an increase of $11.8 million in average deposits.
The yield on earning assets was 8.41% during the first half of 1996 compared to
8.59% for the same period in 1995. Deposits and borrowings had an average rate
of 4.26% in the first half of 1996 compared to 4.09% during the same period in
1995.
Noninterest income increased $125,667 year to date 1996 in comparison
to 1995. The increase resulted primarily from the growth in mortgage loan
originations. During the first half of 1996, originations totaled $19.8 million
compared to $13.3 million in 1995. $5.3 million of the 1996 originations were a
result of a special promotion offered directly to Summit Bank customers to
refinance their existing mortgage loans. Substantially all the loans that
refinanced were those serviced by the Bank, but not held in its loan portfolio.
Therefore, the yield on the mortgage loan portfolio was not affected by this
promotion.
1996 year to date total noninterest expenses have increased $147,949
in comparison to the same period in 1995. The increase is primarily the result
of additional personnel to staff the new investment center in Fairlawn, Ohio and
new financial center in Hudson, Ohio. The financial center offers the Hudson
community a wide variety of banking services and products.
The Federal Deposit Insurance Corporation (FDIC) has waived 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 has totaled $1,000 in
1996 compared to $57,174 for the same period in 1995.
Page 13 of 15
<PAGE> 14
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 -
On April 11, 1996, the Annual Meeting of the
Shareholders of the Company was held. The following
members of the Board of Directors of the Company were
reelected for a two year term expiring in 1998.
<TABLE>
<S> <C> <C> <C> <C>
Charles E. Connor For: 199,535 Withheld: 36,876
Donald J. McDaniel For: 199,535 Withheld: 36,876
John J. Olszeski For: 199,535 Withheld: 36,876
Eva H. Poinar For: 199,535 Withheld: 36,876
Jerry F. Whitmer For: 199,535 Withheld: 36,876
</TABLE>
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 June 30, 1996.
Page 14 of 15
<PAGE> 15
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: August 13, 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 15 of 15
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<EXCHANGE-RATE> 1
<CASH> 63,949
<INT-BEARING-DEPOSITS> 218,993
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 19,775,753
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 53,856,978
<ALLOWANCE> 812,442
<TOTAL-ASSETS> 79,352,647
<DEPOSITS> 64,720,231
<SHORT-TERM> 5,300,000
<LIABILITIES-OTHER> 669,515
<LONG-TERM> 2,000,000
<COMMON> 6,125,647
0
0
<OTHER-SE> 537,254
<TOTAL-LIABILITIES-AND-EQUITY> 79,352,647
<INTEREST-LOAN> 2,447,497
<INTEREST-INVEST> 570,858
<INTEREST-OTHER> 8,640
<INTEREST-TOTAL> 3,026,995
<INTEREST-DEPOSIT> 1,289,671
<INTEREST-EXPENSE> 1,447,598
<INTEREST-INCOME-NET> 1,579,397
<LOAN-LOSSES> 65,000
<SECURITIES-GAINS> 32,313
<EXPENSE-OTHER> 1,530,570
<INCOME-PRETAX> 609,901
<INCOME-PRE-EXTRAORDINARY> 609,901
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 400,401
<EPS-PRIMARY> 1.72
<EPS-DILUTED> 1.68
<YIELD-ACTUAL> 4.19
<LOANS-NON> 132,200
<LOANS-PAST> 75,812
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 739,062
<CHARGE-OFFS> 30,853
<RECOVERIES> 39,233
<ALLOWANCE-CLOSE> 812,442
<ALLOWANCE-DOMESTIC> 619,487
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 192,955
</TABLE>
