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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
October 18, 1996
Carnegie Bancorp
(Exact name of registrant as specified in its charter)
New Jersey 0-2456 22-3257100
- ---------------------------- ------------ --------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
619 Alexander Road, Princeton, New Jersey 08540
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (609) 520-0601
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Item 5. Other Events.
On Thursday, October 18, 1996, the Registrant issued a press release
announcing its results of operations for the three and nine month periods ended
September 30, 1996, as well as an increase in its quarterly cash dividend.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Carnegie Bancorp has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CARNEGIE BANCORP
(Registrant)
Dated: October 24, 1996 By: /s/ RICHARD ROSA
-----------------------------
Richard Rosa,
Chief Financial Officer
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EXHIBIT INDEX
CURRENT REPORT ON FORM 8-K
Exhibit No. Description
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99 Press Release dated October 18, 1996 announcing Registrant's results
of operations for the three and nine month periods ended September
30, 1996.
Page 4 of 8
CARNEGIE BANCORP
FOR IMMEDIATE RELEASE
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CARNEGIE INCREASES DIVIDEND,
PURCHASES LOANS & ANNOUNCES THIRD
QUARTER EARNINGS
Princeton, New Jersey--October 18, 1996. Carnegie Bancorp increased its
quarterly cash dividend from $.12 to $.13 per share at its regularly scheduled
Board of Directors meeting on October 16, 1996. The dividend will be paid on
December 18, 1996 to shareholders of record November 20, 1996.
Carnegie also announced that it had purchased $27 million in participations in
commercial and 1-4 family loans from Regent National Bank, with servicing
retained by Regent. These loans were underwritten to Carnegie's underwriting
criteria, yield an average of 8.93% and were, on average, originated 14 months
ago. As part of its proposed acquisition of Regent Bancshares Corp., Carnegie
has conducted extensive due diligence on Regent's commercial and residential
loan portfolio. Carnegie anticipates purchasing another $13 million in loan
participations from Regent during the next 30 days, subject to Carnegie's
ongoing diligence on the portfolio. To fund the purchase of these
participations, Carnegie has issued $42.2 million in certificates of deposit
with an average yield of 6.35% and a maturity of seven months.
For the three and nine months ended September 30, 1996, Carnegie had net income
before provision for loan losses of $859,000 and $2.4 million, respectively, an
increase of 64.5% and 37.1% over comparable net income before provision for loan
losses in the comparable periods of 1995. However, in connection with the loan
participation purchase discussed above, and in recognition of an internally
generated increase in Carnegie's loan portfolio of $19 million, Carnegie took a
provision for loan losses of $668,000 for the period ended September 30, 1996.
Carnegie did not take a provision for loan losses in the comparable period of
1995 due to a moderate level of loan growth during the period. The effect of the
1996 provision was to produce net income after taxes of $418,000, or $.21 per
share on a primary basis and $.20 per share on a fully diluted basis for the
three months ended September 30, 1996, compared to net income of $522,000, or
$.27 per share on both a primary and fully diluted basis, for the comparable
period of 1995, a decrease of 20%. For the nine months ended September 30, 1996
Carnegie had net income after taxes of $1.6 million, or $.80 per share on a
primary basis and $.79 per share on a fully diluted basis, compared to net
income after taxes of $1.6 million, or $.84 per share on a primary basis and
$.83 per share on a fully diluted basis, for the comparable period of 1995. The
change in per share net income between 1996 and 1995 is a result of increased
average shares outstanding.
(continued)
619 Alexander Rd., Princeton, NJ 08540 o 609-520-0601 o Fax 609-520-9722
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Carnegic Bancorp
October 18, 1996 Press Release
Page 2
Attached are Consolidated Condensed Balance Sheets (unaudited) for September 30,
1996 and 1995 and Consolidated Condensed Statements of Income (unaudited for the
three and nine months ended September 30, 1996 and 1995.
The Company's solid earnings occurred even with the recent opening of four new
branch offices in Toms River, Montgomery Township. Flemington, New Jersey and
Langhorne, Pennsylvania, all of which have yet to be operating profitably.
The acquisition of Regent Bancshares Corp., as previously announced, is back on
track as a result of the execution of amendments to the merger agreement.
Shareholders are expected to vote on the merger proposal in January l997. An
April closing is anticipated.
Carnegie Bank, N.A. is the single subsidiary of Carnegie Bancorp. The bank
serves small businesses, professionals and high net worth individuals through
its branch offices located in Princeton, Hamilton, Marlton, Denville, Toms
River, Montgomery Township, Flemington, New Jersey and Langhorne, Pennsylvania.
The Company's stock is listed on the Nasdaq National Market System. Its trading
symbol for common stock is CBNJ and CBNJW for warrants.
FOR FURTHER INFORMATION, PLEASE CONTACT: Thomas L. Gray, Jr., President
(609) 520-0601
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CARNEGIE BANCORP AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
<TABLE>
<CAPTION>
September 30, September 30,
1996 1995
------------- -------------
(000's omitted)
<S> <C> <C>
ASSETS
Cash and cash equivalents:
Cash and due from banks ........................................ $ 16,242 $ 9,459
Federal funds sold ............................................. 5,525 --
-------- --------
Total cash and cash equivalents .......................... 21,767 9,459
-------- --------
Investment Securities:
Available for sale ............................................. 30,027 48,000
Held to maturity (market value $23,308 at September 30,
1996 and $25,624 at September 30, 1995) ...................... 23,656 25,107
-------- --------
Total investment securities .............................. 53,682 73,107
-------- --------
Loans, net of allowance for loan losses of $2,492 at
September 30, 1996 and $1,640 at September 30, 1995 ............ 241,153 145,723
Premises and equipment, net ...................................... 4,099 3,440
Other real estate owned .......................................... 343 --
Accrued interest receivable and other assets ..................... 4,410 3,324
-------- --------
Total Assets ............................................. $325,454 $235,053
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing demand deposits ........................... $ 42,166 $ 38,464
Interest bearing deposits:
Savings deposits ............................................. 73,586 75,582
Other time deposits .......................................... 92,498 56,164
Certificates of deposit $100,000 and over .................... 49,699 41,240
-------- --------
Total deposits ........................................... 257,949 211,450
-------- --------
Short-term borrowings ............................................ 30,000 2,000
Long-term debt ................................................... 14,425 --
Accrued interest payable and other liabilities ................... 1,163 979
-------- --------
Total liabilities ........................................ 303,537 214,429
-------- --------
Commitments and contingencies
Stockholders' equity:
Common stock, no par value, authorized 5,000,000 shares;
issued and outstanding 1,843,926 at September 30, 1996
and 1,751,076 at September 30, 1995 ........................ 9,220 8,755
Capital surplus .............................................. 11,868 10,850
Undivided profits ............................................ 1,226 1,352
Net unrealized holding losses on securities available
for sale ................................................... (397) (333)
-------- --------
Total stockholders' equity .............................. 21,917 20,624
-------- --------
Total Liabilities and Stockholders' Equity .............. $325,454 $235,053
======== ========
</TABLE>
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CARNEGIE BANCORP AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
1996 1995 1996 1995
---- ---- ---- ----
(000's omitted except per share data)
<S> <C> <C> <C> <C>
Interest income:
Loans, Including fees ....................................... $5,210 $3,635 $13,977 $10,854
Federal funds sold .......................................... 18 160 39 469
Investment securities:
Taxable ................................................... 1,007 627 2,813 1,652
Tax-exempt ................................................ 12 244 374 723
------ ------ ------- -------
Total interest income ................................. 6,247 4,666 17,203 13,698
------ ------ ------- -------
Interest expense:
Savings deposits ............................................ 628 704 1,986 2,417
Other time deposits ......................................... 894 970 2,590 2,090
Certificates of deposit $100,000 and over ................... 516 522 1,542 1,549
Borrowed funds .............................................. 644 10 1,346 127
------ ------ ------- -------
Total interest expense ................................ 2,682 2,206 7,464 6,183
------ ------ ------- -------
Net interest income ................................... 3,565 2,460 9,739 7,515
Provision for loan losses ..................................... 666 -- 1,161 242
------ ------ ------- -------
Net interest income after provision
for loan losses ..................................... 2,897 2,460 8,578 7,273
------ ------ ------- -------
Non-interest income:
Service fees on deposits .................................... 108 113 306 332
Other fees and commissions .................................. 86 66 258 241
Gain on sale of other real-estate owned ..................... -- -- 294 --
Investment securities gains ................................. 82 -- 399 130
Investment securities losses ................................ -- -- (94) (132)
------ ------ ------- -------
Total non-interest income ............................. 276 179 1,163 571
------ ------ ------- -------
Non-interest expense:
Salaries and wages .......................................... 982 702 2,823 1,891
Employee benefits ........................................... 212 180 652 556
Occupancy expense ........................................... 371 279 1,036 759
Furniture and equipment ..................................... 240 155 684 395
Other ....................................................... 695 627 2,153 2,134
------ ------ ------- -------
Total non-interest expense ............................ 2,500 1,943 7,348 5,735
------ ------ ------- -------
Income before income taxes ............................ 673 696 2,393 2,109
Income tax expense ............................................ 255 174 805 552
------ ------ ------- -------
Net Income ............................................ $ 418 $ 522 $1,588 $1,557
====== ====== ====== ======
Per Common Share:
Net income--primary ......................................... $0.21 $0.27 $0.80 $0.84
Net income--fully diluted ................................... $0.20 $0.27 $0.79 $0.83
Cash Dividends .............................................. $0.12 $0.12 $0.36 $0.36
Weighted average shares outstandlng (in thousands):
Primary ..................................................... 2,009 1,902 1,188 1,852
Fully Duluted ............................................... 2,054 1,958 2,009 1,871
</TABLE>
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