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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)
February 3, 1997
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Carnegie Bancorp
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(Exact name of registrant as specified in its charter)
New Jersey 0-2456 22-3257100
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(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 Monday, February 3, 1997, the Registrant issued a press release
announcing (a) its results of operations for the year ended December 31, 1996,
(b) a 5% stock dividend and (c) 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
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Registrant
Dated: February 4, 1997 By: /s/ RICHARD ROSA
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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 February 3, 1997 announcing Registrant's
results of operations for the year ended December 31, 1995,
Registrant's 5% stock dividend and an increase in Registrant's
cash dividend.
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CARNEGIE BANCORP [LOGO]
FOR IMMEDIATE RELEASE
CARNEGIE EARNINGS TOP $2 MILLION
FOR SECOND STRAIGHT YEAR
CASH & STOCK DIVIDENDS DECLARED
Princeton, New Jersey--February 3, 1997. Carnegie Bancorp announced net income
after taxes for 1996 of $2,144,000, compared to $2,128,000 for 1995. Primary and
fully diluted net income per share for 1996 were $1.01 and $1.00 respectively,
compared to $1.08 per share primary and $1.07 per share fully diluted net income
for 1995.
According to Thomas L. Gray, Jr., President and CEO, "Although year-to-year net
income only increased by $16,000, that is impressive considering Carnegie had
four newly opened branch offices operating at a loss in 1996. Additionally, much
of the increase in the provision for loan losses during 1996 was attributable to
the very strong growth in the loan portfolio. The year a loan is booked, the
Bank's income is impacted by the provision, without the benefit of a full year
of interest income. We expect these new loans to add to the Company's earnings
in future periods."
Carnegie's total assets grew 37% to $343 million at year end 1996, compared to
$251 million for the previous year. Also for the year, total loans rose to over
$263 million, compared to $163 million at December 31, 1995, for an increase of
more than 62%. Carnegie posted $303 million in total deposits as of December 31,
1996, representing an increase of 44%, compared to 1995. President Gray stated,
"We are most gratified to see the bank achieve such excellent growth while
maintaining such high performance in earnings and asset quality."
In recognition of the earnings, the Board of Directors of Carnegie Bancorp
recently declared an increase in its regular quarterly cash dividend to $.14 per
share. The dividend will be paid on March 19, 1997 to shareholders of record on
February 19, 1997. This represents the 21st consecutive quarter in which the
Company has paid a cash dividend. Carnegie's solid earnings have enabled the
company to consistently pay a quarterly cash dividend, beginning with $.06 per
share in 1992, $.08 per share in 1993, $.10 per share in 1994, $.12 per share in
1995, $.12 per share in the first three quarters of 1996 and $.13 per share in
the fourth quarter of 1996. The Carnegie Board simultaneously declared a 5%
stock dividend, also to be paid on March 19, 1997 to shareholders of record on
February 12, 1997. The record date for the stock dividend is a week prior to the
record date for the cash dividend so that the cash dividend will be received on
the new shares from the stock dividend as well. This is the eighth consecutive
year that Carnegie has paid a 5% stock dividend.
Carnegie Bank, N.A., a national bank headquartered in Princeton, New Jersey, is
the single subsidiary of Carnegie Bancorp. Carnegie Bank, N.A. serves small
businesses, professionals and high net worth individuals through its eight
branches located in Princeton, Hamilton, Marlton, Denville, Toms River,
Montgomery Township and Flemington, New Jersey as well as Langhorne,
Pennsylvania. A merger agreement with Regent Bancshares Corp. of Philadelphia,
originally signed in August 1995, was mutually terminated on January 14, 1997.
The two companies had shifted their respective strategic focus during the merger
agreement period.
The Company's stock is listed on the Nasdaq National Market System. Its trading
symbol for common stock is CBNJ and for warrants is CBNJW.
FOR FURTHER INFORMATION, PLEASE CONTACT: THOMAS L. GRAY, JR., President
Financial highlights attached
619 Alexander Rd., Princeton, NJ 08540 o 606-520-0601 o Fax 609-520-9722
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CARNEGIE BANCORP AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
December 31, December 31,
1996 1995
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(000's omitted except per share data)
<S> <C> <C>
ASSETS
Cash and cash equivalents:
Cash and due from banks ................................................. $ 16,745 $ 10,207
Federal funds sold ...................................................... -- --
-------- --------
Total cash and cash equivalents ..................................... 16,745 10,207
-------- --------
Investment Securities:
Available for sale ...................................................... 30,015 70,577
Held to maturity ........................................................ 23,359 --
-------- --------
Total investment securities ......................................... 53,374 70,577
-------- --------
Loans, net of allowance for loan losses of $2,665 at December 31, 1996
and $1,754 at December 31, 1995 ......................................... 263,797 162,587
Premises and equipment, net ............................................... 4,482 3,722
Other real estate owned ................................................... 473 --
Accrued interest receivable and other net assets .......................... 4,488 3,469
-------- --------
Total Assets ........................................................ $343,357 $250,562
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing demand deposits .................................... $ 42,372 $ 40,944
Interest bearing deposits:
Savings deposits ...................................................... 139,671 70,430
Other time deposits ................................................... 62,008 54,327
Certificates of deposit $100,000 and over ............................. 58,511 44,500
-------- --------
Total deposits ...................................................... 302,582 210,201
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Short-term borrowings ..................................................... 1,000 17,500
Long-term debt ............................................................ 14,425 --
Accrued interest payable and other liabilities ............................ 1,628 1,067
-------- --------
Total liabilities ................................................... 319,615 228,768
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Commitments and contingencies
Stockholders' equity:
Common stock, no par value, authorized 5,000,000 shares;
issued and outstanding 1,940,942 at December 31, 1996
and 1,754,441 at December 31, 1995 .................................... 9,705 8,772
Capital surplus ......................................................... 12,711 10,869
Undivided profits ....................................................... 1,630 1,713
Net unrealized holding gains (losses) on securities available for sale .. (204) 440
-------- --------
Total stockholders' equity .......................................... 23,742 21,794
-------- --------
Total Liabilities and Stockholders' Equity .......................... $343,357 $250,562
======== ========
BOOK VALUE PER SHARE ...................................................... $11.65 $11.27
ADJUSTED SHARES OUTSTANDING (after 5% stock dividend declared 1/15/97) .... 2,037,989 1,934,271
</TABLE>
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CARNEGIE BANCORP AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
Year Ended December 31,
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1996 1995
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(000's omitted except
per share data)
Interest income:
Loans, including fees ............................... $20,225 $14,727
Federal funds sold .................................. 106 475
Investment securities:
Taxable ........................................... 3,750 2,535
Tax-exempt ........................................ 383 969
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Total interest income ........................... 24,464 18,706
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Interest expense:
Savings deposits .................................... 3,519 3,096
Other time deposits ................................. 3,448 2,947
Certificates of deposit $100,000 and over ........... 2,128 2,124
Borrowed funds ...................................... 1,789 297
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Total interest expense .......................... 10,884 8,464
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Net interest income ............................. 13,680 10,242
Provision for loan losses ............................. 1,609 369
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Net interest income after provision
for loan losses ............................... 11,971 9,873
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Non-interest income:
Service fees on deposit ............................. 422 433
Other fees and commissions .......................... 339 311
Gain on sale of other real-estate owned ............. 294 --
Investment securities gains ......................... 399 132
Investment securities losses ........................ (94) (132)
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Total non-interest income ....................... 1,360 744
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Non-interest expense:
Salaries and wages .................................. 3,826 2,683
Employee benefits ................................... 858 692
Occupancy expense ................................... 1,466 1,024
Furniture and equipment ............................. 915 583
Other ............................................... 2,989 2,742
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Total non-interest expense ...................... 10,054 7,724
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Income before income taxes ...................... 3,277 2,893
Income tax expense .................................... 1,133 765
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Net income ............................................ $ 2,144 $ 2,128
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Per Common Share:
Net income--primary ................................. $1.01 $1.08
Net income--fully diluted ........................... $1.00 $1.07
Weighted average shares outstanding, adjusted for
5% stock dividend declared 1/15/97 (in thousands):
Primary ........................................... 2,125 1,973
Fully Diluted ..................................... 2,142 1,990
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