-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, l7n7yIHaQjVE4LlBXC/gU8dRZ06DpmoqlkjQL8xrz3JHFyY0PTQWYy/4BrknVwyK 2FQkgYzu+3EtSyP7okubUg== 0000950123-94-000887.txt : 19940518 0000950123-94-000887.hdr.sgml : 19940518 ACCESSION NUMBER: 0000950123-94-000887 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940331 FILED AS OF DATE: 19940511 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUFFOLK BANCORP CENTRAL INDEX KEY: 0000754673 STANDARD INDUSTRIAL CLASSIFICATION: 6021 IRS NUMBER: 112708279 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13580 FILM NUMBER: 94527154 BUSINESS ADDRESS: STREET 1: 6 W SECOND ST CITY: RIVERHEAD STATE: NY ZIP: 11901 BUSINESS PHONE: 516725667 MAIL ADDRESS: STREET 1: 6 WEST SECOND STREET CITY: RIVERHEAD STATE: NY ZIP: 11901 10-Q 1 FORM 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended March 31, 1994 Commission file number 0-13580 SUFFOLK BANCORP (exact name of registrant as specified in its charter) New York State 11-2708279 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 6 West Second Street, Riverhead, New York 11901 (Address of Principal Executive Offices) (Zip Code) (516) 727-2700 (Registrant's telephone number, including area code) NOT APPLICABLE (former name, former address and former fiscal year if changed since last report) 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 shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X . No ________. Indicate the number shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 3,396,909 SHARES OF COMMON STOCK OUTSTANDING AS OF MARCH 31, 1994 2 SUFFOLK BANCORP AND SUBSIDIARIES
Part I Financial Information page Consolidated Balance Sheets 1 Consolidated Statements Of Income, For the Three Months Ended March 31, 1994 and 1993 2 Statements Of Cash Flows, For the Three Months Ended March 31, 1994 and 1993 3 Note To The Consolidated Financial Statements 4 Management's Discussion And Analysis Of Financial Condition And Results Of Operation 4 Part II Other Information (Not Applicable) Signatures 5
3 SUFFOLK BANCORP AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands except number of shares)
March 1994 December 1993 (unaudited) (unaudited) ASSETS Cash and Due From Banks . . . . . . . . . . . . . . . . . . . . . . . $ 24,858 $ 27,557 Federal Funds Sold & Securities Purchased Under Agreements To Resell . . . . . . . . . . . . . . . . . . . 8,200 - Investment Securities (Market Value: $154,645,000 at March 31, 1994 and $195,287,000 at December 31, 1993) United States Treasury Obligations; Available for Sale . . . . . 55,490 - United States Treasury Obligations; Held for Investment . . . . 57,117 149,999 Obligations of States and Political Subdivisions . . . . . . . . . . . . . . . . . . . . 40,767 42,025 U.S. Govt. Agency Obligations . . . . . . . . . . . . . . . . . 944 1,176 Corporate Bonds and Other Securities . . . . . . . . . . . . . . 440 939 --------- -------- Total Investment Securities . . . . . . . . . . . . . . . . . . 154,758 194,139 Total Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455,684 442,224 Less: Unearned Income . . . . . . . . . . . . . . . . . . . . . . . 29,150 30,562 Allowance for Possible Loan Losses . . . . . . . . . . . . 5,029 4,922 --------- -------- Net Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . 421,505 406,740 Premises and Equipment . . . . . . . . . . . . . . . . . . . . . . . 4,807 4,727 Other Real Estate Owned . . . . . . . . . . . . . . . . . . . . . . . 649 649 Accrued Interest Receivable . . . . . . . . . . . . . . . . . . . . . 2,795 2,199 Branch Purchase Premium . . . . . . . . . . . . . . . . . . . . . . . 476 510 Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,664 5,838 --------- -------- TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . $ 623,712 $642,359 ========= ======== LIABILITIES Demand Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 89,198 $ 98,532 Savings, N.O.W. and Money Market Deposits . . . . . . . . . . . . . . 318,108 319,557 Time Certificates of $100,000 or More . . . . . . . . . . . . . . . . 12,521 12,868 Other Time Deposits . . . . . . . . . . . . . . . . . . . . . . . . . 135,163 137,811 --------- -------- Total Deposits . . . . . . . . . . . . . . . . . . . . . . . . . 554,990 568,768 Federal Funds Purchased & Securities Sold Under Agreements to Repurchase . . . . . . . . . . . . . . . . . - - Federal Reserve Bank Borrowings . . . . . . . . . . . . . . . . . . . - 6,500 Dividends Payable on Common Stock . . . . . . . . . . . . . . . . . . 577 577 Accrued Interest Payable . . . . . . . . . . . . . . . . . . . . . . 914 968 Other Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 2,592 2,262 --------- -------- TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . . $ 559,073 $579,075 STOCKHOLDERS' EQUITY Common Stock (Par Value $5.00; 7,500,000 authorized; 3,396,909 and 3,396,460 shares issued at March 31, 1994 and December 31, 1993, respectively) . . . . . . . . . . . . . . . $ 16,985 $ 16,982 Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,839 11,832 Unrealized Gain on Investments Available for Sale . . . . . . . . . . 14 - Undivided Profits . . . . . . . . . . . . . . . . . . . . . . . . . . 35,801 34,470 --------- -------- TOTAL STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . $ 64,639 $ 63,284 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . . . . $ 623,712 $642,359 ========= ========
See accompanying note to consolidated financial statements. (1) 4 SUFFOLK BANCORP AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands except per share amounts) For the Three Months ended March 31,
1994 1993 (unaudited) (unaudited) INTEREST INCOME Loans (including fee income) . . . . . . . . . . . . . . . . . . . . $ 8,865 $ 8,981 Federal Funds Sold & Securities Purchased Under Agreements to Resell . . . . . . . . . . . . . . . . . . . 42 280 United States Treasury Obligations . . . . . . . . . . . . . . . . . 1,330 1,342 Obligations of States and Political Subdivisions . . . . . . . . . . . . . . . . . . . . . . 447 615 U.S. Govt. Agency Obligations . . . . . . . . . . . . . . . . . . . . 13 37 Corporate Bonds and Other Securities . . . . . . . . . . . . . . . . 14 18 ----------- ---------- Total Interest Income . . . . . . . . . . . . . . . . . . . . . $ 10,711 $ 11,273 INTEREST EXPENSE Savings, N.O.W. and Money Market Deposits . . . . . . . . . . . . . . $ 1,899 $ 1,997 Time Certificates of $100,000 or more . . . . . . . . . . . . . . . . 71 99 Other Time Deposits . . . . . . . . . . . . . . . . . . . . . . . . . 1,380 1,685 Federal Funds Purchased & Securities Sold Under Agreements to Repurchase . . . . . . . . . . . . . . . . . 99 - Interest on Other Borrowings . . . . . . . . . . . . . . . . . . . . 16 - ----------- ---------- Total Interest Expense . . . . . . . . . . . . . . . . . . . . . $ 3,465 $ 3,781 Net Interest Income . . . . . . . . . . . . . . . . . . . . . . $ 7,246 $ 7,492 Provision For Possible Loan Losses . . . . . . . . . . . . . . . . . 150 345 ----------- ---------- Net Interest Income After Provision For Possible Loan Losses . . . . . . . . . . . . . . . . . . . $ 7,096 $ 7,147 OTHER INCOME Service Charges on Deposit Accounts . . . . . . . . . . . . . . . . . $ 543 $ 540 Other Service Charges, Commissions & Fees . . . . . . . . . . . . . . 237 201 Fiduciary Activities . . . . . . . . . . . . . . . . . . . . . . . . 110 90 Other Operating Income . . . . . . . . . . . . . . . . . . . . . . . 121 119 ----------- ---------- Total Other Income . . . . . . . . . . . . . . . . . . . . . . . $ 1,011 $ 950 OTHER EXPENSE Salaries and Employee Benefits . . . . . . . . . . . . . . . . . . . $ 2,994 $ 2,894 Net Occupancy Expense . . . . . . . . . . . . . . . . . . . . . . . . 415 417 Equipment Expense . . . . . . . . . . . . . . . . . . . . . . . . . . 494 472 Other Operating Expense . . . . . . . . . . . . . . . . . . . . . . . 1,407 1,402 ----------- ---------- Total Other Expense . . . . . . . . . . . . . . . . . . . . . . $ 5,310 $ 5,185 Income Before Income Taxes . . . . . . . . . . . . . . . . . . . . . $ 2,797 $ 2,912 Provision For Income Taxes . . . . . . . . . . . . . . . . . . . . . 890 1,080 ----------- ---------- Net Income Before Cumulative Effect of Accounting Change . . . . . . $ 1,907 $ 1,832 Cumulative Effect of Accounting Change . . . . . . . . . . . . . . . - 624 ----------- ---------- NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,907 2,456 =========== ========== Earnings per Share Before Effect of Accounting Change . . . . . . . . $ 0.56 $ 0.54 Cumulative Effect of Accounting Change . . . . . . . . . . . . . . . - 0.18 ------- ------- Earnings per Share . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.56 $ 0.72 Average Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,396,704 3,389,587
See accompanying note to consolidated financial statements. (2) 5 SUFFOLK BANCORP AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (For the Three months Ended March 31,)
1994 1993 (unaudited) (unaudited) NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,907,877 $ 2,455,600 ADJUSTMENT TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Provision for Loan Losses . . . . . . . . . . . . . . . . . . . 150,000 345,000 Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . 290,435 282,529 Amortization of Excess of Cost Over Fair Market Value of Net Assets Acquired . . . . . . . . 33,240 33,240 Accretion of Discounts . . . . . . . . . . . . . . . . . . . . . (552,285) (314,399) Amortization of Premiums . . . . . . . . . . . . . . . . . . . . 25,197 59,962 Increase in Accrued Interest Receivable . . . . . . . . . . . . (596,455) (754,783) Decrease (Increase) in Other Assets . . . . . . . . . . . . . . 174,314 (899,281) Decrease in Accrued Interest Payable . . . . . . . . . . . . . . (54,155) (102,651) Increase In Income Taxes Payable . . . . . . . . . . . . . . . . 290,000 525,446 Decrease in Other Liabilities . . . . . . . . . . . . . . . . . 40,838 445,943 Increase in Dividends Payable on Common Stock . . . . . . . . . 76 33,978 ------------- ------------- NET CASH PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . $ 1,709,082 $ 2,110,584 ------------- ------------- CASH FLOWS FROM INVESTING ACTIVITIES Principal Payments on Investments . . . . . . . . . . . . . . . $ 231,866 $ 494,784 Maturities of Investments . . . . . . . . . . . . . . . . . . . 40,319,205 50,151,300 Purchases of Investments . . . . . . . . . . . . . . . . . . . . (578,400) (48,220,978) Loan Disbursements and Repayments, Net . . . . . . . . . . . . . (14,965,043) (3,579,791) Purchases of Premises and Equipment, Net . . . . . . . . . . . . (369,604) (349,716) ------------- ------------- NET CASH PROVIDED BY INVESTING ACTIVITIES . . . . . . . . . . $ 24,638,024 $ (1,504,401) ------------- ------------- CASH FLOWS FROM FINANCING ACTIVITIES Net Increase (Decrease) in Deposit Accounts . . . . . . . . . . $ (13,778,414) $ (12,220,524) Net Proceeds from Other Borrowings . . . . . . . . . . . . . . . (6,500,000) - Common Stock Sold for Cash . . . . . . . . . . . . . . . . . . . 9,878 6,935 Dividends Paid to Shareholders . . . . . . . . . . . . . . . . . (577,398) (542,285) ------------- ------------- NET CASH USED BY FINANCING ACTIVITIES . . . . . . . . . . . . $ (20,845,934) $ (12,755,874) ------------ ------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . 5,501,172 (12,149,691) CASH AND CASH EQUIVALENTS DECEMBER 31, . . . . . . . . . . 27,556,696 50,896,464 ============= ============= CASH AND CASH EQUIVALENTS MARCH 31, . . . . . . . . . . . . $ 33,057,868 $ 38,746,773 ============= =============
See accompanying note to consolidated financial statements. (3) 6 SUFFOLK BANCORP AND SUBSIDIARIES NOTE TO THE CONSOLIDATED FINANCIAL STATEMENTS GENERAL In the opinion of management, the accompanying unaudited consolidated interim financial statements of Suffolk Bancorp and its consolidated subsidiaries have been prepared to reflect all adjustments (consisting solely of normal recurring accruals) necessary for a fair presentation of the results of operations for the periods shown. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The results of operations for the periods shown are not necessarily indicative of results that may be expected for the entire year. The unaudited consolidated interim financial statements presented herein should be read in conjunction with the consolidated financial statements and notes thereto included in Suffolk Bancorp's 1993 Annual Report to Shareholders. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION for the Three Month Periods ended March 31, 1994 and 1993 NET INCOME Net income was $1,907,000 for the quarter, behind 22 percent from $2,456,000 posted during the same period last year. Earnings-per-share for the quarter were $0.56 versus $0.72. However, adjusted for a one-time change in accounting for income taxes, net income during the first quarter of 1993 was $1,832,000. Therefore, on an operating basis, net income was ahead by 4 percent. Net interest income remains the major part of the company's earnings. The net interest margin has narrowed slightly, however, increased competition for indirect automobile loans has moderated volume and lowered rates. Chargeoffs have decreased substantially, and while the provision for possible loan losses has been reduced, the allowance for possible loan losses now remains high by historic standards in reflection of management's cautious view of the regional economy, and a long-term downward trend in chargeoffs.
LAST 12 MAR. 31 DEC. 31 SEPT. 30 JUN. 30 ASSET QUALITY MONTHS 1994 1993 1993 1993 - - ------------------------------------------------------------------------------------------------------------- Net Charge-offs/Average Loans (annualized) 0.20% 0.04% 0.50% 0.06% 0.17% Allowance for loan losses/non-accrual & 90+ 91.92% 89.91% 93.26% 94.98% 89.51% Allowance for loan losses/total loans 1.25% 1.18% 1.21% 1.29% 1.30%
INTEREST INCOME Net interest income for year to date 1994 was $7,096,000, down from $7,147,000 during the same period of 1993, a decrease of 1 percent. While the net interest margin narrowed slightly, loan volume increased, as average net loans for the first quarter of 1994 totaled $411,577,000, compared to $369,732,000 for the same period of 1993. INTEREST EXPENSE Interest expense for the year to date 1994 was $3,465,000, down from $3,781,000 for the same period of 1993. Average interest bearing deposits for the first quarter 1994 were $558,861,000, up from $552,010,000 for the comparable period in 1993. The decrease in interest expense is the result of interest rates which remain among the lowest in the past two decades. OTHER INCOME Non-interest operating income increased to $1,011,000 for the three months ended March, 31, 1994 compared to $950,000 for the same period during 1993. Service charges on deposit accounts for the year to date 1994 totaled $543,000, up 1 percent, from $540,000 for the first three months of 1993. Included in other income are revenues of the Island Computer Corporation, which have remained constant for each period. OTHER EXPENSE Other expenses for the year to date 1994 were $5,310,000, up 2 percent from $5,185,000 for the comparable period 1993. This increase is the result of increased payroll, regulatory expenses, and preparation for the pending merger with Hamptons Bancshares, Inc. CAPITAL RESOURCES Shareholders' equity totaled $64,639,000 on March 31, 1994, an increase of $5,646,000 from $58,993,000 on March 31, 1993. The ratio of average equity to average assets was 10.0 percent at March 31, 1994 and 9.4 percent at March 31, 1993. (4) 7 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. SUFFOLK BANCORP Date: May 10, 1994 /s/ Edward J. Merz --------------------------- Edward J. Merz President & Chief Executive Officer Date: May 10, 1994 /s/ Victor F. Bozuhoski, Jr. ----------------------------------- Victor F. Bozuhoski, Jr. Executive Vice President, Treasurer & Chief Financial Officer (5) -----END PRIVACY-ENHANCED MESSAGE-----