EX-99.1 3 d55278_8k.txt EARNINGS RELEASE PRESS RELEASE FOR IMMEDIATE RELEASE SUFFOLK [LOGO] BANCORP 4 West Second Street Contact: Douglas Ian Shaw Riverhead, NY 11901 Corporate Secretary (631) 727-5667 (voice) - (631) 727-3214 (fax) (631) 727-5667 invest@suffolkbancorp.com SUFFOLK BANCORP ANNOUNCES 9.3 PERCENT INCREASE IN EARNINGS PER SHARE Riverhead, New York, April 8, 2003 -- Suffolk Bancorp (NASDAQ - SUBK) today released the results of its operations during the first quarter of 2003. Net income for the quarter was $5,339,000, up 5.5 percent from $5,061,000 posted during the same period last year. Earnings-per-share for the quarter were $0.47 compared to $0.43, up 9.3 percent. A detailed financial summary follows the text of this release. President and CEO Thomas S. Kohlmann remarked, "We are gratified by our consistent performance during a period of considerable economic uncertainty. It should be noted that this performance is in our core bank, and does not include securities gains. We have structured our investment portfolio carefully to preserve both income and cash-flow throughout the current economic pause, and would prefer not to compromise earnings in the long run." He went on to say, "The first quarter's results were solid. Return on average equity was 20.86 percent for the first quarter compared to 20.95 percent last year. Return on average assets was 1.67 percent, versus 1.73 percent a year ago. The net interest margin continued to narrow slightly, to 5.42 percent from 5.63 percent, although net interest income increased by 5.5 percent. Average assets grew by 8.9 percent. Our efficiency ratio was 50.04 percent compared to 49.46 percent for the same quarter last year. These all exceed averages in our industry." He continued, "We have achieved this by paying close attention to run rates in our core business lines of lending, investments, fees, and deposits. We have managed our non-interest expense carefully, which increased by only 7.3 percent while assets increased by 9.0 percent. We have also managed our capital, seeking to maximize leverage while maintaining regulatory ratios that qualify as "well-capitalized." During the past quarter alone, we have repurchased 405,300 shares, or 3.5 percent of the outstanding, an amount that we believe will augment future earnings-per-share." Mr. Kohlmann concluded, "We feel that the best insurance we have is to keep our eyes firmly on profitability, our primary objective. Growth in anything other than earnings, for its own sake, is not in our shareholders' interest. We are cautious in saying so, but we believe that we have positioned ourselves well for the remainder of the year." Suffolk Bancorp is a one-bank holding company engaged in the commercial banking business through the Suffolk County National Bank, a full service commercial bank headquartered in Riverhead, New York. "SCNB" is Suffolk Bancorp's wholly owned subsidiary. Organized in 1890, the Suffolk County National Bank has 27 offices in Suffolk County, New York. Safe Harbor Statement pursuant to the Private Securities Litigation Reform Act of 1995 This press release may include statements which look to the future. These can include remarks about Suffolk Bancorp, the banking industry, and the economy in general. These remarks are based on current plans and expectations. They are subject, however, to a variety of uncertainties that could cause future results to vary materially from Suffolk's historical performance, or from current expectations. Factors affecting Suffolk Bancorp include particularly, but are not limited to: changes in interest rates; increases or decreases in retail and commercial economic activity in Suffolk's market area; variations in the ability and propensity of consumers and businesses to borrow, repay, or deposit money, or to use other banking and financial services; and changes in government regulations. The financial summary follows. PRESS RELEASE SUFFOLK [LOGO] BANCORP April 8, 2003 Page 2 of 4 STATISTICAL SUMMARY (unaudited, in thousands of dollars except for share and per share data)
1st Q 2003 1st Q 2002 Change ----------- ------------ --------- EARNINGS Net Income $ 5,339 $ 5,061 5.5% Net Interest Income 15,738 14,995 5.0% Earnings Per Share 0.47 0.43 9.3% Cash Dividends Per Share 0.19 0.15 26.7% AVERAGE BALANCES Average Assets 1,276,165 1,172,357 8.9% Average Net Loans 781,474 781,643 (0.0%) Average Investment Securities 375,819 258,998 45.1% Average Deposits 1,141,495 1,050,030 8.7% Average Equity 102,363 96,615 5.9% RATIOS Return on Average Equity 20.86% 20.95% (0.4%) Return on Average Assets 1.67% 1.73% (3.5%) Average Equity/Assets 8.02% 8.24% (2.7%) Net Interest Margin (FTE) 5.42% 5.63% (3.7%) Efficiency Ratio 50.04% 49.46% 1.2% Tier 1 Leverage Ratio Mar. 31 7.04% 8.26% (14.8%) Tier 1 Risk-based Capital Ratio Mar. 31 10.04% 10.98% (8.6%) Total Risk-based Capital Ratio Mar. 31 10.99% 11.99% (8.3%) ASSET QUALITY during period: Net Charge-offs $ 413 $ 291 41.9% Net Charge-offs/Average Net Loans (annual) 0.21% 0.15% 40.0% at end of period: Non-accrual & Restructured Loans $ 1,272 2,319 (45.1%) Foreclosed Real Estate ("OREO") 0 0 0.0% Total Non-performing Assets 1,272 2,319 (45.1%) Allowance/Non-performing Assets 672.33% 380.94% 76.5% Allowance/Loans, Net of Discount 1.07% 1.11% 3.6% Net Loans/Deposits 70.80% 75.12% (5.8%) EQUITY Shares Outstanding 11,084,181 11,723,500 (5.5%) Common Equity $ 98,498 $ 97,384 1.1% Book Value Per Common Share 8.89 8.31 7.0% Tangible Common Equity 97,684 96,570 1.2% Tangible Book Value Per Common Share 8.81 8.24 6.9% LOAN DISTRIBUTION at end of period: Commercial, Financial & Agricultural Loans 162,853 144,518 12.7% Commercial Real Estate Mortgages 189,536 169,395 11.9% Real Estate - Construction Loans 38,176 34,960 9.2% Residential Mortgages (1st and 2nd Liens) 96,994 88,872 9.1% Home Equity Loans 49,933 33,966 47.0% Consumer Loans 264,734 319,912 (17.2%) Other Loans 551 965 (42.9%) ----------- ----------- Total Loans (Net of Unearned Discounts) $ 802,777 $ 792,588 1.3%
PRESS RELEASE SUFFOLK [LOGO] BANCORP April 8, 2003 Page 3 of 4 CONSOLIDATED STATEMENTS OF CONDITION (unaudited, in thousands of dollars except for share and per share data)
March 31, 2003 2002 Change ----------- ----------- ------- ASSETS Cash & Due From Banks $ 44,078 $ 38,389 14.8% Federal Funds Sold 2,700 22,600 (88.1%) Investment Securities: Available for Sale, at Fair Value 362,594 254,657 42.4% Obligations of States & Political Subdivisions 8,178 11,709 (30.2%) Federal Reserve Bank Stock 638 638 0.0% Federal Home Loan Bank Stock 1,361 1,361 0.0% Corporate Bonds & Other Securities 100 100 0.0% ----------- ----------- Total Investment Securities 372,871 268,465 38.9% Total Loans 802,777 792,588 1.3% Allowance for Possible Loan Losses 8,552 8,834 (3.2%) ----------- ----------- Net Loans 794,225 783,754 1.3% Premises & Equipment, Net 21,283 15,732 35.3% Accrued Interest Receivable, Net 5,443 5,712 (4.7%) Excess of Cost Over Fair Value of Net Assets Acquired 814 814 0.0% Other Assets 20,617 22,431 (8.1%) ----------- ----------- TOTAL ASSETS $ 1,262,031 $ 1,157,897 9.0% =========== =========== LIABILITIES & STOCKHOLDERS' EQUITY Demand Deposits $ 301,835 $ 263,822 14.4% Savings, N.O.W.'s & Money Market Deposits 559,226 487,478 14.7% Time Certificates of $100,000 or more 22,697 30,756 (26.2%) Other Time Deposits 238,071 261,242 (8.9%) ----------- ----------- Total Deposits 1,121,829 1,043,298 7.5% Federal Home Loan Bank Borrowings 18,500 -- 100.0% Dividend Payable on Common Stock 2,136 1,766 21.0% Accrued Interest Payable 1,047 1,640 (36.2%) Other Liabilities 20,021 13,809 45.0% ----------- ----------- TOTAL LIABILITIES 1,163,533 1,060,513 9.7% ----------- ----------- STOCKHOLDERS' EQUITY Common Stock (par value $2.50; 15,000,000 shares authorized; 11,084,181 and 11,723,500 shares outstanding at March 31, 2003 and 2002, respectively) 33,838 33,826 0.0% Surplus 19,230 19,165 0.3% Treasury Stock at Par (2,451,037 and 1,806,718 shares, respectively) (6,128) (4,517) 35.7% Undivided Profits 43,828 49,183 (10.9%) ----------- ----------- 90,768 97,657 (7.1%) Accumulated Other Comprehensive Income, Net of Tax 7,730 (273) (2,931.5%) ----------- ----------- TOTAL STOCKHOLDERS' EQUITY 98,498 97,384 1.1% TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,262,031 $ 1,157,897 9.0% =========== ===========
PRESS RELEASE SUFFOLK [LOGO] BANCORP April 8, 2003 Page 4 of 4 CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands of dollars except for share and per share data)
For the 3 Months Ended 3/31/03 3/31/02 Change ----------- ----------- -------- INTEREST INCOME Federal Funds Sold $ 27 $ 131 (79.4%) United States Treasury Securities 104 139 (25.2%) Obligations of States & Political Subdivisions 129 141 (8.5%) Mortgage-Backed Securities 3,188 2,756 15.7% U.S. Government Agency Obligations 826 654 26.3% Corporate Bonds & Other Securities 35 15 133.3% Loans 14,378 15,624 (8.0%) ----------- ----------- Total Interest Income 18,687 19,460 (4.0%) INTEREST EXPENSE Savings, N.O.W.'s & Money Market Deposits 1,190 1,613 (26.2%) Time Certificates of $100,000 or more 135 255 (47.1%) Other Time Deposits 1,604 2,597 (38.2%) Federal Funds Purchased 12 -- 100.0% Interest on Other Borrowings 8 -- 100.0% ----------- ----------- Total Interest Expense 2,949 4,465 (34.0%) Net-interest Income 15,738 14,995 5.0% Provision for Possible Loan Losses 270 300 (10.0%) ----------- ----------- Net-interest Income After Provision 15,468 14,695 5.3% OTHER INCOME Service Charges on Deposit Accounts 1,412 1,329 6.2% Other Service Charges, Commissions & Fees 510 322 58.4% Fiduciary Fees 280 285 (1.8%) Other Operating Income 315 284 10.9% ----------- ----------- Total Other Income 2,517 2,220 13.4% OTHER EXPENSE Salaries & Employee Benefits 5,448 5,045 8.0% Net Occupancy Expense 807 675 19.6% Equipment Expense 708 596 18.8% Other Operating Expense 2,171 2,198 (1.2%) ----------- ----------- Total Other Expense 9,134 8,514 7.3% Income Before Provision for Income Taxes 8,851 8,401 5.4% Provision for Income Taxes 3,512 3,340 5.1% ----------- ----------- NET INCOME $ 5,339 $ 5,061 5.5% =========== =========== Average: Common Shares Outstanding 11,311,275 11,767,980 (3.9%) Dilutive Stock Options 42,882 40,656 5.5% ----------- ----------- Average Total 11,354,157 11,808,636 (3.8%) EARNINGS PER COMMON SHARE Basic $ 0.47 $ 0.43 9.3% Diluted $ 0.47 $ 0.43 9.3%