-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IU27GdcG7O2l7Z56/A1YhWjkT0b+KgSCUg72jm4B9qqR56qOmousq/78uEfAjUh4 KVvfEBDoiSSzzjDpK9QMPQ== 0001169232-03-004585.txt : 20030715 0001169232-03-004585.hdr.sgml : 20030715 20030715164925 ACCESSION NUMBER: 0001169232-03-004585 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030715 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030715 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUFFOLK BANCORP CENTRAL INDEX KEY: 0000754673 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 112708279 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-13580 FILM NUMBER: 03787647 BUSINESS ADDRESS: STREET 1: 6 W SECOND ST CITY: RIVERHEAD STATE: NY ZIP: 11901 BUSINESS PHONE: 5167275667 MAIL ADDRESS: STREET 1: 6 WEST SECOND STREET CITY: RIVERHEAD STATE: NY ZIP: 11901 8-K 1 d56273_8-k.txt FORM 8-K UNITED STATES 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): July 15, 2003 SUFFOLK BANCORP (Exact name of registrant as specified in its charter) New York 0-13580 11-2708279 (State or other jurisdiction of (Commission File Number) (IRS Employer incorporation or organization) Identification No.) 4 West Second Street, Riverhead, New York 11901 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (631) 727-5667 N/A (Former name or former address, if changed since last report) Page 2 of 2 Item 12. Results of Operations and Financial Condition Attached as an exhibit is the Company's earnings release for the three months ended June 30, 2003. SIGNATURE Pursuant to the requirements of the Securities and 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 Dated: July 15, 2003 By: /s/ Douglas Ian Shaw -------------------- Vice President & Corporate Secretary EXHIBIT INDEX 99.1 Earnings release for the three months ended June 30, 2003, dated July 15, 2003. EX-99.1 3 d56273_ex99-1.txt PRESS RELEASE Exhibit 99.1 PRESS RELEASE FOR IMMEDIATE RELEASE SUFFOLK [LOGO] BANCORP Contact: Douglas Ian Shaw 4 West Second Street Corporate Secretary Riverhead, NY 11901 (631) 727-5667 (631) 727-5667 (Voice) - (631) 727-3214 (FAX) invest@suffolkbancorp.com SUFFOLK BANCORP ANNOUNCES SECOND QUARTER EARNINGS Riverhead, New York, July 15, 2003 -- Suffolk Bancorp (NASDAQ - SUBK) today released the results of its operations during the second quarter of 2003. Net income for the year to date was $10,470,000, up 1.1 percent from $10,335,000 posted during the same period last year. Earnings-per-share for the year to date were $0.94 compared to $0.88, up 6.8 percent. Net income for the quarter was $5,131,000, down 3.1 percent compared to $5,294,000 posted during the same period last year. Earnings-per-share for the quarter were $0.46 compared to $0.45, up 2.2 percent. A detailed financial summary follows the text of this release. President and Chief Executive Officer, Thomas S. Kohlmann, commented, "The first half of 2003 has presented our industry with a number of challenges, not the least of which is interest rates that have stayed lower, longer than most economists predicted. This has compressed net interest margins. Despite that environment, by managing our balance sheet closely at Suffolk, we have been able to maintain return on average equity at 21.25 percent, and actually improve earnings-per-share over the same period a year ago. We did this while operating from within our growing core business, and while preserving a creditable efficiency ratio of 50.97 percent." He continued, "We have accomplished this in several ways. One is our capital management program which matches capital closely to business opportunities through the repurchase of stock, and cash dividends. We have also seen meaningful growth in commercial lending, commercial real estate mortgages, and residential finance. These more than offset declines in indirect retail automobile lending occasioned by the aggressive incentive programs of the major manufacturers. Credit quality has normalized to Suffolk's conservative standard, with net charge-offs at only 0.06 percent (annualized) of net loans for the quarter, and non-performing assets 50.5 percent lower than a year ago, leaving almost six times coverage in the allowance for net loan and lease losses." He concluded, "I am gratified by our performance through a difficult phase of the economic cycle. We continue to manage all aspects of the business to protect and, if possible, enhance our shareholders' investment. For example, we are further analyzing the structure of our investment portfolio to identify ways we can protect against a prolonged drop in interest rates, and the possibility of continuing and substantial prepayments of investment securities. Finally, as always, we continue to emphasize our core business as the key to long-term growth in earnings." Suffolk Bancorp is a one-bank holding company engaged in the commercial banking business through 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, Suffolk County National Bank is the second largest independent bank headquartered on Long Island, with 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. PRESS RELEASE July 15, 2003 Page 2 of 4 SUFFOLK [LOGO] BANCORP STATISTICAL SUMMARY (unaudited, in thousands of dollars except for share and per share data)
2nd qtr 2003 2nd qtr 2002 Change 6 Mos. 2003 6 Mos. 2002 Change ------------ ------------- ----------- ------------ ------------ --------- EARNINGS Net Income $ 5,131 $ 5,294 (3.1%) $ 10,470 $ 10,355 1.1% Net Interest Income 15,170 15,487 (2.0%) 30,908 30,482 1.4% Earnings-Per-Share - Basic 0.46 0.45 2.2% 0.94 0.88 6.8% Cash Dividends-Per-Share 0.19 0.17 11.8% 0.38 0.34 11.8% AVERAGE BALANCES Average Assets 1,285,744 1,240,933 3.6% 1,280,993 1,206,852 6.1% Average Net Loans 809,908 793,906 2.0% 795,770 787,808 1.0% Average Investment Securities 359,989 289,253 24.5% 367,860 274,209 34.2% Average Deposits 1,163,565 1,095,877 6.2% 1,152,591 1,073,080 7.4% Average Equity 96,599 98,581 (2.0%) 99,339 97,604 1.8% RATIOS Return on Average Equity 21.25% 21.48% (1.1%) 21.08% 21.22% (0.7%) Return on Average Assets 1.60% 1.71% (6.4%) 1.63% 1.72% (5.2%) Average Equity/Assets 7.51% 7.94% (5.4%) 7.75% 8.09% (4.2%) Net Interest Margin (FTE) 5.13% 5.59% (8.2%) 5.27% 5.74% (8.2%) Efficiency Ratio 50.97% 48.57% 4.9% 50.50% 49.01% 3.0% Tier 1 Leverage Ratio June 30 7.07% 7.97% (11.3%) Tier 1 Risk-based Capital Ratio June 30 9.66% 10.90% (11.4%) Total Risk-based Capital Ratio June 30 10.59% 11.89% (10.9%) ASSET QUALITY during period: Net Charge-offs $ 118 $ 237 (50.2%) $ 531 $ 528 0.6% Net Charge-offs/Average Net Loans (annual) 0.06% 0.12% (50.0%) 0.13% 0.13% 0.0% at end of period: Non-accrual & Restructured Loans $ 1,480 $ 2,987 (50.5%) Foreclosed Real Estate ("OREO") 0 0 0.0% Total Non-performing Assets 1,480 2,987 (50.5%) Allowance/Non-performing Assets 588.11% 299.87% 96.1% Allowance/Loans, Net of Discount 1.06% 1.11% (4.5%) Net Loans/Deposits 64.88% 70.38% (7.8%) EQUITY Shares Outstanding 11,018,181 11,684,500 (5.7%) Common Equity $ 98,043 $ 103,659 (5.4%) Book Value Per Common Share 8.90 8.87 0.3% Tangible Common Equity 97,229 102,845 (5.5%) Tangible Book Value Per Common Share 8.82 8.80 (0.2%) LOAN DISTRIBUTION at end of period: Commercial, Financial & Agricultural Loans 171,976 149,835 14.8% Commercial Real Estate Mortgages 203,815 183,561 11.0% Real Estate - Construction Loans 35,137 33,570 4.7% Residential Mortgages (1st and 2nd Liens) 100,438 88,314 13.7% Home Equity Loans 54,995 35,183 56.3% Consumer Loans 255,878 314,021 (18.5%) Other Loans 1,312 2,210 (40.6%) ----------- ----------- Total Loans (Net of Unearned Discounts) $ 823,551 $ 806,694 2.1%
PRESS RELEASE July 15, 2003 Page 3 of 4 SUFFOLK [LOGO] BANCORP CONSOLIDATED STATEMENTS OF CONDITION (unaudited, in thousands of dollars except for share and per share data)
June 30, 2003 2002 Change ----------- ----------- --------- ASSETS Cash & Due From Banks $ 100,298 $ 67,970 47.6% ----------- ----------- Federal Funds Sold 65,300 39,900 63.7% Investment Securities: Available for Sale, at Fair Value 331,250 285,283 16.1% Obligations of States & Political Subdivisions 9,986 11,657 (14.3%) Federal Reserve Bank Stock 638 638 0.0% Federal Home Loan Bank Stock 1,535 1,361 12.8% Corporate Bonds & Other Securities 100 100 0.0% ----------- ----------- Total Investment Securities 343,509 299,039 14.9% Total Loans 823,551 806,694 2.1% Allowance for Possible Loan Losses 8,704 8,957 (2.8%) ----------- ----------- Net Loans 814,847 797,737 2.1% Premises & Equipment, Net 21,924 17,849 22.8% Accrued Interest Receivable, Net 5,697 5,514 3.3% Excess of Cost Over Fair Value of Net Assets Acquired 814 814 0.0% Other Assets 21,794 25,810 (15.6%) ----------- ----------- TOTAL ASSETS $ 1,374,183 $ 1,254,633 9.5% =========== =========== LIABILITIES & STOCKHOLDERS' EQUITY Demand Deposits $ 384,050 $ 322,393 19.1% Saving, N.O.W. & Money Market Deposits 617,771 529,229 16.7% Time Certificates of $100,000 or more 23,622 29,042 (18.7%) Other Time Deposits 230,500 252,764 (8.8%) ----------- ----------- Total Deposits 1,255,943 1,133,428 10.8% Dividend Payable on Common Stock 2,095 1,993 5.1% Accrued Interest Payable 994 1,510 (34.2%) Other Liabilities 17,108 14,043 21.8% ----------- ----------- TOTAL LIABILITIES 1,276,140 1,150,974 10.9% ----------- ----------- STOCKHOLDERS' EQUITY Common Stock (par value $2.50; 15,000,000 shares authorized; 11,018,181 and 11,684,500 shares outstanding at June 30, 2003 and 2002, respectively) 33,838 33,826 0.0% Surplus 19,230 19,165 0.3% Treasury Stock at Par (2,517,037 and 1,845,718 shares, respectively) (6,293) (4,614) 36.4% Undivided Profits 44,944 51,344 (12.5%) ----------- ----------- 91,719 99,721 (8.0%) Accumulated Other Comprehensive Income, Net of Tax 6,324 3,938 60.6% ----------- ----------- TOTAL STOCKHOLDERS' EQUITY 98,043 103,659 (5.4%) TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,374,183 $ 1,254,633 9.5% =========== ===========
PRESS RELEASE July 15, 2003 Page 4 of 4 SUFFOLK [LOGO] BANCORP CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands of dollars except for share and per share data)
For the 3 Months Ended For the Year to Date 6/30/03 6/30/02 Change 2003 2002 Change ----------- ----------- ---------- ----------- ----------- ----------- INTEREST INCOME Federal Funds Sold $ 55 $ 137 (59.9%) $ 82 $ 268 (69.4%) United States Treasury Securities 104 125 (16.8%) 208 264 (21.2%) Obligations of States & Political Subdivisions 124 146 (15.1%) 253 287 (11.8%) Mortgage-Backed Securities 2,648 2,997 (11.6%) 5,836 5,753 1.4% U.S. Government Agency Obligations 825 653 26.3% 1,651 1,307 26.3% Corporate Bonds & Other Securities 36 31 16.1% 71 46 54.3% Loans 14,037 15,633 (10.2%) 28,415 31,257 (9.1%) ----------- ----------- ----------- ----------- Total Interest Income 17,829 19,722 (9.6%) 36,516 39,182 (6.8%) INTEREST EXPENSE Saving, N.O.W. & Money Market Deposits 1,036 1,824 (43.2%) 2,226 3,437 (35.2%) Time Certificates of $100,000 or more 126 202 (37.6%) 261 457 (42.9%) Other Time Deposits 1,473 2,208 (33.3%) 3,077 4,805 (36.0%) Federal Funds Purchased -- 1 (100.0%) 12 1 1,100.0% Interest on Other Borrowings 24 -- 100.0% 32 -- 100.0% ----------- ----------- ----------- ----------- Total Interest Expense 2,659 4,235 (37.2%) 5,608 8,700 (35.5%) Net-interest Income 15,170 15,487 (2.0%) 30,908 30,482 1.4% Provision for Possible Loan Losses 270 360 (25.0%) 540 660 (18.2%) ----------- ----------- ----------- ----------- Net-interest Income After Provision 14,900 15,127 (1.5%) 30,368 29,822 1.8% OTHER INCOME Service Charges on Deposit Accounts 1,488 1,422 4.6% 2,900 2,751 5.4% Other Service Charges, Commissions & Fees 609 474 28.5% 1,119 796 40.6% Fiduciary Fees 283 293 (3.4%) 563 578 (2.6%) Other Operating Income 368 126 192.1% 683 410 66.6% ----------- ----------- ----------- ----------- Total Other Income 2,748 2,315 18.7% 5,265 4,535 16.1% OTHER EXPENSE Salaries & Employee Benefits 5,338 5,027 6.2% 10,786 10,072 7.1% Net Occupancy Expense 745 674 10.5% 1,552 1,349 15.0% Equipment Expense 487 625 (22.1%) 1,195 1,221 (2.1%) Other Operating Expense 2,563 2,321 10.4% 4,734 4,519 4.8% ----------- ----------- ----------- ----------- Total Other Expense 9,133 8,647 5.6% 18,267 17,161 6.4% Income Before Provision for Income Taxes 8,515 8,795 (3.2%) 17,366 17,196 1.0% Provision for Income Taxes 3,384 3,501 (3.3%) 6,896 6,841 0.8% ----------- ----------- ----------- ----------- NET INCOME $ 5,131 $ 5,294 (3.1%) $ 10,470 $ 10,355 1.1% =========== =========== =========== =========== Average: Common Shares Outstanding 11,046,136 11,713,901 (5.7%) 11,172,393 11,740,791 (4.8%) Dilutive Stock Options 43,164 45,790 (5.7%) 43,024 43,410 (0.9%) ----------- ----------- ----------- ----------- Average Total 11,089,300 11,759,691 (5.7%) 11,215,417 11,784,201 (4.8%) EARNINGS PER COMMON SHARE Basic $ 0.46 $ 0.45 2.2% $ 0.94 $ 0.88 6.8% Diluted $ 0.46 $ 0.45 2.2% $ 0.93 $ 0.88 5.7%
-----END PRIVACY-ENHANCED MESSAGE-----