-----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, D0eIkAd1Uuc6cZ72AhsHAJt2DICaF4eNSosB3Gv0XhskQuOepsSB9QLwpyXfz+V5 6uKdHhDYFfMRXPR+zEluag== 0001169232-04-000147.txt : 20040115 0001169232-04-000147.hdr.sgml : 20040115 20040115110525 ACCESSION NUMBER: 0001169232-04-000147 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040115 ITEM INFORMATION: FILED AS OF DATE: 20040115 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: 04526419 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 d57911_8k.txt CURRENT REPORT 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): January 15, 2004 SUFFOLK BANCORP (Exact name of registrant as specified in its charter) New York 0-13580 11-2708279 (State or other jurisdiction of (Commission (IRS Employer incorporation or organization) File Number) 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 and twelve months ended December 31, 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: January 15, 2004 By: /s/ Douglas Ian Shaw -------------------- Vice President & Corporate Secretary EXHIBIT INDEX 99.1 Earnings release for the twelve months ended December 31, 2003, dated January 15, 2004. EX-99.1 3 d57911_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 FOURTH QUARTER AND FULL YEAR EARNINGS Riverhead, New York, January 15, 2004 -- Suffolk Bancorp (NASDAQ - SUBK) today released the results of its operations during the fourth quarter of 2003. Net income for the fourth quarter was $5,499,000, up 3.0 percent from $5,337,000 posted during the same period last year. Earnings-per-share for the quarter were $0.50 compared to $0.46, up 8.7 percent. Net income for the year was $21,336,000, up 0.3 percent from $21,269,000 posted during the same period last year. Earnings-per-share for the year were $1.92 compared to $1.82, up 5.5 percent. A detailed financial summary follows the text of this release. President and Chief Executive Officer, Thomas S. Kohlmann, commented, "Central to understanding Suffolk's performance during the past year are interest rates, which remained at historic lows throughout the year. Although this put pressure on our net interest margin, we have actually been able to achieve a slight increase in return on average equity, to 21.93 for the year, and improve earnings-per-share over the same period a year ago." He continued, "Key to maintaining our performance was close management of the balance sheet. We have redirected the flow of investment from our consumer portfolio, comprised primarily of indirect automobile paper to our commercial and commercial real estate portfolios. While historically profitable, consumer loans have come under increasing pressure with regard to both rate and volume in the face of the incentive programs of the major manufacturers. Commercial credits extended to professionals, and small and middle-market businesses, as well as home equity loans, have more than made up for that decline. We have continued emphasis on both personal and commercial demand deposits, while we have allowed more expensive time deposits to decline. Demand deposits increased 15.7 percent year to year, while time deposits of less than $100,000 declined by 13.2 percent. Finally, we pursued our ongoing program of capital management which applies leverage to our shareholders' investment by means of the selective repurchase of shares, while maintaining our 'well-capitalized' status with regulatory agencies. During the year we repurchased more than 5 percent of the shares outstanding at the beginning of 2003." He went on to say, "Further control of expenses also contributed to profitability. While average assets increased by 4.8 percent from year to year, non-interest expense increased by only 1.5 percent. Net charge-offs remained below industry averages, at 13 basis points of average net loans." He concluded, "We have been able to prosper in an unusual environment by following a comparatively straightforward and uncomplicated business plan, year in and out. We take the long view of the big picture, and make an ongoing series of incremental adjustments to improve performance, while avoiding dramatic gestures which grab headlines but are of questionable outcome over time. Our commitment is to build shareholder value for the long run, consistently, one dollar at a time." 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 January 15, 2004 SUFFOLK [LOGO] BANCORP Page 2 of 4 STATISTICAL SUMMARY (unaudited, in thousands of dollars except for share and per share data)
4th Q 2003 4th Q 2002 Change YTD 2003 YTD 2002 Change ------------ ------------ ---------- ---------- ---------- ---------- EARNINGS Net Income $ 5,499 $ 5,337 3.0% $ 21,336 $ 21,269 0.3% Net Interest Income 15,431 15,971 (3.4%) 61,294 62,340 (1.7%) Earnings-Per-Share - Basic 0.50 0.46 8.7% 1.92 1.82 5.5% Cash Dividends-Per-Share 0.19 0.17 11.8% 0.76 0.68 11.8% AVERAGE BALANCES Average Assets 1,315,082 1,280,908 2.7% 1,297,849 1,238,471 4.8% Average Net Loans 828,349 769,877 7.6% 807,430 781,521 3.3% Average Investment Securities 385,707 366,091 5.4% 369,708 311,583 18.7% Average Deposits 1,191,315 1,159,437 2.7% 1,174,894 1,113,851 5.5% Average Equity 96,508 104,620 (7.8%) 97,275 100,724 (3.4%) RATIOS Return on Average Equity 22.79% 20.41% 11.7% 21.93% 21.12% 3.8% Return on Average Assets 1.67% 1.67% 0.0% 1.64% 1.72% (4.7%) Average Equity/Assets 7.34% 8.17% (10.2%) 7.50% 8.13% (7.8%) Net Interest Margin (FTE) 5.06% 5.40% (6.3%) 5.14% 5.45% (5.7%) Efficiency Ratio 49.12% 50.75% (3.2%) 49.98% 49.36% 1.3% Tier 1 Leverage Ratio Dec. 31 7.21% 7.77% (7.2%) Tier 1 Risk-based Capital Ratio Dec. 31 10.15% 11.29% (10.1%) Total Risk-based Capital Ratio Dec. 31 11.06% 12.28% (9.9%) ASSET QUALITY during period: Net Charge-offs $ 220 $ 741 (70.3%) $ 1,076 $ 1,510 (28.7%) Net Charge-offs/Average Net Loans (annual) 0.11% 0.38% (71.1%) 0.13% 0.19% (31.0%) at end of period: Non-accrual & Restructured Loans $ 1,819 $ 1,758 3.5% Foreclosed Real Estate ("OREO") 0 0 0.0% Total Non-performing Assets 1,819 1,758 3.5% Allowance/Non-performing Assets 470.09% 494.60% (5.0%) Allowance/Loans, Net of Discount 1.02% 1.10% (7.3%) Net Loans/Deposits 69.94% 68.25% 2.5% EQUITY Shares Outstanding 10,949,283 11,489,481 (4.7%) Common Equity $ 100,170 $ 108,792 (7.9%) Book Value Per Common Share 9.15 9.47 (3.4%) Tangible Common Equity 99,356 107,978 (8.0%) Tangible Book Value Per Common Share 9.07 9.40 (3.5%) LOAN DISTRIBUTION at end of period: Commercial, Financial & Agricultural Loans 171,616 150,130 14.3% Commercial Real Estate Mortgages 232,119 183,501 26.5% Real Estate - Construction Loans 30,461 36,558 (16.7%) Residential Mortgages (1st and 2nd Liens) 113,979 94,864 20.1% Home Equity Loans 60,397 44,349 36.2% Consumer Loans 229,711 277,633 (17.3%) Other Loans 778 1,522 (48.9%) ----------- ----------- Total Loans (Net of Unearned Discounts) $ 839,061 $ 788,557 6.4%
PRESS RELEASE January 15, 2004 SUFFOLK [LOGO] BANCORP Page 3 of 4 CONSOLIDATED STATEMENTS OF CONDITION (unaudited, in thousands of dollars except for share and per share data)
December 31, 2003 2002 Change ----------- ----------- ---------- ASSETS Cash & Due From Banks $ 52,053 $ 48,000 8.4% Federal Funds Sold 4,300 17,500 (75.4%) Investment Securities: Available for Sale, at Fair Value 376,188 359,903 4.5% Obligations of States & Political Subdivisions 12,369 14,884 (16.9%) 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 390,830 376,886 3.7% Total Loans 839,061 788,557 6.4% Allowance for Possible Loan Losses 8,551 8,695 (1.7%) ----------- ----------- Net Loans 830,510 779,862 6.5% Premises & Equipment, Net 22,780 20,437 11.5% Accrued Interest Receivable, Net 5,869 5,946 (1.3%) Excess of Cost Over Fair Value of Net Assets Acquired 814 814 0.0% Other Assets 21,601 23,272 (7.2%) ----------- ----------- TOTAL ASSETS $ 1,328,757 $ 1,272,717 4.4% =========== =========== LIABILITIES & STOCKHOLDERS' EQUITY Demand Deposits $ 364,119 $ 314,714 15.7% Saving, N.O.W. & Money Market Deposits 587,553 557,967 5.3% Time Certificates of $100,000 or more 21,947 23,495 (6.6%) Other Time Deposits 213,777 246,406 (13.2%) ----------- ----------- Total Deposits 1,187,396 1,142,582 3.9% Federal Home Loan Bank Borrowings 20,000 -- 100.0% Dividend Payable on Common Stock 2,080 1,956 6.3% Accrued Interest Payable 800 1,335 (40.1%) Other Liabilities 18,311 18,052 1.4% ----------- ----------- TOTAL LIABILITIES 1,228,587 1,163,925 5.6% ----------- ----------- STOCKHOLDERS' EQUITY Common Stock (par value $2.50; 15,000,000 shares authorized; 10,949,283 and 11,489,481 shares outstanding at December 31, 2003 and 2002, respectively) 33,879 33,838 0.1% Surplus 19,375 19,230 0.8% Treasury Stock at Par (2,602,335and 2,045,737 shares, respectively) (6,506) (5,114) 27.2% Undivided Profits 48,888 52,453 (6.8%) ----------- ----------- 95,636 100,407 (4.8%) Accumulated Other Comprehensive Income, Net of Tax 4,534 8,385 (45.9%) ----------- ----------- TOTAL STOCKHOLDERS' EQUITY 100,170 108,792 (7.9%) TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,328,757 $ 1,272,717 4.4% =========== ===========
PRESS RELEASE January 15, 2004 SUFFOLK [LOGO] BANCORP 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 For the Year to Date 12/31/03 12/31/02 Change 2003 2002 Change ----------- ----------- -------- ----------- ----------- -------- INTEREST INCOME Federal Funds Sold $ 30 $ 199 (84.9%) $ 221 $ 707 (68.7%) United States Treasury Securities 104 105 (1.0%) 416 472 (11.9%) Obligations of States & Political Subdivisions 162 142 14.1% 563 567 (0.7%) Mortgage-Backed Securities 2,337 3,156 (26.0%) 10,396 12,143 (14.4%) U.S. Government Agency Obligations 1,077 822 31.0% 3,691 2,895 27.5% Corporate Bonds & Other Securities 9 16 (43.8%) 94 84 11.9% Loans 13,680 14,976 (8.7%) 55,714 61,560 (9.5%) ----------- ----------- ----------- ----------- Total Interest Income 17,399 19,416 (10.4%) 71,095 78,428 (9.3%) INTEREST EXPENSE Saving, N.O.W. & Money Market Deposits 655 1,443 (54.6%) 3,658 6,645 (45.0%) Time Certificates of $100,000 or more 102 198 (48.5%) 478 846 (43.5%) Other Time Deposits 1,195 1,804 (33.8%) 5,604 8,596 (34.8%) Federal Funds Purchased -- -- 0.0% 12 1 1,100.0% Interest on Other Borrowings 16 -- 100.0% 49 -- 100.0% ----------- ----------- ----------- ----------- Total Interest Expense 1,968 3,445 (42.9%) 9,801 16,088 (39.1%) Net-interest Income 15,431 15,971 (3.4%) 61,294 62,340 (1.7%) Provision for Possible Loan Losses 212 360 (41.1%) 932 1,380 (32.5%) ----------- ----------- ----------- ----------- Net-interest Income After Provision 15,219 15,611 (2.5%) 60,362 60,960 (1.0%) OTHER INCOME Service Charges on Deposit Accounts 1,413 1,446 (2.3%) 5,693 5,691 0.0% Other Service Charges, Commissions & Fees 679 537 26.4% 2,537 2,081 21.9% Fiduciary Fees 324 281 15.3% 1,199 1,141 5.1% Net Securities Gains -- -- 0.0% 464 -- 100.0% Other Operating Income 488 467 4.5% 1,417 1,160 22.2% ----------- ----------- ----------- ----------- Total Other Income 2,904 2,731 6.3% 11,310 10,073 12.3% OTHER EXPENSE Salaries & Employee Benefits 5,440 5,450 (0.2%) 21,770 20,788 4.7% Net Occupancy Expense 636 710 (10.4%) 2,856 2,789 2.4% Equipment Expense 506 717 (29.4%) 2,181 2,617 (16.7%) Other Operating Expense 2,425 2,615 (7.3%) 9,483 9,550 (0.7%) ----------- ----------- ----------- ----------- Total Other Expense 9,007 9,492 (5.1%) 36,290 35,744 1.5% Income Before Provision for Income Taxes 9,116 8,850 3.0% 35,382 35,289 0.3% Provision for Income Taxes 3,617 3,513 3.0% 14,046 14,020 0.2% ----------- ----------- ----------- ----------- NET INCOME $ 5,499 $ 5,337 3.0% $ 21,336 $ 21,269 0.3% =========== =========== =========== =========== Average: Common Shares Outstanding 10,948,579 11,519,318 (5.0%) 11,055,897 11,657,984 (5.2%) Dilutive Stock Options 36,408 43,682 (16.7%) 34,205 42,457 (19.4%) ----------- ----------- ----------- ----------- Average Total 10,984,987 11,563,000 (5.0%) 11,090,102 11,700,441 (5.2%) EARNINGS PER COMMON SHARE Basic $ 0.50 $ 0.46 8.7% $ 1.92 $ 1.82 5.5% Diluted $ 0.50 $ 0.46 8.7% $ 1.92 $ 1.82 5.5%
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