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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

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Quarter Ended March 31, 2002		Commission file number 0-14403

BRUNSWICK BANCORP

NEW JERSEY		22-2610694
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification Number)
NEW BRUNSWICK, NEW JERSEY		08901
(Address of Principal Executive Office)		(Zip Code)

(732) 247-5800

NOT APPLICABLE

COMMON STOCK, NO PAR VALUE		1,904,532 SHARES
(Class of Stock)		(Outstanding at March 31, 2002)

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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 periods that the registrant was required to file such report), and (2) has been subject to such filing requirements for the past 90 days.

Yes		No

 

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PART I — FINANCIAL INFORMATION
	Item 1. Financial Statements (Unaudited)
		CONSOLIDATED BALANCE SHEETS
		CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED MARCH 31, 2002, 2001 AND 2000
		CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY THREE MONTHS ENDED MARCH 31, 2002, 2001 AND 2000
		CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2002, 2001 AND 2000
		NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF                      FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
	ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
	SIGNATURES

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BRUNSWICK BANCORP AND SUBSIDIARIES

INDEX

				PAGE
PART I - FINANCIAL INFORMATION
Item 1.		Financial Statements (Unaudited)
		Consolidated Balance Sheets March 31, 2002 and December 31, 2001		1
		Consolidated Statements of Income Three Months Ended March 31, 2002, 2001 and 2000		2
		Consolidated Statements of Stockholders’ Equity Three Months Ended March 31, 2002, 2001 and 2000		3
		Consolidated Statements of Cash Flows Three Months Ended March 31, 2002, 2001 and 2000		4
		Notes to Consolidated Financial Statements		5-6
Item 2.		Management’s Discussion and Analysis of Financial Conditions and Results of Operation		7-8
PART II - OTHER INFORMATION
Item 6.		Exhibits and Reports on Form 8-K		9
Signatures				10

 

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Page 1

BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
UNAUDITED

						March 31				December 31
						2002				2001
ASSETS:
	Cash and due from banks					$	5,402,062			$	9,064,753
	Federal funds sold						13,100,000				6,000,000
		Total cash and cash equivalents					18,502,062				15,064,753
	Securities held to maturity						34,903,244				34,913,592
	Loans receivable, net						56,889,441				56,090,636
	Premises and equipment						1,212,775				1,256,514
	Accrued interest receivable						977,163				1,139,374
	Other assets						698,099				538,815
				TOTAL ASSETS		$	113,182,784			$	109,003,684
LIABILITIES AND STOCKHOLDERS’ EQUITY:
	Liabilities:
		Deposits:
				Non-interest bearing		$	28,602,557			$	29,118,166
				Interest bearing			56,549,693				52,509,335
				Total deposits			85,152,250				81,627,501
		Borrowed funds					559,655				704,482
		Accrued interest payable					178,798				177,569
		Other liabilities					616,703				248,324
				Total liabilities			86,507,406				82,757,876
	Stockholders’ equity
		Common stock, no par value
			Authorized 10,000,000 shares;
			Issued and outstanding 1,904,532 shares at March 31, 2002 and December 31, 2001				3,809,064				3,809,064
		Additional paid-in capital					2,973,380				2,973,380
		Retained earnings					20,876,283				20,473,038
		Deferred stock compensation					(891,575	)			(917,900	)
		Treasury stock at cost, 9300 shares					(91,774	)			(91,774	)
				Total stockholders’ equity			26,675,378				26,245,808
				TOTAL LIABILITIES AND STOCKHOLDER’ EQUITY		$	113,182,784			$	109,003,684

 

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BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 2002, 2001 AND 2000
UNAUDITED

				2002				2001				2000
INTEREST INCOME:
	Interest and fees on loans receivable			$	1,400,409			$	1,430,056			$	1,124,429
	Interest on investments				509,732				501,619				320,754
	Interest on Federal funds sold				54,606				265,543				475,619
		Total interest income			1,964,747				2,197,218				1,920,802
INTEREST EXPENSE:
	Interest on deposits				197,502				459,684				482,340
	Interest on borrowed funds				1,313				3,753				4,147
		Total interest expense			198,815				463,437				486,487
Net interest income					1,765,932				1,733,781				1,434,315
Provision for credit losses					50,000				—				35,000
Net interest income after provision for credit losses					1,715,932				1,733,781				1,399,315
NON-INTEREST INCOME:
	Service fees				206,496				219,203				230,672
	Other non-interest income				14,534				17,540				4,080
		Total non-interest income			221,030				236,743				234,752
NON-INTEREST EXPENSES
	Salaries and wages				467,012				466,240				467,965
	Employee benefits				195,169				167,707				148,099
	Occupancy				173,962				178,836				156,428
	Furniture and equipment				45,413				53,239				48,299
	Other non-interest expenses				335,161				347,279				306,516
		Total non-interest expenses			1,216,717				1,213,301				1,127,307
Income before income tax expense					720,245				757,223				506,760
Income tax expense					317,000				302,100				202,850
NET INCOME				$	403,245			$	455,123			$	303,910
NET INCOME PER SHARE				$	0.21			$	0.24			$	0.16

 

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BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
THREE MONTHS ENDED MARCH 31, 2002, 2001 AND 2000
UNAUDITED

															DEFERRED
															STOCK
			COMMON								RETAINED				COMPEN-				TREASURY
			STOCK				SURPLUS				EARNINGS				SATION				STOCK				TOTAL
	Balance, December 31, 1999		$	1,804,532			$	3,924,112			$	17,020,826			$	—			$	(91,774	)		$	22,657,696
	Net income			—				—				303,910				—				—				303,910
	Stock split			1,804,532				(1,804,532	)			—				—				—				—
	Balance, March 31, 2000		$	3,609,064			$	2,119,580			$	17,324,736			$	—			$	(91,774	)		$	22,961,606
	Balance, December 31, 2000		$	3,729,064			$	2,621,380			$	18,647,756			$	(580,400	)		$	(91,774	)		$	24,326,026
	Net income			—				—				455,123				—				—				455,123
	Deferred stock compensation			80,000				420,000				—				(500,000	)			—				—
	Amortization of deferred stock compensation			—				—				—				15,525				—				15,525
	Balance, March 31, 2001		$	3,809,064			$	3,041,380			$	19,102,879			$	(1,064,875	)		$	(91,774	)		$	24,796,674
	Balance, December 31, 2001		$	3,809,064			$	2,973,380			$	20,473,038			$	(917,900	)		$	(91,774	)		$	26,245,808
	Net income			—				—				403,245				—				—				403,245
	Amortization of deferred stock compensation			—				—				—				26,325				—				26,325
	Balance, March 31, 2002		$	3,809,064			$	2,973,380			$	20,876,283			$	(891,575	)		$	(91,774	)		$	26,675,378

 

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BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2002, 2001 AND 2000
UNAUDITED

					2002				2001				2000
OPERATING ACTIVITIES:
	Net income				$	403,245			$	455,123			$	303,910
	Adjustments to reconcile net income to cash provided by operating activities:
		Provision for credit losses				50,000				—				35,000
		Depreciation and amortization				33,376				48,512				38,408
		Net accretion of securities discounts				(27,679	)			(10,495	)			(18,479	)
		(Increase) decrease in other assets				2,927				80,244				(476,281	)
		Increase (decrease) in other liabilities				369,608				455,874				409,268
			Net cash provided (used) by operating activities			831,477				1,029,258				291,826
INVESTING ACTIVITIES:
	Maturities of securities					11,000,000				6,000,000				—
	Principal repayments on securities					22,353				5,953				19,062
	Purchases of securities					(10,984,326	)			(11,000,000	)			—
	Net (increase) decrease in loans receivable					(848,805	)			(105,372	)			(681,564	)
	Acquisitions of premises and equipment					—				(3,990	)			(243,548	)
	Proceeds from sale of premises					10,363				—				—
			Net cash provided (used) by investing activities			(800,415	)			(5,103,409	)			(906,050	)
FINANCING ACTIVITIES:
	Net increase (decrease) in non-interest bearing deposits					(515,609	)			1,782,923				1,181,711
	Net increase (decrease) in interest bearing deposits					4,040,358				(7,751,844	)			(3,424,965	)
	Net increase (decrease) in borrowed funds					(144,827	)			(286,250	)			(374,126	)
	Amortization of deferred stock compensation					26,325				—				—
			Net cash provided (used) by financing activities			3,406,247				(6,255,171	)			(2,617,380	)
Increase (decrease) in cash and cash equivalents						3,437,309				(10,329,322	)			(3,231,604	)
Cash and cash equivalents at January 1						15,064,753				39,271,870				40,505,416
Cash and cash equivalents at March 31					$	18,502,062			$	28,942,548			$	37,273,812

 

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BRUNSWICK BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1
BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. The information presented includes all normal and recurring adjustments considered necessary for a fair presentation of the interim period results.

NOTE 2
SECURITIES HELD TO MATURITY

The following is a comparative summary of the book values and estimated market values of securities held to maturity:

		MARCH 31, 2002
		BOOK				MARKET
		VALUE				VALUE
U.S. Government and agency securities		$	32,953,244			$	32,907,512
Other securities			1,950,000				1,950,000
		$	34,903,244			$	34,857,512

		DECEMBER 31, 2001
		BOOK				MARKET
		VALUE				VALUE
U.S. Government and agency securities		$	32,963,592			$	33,239,087
Other securities			1,950,000				1,950,000
		$	34,913,592			$	35,189,087

 

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BRUNSWICK BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3
NET LOANS RECEIVABLE

The composition of net loans receivable is as follows:

			MARCH 31				DECEMBER 31
			2002				2001
Commercial loans			$	26,038,373			$	25,902,467
Real estate loans				31,218,923				30,221,330
Consumer loans				681,853				847,005
				57,939,149				56,970,802
Less:
	Allowance for credit losses			959,191				800,000
	Unearned income			90,517				80,166
			$	56,889,441			$	56,090,636

NOTE 4
PREMISES AND EQUIPMENT

The major components of premises and equipment are as follows:

		MARCH 31				DECEMBER 31
		2002				2001
Land		$	516,927			$	516,927
Bank premises			745,958				745,958
Leasehold improvements			183,023				183,023
Furniture and equipment			1,095,861				1,178,536
			2,541,769				2,624,444
Less accumulated depreciation and amortization			1,328,994				1,367,930
		$	1,212,775			$	1,256,514

 

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BRUNSWICK BANCORP AND SUBSIDIARIES
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
MARCH 31, 2002

There were no significant changes in the Corporation's Balance Sheet since December 31, 2001.

Federal funds sold increased by $7,100,000. This increase, for the most part, was the result of an increase of $3,525,000 in investment securities and a $3,663,000 decrease in cash and due from banks.

The allowance for credit losses increased by approximately $159,000, which was due to $50,000 in credit loss provisions and recoveries totaling $109,000. At March 31, 2002 the allowance for credit losses totaled $959,191 which represented 31% of past due and nonaccrual loans.

The results of operations for the first quarter of 2002, compared to the same period of 2001, show a decrease in income before taxes of approximately $37,000.

Due to declining interest rates interest income and expenses decreased by $232,000 and $264,000, respectively which resulted in a $32,000 increase in net interest income. This increase is analyzed in detail on page 8.

The corporation continues to be "Well Capitalized" which is the highest classification a bank can receive. At March 31, 2002 our total risk-based capital ratio was 42.6% which is over five times the regulatory requirement.

In Management's opinion, the Corporation's liquidity position is strong, based on its high level of core deposits, the stability of its other funding sources and the support provided by its capital base.

 

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BRUNSWICK BANCORP AND SUBSIDIARIES
ANALYSIS OF CHANGES IN NET INTEREST INCOME

					Increase (Decrease) Due to Changes in
					Volume				Rates				Total
Three Months Ended March 31, 2002
			Versus
Three Months Ended March 31, 2001
Interest income on:
	Loans receivable				$	269			$	37			$	306
	Securities held to maturity					103				78				181
	Federal funds sold					(208	)			(3	)			(211	)
		Total interest income				164				112				276
Interest expense on:
	Deposits					(3	)			(20	)			(23	)
	Borrowed funds					—				—				—
		Total interest expense				(3	)			(20	)			(23	)
		Net interest income			$	167			$	132			$	299

 

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BRUNSWICK BANCORP AND SUBSIDIARIES
PART II — OTHER INFORMATION

ITEM 6
EXHIBITS AND REPORTS ON FORM 8-K

The Corporation filed no Form 8-K during the three months ended March 31, 2002.

 

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BRUNSWICK BANCORP AND SUBSIDIARIES
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 duly authorized.

BRUNSWICK BANCORP AND SUBSIDIARIES

04/23/02		Roman T. Gumina
Date		Roman T. Gumina, President
04/23/02		Thomas Fornale
Date		Thomas Fornale, Treasurer