Suffolk Bancorp (SUBK, Financial) filed Quarterly Report for the period ended 2009-06-30.
SUFFOLK BANCORP is a holding company which thru its subsidiaries is engaged in the general banking business. The Bank is a full-service bank serving the needs of the local residents of eastern Suffolk County. Approximately 90 percent of the Bank\'s business is devoted to rendering services to those residing in the immediate area of the Bank\'s main and branch offices. Suffolk Bancorp has a market cap of $283.5 million; its shares were traded at around $29.53 with a P/E ratio of 12.3 and P/S ratio of 2.8. The dividend yield of Suffolk Bancorp stocks is 3%. Suffolk Bancorp had an annual average earning growth of 8.2% over the past 5 years.
Net income was $5,708,000 for the quarter, down .1 percent from $5,714,000 posted during the same period last year. Earnings-per-share for the quarter were $0.59 versus $0.60, a decrease of 1.7 percent. Net income was $11,367,000 for the six months ended June 30, 2009, down from $13,273,000 posted during the same period last year. Earnings per share were $1.18 for the six month period ended June 30, 2009, down from $1.39 posted last year. Included in net income of the first quarter of 2008, is $2,429,000 attributed to the Visa, Inc. transaction, net of income taxes. Accordingly, to compare the first six months of 2009 to the prior comparable period of 2008, exclusive of the Visa, Inc. transaction, earnings-per-share were $1.18, an increase of 4.4 percent from $1.13 during the comparable period of 2008. Without the Visa, Inc. transaction, return on average equity decreased to 18.94 percent from 19.30 percent last year.
Interest income was $22,025,000 for the second quarter of 2009, up .2 percent from $21,986,000 posted for the same quarter in 2008. Average net loans during the second quarter of 2009 totaled $1,117,737,000 compared to $1,014,318,000 for the same period of 2008. During the second quarter of 2009, the yield on a fully taxable-equivalent basis was 5.94 percent on average earning assets of $1,543,857,000 down from 6.23 percent on average earning assets of $1,462,422,000 during the second quarter of 2008. Interest income remained relatively flat from quarter to quarter. Interest income was $43,724,000 for the first six months of 2009, down .5 percent from $43,953,000 recorded in the first six months of 2008. During the first six months of 2009, the yield on a fully taxable-equivalent basis was 5.92 percent on average earning assets of $1,537,029,000, down from 6.38 percent on average earning assets of $1,427,982,000 during the first six months of 2008.
Interest expense for the second quarter of 2009 was $3,119,000, down 43.8 percent from $5,548,000 for the same period of 2008. During the second quarter of 2009, the cost of funds was 1.22 percent on average interest-bearing liabilities of $1,023,111,000, down from 2.23 percent on average interest-bearing liabilities of $995,869,000 during the second quarter of 2008. Interest expense decreased due to decreased rates paid for Savings, N.O.W. and Money Market deposits, time certificates and borrowings, in addition to a decrease in average borrowings outstanding. Interest expense was $6,680,000 for the first six months of 2009, down 42.7 percent from $11,652,000 recorded last year to date. During the first six months of 2009, the cost of funds was 1.29 percent on average interest-bearing liabilities of $1,034,142,000, down from 2.40 percent on average interest-bearing liabilities of $970,198,000 during the first six months of 2008.
Net interest income, before the provision for loan losses, is the largest component of Suffolks earnings. It was $18,906,000 for the second quarter of 2009, up 15.0 percent from $16,438,000 during the same period of 2008. The net interest margin for the quarter, on a fully taxable-equivalent basis, was 5.14 percent compared to 4.71 percent for the same period of 2008.
For the six months ended June 30, 2009, net interest income was $37,044,000, up 14.7 percent from $32,301,000 during the same period of 2008. The net interest margin on a fully taxable-equivalent basis was 5.05 percent compared to 4.75 percent for the same period of 2008.
Read the The complete ReportSUBK is in the portfolios of Bruce Sherman of Private Capital Management.
SUFFOLK BANCORP is a holding company which thru its subsidiaries is engaged in the general banking business. The Bank is a full-service bank serving the needs of the local residents of eastern Suffolk County. Approximately 90 percent of the Bank\'s business is devoted to rendering services to those residing in the immediate area of the Bank\'s main and branch offices. Suffolk Bancorp has a market cap of $283.5 million; its shares were traded at around $29.53 with a P/E ratio of 12.3 and P/S ratio of 2.8. The dividend yield of Suffolk Bancorp stocks is 3%. Suffolk Bancorp had an annual average earning growth of 8.2% over the past 5 years.
Highlight of Business Operations:
Return on average equity decreased to 18.94 percent for the second quarter in 2009, down from 19.95 percent during the second quarter of 2008, and earnings-per-share decreased from $.60 in the second quarter of 2008 to $.59 in the second quarter of 2009. For the first six months of 2009, return on average equity decreased to 19.27 percent, down from 23.62 percent during the comparable period of 2008, and earnings per share decreased to $1.18 for the first six months of 2009, down from $1.39 for the same period last year. The decrease in return on average equity and earnings-per-share for the first six months of 2009 is the result of a net gain on sale of securities during the first quarter of 2008, the proceeds of which were realized from the sale of shares issued by Visa, Inc. in connection with its initial public offering. The Bank was a member of the former Visa, Inc. payments organization and was issued shares when Visa, Inc. was organized. Approximately 39 percent of those shares were redeemed in connection with the initial public offering. The remaining shares remain restricted because of unsettled litigation pending against Visa, Inc. Visa, Inc., at its discretion, may redeem additional restricted shares in order to resolve pending litigation. The restriction expires upon resolution of the pending litigation. Accordingly, Suffolk has recorded these shares at zero in the accompanying statement of condition. Upon expiration of the restriction, Suffolk expects to record the fair value of the remaining shares.Net income was $5,708,000 for the quarter, down .1 percent from $5,714,000 posted during the same period last year. Earnings-per-share for the quarter were $0.59 versus $0.60, a decrease of 1.7 percent. Net income was $11,367,000 for the six months ended June 30, 2009, down from $13,273,000 posted during the same period last year. Earnings per share were $1.18 for the six month period ended June 30, 2009, down from $1.39 posted last year. Included in net income of the first quarter of 2008, is $2,429,000 attributed to the Visa, Inc. transaction, net of income taxes. Accordingly, to compare the first six months of 2009 to the prior comparable period of 2008, exclusive of the Visa, Inc. transaction, earnings-per-share were $1.18, an increase of 4.4 percent from $1.13 during the comparable period of 2008. Without the Visa, Inc. transaction, return on average equity decreased to 18.94 percent from 19.30 percent last year.
Interest income was $22,025,000 for the second quarter of 2009, up .2 percent from $21,986,000 posted for the same quarter in 2008. Average net loans during the second quarter of 2009 totaled $1,117,737,000 compared to $1,014,318,000 for the same period of 2008. During the second quarter of 2009, the yield on a fully taxable-equivalent basis was 5.94 percent on average earning assets of $1,543,857,000 down from 6.23 percent on average earning assets of $1,462,422,000 during the second quarter of 2008. Interest income remained relatively flat from quarter to quarter. Interest income was $43,724,000 for the first six months of 2009, down .5 percent from $43,953,000 recorded in the first six months of 2008. During the first six months of 2009, the yield on a fully taxable-equivalent basis was 5.92 percent on average earning assets of $1,537,029,000, down from 6.38 percent on average earning assets of $1,427,982,000 during the first six months of 2008.
Interest expense for the second quarter of 2009 was $3,119,000, down 43.8 percent from $5,548,000 for the same period of 2008. During the second quarter of 2009, the cost of funds was 1.22 percent on average interest-bearing liabilities of $1,023,111,000, down from 2.23 percent on average interest-bearing liabilities of $995,869,000 during the second quarter of 2008. Interest expense decreased due to decreased rates paid for Savings, N.O.W. and Money Market deposits, time certificates and borrowings, in addition to a decrease in average borrowings outstanding. Interest expense was $6,680,000 for the first six months of 2009, down 42.7 percent from $11,652,000 recorded last year to date. During the first six months of 2009, the cost of funds was 1.29 percent on average interest-bearing liabilities of $1,034,142,000, down from 2.40 percent on average interest-bearing liabilities of $970,198,000 during the first six months of 2008.
Net interest income, before the provision for loan losses, is the largest component of Suffolks earnings. It was $18,906,000 for the second quarter of 2009, up 15.0 percent from $16,438,000 during the same period of 2008. The net interest margin for the quarter, on a fully taxable-equivalent basis, was 5.14 percent compared to 4.71 percent for the same period of 2008.
For the six months ended June 30, 2009, net interest income was $37,044,000, up 14.7 percent from $32,301,000 during the same period of 2008. The net interest margin on a fully taxable-equivalent basis was 5.05 percent compared to 4.75 percent for the same period of 2008.
Read the The complete ReportSUBK is in the portfolios of Bruce Sherman of Private Capital Management.
