EXHIBIT 99.1
Financial Statements
CENTRAL JERSEY FINANCIAL CORPORATION
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Consolidated Statements of Financial Condition
June 30, March 31,
(Unaudited) 1996 1996
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Assets
Cash and due from depository institutions $ 10,617,272 $ 8,804,911
Investment securities; available for sale 8,139,121 8,266,858
Investment securities; portfolio 23,467,251 18,501,517
Mortgage-backed securities; portfolio 192,551,331 191,530,667
Loans held for sale 2,243,825 2,231,803
Loans receivable, net 213,605,817 220,109,248
Interest receivable on loans, net 1,537,732 1,506,442
Real estate held for development and resale, net 357,490 507,490
Real estate acquired in settlement of loans, net 249,424 26,674
Investment in capital stock of Federal Home Loan
Bank of New York 3,560,600 3,560,600
Premises and equipment, net 5,296,805 5,363,567
Excess of cost over fair value of net assets acquired 3,700,627 3,791,467
Other assets 3,961,527 4,070,726
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Total assets $469,288,822 $468,271,970
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Liabilities and stockholders' equity
Deposits $385,556,360 $386,569,400
Other borrowed funds 22,800,000 22,500,000
Advances from borrowers for taxes and insurance 1,565,821 1,542,477
Accrued income taxes and other liabilities 3,377,244 2,048,126
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Total liabilities 413,299,425 412,660,003
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Serial preferred stock: authorized, 15,000,000
shares for issuance in series; issued and
outstanding, none -- --
Common stock: no par value; authorized,
25,000,000 shares; issued and outstanding 2,668,269 2,668,269 2,668,269
Paid-in capital 18,510,912 18,510,912
Retained earnings - substantially restricted 34,761,832 34,319,114
Net unrealized gain on securities available for sale 48,384 113,672
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Total stockholders' equity 55,989,397 55,611,967
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Total liabilities and stockholders' equity $469,288,822 $468,271,970
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SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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CENTRAL JERSEY FINANCIAL CORPORATION
Consolidated Statements of Operations Three Months Ended
June 30,
(Unaudited) 1996 1995
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Interest income
Interest on loans receivable $ 4,477,156 $ 5,022,003
Interest on mortgage-backed securities 3,334,501 2,522,567
Interest on investment securities 496,784 454,345
Interest on deposits in other banks 17,715 14,014
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Total interest income 8,326,156 8,012,929
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Interest expense
Interest on deposits 3,924,793 3,929,169
Interest on long-term debt -- 185,761
Interest on other borrowed funds 284,470 232,152
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Total interest expense 4,209,263 4,347,082
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Net interest income 4,116,893 3,665,847
Provision for loan losses 50,000 50,000
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Net interest income after provision for loan losses 4,066,893 3,615,847
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Non-interest income (loss)
Fee income 248,012 243,484
Income on investment in Federal Home Loan Bank 55,330 65,892
Gain on sales of loans, net 121,218 99,332
Loss from real estate operations (62,955) (42,471)
Other 1,193 --
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Total non-interest income 362,798 366,237
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Non-interest expenses
Salaries 918,351 879,845
Employee Benefits 207,277 188,863
Data processing fees and equipment costs 205,195 221,047
Federal deposit insurance 221,529 201,584
Net occupancy 119,711 106,253
Amortization of excess costs over fair
value of net assets acquired 90,840 90,840
Advertising 14,324 54,840
Other 622,303 353,488
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Total non-interest expenses 2,399,530 2,096,760
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Income before income taxes 2,030,161 1,885,324
Income tax expense 840,328 674,695
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Net income $ 1,189,833 $ 1,210,629
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Per share amounts:
Earnings per common share and common share
equivalent - assuming no dilution $ 0.43 $ 0.59
Earnings per common share - assuming full dilution
$ 0.43 $ 0.49
Average shares outstanding:
Assuming no dilution 2,762,734 2,034,907
Assuming full dilution 2,767,574 2,741,289
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Merger Agreement
Central Jersey Financial Corporation (the "Corporation"), on May 22, 1996,
entered into a definitive merger agreement (the "Agreement") with Summit Bancorp
("Summit"). The Agreement provides for Summit to acquire the Corporation in a
tax-free exchange of stock, as described in the Notes to Consolidated Financial
Statements appearing in the Corporation's Annual Report on Form 10-K for the
fiscal year ended March 31, 1996.
The transaction is expected to be completed in the fourth quarter of
calendar 1996, subject to the approval of the Corporation's shareholders,
regulatory approvals and the market price of Summit.
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