##### Table of Contents



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



---

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

BRUNSWICK BANCORP

(Exact Name of Registrant as Specified in its Charter)








|                                                               |  |                                        
|-------------------------------------------------------------- |  | ---------------------------------------
|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

(Registrants Telephone Number Including Area Code)


NOT APPLICABLE

(Former Name, Former Address and Former Fiscal Year
If Changed Since Last Report)


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



---

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 [X] |  | No [ ]





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TABLE OF CONTENTS



|                                 |                                          |                                                                                                                     |  |  |  |  |  | 
|-------------------------------- | ---------------------------------------- | ------------------------------------------------------------------------------------------------------------------- |  |  |  |  |  | 
|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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##### Table of Contents



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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##### Table of Contents









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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##### Table of Contents



Page 2




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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##### Table of Contents



Page 3




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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Page 4




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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Page 5




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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Page 6

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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Page 7




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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Page 8

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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Page 9

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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Page 10




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