##### 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



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|                                 |  |                               
|-------------------------------- |  | ------------------------------
|Quarter ended September 30, 2001 |  | Commission file number 0-14403

BRUNSWICK BANCORP

---

(Exact Name of Registrant as Specified in its Charter)




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

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(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 September 30, 2001)



---

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 Box) |  | No |  | (Box)
|    |  |         |  |    |  |      





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TABLE OF CONTENTS



|                                |                                                                                                |                                                 |  |  |  |  |  | 
|------------------------------- | ---------------------------------------------------------------------------------------------- | ----------------------------------------------- |  |  |  |  |  | 
|PART I   FINANCIAL INFORMATION
|                                | Item 1. Financial Statements (Unaudited)                                                      
|                                |                                                                                                | Consolidated Balance Sheets                    
|                                |                                                                                                | Consolidated Statements of Income              
|                                |                                                                                                | Consolidated Statements of Income              
|                                |                                                                                                | Consolidated Statements of Stockholders Equity
|                                |                                                                                                | Consolidated Statements of Cash Flows          
|                                |                                                                                                | Notes to Consolidated Financial Statements     
|                                | Item 2. Managements Discussion and Analysis of Financial Conditions and Results of Operations
|PART II  OTHER INFORMATION    
|                                | Item 6. Exhibits and Reports on Form 8-K                                                      
|                                | Signatures                                                                                    



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##### Table of Contents



BRUNSWICK BANCORP AND SUBSIDIARIES

INDEX



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|          |  |                       |  |                                                                                                     |  |     
|--------- |  | --------------------- |  | --------------------------------------------------------------------------------------------------- |  | ----
|          |  |                       |  |                                                                                                     |  | PAGE
|PART I -  |  | FINANCIAL INFORMATION |  |                                                                                                    
|         
|         
|         
|         
|          |  | Item 1.               |  | Financial Statements (Unaudited)                                                                    |  |     
|         
|         
|         
|         
|          |  |                       |  | Consolidated Balance Sheets
September 30, 2001 and December 31, 2000                                |  | 1   
|         
|         
|         
|         
|          |  |                       |  | Consolidated Statements of Income
Nine Months Ended September 30, 2001, 2000 and 1999               |  | 2   
|         
|         
|         
|         
|          |  |                       |  | Consolidated Statements of Income
Quarters Ended September 30, 2001, 2000 and 1999                  |  | 3   
|         
|         
|         
|         
|          |  |                       |  | Consolidated Statements of Stockholders Equity
Nine Months Ended September 30, 2001, 2000 and 1999 |  | 4   
|         
|         
|         
|         
|          |  |                       |  | Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2001, 2000 and 1999           |  | 5   
|         
|         
|         
|         
|          |  |                       |  | Notes to Consolidated Financial Statements                                                          |  | 6-7 
|         
|         
|         
|         
|          |  | Item 2.               |  | Managements Discussion and Analysis of Financial
Conditions and Results of Operation               |  | 8-9 
|         
|         
|         
|         
|PART II - |  | OTHER INFORMATION     |  |                                                                                                    
|         
|         
|         
|         
|          |  | Item 6.               |  | Exhibits and Reports on Form 8-K                                                                    |  | 10  
|         
|         
|         
|         
|          |  | Signatures            |  | 11                                                                                                 





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##### Table of Contents












BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
UNAUDITED

|                                      |                             |                                        |                                                                                                                  |                                           |            |              |             |             |            |           |             | 
|------------------------------------- | --------------------------- | -------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ----------------------------------------- | ---------- | ------------ | ----------- | ----------- | ---------- | --------- | ----------- | 
|                                      |                             |                                        |                                                                                                                  |                                           |            | September 30 |             | December 31
|                                      |                             |                                        |                                                                                                                  |                                           |            | 2001         |             | 2000       
|                                      |                             |                                        |                                                                                                                  |                                           |            |              |             |            
|ASSETS:                               |                             |                                        |                                                                                                                  |                                           |            |              |             |            
|                                     
|                                     
|                                     
|                                     
|                                      | Cash and due from banks     |                                        | $                                                                                                                | 7,148,290                                 |            |              | $           | 6,671,870   |           
|                                     
|                                     
|                                     
|                                     
|                                      | Federal funds sold          |                                        |                                                                                                                  | 29,700,000                                |            |              |             | 32,600,000  |           
|                                      |                             |                                        |                                                                                                                  |                                           |            |              |             |            
|                                      |                             | Total cash and cash equivalents        |                                                                                                                  |                                           | 36,848,290 |              |             |             | 39,271,870 |          
|                                     
|                                     
|                                     
|                                     
|                                      | Securities held to maturity |                                        |                                                                                                                  | 24,374,051                                |            |              |             | 22,360,425  |           
|                                     
|                                     
|                                     
|                                     
|                                      | Loans receivable, net       |                                        |                                                                                                                  | 53,716,158                                |            |              |             | 53,024,231  |           
|                                     
|                                     
|                                     
|                                     
|                                      | Premises and equipment      |                                        |                                                                                                                  | 1,296,846                                 |            |              |             | 2,169,771   |           
|                                     
|                                     
|                                     
|                                     
|                                      | Other assets                |                                        |                                                                                                                  | 1,320,957                                 |            |              |             | 1,672,255   |           
|                                      |                             |                                        |                                                                                                                  |                                           |            |              |             |            
|                                      |                             |                                        |                                                                                                                  | TOTAL ASSETS                              |            | $            | 117,556,302 |             |            | $         | 118,498,552 | 
|                                      |                             |                                        |                                                                                                                  |                                           |            |              |             |            
|LIABILITIES AND STOCKHOLDERS EQUITY: |                             |                                        |                                                                                                                  |                                           |            |              |             |            
|                                     
|                                     
|                                     
|                                     
|                                      | Liabilities:                |                                        |                                                                                                                  |                                           |            |              |             |             |           
|                                     
|                                     
|                                     
|                                     
|                                      |                             | Deposits:                              |                                                                                                                  |                                           |            |              |             |             |            |          
|                                     
|                                     
|                                     
|                                     
|                                      |                             |                                        |                                                                                                                  | Non-interest bearing                      |            | $            | 28,463,449  |             |            | $         | 27,906,362  | 
|                                     
|                                     
|                                     
|                                     
|                                      |                             |                                        |                                                                                                                  | Interest bearing                          |            |              | 62,251,848  |             |            |           | 65,504,499  | 
|                                      |                             |                                        |                                                                                                                  |                                           |            |              |             |            
|                                      |                             |                                        |                                                                                                                  | Total deposits                            |            |              | 90,715,297  |             |            |           | 93,410,861  | 
|                                     
|                                     
|                                     
|                                     
|                                      |                             | Borrowed funds                         |                                                                                                                  |                                           | 507,896    |              |             |             | 392,318    |          
|                                     
|                                     
|                                     
|                                     
|                                      |                             | Accrued expenses and other liabilities |                                                                                                                  |                                           | 653,453    |              |             |             | 369,347    |          
|                                      |                             |                                        |                                                                                                                  |                                           |            |              |             |            
|                                      |                             |                                        |                                                                                                                  | Total liabilities                         |            |              | 91,876,646  |             |            |           | 94,172,526  | 
|                                      |                             |                                        |                                                                                                                  |                                           |            |              |             |            
|                                      | Stockholders equity        |                                        |                                                                                                                  |                                           |            |              |             |             |           
|                                     
|                                     
|                                     
|                                     
|                                      |                             | Common stock, no par value             |                                                                                                                  |                                           |            |              |             |             |            |          
|                                     
|                                     
|                                     
|                                     
|                                      |                             |                                        | Authorized 3,000,000 shares;
Issued 1,904,532 shares, September 30, 2001
and 1,864,532 shares, December 31, 2000 |                                           |            | 3,809,064    |             |             |            | 3,729,064 |            
|                                     
|                                     
|                                     
|                                     
|                                      |                             | Additional paid-in capital             |                                                                                                                  |                                           | 2,973,380  |              |             |             | 2,621,380  |          
|                                     
|                                     
|                                     
|                                     
|                                      |                             | Retained earnings                      |                                                                                                                  |                                           | 19,929,811 |              |             |             | 18,647,756 |          
|                                     
|                                     
|                                     
|                                     
|                                      |                             | Deferred stock compensation            |                                                                                                                  |                                           | (940,825   | )            |             |             | (580,400   | )        
|                                     
|                                     
|                                     
|                                     
|                                      |                             | Treasury stock at cost, 9300 shares    |                                                                                                                  |                                           | (91,774    | )            |             |             | (91,774    | )        
|                                      |                             |                                        |                                                                                                                  |                                           |            |              |             |            
|                                      |                             |                                        |                                                                                                                  | Total stockholders equity                |            |              | 25,679,656  |             |            |           | 24,326,026  | 
|                                      |                             |                                        |                                                                                                                  |                                           |            |              |             |            
|                                      |                             |                                        |                                                                                                                  | TOTAL LIABILITIES AND
STOCKHOLDER EQUITY |            | $            | 117,556,302 |             |            | $         | 118,498,552 | 
|                                      |                             |                                        |                                                                                                                  |                                           |            |              |             |            

Page 1





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##### Table of Contents






BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
NINE MONTHS ENDED SEPTEMBER 30, 2001, 2000 AND 1999
UNAUDITED

|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |           |           | 
|----------------------------------------------------- | ------------------------------------- | --------------------------- | --------- | --------- | --------- | ---- | --------- | --------- | --------- | - | --------- | --------- | --------- | 
|                                                      |                                       |                             |           | 2001      |           | 2000 |           | 1999     
|                                                      |                                       |                             |           |           |           |      |           |          
|INTEREST INCOME:                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Interest and fees on loans receivable |                             | $         | 4,154,751 |           |      | $         | 3,712,871 |           |   | $         | 3,159,541 |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Interest on investments               |                             |           | 1,466,711 |           |      |           | 1,133,076 |           |   |           | 1,067,689 |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Interest on Federal funds sold        |                             |           | 698,003   |           |      |           | 1,317,319 |           |   |           | 1,280,281 |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                      |                                       | Total interest income       |           |           | 6,319,465 |      |           |           | 6,163,266 |   |           |           | 5,507,511 | 
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|INTEREST EXPENSE:                                     |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Interest on deposits                  |                             |           | 1,194,503 |           |      |           | 1,466,604 |           |   |           | 1,388,890 |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Interest on borrowed funds            |                             |           | 7,572     |           |      |           | 13,477    |           |   |           | 6,995     |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                      |                                       | Total interest expense      |           |           | 1,202,075 |      |           |           | 1,480,081 |   |           |           | 1,395,885 | 
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|Net interest income                                   |                                       |                             | 5,117,390 |           |           |      | 4,683,185 |           |           |   | 4,111,626 |          
|                                                     
|                                                     
|                                                     
|                                                     
|Provision for credit losses                           |                                       |                             | 28,000    |           |           |      | 225,000   |           |           |   | 150,000   |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|Net interest income after provision
for credit losses |                                       |                             | 5,089,390 |           |           |      | 4,458,185 |           |           |   | 3,961,626 |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|NON-INTEREST INCOME:                                  |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Service fees                          |                             |           | 674,863   |           |      |           | 788,050   |           |   |           | 717,337   |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Other non-interest income             |                             |           | 44,074    |           |      |           | 69,281    |           |   |           | 17,735    |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                      |                                       | Total non-interest income   |           |           | 718,937   |      |           |           | 857,331   |   |           |           | 735,072   | 
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|NON-INTEREST EXPENSES                                 |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Salaries and wages                    |                             |           | 1,453,278 |           |      |           | 1,386,729 |           |   |           | 1,365,289 |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Employee benefits                     |                             |           | 533,402   |           |      |           | 421,198   |           |   |           | 363,171   |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Occupancy                             |                             |           | 542,794   |           |      |           | 475,837   |           |   |           | 461,494   |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Furniture and equipment               |                             |           | 166,474   |           |      |           | 160,329   |           |   |           | 162,039   |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Other non-interest expenses           |                             |           | 934,874   |           |      |           | 913,747   |           |   |           | 944,521   |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                      |                                       | Total non-interest expenses |           |           | 3,630,822 |      |           |           | 3,357,840 |   |           |           | 3,296,514 | 
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|Income before income tax expense                      |                                       |                             | 2,177,505 |           |           |      | 1,957,676 |           |           |   | 1,400,184 |          
|                                                     
|                                                     
|                                                     
|                                                     
|Income tax expense                                    |                                       |                             | 895,450   |           |           |      | 910,860   |           |           |   | 604,904   |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|NET INCOME                                            |                                       | $                           | 1,282,055 |           |           | $    | 1,046,816 |           |           | $ | 795,280   |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|NET INCOME PER SHARE                                  |                                       | $                           | 0.67      |           |           | $    | 0.55      |           |           | $ | 0.42      |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          

Page 2





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##### Table of Contents






BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
QUARTERS ENDED SEPTEMBER 30, 2001, 2000 AND 1999
UNAUDITED

|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |           |           | 
|----------------------------------------------------- | ------------------------------------- | --------------------------- | --------- | --------- | --------- | ---- | --------- | --------- | --------- | - | --------- | --------- | --------- | 
|                                                      |                                       |                             |           | 2001      |           | 2000 |           | 1999     
|                                                      |                                       |                             |           |           |           |      |           |          
|INTEREST INCOME:                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Interest and fees on loans receivable |                             | $         | 1,356,676 |           |      | $         | 1,321,997 |           |   | $         | 1,039,760 |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Interest on investments               |                             |           | 457,425   |           |      |           | 490,088   |           |   |           | 340,612   |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Interest on Federal funds sold        |                             |           | 200,511   |           |      |           | 338,460   |           |   |           | 460,087   |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                      |                                       | Total interest income       |           |           | 2,014,612 |      |           |           | 2,150,545 |   |           |           | 1,840,459 | 
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|INTEREST EXPENSE:                                     |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Interest on deposits                  |                             |           | 327,087   |           |      |           | 489,083   |           |   |           | 456,741   |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Interest on borrowed funds            |                             |           | 1,740     |           |      |           | 4,312     |           |   |           | 2,891     |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                      |                                       | Total interest expense      |           |           | 328,827   |      |           |           | 493,395   |   |           |           | 459,632   | 
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|Net interest income                                   |                                       |                             | 1,685,785 |           |           |      | 1,657,150 |           |           |   | 1,380,827 |          
|                                                     
|                                                     
|                                                     
|                                                     
|Provision for credit losses                           |                                       |                             | 21,000    |           |           |      | 75,000    |           |           |   | 75,000    |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|Net interest income after provision
for credit losses |                                       |                             | 1,664,785 |           |           |      | 1,582,150 |           |           |   | 1,305,827 |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|NON-INTEREST INCOME:                                  |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Service fees                          |                             |           | 212,253   |           |      |           | 245,201   |           |   |           | 227,136   |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Other non-interest income             |                             |           | 20,940    |           |      |           | 4,081     |           |   |           | 4,080     |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                      |                                       | Total non-interest income   |           |           | 233,193   |      |           |           | 249,282   |   |           |           | 231,216   | 
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|NON-INTEREST EXPENSES                                 |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Salaries and wages                    |                             |           | 495,199   |           |      |           | 448,463   |           |   |           | 476,744   |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Employee benefits                     |                             |           | 181,180   |           |      |           | 138,081   |           |   |           | 121,445   |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Occupancy                             |                             |           | 184,824   |           |      |           | 161,424   |           |   |           | 146,859   |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Furniture and equipment               |                             |           | 46,659    |           |      |           | 56,355    |           |   |           | 55,098    |          
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Other non-interest expenses           |                             |           | 274,304   |           |      |           | 248,133   |           |   |           | 295,596   |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|                                                      |                                       | Total non-interest expenses |           |           | 1,182,166 |      |           |           | 1,052,456 |   |           |           | 1,095,742 | 
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|Income before income tax expense                      |                                       |                             | 715,812   |           |           |      | 778,976   |           |           |   | 441,301   |          
|                                                     
|                                                     
|                                                     
|                                                     
|Income tax expense                                    |                                       |                             | 314,800   |           |           |      | 440,892   |           |           |   | 214,569   |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|NET INCOME                                            |                                       | $                           | 401,012   |           |           | $    | 338,084   |           |           | $ | 226,732   |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          
|NET INCOME PER SHARE                                  |                                       | $                           | 0.21      |           |           | $    | 0.18      |           |           | $ | 0.12      |          
|                                                      |                                       |                             |           |           |           |      |           |           |           |   |           |          

Page 3





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##### Table of Contents






BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
NINE MONTHS ENDED SEPTEMBER 30, 2001, 2000 AND 1999
UNAUDITED

|                                            |  |        |           |         |  |          |            |          |  |         |            |          |  |          |          |   |  |   |         |   |  |   |            |  
|------------------------------------------- |  | ------ | --------- | ------- |  | -------- | ---------- | -------- |  | ------- | ---------- | -------- |  | -------- | -------- | - |  | - | ------- | - |  | - | ---------- | -
|                                            |  |        |           |         |  |          |            |          |  |         |            |          |  | DEFERRED |          |   |  |   |         |   |  |  
|                                            |  |        |           |         |  |          |            |          |  |         |            |          |  | STOCK    |          |   |  |   |         |   |  |  
|                                            |  | COMMON |           |         |  |          |            | RETAINED |  | COMPEN- |            | TREASURY |  |          |          |  
|                                            |  | STOCK  |           | SURPLUS |  | EARNINGS |            | SATION   |  | STOCK   |            | TOTAL   
|                                            |  |        |           |         |  |          |            |          |  |         |            |         
|Balance, December 31, 1998                  |  | $      | 1,443,840 |         |  | $        | 4,284,804  |          |  | $       | 15,704,680 |          |  | $        |         |   |  | $ | (91,774 | ) |  | $ | 21,341,550 |  
|                                           
|                                           
|                                           
|                                           
|Net income                                  |  |        |          |         |  |          |           |          |  |         | 795,280    |          |  |          |         |   |  |   |        |   |  |   | 795,280    |  
|                                           
|                                           
|                                           
|                                           
|Stock split                                 |  |        | 360,692   |         |  |          | (360,692   | )        |  |         | (4,556     | )        |  |          |         |   |  |   |        |   |  |   | (4,556     | )
|                                            |  |        |           |         |  |          |            |          |  |         |            |          |  |          |          |   |  |   |         |   |  |   |            |  
|Balance, September 30, 1999                 |  | $      | 1,804,532 |         |  | $        | 3,924,112  |          |  | $       | 16,495,404 |          |  | $        |         |   |  | $ | (91,774 | ) |  | $ | 22,132,274 |  
|                                            |  |        |           |         |  |          |            |          |  |         |            |          |  |          |          |   |  |   |         |   |  |   |            |  
|Balance, December 31, 1999                  |  | $      | 1,804,532 |         |  | $        | 3,924,112  |          |  | $       | 17,020,826 |          |  | $        |         |   |  | $ | (91,774 | ) |  | $ | 22,657,696 |  
|                                           
|                                           
|                                           
|                                           
|Net income                                  |  |        |          |         |  |          |           |          |  |         | 1,046,816  |          |  |          |         |   |  |   |        |   |  |   | 1,046,816  |  
|                                           
|                                           
|                                           
|                                           
|Stock split                                 |  |        | 1,804,532 |         |  |          | (1,804,532 | )        |  |         |           |          |  |          |         |   |  |   |        |   |  |   |           |  
|                                           
|                                           
|                                           
|                                           
|Restricted stock awards                     |  |        | 120,000   |         |  |          | (120,000   | )        |  |         |           |          |  |          |         |   |  |   |        |   |  |   |           |  
|                                            |  |        |           |         |  |          |            |          |  |         |            |          |  |          |          |   |  |   |         |   |  |   |            |  
|Balance, September 30, 2000                 |  | $      | 3,729,064 |         |  | $        | 1,999,580  |          |  | $       | 18,067,642 |          |  | $        |         |   |  | $ | (91,774 | ) |  | $ | 23,704,512 |  
|                                            |  |        |           |         |  |          |            |          |  |         |            |          |  |          |          |   |  |   |         |   |  |   |            |  
|Balance, December 31, 2000                  |  | $      | 3,729,064 |         |  | $        | 2,621,380  |          |  | $       | 18,647,756 |          |  | $        | (580,400 | ) |  | $ | (91,774 | ) |  | $ | 24,326,026 |  
|                                           
|                                           
|                                           
|                                           
|Net income                                  |  |        |          |         |  |          |           |          |  |         | 1,282,055  |          |  |          |         |   |  |   |        |   |  |   | 1,282,055  |  
|                                           
|                                           
|                                           
|                                           
|Deferred stock compensation                 |  |        | 80,000    |         |  |          | 352,000    |          |  |         |           |          |  |          | (432,000 | ) |  |   |        |   |  |   |           |  
|                                           
|                                           
|                                           
|                                           
|Amortization of deferred
stock compensation |  |        |          |         |  |          |           |          |  |         |           |          |  |          | 71,575   |   |  |   |        |   |  |   | 71,575     |  
|                                            |  |        |           |         |  |          |            |          |  |         |            |          |  |          |          |   |  |   |         |   |  |   |            |  
|Balance, September 30, 2001                 |  | $      | 3,809,064 |         |  | $        | 2,973,380  |          |  | $       | 19,929,811 |          |  | $        | (940,825 | ) |  | $ | (91,774 | ) |  | $ | 25,679,656 |  
|                                            |  |        |           |         |  |          |            |          |  |         |            |          |  |          |          |   |  |   |         |   |  |   |            |  

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##### Table of Contents






BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2001, 2000 AND 1999
UNAUDITED

|                                                 |                                                                               |                                          |                                                  |             |         |            |             |             |          |             |            |            |          |            |  
|------------------------------------------------ | ----------------------------------------------------------------------------- | ---------------------------------------- | ------------------------------------------------ | ----------- | ------- | ---------- | ----------- | ----------- | -------- | ----------- | ---------- | ---------- | -------- | ---------- | -
|                                                 |                                                                               |                                          |                                                  |             | 2001    |            | 2000        |             | 1999    
|                                                 |                                                                               |                                          |                                                  |             |         |            |             |             |         
|OPERATING ACTIVITIES:                            |                                                                               |                                          |                                                  |             |         |            |             |             |          |             |            |           
|                                                
|                                                
|                                                
|                                                
|                                                 | Net income                                                                    |                                          | $                                                | 1,282,055   |         |            | $           | 1,046,816   |          |             | $          | 795,280    |         
|                                                
|                                                
|                                                
|                                                
|                                                 | Adjustments to reconcile net income to cash
provided by operating activities: |                                          |                                                  |             |         |            |             |             |          |             |            |            |         
|                                                
|                                                
|                                                
|                                                
|                                                 |                                                                               | Provision for credit losses              |                                                  |             | 28,000  |            |             |             | 225,000  |             |            |            | 150,000  |           
|                                                
|                                                
|                                                
|                                                
|                                                 |                                                                               | Depreciation and amortization            |                                                  |             | 142,305 |            |             |             | 124,433  |             |            |            | 107,762  |           
|                                                
|                                                
|                                                
|                                                
|                                                 |                                                                               | Net accretion of securities discounts    |                                                  |             | (63,365 | )          |             |             | (43,174  | )           |            |            | (137,154 | )         
|                                                
|                                                
|                                                
|                                                
|                                                 |                                                                               | (Increase) decrease in other assets      |                                                  |             | 351,298 |            |             |             | (711,894 | )           |            |            | (265,005 | )         
|                                                
|                                                
|                                                
|                                                
|                                                 |                                                                               | Increase (decrease) in other liabilities |                                                  |             | 284,106 |            |             |             | 308,252  |             |            |            | 393,416  |           
|                                                 |                                                                               |                                          |                                                  |             |         |            |             |             |          |             |            |           
|                                                 |                                                                               |                                          | Net cash provided (used) by operating activities |             |         | 2,024,399  |             |             |          | 949,433     |            |            |          | 1,044,299  |  
|                                                 |                                                                               |                                          |                                                  |             |         |            |             |             |          |             |            |           
|INVESTING ACTIVITIES:                            |                                                                               |                                          |                                                  |             |         |            |             |             |          |             |            |           
|                                                
|                                                
|                                                
|                                                
|                                                 | Maturities of securities                                                      |                                          |                                                  | 9,000,000   |         |            |             | 4,100,000   |          |             |            | 500,000    |         
|                                                
|                                                
|                                                
|                                                
|                                                 | Principal repayments on securities                                            |                                          |                                                  | 49,739      |         |            |             | 39,806      |          |             |            | 138,980    |         
|                                                
|                                                
|                                                
|                                                
|                                                 | Purchases of securities                                                       |                                          |                                                  | (11,000,000 | )       |            |             | (14,324,500 | )        |             |            |           |         
|                                                
|                                                
|                                                
|                                                
|                                                 | Net (increase) decrease in loans receivable                                   |                                          |                                                  | (719,927    | )       |            |             | (8,490,949  | )        |             |            | 2,672,105  |         
|                                                
|                                                
|                                                
|                                                
|                                                 | Acquisitions of premises and equipment                                        |                                          |                                                  | (160,225    | )       |            |             | (391,735    | )        |             |            | (229,825   | )       
|                                                
|                                                
|                                                
|                                                
|                                                 | Proceeds from sale of foreclosed real estate                                  |                                          |                                                  |            |         |            |             |            |          |             |            | 132,615    |         
|                                                
|                                                
|                                                
|                                                
|                                                 | Proceeds from sales of premises and equipment                                 |                                          |                                                  | 890,845     |         |            |             |            |          |             |            |           |         
|                                                 |                                                                               |                                          |                                                  |             |         |            |             |             |          |             |            |           
|                                                 |                                                                               |                                          | Net cash provided (used) by investing activities |             |         | (1,939,568 | )           |             |          | (19,067,378 | )          |            |          | 3,213,875  |  
|                                                 |                                                                               |                                          |                                                  |             |         |            |             |             |          |             |            |           
|FINANCING ACTIVITIES:                            |                                                                               |                                          |                                                  |             |         |            |             |             |          |             |            |           
|                                                
|                                                
|                                                
|                                                
|                                                 | Cash paid in lieu of fractional shares                                        |                                          |                                                  |            |         |            |             |            |          |             |            | (4,556     | )       
|                                                
|                                                
|                                                
|                                                
|                                                 | Amortization of deferred stock compensation                                   |                                          |                                                  | 71,575      |         |            |             |            |          |             |            |           |         
|                                                
|                                                
|                                                
|                                                
|                                                 | Net increase (decrease) in non-interest
bearing deposits                      |                                          |                                                  | 557,087     |         |            |             | 2,302,638   |          |             |            | 1,283,325  |         
|                                                
|                                                
|                                                
|                                                
|                                                 | Net increase (decrease) in interest
bearing deposits                          |                                          |                                                  | (3,252,651  | )       |            |             | (5,099,556  | )        |             |            | (4,212,170 | )       
|                                                
|                                                
|                                                
|                                                
|                                                 | Net increase (decrease) in borrowed funds                                     |                                          |                                                  | 115,578     |         |            |             | (303,160    | )        |             |            | 136,242    |         
|                                                 |                                                                               |                                          |                                                  |             |         |            |             |             |          |             |            |           
|                                                 |                                                                               |                                          | Net cash provided (used) by financing activities |             |         | (2,508,411 | )           |             |          | (3,100,078  | )          |            |          | (2,797,159 | )
|                                                 |                                                                               |                                          |                                                  |             |         |            |             |             |          |             |            |           
|Increase (decrease) in cash and cash equivalents |                                                                               |                                          | (2,423,580                                       | )           |         |            | (21,218,023 | )           |          |             | 1,461,015  |           
|                                                
|                                                
|                                                
|                                                
|Cash and cash equivalents at January 1           |                                                                               |                                          | 39,271,870                                       |             |         |            | 40,505,416  |             |          |             | 40,448,304 |           
|                                                 |                                                                               |                                          |                                                  |             |         |            |             |             |          |             |            |           
|Cash and cash equivalents at September 30        |                                                                               | $                                        | 36,848,290                                       |             |         | $          | 19,287,393  |             |          | $           | 41,909,319 |           
|                                                 |                                                                               |                                          |                                                  |             |         |            |             |             |          |             |            |           

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##### Table of Contents






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:

|                                      |  |                    |            |        |  |   |            | 
|------------------------------------- |  | ------------------ | ---------- | ------ |  | - | ---------- | 
|                                      |  | SEPTEMBER 30, 2001
|                                      |  |                   
|                                      |  | BOOK               |            | MARKET
|                                      |  | VALUE              |            | VALUE 
|                                      |  |                    |            |       
|U.S. Government and agency securities |  | $                  | 22,424,051 |        |  | $ | 23,363,855 | 
|                                     
|                                     
|                                     
|                                     
|Other securities                      |  |                    | 1,950,000  |        |  |   | 1,950,000  | 
|                                      |  |                    |            |        |  |   |            | 
|                                      |  | $                  | 24,374,051 |        |  | $ | 25,313,855 | 
|                                      |  |                    |            |        |  |   |            | 

|                                      |  |                   |            |        |  |   |            | 
|------------------------------------- |  | ----------------- | ---------- | ------ |  | - | ---------- | 
|                                      |  | DECEMBER 31, 2000
|                                      |  |                  
|                                      |  | BOOK              |            | MARKET
|                                      |  | VALUE             |            | VALUE 
|                                      |  |                   |            |       
|U.S. Government and agency securities |  | $                 | 20,410,425 |        |  | $ | 20,977,262 | 
|                                     
|                                     
|                                     
|                                     
|Other securities                      |  |                   | 1,950,000  |        |  |   | 1,950,000  | 
|                                      |  |                   |            |        |  |   |            | 
|                                      |  | $                 | 22,360,425 |        |  | $ | 22,927,262 | 
|                                      |  |                   |            |        |  |   |            | 

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##### Table of Contents



BRUNSWICK BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3
NET LOANS RECEIVABLE

The composition of net loans receivable is as follows:

|                  |                             |   |              |           |             |   |            |         | 
|----------------- | --------------------------- | - | ------------ | --------- | ----------- | - | ---------- | ------- | 
|                  |                             |   | SEPTEMBER 30 |           | DECEMBER 31
|                  |                             |   | 2001         |           | 2000       
|                  |                             |   |              |           |            
|Commercial loans  |                             | $ | 23,399,864   |           |             | $ | 18,484,085 |        
|                 
|                 
|                 
|                 
|Real estate loans |                             |   | 30,721,735   |           |             |   | 34,456,047 |        
|                 
|                 
|                 
|                 
|Consumer loans    |                             |   | 757,041      |           |             |   | 1,016,786  |        
|                  |                             |   |              |           |             |   |            |        
|                  |                             |   | 54,878,640   |           |             |   | 53,956,918 |        
|                 
|                 
|                 
|                 
|Less:             |                             |   |              |           |             |   |            |        
|                 
|                 
|                 
|                 
|                  | Allowance for credit losses |   |              | 1,082,053 |             |   |            | 800,050 | 
|                 
|                 
|                 
|                 
|                  | Unearned income             |   |              | 80,429    |             |   |            | 132,637 | 
|                  |                             |   |              |           |             |   |            |        
|                  |                             | $ | 53,716,158   |           |             | $ | 53,024,231 |        
|                  |                             |   |              |           |             |   |            |        

NOTE 4
PREMISES AND EQUIPMENT

The major components of premises and equipment are as follows:

|                                               |  |              |           |             |  |   |           | 
|---------------------------------------------- |  | ------------ | --------- | ----------- |  | - | --------- | 
|                                               |  | SEPTEMBER 30 |           | DECEMBER 31
|                                               |  | 2001         |           | 2000       
|                                               |  |              |           |            
|Land                                           |  | $            | 516,927   |             |  | $ | 828,372   | 
|                                              
|                                              
|                                              
|                                              
|Bank premises                                  |  |              | 745,958   |             |  |   | 1,305,517 | 
|                                              
|                                              
|                                              
|                                              
|Leasehold improvements                         |  |              | 183,024   |             |  |   | 70,137    | 
|                                              
|                                              
|                                              
|                                              
|Furniture and equipment                        |  |              | 1,178,535 |             |  |   | 1,247,390 | 
|                                               |  |              |           |             |  |   |           | 
|                                               |  |              | 2,624,444 |             |  |   | 3,451,416 | 
|                                              
|                                              
|                                              
|                                              
|Less accumulated depreciation
and amortization |  |              | 1,327,598 |             |  |   | 1,281,645 | 
|                                               |  |              |           |             |  |   |           | 
|                                               |  | $            | 1,296,846 |             |  | $ | 2,169,771 | 
|                                               |  |              |           |             |  |   |           | 

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##### Table of Contents






BRUNSWICK BANCORP AND SUBSIDIARIES
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
SEPTEMBER 30, 2001

There were no significant changes in the
Corporation's Balance Sheet since December 31, 2000.

Federal funds sold decreased by $2,900,000. This decrease, for the
most part, was the result of a net increase of $2,000,000 in
investment securities.

Premises and equipment decreased by $873,000 primarily because of
the sale of bank premises located in North Brunswick, New Jersey.
This branch location is presently under lease by the Corporation from
the buyer of the property.

The allowance for credit losses increased by approximately
$282,000, which was mostly due to net recoveries totaling $254,000.
At September 30, 2001 the allowance for credit losses totaled
$1,082,053 which represented 56% of loans past due 90 days or more
and nonaccrual loans.

The results of operations for the first three quarters of 2001,
compared to the same period of 2000, show an increase in income
before taxes of approximately $220,000. The favorable components of
this increase are a $434,000 increase in net interest income and a
$197,000 decrease in the provision for credit losses. On the negative
side, non-interest income decreased by $138,000 and non-interest
expenses increased by $273,000.

Basically there are two main reasons for the decrease in
non-interest income. During 2000 a $57,000 gain was realized from the
sale of real estate acquired through foreclosure, and during 2001
merchant charge card income decreased by $113,000. The increase in
non-interest expenses was mainly the result of increased personnel
expenses, building rent and building repairs.

The increase in net interest income is analyzed in detail on
page 9.

The corporation continues to be Well Capitalized which
is the highest classification a bank can receive. At
September 30, 2001 our total risk-based capital ratio was 42.3%
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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##### Table of Contents



BRUNSWICK BANCORP AND SUBSIDIARIES
ANALYSIS OF CHANGES IN NET INTEREST INCOME

|                                     |                             |                        |   |                                       |     |       |   |       |      |   |   |      |      |  
|------------------------------------ | --------------------------- | ---------------------- | - | ------------------------------------- | --- | ----- | - | ----- | ---- | - | - | ---- | ---- | -
|                                     |                             |                        |   | Increase (Decrease) Due to Changes in
|                                     |                             |                        |   |                                      
|                                     |                             |                        |   | Volume                                |     | Rates |   | Total
|                                     |                             |                        |   |                                       |     |       |   |      
|Nine Months Ended September 30, 2001 |                             |                        |   |                                       |     |       |   |       |      |   |   |     
|Versus                               |                             |                        |   |                                       |     |       |   |       |      |   |   |     
|Nine Months Ended September 30, 2000 |                             |                        |   |                                       |     |       |   |       |      |   |   |     
|                                     |                             |                        |   |                                       |     |       |   |       |      |   |   |     
|Interest income on:                  |                             |                        |   |                                       |     |       |   |       |      |   |   |     
|                                    
|                                    
|                                    
|                                    
|                                     | Loans receivable            |                        | $ | 482                                   |     |       | $ | (41   | )    |   | $ | 441  |     
|                                    
|                                    
|                                    
|                                    
|                                     | Securities held to maturity |                        |   | 68                                    |     |       |   | 266   |      |   |   | 334  |     
|                                    
|                                    
|                                    
|                                    
|                                     | Federal funds sold          |                        |   | (265                                  | )   |       |   | (354  | )    |   |   | (619 | )   
|                                     |                             |                        |   |                                       |     |       |   |       |      |   |   |     
|                                     |                             | Total interest income  |   |                                       | 285 |       |   |       | (129 | ) |   |      | 156  |  
|                                     |                             |                        |   |                                       |     |       |   |       |      |   |   |     
|Interest expense on:                 |                             |                        |   |                                       |     |       |   |       |      |   |   |     
|                                    
|                                    
|                                    
|                                    
|                                     | Deposits                    |                        |   | (59                                   | )   |       |   | (214  | )    |   |   | (273 | )   
|                                    
|                                    
|                                    
|                                    
|                                     | Borrowed funds              |                        |   | (3                                    | )   |       |   | (2    | )    |   |   | (5   | )   
|                                     |                             |                        |   |                                       |     |       |   |       |      |   |   |     
|                                     |                             | Total interest expense |   |                                       | (62 | )     |   |       | (216 | ) |   |      | (278 | )
|                                     |                             |                        |   |                                       |     |       |   |       |      |   |   |     
|                                     |                             | Net interest income    |   | $                                     | 347 |       |   | $     | 87   |   |   | $    | 434  |  
|                                     |                             |                        |   |                                       |     |       |   |       |      |   |   |     

|                                 |                             |                        |   |      |     |   |   |      |      |   |   |      |      |  
|-------------------------------- | --------------------------- | ---------------------- | - | ---- | --- | - | - | ---- | ---- | - | - | ---- | ---- | -
|Quarter Ended September 30, 2001 |                             |                        |   |      |     |   |   |      |      |   |   |     
|Versus                           |                             |                        |   |      |     |   |   |      |      |   |   |     
|Quarter Ended September 30, 2000 |                             |                        |   |      |     |   |   |      |      |   |   |     
|                                 |                             |                        |   |      |     |   |   |      |      |   |   |     
|Interest income on:              |                             |                        |   |      |     |   |   |      |      |   |   |     
|                                
|                                
|                                
|                                
|                                 | Loans receivable            |                        | $ | 128  |     |   | $ | (93  | )    |   | $ | 35   |     
|                                
|                                
|                                
|                                
|                                 | Securities held to maturity |                        |   | (117 | )   |   |   | 84   |      |   |   | (33  | )   
|                                
|                                
|                                
|                                
|                                 | Federal funds sold          |                        |   | 31   |     |   |   | (168 | )    |   |   | (137 | )   
|                                 |                             |                        |   |      |     |   |   |      |      |   |   |     
|                                 |                             | Total interest income  |   |      | 42  |   |   |      | (177 | ) |   |      | (135 | )
|                                 |                             |                        |   |      |     |   |   |      |      |   |   |     
|Interest expense on:             |                             |                        |   |      |     |   |   |      |      |   |   |     
|                                
|                                
|                                
|                                
|                                 | Deposits                    |                        |   | (31  | )   |   |   | (131 | )    |   |   | (162 | )   
|                                
|                                
|                                
|                                
|                                 | Borrowed funds              |                        |   | (1   | )   |   |   | (1   | )    |   |   | (2   | )   
|                                 |                             |                        |   |      |     |   |   |      |      |   |   |     
|                                 |                             | Total interest expense |   |      | (32 | ) |   |      | (132 | ) |   |      | (164 | )
|                                 |                             |                        |   |      |     |   |   |      |      |   |   |     
|                                 |                             | Net interest income    |   | $    | 74  |   |   | $    | (45  | ) |   | $    | 29   |  
|                                 |                             |                        |   |      |     |   |   |      |      |   |   |     

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##### Table of Contents






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 September 30, 2001.

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##### Table of Contents






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

|             |  |                                          
|------------ |  | -----------------------------------------
|10/25/01Date |  | Roman T. GuminaRoman T. Gumina, President
|            
|10/25/01Date |  | Thomas FornaleThomas Fornale, Treasurer  

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