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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported) October 22, 1996
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COMMISSION FILE NO.: 0-26744
PATRIOT BANK CORP.
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(Exact name of registrant as specified in its charter)
Delaware 23-2820537
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(State or other Jurisdiction of Incorporation (IRS Employer or
organization) Identification No.)
High and Hanover Streets, Pottstown, Pennsylvania 19464
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 610-323-1500
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Item 5. Other Events
On October 17, 1996, Patriot Bank Corp. (the "Company") issued a press
release regarding the Company's third quarter earnings. Attached is a copy of
the press release.
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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 hereunto duly authorized.
By: /s/ Joseph W. Mayor
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President and Chief Operating Officer
Dated: October 22, 1996
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LIST OF EXHIBITS
Exhibit 99. Press Release
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DATE: October 17, 1996
FOR IMMEDIATE RELEASE
CONTACT: Joseph W. Major (610) 970-4650
Richard A. Elko (610) 970-4627
Patriot Bank Corp. Third Quarter
Core Income Up 117%
Pottstown, PA...Patriot Bank Corp. (NASDAQ - NMS - PBIX), parent company of
Patriot Bank, today announced that third quarter core income for 1996 increased
117% to $743,000 or $.21 per share from $343,000 in 1995. The return on average
assets and return on average equity (both based upon core earnings) were .63%
and 5.63%, respectively for the third quarter of 1996 compared to .52% and
7.01%, respectively for the third quarter of 1995. Year to date core earnings
were up 105% to $2,003,000 or $.57 per share.
For the third quarter of 1996 Patriot recorded a special after-tax charge
of $836,000 ($1,338,000 before-tax) representing the special deposit insurance
assessment levied against SAIF member financial institutions by the FDIC to
recapitalize its SAIF Fund. This special charge resulted in a third quarter net
loss of $93,000 and year to date net income of $1,167,000. "It is unfortunate
that strong institutions like Patriot are required to recapitalize the SAIF
Fund; however, we are glad to see the issue has finally been addressed," said
Joseph W. Major, President and C.O.O. The disparity between what banks and
thrifts pay for the same deposit insurance has been reduced significantly as a
result of the recapitalization of the SAIF. Deposit insurance will be reduced
from $.23 per $100 of deposits to $.064 per $100 of deposits. "Based upon our
current level of deposits and the assessment rate for well capitalized
institutions such as Patriot, we estimate that Patriot should save over $360,000
per year in deposit insurance costs and will recoup the special assessment in
less than four years," continued Major. "Excluding the special charge, Patriot's
third quarter financial results continue to be very strong and we continue to
make significant progress in implementing our strategic plan," said Major.
This plan is based upon the development of a sales culture in which highly
motivated and trained team members attract and retain profitable customer
relationships. The financial cornerstones of Patriot's strategic plan include:
- generation of large volumes of high quality interest-earning assets
- generation of low cost deposits and other sources of funds
- maintenance of low interest rate risk
- maintenance of low operating costs
- focus on recurring fee income
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Net interest income for the third quarter of 1996 was $3,230,000 compared
to $1,833,000 for 1995, an increase of 76.2%. The net interest margin for the
third quarter of 1996 was 2.82% compared to 3.28% for 1995. "The increase in net
interest income and the decrease in the net interest margin reflects loan growth
and the leveraging of Patriot's balance sheet with mortgage-backed securities
and borrowings," said Major. "While we are growing the size of your company, we
have worked to limit Patriot's exposure to interest rate risk and credit risk,"
said Major.
Third quarter earnings for 1996 included a provision for possible loan
losses of $90,000 compared to $15,000 in 1995. The increased level of the
provision is consistent of Patriot's loan growth and re-entry into commercial
lending. During the third quarter of 1996 Patriot closed $40,461,000 of loans
compared to $30,145,000 of loans closed in the third quarter of 1995. The
originations in the third quarter of 1996 included $5,614,000 of commercial
loans. "Our experienced commercial lending team is concentrating on commercial
loans which are generally secured by real estate and which have balances of
$500,000 and less," said Major. "Patriot continues to experience very high asset
quality as demonstrated by a percentage of non-performing assets to total assets
of .15% and its percentage of all loans delinquent 30 days or more to total
loans of .76%," continued Major.
Non-interest income for the third quarter of 1996 was $128,000 compared to
$144,000 in 1995. Non-interest expense (excluding the special charge) was
$2,043,000 for the third quarter of 1996 compared to $1,397,000 for 1995.
Patriot's overhead ratio (non-interest expense as a percentage of average
assets) for the third quarter of 1996 improved to 1.75% from 2.40% for the third
quarter of 1995. "The improvement in the overhead ratio is a reflection of
Patriot's effort to grow while controlling costs," said Major, " Our conversion
to a new state-of-the-art information processing system is on schedule and
should be completed by year end. This conversion should enable Patriot to offer
a more complete range of products and delivery systems to meet the various needs
of both retail and small business customers, save time and money, and produce
numerous efficiencies," continued Major.
Total deposits at September 30, 1996 were $219,852,000 compared to
$201,618,000 at December 31, 1995. During the third quarter of 1996 Patriot
opened supermarket offices in Whitehall and Bethlehem, Pennsylvania. Patriot
plans to open an additional supermarket branch in 1996 and several more in 1997.
Also today, Patriot opened a traditional community banking office in
Phoenixville, Pennsylvania.
"Our strategic plan calls for low cost deposit gathering. We believe that
supermarket offices offer a way of attracting profitable customer relationships
at low cost. Our new Phoenixville office was recently operated by a large
regional bank. We were able to lease this fully equipped office at a very
reasonable cost and reopen it after being closed for less than three months. We
have adopted an aggressive marketing plan aimed at attracting many of that
office's previous customers to Patriot Bank," said Major.
Patriot also recently introduced a check card and a credit card and
completed the buy-back of 188,000 shares of its common stock.
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"I am extremely excited with the results our team has achieved to date. I
am confident that the hard work and dedication of Patriot's team will continue
to produce positive results," said Gary N. Gieringer, Patriot's Chairman and
Chief Executive Officer.
At September 30, 1996 Patriot had total assets of $489,558,000 with ten
community banking offices in Montgomery, Berks, Lehigh and Chester counties. The
closing price of Patriot's common stock was $15 5/32 on October 16, 1996.
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<TABLE>
<CAPTION>
PATRIOT BANK CORP.
CONDENSED FINANCIAL INFORMATION
In Thousands Except Per Share Information
(Unaudited)
1996 1995 1996 1995
YTD YTD 3rd Qtr 3rd Qtr
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<S> <C> <C> <C> <C>
Interest Income $20,492 $12,356 $8,424 $4,308
Interest Expense 11,648 6,887 5,194 2,475
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Net Interest Income 8,844 5,469 3,230 1,833
Provision for Possible Loan Loss 205 45 90 15
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Net Interest Income after
Provision for Possible Loan Loss 8,639 5,424 3,140 1,818
Non-Interest Income 380 384 128 144
Non-Interest Expense 7,053 4,229 3,381 1,397
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Pre-Tax Income 1,966 1,579 (113) 565
Taxes 799 603 (20) 222
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Net Income $ 1,167 $ 976 ($ 93) $ 343
========== ========== ========= ==========
</TABLE>
<TABLE>
<CAPTION>
Sept. 30, Dec. 31,
1996 1995
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<S> <C> <C>
Cash & Interest Bearing Deposits $ 4,072 $ 18,556
Investments & MBS 211,459 51,563
Loans 262,779 192,548
Other Assets 11,248 6,202
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Total Assets $ 489,558 $ 268,869
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Deposits $ 219,852 $ 201,618
Borrowings 213,500 10,000
Other Liabilities 4,805 3,141
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Total Liabilities 438,157 214,759
Stockholders' Equity 51,401 54,110
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Total Liabilities & Stockholders'
Equity $ 489,558 $ 268,869
============ =============
</TABLE>
Key Statistics:
Book Value Per Share $15.53*
Stockholders' Equity to Assets 10.50%
*Total stockholders' equity divided by shares issued less unallocated ESOP
shares, treasury shares and MRP shares.
