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):
July 11, 1996
MARK TWAIN BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
MISSOURI
(State or other jurisdiction of incorporation)
0-4543
----------------------
Commission file Number
43-0895344
----------------------------------
IRS Employer Identification Number
8820 Ladue Road, St. Louis, Missouri 63124
----------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(314) 727-1000
----------------------------------------------------
(Registrant's telephone number, including area code)
<PAGE>
ITEM 5. OTHER EVENTS
- --------------------
The earning release dated July 11, 1996 announcing earnings for
the second quarter and year ending June 30, 1996 is contained in
Exhibit 99 and is incorporated by reference herein.
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 thereunto duly authorized.
MARK TWAIN BANCSHARES, INC.
(Registrant)
Date: July 11, 1996 /s/ KEVIN J. CODY
-------------------------------
Kevin J. Cody
Vice President, Treasurer/
Assistant Secretary
(Principal Accounting Officer)
EXHIBIT INDEX
99. Earnings release for the second quarter and year
ending June 30, 1996.
EXHIBIT 99
CONTACT: Keith Miller
(314) 889-0799
FOR IMMEDIATE RELEASE
MARK TWAIN'S SECOND QUARTER EARNINGS INCREASE 11.7% TO
SET 21st CONSECUTIVE QUARTERLY RECORD
St. Louis, MO., July 11, 1996 . . . Mark Twain Bancshares, Inc., today announced
a 11.7% increase in second quarter 1996 earnings over second quarter 1995.
Income from the period was $13.0 million, and set a 21st consecutive quarterly
record for the 32-year-old company.
Primary earnings per share for the second quarter grew 11.1% to $.80, up from
$.72 in the second quarter 1995. Fully diluted earnings per share increased
12.9% to $.79 for the same period, compared to $.70 for the second quarter 1995.
Return on average assets was 1.78% in the second quarter 1996, compared to 1.68%
in the second quarter last year and 1.71% in the first quarter 1996. Return on
average realized common shareholders' equity was 18.77% for the second quarter
compared to 18.35% for the second quarter 1995 and 18.10% for first quarter
1996.
For the first six months of 1996, Mark Twain's earnings totaled $25.5 million,
an increase of 10.9% from $23.0 million earned for the same period in 1995.
Primary earnings per common share for the first six months of 1996 were $1.55,
up 9.2% compared to $1.42 for the same period in 1995. Fully diluted earnings
per share totaled $1.54 for the first six months of 1996, an 11.6% increase over
1995 results of $1.38 per share.
Return on average assets for the first six months was 1.74%, compared to 1.70%
for the same period last year. Return on average realized shareholders' equity
was 18.43%, compared to 18.43% a year ago.
"Results from our first six months indicate that we are on track for another
record year for Mark Twain," said John P. Dubinsky, Mark Twain Bancshares
President and Chief Executive Officer. "All measures relating to strength and
profitability at Mark Twain are in excellent condition. Earnings continue to
increase and asset quality remains strong."
Mark Twain's assets totaled $2.901 billion at June 30, 1996, an increase of 5.3%
from the end of second quarter of last year. Loans totaled $2.016 billion at
the end of second quarter 1996, an increase of 4.3% from a year ago.
Net interest income, on a fully tax equivalent basis, was $31.60 million for the
second quarter 1996, compared to $32.46 million for the second quarter 1995.
For the first six months of 1996, net interest income was $63.26 million
compared to $64.82 million for the same period in 1995. Net interest margin was
4.62% for the second quarter 1996, compared to 4.62% for the first quarter 1996
and 5.08% for the second quarter 1995. For the first six months of 1996, net
interest margin was 4.62% compared to 5.16% for the first six months of 1995.
-more-
<PAGE> 2
Mark Twain Earnings - Add One
Mark Twain's asset quality remained strong in the second quarter of 1996, with
non-performing assets representing .65% of total loans plus foreclosed real
estate at June 30. Net charge-offs for the first six months of 1996 were .04%
of average loans (annualized rate of .08%) down from .08% (.17% annualized rate)
for the first six months of 1995 and .18% for all of 1995.
The Company's fee-based divisions showed a 2.3% increase in second quarter 1996
revenues over the same period last year. Year-to-date, fee-based divisions'
revenues increased 14.7% over the first six months of 1995.
Mark Twain's efficiency ratio for second quarter 1996 was 48.55%, compared to
50.72% for first quarter 1996 and 52.53% for second quarter 1995, emphasizing
the Company's continued focus on operating efficiency.
Dubinsky attributed Mark Twain's results to the company's continuing successful
implementation of key principles, which include maintaining high quality assets,
minimizing increases in overhead expenses, maximizing opportunities for growth,
and aggressively soliciting new business.
As part of this ongoing commitment to growth, Mark Twain Bancshares, Inc.
announced in May that it has reached an agreement with Northland Bancshares,
Inc., owner of First National Bank of Platte County, in Kansas City, Missouri,
for the merger of Northland Bancshares, Inc. into a Mark Twain subsidiary. The
transaction is expected to occur in the fourth quarter of this year, pending
satisfaction of regulatory approvals and other customary conditions.
"This merger enables Mark Twain to expand its services in northern Kansas City,"
Dubinsky said. "We will continue to focus on surpassing the $1 billion in
assets mark in Kansas City."
Mark Twain Bancshares, Inc. is a 32-year-old bank holding company with 35
banking locations in three states: 20 throughout St. Louis County and St.
Charles County, as well as five in Kansas City, MO; six in Johnson County, KS;
and four in Belleville and Edwardsville, IL. Related financial services
include: Mark Twain Capital Markets Group; Mark Twain Brokerage Services, Inc.;
Mark Twain Commercial Finance Division; Mark Twain International Division; Mark
Twain Leasing Division; and Mark Twain Trust Division. Mark Twain stock is
traded on the NASDAQ Stock Market under the symbol MTWN. Mark Twain Banks'
World Wide Web address is at "http://www.marktwain.com".
###
<PAGE> 3
MARK TWAIN BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
June 30, December 31,
-------------------------
(in thousands of dollars) 1996 1995 1995
- ------------------------------------------------------------------------------------ ------------ ------------
<S> <C> <C> <C>
ASSETS
Cash and due from banks $ 129,380 $ 122,345 $ 156,207
Federal funds sold and securities
purchased under resale agreements 6,020 12,050 7,900
Held to maturity securities 234,962 333,511 244,094
Available for sale securities 432,088 233,155 445,808
Trading securities 23,229 29,988 63,579
Loans, net of allowance for loan losses of
$31,198, $29,961 and $30,508, respectively 1,984,979 1,903,179 1,941,431
Premises and equipment 20,416 21,982 20,764
Accrued income receivable 18,482 17,940 17,830
Other assets 51,288 79,389 70,618
- ---------------------------------------------------------------------------------- ---------- ----------
Total assets $2,900,844 $2,753,539 $2,968,231
- ------------------------------------------------------------------------========== ========== ==========
LIABILITIES
Non-interest bearing deposits $ 441,976 $ 425,575 $ 519,155
Interest bearing deposits 1,919,925 1,892,080 1,938,237
- ---------------------------------------------------------------------------------- ---------- ----------
Total deposits 2,361,901 2,317,655 2,457,392
- ---------------------------------------------------------------------------------- ---------- ----------
Short-term borrowings 231,469 102,635 165,731
Other liabilities 31,202 57,545 50,712
Long-term debt 3,375 19,876 18,490
- ---------------------------------------------------------------------------------- ---------- ----------
Total liabilities 2,627,947 2,497,711 2,692,325
- ---------------------------------------------------------------------------------- ---------- ----------
SHAREHOLDERS' EQUITY
Common stock, $1.25 par value, authorized
30,000,000 shares, issued 16,508,220
16,421,009 and 16,508,220 shares, respectively 20,635 20,526 20,635
Surplus 63,248 61,837 63,630
Undivided profits 210,346 178,846 194,888
Net unrealized gains (losses) on available
for sale securities (6,052) (1,098) 1,026
- ---------------------------------------------------------------------------------- ---------- ----------
288,177 260,111 280,179
Less common treasury stock at cost, 502,579
400,343, and 362,685 shares, respectively 15,280 4,283 4,273
- ---------------------------------------------------------------------------------- ---------- ----------
Total shareholders' equity 272,897 255,828 275,906
- ---------------------------------------------------------------------------------- ---------- ----------
Total liabilities and shareholder's equity $2,900,844 $2,753,539 $2,968,231
- ------------------------------------------------------------------------========== ========== ==========
</TABLE>
<PAGE> 4
MARK TWAIN BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
<TABLE>
<CAPTION>
For the Six Months For the Three Months
Ended June 30, Ended June 30,
(in thousands of dollars except per share data) 1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------ ---------------------
<S> <C> <C> <C> <C>
INTEREST FROM EARNING ASSETS
Interest and fees on loans $ 89,223 $ 89,226 $44,448 $45,773
Interest on held to maturity securities:
Taxable 7,861 11,491 3,871 5,666
Non-taxable 68 109 34 34
Interest on available for sale securities 14,040 7,409 6,957 3,674
Interest on trading securities 1,857 1,435 663 819
Interest on federal funds sold and securities
purchased under resale agreements 229 299 191 204
- ------------------------------------------------------------------------------------------------ --------------------
Total interest income 113,278 109,969 56,164 56,170
- ------------------------------------------------------------------------------------------------ --------------------
INTEREST EXPENSE
Interest on deposits 44,001 39,684 21,669 20,957
Interest on short-term borrowings 6,276 5,314 3,115 2,676
Interest on long-term debt 274 784 62 390
- ------------------------------------------------------------------------------------------------ --------------------
Total interest expense 50,551 45,782 24,846 24,023
- ------------------------------------------------------------------------------------------------ --------------------
Net interest income 62,727 64,187 31,318 32,147
Provision for loan losses 1,495 2,631 514 1,299
- ------------------------------------------------------------------------------------------------ --------------------
Net interest income after provision for loan losses 61,232 61,556 30,804 30,848
- ------------------------------------------------------------------------------------------------ --------------------
OTHER INCOME
Service charges on deposit accounts 4,005 3,417 2,063 1,720
Securities transactions 234 46 - -
Other income 15,232 14,842 7,441 7,621
- ------------------------------------------------------------------------------------------------ --------------------
Total other income 19,471 18,305 9,504 9,341
- ------------------------------------------------------------------------------------------------ --------------------
OTHER EXPENSES
Salaries 21,359 20,568 10,485 10,331
Employee benefits 3,852 3,633 1,735 1,727
Net occupancy expense 4,459 4,714 2,260 2,256
Furniture and equipment expense 1,750 1,977 877 965
Other expenses 9,527 12,988 4,596 6,676
- ------------------------------------------------------------------------------------------------ --------------------
Total other expenses 40,947 43,880 19,953 21,955
- ------------------------------------------------------------------------------------------------ --------------------
Income before income taxes 39,756 35,981 20,355 18,234
Applicable income taxes 14,250 12,988 7,370 6,609
- ------------------------------------------------------------------------------------------------ --------------------
Net income $ 25,506 $ 22,993 $12,985 $11,625
- ---------------------------------------------------------------------------===================== ====================
NET INCOME PER SHARE
- ------------------------------------------------------------------------------------------------ --------------------
Primary $1.55 $1.42 $0.80 $0.72
- ------------------------------------------------------------------------------================== ====================
Fully diluted $1.54 $1.38 $0.79 $0.70
- ------------------------------------------------------------------------------================== ====================
COMMON DIVIDENDS PAID PER SHARE $0.62 $0.54 $0.31 $0.27
- ------------------------------------------------------------------------------================== ====================
</TABLE>
<PAGE> 5
MARK TWAIN BANCSHARES, INC.
CONSOLIDATED BALANCE SHEET AND NET INTEREST MARGIN
<TABLE>
<CAPTION>
Three Months Ended June 30, 1996 Three Months Ended June 30, 1995
------------------------------------- -------------------------------------
Average Yield/ Average Yield/
(in thousands of dollars) Balance Interest Rate Balance Interest Rate
- ----------------------------------------------------------------------------- -------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Interest earning assets:
Loans <F1><F2> $1,997,351 $44,694 9.00% $1,920,233 $46,045 9.62%
Taxable held to maturity securities 239,981 3,871 6.49% 338,519 5,666 6.71%
Non-taxable held to maturity securities<F1> 2,612 52 8.01% 2,613 53 8.14%
Available for sale securities<F1> 452,612 6,972 6.20% 238,717 3,694 6.21%
Trading securities 42,749 663 6.24% 50,168 819 6.55%
Federal funds sold and securities
purchased under resale agreements 13,129 191 5.85% 13,218 204 6.19%
- ------------------------------------------------------------------------------ ----------------------------------
Total interest earning assets 2,748,434 56,443 8.26% 2,563,468 56,481 8.84%
- ------------------------------------------------------------------------------ ----------------------------------
Cash and due from banks 110,839 107,076
Other assets 110,288 138,240
FASB No. 115 allowance (6,080) (6,519)
Allowance for loan losses (31,233) (29,471)
- ------------------------------------------------------ ----------
Total $2,932,248 $2,772,794
- --------------------------------------------========== ==========
LIABILITIES AND SHAREHOLDER'S EQUITY
Interest bearing demand deposits $ 232,011 1,131 1.96% $ 226,533 1,199 2.12%
Savings and money market deposits 697,829 6,295 3.63% 673,272 6,499 3.87%
Time deposits 1,018,735 14,243 5.62% 958,640 13,259 5.55%
Short-term borrowings 251,327 3,115 4.98% 188,805 2,676 5.68%
Long-term debt 3,689 62 6.76% 19,980 390 7.83%
- ------------------------------------------------------------------------------ ----------------------------------
Total interest bearing liabilities 2,203,591 24,846 4.53% 2,067,230 24,023 4.66%
- ------------------------------------------------------------------------------ ----------------------------------
Non-interest bearing deposits 408,894 392,525
Other liabilities 45,264 62,980
Shareholders' equity 274,499 250,059
- ------------------------------------------------------ ----------
Total $2,932,248 $2,772,794
- --------------------------------------------========== ==========
Net interest income $31,597 $32,458
- ------------------------------------------------------------======= =======
Net interest margin 4.62% 5.08%
- -------------------------------------------------------------------------===== =====
<FN>
<F1>Adjusted to a fully taxable basis using federal statutory rate of 35% in 1996 and 1995.
<F2>Includes non-accrual loans.
</FN>
</TABLE>
<PAGE> 6
MARK TWAIN BANCSHARES, INC.
CONSOLIDATED BALANCE SHEET AND NET INTEREST MARGIN
<TABLE>
<CAPTION>
Six Months Ended June 30, 1996 Six Months Ended June 30, 1995
------------------------------------- -------------------------------------
Average Yield/ Average Yield/
(in thousands of dollars) Balance Interest Rate Balance Interest Rate
- ----------------------------------------------------------------------------- -------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Interest earning assets:
Loans <F1><F2> $1,990,354 $89,685 9.06% $1,893,702 $ 89,760 9.56%
Taxable held to maturity securities 242,891 7,861 6.51% 343,366 11,491 6.75%
Non-taxable held to maturity securities<F1> 2,604 104 8.03% 3,949 168 8.58%
Available for sale securities<F1> 451,088 14,070 6.27% 240,615 7,449 6.24%
Trading securities 57,981 1,857 6.44% 43,666 1,435 6.63%
Federal funds sold and securities
purchased under resale agreements 7,744 229 5.95% 9,795 299 6.16%
- ------------------------------------------------------------------------------ ----------------------------------
Total interest earning assets 2,752,662 113,806 8.31% 2,535,093 110,602 8.80%
- ------------------------------------------------------------------------------ ----------------------------------
Cash and due from banks 109,579 106,511
Other assets 111,974 121,351
FASB No. 115 allowance (2,232) (9,784)
Allowance for loan losses (30,940) (29,281)
- ------------------------------------------------------ ----------
Total $2,941,043 $2,723,890
- --------------------------------------------========== ==========
LIABILITIES AND SHAREHOLDER'S EQUITY
Interest bearing demand deposits $ 229,945 2,260 1.98% $ 228,762 2,419 2.13%
Savings and money market deposits 683,214 12,359 3.64% 682,632 12,862 3.80%
Time deposits 1,040,436 29,382 5.68% 922,510 24,403 5.33%
Short-term borrowings 250,572 6,276 5.04% 190,713 5,314 5.62%
Long-term debt 7,929 274 6.95% 20,123 784 7.86%
- ------------------------------------------------------------------------------ ----------------------------------
Total interest bearing liabilities 2,212,096 50,551 4.60% 2,044,740 45,782 4.52%
- ------------------------------------------------------------------------------ ----------------------------------
Non-interest bearing deposits 403,384 388,635
Other liabilities 48,693 45,053
Shareholders' equity 276,870 245,462
- ------------------------------------------------------ ----------
Total $2,941,043 $2,723,890
- --------------------------------------------========== ==========
Net interest income $63,255 $64,820
- ------------------------------------------------------------======= =======
Net interest margin 4.62% 5.16%
- -------------------------------------------------------------------------===== =====
<FN>
<F1>Adjusted to a fully taxable basis using federal statutory rate of 35% in 1996 and 1995.
<F2>Includes non-accrual loans.
</FN>
</TABLE>
<PAGE> 7
MARK TWAIN BANCSHARES, INC.
SUMMARY OF ALLOWANCE FOR LOAN LOSSES
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30, June 30,
--------------------------- -----------------------------
(in thousands of dollars) 1996 1995 1996 1995
- ----------------------------------------------------------------------------------- -----------------------------
<S> <C> <C> <C> <C>
Allowance at beginning of period $30,508 $28,894 $31,198 $29,047
Charge-offs (1,584) (2,047) (835) (774)
Recoveries 779 483 321 389
- ----------------------------------------------------------------------------------- ----------------------------
Net charge-offs (805) (1,564) (514) (385)
- ----------------------------------------------------------------------------------- ----------------------------
Additions to allowance charged to expense 1,495 2,631 514 1,299
- ----------------------------------------------------------------------------------- ----------------------------
Allowance at end of period $31,198 $29,961 $31,198 $29,961
- ----------------------------------------------------------========================= ============================
Loans, net of unearned income at end of period $2,016,177 $1,933,140 $2,106,177 $1,933,140
Average loan balance for the period $1,990,354 $1,893,702 $1,997,351 $1,920,233
Allowance as % of loans at end of period 1.55% 1.55%
Allowance as % of non-performing loans 334.67% 287.23%
Net charge-offs as % of average loans for the period .04% .08% .03% .02%
Annualized net charge-offs as % of average loans
for the period .08% .17% .10% .08%
</TABLE>
<PAGE> 8
MARK TWAIN BANCSHARES, INC.
NON-PERFORMING ASSETS
<TABLE>
<CAPTION>
June 30, March 31, December 31,
(in thousands of dollars) 1996 1996 1995
- -------------------------------------------------------- --------------- --------------
<S> <C> <C> <C>
Non-accrual loans $ 6,531 $ 7,764 $13,663
Restructured loans 2,100 109 109
Foreclosed property 4,436 6,105 6,099
------- ------- -------
Total non-performing assets $13,067 $13,978 $19,871
======= ======= =======
Percentage of non-performing assets
to loans plus foreclosed property 0.65% 0.69% 1.00%
Loans contractually past due ninety
days or more $691 $836 $530
Percentage of non-performing assets
plus ninety days past due to loans
plus foreclosed property 0.68% 0.73% 1.03%
Percentage of allowance to
non-performing loans 334.67% 358.23% 213.31%
Percentage of allowance to total
non-performing assets 238.75% 223.19% 153.53%
Percentage of allowance to
risk elements<F1> 226.76% 210.60% 149.54%
Percentage of risk elements<F1>
to total average assets .47% .50% .74%
<FN>
<F1> Risk elements include total non-performing assets plus loans contractually past due ninety days or more.
</FN>
</TABLE>
<PAGE> 9
MARK TWAIN BANCSHARES, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
For The Six Months Ended For The Three Months Ended
June 30, June 30,
(in thousands of dollars except per share data) 1996 1995 1996 1995
- -------------------------------------------------------------------------------------- ---------------------------
<S> <C> <C> <C> <C>
PRIMARY
Earnings:
Net income $25,506 $22,993 $12,985 $11,625
- -----------------------------------------------------------=========================== ===========================
Shares:
Weighted average number of common shares outstanding 16,126,495 16,038,369 16,046,988 16,018,107
Weighted average number of common share equivalents 276,932 190,063 267,911 219,115
- -------------------------------------------------------------------------------------- ---------------------------
16,403,427 16,228,432 16,314,899 16,237,222
- -----------------------------------------------------------=========================== ===========================
Primary earnings per common share $1.55 $1.42 $0.80 $0.72
- -----------------------------------------------------------=========================== ===========================
ASSUMING FULL DILUTION
Earnings:
Net income $25,506 $22,993 $12,985 $11,625
After tax interest applicable to convertible notes 72 189 40 93
After tax amortization of capital note fees 46 21 7 10
- -------------------------------------------------------------------------------------- ---------------------------
Fully diluted net income $25,624 $23,203 $13,032 $11,728
- -----------------------------------------------------------=========================== ===========================
Shares:
Weighted average number of common shares outstanding 16,126,495 16,038,369 16,046,988 16,018,107
Assuming conversion of Convertible Notes and dilutive
stock options 535,588 779,689 500,101 764,062
- -------------------------------------------------------------------------------------- ---------------------------
16,662,083 16,818,058 16,547,089 16,782,169
- -----------------------------------------------------------=========================== ===========================
Earnings per common share assuming full dilution $1.54 $1.38 $0.79 $.70
- -----------------------------------------------------------=========================== ===========================
</TABLE>
