<PAGE>
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):
April 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 April 11, 1996 announcing earnings for
the first quarter and year ending March 31, 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: April 11, 1996 /s/ KEVIN J. CODY
-------------------------------
Kevin J. Cody
Vice President, Treasurer/
Assistant Secretary
(Principal Accounting Officer)
EXHIBIT INDEX
99. Earnings release for the first quarter and year
ending March 31, 1996.
EXHIBIT 99
CONTACT: Keith Miller
(314) 889-0799
FOR IMMEDIATE RELEASE
MARK TWAIN'S FIRST QUARTER EARNINGS INCREASE 10.1 PERCENT,
SETTING 20TH CONSECUTIVE QUARTERLY RECORD
TOTAL ASSETS TOP $3 BILLION
MARK TWAIN NAMED ONE OF TOP PERFORMING
BANKS IN UNITED STATES FOR 1995
St. Louis, MO., April 11, 1996. . . Mark Twain Bancshares, Inc., today announced
a 10.1 percent increase in first quarter 1996 earnings from first quarter 1995.
Income for the first three months was $12.5 million, and set a 20th consecutive
quarterly record for the 32-year-old company.
Primary earnings per share for the quarter grew 8.6 percent to $.76, up from
$.70 in the first quarter of 1995. Fully diluted earnings per share increased
10.3 percent to $.75 for the same period.
Return on average assets was 1.71 percent in the first quarter 1996, compared
to 1.72 percent in the first quarter of last year and 1.75 percent in the fourth
quarter of 1995. Return of realized common shareholders's equity for the first
quarter was 18.10 percent compared to 18.51 percent and 18.31 percent for the
first and fourth quarters of 1995, respectively.
"Our record level of performance in the first quarter of 1996 gives us reason
for optimism that 1996 will be yet another outstanding year for Mark Twain,"
says John P. Dubinsky, Mark Twain Bancshares President and Chief Executive
Officer. "We continue to be optimistic that we can achieve our continuing
financial goals of a return on assets in excess of 1.60 percent, a return on
realized equity in excess of 18.0 percent, and a solid double digit growth in
fully diluted earnings per share."
Mark Twain's assets grew 11.2 percent in the first quarter of 1996, compared to
a year ago, to total $3.048 billion. Loans totaled $2.017 billion and were 7.4
percent higher than a year ago.
"We have continued to see an increase in loan demand and loan outstandings over
the past two years," Dubinsky said. "Our current level of loan demand is
growing. While competition remains intense, we are pleased with our current
growth rates which we have attained without compromising our risk-adjusted
returns. The economies where we operate in St. Louis and Kansas City are very
healthy and vibrant. It is noteworthy that we have passed the $3
- more -
<PAGE> 2
Mark Twain Earnings -- Add 2
billion mark in total assets."
Net revenues for the first quarter of 1996 were $41.4 million compared to $41.0
million for the same period last year.
Net interest income, on a fully tax equivalent basis was $31.7 million in the
first quarter of 1996, compared to $32.4 million in the first quarter of 1995,
and $32.1 million in the fourth quarter of 1995. Net interest margin was 4.62
percent for the first quarter of 1996, compared to 5.24 percent for the first
quarter of 1995 and 4.85 percent in the fourth quarter of 1995. The decrease
in margin was anticipated to occur in 1996 due to competitive factors, prime
rate declines and increased securities purchases.
Mark Twain's asset quality continued to be strong in the first quarter of 1996,
with non-performing assets representing a record low of .69 percent of total
loans plus foreclosed property, compared to 1.08 percent a year ago and 1.00
percent at year end 1995. Mark Twain continues to experience low net loan
losses. Net charge-offs for the first quarter of 1996 were .06 percent on an
annualized basis compared to .18 percent for all of 1995. The loan loss reserve
represents 1.55 percent of loans, the same level it represented at the end of
the first quarter of 1995 and year-end 1995, and 358.23 percent of non-
performing loans.
Mark Twain's fee based divisions turned in another strong quarter. This
performance was led by the Capital Markets Group, which includes bond and
brokerage operations, showing a 35.0 percent increase in revenues over first
quarter 1995 results.
The Company continued its focus on operating efficiency during the quarter.
Mark Twain's efficiency ratio for the first quarter of 1996 was 50.72 percent,
compared to 53.11 percent for the same period last year.
Mark Twain has been named by U.S. Banker Magazine as the seventh best performing
bank in the United States based on its record 1995 performance. U. S. Banker,
the largest-circulation magazine in banking, ranks the nation's 100 largest
banking companies each year on a variety of performance criteria selected by the
editors and evaluated with the help of New York-based bank investment specialist
Keefe, Bruyette & Woods. The rankings aim to identify the best-balanced banks
in such diverse areas as capital strength, credit quality, return on equity and
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. He indicated that the Company
continues to focus primarily on business banking which is very healthy. The
Company has no credit card outstandings and a small but very healthy consumer
credit portfolio.
- more -
<PAGE> 3
Mark Twain Earnings -- Add 3
During the first quarter of 1996, the Company raised its annualized dividend
rate from $1.08 per share to $1.24. This was the 31st dividend increase since
Mark Twain became a public company in 1969.
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. The Company opened a new unit in
Olathe, Kansas (a high growth Kansas City suburb) in January. 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> 4
MARK TWAIN BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
March 31, December 31,
-------------------------
(in thousands of dollars) 1996 1995 1995
- ------------------------------------------------------------------------------------ ------------ ------------
<S> <C> <C> <C>
ASSETS
Cash and due from banks $ 139,767 $ 108,335 $ 156,207
Federal funds sold and securities
purchased under resale agreements 1,300 16,350 7,900
Held to maturity securities 249,190 346,625 244,094
Available for sale securities 460,011 231,392 445,808
Trading securities 72,552 41,884 63,579
Loans, net of allowance for loan losses of
$31,198, $29,047 and $30,508, respectively 1,985,438 1,848,954 1,941,431
Premises and equipment 20,745 27,072 20,764
Accrued income receivable 19,896 17,371 17,830
Other assets 99,081 103,575 70,618
- ---------------------------------------------------------------------------------- ---------- ----------
Total assets $3,047,980 $2,741,558 $2,968,231
- ------------------------------------------------------------------------========== ========== ==========
LIABILITIES
Non-interest bearing deposits $ 440,853 $ 395,793 $ 519,155
Interest bearing deposits 1,978,463 1,846,372 1,938,237
- ---------------------------------------------------------------------------------- ---------- ----------
Total deposits 2,419,316 2,242,165 2,457,392
- ---------------------------------------------------------------------------------- ---------- ----------
Short-term borrowings 261,376 160,092 165,731
Other liabilities 88,815 73,584 50,712
Long-term debt 3,795 20,044 18,490
- ---------------------------------------------------------------------------------- ---------- ----------
Total liabilities 2,773,302 2,495,885 2,692,325
- ---------------------------------------------------------------------------------- ---------- ----------
SHAREHOLDERS' EQUITY
Common stock, $1.25 par value, authorized
30,000,000 shares, issued 16,508,220
16,410,444 and 16,508,220 shares, respectively 20,635 20,513 20,635
Surplus 64,092 61,555 63,630
Undivided profits 202,344 171,543 194,888
Net unrealized gains (losses) on available
for sale securities (2,167) (5,462) 1,026
- ---------------------------------------------------------------------------------- ---------- ----------
284,904 248,149 280,179
Less common treasury stock at cost, 368,213
346,061, and 362,685 shares, respectively 10,226 2,476 4,273
- ---------------------------------------------------------------------------------- ---------- ----------
Total shareholders' equity 274,678 245,673 275,906
- ---------------------------------------------------------------------------------- ---------- ----------
Total liabilities and shareholder's equity $3,047,980 $2,741,558 $2,968,231
- ------------------------------------------------------------------------========== ========== ==========
</TABLE>
<PAGE> 5
MARK TWAIN BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
(in thousands of dollars except per share data) 1996 1995
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
INTEREST FROM EARNING ASSETS
Interest and fees on loans $44,775 $43,453
Interest on held to maturity securities:
Taxable 3,990 5,825
Non-taxable 34 75
Interest on available for sale securities 7,083 3,735
Interest on trading securities 1,194 616
Interest on federal funds sold and securities
purchased under resale agreements 38 95
- -----------------------------------------------------------------------------------------------------
Total interest income 57,114 53,799
- -----------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest on deposits 22,332 18,727
Interest on short-term borrowings 3,161 2,638
Interest on long-term debt 212 394
- -----------------------------------------------------------------------------------------------------
Total interest expense 25,705 21,759
- -----------------------------------------------------------------------------------------------------
Net interest income 31,409 32,040
Provision for loan losses 981 1,332
- -----------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses 30,428 30,708
- -----------------------------------------------------------------------------------------------------
OTHER INCOME
Service charges on deposit accounts 1,942 1,697
Securities transactions 234 46
Other income 7,791 7,221
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Total other income 9,967 8,964
- -----------------------------------------------------------------------------------------------------
OTHER EXPENSES
Salaries 10,874 10,237
Employee benefits 2,117 1,906
Net occupancy expense 2,199 2,458
Furniture and equipment expense 873 1,012
Other expenses 4,931 6,312
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Total other expenses 20,994 21,925
- -----------------------------------------------------------------------------------------------------
Income before income taxes 19,401 17,747
Applicable income taxes 6,880 6,379
- -----------------------------------------------------------------------------------------------------
Net income $12,521 $11,368
- ---------------------------------------------------------------------------------====================
NET INCOME PER SHARE
- -----------------------------------------------------------------------------------------------------
Primary $0.76 $0.70
- -----------------------------------------------------------------------------------==================
Fully diluted $0.75 $0.68
- -----------------------------------------------------------------------------------==================
COMMON DIVIDENDS PAID PER SHARE $0.31 $0.27
- -----------------------------------------------------------------------------------==================
</TABLE>
<PAGE> 6
MARK TWAIN BANCSHARES, INC.
CONSOLIDATED BALANCE SHEET AND NET INTEREST MARGIN
<TABLE>
<CAPTION>
Three Months Ended March 31, 1996 Three Months Ended March 31, 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> $1,983,358 $44,991 9.12% $1,866,877 $43,715 9.50%
Taxable held to maturity securities 245,801 3,990 6.53% 348,268 5,825 6.78%
Non-taxable held to maturity securities<F1> 2,596 52 8.06% 5,300 115 8.80%
Available for sale securities<F1> 449,564 7,098 6.35% 242,534 3,755 6.28%
Trading securities 73,213 1,194 6.56% 37,092 616 6.74%
Federal funds sold and securities
purchased under resale agreements 2,359 38 6.48% 6,334 95 6.08%
- ----------------------------------------------------------------------------- ----------------------------------
Total interest earning assets 2,756,891 57,363 8.37% 2,506,405 54,121 8.76%
- ----------------------------------------------------------------------------- ----------------------------------
Cash and due from banks 108,319 105,940
Other assets 113,659 104,272
FASB No. 115 allowance 1,615 (13,085)
Allowance for loan losses (30,647) (29,089)
- ------------------------------------------------------ ----------
Total $2,949,837 $2,674,443
- --------------------------------------------========== ==========
LIABILITIES AND SHAREHOLDER'S EQUITY
Interest bearing demand deposits $ 227,880 1,129 1.99% $ 231,016 1,220 2.14%
Savings and money market deposits 668,600 6,064 3.65% 692,095 6,363 3.73%
Time deposits 1,062,137 15,139 5.73% 885,979 11,144 5.10%
Short-term borrowings 249,817 3,161 5.09% 192,642 2,638 5.55%
Long-term debt 12,168 212 7.01% 20,268 394 7.88%
- ------------------------------------------------------------------------------ ----------------------------------
Total interest bearing liabilities 2,220,602 25,705 4.66% 2,022,000 21,759 4.36%
- ------------------------------------------------------------------------------ ----------------------------------
Non-interest bearing deposits 397,873 384,702
Other liabilities 52,121 26,927
Shareholders' equity 279,241 240,814
- ------------------------------------------------------ ----------
Total $2,949,837 $2,674,443
- --------------------------------------------========== ==========
Net interest income $31,658 $32,362
- ------------------------------------------------------------======= =======
Net interest margin 4.62% 5.24%
- -------------------------------------------------------------------------===== =====
<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>
Three Months Ended
March 31,
--------------------------
(in thousands of dollars) 1996 1995
- -----------------------------------------------------------------------------------
<S> <C> <C>
Allowance at beginning of period $30,508 $28,894
Charge-offs (749) (1,273)
Recoveries 458 94
- -----------------------------------------------------------------------------------
Net charge-offs (291) (1,179)
- -----------------------------------------------------------------------------------
Additions to allowance charged to expense 981 1,332
- -----------------------------------------------------------------------------------
Allowance at end of period $31,198 $29,047
- ----------------------------------------------------------=========================
Loans, net of unearned income at end of period $2,016,636 $1,878,001
Average loan balance for the period $1,983,358 $1,866,877
Allowance as % of loans at end of period 1.55% 1.55%
Allowance as % of non-performing loans 358.23% 275.69%
Net charge-offs as % of average loans for the period .01% .06%
Annualized net charge-offs as % of average loans
for the period .06% .25%
</TABLE>
<PAGE> 8
MARK TWAIN BANCSHARES, INC.
NON-PERFORMING ASSETS
<TABLE>
<CAPTION>
March 31, March 31, December 31,
(in thousands of dollars) 1996 1995 1995
- -------------------------------------------------------- --------------- --------------
<S> <C> <C> <C>
Non-accrual loans $ 7,764 $ 9,509 $13,663
Restructured loans 109 484 109
Foreclosed property 6,105 10,478 6,099
------- ------- -------
Total non-performing assets $13,978 $20,471 $19,871
======= ======= =======
Percentage of non-performing assets
to loans plus foreclosed property 0.69% 1.08% 1.00%
Loans contractually past due ninety
days or more $836 $543 $530
Percentage of non-performing assets
plus ninety days past due to loans
plus foreclosed property 0.73% 1.11% 1.03%
Percentage of allowance to
non-performing loans 358.23% 275.69% 213.31%
Percentage of allowance to total
non-performing assets 223.19% 141.89% 153.53%
Percentage of allowance to
risk elements* 210.60% 138.23% 149.54%
Percentage of risk elements*
to total average assets .50% .79% .74%
* Risk elements include total non-performing assets plus loans contractually past due ninety days or more.
</TABLE>
<PAGE> 9
MARK TWAIN BANCSHARES, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
For The Three Months Ended
March 31,
(in thousands of dollars except per share data) 1996 1995
- --------------------------------------------------------------------------------------
<S> <C> <C>
PRIMARY
Earnings:
Net income $12,521 $11,368
- -----------------------------------------------------------===========================
Shares:
Weighted average number of common shares outstanding 16,206,002 16,058,857
Weighted average number of common share equivalents 285,953 161,011
- --------------------------------------------------------------------------------------
16,491,955 16,219,868
- -----------------------------------------------------------===========================
Primary earnings per common share $0.76 $0.70
- -----------------------------------------------------------===========================
ASSUMING FULL DILUTION
Earnings:
Net income $12,521 $11,368
After tax interest applicable to convertible notes 31 96
After tax amortization of capital note fees 39 11
- --------------------------------------------------------------------------------------
Fully diluted net income $12,591 $11,475
- -----------------------------------------------------------===========================
Shares:
Weighted average number of common shares outstanding 16,206,002 16,058,857
Assuming conversion of Convertible Notes and dilutive
stock options 571,247 744,130
- --------------------------------------------------------------------------------------
16,777,249 16,802,987
- -----------------------------------------------------------===========================
Earnings per common share assuming full dilution $0.75 $0.68
- -----------------------------------------------------------===========================
</TABLE>
