<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
(MARK ONE)
X QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1998
___ TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE ACT
FOR THE TRANSITION PERIOD FROM _______________ TO ________________
COMMISSION FILE NO. 333-1546
FNB BANCSHARES, INC.
--------------------
(EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)
<TABLE>
<S> <C>
SOUTH CAROLINA 57-1033165
-------------- ----------
STATE OF INCORPORATION) (I.R.S. EMPLOYER IDENTIFICATION NO.)
</TABLE>
POST OFFICE BOX 1539, GAFFNEY, SOUTH CAROLINA 29342
---------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(864) 488-2265
--------------
(ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE)
NOT APPLICABLE
--------------
(FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR,
IF CHANGED SINCE LAST REPORT)
CHECK WHETHER THE ISSUER: (1) FILED ALL REPORTS REQUIRED TO BE FILED BY
SECTION 13 OR 15(D) OF THE EXCHANGE ACT DURING THE PAST 12 MONTHS (OR FOR SUCH
SHORTER PERIOD THAT THE REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS), AND (2)
HAS BEEN SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS. YES X NO
--- ---
STATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES
OF COMMON EQUITY, AS OF THE LATEST PRACTICABLE DATE:
616,338 SHARES OF COMMON STOCK, PAR VALUE $.01 PER SHARE, WERE ISSUED
AND OUTSTANDING AS OF NOVEMBER 6, 1998.
TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (CHECK ONE): YES NO X
--- ---
<PAGE> 2
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FNB BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1998 DECEMBER 31, 1997
(UNAUDITED) (AUDITED)
----------- ---------
<S> <C> <C>
ASSETS
Cash and Cash Equivalents:
Cash and due from Banks $ 1,408,609 $ 1,007,433
Federal Funds Sold 1,440,000 1,430,000
----------- -----------
2,848,609 2,437,433
Securities held to maturity 1,900,990 1,501,331
Time Deposits with other Banks 500,000 600,000
Loans Receivable 19,168,414 14,168,832
Less Allowance for loan loss (272,864) (152,614)
----------- -----------
Loans, net 18,895,550 14,016,218
Premises and equipment 1,070,612 760,843
Accrued Interest Receivable 139,423 122,499
Other Assets 468,269 481,984
----------- -----------
Total Assets $25,823,453 $19,920,308
=========== ===========
LIABILITIES
Deposits:
Non-interest bearing transaction accounts $ 2,771,792 $ 2,478,018
Interest bearing transaction accounts 3,054,488 2,532,105
Savings 2,356,018 1,358,378
Time deposits $100,000 and over 2,531,078 2,141,145
Other time deposits 8,230,643 5,050,222
----------- -----------
18,944,019 13,559,868
Securities sold under agreements to repurchase 963,327 424,413
Accrued Interest Payable 41,097 72,832
Other Liabilities 125,796 154,014
----------- -----------
Total Liabilities 20,074,239 14,211,127
----------- -----------
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value; 10,000,000 shares
authorized and unissued
Common Stock, $.01 par value; 10,000,000 shares
authorized; 616,338 shares issued 6,163 6,163
Capital surplus 6,112,318 6,112,318
Retained earnings (deficit) (369,267) (409,300)
----------- -----------
Total Stockholders' equity 5,749,214 5,709,181
----------- -----------
Total Liabilities and Stockholders' equity $25,823,453 $19,920,308
=========== ===========
</TABLE>
See Accompanying Notes to Financial Statements
2
<PAGE> 3
PART I - FINANCIAL INFORMATION (CONTINUED)
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
FNB BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
-------- --------
<S> <C> <C>
INTEREST INCOME
Loans, including fees $460,805 $264,551
Investment securities, taxable 26,107 31,123
Federal funds sold 41,919 63,733
Time Deposits with Other Banks 7,221 0
-------- --------
Total Interest Income 536,052 359,407
-------- --------
INTEREST EXPENSE
Time deposits $100,000 and over 41,400 27,030
Other deposits 140,923 77,445
Securities sold under agreement to repurchase 5,356 7,040
-------- --------
Total Interest Expense 187,679 111,515
-------- --------
NET INTEREST INCOME 348,373 247,892
Provision for loan loss 40,000 39,000
-------- --------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 308,373 208,892
-------- --------
OTHER INCOME
Service charges on deposit accounts 35,153 17,561
Other service charges, commissions and fees 14,551 2,306
Rental Income 0 2,472
-------- --------
49,704 22,339
-------- --------
OTHER EXPENSE
Salaries and employee benefits 155,982 134,646
Occupancy Expense 23,550 22,420
Furniture and equipment 26,255 19,858
Other operating expense 95,934 83,240
-------- --------
301,721 260,164
-------- --------
INCOME (LOSS) BEFORE TAXES 56,356 (28,933)
INCOME TAX EXPENSE (BENEFIT) 23,585 0
-------- --------
NET INCOME (LOSS) $ 32,771 $(28,933)
======== ========
PER SHARE
Average shares outstanding 616,338 616,338
Net income (loss) $ .05 $ (.05)
</TABLE>
See Accompanying Notes to Financial Statements
3
<PAGE> 4
PART I - FINANCIAL INFORMATION (CONTINUED)
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
FNB BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
(UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
---------- ---------
<S> <C> <C>
INTEREST INCOME
Loans, including fees $1,217,470 $ 570,001
Investment securities, taxable 78,969 58,428
Federal funds sold 150,718 231,902
Time Deposits with Other Banks 21,834 0
---------- ---------
Total Interest Income 1,468,991 860,331
---------- ---------
INTEREST EXPENSE
Time deposits $100,000 and over 122,662 59,761
Other deposits 392,330 191,266
Securities sold under agreement to repurchase 17,656 18,000
---------- ---------
Total Interest Expense 532,648 269,027
---------- ---------
NET INTEREST INCOME 936,343 591,304
Provision for loan loss 125,000 108,000
---------- ---------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 811,343 483,304
---------- ---------
OTHER INCOME
Service charges on deposit accounts 85,895 44,698
Other service charges, commissions and fees 48,645 26,335
Rental Income 0 7,416
---------- ---------
134,540 78,449
---------- ---------
OTHER EXPENSE
Salaries and employee benefits 448,789 445,798
Occupancy Expense 72,983 72,465
Furniture and equipment 77,125 57,521
Other operating expense 283,368 236,289
---------- ---------
882,265 812,073
---------- ---------
INCOME (LOSS) BEFORE TAXES 63,618 (250,320)
INCOME TAX EXPENSE (BENEFIT) 23,585 0
---------- ---------
NET INCOME (LOSS) $ 40,033 $(250,320)
========== =========
PER SHARE
Average shares outstanding 616,338 616,338
Net income (loss) $ .06 $ (.41)
</TABLE>
See Accompanying Notes to Financial Statements
4
<PAGE> 5
PART I - FINANCIAL INFORMATION (CONTINUED)
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
FNB BANCSHARES, INC.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
---- ----
<S> <C> <C>
NET INCOME (LOSS) $32,771 $(28,933)
Other comprehensive income, net of tax 0 0
Total other comprehensive income 0 0
Comprehensive income (loss) $32,771 $(28,933)
====== ========
</TABLE>
See Accompanying Notes to Financial Statements
5
<PAGE> 6
PART I - FINANCIAL INFORMATION (CONTINUED)
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
FNB BANCSHARES, INC.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
(UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
---- ----
<S> <C> <C>
NET INCOME (LOSS) $40,033 $(250,320)
Other comprehensive income, net of tax 0 0
Total other comprehensive income 0 0
Comprehensive income (loss) $40,033 $(250,320)
======= =========
</TABLE>
See Accompanying Notes to Financial Statements
6
<PAGE> 7
PART I - FINANCIAL INFORMATION (CONTINUED)
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
FNB BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE PERIOD ENDED SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
RETAINED
COMMON STOCK CAPITAL EARNINGS
--------------------------------------------------------------
SHARES AMOUNT SURPLUS (DEFICIT) TOTAL
<S> <C> <C> <C> <C> <C>
BALANCE, DECEMBER 31, 1997 616,338 $6,163 $6,112,318 $(409,300) $5,709,181
Net income (loss) 0 0 0 40,033 40,033
------- ------ ---------- --------- ----------
BALANCE, SEPTEMBER 30, 1998 616,338 $6,163 $6,112,318 $(369,267) $5,749,214
======= ====== ========== -======== ==========
</TABLE>
See Accompanying Notes to Financial Statements
7
<PAGE> 8
PART I - FINANCIAL INFORMATION (CONTINUED)
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
FNB BANCSHARES, INC.
UNAUDITED STATEMENTS OF CASH FLOWS
FROM DECEMBER 31 TO SEPTEMBER 30,
<TABLE>
<CAPTION>
1998 1997
----------- ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 40,033 $ (250,320)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities
Provision for loan losses 125,000 108,000
Depreciation 68,300 64,089
Accretion and premium amortization 76 (4,855)
Increase in interest receivable (16,924) (96,056)
Increase (decrease) in interest payable (31,735) 34,806
(Increase) decrease in other assets 13,715 (17,834)
Increase (decrease) in other liabilities (28,218) 17,614
----------- ------------
Net cash used by operating activities 170,247 (144,556)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase securities held to maturity (2,099,735) (1,757,222)
Maturity of securities held to maturity 1,700,000 750,000
Purchase Time Deposits (1,000,000) 0
Maturity of Time Deposits 1,100,000 0
Net increase in loans made to customers (5,004,332) (9,483,292)
Purchase premises and equipment (378,069) (112,324)
----------- ------------
Net cash used by investing activities (5,682,136) (10,602,838)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in demand deposits, interest bearing 1,813,797 3,488,676
transaction accounts and savings accounts
Net increase in time deposits 3,570,354 2,859,822
Net increase(decrease) in Repurchase Agreements 538,914 494,740
----------- ------------
Net cash provided by financing activities 5,923,065 6,843,238
----------- ------------
NET INCREASE (DECREASE)IN CASH AND CASH EQUIVALENTS 411,176 (3,904,156)
----------- ------------
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,437,433 8,272,680
----------- ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2,848,609 $ 4,368,524
=========== ============
</TABLE>
See Accompanying Notes to Financial Statements
8
<PAGE> 9
PART I - FINANCIAL INFORMATION (CONTINUED)
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
FNB BANCSHARES, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
ORGANIZATION AND CONSOLIDATION - FNB Bancshares, Inc., a bank holding company
(the "Company"), and its subsidiary, First National Bank of the Carolinas (the
"Bank"), provide banking services to domestic markets principally in Cherokee
County, South Carolina. The Bank commenced operations on October 18, 1996. The
consolidated financial statements include the accounts of the parent company and
its wholly-owned subsidiary after elimination of all significant intercompany
balances and transactions.
BASIS OF PRESENTATION. The accompanying consolidated financial statements have
been prepared in accordance with the requirements for interim financial
statements and, accordingly, they are condensed and omit disclosures which would
substantially duplicate those contained in the most recent annual report to
shareholders. The financial statements for the interim periods are unaudited and
, in the opinion of management, include all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation. The financial
information as of December 31, 1997 has been derived from audited financial
statements as of that date. For further information, refer to the financial
statements and the notes included in FNB Bancshares, Inc.'s 1997 Annual report.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
The following is a discussion of the Company's financial condition as of
September 30, 1998 compared to December 31, 1997, and the results of operations
for the three months ended September 30, 1998 compared to the three months ended
September 30, 1997 as well as the nine months ended September 30, 1998 compared
to the nine months ended September 30, 1997. These comments should be read in
conjunction with the Company's condensed consolidated financial statements and
accompanying footnotes appearing in this report.
This report contains "forward-looking statements" relating to, without
limitation, future economic performance, plans and objectives of management for
future operations, and projections of revenues and other financial items that
are based on the beliefs of the Company's management, as well as assumptions
made by and information currently available to the Company's management. The
words "expect," "anticipate," and "believe," as well as similar expressions, are
intended to identify forward-looking statements. The Company's actual results
may differ materially from the results discussed in the forward-looking
statements, and the Company's operating performance each quarter is subject to
various risks and uncertainties that are discussed in detail in the Company's
filings with the Securities and Exchange Commission, including the "Risk
Factors" section in the Company's Registration Statement on Form S-1
(Registration Number 333-1546) as filed with and declared effective by the
Securities and Exchange Commission.
9
<PAGE> 10
PART I - FINANCIAL INFORMATION (CONTINUED)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION (CONTINUED)
RESULTS OF OPERATIONS FOR 1998 COMPARED TO 1997:
Net Interest Income
Net interest income for the three month period ended September 30, 1998 was
$348,373 compared to $247,892 for the three month period ended September 30,
1997. Net interest income for the nine month period ended September 30, 1998 was
$936,343 compared to $591,304 for the nine month period ended September 30,
1997. The interest rate spread was 5.31% at September 30, 1998 and 5.0% at
September 30, 1997. The increased income is primarily attributed to growth in
the loan portfolio, as the amount of total loans increased to $19.2 million at
September 30, 1998 as compared to $11.5 million at September 30, 1997. The
largest component of interest income was interest on loans, which increased to
$460,805 for the three months ended September 30, 1998 as compared to $264,551
for the three months ended September 30, 1997, and $1,217,470 for the nine
months ended September 30, 1998 as compared to $570,001 for the nine months
ended September 30, 1997. These increases were primarily attributable to growth
in the Bank's loan portfolio. Interest on investment securities decreased to
$26,107 for the three months ended September 30, 1998 as compared to $31,123 for
the three months ended September 30, 1997. This decrease is due to the Bank's
shift of funds from Treasuries to certificates of deposit in 1998 in order to
increase investment yield. Interest on investment securities increased to
$78,969 for the nine months ended September 30, 1998 as compared to $58,428 for
the nine months ended September 30, 1997. The increases in interest income were
partially offset by increases in interest expense, to $187,679 for the three
months ended September 30, 1998 as compared to $111,515 for the three months
ended September 30, 1997, and $532,648 for the nine months ended September 30,
1998 as compared to $269,027 for the nine months ended September 30, 1997.
Provision and Allowance for Loan Losses
The provision for loan losses is the charge to operating earnings that
management feels is necessary to maintain the allowance for possible loan losses
at an adequate level. For the three months ended September 30, 1998, the
provision charged to expense was $40,000, compared to $39,000 charged to expense
for the three months ended September 30, 1997. For the nine months ended
September 30, 1998, the provision charged to expense was $125,000, compared to
$108,000 charged to expense for the nine months ended September 30, 1997. The
loan loss reserve was $272,864 as of September 30, 1998, or 1.42% of gross
loans, as compared to $152,614 as of December 31, 1997, or 1.08% of gross loans.
The loan portfolio is periodically reviewed to evaluate the outstanding loans
and to measure both the performance of the portfolio and the adequacy of the
allowance for loan losses. This analysis includes a review of delinquency
trends, actual losses, and internal credit ratings. Management's judgment as to
the adequacy of the allowance is based upon a number of assumptions about future
events which it believes to be reasonable, but which may or may not be accurate.
Because of the inherent uncertainty of assumptions made during the evaluation
process, there can be no assurance that loan losses in future periods will not
exceed the allowance for loan losses or that additional allocations will not be
required.
Non-Interest Income
Non-interest income for the three months ended September 30, 1998 was $49,704,
as compared to $22,339 for the three months ended September 30, 1997.
Non-interest income for the nine months ended September 30, 1998 was $134,540,
as compared to $78,449 for the nine months ended September 30, 1997. Of the
three months ended September 30, 1998; $35,153 was a result of deposit account
service charges, account maintenance fees, NSF and overdraft fees, and $14,551
was other miscellaneous service charges. Of the amount for the nine months ended
September 30, 1998 $85,895 was a result of deposit account service charges,
account maintenance fees, NSF and overdraft fees, and $48,645 was other
miscellaneous service charges. This increase in fees is attributed to overall
growth of the deposit portfolio.
10
<PAGE> 11
PART I - FINANCIAL INFORMATION (CONTINUED)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION (CONTINUED)
Non-Interest Expense
Non-Interest Expense for the three month period ended September 30, 1998 was
$301,721, as compared to $260,164 for the three month period ended September 30,
1997. Salaries and employee benefits comprise $155,982 and $134,646 respectively
of this amount. Depreciation of buildings, furniture and equipment accounted for
$23,185 and $21,632 for the three month periods ended September 30, 1998 and
September 30, 1997, respectively.
Non-Interest Expense for the nine month period ended September 30, 1998 was
$882,265, as compared to $812,073 for the nine month period ended September 30,
1997. Salaries and employee benefits comprise $448,789 and $445,798 respectively
of this amount. Depreciation of buildings, furniture and equipment accounted for
$68,300 and $64,089 for the nine month periods ended September 30, 1998 and
September 30, 1997, respectively.
ASSETS AND LIABILITIES
During the first nine months of 1998, total assets increased $5,903,145, or 30%,
when compared to December 31, 1997. The primary growth in assets was in loans
with an increase of $4,999,582, or 35%, since December 31, 1997. Total
liabilities increased $5,863,112, or 41%, when compared to December 31, 1997.
Within the deposit area, savings accounts, which include money market accounts,
increased 73% , interest bearing transaction accounts increased 21%,
non-interest bearing transaction accounts increased 12%, and time deposits
increased 50%. However, this tremendous growth rate is a reflection of the fact
that the Bank is relatively young, as it opened for business on October 18,
1996, and the Company does not expect to maintain or duplicate this growth rate.
The Company's management closely monitors and seeks to maintain appropriate
levels of interest earning assets and interest bearing liabilities so that
maturities of assets are such that adequate funds are provided to meet customer
withdrawals and demand. Management expects asset and liability growth to
continue at a rapid pace during the coming months, with the growth tapering off
to a slower, more deliberate and controllable pace over the longer term, and
believes capital should continue to be adequate for the next 12 months.
Loans
Balances within the major loan categories as of September 30, 1998 and December
31, 1997 are as follows:
<TABLE>
<CAPTION>
September 30, 1998 December 31, 1997
<S> <C> <C>
Commercial and Industrial $ 5,664,497 $ 3,227,562
Real Estate - Construction 459,614 206,531
Real Estate - Other 8,428,942 6,724,721
Installment and consumer credit lines 4,615,361 4,010,018
----------- -----------
$19,168,414 $14,168,832
=========== ===========
Allowance for loan loss, December 31, 1997 $ 152,614
Provision 125,000
Charge-offs 4,750
Allowance for loan loss, September 30, 1998 $ 272,864
Gross loans outstanding, December 31, 1997 $14,168,832
Gross loans outstanding, September 30, 1998 $19,168,414
Allowance for loan losses to loans outstanding, December 31, 1997 1.08%
-----------
Allowance for loan losses to loans outstanding, September 30, 1998 1.42%
-----------
</TABLE>
11
<PAGE> 12
PART I - FINANCIAL INFORMATION (CONTINUED)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION (CONTINUED
Deposits
Balances within the major deposit categories as of September 30, 1998 and
December 31, 1997 are as follows:
<TABLE>
<CAPTION>
September 30, 1998 December 31, 1997
------------------- -----------------
<S> <C> <C>
Non-interest bearing demand deposits $ 2,771,792 $ 2,478,018
Interest bearing demand deposits 3,054,488 2,532,105
Savings deposits 2,356,018 1,358,378
Time deposit $100,000 and over 2,531,078 2,141,145
Other Time Deposits 8,230,643 5,050,222
----------- -----------
$18,944,019 $13,559,868
=========== ===========
</TABLE>
Liquidity
Liquidity needs are met by the Company through scheduled maturities of loans and
investments on the asset side and through pricing policies on the liabilities
side for interest-bearing deposit accounts. The level of liquidity is measured
by the loan-to-total borrowed funds ratio which was 96% at September 30, 1998
and 101% at December 31, 1997.
Capital Resources
Total shareholders' equity increased $40,033 to $5,749,214 at September 30,
1998. The increase is attributable to income for the period.
Bank holding companies and their banking subsidiaries are required by banking
regulators to meet certain minimum levels of capital adequacy which are
expressed in the form of certain ratios. Capital is separated into Tier 1
capital (essentially common shareholders' equity less intangible assets) and
Tier 2 capital (essentially the allowance for loan losses limited to 1.25% of
risk weighted assets). The first two ratios, which are based on the degree of
credit risk in the Company's assets, require the weighting of assets based on
assigned risk factors and include off-balance sheet items such as loan
commitments and stand-by letters of credit. The ratio of Tier 1 capital to
risk-weighted assets must be at least 4% and the ratio of total capital (Tier 1
capital plus Tier 2) to risk-weighted assets must be at least 8%. The capital
leverage ratio supplements the risk-based capital guidelines. The leverage ratio
is Tier 1 capital divided by the adjusted quarterly average total assets. Banks
and bank holding companies are required to maintain a minimum leverage ratio of
3.0%.
The following table summarizes the Company's risk-based capital at September 30,
1998(in thousands):
<TABLE>
<S> <C>
Shareholders' equity $ 5,749
Less: intangibles 267
-------
Tier 1 capital $ 5,482
=======
Plus: allowance for loan losses (1) 246
-------
Total Capital $ 5,728
=======
Risk-Weighted assets $19,704
Risk based capital ratios
Tier 1 27.82%
Total capital 29.07%
Leverage ratio 21.65%
</TABLE>
(1) limited to 1.25% of risk-weighted assets
12
<PAGE> 13
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Not Applicable
ITEM 2. CHANGES IN SECURITIES
Not Applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable
ITEM 5. OTHER INFORMATION
Not Applicable
ITEM 6. EXHIBITS AND REPORT ON FORM 8-K
(a) Exhibits - Financial Data Schedules (for SEC use only)
(b) Reports on Form 8-K - No reports on Form 8-K were filed during
the quarter ended September 30, 1998
13
<PAGE> 14
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
FNB BANCSHARES, INC.
(Registrant)
Date: November 6, 1998 By: /s/ V. Stephen Moss
----------------------------------------
V. Stephen Moss
President and Chief Executive Officer
14
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 1,408,609
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 1,440,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 1,900,990
<LOANS> 19,168,414
<ALLOWANCE> 272,864
<TOTAL-ASSETS> 25,823,453
<DEPOSITS> 18,944,019
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,130,220
<LONG-TERM> 0
0
0
<COMMON> 6,163
<OTHER-SE> 5,743,051
<TOTAL-LIABILITIES-AND-EQUITY> 25,823,453
<INTEREST-LOAN> 1,217,470
<INTEREST-INVEST> 251,521
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 1,468,991
<INTEREST-DEPOSIT> 514,992
<INTEREST-EXPENSE> 532,648
<INTEREST-INCOME-NET> 936,343
<LOAN-LOSSES> 125,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 882,265
<INCOME-PRETAX> 63,618
<INCOME-PRE-EXTRAORDINARY> 63,618
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 40,033
<EPS-PRIMARY> (.06)
<EPS-DILUTED> (.06)
<YIELD-ACTUAL> 8.80
<LOANS-NON> 10,155
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 152,614
<CHARGE-OFFS> 4,750
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 272,864
<ALLOWANCE-DOMESTIC> 272,864
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
