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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):
September 9, 1999
FIRST LANCASTER BANCSHARES, INC.
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(Exact name of registrant as specified in charter)
DELAWARE 0-20899 61-1297318
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
208 LEXINGTON STREET, LANCASTER, KENTUCKY 40444-1131
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (606)792-3368
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ITEM 5. OTHER EVENTS.
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On September 9, 1999, the Registrant announced the
restatement of certain operating ratios for the fiscal year
ended June 30, 1998. Detailed information is contained in the
Registrant's press release dated September 9, 1999 attached as
exhibit 99.1
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS.
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The following exhibit is being filed as part of this
Current Report on Form 8-K:
Number Description
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99.1 Press Release issued September 9, 1999
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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.
FIRST LANCASTER BANCSHARES, INC.
By: /s/ Virginia R. S. Stump
_____________________________________
Virginia R. S. Stump
President and Chief Executive Officer
Date: September 9, 1999
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FIRST LANCASTER BANCSHARES, INC.
ANNOUNCED EARNINGS
September 9, 1999
First Lancaster Bancshares, Inc. (NASDAQ Small Cap
Market: FLKY), the parent company of First Lancaster Federal
Savings Bank of Lancaster, KY announced record earnings and
earnings per share for the quarter ended June 30, 1999.
Earnings for the quarter ended June 30, 1999 were $182,000 as
compared to earnings of $133,000 for the quarter ended June 30,
1998, an increase of $49,000, or 36.8%. Basic and diluted
earnings per share for the quarter ended June 30, 1999 were $.22
as compared to basic and diluted earnings per share of $.15 for
the quarter ended June 30, 1998. This increase in earnings is
due primarily to a decrease of $30,000 in provision for loan
losses and a decrease of $29,000 in other expenses.
The Company also announced annual earnings of $301,000
for the fiscal year ended June 30, 1999 as compared to annual
earnings of $512,000 for the fiscal year ended June 30, 1998, a
decrease of $211,000. Basic and diluted earnings per share for
the year ended June 30, 1999 were $.35 as compared to basic and
diluted earnings per share of $.57 and $.56, respectively, for
the year ended June 30, 1998. This decrease in earnings and
earnings per share for the year is the result of a specific
$385,000 ($254,000 net of tax benefit) provision for loan losses
recorded in the quarter ended December 31, 1998 related to
construction loans to one borrower that became doubtful for
collection.
As of June 30, 1999, First Lancaster Bancshares reported
assets of $52.8 million, a decrease of $995,000, from the $53.7
million in assets reported at June 30, 1998. This decrease is
primarily due to a $1.4 million decrease in net loans
receivable. Total liabilities as of June 30, 1999 were $39.2
million, a decrease of $400,000 as compared to $39.6 million at
June 30, 1998. This decrease is the result of an increase in
customer deposits of $4.2 million offset by a decrease in
Federal Home Loan Bank advances of $4.6 million. Total
shareholders' equity as of June 30, 1999 stands at $13.3
million, a decrease of $300,000 from June 30, 1998. This
decrease is due to dividends to shareholders and a 5% stock
repurchase program that began in November 1998 and was completed
in March 1999.
First Lancaster Federal Savings Bank serves Garrard and
surrounding counties from their main office in Lancaster,
Kentucky and their loan office in Nicholasville, Kentucky.
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CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS: June 30, 1999 June 30, 1998
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<S> <C> <C>
(Dollars in Thousands)
Cash and cash equivalents $ 475 $ 516
Interest-bearing deposits 2,231 2,187
Investment securities 2,208 1,886
Loans and mortgage-backed
securities 46,510 48,029
Other assets 1,328 1,129
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TOTAL ASSETS $52,752 $53,747
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits $29,653 $25,417
Borrowed money 8,831 13,461
Other liabilities 686 745
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Total Liabilities 39,170 39,623
Common stock owned by ESOP
subject to put option 311 486
Total stockholder's equity 13,271 13,638
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TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $52,752 $53,747
</TABLE>
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CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE QUARTERS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
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<S> <C> <C>
(Dollars in Thousands)
Interest Income $1,037 $1,070
Interest Expense 511 544
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Net Interest Income 526 526
Provision for Loan Losses - 30
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Net Interest Income After Provision
for Loan Losses 526 496
Total Non-Interest Expense, net 256 285
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Income Before Federal Income Tax
Provision 270 211
Federal Income Tax Provision 88 78
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Net Income $ 182 $ 133
Basic Earnings Per Share $ 0.22 $ 0.15
Diluted Earnings Per Share $ 0.22 $ 0.15
</TABLE>
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEARS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
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<S> <C> <C>
(Dollars in Thousands)
Interest Income $4,335 $4,035
Interest Expense 2,216 1,960
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Net Interest Income 2,119 2,075
Provision for Loan Losses 501 115
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Net Interest Income After Provision
for Loan Losses 1,618 1,960
Total Non-Interest Expense, net 1,156 1,166
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Income Before Federal Income Tax
Provision 462 794
Federal Income Tax Provision 161 282
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Net Income $ 301 $ 512
Basic Earnings Per Share $ 0.35 $ 0.58
Diluted Earnings Per Share $ 0.35 $ 0.57
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In addition to the above earnings release, the Company
announced the amendment of its Form 10-KSB for the year ended
June 30, 1998. An Amended Form 10-KSB for the year ended June
30, 1998, is being filed in conjunction with this press release.
Certain operating ratios in the Form 10-KSB for the fiscal year
ended June 30, 1998 were inadvertently misstated by using the
incorrect average daily balances for assets, liabilities and
stockholders' equity due to a misinterpretation of the reporting
provided by the Company's third party data processing center.
Below sets forth the comparison of the previously reported key
operating ratios and the amended operating ratios.
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<TABLE>
<CAPTION>
Key Operating Ratio: As previously reported
in Form 10-KSB for the
fiscal year ended
June 30, 1998 As Amended
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<S> <C> <C>
Return on average assets .94 1.03
Return on average total equity 3.59 3.63
Interest rate spread 3.03 2.91
Ratio of average interest earning
assets to average interest
bearing liabilities 127.79 135.54
Ratio of noninterest expense to
average total assets 2.15 2.34
Net charge-offs to average loans
outstanding .08 .09
Average total equity to average assets 23.15 28.33
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Contact: First Lancaster Bancshares, Inc., Lancaster, KY
Julia G. Taylor, Comptroller
(606) 792-3368
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