UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington DC 20549
Form 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarterly period ended September 30, 1998
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the transition period from ________ to ________
Commission file number 0-3041
NATCOM Bancshares, Inc.
(Exact name of registrant as specified in its charter)
Wisconsin 39-192-1969
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1127 Tower Avenue
Superior, Wisconsin 54880
- --------------------- ----------
(Address of principal (Zip Code)
executive office)
(715) 394-5531
---------------------------------------------------
(Registrant's telephone number including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of Securities Exchange Act of 1934 during the
preceding 12 month (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.
Indicate the number of share outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 71,532 shares of the Company's
Common Stock ($0.01 par value) were outstanding.
<PAGE>
NATCOM BANCSHARES, INC.
TABLE OF CONTENTS
PART I FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Balance Sheets
September 30, 1998 and December 31, 1997
Consolidated Statements of Income
Three Months Ended September 30, 1998 and 1997
Consolidated Statements of Income
Nine Months Ended September 30, 1998 and 1997
Consolidated Statement of Stockholders' Equity
Nine Months Ended September 30, 1998
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 1998 and 1997
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
SIGNATURE
Financial Data Schedule Worksheet
All other schedules and compliance information called for by the instructions to
Form 10-Q have been omitted since the required information is not present or not
present in amounts sufficient to require submission.
<PAGE>
NATCOM BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS ( in 000's of dollars)
(Unaudited)
<TABLE>
September 30, December 31,
1998 1997
- --------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Cash and cash equivalents ...................................... $ 8,888 $ 7,816
Federal funds sold ............................................. 12,000 7,720
Available-for-sale securities .................................. 53,088 49,325
Loans held for sale ............................................ 112 325
Loans, less allowance for loan losses of
1998 $1,492; 1997 $1,493 .................................. 115,141 109,989
Premises and equipment, net .................................... 1,809 1,786
Other real estate and personal property owned .................. 925 971
Accrued interest receivable and other assets ................... 2,170 1,863
---------------------
$194,133 $179,795
=====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing ................................... $ 26,515 $ 22,981
Interest-bearing ...................................... 121,683 112,722
---------------------
Total deposits ..................................... 148,198 135,703
Short-term borrowings ..................................... 20,880 19,913
Accrued interest payable and other liabilities ............ 1,098 1,231
---------------------
Total liabilities .................................. 170,176 156,847
---------------------
Commitments, Contingencies, and Credit Risk
Stockholders' Equity
Common stock, $0.01 par value; 1,000,000 shares authorized;
issued 1998 11,532 shares, 1997 72,000 shares ......... 1 1
Additional paid-in capital ................................ 3,774 3,799
Retained earnings ......................................... 19,402 18,631
Accumulated other comprehensive income, unrealized gain on
available-for-sale securities, net .................... 780 517
---------------------
Total stockholders' equity ......................... 23,957 22,948
---------------------
$194,133 $179,795
=====================
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
NATCOM BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (in 000's of dollars)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------------------
1998 1997 1998 1997
- --------------------------------------------------------------------------------
Interest Income
Loans .......................... $ 2,722 $ 2,575 $ 8,044 $ 7,705
Securities ..................... 726 769 2,111 2,322
Federal funds sold and other ... 197 66 436 108
----------------------------------------
3,645 3,410 10,591 10,135
----------------------------------------
Interest Expense
Deposits ....................... 1,246 1,217 3,699 3,625
Short-term borrowings .......... 286 170 745 489
----------------------------------------
1,532 1,387 4,444 4,114
----------------------------------------
Net interest income ........ 2,113 2,023 6,147 6,021
Provision for Loan Losses ........... 15 -- 45 --
----------------------------------------
Net interest income after
provision for loan losses 2,098 2,023 6,102 6,021
----------------------------------------
Other Income
Service charges and other fees . 189 159 540 428
Securities losses, net ......... -- -- -- (3)
Other income ................... 40 73 137 129
----------------------------------------
229 232 677 554
----------------------------------------
Other Expenses
Salaries and employee benefits . 651 649 1,951 1,949
Occupancy expenses ............. 129 134 387 401
Other expenses ................. 305 335 1,060 923
----------------------------------------
1,085 1,118 3,398 3,273
----------------------------------------
Income before income taxes . 1,242 1,137 3,381 3,302
Income Tax Expense .................. 287 312 925 937
----------------------------------------
Net income ................. $ 955 $ 825 $ 2,456 $ 2,364
========================================
Weighted average shares
outstanding .................... 71,532 72,000 71,792 72,000
========================================
Earnings per common share ........... $ 13.35 $ 11.46 $ 34.21 $ 32.85
========================================
Dividends per common share .......... $ 7.00 $ 7.00 $ 21.00 $ 21.00
========================================
Comprehensive income ................ $ 1,180 $ 930 $ 2,719 $ 2,516
========================================
See Notes to Consolidated Financial Statements
<PAGE>
NATCOM BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in 000's of dollars)
Nine Months Ended September 30, 1998
(Unaudited)
<TABLE>
Unrealized
Gain (Loss)
Additional on Available-
Common Paid in Retained For-Sale
Stock Capital Earnings Securities Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1997 .................................................. $1,800 $ 2,000 $18,631 $ 517 $22,948
Net income ............................................................. -- -- 762 -- 762
Net change in unrealized gain
(loss) on available-for-sale
securities, net .................................................... -- -- -- (7) (7)
Cash dividends paid .................................................... -- -- (504) -- (504)
----------------------------------------------------
Balance, March 31, 1998 ..................................................... 1,800 2,000 18,889 510 23,199
Net income ............................................................. -- -- 739 -- 739
Net change in unrealized gain
(loss on available-for-sale
securities, net .................................................... -- -- -- 44 44
Cash dividends paid .................................................... -- -- (501) -- (501)
Reorganization and tender offer:
Purchase and retirement of 468
shares of common stock
tendered for cash ............................................... (12) (13) (179) -- (204)
Exchange of 71,532 shares of
NATCOM common stock, par value $.01, in exchange for 71,532 shares
of National Bank of Commerce common
stock par value $25 ............................................. (1,787) 1,787 -- -- --
----------------------------------------------------
Balance, June 30, 1998 ...................................................... 1 3,774 18,948 554 23,277
Net income ............................................................. -- -- 955 -- 955
Net change in unrealized gain
(loss) on available-for-sale
securities, net .................................................... -- -- -- 226 226
Cash dividends paid .................................................... -- -- (501) -- (501)
----------------------------------------------------
Balance, September 30, 1998 ................................................. $ 1 $ 3,774 $19,402 $ 780 $ 23,957
====================================================
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
NATCOM BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS (in 000's of dollars)
(Unaudited)
<TABLE>
Nine Months Ended
September 30,
--------------------
1998 1997
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Cash Flows from Operating Activities
Net income ...................................................... $ 2,456 $ 2,365
Adjustments to reconcile net income to cash provided by
by operating activities:
Net amortization and accretion of bond premiums and discounts 54 15
Securities (gains) losses - unrealized gains before taxes ... -- 3
Provision for loan losses ................................... 45 --
Net decrease in loans held for sale ......................... 213 126
Depreciation ................................................ 178 206
Other ....................................................... (726) 159
--------------------
Net cash provided by operating activities ................ 2,220 2,874
--------------------
Cash Flows from Investing Activities:
Cash flows from available-for-sale securities:
Sales ....................................................... 8,354 11,072
Maturities .................................................. 20,808 1,430
Purchases ................................................... (32,419) (10,949)
Net increase (decrease) in federal funds sold ................... (4,280) 3,200
Net increase in loans ........................................... (5,197) (302)
Proceeds from sale of other real estate and personal property ... 46 --
Purchases of bank premises and equipment ........................ (200) (44)
--------------------
Net cash provided by (used in) investing activities ...... (12,888) 4,407
--------------------
Cash Flows from Financing Activities
Net increase (decrease) in deposits ............................. 12,495 (7,039)
Net proceeds from short-term borrowings ......................... 967 2,501
Retirement of common stock ...................................... (204) --
Cash dividends paid ............................................. (1,506) (1,512)
--------------------
Net cash provided by (used in) financing activities ...... 11,752 (6,050)
--------------------
Increase in cash and cash equivalents .................... 1,084 1,231
Cash and cash equivalents:
Beginning ....................................................... 7,804 9,294
--------------------
Ending .......................................................... $ 8,888 $ 10,525
====================
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
NATCOM BANCSHARES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
September 30, 1998
Note 1. Summary of Significant Accounting Policies
NATCOM Bancshares, Inc. (the Company) was incorporated under the laws of the
state of Wisconsin on January 23, 1998 for the purpose of becoming the bank
holding company of National Bank of Commerce in Superior (the Bank) in
connection with a reorganization whereby (i) the Bank became a wholly-owned
subsidiary of the Company and (ii) shareholders of the Bank became shareholders
of the Company. The Company and Bank have received regulatory approval from the
Office of the Comptroller of the Currency and the Federal Reserve Bank for the
reorganization. The reorganization was consummated on June 1, 1998.
The consolidated financial statements included herein are for the Company, the
Bank and the Bank's wholly-owned subsidiary, NATCOM Investment Corporation. The
reorganization has been accounted for similar to a pooling of interests for
companies under common control. Accordingly, the historical financial statements
have been retroactively restated to give effect to the reorganization as of the
beginning of the earliest period presented.
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q. Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. Interim
results are not necessarily indicative of results for a full year.
A summary of the Company's significant accounting policies is presented on page
F-7 (not shown) of its Registration Statement on Form S-4 (No. 333-47579). Users
of financial information produced for interim periods are encouraged to refer to
the footnotes contained in Registration Statement on Form S-4 (No. 333-47579)
when reviewing interim financial results. There has been no material change in
the accounting policies followed by the Company during 1998.
In the opinion of management, the accompanying interim financial statements
contain all material adjustments, consisting only of normal recurring
adjustments, necessary to present fairly the consolidated financial position,
results of operations, cash flows, and shareholders' equity of NATCOM
Bancshares, Inc.
Note 2. Earnings Per Share
Earnings per share are based on weighted number of shares of common stock
outstanding during each period. The number of shares used in the calculation of
earnings per share are as follows:
September 30,
--------------------------
1998 1997
--------------------------
Quarter ending ........................... $71,532 $72,000
Nine months ending ....................... 71,792 72,000
Note 3. Regulatory Capital Requirements
At September 30, 1998, the Company met each of three current minimum regulatory
capital requirements. The following table summarizes the Company's regulatory
capital position at September 30, 1998:
Actual Required
--------------------
Total capital (to risk weighted assets) ............... 19.2% 8.0%
Tier I capital (to risk weighted assets) .............. 18.0% 4.0%
Tier I capital (to average assets) .................... 11.9% 4.0%
<PAGE>
NATCOM BANCSHARES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND OPERATIONS
Item 2
General: The Company's net earnings are dependent primarily on its net interest
income, which is the difference between interest earned on loans and
investments, and the interest paid on interest-bearing liabilities, primarily
deposits. Net interest income is determined by (i) the difference between the
yield earned on interest earning assets and rates paid on interest-bearing
liabilities ("interest rate spread") and (ii) the relative amounts of interest
earning assets and interest-bearing liabilities. The Company's interest rate
spread is also affected by regulatory, economic, and competitive factors that
influence interest rates, loan demand, and deposit flows. The Company's net
earnings are also affected by the generation of noninterest income, which
primarily consists of fees and service charges. In addition, net earnings are
affect by the level of operating expenses and provisions for loan losses.
The operations of financial institutions, including the Bank, are significantly
affected by prevailing economic conditions, competition, regulatory policies,
and the monetary and fiscal policies of the U.S. Government and government
agencies. Lending activities are influenced by the demand for, and supply of
housing, competition among lenders, the level of interest rates and the
availability of funds. Deposit flows and cost of funds are influenced by
prevailing market rates of interest primarily on competing investments, account
maturities and the levels of personal income and savings in the market area of
the Bank.
Year 2000 Issues: The Year 2000 Issue is the result of computer programs being
written using two digits rather than four to define the applicable year. Any of
the Bank's computer programs that have date-sensitive software may recognize a
date using "00" as the year 1900 rather than the year 2000. This could result in
a system failure or miscalculations causing disruptions of operations,
including, among other things, a temporary inability to process transactions,
calculate interest accruals, or engage in similar normal business activities.
In 1997 the Company adopted a policy and appointed a committee to actively
manage its Y2K planning, allocation and monitoring efforts, including
measurement of internal and external risks. The policy established a process
which included the following: problem assessment, identify risk, accountability,
scheduling, strategic planning, allocation of resources, internal communication,
vendor certifications, contingency planning, third party risk assessment and
communication and internal reporting.
The Company has identified its core processing applications as mission critical.
Upgrades to the Company's core processing system including a new teller system
were completed in September 1998. testing of the core processing system began in
September 1998. Contingency planning is under development and is expected to
include service bureaus who provide core processing capabilities.
Testing of non-critical systems will be completed by June 30, 1999.
The Company has contacted each major loan customer and is in the process of
completing due diligence inquiries regarding the customer's Y2K risks and
efforts. Customers classified as high risk will be closely monitored to verify
Y2K preparedness. The Company has contacted its major third party venders who
have stated that they intend to be Y2K compliant by 2000.
The Company believes is will cost approximately $223,000 to upgrade its core
processing system and make other necessary changes. This estimate does not
include any amount for the many staff hours that have been and will be required
to complete this process.
The Company presently believes that with modifications to existing software and
conversions to new software, the Year 2000 Issue can be mitigated. However, if
such modifications and conversions are not made, or are not completed timely,
the Year 2000 Issue could have a material impact on the operations of the
Company.
<PAGE>
Financial Condition: Total assets increased by $14.34 million, or 8.0%, from
$179.80 million at December 31, 1997, to $194.13 million at September 30, 1998.
The increase was primarily due to an increase in net loans receivable,
available-for-sale securities, federal funds sold, and cash and cash
equivalents. Cash and cash equivalents totaled $8.89 million at September 30,
1998, an increase of $1.07 million or 13.7% from December 31, 1997. Federal
funds sold increased $4.28 million or 55.4% from $7.72 million at December 31,
1997 to $12.0 million at September 30, 1998. The available-for-sale securities
portfolio increased $3.76 million, or 7.6% from $49.33 million at December 31,
1997 to $53.01 million at September 30, 1998. Net loans receivable increased
$5.15 million or 4.7%, from $109.99 million at December 31, 1997 to $115.14
million at September 30, 1998. This increase was due primarily to an increase in
commercial and commercial real estate lending activity.
Deposits increased by $12.50 million, or 9.2%, from $135.70 million at December
31, 1997, to $148.20 million at September 30, 1998. The increase was due
primarily to an increase in money market accounts and business checking
accounts.
Borrowings increased $0.97 million, or 4.86%, from 19.91 million at December 31,
1997, to $20.88 million at September 30, 1998.
Stockholders' equity increased during the nine months ended September 30, 1998
by $1.01 million or 4.4%, from $22.95 million at December 31, 1997, to $23.96
million at September 30, 1998. The increase was primarily a result of net
earnings of $2.46 million and a net increase in the unrealized gain on available
for sale securities of $0.26 million, partially offset by a $1.51 million
dividend paid on common stock and a $0.20 million redemption of common stock.
Net Earnings: Net earnings for the three months ended September 30, 1998,
increased $130,000 or 15.8% from the three months ended September 30, 1997, from
$825,000 to $955,000, respectively. This increase was primarily the result of an
increase in net interest income and a decrease in noninterest expense, partially
offset by an increase in the provision for loan losses during the period. Net
earnings for the nine months ended September 30, 1998, increased $91,000 or 3.9%
compared to the nine months ended September 30, 1997, from $2.37 million to
$2.46 million, respectively. The increase was primarily due to and increase in
net interest income and noninterest income, partially offset by an increase in
the provision for loan losses and noninterest expense.
Net Interest Income: Net interest income increased by $90,000 or 4.5% for the
three months ended September 30, 1998, compared to the three months ended
September 30, 1997. The Company increased its average interest earning assets by
$17.35 million or 10.5%, due primarily to increased loan demand and an increased
use of leveraged borrowings, while the net interest margin decreased from 4.9%
for the three months ended September 30, 1997 to 4.6% for the three months ended
September 30, 1998. Net interest income increased by $126,000 or 2.1% for the
nine months ended September 30, 1998, compared to the nine months ended
September 30, 1997. The Company increased its average interest earning assets by
$12.24 million or 7.4%, due primarily to increased loan demand and an increased
use of leveraged borrowings, while the net interest margin decreased from 4.9%
for the nine months ended September 30, 1997 to 4.7% for the nine months ended
September 30, 1998
Interest Income: Interest income increased by $235,000 or 6.9% from $3.41
million for the three months ended September 30, 1997 to $3.65 million for the
three months ended September 30, 1998. The increase in interest income is
primarily a result of a $17.35 million increase in average interest earning
assets, partially offset by a 35 basis point decrease in the average yield on
interest earning assets between periods. Interest income increased by $456,000
or 4.5% from $10.14 million for the nine months ended September 30, 1997 to
$10.59 million for the nine months ended September 30, 1998. The increase in
interest income is primarily a result of a $12.24 million increase in average
interest earning assets, partially offset by a 26 basis point decrease in the
average yield on interest earning assets between periods.
Interest Expense: Interest expense increased by $145,000 or 10.5% from $1.39
million for the three months ended September 30, 1997 to $1.53 million for the
three months ended September 30, 1998. The increase in interest expense is
primarily a result of an increase in the average cost of interest bearing
liabilities from 4.2% for the three months ended September 30, 1997 to 4.3% for
the three months ended September 30, 1998, and a $11.31 million increase in
average interest bearing liabilities between periods. Interest expense increased
by $330,000 or 8.0% from $4.11 million for the nine months ended September 30,
1997 to $4.44 million for the nine months ended September 30, 1998. The increase
in interest expense is primarily a result of a $4.72 million increase in average
interest bearing liabilities along with an 18 basis point increase in the
average cost of interest bearing liabilities from 4.1% for the nine months ended
September 30, 1997 to 4.3% for the nine months ended September 30, 1998.
<PAGE>
Provision for Loan Losses: The Bank's provision for loan losses increased
$15,000 for the three months ended September 30, 1998 over the three months
ended September 30, 1997. The Bank's provision for loan losses increased $45,000
for the nine months ended September 30, 1998 over the nine months ended
September 30, 1997. Adjustments to the Bank's provision for loan losses is a
result of management's ongoing evaluation of the loan portfolio.
Noninterest Income: Total noninterest income decreased by $3,000 or 1.3% from
$232,000 for the three months ended September 30, 1997 to $229,000 for the three
months ended September 30, 1998. This decrease was primarily due to a $33,000
decrease in other noninterest income, partially offset by a $30,000 increase in
fees and service charges. Total noninterest income increased by $123,000 or
22.2% from $554,000 for the nine months ended September 30, 1997 to $677,000 for
the nine months ended September 30, 1998. This increase was primarily due to an
$112,000 increase in fees and service charges, a $3,000 decrease in net losses
on the sale of securities, and an $8,000 increase in other non interest income.
Noninterest Expense: Total noninterest expense decreased by $33,000 or 3.0% from
$1.12 million for the three months ended September 30, 1997 to $1.09 million for
the three months ended September 30, 1998. This decrease was primarily for the
following reasons: (i) a $2,000 increase in compensation and employee benefits,
(ii) a $5,000 decrease in occupancy expense and (iii) a $30,000 net decrease in
various other noninterest expense categories. Total noninterest expense
increased by $124,000 or 3.8% from $3.27 million for the nine months ended
September 30, 1997 to $3.40 million for the nine months ended September 30,
1998. This increase was primarily a $136,000 increase in various other
noninterest expense categories, partially offset by a $14,000 decrease in
occupancy expenses.
Income Tax Expense: Income tax expense decreased by $25,000 or 8.0% from
$312,000 for the three months ended September 30, 1997 to $287,000 for the three
months ended September 30, 1998. Income tax expense increased by $12,000 or 1.3%
from $937,000 for the nine months ended September 30, 1997 to $925,000 for the
nine months ended September 30, 1998.
Liquidity and Capital Resources: The Company's primary source of funds for
operations are deposits from its market area; principal and interest payments on
loans, securities available for sale and federal funds sold; proceeds from the
sale or maturation of securities and loans; advances from the FHLB of Chicago,
and retail repurchase agreements. While maturities and scheduled amortization of
loans and securities are predictable sources of funds, deposit flows and
mortgage prepayments are greatly influenced by general interest rates, economic
conditions, and competition.
The primary investing activities of the Company are the origination of
commercial, residential mortgage and consumer loans and the purchase of
securities. During the nine months ended September 30, 1998 the Company's loan
originations totaled $38.70 million. The Company purchased investment securities
during the nine months ended September 30, 1998 of $32.42 million.
The primary financing activity of the Company is the attraction of deposits and
secured borrowings. During the nine months ended September 30, 1998, the Bank
experienced a net increase in deposits of $12.50 million.
The Company has utilized retail repurchase agreements as a source of funding. At
September 30, 1998, repurchase agreements totaled $13.32 million compared to
$16.40 million at December 31, 1997.
The Company has the ability to borrow additional funds from the FHLB of Chicago
by pledging additional mortgage loans. At September 30, 1998 the Company had an
undrawn borrowing capacity with the FHLB for $40.17 million. At September 30,
1998 the Company had borrowings outstanding from the FHLB of Chicago for $6.95
million. Other sources of liquidity include the sale of securities held in the
available for sale portfolio, federal funds borrowing from nonaffiliated
financial institutions, and a $1.5 million note option with the U.S. Treasury.
The Company's most liquid assets are cash and cash equivalents and federal funds
sold which consist of short-term highly liquid investments with original
maturities of less than three months that are readily convertible to known
amounts of cash and interest-bearing deposits. The level of these assets is
dependent on the Company's operating, financing, and investing activities during
any given period. At September 30, 1998, cash and cash equivalents totaled $8.89
million and federal funds sold totaled $12.00 million.
The Company anticipates that it will have sufficient funds available to meet its
current commitments. At September 30, 1998 the Company had commitments to extend
credit of $35.77 million. Certificates of deposits which are scheduled to mature
in one year or less at September 30, 1998 totaled $40.17 million. Management
believes that a significant portion of such deposits will remain with the
Company.
<PAGE>
NATCOM BANCSHARES, INC. AND SUBSIDIARIES
EXHIBITS AND REPORTS ON FORM 8-K
Item 6
(a) Exhibits
(27) Financial Data Schedule for the period ended September 30, 1998
(b) Reports on Form 8-K
None.
<PAGE>
NATCOM BANCSHARES, INC. AND SUBSIDIARIES
SIGNATURE
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.
NATCOM Bancshares, Inc.
\S\ DANIEL N. WALLIN
- -------------------------------------
Daniel N. Wallin
President
Dated this 16th day of November, 1998.
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FORM THE SEPTEMBER
30, 1998 FORM 10-Q FOR NATCOM BANCSHARES, INC. AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1997
<CASH> 8,888
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 12,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 53,088
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 116,745
<ALLOWANCE> 1,492
<TOTAL-ASSETS> 194,133
<DEPOSITS> 148,198
<SHORT-TERM> 20,880
<LIABILITIES-OTHER> 1,098
<LONG-TERM> 0
0
0
<COMMON> 1
<OTHER-SE> 23,956
<TOTAL-LIABILITIES-AND-EQUITY> 194,133
<INTEREST-LOAN> 8,044
<INTEREST-INVEST> 2,111
<INTEREST-OTHER> 436
<INTEREST-TOTAL> 10,591
<INTEREST-DEPOSIT> 3,699
<INTEREST-EXPENSE> 4,444
<INTEREST-INCOME-NET> 6,147
<LOAN-LOSSES> 45
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,398
<INCOME-PRETAX> 3,381
<INCOME-PRE-EXTRAORDINARY> 2,456
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,456
<EPS-PRIMARY> 34.21
<EPS-DILUTED> 34.21
<YIELD-ACTUAL> 3.9
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,493
<CHARGE-OFFS> 60
<RECOVERIES> 14
<ALLOWANCE-CLOSE> 1,492
<ALLOWANCE-DOMESTIC> 1,492
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 452
</TABLE>
