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 June 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
June 30, 1998 and December 31, 1997
Consolidated Statements of Income
Three Months Ended June 30, 1998 and 1997
Consolidated Statements of Income
Six Months Ended June 30, 1998 and 1997
Consolidated Statement of Stockholders' Equity
Six Months Ended June 30, 1998
Consolidated Statements of Cash Flows
Six Months Ended June 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 5. Other Matters
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>
June 30, December 31,
1998 1997
- -------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Cash and cash equivalents ......................................... $ 10,040 $ 7,816
Federal funds sold ................................................ 6,536 7,720
Available-for-sale securities ..................................... 50,296 49,325
Loans held for sale ............................................... 135 325
Loans, less allowance for loan losses of 1998 $1,484 ; 1997 $1,493 116,535 109,989
Premises and equipment, net ....................................... 1,767 1,786
Other real estate and personal property owned ..................... 1,016 971
Accrued interest receivable and other assets ...................... 2,101 1,863
-------------------
$188,426 $179,795
===================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing ...................................... $ 26,246 $ 22,981
Interest-bearing ......................................... 117,998 112,722
-------------------
Total deposits ........................................ 144,244 135,703
Short-term borrowings ........................................ 19,563 19,913
Accrued interest payable and other liabilities ............... 1,342 1,231
-------------------
Total liabilities ..................................... 165,149 156,847
-------------------
Commitments, Contingencies, and Credit Risk
Stockholders' Equity
Common stock, $0.01 par value; 1,000,000 shares authorized;
issued 1998 71,532 shares, 1997 72,000 shares ............ 1 1
Additional paid-in capital ................................... 3,774 3,799
Retained earnings ............................................ 18,948 18,631
Accumulated other comprehensive income, unrealized gain on
available-for-sale securities, net ....................... 554 517
-------------------
Total stockholders' equity ............................ 23,277 22,948
-------------------
$188,426 $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)
<TABLE>
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
1998 1997 1998 1997
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest Income
Loans ........................................ $ 2,717 $ 2,614 $ 5,322 $ 5,130
Securities ................................... 684 753 1,385 1,553
Federal funds sold and other ................. 74 2 239 42
--------------------------------------------------------
3,475 3,369 6,946 6,725
---------------------------------------------------------
Interest Expense
Deposits ..................................... 1,240 1,206 2,453 2,408
Short-term borrowings ........................ 219 154 459 319
--------------------------------------------------------
1,459 1,360 2,912 2,727
--------------------------------------------------------
Net interest income ...................... 2,016 2,009 4,034 3,998
Provision for Loan Losses ......................... 15 0 30 0
--------------------------------------------------------
Net interest income after
provision for loan losses ............. 2,001 2,009 4,004 3,998
--------------------------------------------------------
Other Income
Service charges and other fees ............... 181 110 351 269
Securities losses, net ....................... 0 0 0 (3)
Other income ................................. 47 24 97 56
--------------------------------------------------------
228 134 448 322
--------------------------------------------------------
Other Expenses
Salaries and employee benefits ............... 650 728 1,300 1,300
Occupancy expenses ........................... 129 131 258 267
Other expenses ............................... 399 273 755 589
--------------------------------------------------------
1,178 1,132 2,313 2,156
--------------------------------------------------------
Income before income taxes ............... 1,051 1,011 2,139 2,164
Income Tax Expense ................................ 312 316 638 625
--------------------------------------------------------
Net income ............................... $ 739 $ 695 $ 1,501 $ 1,539
========================================================
Weighted average shares
outstanding .................................. 71,743 72,000 71,871 72,000
========================================================
Earnings per common share ......................... $ 10.30 $ 9.65 $ 20.88 $ 21.38
========================================================
Dividends per common share ........................ $ 7.00 $ 7.00 $ 14.00 $ 14.00
========================================================
Comprehensive income .............................. $ 783 $ 870 $ 1,538 $ 1,609
========================================================
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
NATCOM BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in 000's of dollars) Six Months
Ended June 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 ....................................... 0 0 762 0 762
Net change in unrealized gain
(loss on available-for-sale
securities, net ............................. 0 0 0 (7) (7)
Cash dividends paid .............................. 0 0 (504) 0 (504)
----------------------------------------------------------------
Balance, March 31, 1998 .......................... 1,800 2,000 18,889 510 23,199
Net income ....................................... 0 0 739 0 739
Net change in unrealized gain
(loss on available-for-sale
securities, net ............................. 0 0 0 44 44
Cash dividends paid .............................. 0 0 (501) 0 (501)
Reorganization and tender offer:
Purchase and retirement of 468
shares of common stock
tendered for cash ....................... (12) (13) (179) 0 (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 0 0 0
----------------------------------------------------------------
Balance, June 30, 1998 ........................... $ 1 $ 3,774 $ 18,948 $ 554 $ 23,277
================================================================
</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>
Six Months Ended
June 30,
--------------------
1998 1997
- --------------------------------------------------------------------------------------
<S> <C> <C>
Cash Flows from Operating Activities
Net income ............................................... $ 1,501 $ 1,539
Adjustments to reconcile net income to cash
provided by operating activities:
Net amortization and accretion of bond
premiums and discounts ............................ 42 2
Securities (gains) losses ............................ 0 14
Provision for loan losses ............................ 30 0
Net (increase) decrease in loans held for sale ....... 190 (54)
Depreciation ......................................... 119 139
Other ................................................ (220) 66
--------------------
Net cash provided by operating activities ......... 1,662 1,706
--------------------
Cash Flows from Investing Activities
Cash flows from available-for-sale securites:
Sales ................................................ 3,354 8,274
Maturities ........................................... 18,366 1,080
Purchases ............................................ (22,649) (5,014)
Net decrease in federal funds sold ....................... 1,184 3,994
Net increase in loans .................................... (6,576) (5,133)
Purchases of bank premises and equipment ................. (99) (29)
--------------------
Net cash used in investing activities ............. (6,420) 3,172
--------------------
Cash Flows from Financing Activities
Net increase (decrease) in deposits ...................... 8,541 (3,692)
Net proceeds from short-term borrowings .................. (350) 613
Retirement of common stock ............................... (204) 0
Cash dividends paid ...................................... (1,005) (1,008)
--------------------
Net cash provided by (used in) financing activities 6,982 (4,087)
--------------------
Decrease in cash and cash equivalents ............. 2,224 791
Cash and cash equivalents:
Beginning ................................................ 7,816 9,294
--------------------
Ending ................................................... $ 10,040 $ 10,085
====================
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
NATCOM BANCSHARES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
June 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:
June 30, 1998 June 30, 1997
------------- -------------
Quarter ending ........................... $71,743 $72,000
Six months ending ........................ 71,871 72,000
Note 3. Regulatory Capital Requirements
At June 30, 1998, the Company meet each of three current minimum regulatory
capital requirements. The following table summarizes the Company's regulatory
capital position at June 30, 1998:
Actual Required
------ --------
Total capital (to risk weighted assets) ...... 17.7% 8.0%
Tier I capital (to risk weighted assets) ..... 16.6% 4.0%
Tier I capital (to average assets) ........... 12.2% 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.
Based on a recent assessment, the Bank determined that it will be required to
upgrade or replace some portions of its software and hardware so that its
computer systems will properly utilize dates beyond December 31, 1999. The Bank
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 Bank.
Based on the review of the computer systems, management does not believe the
cost of remediation will be material to the Bank's financial statements. All
mission critical systems are expected to be Year 2000 compliant by December 31,
1998.
Financial Condition: Total assets increased by $8.63 million, or 4.8%, from
$179.80 million at December 31, 1997, to $188.43 million at June 30, 1998. The
increase was primarily due to an increase in net loans receivable,
available-for-sale securities, and cash and cash equivalents, partially offset
by a decrease in federal funds sold. Cash and cash equivalents totaled $10.04
million at June 30, 1998, an increase of $2.22 million or 28.5% from December
31, 1997. Federal funds sold decreased $1.18 million or 15.3% from $7.72 million
at December 31, 1997 to $6.54 million at June 30, 1998. The available-for-sale
securities portfolio increased $0.97 million, or 2.0% from $49.33 million at
December 31, 1997 to $50.30 million at June 30, 1998. Net loans receivable
increased $6.55 million or 6.0%, from $109.99 million at December 31, 1997 to
$116.54 million at June 30, 1998. This increase was due primarily to an increase
in residential real estate and commercial lending activity.
Deposits increased by $8.54 million, or 6.3%, from $135.70 million at December
31, 1997, to $144.24 million at June 30, 1998.
Borrowings decreased $0.35 million, or 1.8%, from 19.91 million at December 31,
1997, to $19.56 million at June 30, 1998.
Stockholders' equity increased during the six months ended June 30, 1998 by
$0.33 million or 1.4%, from $22.95 million at December 31, 1997, to $23.28
million at June 30, 1998. The increase was primarily a result of net earnings of
$1.50 million, partially offset by a $1.01 million dividend paid on common stock
and a $0.20 million redemption of common stock.
<PAGE>
Net Earnings: Net earnings for the three months ended June 30, 1998, increased
$44,000 or 6.3% from the three months ended June 30, 1997, from $695,000 to
$739,000, respectively. This increase was primarily the result of an increase in
noninterest income, partially offset by an increase in the provision for loan
losses and noninterest expense during the period. Net earnings for the six
months ended June 30, 1998, decreased $38,000 or 2.5% compared to the six months
ended June 30, 1997, from $1.54 million to $1.50 million, respectively. The
decrease was primarily due to and increase in noninterest expense and the
provision for loan losses, partially offset by an increase in noninterest
income.
Net Interest Income: Net interest income increased by $7,000 or 0.4% for the
three months ended June 30, 1998, compared to the three months ended June 30,
1997. The Company increased its average interest earning assets by $10.72
million or 6.6%, due primarily to the increase in leveraged borrowings, while
the net interest margin decreased from 5.0% for the three months ended June 30,
1997 to 4.7% for the three months ended June 30, 1998. Net interest income
increased by $36,000 or 0.9% for the six months ended June 30, 1998, compared to
the six months ended June 30, 1997. The Company increased its average interest
earning assets by $9.65 million or 5.9%, due primarily to the increase in
leveraged borrowings, while the net interest margin decreased from 4.8% for the
six months ended June 30, 1997 to 4.6% for the six months ended June 30, 1998
Interest Income: Interest income increased by $106,000 or 3.2% from $3.37
million for the three months ended JUNE 30, 1997 to $3.48 million for the three
months ended June 30, 1998. The increase in interest income is primarily a
result of a $10.72 million increase in average interest earning assets,
partially offset by a 27 basis point decrease in the average yield on interest
earning assets between periods. Interest income increased by $221,000 or 3.3%
from $6.73 million for the six months ended June 30, 1997 to $6.95 million for
the six months ended June 30, 1998. The increase in interest income is primarily
a result of a $9.65 million increase in average interest earning assets,
partially offset by a 16 basis point decrease in the average yield on interest
earning assets between periods.
Interest Expense: Interest expense increased by $99,000 or 7.3% from $1.36
million for the three months ended June 30, 1997 to $1.46 million for the three
months ended June 30, 1998. The increase in interest expense is primarily a
result of a decrease in the average cost of interest bearing liabilities from
4.0% for the three months ended June 30, 1997 to 4.4% for the three months ended
June 30, 1998, partially offset by a $2.98 million decrease in average interest
bearing liabilities between periods. Interest expense increased by $185,000 or
6.8% from $2.73 million for the six months ended June 30, 1997 to $2.91 million
for the six months ended June 30, 1998. The increase in interest expense is
primarily a result of a $1.37 million increase in average interest bearing
liabilities along with an increase in the average cost of interest bearing
liabilities from 4.1% for the six months ended June 30, 1997 to 4.3% for the six
months ended June 30, 1998.
Provision for Loan Losses: The Bank's provision for loan losses increased
$15,000 for the three months ended June 30, 1998 over the three months ended
June 30, 1997. The Bank's provision for loan losses increased $30,000 for the
six months ended June 30, 1998 over the six months ended June 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 increased by $94,000 or 70.2% from
$134,000 for the three months ended June 30, 1997 to $228,000 for the three
months ended June 30, 1998. This increase was primarily due to a $71,000
increase in fees and service charges and a $23,000 increase in other non
interest income. Total noninterest income increased by $126,000 or 39.1% from
$322,000 for the six months ended June 30, 1997 to $448,000 for the six months
ended June 30, 1998. This increase was primarily due to an $82,000 increase in
fees and service charges, a $3,000 decrease in net losses on the sale of
securities, and a $41,000 increase in other non interest income.
<PAGE>
Noninterest Expense: Total noninterest expense increased by $46,000 or 4.1% from
$1.13 million for the three months ended June 30, 1997 to $1.18 million for the
three months ended June 30, 1998. This increase was primarily for the following
reasons: (i) a $78,000 decrease in compensation and employee benefits, due to a
change in the timing of recognizing incentive compensation in fiscal 1998
compared to 1997, (ii) a $2,000 decrease in occupancy expense and (iii) a
$126,000 increase in various other noninterest expense categories. Total
noninterest expense increased by $157,000 or 7.3% from $2.16 million for the six
months ended June 30, 1997 to $2.31 million for the six months ended June 30,
1998. This increase was primarily a $166,000 increase in various other
noninterest expense categories, partially offset by a $9,000 decrease in
occupancy expenses.
Income Tax Expense: Income tax expense decreased by $4,000 or 1.3% from $316,000
for the three months ended June 30, 1997 to $312,000 for the three months ended
June 30, 1998. Income tax expense increased by $13,000 or 2.1% from $625,000 for
the six months ended June 30, 1997 to $638,000 for the six months ended June 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 six months ended June 30, 1998 the Company's loan
originations totaled $24.5 million. The Company purchased investment securities
during the six months ended June 30, 1998 of $22.65 million.
The primary financing activity of the Company is the attraction of deposits and
secured borrowings. During the six months ended June 30, 1998, the Bank
experienced a net increase in deposits of $8.54 million.
The Company has utilized retail repurchase agreements as a source of funding. At
June 30, 1998, repurchase agreements totaled $11.07 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 June 30, 1998 the Company had an
undrawn borrowing capacity with the FHLB for $14.12 million. At June 30, 1998
the Company had borrowings outstanding from the FHLB of Chicago for $7.00
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 June 30, 1998, cash and cash equivalents totaled $10.04
million and federal funds sold totaled $6.54 million.
The Company anticipates that it will have sufficient funds available to meet its
current commitments. At June 30, 1998 the Company had commitments to extend
credit of $32.67 million. Certificates of deposits which are scheduled to mature
in one year or less at June 30, 1998 totaled $41.27 million. Management believes
that a significant portion of such deposits will remain with the Company.
<PAGE>
NATCOM BANCSHARES, INC. AND SUBSIDIARIES
OTHER INFORMATION
Item 5
At a Special Meeting of the shareholders of National Bank of Commerce in
Superior ("Bank") held on May 11, 1998, the shareholders approved the Agreement
and Plan of Merger dated as of January 27, 1998 ("Merger Agreement") by and
among NATCOM Bancshares, Inc. ("Holding Company"), the Bank and National Interim
Bank of Commerce in Superior whereby (i) National Bank of Commerce in Superior,
as the national bank resulting from the merger under the Merger Agreement,
became a wholly-owned subsidiary of the Holding Company and (ii) shareholders of
the Bank became shareholders of the Holding Company. Of the 72,000 outstanding
shares of common stock of the Bank (which is the only capital stock of the
Bank), 60,773 shares were voted in favor of, 664 shares were voted against, and
680 shares abstained from voting on, the Merger. There were no broker non-votes.
The merger became effective on June 1, 1998.
<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 June 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 14th day of August, 1998.
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFROMATION EXTRACTED FROM THE JUNE 30,
1998 10-Q OF NATCOM BANCSHARES, INC. AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 10,040
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 6,536
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 50,296
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 118,019
<ALLOWANCE> 1,484
<TOTAL-ASSETS> 188,426
<DEPOSITS> 144,244
<SHORT-TERM> 19,563
<LIABILITIES-OTHER> 1,342
<LONG-TERM> 0
0
0
<COMMON> 1
<OTHER-SE> 23,276
<TOTAL-LIABILITIES-AND-EQUITY> 188,426
<INTEREST-LOAN> 5,322
<INTEREST-INVEST> 1,385
<INTEREST-OTHER> 239
<INTEREST-TOTAL> 6,946
<INTEREST-DEPOSIT> 2,453
<INTEREST-EXPENSE> 2,912
<INTEREST-INCOME-NET> 4,034
<LOAN-LOSSES> 30
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,313
<INCOME-PRETAX> 2,139
<INCOME-PRE-EXTRAORDINARY> 1,501
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,501
<EPS-PRIMARY> 20.88
<EPS-DILUTED> 20.88
<YIELD-ACTUAL> 4.64
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,493
<CHARGE-OFFS> 48
<RECOVERIES> 9
<ALLOWANCE-CLOSE> 1,484
<ALLOWANCE-DOMESTIC> 1,484
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 531
</TABLE>
