<PAGE> 1
FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1999
OR
[ ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to
---------------- -------------
Commission File No. 0-25079
MICHIGAN COMMUNITY BANCORP LIMITED
(Exact name of registrant as specified in its charter)
MICHIGAN 38-3390193
(State of incorporation) (I.R.S. Employer Identification No.)
43850 SCHOENHERR ROAD
STERLING HEIGHTS, MI 48313
(Address of principal executive offices)
(810) 532-8000
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 the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such report(s), and (2) has been subject to such filing
requirements for the past 90 days.
Yes x No
--- ---
As of June 30 1999, the Registrant had 665,000 shares of Common Stock issued and
outstanding.
Transitional Small Business Disclosure Format (check one)
Yes: No: X
----- -----
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Michigan Community Bancorp Limited (the "Company" or "MCB") completed an initial
public offering of its Common Stock In December 1998 raising $9,975,000 of gross
proceeds before fees and expenses. The total offering consisted of 665,000
shares which were priced at $15 per share. The net proceeds to the Company after
deducting for underwriting fees were $9.2 million. The consolidated financial
statements of the Company include its subsidiary banks, Lakeside Community Bank
(LCB) and North Oakland Community Bank (NOCB). All adjustments, which, in the
opinion of management, are necessary in order to ensure the financial statements
are not misleading, have been included.
<PAGE> 3
MICHIGAN COMMUNITY BANCORP LIMITED
CONSOLIDATED BALANCE SHEET
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
(IN THOUSANDS)
6/30/99 12/31/98
-------- --------
Assets
<S> <C> <C>
Cash & cash equivalents:
Cash & due from banks $ 1,955 $ 67
Federal funds sold 6,000 7,839
-------- --------
Cash and cash equivalents 7,955 7,906
Securities Available for Sale (Note 2) 1,980 --
Loans: (Note 3)
Loans, gross 21,170 --
Less: allowance for loan losses 360 --
-------- --------
Net loans 20,810 --
Premises and equipment- Net 1,633 222
Other assets 543 835
-------- --------
Total assets $ 32,921 $ 8,963
======== ========
Liabilities and Stockholders' Equity
Liabilites
Deposits: (Note 4)
Non-Interest Bearing Demand Deposits $ 3,224 $ --
Interest Bearing Demand Deposits 4,074 --
Savings Deposits 831 --
Time Deposits 17,083 --
-------- --------
Total deposits 25,212 --
Other liabilites 188 318
-------- --------
Total liabilites 25,400 318
Shareholders Equity
Preferred stock, no par value, 1,000,000
shares authorized, none issued -- --
Common stock -$5 stated value
authorized - 9,000,000 shares
issued and outstanding - 665,000 shares 3,325 3,325
Capital surplus 5,880 5,880
Accumulated deficit (1,677) (560)
Accumulated Other Comprehensive, Net of (7) --
Tax of $(4)
-------- --------
Total stockholders' equity 7,521 8,645
-------- --------
Total liabilites and stockholders' equity $ 32,921 $ 8,963
======== ========
</TABLE>
<PAGE> 4
MICHIGAN COMMUNITY BANCORP LIMITED
CONSOLIDATED STATEMENT OF EARNINGS
JANUARY 1, 1999 TO JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
(IN THOUSANDS)
3 MONTH ENDED YEAR-TO-DATE
6/30/99 6/30/99
------------- ------------
Interest Income:
<S> <C> <C>
Interest & Fee on Loans $ 302 $ 352
Interest on Investment Securities: 14 14
U.S. Government Securities
Interest on Federal Funds Sold 146 242
--------- ---------
Total Interest Income 462 608
Interest Expense:
Interest on Demand Deposits 28 35
Interest on Savings Deposits 3 5
Interest on Time Deposits 180 209
--------- ---------
Total Interest Expense 211 249
--------- ---------
Net interest income before allowance for loan losses 251 359
Less allowance for loan losses 108 360
--------- ---------
Net interest income after allowance for loan losses 143 (1)
Other income 8 24
Other operating expenses:
Salaries and employee benefits 298 676
Occupancy 57 118
Equipment expense 60 94
Advertising 10 42
Miscellaneous 116 210
--------- ---------
Total other operating expense 541 1,140
--------- ---------
Loss - Before income taxes (390) (1,117)
Provision for income taxes -- --
--------- ---------
Net loss $ (390) $ (1,117)
========= =========
Number of shares outstanding 665,000 665,000
========= =========
Net loss per share $ (0.59) $ (1.68)
========= =========
</TABLE>
<PAGE> 5
MICHIGAN COMMUNITY BANCORP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
JANUARY 28, 1998 TO JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
ACCUMULATED
OTHER TOTAL
COMMON CAPITAL ACCUMULATED COMPREHENSIVE STOCKHOLDERS'
STOCK SURPLUS DEFICIT INCOME EQUITY
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
BALANCE - JANUARY 28, 1998 - INCEPTION $ -- $ -- $ -- $ -- $ --
Public Stock Offering 3,325 6,102 -- -- 9,427
Cost of Stock Offering -- (222) -- -- (222)
Net Loss -- -- (560) -- (560)
------- ------- ------- ------- -------
BALANCE - DECEMBER 31, 1998 3,325 5,880 (560) -- 8,645
Comprehensive Income:
Net loss -- -- (1,117) (1,117)
Change in Unrealized Loss on Securities (7) (7)
Available for Sale, Net of Re-classification
Adjustment and Tax Effect of $(4)
------- ------- ------- ------- -------
Total Comprehensive Income -- -- (1,117) (7) (1,124)
------- ------- ------- ------- -------
June 30, 1999 $ 3,325 $ 5,880 $(1,677) $ (7) $ 7,521
======= ======= ======= ======= =======
</TABLE>
<PAGE> 6
MICHIGAN COMMUNITY BANCORP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOW
JANUARY 1, 1999 TO JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Operating activities:
Net loss ($ 1,117)
Adjustments to reconcile net loss to net cash
provided in operating activites
Provision for loan loss 360
Depreciation 57
Accretion of Securities
(Increase) Decrease in Interest Receivable & other assets 295
(Increase) Decrease in Interest Payable & other Liabilities (130)
--------
Net cash used in operating activities (535)
Investing activities:
Increase in gross loans (21,170)
Additions to premises and equipment (1,468)
Purchase of Available for Sale Securities (1,990)
--------
Net cash used in investing activities (24,628)
Cash flows from financing activities:
Net increase (decrease) in interest-bearing and non-interest
Bearing Demand Accounts 7,298
Net increase (decrease) in savings and time deposits 17,914
--------
Net cash provided by financing activities 25,212
Net increase in cash and cash equivalents 49
Cash and cash equivalents - December 31, 1998 7,906
--------
Cash and cash equivalents - June 30, 1999 $ 7,955
========
Cash paid for interest $ 142
========
</TABLE>
<PAGE> 7
MICHIGAN COMMUNITY BANCORP LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1999
(UNAUDITED)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of Michigan Community Bancorp
Limited (the "Company") conform to generally accepted accounting
principles. Management is required to make estimates and assumptions
that affect the amounts reported in the consolidated financial
statements and accompanying notes. Actual results could differ from
these estimates and assumptions.
NATURE OF OPERATIONS - Michigan Community Bancorp Limited was
incorporated on January 28, 1998 as a bank holding company to establish
and operate two new banks, Lakeside Community Bank (LCB) in Sterling
Heights, Michigan and North Oakland Community Bank (NOCB) in Rochester
Hills, Michigan. In December 1998, the Company completed an initial
public offering for the sale of 665,000 shares of common stock, raising
$9.4 million, net of offering costs. LCB and NOCB commenced operations
in January 1999.
PRINCIPLES OF CONSOLIDATION - The consolidated financial statements
include the accounts of Michigan Community Bancorp Limited (the
"Corporation") and its wholly owned subsidiaries, Lakeside Community
Bank and North Oakland Community Bank (the "Banks"). The tabular
presentations omit 000's.
SECURITIES - Securities for which the Corporation has both the positive
intent and ability to hold to maturity are classified as
"held-to-maturity." Those securities are recorded at cost, adjusted for
accumulated amortization of premium and accretion of discount. Realized
gains and losses on sales of held to maturity securities, while rare,
will be included in net securities gains based on the adjusted cost of
the specific item sold. At June 30, 1999 there are no securities
classified as held to maturity.
When securities are purchased and the Corporation intends to hold the
securities for an indefinite period of time, but not necessarily to
maturity, they are classified as "available for sale" and recorded at
market value. Any decision to sell a security available for sale will
be based on various factors, including significant movements in
interest rates, changes in the maturity mix of the Corporation's assets
and liabilities, liquidity demands, regulatory capital considerations
and other similar factors. Cost is adjusted for amortization of
premiums and accretion of discounts to maturity or, for mortgage-backed
securities, over the estimated life of the security. Unrealized gains
and losses for available-for-sale securities will be excluded from
earnings and recorded as an amount, net of tax, as a component of
comprehensive income in stockholders' equity.
<PAGE> 8
MICHIGAN COMMUNITY BANCORP LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1999
(UNAUDITED)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
INTEREST INCOME ON LOANS - Interest on loans is accrued and credited to
income based on the principal amount outstanding. The accrual of
interest on loans is discontinued when, in the opinion of management,
there is an indication that the borrower may be unable to meet payments
as they become due. Upon such discontinuance, all unpaid interest
accrued during the current year is reversed. Interest accruals are
generally resumed when all delinquent principal and/or interest has
been brought current, and in the opinion of management, the borrower
has demonstrated the ability to meet the terms and conditions of the
agreement.
LOANS AND RESERVE FOR POSSIBLE LOAN LOSSES - The reserve for possible
loan losses is established through a provision for possible loan losses
charged to expense. Loans are charged against the reserve for possible
loan losses when management believes collection of the principal is
unlikely. The reserve for possible loan losses is an amount management
believes will be adequate to absorb losses inherent in existing loans
based on evaluations of the anticipated repayment and prior loss
experience. The evaluations take into consideration such factors as
changes in the nature, volume and quality of the portfolio, loan
concentrations, specific problem loans and current and anticipated
economic conditions that may affect the borrowers' ability to pay.
PREMISES AND EQUIPMENT - Premises and equipment are stated at cost.
Depreciation is computed on the straight-line method and charged to
operations over the estimated useful lives of the properties.
INCOME TAXES - The Corporation files a consolidated federal income tax
return. The Corporation uses the asset and liability method of
accounting for income taxes. Current taxes are measured by applying the
provisions of enacted tax laws to taxable income to determine the
amount of taxes receivable or payable. Deferred tax assets and
liabilities are recorded based on the difference between the tax bases
of assets and liabilities and their carrying amounts for financial
reporting purposes.
OTHER COMPREHENSIVE INCOME - Accounting principles generally require
that recognized revenue, expenses, gains and losses be included in net
income. Certain changes in assets and liabilities, however, such as
unrealized gains and losses on available-for-sale securities, are
reported as a direct adjustment of the equity section of the balance
sheet. Such items, along with net income, are components of
comprehensive income. The only item included in "accumulated other
comprehensive income" at June 30, 1999 is the net unrealized gains and
losses on available-for-sale securities.
OFFERING COSTS - Costs related to the offering of common stock have
been netted against the offering proceeds from the sale of the
Company's stock.
EARNINGS PER SHARE - Basic earnings per share is based on the weighted
average number of shares outstanding during the period.
<PAGE> 9
MICHIGAN COMMUNITY BANCORP LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1999
(UNAUDITED)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
STOCK OPTIONS - The Company has two stock option plans. Options
granted to directors and key employees under both plans are accounted
for using the intrinsic value method, under which compensation expense
is recorded at the amount by which the market price of the underlying
stock at grant date exceeds the exercise price of an option. Under the
Company's plans, the exercise price on all options granted equals or
exceeds the fair value of the stock at the grant date. Accordingly, no
compensation cost is recorded as a result of stock option awards under
the plan.
NOTE 2 - SECURITIES
The amortized cost and estimated market value of securities available
for sale are as follows:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Estimated
Cost Gains Losses Market Value
---------------- ---------------- --------------- -----------------
<S> <C> <C> <C> <C>
U.S. Treasury securities and
obligations of U.S. government
corporations and agencies $ 1,990 $ -- $ 10 $ 1,980
================ ================ =============== =================
</TABLE>
The amortized cost and estimated market value of securities available
for sale at June 30, 1999, by contractual maturity, are shown below.
Expected maturities will differ from contractual maturity because
issuers have the right to call or prepay obligations with or without
call or prepayment penalties:
<TABLE>
<CAPTION>
Amortized Estimated
Cost Market Value
---------------- ----------------
<S> <C> <C>
Due after one year but within five years $ 1,990 $ 1,980
================ ================
</TABLE>
At June 30, 1999, U.S. government securities carried at $1,980 with a
market value of $1,980, were pledged to secure public deposits and for
other purposes required by law.
Other than securities of the U.S. government, there were no investment
securities of any one issuer aggregating 10 percent of consolidated
stockholders' equity at June 30, 1999.
<PAGE> 10
MICHIGAN COMMUNITY BANCORP LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1999
(UNAUDITED)
NOTE 3 - LOANS
Major classifications of loans are summarized as follows:
<TABLE>
<CAPTION>
June 30, 1999
-------------
<S> <C>
Commercial $17,449
Real estate mortgage 1,250
Installment 2,471
Construction --
-------
Total Loans 21,170
Less reserve for possible loan losses 360
-------
Net Loans $20,810
=======
</TABLE>
At June 30, 1999, approximately $2.2 million of loans were outstanding
to officers, bank directors, principal stockholders and their
associated companies. In the opinion of the Bank Boards, such loans
were made on the same terms and conditions as those to other borrowers
and did not involve more than the normal risk of collectibility.
At June 30, 1999, the Company had a loan concentration of $3.9 million
in non-residential building operators and single-family housing
construction. Management does not feel that the borrowers will be
similarily impacted by economic or other activities.
ALLOCATION OF THE RESERVE FOR LOAN LOSS
At June 30, 1999 there were no non-accrual loans, no loans greater than
30 days past due, and no watch loans.
Transactions in the reserve for possible loan losses were as follows:
<TABLE>
<S> <C>
Balance - Beginning of year $ --
Provision charged to operations 360
loans charged off --
Recoveries --
-------
Balance - June 30, 1999 $ 360
=======
Reserve as a percentage of total loans 1.70%
=======
</TABLE>
<PAGE> 11
MICHIGAN COMMUNITY BANCORP LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1999
(UNAUDITED)
NOTE 4 - CERTIFICATES OF DEPOSIT
The aggregate amount of certificates of deposit in denominations in
excess of $100,000 totaled approximately $8 million at June 30, 1999.
The interest expense related to such deposits throughout the year was
approximately $217,500, which is included in interest on time deposits
in the accompanying consolidated statement of income.
NOTE 5 - OPERATING LEASE
The Company has entered into an assignment of a lease for a building to
be utilized for NOCB's branch operations. The assignment required the
prepayment of the lease totaling $250,000 and an on going monthly
rental payment of $600. The prepayment of rent will be expensed over
the lease assignment term that expires on December 31, 2004.
The Company has entered into a lease for a building to be utilized for
LCB's branch operations and the Company's headquarters. During the
first five year period , the lease requires a $8,392 monthly payment. A
credit of $4,196 for the first sixteen months will be given for tenant
improvements. The last five year period of the lease requires a $8,890
monthly payment. The lease expires December 1, 2008.
The annual future minimum lease payments required under these
non-cancelable operating leases as of March 31, 1999 are as follows:
<TABLE>
<S> <C>
1999 $ 33,549
2000 95,316
2001 107,904
2002 107,904
2003 108,402
thereafter 535,310
----------------
Total $ 988,385
================
</TABLE>
<PAGE> 12
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION
Forward - looking statements
The following discussion contains forward-looking statements that involve
substantial risks and uncertainties. These forward - looking statements can be
identified by the use of the words "anticipate" , "believe", "estimate",
"expect", "plan", and similar expressions. They are not guarantees of future
performance and involve certain risks, uncertainties and assumptions that are
difficult to predict with regard to timing, extent, likeliness and degree of
occurrence. Various factors , including regional and national economic
conditions, substantial changes in levels of market interest rates, credit and
other risks of lending and investment activities and competitive and regulatory
factors could affect the Company's financial performance and could cause the
Company's actual results for future periods to differ materially from those
anticipated or projected. A list of the material risks of the Company may be
found under the caption "Factors That May Effect Our Future Results" in the
Company's Annual Report on Form 10-K for the fiscal year ended December 31,
1998.
(A) PLAN OF OPERATION
ORGANIZATION
The Company was incorporated in 1998 as a bank holding company. The Company
operates two wholly owned subsidiary banks, Lakeside Community Bank (LCB) and
North Oakland Community Bank (NOCB) (collectively the "Banks"). LCB and NOCB are
organized as Michigan banking corporations with depository accounts insured by
the Bank Insurance Fund of the Federal Deposit Insurance Corporation. LCB and
NOCB provide a range of commercial and consumer banking services primarily in
the northern communities of Macomb and Oakland Counties.
MARKET AREA
LCB is located on Schoenherr Road in a rapidly growing area of Macomb County.
NOCB is located on Rochester Road and occupies a renovated former bank building
in a rapidly growing area of Oakland County . The communities that comprise the
Company's primary service area include Sterling Heights, Macomb, Rochester and
Rochester Hills. Management believes these communities have an expanding and
diverse economic base, which includes a wide range of small to medium-sized
businesses engaged in manufacturing, construction, and retail.
BANK LINES OF BUSINESS
The Banks' core business activities include attracting deposits from the general
public and using such deposits along with equity capital to originate commercial
loans. The Banks also offer installment and home equity loans to consumers. The
Banks' results of operations are dependent primarily upon net interest income,
which is the difference between interest income from interest earning assets and
interest expense on interest bearing liabilities. Results of operation may be
positively influenced by non-interest income such as fees related to loan
origination and service charges associated with customer deposit accounts which
includes a full array of demand deposit accounts, money market demand accounts,
NOW accounts, savings accounts, individual retirement accounts, certificates of
deposit, and ATM cards.
<PAGE> 13
CASH REQUIREMENTS
During a recent examination by banking industry regulators, MCB was notified
that the Company, LCB and NOCB had potentially violated section 23A and 23B of
the Federal Reserve Act which restricts the nature and extent of transactions
among affiliate banks. In order to become compliant with Section 23A and 23B,
MCB is considering the need for additional equity financing. MCB expects to
complete any such equity financing by the end of the quarter ending September
30, 1999. Amounts being repaid by the Holding Company will include interest at
the Banks' prime lending rate.
NUMBER OF EMPLOYEES
At June 30, 1999 the Company and the Banks' employed 21 people on a full time
basis, and one person on a part time basis. Over the next twelve months, MCB
expects to increase its staffing levels to respond to growth opportunities and
market requirements.
(B) MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Total assets at June 30, 1999 were $32.9 million as compared to $17.8 million at
March 31, 1999. The increase in total assets was funded by a $15.6 million
dollar increase in deposits. Total net loss year to date June 30, 1999 was $1.1
million. A portion of the loss can be attributed to the volume of funds invested
in low interest federal funds sold, in anticipation of the commercial loans
committed to, but as of June 30, 1999 not funded.
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY; INTEREST RATES AND
INTEREST DIFFERENTIAL
Net interest income, the primary component of earnings, represents the
difference between interest income on interest-earning assets and the interest
expense of interest-bearing liabilities. Net interest income depends upon the
volume of interest-earning assets and interest-bearing liabilities and the rates
earned or paid on them. This table presents the daily average balances for the
major asset and liability categories and the related interest income and expense
and interest rates for the periods:
<PAGE> 14
<TABLE>
<CAPTION>
Three Months Ended June 30, 1999 Six Months Ended June 30, 1999
Average Average
Interest Rate Interest Rate
Average Income/ Earned/ Average Income/ Earned/
Balance Expense Paid Balance Expenses Paid
------- ------- ------- ------- ------- -------
(Annualized) (Annualized)
Assets (in thousands)
<S> <C> <C> <C> <C> <C> <C>
Federal funds sold 12,378 146 4.73 10,322 242 4.73
Securities 809 10 4.96 407 10 4.95
Loans 11,157 302 10.86 6,436 352 11.03
Purchased CDs 363 4 4.42 182 4 4.43
------- ------- ------- ------- ------- -------
Total Earning Assets/Total Interest 24,707 462 7.50 17,347 608 7.07
Income
Cash and due from banks 997 831
All other assets 1,749 1,648
------- -------
Total Assets 27,453 19,826
======= =======
Liablities and Stockholder's Equity
NOW and money market accounts 2,960 28 3.79 1,764 35 4.00
Savings deposits 538 3 2.24 366 5 2.75
Time Deposits 13,908 180 5.19 8,200 209 5.14
------- ------- ------- ------- ------- -------
Total Interest Bearing Liablities/Total 17,406 211 4.86 10,330 249 4.86
Interest Expense
Noninterest bearing demand deposits 2,062 1,318
All other liablities 226 193
Stockholder's equity 7,759 7,985
------- -------
Total Liabilities and Stockholder's
Equity 27,453 19,826
======= =======
Net Interest Income 251 359
------- -------
Net Interest Margin (Net Interest
Income/Total Earning Assets) 4.07 4.17
------- -------
</TABLE>
<PAGE> 15
The following table shows the rate sensitivity of the Corporation's interest
earning assets and interest bearing liabilities as of June 30, 1999. This table
displays the interest rate sensitivity gap (i.e., interest rate sensitive assets
less interest rate sensitive liabilities), cumulative interest rate sensitivity
gap. For the purposes of this table, an asset or liability is considered rate
sensitive within a specified period when it matures or could be repriced within
such period, generally according to its contractual terms.
<TABLE>
<CAPTION>
After Three After One
Within Months But Year But After
Three Within One Within Five
Months Year Five Years Years Total
(in thousands)
<S> <C> <C> <C> <C> <C>
Interest Earning Assets
Federal funds sold 6,000 -- -- -- 6,000
Securities (1) -- -- 1,980 -- 1,980
Loans 8,486 2,247 8,136 2,299 21,168
------ ------ ------ ------ ------
Total 14,486 2,247 10,116 2,299 29,148
====== ====== ====== ====== ======
Interest Bearing Liabilities
NOW and money market
accounts 2,345 225 1,200 305 4,075
Savings deposits 30 90 480 232 832
Jumbo time deposits/
Time deposits less than $100,000 8,550 9,444 89 -- 18,083
------ ------ ------ ------ ------
Total 10,925 9,759 1,769 537 22,990
====== ====== ====== ====== ======
(1) Securities in the "available for sale"
category are reported in this table at fair value.
Interest rate sensitivity gap 3,561 (7,512) 8,347 1,762 6,158
Cumulative interest rate
sensitivity gap 3,561 (3,951) 4,396 6,158 6,158
</TABLE>
The Corporation is asset sensitive, a decrease in market interest rates will
adversely affect net interest income.
The preceding table indicates the time periods in which interest earning assets
and interest bearing liabilities will mature or may be repriced, generally
according to their contractual terms. However, this
<PAGE> 16
table does not necessarily indicate the impact that general interest rate
movements would have on the Corporation's net interest yield, because the
repricing of various categories of assets and liabilities is discretionary and
is subject to competitive and other pressures. As a result, various assets and
liabilities indicated as repricing within the same period may, in fact, reprice
at different times and by different increments.
PART II.
OTHER INFORMATION
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a.) Exhibits
Exhibit Description
------- -----------
27 Financial Data Schedule (EDGAR filing only)
(b) Reports on Form 8-K
No reports on form 8-K have been filed during the quarter for which
this report is filed.
SIGNATURES
In accordance with the requirements of the Exchange Act the registrant caused
this report to be signed on its behalf by the undersigned, there unto duly
organized.
August 13, 1999.
Michigan Community Bancorp Limited
By: /s/ David A. McKinnon
-------------------------------------------
David A. McKinnon, President and Chief
Executive Officer
By: /s/ William L. Carley
------------------------------------------
William L. Carley, Vice President and
Chief Financial Officer
<PAGE> 17
EXHIBIT INDEX
Exhibit Description
- ------- -----------
27 Financial Data Schedule (EDGAR filing only)
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> APR-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 955
<INT-BEARING-DEPOSITS> 1,000
<FED-FUNDS-SOLD> 6,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 1,980
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 21,170
<ALLOWANCE> 360
<TOTAL-ASSETS> 32,921
<DEPOSITS> 25,212
<SHORT-TERM> 0
<LIABILITIES-OTHER> 188
<LONG-TERM> 0
0
0
<COMMON> 3,325
<OTHER-SE> 4,196
<TOTAL-LIABILITIES-AND-EQUITY> 32,927
<INTEREST-LOAN> 302
<INTEREST-INVEST> 14
<INTEREST-OTHER> 154
<INTEREST-TOTAL> 470
<INTEREST-DEPOSIT> 211
<INTEREST-EXPENSE> 211
<INTEREST-INCOME-NET> 259
<LOAN-LOSSES> 108
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 541
<INCOME-PRETAX> (390)
<INCOME-PRE-EXTRAORDINARY> (390)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (390)
<EPS-BASIC> (.59)
<EPS-DILUTED> 0
<YIELD-ACTUAL> 4.07
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 0
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 0
<ALLOWANCE-DOMESTIC> 360
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
