<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934 for the quarterly period ended December 31, 1999
|_| TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE ACT For the
transition period from ___________ to________________
Commission File Number: 001-15215
SPECTRUM BANCORPORATION, INC.
(Exact name of registrant as specified in its charter)
Iowa 42-0867112
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
10834 Old Mill Road, Suite One, Omaha, NE
(Address of principal executive office) (Zip code)
(402) 333-8330
(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 past 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for past 90 days. Yes |X| No |_|
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practical date.
Class Outstanding at February 11, 2000
- -------------------------- --------------------------
Common Stock, $1.00 par value 71,607
1
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SPECTRUM BANCORPORATION, INC.
INDEX TO 10-Q FOR THE QUARTERLY
PERIOD ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
PART I: FINANCIAL INFORMATION PAGE
<S> <C>
ITEM 1: FINANCIAL STATEMENTS........................................3
Consolidated Balance Sheets at December 31, 1999 (unaudited)
and June 30, 1999............................. ..................3
Consolidated Statements of Income - Three months
ended December 31, 1999 and December 31, 1998
(unaudited)......................................................4
Consolidated Statements of Income - Six months
ended December 31, 1999 and December 31, 1998
(unaudited)......................................................5
Consolidated Statements of Cash Flows - Six months ended
December 31, 1999 and December 31, 1998 (unaudited) .............6
Notes to Consolidated Financial Statements.......................7
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS..................................................8
ITEM 3: Quantitative and Qualitative Disclosures about Market Risk.10
PART II: OTHER INFORMATION
ITEM 1: LEGAL PROCEEDINGS..........................................11
ITEM 2: CHANGES IN SECURITIES AND USE OF PROCEEDS..................11
ITEM 3: DEFAULTS UPON SENIOR SECURITIES............................11
ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS....................................................11
ITEM 5: OTHER INFORMATION..........................................11
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K...........................11
SIGNATURES.................................................11
</TABLE>
2
<PAGE>
PART I
FINANCIAL INFORMATION
SPECTRUM BANCORPORATION, INC.
Consolidated Balance Sheets
(In thousands except share data)
(unaudited)
<TABLE>
<CAPTION>
December 31, June 30,
1999 1999
------------------- -------------------
Assets
<S> <C> <C>
Cash and due from banks $20,359 $18,389
Federal funds sold 29,223 7,255
------------------- -------------------
Total cash and cash equivalents 49,582 25,644
------------------- -------------------
Securities available for sale 97,903 91,932
Loans receivable, net 493,059 466,970
Premises and equipment, net 14,648 12,668
Other assets 15,075 13,956
------------------- -------------------
$670,267 $611,170
=================== ===================
Liabilities and Stockholders' Equity
Liabilities:
Deposits
Non interest bearing $54,906 $49,934
Interest bearing 481,972 456,975
------------------- -------------------
TOTAL DEPOSITS 536,878 506,909
Federal funds purchased and securities sold
under agreements to repurchase 28,734 19,777
Notes payable 36,050 39,024
Company obligated mandatorily redeemable preferred securities of subsidiary
trust holding solely junior subordinated
debentures 20,400 0
Accrued interest and other liabilities 6,248 6,243
------------------- -------------------
628,310 571,953
------------------- -------------------
Minority interest in subsidiaries 2,133 2,020
------------------- -------------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $100 par value; 500,000 shares
authorized; issued and outstanding: 9,000
shares of 8% cumulative, nonvoting; 8,000
shares of 10% noncumulative, nonvoting 1,700 1,700
Common stock, $1.00 par value, authorized
1,000,000 shares, issued and outstanding:
71,607 and 71,607 shares, respectively 72 72
Additional paid in capital 1,654 1,654
Retained earnings 37,962 34,276
Accumulated and other comprehensive income
(loss) (1,564) (505)
------------------- -------------------
Total stockholders' equity 39,824 37,197
------------------- -------------------
$670,267 $611,170
=================== ===================
</TABLE>
See Notes to Consolidated Financial Statements.
3
<PAGE>
SPECTRUM BANCORPORATION, INC.
Consolidated Statements of Income
For The Three Months Ended
(In thousands, except share and per share data)
(unaudited)
<TABLE>
<CAPTION>
December 31, December 31,
1999 1998
-------------------- --------------------
<C> <C> <C>
Interest income on:
Loans receivable $10,820 $9,318
Securities 1,407 1,594
Federal funds sold and other 414 426
-------------------- --------------------
12,641 11,338
-------------------- --------------------
Interest expense on:
Deposits 5,395 5,044
Borrowings 1,286 845
-------------------- --------------------
6,681 5,889
-------------------- --------------------
Net interest income 5,960 5,449
Provision for loan losses 253 279
-------------------- --------------------
Net interest income after provision for loan
Losses 5,707 5,170
-------------------- --------------------
Other income:
Service charges and other fees 1,665 1,554
Other 75 116
-------------------- --------------------
1,740 1,670
-------------------- --------------------
Other expenses:
Salaries and employee benefits 2,183 2,138
Occupancy expense, net 489 527
Data processing 254 267
Other operating expenses 1,403 1,309
-------------------- --------------------
4,329 4,241
-------------------- --------------------
INCOME BEFORE INCOME TAXES AND MINORITY
INTEREST IN NET INCOME OF SUBSIDIARIES 3,118 2,599
Income tax expense 1,138 914
-------------------- --------------------
INCOME BEFORE MINORITY INTEREST IN NET
INCOME OF SUBSIDIARIES 1,980 1,685
Minority interest in net income of subsidiaries 95 97
-----------------------------------------
NET INCOME $1,885 $1,588
==================== ====================
Basic earnings per common share $25.79 $21.61
==================== ====================
Dividends per share declared on common stock $0.70 $0.35
==================== ====================
Weighted average shares outstanding 71,607 71,727
==================== ====================
</TABLE>
See Notes to Consolidated Financial Statements.
4
<PAGE>
SPECTRUM BANCORPORATION, INC.
Consolidated Statements of Income
For The Six Months Ended
(In thousands, except share and per share data)
(unaudited)
<TABLE>
<CAPTION>
December 31, December 31,
1999 1998
-------------------- --------------------
<S> <C> <C>
Interest income on:
Loans receivable $21,378 $18,739
Securities 2,901 3,047
Federal funds sold and other 681 909
-------------------- --------------------
24,960 22,695
-------------------- --------------------
Interest expense on:
Deposits 10,554 10,150
Borrowings 2,324 1,739
-------------------- --------------------
12,878 11,889
-------------------- --------------------
Net interest income 12,082 10,806
Provision for loan losses 649 503
-------------------- --------------------
Net interest income after provision for loan
losses 11,433 10,303
-------------------- --------------------
Other income:
Service charges and other fees 2,943 2,942
Other 277 231
-------------------- --------------------
3,220 3,173
-------------------- --------------------
Other expenses:
Salaries and employee benefits 4,306 4,156
Occupancy expense, net 1,000 934
Data processing 494 507
Other operating expenses 2,494 2,456
-------------------- --------------------
8,294 8,053
-------------------- --------------------
INCOME BEFORE INCOME TAXES AND MINORITY
INTEREST IN NET INCOME OF SUBSIDIARIES 6,359 5,423
Income tax expense 2,292 1,952
-------------------- --------------------
INCOME BEFORE MINORITY INTEREST IN NET
INCOME OF SUBSIDIARIES 4,067 3,471
Minority interest in net income of subsidiaries 202 195
-----------------------------------------
NET INCOME $3,865 $3,276
==================== ====================
Basic earnings per common share $52.86 $44.60
==================== ====================
Dividends per share declared on common stock $1.40 $0.70
==================== ====================
Weighted average shares outstanding 71,607 71,727
==================== ====================
</TABLE>
See Notes to Consolidated Financial Statements.
5
<PAGE>
SPECTRUM BANCORPORATION, INC.
Consolidated Statements of Cash Flows
For The Six Months Ended
(In thousands)
(unaudited)
<TABLE>
<CAPTION>
December 31, 1999 December 31, 1998
------------------ --------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
NET CASH PROVIDED BY OPERATING ACTIVITIES $6,278 $4,075
------------------ --------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales and maturities of securities
available for sale 8,753 9,387
Purchase of securities available for sale (15,783) (28,019)
Net increase in loans (28,856) (9,901)
Purchase of premises and equipment (2,608) (2,123)
Purchase of other assets - (258)
------------------ --------------------
NET CASH USED IN INVESTING ACTIVITIES (38,494) (30,914)
------------------ --------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of preferred securities 20,400 -
Net increase in deposits 29,969 32,178
Net increase (decrease) in federal funds purchased
and securities sold under agreements to
repurchase 8,957 1,520
Proceeds from notes payable 19,850 2,008
Principal payments on notes payable (22,824) (3,289)
Dividends paid, including ($23) and ($41) paid to
minority interest, respectively (198) (166)
------------------ --------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 56,154 32,251
------------------ --------------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 23,938 5,412
Cash and cash equivalents:
Beginning 25,644 40,804
------------------ --------------------
Ending $49,582 $46,216
================== ====================
Supplemental Disclosures of Cash Flow Information
Cash payments for:
Interest $12,053 $11,051
Income taxes 2,235 1,427
Supplemental Schedules of Noncash Investing and
Financing Activities
Net change in unrealized gain/loss on securities
available for sale (1,059) 351
</TABLE>
See Notes to Consolidated Financial Statements.
6
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of presentation.
Fiscal 1999 results have been restated to reflect the effects of a
merger between Decatur Corporation ("Decatur") and Spectrum Bancorporation, Inc.
("Spectrum") completed in the fourth quarter of fiscal 1999. Since the entities
were under common control, the merger has been accounted for at historical cost
in a manner similar to a pooling-of-interests.
The consolidated financial statements include the accounts of the
Company and its subsidiaries. All material intercompany accounts and
transactions with subsidiaries are eliminated in consolidation.
The consolidated subsidiaries are as follows: Spectrum Capital Trust I
(100% owned); Citizens Bank (100% owned), which is chartered in Mount Ayr, Iowa;
Citizens Bank of Princeton (100% owned), which is chartered in Princeton,
Missouri; F&M Bank (97.9% owned), which is chartered in Watertown, South Dakota;
Rushmore Bank & Trust (90% owned), which is chartered in Rapid City, South
Dakota; and Spectrum Banc Service Corporation (89% owned), a data processing
organization. Also, at December 31, 1999, Rushmore Bank & Trust owns 99% of
Ameriloan, LLC, a loan origination company, which is currently inactive.
The June 30, 1999 consolidated balance sheet has been derived from the
audited balance sheet as of that date. The consolidated financial statements as
of December 31, 1999 and for the six and three months ended December 31, 1999
and 1998 are unaudited but include all adjustments (consisting only of normal
recurring adjustments) which the Company considers necessary for a fair
presentation of financial position and results of its operations and its cash
flows for those periods. Results for the six and three months ended December 31,
1999 are not necessarily indicative of the results to be expected for the entire
year.
2. Earnings per common share.
Earnings per share has been computed on the basis of weighted average
number of common shares outstanding during each period presented. Dividends
accumulated or declared on cumulative and noncumulative preferred stock, which
totaled $38,000 and $76,000 in each of the three and six months ended December
31, 1999 and 1998, reduced earnings available to common stockholders in the
computation.
3. Comprehensive Income.
Comprehensive income was $1,015,000 and $1,538,000 for the three months
ended December 31, 1999 and 1998, and $2,806,000 and $3,626,000 for the six
months ended December 31, 1999 and 1998. The difference between comprehensive
income and net income presented in the Consolidated Statements of Income is
attributed solely to unrealized gains and losses on available-for-sale
securities.
4. Company Obligated Mandatorily Redeemable Preferred Securities of
Subsidiary Trust Holding Solely Subordinated Debentures.
The Company has issued 2,040,000 shares, $10 par value, of Company
Obligated Mandatorily Redeemable Preferred Securities ("Preferred Securities")
of Spectrum Capital Trust I. Distributions accumulate from August 18, 1999 and
are paid quarterly beginning October 15, 1999. Cumulative cash distributions are
calculated at a 10.0% annual rate.
Holders of the Preferred Securities have no voting rights. The
Preferred Securities are unsecured and rank junior in priority of payment to all
of the Company's indebtedness and Senior to the calculation of Tier I capital.
The Preferred Securities are traded on the American Stock Exchange
under the symbol "SBK PRA".
6. Subsequent Event.
On January 14, 2000 the Company, through a newly chartered wholly owned
bank subsidiary, acquired selected assets and assumed the FDIC insured deposits
of Hartford-Carlisle Savings Bank in Carlisle, Iowa. Liquid assets of $4,800,000
and loans of $139,000 were acquired and $70,465,624 of deposits were assumed. A
premium of $5.5 million was paid for the right to
8
<PAGE>
assume the insured deposits. The bank was capitalized with $10 million in
paid-in capital. Cash was received from the FDIC for the deposits assumed net
of assets purchased and premium paid. The acquisition will be accounted for
under the purchase method of accounting. The acquisition was not so
significant as to require the filing of Form 8-K and related acquired company
financial statements and pro forma financial information with the Securities
and Exchange Commission. The deposit premium of $5.5 million will be
allocated to goodwill and be amortized over 15 years. Under a purchase and
assumption agreement with the FDIC the new bank has the right to purchase
certain securities and the buildings, real estate, furniture, fixtures and
equipment of the failed bank within 90 days. The acquisition cost of these
assets will be determined by independent appraisal. The bank will continue to
operate from the three existing facilities in Carlisle, Hartford and
Runnells, Iowa.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
GENERAL
The Company is a multi-bank holding company organized under the laws of
Iowa whose primary business is providing trust, commercial, consumer, and
mortgage banking services through its South Dakota, Missouri and Iowa based
subsidiary banks. Substantially all of the Company's income is generated from
banking operations.
The Company's fiscal year end is June 30.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
Total average assets were $640,719,000 for the six months ended
December 31, 1999, compared to $566,481,000 for the six months ended December
31, 1998 a 13.1% increase. Average interest-earning assets were $599,398,000 for
the six months ended December 31, 1999 and $529,140,000 for the six months ended
December 31, 1998, a 13.3% increase. Assets increased during fiscal 2000 due to
internal loan growth funded by deposits received from customers.
Total assets were $670,267,000 at December 31, 1999, an increase of
$59,097,000 from June 30, 1999. Net loans grew $26,089,000 during the first six
months of 1999 due to loan originations, net of loan repayments and charge-offs.
Loan growth was funded by an increase in deposits and additional Federal Home
Loan Bank ("FHLB") borrowings. The allowance for loan losses increased to
$6,433,000 at December 31, 1999 from $6,020,000 at June 30, 1999. The allowance
represented 1.3% of total loans as of December 31, 1999 and June 30, 1999.
For the six months ended December 31, 1999, the Company's annualized
return on average assets ("ROA") was 1.2%, compared to 1.2% for the six months
ended December 31, 1998. Return on average common stockholders' equity ("ROE")
for the six months ended December 31, 1999 and 1998 was 20.1% and 19.7%.
Cash and cash equivalents and investment securities totaled
$147,485,000, or 22.0% of total assets at December 31, 1999, compared to
$117,576,000, or 19.2%, at June 30, 1999.
At December 31, 1999, the Company's leverage, Tier 1 risk-based
capital, and total risk-based capital ratios were 8.6%, 10.8%, and 13.5%
respectively, compared to minimum required levels of 4%, 4% and 8%, respectively
(subject to change and the discretion of regulatory authorities to impose higher
standards in individual cases). At December 31, 1999, the Company had
risk-weighted assets of $500,188,000.
During the first quarter of fiscal 2000, the Company issued $20,400,000
of ("Preferred Securities".) Proceeds from the issuance were used to repay
$11,695,000 in correspondent bank debt and the remaining amount is to be used
for acquisitions and general corporate purposes.
Management believes that cash generated from its operations, from its
Preferred Securities and from its correspondent bank facility will be sufficient
to meet its cash requirements for acquisitions, internal growth and general
operations in the foreseeable future.
8
<PAGE>
ACQUISITION
The Company invested $10,000,000 in a newly formed, wholly-owned bank
subsidiary which acquired selected assets and assumed insured deposits of the
failed Hartford-Carlisle Savings Bank in Carlisle, Iowa. See footnote 6 in the
accompanying notes to the consolidated financial statements. The Company
borrowed $3,000,000 and funded the remainder of the investment from liquid
resources on hand. The Company intends to actively serve the Carlisle, Hartford
and Runnells, Iowa markets. When appropriate, management intends to enter the
Des Moines, Iowa market through this subsidiary.
RESULTS OF OPERATIONS
COMPARISON OF THE THREE MONTHS ENDED DECEMBER 31, 1999 AND DECEMBER 31, 1998
Net Interest Income
Total interest income for the three months ended December 31, 1999 was
$12,641,000, an 11.5% increase over the three months ended December 31, 1998.
The increase was primarily the result of internal loan growth.
Total interest expense for the three months ended December 31, 1999 was
$6,681,000, a 13.4% increase over the three months ended December 31, 1998. The
increase was the result of the issuance of Preferred Securities and an increase
in interest-bearing deposits, which was only partially offset by a reduction in
average rates paid on deposits. Average total interest-bearing liabilities
increased by $72,285,000 or 14.9% during the three months ended December 31,
1999 compared to the same period in fiscal 1999, primarily due to the increased
volume in interest-bearing deposits.
Net interest income was $5,960,000 for the three months ended December
31, 1999, compared to $5,449,000 for the same period in 1998, an increase of
9.4%. The Company's net interest margin decreased from 4.0% for the three months
ended December 31, 1998 to 3.9% for the three months ended December 31, 1999.
The decrease in net interest margin was created by originating loans at a lower
average rate than the costs of new deposits and other borrowings.
Provisions for Loan Losses
The provision for loan losses for the three months ended December 31,
1999, was $253,000, compared to $279,000 for the comparable 1998 period.
Other Income
Other income for the three months ended December 31, 1999 was
$1,740,000, an increase of $70,000, or 4.2%, over the same period last year. The
increase in other income resulted from a slight increase in service charges and
other fees.
Other Expense
Other expense for the three months ended December 31, 1999 was
$4,329,000, an increase of $88,000, or 2.1%, over the same period last year.
This increase was primarily due to increased salaries and benefits expenses and
other operating expense.
Income Tax Expense
Income tax expense for the three months ended December 31, 1999 and
December 31, 1998 was $1,138,000 and $914,000. The effective tax rates for those
periods were 36.5% and 35.2%.
COMPARISON OF THE SIX MONTHS ENDED DECEMBER 31, 1999 AND DECEMBER 31, 1998
Net Interest Income
Total interest income for the six months ended December 31, 1999 was
$24,960,000, a 10.0% increase over the six months ended December 31, 1998. The
increase was primarily the result of internal loan growth.
9
<PAGE>
Total interest expense for the six months ended December 31, 1999 was
$12,878,000, an 8.3% increase over the six months ended December 31, 1998. The
increase was the result of the issuance of Preferred Securities and an increase
in interest-bearing deposits, which was only partially offset by a reduction in
average rates paid on deposits. Average total interest-bearing liabilities
increased by $39,620,000 or 7.9% during the first six months of fiscal 2000
compared to the same period in fiscal 1999, primarily due to the increased
volume in interest-bearing deposits.
Net interest income was $12,082,000 for the six months ended December
31, 1999, compared to $10,806,000 for the same period in 1998, an increase of
11.8%. The Company's net interest margin decreased from 4.1% for the six months
ended December 31, 1998 to 4.0% for the six months ended December 31, 1999. The
decrease in net interest margin was created by originating loans at a lower
average interest rate spread over the average costs of new deposits and other
borrowings.
Provisions for Loan Losses
The provision for loan losses for the six months ended December 31,
1999, was $649,000, compared to $503,000 for the comparable 1998 period. The
increase can be attributed to the loan growth of $26,502,000 in the first half
of fiscal 2000 compared to $11,149,000 in the same period in fiscal 1999.
Other Income
Other income for the six months ended December 31, 1999 was $3,220,000,
an increase of $47,000, or 1.5%, over the same period last year. The increase in
other income resulted from a slight increase in other fee income.
Other Expense
Other expense for the six months ended December 31, 1999 was
$8,294,000, an increase of $241,000, or 3%, over the same period last year. This
increase was due to increases in salaries and other operating expenses.
Income Tax Expense
Income tax expense for the six months ended December 31, 1999 and
December 31, 1998 was $2,292,000 and $1,952,000. The effective tax rates for
those periods were 36.1% and 36.0%.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Asset/liability management refers to management's efforts to minimize
fluctuations in net interest income caused by interest rate changes. This is
accomplished by managing the repricing of interest rate sensitive
interest-earning assets and interest-bearing liabilities. Controlling the
maturity or repricing of an institution's liabilities and assets in order to
minimize interest rate risk is commonly referred to as gap management. Close
matching of the repricing of assets and liabilities will normally result in
little change in net interest income when interest rates change. A mismatched
gap position will normally result in changes in net interest income as interest
rates change.
Management regularly monitors the interest sensitivity position and
considers this position in its decisions with regard to the Company's interest
rates and maturities for interest-earning assets acquired and interest-bearing
liabilities accepted.
There has not been a material change in the interest rate sensitivity
of the Company during the six months ended December 31, 1999.
YEAR 2000 COMPLIANCE
There has been no material change in the Company's efforts to comply
with Year 2000 issues as reported in the June 30, 1999 Form 10-K.
10
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PART II
OTHER INFORMATION
ITEM 1: LEGAL PROCEEDINGS
The Company has not been informed of any legal matters that would have
a material adverse effect on its consolidated financial condition, results of
operations or cash flows.
ITEM 2: CHANGES IN SECURITIES AND USE OF PROCEEDS
None
ITEM 3: DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5: OTHER INFORMATION
None
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS REQUIRED TO BE FILED BY ITEM 601 OF REGULATION S-K
27. Financial Data Schedule
(b) REPORTS ON FORM 8-K
The Company filed no current reports on Form 8-K during the
quarter ended December 31, 1999.
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 thereunto duly authorized.
SPECTRUM BANCORPORATION, INC.
Date: February 11, 2000 By: /s/ Deryl F. Hamann
-----------------------------------
Deryl F. Hamann, Chairman and Chief
Executive Officer
(Duly Authorized Representative)
(Authorized officer and principal financial officer of the registrant)
11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<CIK> 0001088381
<NAME> SPECTRUM BANCORPORATION, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> DEC-31-1999
<CASH> 20,359
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 29,223
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 97,903
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 499,492
<ALLOWANCE> 6,433
<TOTAL-ASSETS> 670,267
<DEPOSITS> 536,878
<SHORT-TERM> 28,734
<LIABILITIES-OTHER> 6,248
<LONG-TERM> 56,450
0
1,700
<COMMON> 72
<OTHER-SE> 38,052
<TOTAL-LIABILITIES-AND-EQUITY> 670,267
<INTEREST-LOAN> 21,378
<INTEREST-INVEST> 2,901
<INTEREST-OTHER> 681
<INTEREST-TOTAL> 24,960
<INTEREST-DEPOSIT> 10,554
<INTEREST-EXPENSE> 12,878
<INTEREST-INCOME-NET> 12,082
<LOAN-LOSSES> 649
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 8,249
<INCOME-PRETAX> 6,359
<INCOME-PRE-EXTRAORDINARY> 4,067
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,865
<EPS-BASIC> 52.86
<EPS-DILUTED> 52.86
<YIELD-ACTUAL> 4.03
<LOANS-NON> 759
<LOANS-PAST> 1,197
<LOANS-TROUBLED> 4,186
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 6,020
<CHARGE-OFFS> 409
<RECOVERIES> 173
<ALLOWANCE-CLOSE> 6,433
<ALLOWANCE-DOMESTIC> 6,433
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<RESTATED>
<CIK> 0001088381
<NAME> SPECTRUM BANCORPORATION, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 18,434
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 25,238
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 95,612
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 483,569
<ALLOWANCE> 6,227
<TOTAL-ASSETS> 647,609
<DEPOSITS> 523,083
<SHORT-TERM> 23,248
<LIABILITIES-OTHER> 8,255
<LONG-TERM> 52,055
0
1,700
<COMMON> 72
<OTHER-SE> 37,128
<TOTAL-LIABILITIES-AND-EQUITY> 647,609
<INTEREST-LOAN> 10,558
<INTEREST-INVEST> 1,494
<INTEREST-OTHER> 267
<INTEREST-TOTAL> 12,319
<INTEREST-DEPOSIT> 5,159
<INTEREST-EXPENSE> 6,197
<INTEREST-INCOME-NET> 6,122
<LOAN-LOSSES> 396
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,965
<INCOME-PRETAX> 3,241
<INCOME-PRE-EXTRAORDINARY> 2,087
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,980
<EPS-BASIC> 27.1
<EPS-DILUTED> 27.1
<YIELD-ACTUAL> 4.16
<LOANS-NON> 1,416
<LOANS-PAST> 1,263
<LOANS-TROUBLED> 4,186
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<ALLOWANCE-OPEN> 6,020
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<RECOVERIES> 49
<ALLOWANCE-CLOSE> 6,227
<ALLOWANCE-DOMESTIC> 6,227
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
