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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Report Date: December 23, 1994
(Date of Earliest Event Reported)
Commission File Number 0-13404
FIRST COLONIAL BANKSHARES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 36-2981200
(State of Incorporation) (I.R.S. Employer
Identification No.)
30 North Michigan Avenue
Chicago, Illinois 60602-3496
(Address of Principal (Zip Code)
Executive Offices)
Registrant's Telephone Number, (312) 419-9891
Including Area Code
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FIRST COLONIAL BANKSHARES CORPORATION AND SUBSIDIARIES
INDEX TO FORM 8-K
Page
Exhibits and Reports on Form 8-K 3 - 5
Signatures 6
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Item 5. Other Events
On December 23, 1994, First Colonial Bankshares Corporation ("First
Colonial") announced that it sold approximately $121 million of investment
securities classified as available-for-sale and recorded a pretax net loss of
approximately $4.2 million. The losses in these securities arose in 1994 as
market rates increased. In addition, First Colonial decided to increase its
provision for loan losses by $2.3 million, to approximately $3.4 million for
the quarter. The increase in provision, net of anticipated charge-offs, will
increase the level of the allowance relative to total loans to approximately
1.32%. The addition to the provision reflects consideration of peer group
ratios, charge-off history, and general economic conditions. The result of
these actions is equivalent to a charge against fourth quarter earnings of
approximately $3.9 million after taxes, or $0.38 per share.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
20 Press release of First Colonial Bankshares Corporation
dated December 23, 1994, announcing fourth quarter
charges.
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NEWS RELEASE
[FIRST COLONIAL LETTERHEAD]
FOR IMMEDIATE RELEASE C. Paul Johnson or Barbara
Kilian, First Colonial
Bankshares Corporation,
312/419-9891
FIRST COLONIAL ANNOUNCES FOURTH QUARTER CHARGES
Chicago, Illinois (December 23, 1994) -- First Colonial Bankshares
Corporation (NASDAQ/FCOLA) today announced that it will incur non-recurring
after tax charges totaling approximately $3.9 million in the fourth quarter.
In reviewing its year end position First Colonial decided to sell
approximately $121 million of investment securities classified as
available-for-sale and recognize a pretax net loss of approximately $4.2
million on such sales. The losses in these securities arose in 1994 as market
interest rates increased. In addition, First Colonial decided to increase its
provision for loan losses by $2.3 million, to approximately $3.4 million for
the quarter. The increase in the provision, net of anticipated charge-offs,
will increase the level of the allowance relative to total loans to
approximately 1.32%. The addition to the provision reflects consideration of
peer group ratios, charge-off history, and general economic conditions. The
result of these actions is equivalent to a charge against fourth quarter
earnings of approximately $3.9 million after taxes, or $.38 per share.
C. Paul Johnson, chairman and chief executive officer, said that the
company's core earnings remain strong. He noted that net interest margin in
1994 will be approximately 4.93%, compared to 4.84% in 1993. Johnson also noted
that the company's net interest margin is significantly higher than its peer
group. The actions noted above will allow the company to restructure its
investment portfolio mix and maturity and strengthen the operations of the
company going forward.
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First Colonial Bankshares Corporation is a $1.8 billion Chicago based
holding company. Firstar Corporation received approval from the Federal Reserve
and the Illinois Commissioner of Banks and Trust Companies on December 19, 1994
and December 23, 1994, respectively, to complete its acquisition of First
Colonial Bankshares Corporation. First Colonial stockholders will vote on the
transaction at a special meeting on January 18, 1995. If approved, the
transaction is expected to close during the week of January 30, 1995. Firstar
Corporation intends to merge First Colonial's banks with Firstar's existing
Illinois banks to form one bank, Firstar Illinois, which will have 45 offices
totaling $3 billion in assets in the six county metropolitan Chicago area.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FIRST COLONIAL BANKSHARES CORPORATION
(Registrant)
Date: January 3, 1995 /s/ Barbara A. Kilian
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Barbara A. Kilian
Senior Vice President,
Chief Financial Officer and
Principal Accounting Officer
