<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
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 2-54663
FIRST MANISTIQUE CORPORATION
(Exact name of registrant as specified in its charter)
Michigan 38-2062816
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
130 S. Cedar Street, Manistique, Michigan 49854
(Address of principal executive offices) (Zip Code)
(906)-341-8401
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report)
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 reports), and (2) has been subject to such
filing requirements for the 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 possible date.
Type: common Date: October 18, 1995 Number of shares: 702,239
<PAGE> 2
INDEX
FIRST MANISTIQUE CORPORATION AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
<TABLE>
<S> <C>
Consolidated balance sheets - September 30, 1995 (Unaudited)
and December 31, 1994 I-1-2
Consolidated statements of income - three and nine months
ended September 30, 1995 and 1994 (Unaudited) I-3
Consolidated statements of cash flows - nine
months ended September 30, 1995 and 1994 (Unaudited) I-4-5
Notes to consolidated financial statements - September 30, 1995 I-6-7-8
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations I-9-13
PART II. OTHER INFORMATION
ITEM 6. Reports on Form 8-K II-1
Signatures II-1
</TABLE>
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FIRST MANISTIQUE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(000's omitted)
ASSETS
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
---------------------------
(Unaudited)
<S> <C> <C>
Cash and cash equivalents:
Cash and noninterest bearing deposits $13,722 $10,219
Federal funds sold 0 4,100
-------- --------
TOTAL CASH AND CASH EQUIVALENTS 13,722 14,319
Interest bearing time deposits 0 2,422
Investment securities:
Securities available for sale 12,345 21,929
Securities held to maturity
(estimated fair value 1995 $17,082 and 1994 $13,778) 17,082 14,446
-------- --------
TOTAL INVESTMENT SECURITIES 29,427 36,375
Loans:
Commercial, financial and agricultural loans 93,554 78,138
Real estate loans - mortgage 55,818 56,987
Installment loans 30,881 26,785
Leases 30,903 21,259
-------- --------
TOTAL LOANS 211,156 183,169
Less: Allowance for loan losses (2,690) (2,350)
-------- --------
NET LOANS 208,466 180,819
Bank premises and equipment 10,897 9,803
Accrued interest receivable and other assets 8,935 9,361
-------- --------
TOTAL ASSETS $271,447 $253,099
======== ========
</TABLE>
I-1
(continued)
<PAGE> 4
<TABLE>
<CAPTION>
LIABILITIES
September 30, December 31,
1995 1994
-----------------------------
(Unaudited)
<S> <C> <C>
Deposits:
Non interest-bearing $27,964 $24,272
Interest-bearing 208,704 199,864
-------- --------
TOTAL DEPOSITS 236,668 224,136
Notes Payable 6,866 3,552
Accrued interest payable and other liabilities 3,164 2,927
-------- --------
TOTAL LIABILITIES 246,698 230,615
-------- --------
STOCKHOLDERS' EQUITY
Common stock, no par value;
2,000,000 shares authorized
701,424 shares issued and outstanding in 1995;
699,024 shares in 1994 5,295 5,190
Capital surplus 7,847 7,847
Retained earnings 11,640 10,015
Net unrealized loss on securities available for sale
(net tax of $17 in 1995 and $284 in 1994) (33) (568)
-------- --------
TOTAL STOCKHOLDERS' EQUITY 24,749 22,484
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $271,447 $253,099
======== ========
</TABLE>
(Concluded)
See notes to consolidated financial statements.
I-2
<PAGE> 5
FIRST MANISTIQUE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
------------------------ ------------------------
(Unaudited)(000's omitted) (Unaudited)(000's omitted)
except per share data except per share data
------------------------ ------------------------
<S> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans $5,222 $3,285 $14,589 $8,665
Interest on investment securities:
Taxable 359 404 1,153 1,243
Exempt from Federal income taxes 16 62 114 236
Other interest income 115 51 383 129
------ ------ ------- -------
TOTAL INTEREST INCOME 5,712 3,802 16,239 10,273
Interest Expense:
Interest on deposits 2,330 1,477 6,744 4,054
Interest on borrowings 128 100 311 182
------ ------ ------- -------
TOTAL INTEREST EXPENSE 2,458 1,577 7,055 4,236
------ ------ ------- -------
NET INTEREST INCOME 3,254 2,225 9,184 6,037
Provision for loan losses 230 50 377 70
------ ------ ------- -------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 3,024 2,175 8,807 5,967
Non-Interest Income:
Service charges on deposit accounts 133 108 430 290
Securities gains (losses) 0 41 (19) 101
Other 107 208 546 458
------ ------ ------- -------
TOTAL NON-INTEREST INCOME 240 357 957 849
Non-Interest Expenses:
Salaries & employee benefits 994 818 2,829 2,080
Occupancy expense 173 111 484 314
Furniture and equipment expense 213 140 644 391
Other 844 779 2,590 2,056
------ ------ ------- -------
TOTAL NON-INTEREST EXPENSES 2,224 1,848 6,547 4,841
Income before income taxes 1,040 684 3,217 1,975
Income taxes 296 144 914 372
------ ------ ------- -------
NET INCOME $ 744 $ 540 $2,303 $1,603
====== ====== ======= =======
NET INCOME PER SHARE $ 1.06 $ 0.92 $ 3.28 $ 2.72
====== ====== ======= =======
Dividends declared per share $ 0.24 $ 0.47 $ 0.97 $ 1.07
====== ====== ======= =======
</TABLE>
(Concluded)
See notes to consolidated financial statements
I-3
<PAGE> 6
CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended
September 30
--------------------------
1995 1994
--------------------------
(Unaudited)(000's omitted)
<S> <C> <C>
Net income $2,303 $1,603
Adjustments to reconcile net income to net cash
provided by operating activities
Provision for possible losses 377 70
Depreciation 576 381
Amortization 474 166
Accretion (7) (6)
(Gains) losses on investment securities 19 (99)
Increase/(Decrease) in interest receivable and other assets 166 (472)
Increase/(Decrease) in interest payable and other liabilities (10) (203)
Gains on sale of bank premises and equipment (41) 0
------- -------
NET CASH PROVIDED BY OPERATING ACTIVITIES 3,857 1,440
Cash Flows From Investing Activities:
Held to maturity securities purchased (4,248) (1,735)
Proceeds from maturities of held to maturity securities 1,609 2,408
Purchase of securities available for sale (974) (1,119)
Proceeds from sales of securities available for sale 9,014 7,422
Proceeds from maturities of securities available for sale 2,156 2,977
Net increase in loans (28,024) (25,125)
Time deposits matured 45,170 195
Time deposits purchased (42,801) (3,940)
Purchase of bank premises and equipment (1,629) (1,905)
Acquisition of Bank of Stephenson, net of cash and
cash equivalents acquired 0 (4,493)
NET CASH USED IN INVESTING ACTIVITIES (19,727) (25,315)
Cash Flows From Financing Activities:
Net increase in deposits 12,532 17,998
Increase in notes payable 3,314 2,991
Payment of dividends (678) (419)
Proceeds from stock issuance 105 242
NET CASH PROVIDED BY FINANCING ACTIVITIES 15,273 20,812
------- -------
NET DECREASE IN CASH AND CASH EQUIVALENTS (597) (3,063)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 14,319 14,390
------- -------
CASH AND CASH EQUIVALENTS, END OF PERIOD $13,722 $11,327
======= =======
</TABLE>
(continued)
I-4
<PAGE> 7
Supplemental disclosure of cash flow information
Cash paid during the period for:
<TABLE>
<CAPTION>
1995 1994
------ ------
(000's omitted)
<S> <C> <C>
Interest $6,831 $4,106
Income Taxes 1,016 721
Supplemental disclosure of non-cash investing activity
Transfer from loans to Other Real Estate 339 69
</TABLE>
*Acquisition of Bank of Stephenson (Bank), net of cash and cash equivalents
acquired:
(Concluded)
See notes to consolidated financial statements
I-5
<PAGE> 8
FIRST MANISTIQUE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
NOTE A - BASIS OF PRESENTATION
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 and Article 10 of
Regulation S-X. Accordingly, the unaudited consolidated financial statements
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.
In the opinion of management of the Corporation, the unaudited consolidated
financial statements include all adjustments necessary for a fair presentation
of its financial position as of September 30, 1995 and the results of its
operations and its cash flows for the nine months then ended. Such adjustments
were of a normal recurring nature.
The results of operations for the nine months ended September 30, 1995 are not
necessarily indicative of the results that will occur for the year ended
December 31, 1995. The balance sheet at December 31, 1994 has been derived
from the audited financial statements at that date. For further information,
refer to the consolidated financial statements and footnotes thereto included
in the Company's Annual Report on Form 10-K for the year ended December 31,
1994.
The results of operation for the nine months ended September 30, 1994 as
reported in the accompanying financial statements are reported on a historical
basis. The results attributable to the acquisition of the Bank of Stephenson,
are included herein after the purchase date of February 8, 1994. Similarly,
the acquisition of a substantial portion of the assets and liabilities of
Newberry State Bank, purchased December 8, 1994, as well as the purchase of the
First of America Rudyard branch, purchased September 15, 1995, had no impact on
the results of operations for the quarter ended September 30, 1994. For the
nine months ended September 30, 1995 the Corporation's average outstanding
shares totaled 701,424 and for the third quarter 1995 average outstanding
shares equaled 699,903. This compares to 589,194 average outstanding for the
nine months ended September 30, 1994 and 589,268 average outstanding shares for
the third quarter 1994.
I-6
<PAGE> 9
NOTE B - ACQUISITIONS
On February 8, 1994 the Corporation purchased 100% of the outstanding stock of
the Bank of Stephenson with total assets of approximately $70,000,000. The
results of the operations of the bank have been incorporated in the accopanying
financial statements after the purchase date. Assuming the Bank of Stephenson
had been acquired January 1, 1994, the estimated total revenues, net income and
earnings per share amounts for the nine months ending September 30, 1994 would
have been as follows:
<TABLE>
<S> <C>
Total Revenue $11,245
Net Income 1,669
Net income per common share $2.83
</TABLE>
Neither the partial acquisition of Newberry State Bank or the First of America
Rudyard branch had an impact on the earnings for the nine months ending
September 30, 1994.
NOTE C - STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS
The Corporation adopted SFAS NO. 114, ""Accounting by Creditors for Impairment
of a Loan" effective January 1, 1995. This statement requires that a specific
measurement basis be applied to loans when it is probable that all amounts
due under terms of the loan agreement will not be collected. The impact of the
Company's adoption of this statement was not material to its consolidated
financial statements.
The Financial Accounting Standards Board recently released Statement of
Financial Accounting Standards No. 122 "Accounting for Mortgage Servicing
Rights" (SFAS No.122) This statement changes the accounting for mortgage
servicing rights retained by the loan originator. Under this standard, if the
originator sells or securitizes mortgage loans and retains the related
servicing rights, the total cost of the mortgage loan is allocated between the
loan (without the servicing rights) and the servicing rights, based on their
relative fair values. Under current practice, all such costs were assigned to
the loan. The costs allocated to mortgage servicing rights will be recorded as
a separate asset and be amortized in proportion to, and over the life of, the
net servicing income. The carrying value of the mortgage servicing rights will
be periodically evaluated for impairment.
The Bank currently retains servicing on almost all loans originated and sold
into the secondary market. Accordingly, this statement will apply to most loan
sales. The impact on the Company's results of operations and financial
position will depend upon the volume of loans sold with servicing retained, the
cost of loans originated, the relative fair values of loans and servicing
rights at the point of sale, among other factors. In general, the standard
will increase the amount of income recognized when loans are sold or
securitized and will reduce the amount of income recognized during the
servicing period.
This statement is effective for the Company in fiscal 1996, although early
implementation is permitted. The statement applies to loan sale transactions
after implementation; retroactive application to servicing rights created prior
to adoption of the statement is prohibited.
I-7
<PAGE> 10
NOTE D - INVESTMENT SECURITIES
(000's omitted)
Debt and equity securities have been classified in the accompanying
consolidated balance sheets according to management's intent. The amortized
cost and fair market value of securities at September 30, 1995 and December 31,
1994 are as follows:
<TABLE>
<CAPTION>
Amortized Unrealized Estimated
Cost Gains Losses Fair Value
--------- ------------------ ----------
<S> <C> <C> <C> <C>
09/30/95
SECURITIES AVAILABLE FOR SALE
U.S. Treasury and Federal agencies $10,811 $0 ($59) $10,752
States and Political Subdivisions 477 9 0 486
Other Securities 1,107 0 0 1,107
------- -- ----- -------
12,395 9 (59) 12,345
======= == ===== =======
12/31/94
SECURITIES AVAILABLE FOR SALE
U.S. Treasury and Federal agencies 17,696 3 (642) 17,057
States and Political Subdivisions 3,348 2 (220) 3,130
Other Securities 1,751 0 (9) 1,742
------- -- ----- -------
22,795 5 (871) 21,929
======= == ===== =======
09/30/95
SECURITIES HELD TO MATURITY
U.S. Treasury and Federal agencies 8,641 0 (82) 8,559
States and Political Subdivisions 835 5 (1) 839
Other Securities 7,606 0 (37) 7,569
------- -- ----- -------
17,082 5 (120) 16,967
======= == ===== =======
12/31/94
SECURITIES HELD TO MATURITY
U.S. Treasury and Federal agencies 8,799 0 (477) 8,322
States and Political Subdivisions 1,150 2 (9) 1,143
Other Securities 4,497 0 (184) 4,313
------- -- ----- -------
$14,446 $2 ($670) $13,778
======= == ===== =======
</TABLE>
I-8
<PAGE> 11
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following presents management's' discussion and analysis of the
Corporation's financial condition and earnings performance. This review
highlights the major factors affecting results of operations and any
significant changes in financial condition for the three and nine months ended
September 30, 1995.
HIGHLIGHTS
The results of the Corporation's aggressive expansion activities were again
evident in the third quarter of 1995. Net income for the quarter was nearly
38% higher than the third quarter of 1994, driven primarily by the impact of
the acquisition of Newberry State Bank at the end of 1994 (the effects of the
Bank of Stephenson acquisition are fully reflected in the third quarter of both
1995 and 1994). The purchase of the First of America (FOA) Rudyard branch had
no significant impact on third quarter 1995 earnings.
Despite its rapid growth, the Corporation has been able to increase its strong
net interest margin (5.06% for the nine months ended September 30, 1995,
compared to 4.92% in the third quarter of 1994). This has been fueled by
strong loan demand. The loan to deposit ratio moved to 90.1% at September 30,
1995, from 81.7% at December 31, 1994. Deposit growth of $10 million was
primarily attributed to the acquisition of the FOA Rudyard branch. Loan growth
was funded by additional FHLB advances, deposit growth, maturing investments
and a reduction in iterest bearing time deposits.
The Corporation continues to work at growing its base of stable deposits in
order to meet loan demand. The acquisition of the FOA Rudyard branch was
completed on September 15, 1995. An addition of approximately nine million
dollars of deposits resulted from this action.
On August 30, 1995 the Corporation signed a definitive agreement with South
Range State Bank. The affiliation will be accomplished through an exchange of
cash and notes of First Manistique Corporatiom for 100% of the outstanding
stock of South Range. South Range had total assets of $35,685,000 as September
30, 1995.
The Corporation has received approval from the Financial Institutions Bureau to
merge its two existing bank subsidiaries. The merger was executed on October
1, 1995.
First Northern Services Company, a wholly owned subsidiary of the Corporation,
ceased its appraisal services July 1, 1995. The appraisals are now performed
by First Northern Bank and Trust, a bank subsidiary.
See note C for discussion of new accounting standards.
RESULTS OF OPERATIONS
The Corporation's net income increased from $1,603,000 for the nine months
ended September 30, 1994 to $2,303,000 for the same period in 1995. This 43.7%
increase was greater than 37.8% increase for the third quarter because the
results from the Bank of Stephenson acquisition were included in all of 1995's
first quarter but in only a portion of 1994's first quarter. Additionally the
net interest margin widen on a larger asset base.
I-9
<PAGE> 12
Net interest income has grown with the Corporation's overall growth. Interest
income is driven by the Corporation's strong loan levels, as describe above.
See "Loan portfolio and loan loss experience" for a more detailed explanation
of the loan portfolio's performance. Installment loans increased by 15.3% for
the nine months ended September 30, 1995 compared to 156.7 % for the same
period 1994 (the Bank of Stephenson accounted for nearly all of the 1994
growth). In third quarter installment loans declined slightly by 6.6%. Leases
increased by 45.4% for the first nine months ended September 30, 1995. The
lease growth in the third quarter of 1995 was 13.1%, do to management's
decision on the mix asset growth, which focuses on these higher yielding
assets.
Non-interest income increased by 26.0% for the nine months of 1995 compared to
same period in 1994. The acquisitions of Stephenson on February 8, 1994 and
Newberry on December 8, 1994 accounted for approximately 44.3% of increase.
For the third quarter 1995 the increase was a smaller 8.3% increase. The
principal reason for most of the increase was the increased volume of deposit
accounts resulting in an increase in service charges, other income also
increased with the growth of the Corporation. Management expects that this
trend will continue.
Non-interest expense increased by 35.2% for the first nine months of 1995
compared to the same period for 1994. The acquisitions of Stephenson on
February 8, 1994 and Newberry on December 8, 1994 accounted for approximately
44.3% of the increase. For the third quarter 1995 the increase was 20.3%. The
reason for the smaller increase in the third quarter reflects the Bank of
Stephenson partial effect on the first quarter 1994 and full effect in the
third quarter of 1994. The principal reasons for the balance of the increase
was due to the increase in salary and benefits, furniture and equipment
expense. Salaries and benefits increased due to additional personnel hired and
to normal salary increases. The furniture and equipment expense increased due
to depreciation and maintenance costs related to growth and the remodeling of
the Manistique Office in July of 1994. Management expects non-interest expense
to continue to increase during 1995 as corporate growth continues.
The Corporation's effective tax rate has increased to 28.4% for the nine months
ended September 30, 1995 compared to 18.8% for the corresponding 1994 period.
This increase is due to a reduction in the tax exempt interest earning assets
by the Corporation in 1995 compared to 1994.
LIQUIDITY
The Corporation's banking subsidiaries have many sources of ready liquidity
including amounts due form banks, deposits, investment securities and Federal
Home Loan Advances. Additionally, the Corporation is generally able to obtain
cash through borrowings and issuance of common stock.
The consolidated statement of cash flows for the third quarter ending September
30, 1995 showed a total cash and cash equivalent of $13,722,000 compared to
$11,327,000 as of September 30, 1994. The primary reason for the increase was
a decrease in time deposits of $1,841,000. The major use of the cash flows
was a net increase in loans for third quarter ending September 30, 1995 of
$6,317,000, which compares to an increase of $8,382,000 during third quarter of
1994. This reflects our continued strong loan demand and extends a trend that
has existed for the last five years. The net deposits increased during the
third quarter of 1995 by $10,463,000 which compares to a $9,611,000 increase
during the third quarter of 1994.
Federal Home Loan Advances did not change during third quarter ending September
30, 1995. Net use of funds from purchases of securities exceeded proceeds from
the sales and maturities by $2,377,000 during second quarter ending June 30,
1995. Net cash provided by operating activities amounted to $996,000 during
third quarter ending September 30, 1995.
I-10
<PAGE> 13
CAPITAL ADEQUACY
(In thousands of dollars)
The Corporation's capital position compared to the regulatory minimum
requirements is as follows:
<TABLE>
<CAPTION>
Regulators
09/30/95 09/30/94 Minimum
-------- -------- ----------
<S> <C> <C> <C>
Tier I Capital to Risk Weighted Assets 10.46% 12.50% 4.00%
Tier II Capital to Risk Weighted Assets 11.66% 13.62% 8.00%
Leverage - Tier I to Ave. Total Assets 7.70% 8.31% 4.00%
</TABLE>
LOAN PORTFOLIO AND LOAN LOSS EXPERIENCE
Total loans increased by 15.3% in the first nine months of 1995 compared to the
first nine months of 1994. This increase was primarily due to the Newberry
acquisition which accounted for nearly 18.5% of the increase. The remainder of
this increase is the result of continued strong loan demand in our ever
increasing market area.
Non-Accrual, Past Due and Restructured Loans:
The following table summarizes the Company's non-accrual, past due and
restructured loans: (In thousands of dollars)
<TABLE>
<CAPTION>
09/30/95 09/30/94
-------- --------
<S> <C> <C>
Non-Accrual Loans $0 $41
Past due 90 days or more still accruing $24 $148
Interest Income that would have been recorded
under original terms $0 $0
Interest Income recorded for loans in non- $0 $0
accrual status
</TABLE>
The accrual of interest income is discontinued when a loan becomes 90 days
past due as to principal or interest unless in management's judgment the
delinquency is a temporary condition. When interest accruals are discontinued,
interest credited to income in the current year is reversed and interest
accrued in prior years is charged to allowance for loan losses. Management
may elect to continue the accrual of interest when the estimated net
realizable value of collateral is sufficient to cover the principal balance and
accrued interest and the loan is in process of collection.
I-11
<PAGE> 14
Potential Problem Loans
At September 30, 1995 the Corporation had no known loans for which payments are
current, but on which the borrowers are currently experiencing severe financial
difficulties
Summary of Loan Loss Experience
(In thousands of dollars)
<TABLE>
<CAPTION>
09/30/95 09/30/94
-------- --------
<S> <C> <C>
Beginning Balance of Allowance $2,350 $917
Loans Charged Off
Commercial 188 99
Real Estate Mortgage 0 36
Installment 170 156
------ ------
Total Loans Charged Off 358 291
Recoveries of Loans
Commercial 233 138
Real Estate Mortgage 22 39
Installment 72 53
------ ------
Total Recoveries on Loans 327 230
Net Charge Offs (Recoveries) 31 61
Provision for Loan Losses 377 70
Additions (Deletions) to Allowance
from acquisitions (6) 1,076
------ ------
Ending Balance of Allowance $2,690 $2,002
====== ======
</TABLE>
I-12
<PAGE> 15
The following table shows the amounts of loans (excluding residential mortgages
for 1-4 family residences and installment loans) outstanding as of September
30, 1995, which, based on remaining scheduled repayments of principal, are due
in the period indicated and loans maturing after one year by fixed and variable
rates. (In thousands of dollars)
<TABLE>
<CAPTION>
Maturing
After One
Within But Within After
One Year Five Years Five Years Total
<S> <C> <C> <C> <C>
Commercial, financial and agricultural $21,517 $60,810 $11,227 $93,554
Real Estate Mortgage 965 2,130 924 $4,019
Leases 2,781 14,524 13,598 30,903
------- ------- ------- --------
TOTAL $25,263 $77,464 $25,749 $128,476
======= ======= ======= ========
Loans Maturing after one year with
Fixed int. rates 25,563 15,449
Variable int. rates 51,901 10,300
------- -------
TOTAL $77,464 $25,749
======= =======
</TABLE>
Since 1977, real estate mortgages have been written with either a 3 year or 5
year balloon payment. The mortgage notes, if current credit information
warrants, are rewritten at current interest rates when they become due. Annual
adjustable real estate mortgages have been written since September of 1986.
The majority of commercial loans being written have rates that are adjusted
monthly based on the prevailing prime rates.
I-13
<PAGE> 16
PART II -- OTHER INFORMATION
ITEM 6. Reports on Form 8-K
The Corporation did not file a current report on Form 8-K
during the nine month period ended September 30, 1995.
All other items required under Part II are omitted because they are not
applicable.
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 MANISTIQUE CORPORATION
---------------------------------
(Registrant)
Date Daniel R. Purcell
- - - ---------------------- ---------------------------------
Daniel R. Purcell
Chief Financial Officer
II-1
<PAGE> 17
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
No. Description Page
- - - ------- ----------- ----
<S> <C> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000036506
<NAME> FIRST MANISTIQUE CORP
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JUL-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 13,772
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 12,345
<INVESTMENTS-CARRYING> 17,082
<INVESTMENTS-MARKET> 16,967
<LOANS> 211,156
<ALLOWANCE> 2,690
<TOTAL-ASSETS> 271,447
<DEPOSITS> 236,668
<SHORT-TERM> 6,866
<LIABILITIES-OTHER> 2,464
<LONG-TERM> 0
<COMMON> 5,295
0
0
<OTHER-SE> 19,487
<TOTAL-LIABILITIES-AND-EQUITY> 271,447
<INTEREST-LOAN> 14,589
<INTEREST-INVEST> 1,239
<INTEREST-OTHER> 411
<INTEREST-TOTAL> 16,239
<INTEREST-DEPOSIT> 6,744
<INTEREST-EXPENSE> 7,055
<INTEREST-INCOME-NET> 9,184
<LOAN-LOSSES> 377
<SECURITIES-GAINS> (19)
<EXPENSE-OTHER> 6,547
<INCOME-PRETAX> 3,217
<INCOME-PRE-EXTRAORDINARY> 3,217
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,303
<EPS-PRIMARY> 3.28
<EPS-DILUTED> 3.28
<YIELD-ACTUAL> 5.04
<LOANS-NON> 0
<LOANS-PAST> 24
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,591
<CHARGE-OFFS> 358
<RECOVERIES> 327
<ALLOWANCE-CLOSE> 2,690
<ALLOWANCE-DOMESTIC> 330
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 2,360
</TABLE>
