<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 June 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: August 4, 1995 Number of shares: 699,774
<PAGE> 2
INDEX
FIRST MANISTIQUE CORPORATION AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
Consolidated balance sheets - June 30, 1995 (Unaudited)
and December 31, 1994 I-1-2
Consolidated statements of income - three and six months
ended June 30, 1995 and 1994 (Unaudited) I-3
Consolidated statements of cash flows - six
months ended June 30, 1995 and 1994 (Unaudited) I-4-5
Notes to consolidated financial statements - June 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
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FIRST MANISTIQUE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS
June 30, December 31,
1995 1994
--------------------------
(Unaudited)(000's omitted)
<S> <C> <C>
Cash and cash equivalents:
Cash and noninterest bearing deposits $ 10,991 $ 10,219
Federal funds sold 1,700 4,100
-------- --------
TOTAL CASH AND CASH EQUIVALENTS 12,691 14,319
Interest bearing time deposits 1,894 2,422
Investment securities:
Securities available for sale 13,156 21,929
Securities held to maturity 14,399 14,446
(estimated fair value 1995 $13,436 and 1994 $13,778) -------- --------
TOTAL INVESTMENT SECURITIES 27,555 36,375
Loans: (net of unearned income)
Commercial, financial and agricultural loans 84,206 78,138
Real estate loans - mortgage 59,935 56,987
Installment loans 33,079 26,785
Leases 27,334 21,259
-------- --------
TOTAL LOANS 204,554 183,169
Less: Allowance for loan losses (2,591) (2,350)
-------- --------
NET LOANS 201,963 180,819
Bank premises and equipment 10,046 9,803
Accrued interest receivable and other assets 8,251 9,361
-------- --------
TOTAL ASSETS $262,400 $253,099
======== ========
</TABLE>
I-1
(continued)
<PAGE> 4
LIABILITIES
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
--------------------------
(Unaudited, 000's omitted)
<S> <C> <C>
Deposits:
Non interest-bearing $ 23,473 $ 24,272
Interest-bearing 202,732 199,864
-------- --------
TOTAL DEPOSITS 226,205 224,136
Notes Payable 9,566 3,552
Accrued interest payable and other liabilities 2,545 2,927
-------- --------
TOTAL LIABILITIES 238,316 230,615
-------- --------
STOCKHOLDERS' EQUITY
Common stock, no par value;
2,000,000 shares authorized
699,774 shares issued and outstanding in 1995;
699,024 shares in 1994 5,233 5,190
Capital surplus 7,847 7,847
Retained earnings 11,064 10,015
Net unrealized loss on securities available for sale (60) (568)
(net tax of $30 in 1995 and $284 in 1994) -------- --------
TOTAL STOCKHOLDERS' EQUITY 24,084 22,484
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $262,400 $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 Six Months Ended
June 30, June 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 $4,937 $3,027 $ 9,367 $5,380
Interest on investment securities:
Taxable 365 496 794 839
Exempt from Federal income taxes 45 90 98 174
Other interest income 113 23 268 78
------ ------ ------- ------
TOTAL INTEREST INCOME 5,460 3,636 10,527 6,471
Interest Expense:
Interest on deposits 2,271 1,396 4,414 2,577
Interest on borrowings 120 49 183 82
------ ------ ------- ------
TOTAL INTEREST EXPENSE 2,391 1,445 4,597 2,659
------ ------ ------- ------
NET INTEREST INCOME 3,069 2,191 5,930 3,812
Provision for loan losses 78 20 147 20
------ ------ ------- ------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 2,991 2,171 5,783 3,792
Non-Interest Income
Service charges on deposit accounts 150 107 297 182
Securities gains (losses) (23) 6 (19) 60
Other 223 129 439 250
------ ------ ------- ------
TOTAL NON-INTEREST INCOME 350 242 717 492
Non-Interest Expenses:
Salaries & employee benefits 914 678 1,835 1,262
Occupancy expense 160 109 311 203
Furniture and equipment expense 233 131 431 251
Other 901 719 1,746 1,277
------ ------ ------- ------
TOTAL NON-INTEREST EXPENSES 2,208 1,637 4,323 2,993
Income before income taxes 1,133 776 2,177 1,291
Income taxes 349 137 618 228
------ ------ ------- ------
NET INCOME $ 784 $ 639 $1 ,559 $1,063
====== ====== ======= ======
NET INCOME PER SHARE $ 1.12 $ 1.08 $ 2.23 $ 1.94
====== ====== ======= ======
Dividends declared per share $ 0.24 $ 0.18 $ 0.47 $ 0.18
====== ====== ======= ======
</TABLE>
(Concluded)
See notes to consolidated financial statements
I-3
<PAGE> 6
CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
Six Months Ended
June 30
--------------------------
1995 1994
--------------------------
(Unaudited) (000's omitted)
<S> <C> <C>
Net income $ 1,559 $ 1,063
Adjustments to reconcile net income to net cash
provided by operating activities
Provision for possible losses 147 20
Depreciation 388 246
Amortization 75 165
Accretion (5) (60)
(Gains) losses on investment securities 19 (171)
Increase in interest receivable and other assets (591) (235)
Increase in interest payable and other liabilities 1,040 87
Gains on sale of bank premises and equipment (41) 0
-------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,591 1,115
Cash Flows From Investing Activities:
Held to maturity securities purchased (1,511) (1,565)
Proceeds from maturities of held to maturity securities 1,408 1,715
Purchase of securities available for sale (974) (5,026)
Proceeds from sales of securities available for sale 9,014 3,042
Proceeds from maturities of securities available for sale 1,997 2,185
Net increase in loans (21,707) (16,473)
Time deposits matured 3,628 100
Time deposits purchased (3,100) 0
Purchase of bank premises and equipment (590) (1,361)
Acquisition of Bank of Stephenson, net of cash and
cash equivalents acquired 0 (2,034)
-------- --------
NET CASH USED IN INVESTING ACTIVITIES (11,835) (19,417)
Cash Flows From Financing Activities:
Net increase in deposits 2,069 8,387
Increase in notes payable 6,014 4,750
Payment of dividends (510) (301)
Proceeds from stock issuance 43 215
Purchase of treasury shares 0 (7)
-------- --------
NET CASH PROVIDED BY FINANCING ACTIVITIES 7,616 13,044
-------- --------
NET DECREASE IN CASH AND CASH EQUIVALENTS (1,628) (5,258)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 14,319 11,932
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 12,691 $ 6,674
======== ========
</TABLE>
(continued)
I-4
<PAGE> 7
Supplemental disclosure of cash flow information
Cash paid during the year for:
<TABLE>
<CAPTION>
1995 1994
------ ------
(000's omitted)
<S> <C> <C>
Interest $4,597 $2,659
Income Taxes 592 228
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
JUNE 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 June 30, 1995 and the results of its operations
and its cash flows for the six months then ended. Such adjustments were of a
normal recurring nature.
The results of operations for the six months ended June 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 six months ended June 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, had no impact on the results of operations for the
quarter ended June 30, 1994.
For the six months ended June 30, 1995 the Corporation's average outstanding
shares totaled 699,135 and for the second quarter 1995 average outstanding
shares equaled 699,246. This compares to 548,658 average outstanding for the
six months ended June 30, 1994 and 588,853 average outstanding shares for the
second 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
accompanying 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 six months ending June 30,
1994 would have been as follows:
<TABLE>
<S> <C>
Total Revenue $6,963
Net Income 1,129
Net income per common share $ 2.06
</TABLE>
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 June 30, 1995 and December 31, 1994
are as follows:
<TABLE>
<CAPTION>
Amortized Unrealized Estimated
Cost Gains Losses Fair Value
--------- -------------------- ----------
<S> <C> <C> <C> <C>
06/30/95
SECURITIES AVAILABLE FOR SALE
U.S. Treasury and Federal agencies $11,270 $0 ($97) $11,173
States and Political Subdivisions 477 7 0 484
Other Securities 1,499 0 0 1,499
------- -- ----- -------
13,246 7 (97) 13,156
======= == ===== =======
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
======= == ===== =======
06/30/95
SECURITIES HELD TO MATURITY
U.S. Treasury and Federal agencies 8,698 0 (130) 8,568
States and Political Subdivisions 1,035 2 (1) 1,036
Other Securities 3,881 0 (49) 3,832
------- -- ----- -------
13,614 2 (180) 13,436
======= == ===== =======
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 six months ended June 30,
1995.
HIGHLIGHTS
The results of the Corporation's aggressive expansion activities were evident
in the second quarter of 1995. Net income for the quarter was nearly 23%
higher than the second 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 second quarter of both
1995 and 1994).
Despite its rapid growth, the Corporation has been able to increase its strong
net interest margin (4.99% for the six months ended June 30, 1995, compared to
4.85% in the second quarter of 1994). This has been fueled by strong loan
demand. The loan to deposit ratio moved up to 90.6% at June 30, 1995, from
81.7% at December 31, 1994. Because of the relatively flat deposit balances
the Corporation funded the almost $22 million in loan growth through over six
million in additional borrowings and a reduction in investment securities of
approximately $10.0 million. The remaining funding came from a reduction in
non-interest bearing deposits and minor deposit growth.
The Corporation continues to work at growing its base of stable deposits in
order to meet loan demand. On May 1, 1995 one of the Corporation's bank
subsidiaries entered into an agreement to acquire First of America's Rudyard
branch. This acquisition, which is expected to close September 15, 1995 will
add deposits of approximately nine million dollars. On May 1, 1995 a new
branch was opened on Mackinac Island.
On July 31, 1995 the Corporation announced that a Letter of Intent to Affiliate
had been signed by both South Range State Bank (South Range) and the
Corporation. The proposed affiliation is subject to completion of a definitive
agreement between the parties and approval of various regulatory agencies as
well as the approval of the Shareholders of South Range. The affiliation would
be accomplished through an exchange of cash and notes of First Manistique
Corporation for 100% of the outstanding stock of South Range. South Range had
total assets of $35,193,000 as June 30, 1995.
The Corporation has filed an application with the Financial Institutions Bureau
to merge its two existing bank subsidiaries. The merger is expected to take
place 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 a bank subsidiary.
See note C for discussion of new accounting standards.
RESULTS OF OPERATIONS
The Corporation's net income increased from $1,063,000 for the six months ended
June 30, 1994 to $1,559,000 for the same period in 1995. This 46.7% increase
was greater than 22.7% increase for the second 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.
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 23.5% for
the six months ended June 30, 1995 compared to 82.4 % for the same period 1994
(the Bank of Stephenson accounted for nearly all of the 1994 growth). Second
quarter growth was a slightly lower pace of 17.1% because the effects of the
Bank of Stephenson were fully reflected in the second quarter of 1994. Leases
increased by 28.6% for the first six months ended June 30, 1995. The leases
growth in the second quarter of 1995 was 16.2%, primarily a function of
management's decision on controlled quality asset growth.
Non-interest income increased by 45.7% for the six 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 28.6% of increase.
For the second quarter 1995 the increase was a similar 44.6% 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 44.4% for the first six 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
82.6% of the increase. For the second quarter 1995 the increase was 23.9%. The
reason for the smaller increase in the second quarter reflects the Bank of
Stephenson partial effect on the first quarter 1994 and full effect in the
second 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 six months
ended June 30, 1995 compared to 17.7% 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 second quarter ending June 30,
1995 showed a total cash and cash equivalent of $12,691,000 compared to
$6,674,000 as of June 30, 1994. The primary reason for the increase was an
increase in notes payable of $6,014,000. The major use of the cash flows was a
net increase in loans for second quarter ending June 30, 1995 of $13,501,000,
which compares to an increase of $9,032,000 during second 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 second
quarter of 1995 by $584,000 which compares to a $2,356,000 decrease during the
second quarter of 1994.
Federal Home Loan Advances increased by $3,924,000 during second quarter ending
June 30, 1995. Net proceeds from sales and maturities of securities exceeded
securities purchased by $7,482,000 during second quarter ending June 30, 1995.
Net cash provided by operating activities amounted to $1,155,000 during second
quarter ending June 30, 1995.
I-10
<PAGE> 13
CAPITAL ADEQUACY
(In thousands of dollars)
The Corporations capital position compared to the regulatory minimum
requirements is as follows:
<TABLE>
<CAPTION>
Regulators
06/30/95 06/30/94 Minimum
-------- -------- ----------
<S> <C> <C> <C>
Tier I Capital to Risk Weighted Assets 10.85% 12.41% 4.00%
Tier II Capital to Risk Weighted Assets 12.10% 13.68% 8.00%
Leverage - Tier I to Ave. Total Assets 7.75% 8.53% 4.00%
</TABLE>
LOAN PORTFOLIO AND LOAN LOSS EXPERIENCE
Total loans increased by 46.9% in the first six months of 1995 compared to the
first six months of 1994. This increase was primarily due to the Newberry
acquisition which accounted for nearly 34.0% 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>
06/30/95 06/30/94
-------- --------
<S> <C> <C>
Non-Accrual Loans $ 147 $ 38
Past due 90 days or more still accruing $1,293 $183
Interest Income that would have been recorded
under original terms $ 7 $ 2
Interest Income recorded for loans in non- $ 4 $ 1
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 June 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>
06/30/95 06/30/94
<S> <C> <C>
Beginning Balance of Allowance $2,350 $ 917
Loans Charged Off
Commercial 83 99
Real Estate Mortgage 0 36
Installment 109 148
Total Loans Charged Off 192 283
Recoveries of Loans
Commercial 232 121
Real Estate Mortgage 1 38
Installment 59 52
Total Recoveries on Loans 292 211
Net Charge Offs (Recoveries) (100) 72
Additions to Allowance 147 20
Additions (Deletions) to Allowance from acquisitions (6) 1,076
------ ------
Ending Balance of Allowance $2,591 $1,941
====== ======
</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 June 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 $19,765 $54,776 $ 9,665 $ 84,206
Real Estate Mortgage 1,034 2,270 1,010 $ 4,314
Leases 2,579 12,874 11,881 27,334
------- ------- ------- --------
TOTAL $23,378 $69,920 $22,556 $115,854
======= ======= ======= ========
Loans Maturing after one year with
Fixed int. rates 23,360 13,330
Variable int. rates 46,560 9,226
------- -------
TOTAL $69,920 $22,556
======= =======
</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
INDEX
FIRST MANISTIQUE CORPORATION AND SUBSIDIARIES
<TABLE>
<S> <C>
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
Consolidated balance sheets - June 30, 1995 (Unaudited)
and December 31, 1994 I-1-2
Consolidated statements of income - three and six months
ended June 30, 1995 and 1994 (Unaudited) I-3
Consolidated statements of cash flows - six
months ended June 30, 1995 and 1994 (Unaudited) I-4-5
Notes to consolidated financial statements - June 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> 17
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
six month period ended June 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
Chief Financial Officer
II-1
<PAGE> 18
EXHIBIT INDEX
<TABLE>
<CAPTION>
SEQUENTIALLY
EXHIBIT NUMBERED
NUMBER DESCRIPTION PAGE
------- ----------- ------------
<S> <C> <C>
27 -- Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
The schedule contains summary financial information extracted from the June 30,
1995 interim financial statements of First Manistique Corporation and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> APR-1-1995
<PERIOD-END> JUN-30-1995
<CASH> 10,991
<INT-BEARING-DEPOSITS> 1,894
<FED-FUNDS-SOLD> 1,700
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<INVESTMENTS-CARRYING> 13,614
<INVESTMENTS-MARKET> 13,436
<LOANS> 201,963
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<DEPOSITS> 226,205
<SHORT-TERM> 9,566
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<LONG-TERM> 0
<COMMON> 0
0
5,233
<OTHER-SE> 18,851
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<INTEREST-LOAN> 9,367
<INTEREST-INVEST> 892
<INTEREST-OTHER> 268
<INTEREST-TOTAL> 10,527
<INTEREST-DEPOSIT> 4,414
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<INTEREST-INCOME-NET> 5,930
<LOAN-LOSSES> 147
<SECURITIES-GAINS> (19)
<EXPENSE-OTHER> 4,323
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<INCOME-PRE-EXTRAORDINARY> 2,177
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<EPS-PRIMARY> 2.23
<EPS-DILUTED> 2.23
<YIELD-ACTUAL> 5.04
<LOANS-NON> 147
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<RECOVERIES> 292
<ALLOWANCE-CLOSE> 2,591
<ALLOWANCE-DOMESTIC> 847
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,744
</TABLE>
