FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
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 0-7638
FIRST MICHIGAN BANK CORPORATION
(Exact name of registrant as specified in its charter)
MICHIGAN 38-2024376
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Financial Plaza, Holland, Michigan 49423
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (616) 355-9200
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 [ ]
The number of shares outstanding of each of the issuers classes of common stock,
as of the latest practicable date: 26,475,960 shares of the Company's Common
Stock ($1 par value) were outstanding as of April 30, 1997.
<PAGE>
INDEX
Page
Number
Part I. Financial Information (unaudited):
Item 1.
Financial Statements 3
Notes to Consolidated Financial Statements 6
Item 2.
Management's Discussion and Analysis of
Financial Condition and Results of Operations 6
Part II. Other Information 12
Signatures 14
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
CONSOLIDATED BALANCE SHEETS
March 31, December 31, March 31,
1997 1996 1996
----- ----- ----
(dollars in thousands)
<S> <C> <C> <C>
Assets
Cash and due from banks $ 134,266 $ 155,725 $ 113,890
Federal funds sold 801 12,950 56,550
Total cash and cash equivalents 135,067 168,675 170,440
Interest bearing deposits with banks 2,216 1,713 3,789
Securities:
Available-for-sale 476,097 465,460 387,326
Held-to-maturity (market values $266,051,
$293,595 and $340,888 respectively) 258,561 284,691 331,578
Loans 2,589,899 2,499,038 2,252,039
Allowance for loan losses (32,884) (31,720) (29,253)
Premises and equipment 68,201 68,667 69,334
Other assets 67,186 63,909 59,504
----------- ----------- -----------
Total assets $3,564,343 $3,520,433 $3,244,757
========= ========= =========
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing $ 329,512 $ 361,692 $ 314,513
Interest bearing:
Savings and NOW accounts 1,006,412 1,011,153 920,771
Time 1,697,569 1,643,124 1,568,058
--------- --------- ---------
Total deposits 3,033,493 3,015,969 2,803,342
Short-term borrowings 181,396 163,220 143,939
Other liabilities 40,848 37,563 35,410
Long-term debt 29,537 29,537 5,383
----------- ----------- -----------
Total liabilities 3,285,274 3,246,289 2,988,074
--------- --------- ---------
Shareholders' equity:
Preferred stock - no par value; 1,000,000
shares authorized -- -- --
Common stock - $1 par value; 50,000,000
shares authorized; issued and outstanding:
26,407,079, 26,304,157 and 18,850,726 respectively 26,407 26,304 18,851
Surplus 165,547 163,828 145,899
Retained earnings 89,350 83,374 91,988
Securities valuation, net of tax (2,235) 638 (55)
---------- ------------ -------------
Total shareholders' equity 279,069 274,144 256,683
--------- ---------- ----------
Total liabilities and shareholders' equity $3,564,343 $3,520,433 $3,244,757
========== ========== =========
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF INCOME
Three months ended March 31,
1997 1996
---- ----
(in thousands, except for per share data)
<S> <C> <C>
Interest Income
Interest and fees on loans $59,210 $52,912
Interest on securities:
Taxable 8,627 7,331
Tax-exempt 3,119 3,258
Other interest income 397 1,270
-------- -------
Total interest income 71,353 64,771
------ ------
Interest Expense
Interest on deposits 31,997 29,826
Interest on short-term borrowings 2,163 1,454
Interest on long-term debt 499 133
-------- --------
Total interest expense 34,659 31,413
------ ------
Net Interest Income 36,694 33,358
Provision for loan losses 3,488 2,372
------ -------
Net interest income after provision for loan losses 33,206 30,986
------ ------
Non-Interest Income
Service charges on deposits 3,570 3,254
Trust income 2,274 2,020
Other operating income 4,681 3,333
Securities gains 121 16
------- -------
Total non-interest income 10,646 8,623
------ ------
Non-Interest Expense
Salaries and employee benefits 15,342 14,658
Occupancy 1,901 1,841
Equipment 1,840 1,664
Other operating 9,842 8,370
------ ------
Total non-interest expense 28,925 26,533
------ ------
Income Before Income Taxes 14,927 13,076
Income taxes 4,198 3,497
------ ------
Net Income $10,729 $ 9,579
====== ======
Net income per share $.40 $.36
Cash dividends declared per share .18 .15
Average shares outstanding (in thousands) 26,884 26,746
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
Three months ended March 31,
1997 1996
<S> <C> <C>
Cash Flow From Operating Activities
Net income $ 10,729 $ 9,579
-------- --------
Adjustments to reconcile net income to net cash provided by
operating activities:
Provision for loan losses 3,488 2,372
Origination of loans for sale in secondary market (39,153) (73,259)
Proceeds from sale of loans in secondary market 39,480 73,496
Gain on sale of loans (327) (237)
Mortgage servicing rights (346) --
Net Realized securities gains (121) (16)
Provision for depreciation, amortization and accretion 1,967 1,373
Deferred income taxes (407) (47)
Increase in interest receivable (1,680) (1,988)
Increase in interest payable 580 831
Other - net 3,161 (869)
------- -------
Total adjustments 6,642 1,656
------- -------
Net cash provided by operating activities 17,371 11,235
------- -------
Cash Flows From Investing Activities
Net (increase) decrease in interest bearing deposits with banks (503) 1,572
Purchase of securities available-for-sale (72,541) (107,546)
Proceeds from sales of securities available-for-sale 33,681 --
Proceeds from maturities and prepayments of securities available-for-sale 23,956 44,257
Purchase of securities held-to-maturity (873) (4,193)
Proceeds from maturities and prepayments of securities
held-to-maturity 27,299 25,164
Net increase in loans (92,880) (36,500)
Purchase of premises and equipment and other assets (1,905) (2,930)
------- -------
Net cash used in investing activities (83,766) (80,176)
------- -------
Cash Flows From Financing Activities
Net increase (decrease) in non-interest bearing demand and
savings deposits and NOW accounts (36,921) 4,182
Net increase (decrease) in time deposits 54,445 (14,531)
Net increase in short-term borrowings 18,176 9,616
Repayment of long-term debt -- (295)
Cash dividends and fractional shares (4,735) (3,830)
Proceeds from sales of stock 1,822 1,636
Common stock repurchased -- (2,665)
------- -------
Net cash provided by (used in) financing activities 32,787 (5,887)
------- -------
Decrease in Cash and Cash Equivalents (33,608) (74,828)
Cash and Cash Equivalents, at Beginning of Period 168,675 245,268
------- -------
Cash and Cash Equivalents, at End of Period $135,067 $170,440
======= =======
</TABLE>
<PAGE>
Notes to Consolidated Financial Statements
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 Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements.
1. In the opinion of management of the Company, the unaudited consolidated
financial statements contained herein include all adjustments (consisting
of only normal recurring accruals) necessary to present fairly the
consolidated financial position of the Company as of March 31, 1997, March
31, 1996 and December 31, 1996 and consolidated results of operations and
cash flows for the three months ended March 31, 1997 and 1996.
2. The results of operations for the three months ended March 31, 1997 are not
necessarily indicative of the results to be expected for the full year.
3. The accompanying unaudited consolidated financial statements should be read
in conjunction with the Notes to Consolidated Financial Statements
contained in the Registrant's Form 10-K for the year ended December 31,
1996.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations - Interim Financial Statements
The following is a discussion of First Michigan Bank Corporation's ("Company's")
results of operations for the three months ended March 31, 1997 and 1996, and
also provides information relating to the Company's financial condition,
focusing on its liquidity and capital resources.
On May 5, 1997, the Company and Huntington Bancshares Incorporated, a Maryland
corporation and a registered bank holding company ("Huntington"), entered into
an Agreement and Plan of Merger and a Supplemental Agreement (collectively, the
"Merger Agreements") pursuant to which the Company will be merged with and into
Huntington (the "Merger"). As a result of the Merger, each outstanding share of
the Company's common stock will be converted into 1.05 shares of Huntington
common stock. The Merger is conditioned upon, among other things, approval by a
two-thirds majority vote of the shareholders of both Huntington and the Company,
and receipt of certain regulatory approvals.
Net income of $10,729,000 for the three months ended March 31, 1997 increased
12.0% from the $9,579,000 earned during the three months ended March 31, 1996.
Earnings per share for the first quarter 1997 were $.40 versus $.36 for the same
period in 1996. The increase in earnings is primarily attributable to
improvements in net interest income and non-interest income. Offsetting this, in
part, were increases in the provision for loan losses and non-interest expense.
These changes are addressed in the analyses that follow.
<TABLE>
Net Interest Income First Quarter
- -------------------
(in thousands) 1997 1996
------ -----
<S> <C> <C>
Interest income $71,353 $64,771
Interest expense 34,659 31,413
------ ------
Net interest income $36,694 $33,358
====== ======
</TABLE>
The Company's first quarter 1997 net interest income of $36,694,000 increased by
$3,336,000 (10.0%) when compared with the same period of 1996. As shown in the
following table, in the first quarter of 1997 the rate on interest earning
assets at 8.87% was up four basis points from the year-ago period, while the
rate for interest bearing liabilities also increased four basis points from 4.80
to 4.84. These changes resulted in an unchanged interest spread. The net
interest margin dropped by one basis point between the periods as the relative
volume of free funds declined slightly. The following table shows a comparison
of average volumes, effective yields earned, and rates paid during the
comparable periods.
<PAGE>
<TABLE>
TABLE 1
INTEREST EARNING ASSETS AND INTEREST BEARING
LIABILITIES BY MAJOR CATEGORIES
March 31, 1997 and 1996
------------------------First Quarter Averages---------------------
Volumes In Thousands Yield Earned/
of Dollars Rate Paid
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest Earning Assets
Loans $2,544,086 $2,237,100 9.44% 9.53%
Securities:
Taxable 546,581 484,771 6.29 6.03
Tax-exempt 201,536 206,805 9.28 9.36
Short-term investments 30,957 93,471 5.21 5.47
----------- -----------
Total interest earning assets 3,323,160 3,022,147 8.87 8.83
--------- ---------
Interest Bearing Liabilities
Savings deposits 1,005,951 903,926 3.14 2.83
Time deposits 1,694,313 1,585,349 5.79 5.95
Short-term borrowings 173,088 138,001 5.03 4.23
Long-term debt 29,537 5,465 6.76 9.71
----------- -----------
Total interest bearing liabilities 2,902,889 2,632,741 4.84 4.80
--------- ---------
Interest spread $ 420,271 $ 389,406 4.03% 4.03%
========== ========== ==== ====
Net interest income margin 4.64% 4.65%
==== ====
</TABLE>
Average yields in the above table have been adjusted to a tax-equivalent basis,
and are computed using amortized cost for the securities portfolio. Non-accruing
loans are not significant for the periods presented and are included in the
average loan volumes above.
<PAGE>
Interest Earning Assets/ Interest Income
Interest income for the first quarter of 1997 increased $6,582,000 (10.2%) from
the first quarter of 1996. This is due to the increase in average volume of
earning assets during the first quarter 1997 versus 1996 coupled with a four
basis point increase in average yield on the earning assets between the two
periods as indicated in the previous table. Average quarterly volumes in the
loan portfolio increased 13.7% from those of the first quarter 1996. Commercial
and installment loans showed double digit average volume percentage increases
versus the prior year period averages. Considerable strength was seen in
commercial lending and was due primarily to the continuing economic health of
the Company's marketplace. The relative growth in loans as a percent of total
interest earning assets (from 74.0% for the first quarter of 1996 and 76.5% for
the first quarter of 1997) prompted the four basis point increase in average
yield.
Short term investments consisting almost exclusively of federal funds sold
declined in response to the strong loan portfolio growth. Investment securities
increased at a modest 8.2% rate from period to period. The overall yield of the
securities portfolio remained essentially constant, increasing seven basis
points to 7.09% for the first quarter 1997.
Interest Bearing Liabilities/Interest Expense
The average volume of interest bearing liabilities increased by $270,148,000
when compared to the first quarter 1996. The overall increase in deposits was
approximately evenly balanced between time deposits and the savings categories
at $108,964,000 and $102,025,000 respectively. Time deposit growth occurred
primarily in large certificates of deposit. Regular savings accounts reflected
the bulk of the average savings balance increase at 19% over the prior year's
quarter. The average rate paid on short-term borrowings increased as the Company
made greater use of Federal Home Loan Bank advances during the first quarter
1997. The average rate on long term debt reflects a decrease with the August
1996 conversion of a stand-by loan to a term loan bearing interest at
seven-tenths of a percent over the daily federal funds rate. The overall rate on
quarterly average interest bearing liabilities increased 4 basis points to 4.84%
in this quarter from the first quarter 1996 average rate of 4.80%.
Asset/Liability Management
The Company maintains an asset/liability management process whereby strategies
are developed and implemented to maintain the proper level of liquidity while
maximizing net interest income and minimizing the impact on earnings from major
interest rate changes. Particular attention is placed on the Company's interest
sensitivity, which is the degree net interest income is affected by a change in
market interest rates. Monitoring the balance of assets and liabilities that are
rate sensitive within 90 days and one year is a continuing aspect of this
process. When a cumulative rate sensitive ratio of 1.00 is maintained, both the
interest income and the interest expense increase or decline in tandem with
changes in market interest rates, with the net interest income of the Company
not changing significantly as a direct result.
Liquidity is monitored in order to meet the needs of customers, such as
depositors withdrawing funds or borrowers requesting funds to meet their credit
needs. The Company's current internal and external sources of funds are adequate
to meet its liquidity needs.
Deposit gathering is a principal source of funds for the Company. Development of
consumer deposits is achieved by paying competitive rates and by maintaining an
active marketing program. Larger certificates of deposit, issued to public
authorities and the private sector, also provide an important source of funds
for the Company. These certificates of deposit are purchased primarily from
within the Company's market areas and are considered a reliable source of funds.
The Company also purchases brokered certificates of deposit (CDs) from time to
time for varying periods of up to three years. Such purchases, when they occur,
are made within established Company guidelines. Current balances
<PAGE>
represent approximately 4% of large CDs and less than 1% of total deposits. The
Company made no brokered CD purchases during the first quarter of 1997.
Another principal source of funds derives from routine payments on loans and the
maturities of loans and securities. The Company's securities portfolio is
invested almost exclusively in investment grade issues, and, as discussed in the
next section, the Company continues to have a high-quality loan portfolio. As a
result, payments and maturities on these assets are also a reliable source of
funds.
Externally, the Company has the ability to enter the federal funds market as a
purchaser to meet daily liquidity needs. In addition, the Company has the
ability to enter into funding arrangements with other financial institutions.
<TABLE>
Allowance for Loan Losses First Quarter
- -------------------------
(in thousands) 1997 1996
------- ------
<S> <C> <C>
Balance, at beginning of period $31,720 $28,031
Provision for loan losses 3,488 2,372
Loans charged-off (2,765) (2,007)
Recoveries of loans previously charged-off 441 857
------- -------
Balance, at end of period $32,884 $29,253
====== ======
</TABLE>
The provision for loan losses increased $1,116,000 for the first quarter versus
the 1996 period. The increased provision for the first quarter 1997 is in
response both to the growth in loan portfolio volume and the relatively high
volume of loans charged off, beginning in the third quarter of 1996. While the
first quarter 1997 charge-offs are considerably higher than the comparable
year-ago period, the total reflects a decline from the preceding quarter. The
Company has centralized the consumer loan collection function and anticipates
improvement in collection efforts and corresponding reductions in the relative
level of net charge-offs.
In assessing the adequacy of the loan loss allowance, management considers many
factors, including changes in the type and volume of the loan portfolio, past
loan loss experience, existing and anticipated economic conditions and other
factors that might be pertinent. The amount actually provided in any period may
be more or less than actual net loan charge-offs for that period. The reserve
for loan losses as a percent of loans at March 31, 1997 is 1.27%, unchanged from
the December 31, 1996 ratio.
Net charge-offs in the first quarter 1997 increased $1,174,000 compared to the
first quarter 1996. Net charge-offs as a percent of average loans outstanding
during the quarter were .37% for the first quarter of 1997 and .21% in 1996.
This ratio is within the range of management's expectations and is considered a
reflection of prudent lending practices. Non-accrual, past due 90 day and
renegotiated loans, along with other real estate, in total were .57% and .58% of
total loans outstanding at March 31, 1997 and March 31, 1996 respectively. The
Company has compared favorably with the banking industry nationwide in these
credit ratios.
Following are the balances constituting the nonperforming assets and loans 90
days past due and still accruing as of the end of the respective periods.
<PAGE>
<TABLE>
March 31,
1997 1996
<S> <C> <C>
Non-accrual loans $6,852 $6,010
Renegotiated loans 1,177 756
Other real estate owned 450 1,833
------ -----
Total nonperforming assets $8,479 $8,599
===== =====
Loans 90 days past due $6,171 $4,521
===== =====
Non-interest Income First Quarter
(in thousands) 1997 1996
Total $10,646 $8,623
====== =====
</TABLE>
Non-interest income, which includes service charges on deposit accounts, loan
fees, trust and investment management fees, other operating income and
securities transactions, increased $2,023,000 (23.5%) during the three months
ended March 31, 1997 compared to the same period in 1996. Overall the
non-interest income increases were seen in most major other income categories.
The largest increases were seen in investment products revenues ($425,000),
service charges on deposits ($317,000) and trust income ($254,000). Investment
products income increases reflect the Company's emphasis on expanding existing
and new customer relationships through offering a variety of alternative
investments. Service charges increased with the volume of deposits and
standardization of fee schedules and procedures among the Company's banking
subsidiaries, which began in 1996. Trust income reflected growth in employee
benefit and personal trust balances versus the first quarter of 1996. The
balance of the other income increase originates from improvements in other loan
fees, title insurance and credit insurance revenues.
<TABLE>
Non-interest Expense First Quarter
(in thousands) 1997 1996
<S> <C> <C>
Total $28,925 $26,533
====== ======
</TABLE>
Non-interest expense increased $2,392,000 (9.0%) when comparing the first
quarter of 1997 with 1996. Of the total non-interest expense increase, other
expenses contributed to the majority (60%) of this increase. Other operating
expense increases occurred in professional services, advertising, loan
processing and software which are primarily related to the advancement of retail
strategies. Equipment increases resulted from the expense of depreciation
associated with the investment in retail delivery systems.
The 4.7% increase in salary and benefits expense in the first quarter 1997
versus 1996 is due primarily to annual merit increases along with a 4.8%
increase in staffing. These increases were offset, in part, by a slight
reduction in the provisions for performance based compensation.
<TABLE>
Income Tax Expense First Quarter
(in thousands) 1997 1996
<S> <C> <C>
Total $4,198 $3,497
===== =====
</TABLE>
Fluctuations in income taxes result primarily from changes in the level of
profitability and variations in the amount of tax-exempt income. The 14.2%
increase in pre-tax income and decline in tax-exempt income account for the
increased income tax expense between the periods. The level of tax-exempt income
in the first quarter 1997 declined by approximately $115,000 from 1996.
<PAGE>
Capital
Following is a statement of changes in shareholders' equity for the three month
period ended March 31, 1997 (in thousands):
<TABLE>
<S> <C>
Shareholders' Equity at December 31, 1996 $274,144
Net income 10,729
Shares issued upon exercise of employee stock option plans 368
Shares issued under dividend reinvestment and employee and
director stock purchase plans 1,454
Dividends to shareholders (4,753)
Change in securities valuation, net of tax (2,873)
--------
Shareholders' Equity at March 31, 1997 $279,069
=======
</TABLE>
Shareholder's equity is the Company's principal capital base and it is important
that it increase along with the growth in total assets in order for adequate
capital ratios to be maintained. The ratio of equity to total assets at March
31, 1997 was 7.8%, unchanged from the December 31, 1996 ratio.
The Federal Reserve Board provides guidelines for the measurement of capital
adequacy of bank holding companies. The Company's capital, as adjusted under
these guidelines, is referred to as risk-based capital. The Company's Tier 1
risk-based capital ratio at March 31, 1997 was 9.80%, unchanged from the
December 31, 1996 level, and the total risk-based capital ratio was 11.11% at
March 31, 1997, compared to 11.14% at December 31, 1996. Minimum regulatory Tier
1 risk-based and total risk-based capital ratios under the Federal Reserve Board
guidelines are 4% and 8% respectively.
These same capital ratios are applied at the subsidiary bank level by the
Federal Deposit Insurance Corporation under which a bank is categorized as
well-capitalized under the regulatory framework for prompt corrective action as
one with at least a 10% risk-based capital level. All Company subsidiary banks
met this definition at March 31, 1997 and December 31, 1996.
The capital guidelines also provide for a standard to measure risk-based capital
to total assets. This is referred to as the leverage ratio. The Company's
leverage ratio at March 31, 1997 was 7.73%. The minimum standard leverage ratio
is 3%, and virtually all financial institutions subject to these requirements
are expected to maintain a leverage ratio of 1 to 2 percentage points above the
3% minimum.
In addition to shareholders' equity, the Company had long-term debt of
$29,537,000 at March 31, 1997 and at December 31, 1996.
New Accounting Pronouncements
In June 1996, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards (SFAS) No. 125, "Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities." The Statement
provides consistent standards for distinguishing transfers of financial assets
that are sales from transfers that are borrowings and for derecognition of
liabilities that have been extinguished. This Statement also requires that
liabilities and derivatives incurred or obtained as part of a transfer be
measured initially at fair value. SFAS No. 125 also amends SFAS No. 122 to
provide further guidance on measurement of servicing rights relating to assets
transferred. The Statement is effective for transfers, servicing and
extinguishments occurring
<PAGE>
after December 31, 1996, except for certain provisions which are effective after
December 31, 1997. Adoption of the accounting provisions of this standard has
not had a material effect upon the Company's financial condition or results of
operations.
In February 1997, the FASB issued SFAS No. 128, "Earnings per Share." This
Statement establishes standards for computing and presenting earnings per share
("EPS") and simplifies the standards previously found in APB Opinion 15,
"Earnings per Share," which has been superseded. It replaces the presentation of
"primary" and "fully diluted" EPS with a presentation of "basic" and "diluted"
EPS. Basic EPS excludes dilution and is computed by dividing net income
available to common shareholders by weighted-average number of common shares
outstanding for the period. Diluted EPS is computed similarly to fully diluted
SPE pursuant to APB No. 15. SFAS No. 128 is effective for the Company for both
interim and annual periods ending after December 15, 1997, and requires
restatement of all prior period EPS data presented. Earlier application is not
permitted. Had the Company been required to present EPS data in compliance with
the new Statement, basic and diluted EPS would have been $.41 and $.40
respectively, for the quarter ended March 31, 1997.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
See exhibit index on page 16.
(b) Reports on Form 8-K
There were no reports on Form 8-K filed during the first quarter 1997.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Quarterly Report on Form 10-Q for the quarter
ended March 31, 1997 to be signed on its behalf by the undersigned hereunto duly
authorized.
FIRST MICHIGAN BANK CORPORATION
/s/ Larry D. Fredricks
Larry D. Fredricks
(Executive Vice President and Chief
Financial Officer)
/s/ William F. Anderson
William F. Anderson
(Vice President and Controller)
DATE: May 9, 1997
<PAGE>
EXHIBIT INDEX
The following exhibits are filed herewith.
Exhibits Page
(11) Computation of Earnings Per Share 15
<PAGE>
<TABLE>
Part I, Exhibit (11)
COMPUTATION OF EARNINGS PER SHARE
FIRST MICHIGAN BANK CORPORATION
Three Months Ended March 31,
(In thousands, except per share amounts)
1997 1996
-------- -------
<S> <C> <C>
Average shares outstanding 26,369.5 26,354.8
Net effect of the assumed exercise of stock options
(based on the treasury stock
method using higher of either ending or average) 514.2 391.3
--------- ---------
Total shares 26,883.7 26,746.1
======== ========
Net income $ 10,729 $ 9,579
======== =======
Per share amount $ .40 $ .36
===== =====
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from SEC
10-Q 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-31-1996
<PERIOD-END> MAR-31-1997
<CASH> 134,266
<INT-BEARING-DEPOSITS> 2,216
<FED-FUNDS-SOLD> 801
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 476,097
<INVESTMENTS-CARRYING> 258,561
<INVESTMENTS-MARKET> 266,060
<LOANS> 2,589,899
<ALLOWANCE> 32,884
<TOTAL-ASSETS> 3,564,343
<DEPOSITS> 3,033,493
<SHORT-TERM> 181,396
<LIABILITIES-OTHER> 40,848
<LONG-TERM> 29,537
0
0
<COMMON> 26,407
<OTHER-SE> 252,662
<TOTAL-LIABILITIES-AND-EQUITY> 3,564,343
<INTEREST-LOAN> 59,210
<INTEREST-INVEST> 11,746
<INTEREST-OTHER> 397
<INTEREST-TOTAL> 71,353
<INTEREST-DEPOSIT> 31,997
<INTEREST-EXPENSE> 34,659
<INTEREST-INCOME-NET> 36,694
<LOAN-LOSSES> 3,488
<SECURITIES-GAINS> 121
<EXPENSE-OTHER> 28,925
<INCOME-PRETAX> 14,927
<INCOME-PRE-EXTRAORDINARY> 10,729
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,729
<EPS-PRIMARY> .40
<EPS-DILUTED> .40
<YIELD-ACTUAL> 4.64
<LOANS-NON> 6,852
<LOANS-PAST> 6,171
<LOANS-TROUBLED> 1,177
<LOANS-PROBLEM> 1,862
<ALLOWANCE-OPEN> 31,720
<CHARGE-OFFS> 2,765
<RECOVERIES> 441
<ALLOWANCE-CLOSE> 32,884
<ALLOWANCE-DOMESTIC> 32,884
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
