<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
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 03502
FIRST NATIONAL OF NEBRASKA, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Nebraska 47-0523079
- ------------------------------- -----------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
One First National Center Omaha, NE 68102
- ------------------------------------------------ -----------------------------
(Address of principal executive offices) (Zip Code)
(402) 341-0500
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
Not applicable
- --------------------------------------------------------------------------------
(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 periods 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
--- ---
Applicable Only to Issuers Involved in Bankruptcy
Proceedings During the Preceding Five Years
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by the court. Yes No
--- ---
Applicable Only to Corporate Issuers
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 346,767.
<PAGE>
2
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Part I. Item 1. Financial Statements
<TABLE>
<CAPTION>
Company for which filed: FIRST NATIONAL OF NEBRASKA, INC.
Condensed Consolidated Balance Sheets (1) (4)
September 30, 1995 Dec 31, 1994
=================================================================================================
(Unaudited) (NOTE)
(Amounts in Thousands)
<S> <C> <C>
ASSETS
Cash and Due from Banks $ 236,749 $ 267,625
Fed Funds Sold and Other Short-Term Investments 171,690 98,980
Securities: Market Value of $834,973,000 at 09-30-95
and $764,117,000 at 12-31-94 832,709 782,050
Loans 4,398,872 3,944,807
Less: Allowance for loan losses 64,915 55,265
Unearned income 11,380 10,889
----------------------------
Net Loans 4,322,577 3,878,653
Premises and Equipment 102,073 87,968
Other Assets 169,612 146,631
----------------------------
TOTAL ASSETS $5,835,410 $5,261,907
============================
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-Interest Bearing Deposits $ 540,143 $ 533,762
Interest Bearing Deposits 4,391,704 3,849,328
----------------------------
Total Deposits 4,931,847 4,383,090
Federal Funds Purchased & U.S. Treasury Notes 56,121 99,363
Commercial Paper and Commercial Paper Based Borrowings 284,690 302,253
Other Liabilities 68,735 46,519
Long-Term Debt and Other Interest-Bearing Obligations 86,234 71,466
----------------------------
Total Liabilities $5,427,627 $4,902,691
Common Stock, par value $5 a share; 346,767 shares
authorized, issued, and outstanding 1,734 1,734
Additional Paid-in Capital 2,604 2,604
Retained Earnings 403,445 354,878
----------------------------
Total Stockholders' Equity 407,783 359,216
----------------------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $5,835,410 $5,261,907
============================
</TABLE>
NOTE: The balance sheet at December 31, 1994 has been taken from the audited
financial statements at that date and condensed.
<PAGE>
3
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
<TABLE>
<CAPTION>
Company for which filed: FIRST NATIONAL OF NEBRASKA, INC.
Condensed Consolidated Statements of Income (1) Quarter Ended Sept 30 Nine Months Ended Sept 30
(Unaudited) 1995 1994 1995 1994
============================================================================================================
<S> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans and lease financing $162,820 $125,747 $468,716 $354,641
Interest on securities:
Taxable interest income 11,416 7,638 33,727 23,090
Non-taxable interest income 346 366 1,173 1,179
Interest on federal funds sold and other
short-term investments 3,184 1,899 7,696 3,741
----------------------------------------------------
Total Interest Income 177,766 135,650 511,312 382,651
Interest Expense:
Interest on deposits 62,360 39,516 171,628 106,871
Interest on commercial paper and commercial
paper based borrowings 4,557 1,994 13,947 5,544
Interest on federal funds purchased and U.S.
Treasury notes 796 601 2,638 1,577
Interest on long-term debt and other obligations 1,839 1,075 5,870 3,000
----------------------------------------------------
Total Interest Expense 69,552 43,186 194,083 116,992
----------------------------------------------------
Net Interest Income 108,214 92,464 317,229 265,659
Provision for loan losses 27,544 16,380 71,129 49,837
----------------------------------------------------
Net Interest Income after Provision for losses 80,670 76,084 246,100 215,822
Other Operating Income:
Processing services 18,859 11,600 45,635 31,681
Deposit services 4,511 5,055 14,141 15,063
Trust and investment services 3,772 3,373 11,245 10,259
Commissions 1,798 1,150 8,290 7,000
Miscellaneous 11,660 7,748 35,148 21,081
----------------------------------------------------
Total Other Operating Income 40,600 28,926 114,459 85,084
----------------------------------------------------
Income before Other Operating Expenses 121,270 105,010 360,559 300,906
Other Operating Expense:
Salaries and employee benefits 30,249 24,469 89,690 72,343
Loan services purchased 18,406 10,392 48,521 27,777
Communications and supplies 13,940 12,764 42,373 37,340
Equipment rentals, depreciation and maintenance 7,079 4,561 17,780 13,921
Purchased processing 5,498 5,291 16,066 15,394
Net occupancy expense of premises 3,587 4,608 14,999 13,401
Other professional services purchased 3,116 717 8,967 7,392
Federal deposit insurance (218) 2,198 4,475 6,309
Miscellaneous 7,245 5,777 21,281 15,132
----------------------------------------------------
Total Other Operating Expense 88,902 70,777 264,152 209,009
----------------------------------------------------
Income before Income Taxes 32,368 34,233 96,407 91,897
Applicable Income Taxes:
Current 13,261 12,990 41,251 37,069
Deferred (824) (154) (5,038) (2,590)
----------------------------------------------------
Total Income Tax Expense 12,437 12,836 36,213 34,479
----------------------------------------------------
Net Income $19,931 $21,397 $60,194 $57,418
====================================================
Average Shares Outstanding during Period 346,767 346,767 346,767 346,767
Net Income per Share (2) $57.48 $61.70 $173.59 $165.58
====================================================
</TABLE>
<PAGE>
4
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
<TABLE>
<CAPTION>
Company for which filed: FIRST NATIONAL OF NEBRASKA, INC.
Condensed Consolidated Statement of Cash Flows (1)
(Unaudited) Nine Months Ended Sept 30
Increase/(Decrease) in Cash and Cash Equivalents 1995 1994
=======================================================================================================
(Amounts in Thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $60,194 $57,418
Adjustments to reconcile net income to net cash
provided/(used) by operating activities:
Provision for loan losses 71,129 49,837
Depreciation and amortization 16,020 9,932
Provision for deferred taxes (5,038) (2,590)
Sales of trading account securities ---- 661,024
Purchases of trading account securities ---- (655,607)
Origination of loans for resale (23,991) (54,234)
Proceeds from the sale of loans 25,879 63,713
Securitization of loans 43,000 ----
Other asset and liability activity, net 8,862 (1,907)
--------------------------
Net cash flows from operating activities 196,055 127,586
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of businesses (3) 28,041 104,832
Maturities of securities held-to-maturity 247,730 156,629
Purchases of securities held-to-maturity (274,867) (143,253)
Sales of securities available-for-sale ---- 4,793
Net increase in customer loans (442,862) (447,634)
Purchases of premises and equipment (19,075) (19,634)
Other, net 792 5,471
--------------------------
Net cash flows from investing activities (460,241) (338,796)
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in customer deposits 381,085 333,091
Net change in federal funds purchased (43,442) (18,339)
Issuance of debt 38,320 35,588
Principal repayments of debt (40,060) (30,113)
Net change in commercial paper and
commercial paper based borrowings (18,187) 46,184
Cash dividends paid (11,696) (13,201)
--------------------------
Net cash flows from financing activities 306,020 353,210
--------------------------
Net change in cash and cash equivalents 41,834 142,000
Cash and cash equivalents at beginning of year 366,605 293,667
--------------------------
Cash and cash equivalents at end of year $408,439 $435,667
==========================
Cash paid during the year for:
Interest $185,849 $113,875
Income taxes $40,851 $34,439
NON-CASH INVESTING AND FINANCING ACTIVITIES
Increase to assets and liablilities for business and property acquisitions $25,950 ----
</TABLE>
<PAGE>
5
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
September 30, 1995
1. The consolidated financial statements of First National of Nebraska and
subsidiaries (the Company) include the accounts of the parent company; its
substantially wholly-owned subsidiary, First National Bank of Omaha and its
wholly-owned subsidiaries (the Bank); its wholly-owned other banking
subsidiaries; and its nonbanking subsidiaries. All material intercompany
transactions, profits and balances have been eliminated.
The financial statements contained herein should be read in conjunction with
the Consolidated Financial Statements included in the Company's 1994 Annual
Report to Shareholders and Form 10-K.
The information furnished herein reflects all adjustments, which consists
only of normal recurring accruals, which are, in the opinion of management,
necessary to reflect a fair statement of the interim period. Certain
reclassifications were made to prior year's financial statements to conform
them to the improved classifications used in 1995. These reclassifications
had no effect on net income.
2. Net income per share is calculated by dividing net income by the average
number of shares outstanding during the period.
3. In business combinations during 1995, the Company assumed liabilities of
$169,394,000 and non-cash assets of $156,551,000.
4. The following methods and assumptions were used by the Company in estimating
fair values of financial instruments as discussed herein. Fair values of
financial instruments that are not actively traded are based on market
prices of similar instruments and/or valuation techniques using market
assumptions. Although management uses its best judgment in estimating the
fair value of these financial instruments, there are inherent limitations in
any estimation technique. Therefore, the fair value estimates presented
herein are not necessarily indicative of the amounts which the Company could
realize in a current transaction.
GENERAL ASSUMPTIONS: The Company assumes that the carrying amount of short-
term financial instruments approximates their fair value. For these
purposes, short-term is defined as any item that matures, reprices, or
represents a cash transaction between willing parties within six months or
less of the measurement date.
Securities: The fair value of the Company's securities is based on the
quoted market prices at September 30, 1995 and December 31, 1994. The
carrying amount and fair value of the Company's securities at September 30,
1995 was $832,709,000 and $834,973,000, respectively. The carrying amount
and fair value of the Company's securities at December 31, 1994 was
$782,050,000 and $764,117,000, respectively.
Loans: The fair value of the Company's loans have been estimated using two
methods: 1) as indicated earlier, the carrying amount of short-term loans
approximate fair value; and 2) for all other loans, discounting of projected
future cash flows. When using the discounting method, loans are gathered by
homogeneous groups with similar terms and conditions and discounted at a
target rate at which similar loans would be made to borrowers as of
September 30, 1995 and December 31, 1994. In addition, when computing the
estimated fair value for all loans, general reserves for loan losses are
subtracted from the calculated fair value for consideration of credit
issues. At September 30, 1995, the carrying amount and
<PAGE>
6
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
fair value of the Company's loans was $4,284,971,000 and $4,439,027,000,
respectively. The carrying amount of loans for September 30, 1995 consists of
gross loans of $4,398,872,000 less allowance for loan losses of $64,915,000 less
net leases of $48,986,000. The fair value of loans for September 30, 1995
consists of gross loans of $4,552,928,000 less allowance for loan losses and net
leases. At December 31, 1994, the carrying amount and fair value of the
Company's loans was $3,840,566,000 and $3,976,700,000, respectively. The
carrying amount of loans for 1994 consists of gross loans of $3,944,807,000 less
allowance for loan losses of $55,265,000 less net leases of $48,976,000. The
fair value of loans for 1994 consists of gross loans of $4,080,941,000 less
allowance for loan losses and net leases.
Deposits: The methodologies used to estimate the fair value of deposits are
similar to the two methods used to fair value loans. Deposits are gathered in
homogeneous groups and the future cash flows of these groups are discounted
using current market rates offered for similar products at September 30, 1995
and December 31, 1994. The carrying amount and fair value of the Company's
deposits at September 30, 1995 was $4,931,847,000 and $4,957,910,000,
respectively. The carrying amount and fair value of the Company's deposits at
December 31, 1994 was $4,383,090,000 and $4,416,880,000, respectively.
Long-term Debt: The fair value of long-term debt and other interest-bearing
obligations is estimated by discounting future cash flows using current market
rates for similar debt instruments. The carrying amount and fair value of long-
term debt and other interest-bearing obligations at September 30, 1995 was
$86,234,000 and $87,045,000, respectively. The carrying amount and fair value
of long-term debt and other interest-bearing obligations at December 31, 1994
was $71,466,000 and $72,143,000, respectively.
Other Financial Instruments: All other financial instruments of a material
nature fall into the definition of short-term and fair value is estimated as the
carrying amount. The carrying amount and fair value at September 30, 1995 of
cash and due from banks was $236,749,000, federal funds sold and other short-
term investments was $171,690,000, and other receivables and interest earned not
collected was $55,285,000, which is included in other assets. The carrying
amount and fair value at December 31, 1994 of cash and due from banks was
$267,625,000, federal funds sold and other short-term investments was
$98,980,000, and other receivables and interest earned not collected was
$51,096,000, which is included in other assets.
The carrying amount and fair value at September 30, 1995 was $56,121,000 for
federal funds purchased and U.S. Treasury notes, commercial paper and commercial
paper based borrowings of $284,690,000, and accounts payable and accrued
interest payable of $37,399,000, which is included in other liabilities. The
carrying amount and fair value at December 31, 1994 was $99,363,000 for federal
funds purchased and U.S. Treasury notes, commercial paper and commercial paper
based borrowings of $302,253,000, and accounts payable and accrued interest
payable of $33,033,000, which is included in other liabilities.
Off-Balance Sheet Financial Instruments: All material amounts of off-balance
sheet items are characterized as short-term instruments because of the
conditions of the contract and repricing ability. The carrying value of all
off-balance sheet instruments approximates the fair value. At September 30,
1995 and December 31, 1994, the Company had unused secured loan commitments of
$964 million and $869 million, respectively; standby letters of credit of $36
million and $43 million, respectively; and unused consumer credit card lines of
$9,000 million and $7,400 million, respectively.
The information presented herein is based on pertinent information available to
management as of September 30, 1995 and December 31, 1994. Although management
is not aware of any factors that would significantly affect the estimated fair
value amounts, such amounts have not been comprehensively revalued since that
time, and the current estimated fair value of these financial instruments may
have changed significantly since that point in time.
<PAGE>
7
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Part I. Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
The Company consists of the parent company, which is a Nebraska-based interstate
bank holding company, and its consolidated subsidiaries. Its principal assets
include First National Bank of Omaha; First National Bank and Trust Company of
Columbus; First National Bank, North Platte; Platte Valley State Bank & Trust
Company, Kearney; Fremont National Bank & Trust Company; First National Bank of
Kansas, Overland Park, Kansas; First National of Colorado, Inc., and its wholly-
owned subsidiaries First National Bank, Fort Collins, Colorado and Union Colony
Bank, Greeley, Colorado; and First National Bank South Dakota, Yankton, South
Dakota. The Company also has nonbanking subsidiaries, which in the aggregate are
not material.
The Company is governed by various regulatory agencies. Bank holding companies
and their nonbanking subsidiaries are regulated by the Federal Reserve Board.
National banks are primarily regulated by the Office of the Comptroller of the
Currency (OCC). All federally-insured banks are also regulated by the FDIC.
The Company's banking subsidiaries include seven national banks and two state-
chartered banks, all of which are insured by the FDIC. The state-chartered
banks are also regulated by state banking authorities.
The Bank conducts a significant consumer credit card service under license
arrangements with VISA USA and MasterCard International, Inc. First National
Bank of Omaha was one of the originators of the bank credit card industry and as
a result has over 40 years experience in this business. The Bank's credit card
customers are located throughout the United States, but primarily in the
Midwest. At December 31, 1994, the Bank ranked among the top card issuing
entities based on number of credit cards issued. Growth in volume and stable
credit card loan loss ratios have proved profitable for the Company. Gross
revenues associated with credit card loans have declined slightly from 59% of
total gross revenues in 1992 to 56% in 1994. There is significant competition
in the credit card industry from other financial institutions and from
nonbanking entities. With the increased competition, there is downward pressure
on rates and fees charged to cardholders. All these factors work to put
pressure on the profitability of the credit card business.
The Company provides various substantial third-party processing services
including automated clearinghouse transactions, merchant credit card processing,
and check processing. The Company has increased fee income through the
significant expansion of these services. With the increased volumes processed,
the Company is subjected to greater pricing and technology risks. The Company
continues to closely monitor the risks and competitive conditions.
<PAGE>
8
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
CAPITAL RESOURCES:
The Company and its banking subsidiaries are required to maintain minimum
capital in accordance with federal regulations. Generally, these regulations
are: 1) 3% for Tier I capital to total assets (as defined); 2) 4% for Tier I
capital to risk-adjusted assets; and 3) 8% for Total capital (as defined) to
risk-adjusted assets. The stated capital of the Company and its banking
subsidiaries is subject to qualitative judgments by the regulators about
components, risk weightings, and other factors. The Company and its banking
subsidiaries exceeded these minimum regulatory capital requirements at
September 30, 1995.
The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA)
imposed a significant amount of new regulation on the banking industry. A
substantial part of FDICIA's regulatory restrictions is focused on the capital
level of financial institutions and the relative risk of their assets and
liabilities. Most of the regulatory mandates of FDICIA now have been
implemented by the federal banking agencies through final regulations. These
include regulations relating to corrective regulatory action, standards of
safety and soundness and various deposit insurance reforms.
Under federal banking laws and regulations, the Company's banking subsidiaries
are reviewed pursuant to a supervisory framework for prompt corrective action.
This framework consists of five categories that are defined by different levels
of capital. For the top-rated well-capitalized category, an institution must
meet capital ratios of 5.0% for Tier I capital to total assets (as defined);
6.0% for Tier I capital to risk-adjusted assets; and 10.0% for Total capital to
risk-adjusted assets. At September 30, 1995, First National Bank of Omaha and
all other banking subsidiaries of the Company exceeded these minimum
requirements for the top-rated well-capitalized category established by the
supervisory agencies.
At periodic intervals, the banking regulators routinely examine the financial
statements of the Company and its subsidiaries as part of their legally
prescribed oversight of the banking industry. Based on these examinations, the
regulators can direct the financial statements to be adjusted in accordance with
their findings. The regulators have not proposed material adjustments to the
financial statements this year nor in prior years.
LIQUIDITY AND INTEREST MARGIN MANAGEMENT:
The Company and its banking subsidiaries closely manage liquidity and interest
margins.
Liquidity is the management of funding demands for loan growth and deposit
withdrawals balanced against funds generated by loan repayments, the maturity of
investment securities and core deposit growth. The Company believes liquidity
is found on both sides of the balance sheet.
Liquidity is evaluated by the Company using three distinct processes:
addressing daily liquidity needs; the use of non-core deposits; and expected
loan demands against liquidity. The Company evaluates its interest margin in
conjunction with liquidity. The Company does not use financial instruments such
as hedges, swaps, futures, or other derivative products. Computer-based models
are utilized to forecast how potential interest rate scenarios and balance sheet
strategies will interact with the Company's liquidity and interest margin
requirements.
The Company maintains commercial paper throughout the year. At September 30,
1995, the Company had facilities to access the commercial paper market up to a
maximum of $340,000,000, of which $284,690,000 was outstanding and maturing in
76 days. Commercial paper is supported by loan commitments from various
financial institutions, and is distributed on a national basis with proceeds
used to finance consumer receivables.
<PAGE>
9
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
In September 1995, the Bank entered into a liquidity asset purchase facility.
This facility allows the Bank to securitize a maximum of $200,000,000 of credit
card receivables. At September 30, 1995, loans of $43,000,000 have been
securitized under this facility.
INTEREST SENSITIVITY ANALYSIS:
<TABLE>
<CAPTION>
Greater than
Three Three Months One Year
Months Less Than Through Over
Or Less One Year Five Years Five Years TOTAL
========================================================================================================
(Amounts in Thousands Except Percents)
<S> <C> <C> <C> <C> <C>
As of September 30, 1995:
Earning assets:
Investment activities $284,643 $197,937 $502,655 $19,164 $1,004,399
Lending activities 3,392,681 254,295 569,086 182,810 4,398,872
------------------------------------------------------------------
Total earning assets 3,677,324 452,232 1,071,741 201,974 5,403,271
Interest bearing liabilities 1,905,640 1,400,370 1,493,327 19,412 4,818,749
------------------------------------------------------------------
Interest sensitive GAP $1,771,684 ($948,138) ($421,586) $182,562 $584,522
==================================================================
GAP as a percent of total
earning assets 32.8% -17.6% -7.8% 3.4% 10.8%
==================================================================
Cumulative Interest sensitive GAP $1,771,684 $823,546 $401,960 $584,522
Cumulative GAP as a percent
of total earning assets 32.8% 15.2% 7.4% 10.8%
==================================================================
</TABLE>
The Company closely monitors the repricing of assets and liabilities to obtain
an acceptable interest spread in periods of rising or falling rates. Through
the use of product selection and product pricing, the Company manages asset and
liability volumes and interest spreads.
RESULTS OF OPERATIONS
Interest Income and Interest Expense:
Interest income for the third quarter and the first nine months of 1995
increased 31.0% and 33.6%, respectively, as the result of a 21.9% increase in
earning assets.
Interest expense for the third quarter and the first nine months of 1995
increased 61.1% and 65.9%, respectively, due to an increase in paying
liabilities volume. Interest-bearing deposit volume increased by 19.8%, long-
term debt volume increased by 27.2%, commercial paper and commercial paper based
borrowings increased by 34.4%, and federal funds purchased and U. S. Treasury
note volume increased by 74.5%.
Provision for loan losses:
The Company evaluates its allowance for loan losses on a monthly basis.
Management's assessment of loan loss allowance adequacy is based upon a review
of numerous items including: collateral values, delinquencies, non-accruals, and
payment histories.
<PAGE>
10
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Loan loss provision for the third quarter and the first nine months of 1995
increased 68.2% and 42.7%, respectively, due to a 22.1% increase in gross loan
volume and management's desire to increase the reserves in keeping with an
anticipated downturn in the economy.
Other Operating Income:
Total other operating income for the third quarter and the first nine months of
1995 rose 40.4% and 34.5%, respectively. Due to increased volumes of processed
items for new and existing customers, processing services income rose 62.6% and
44.0%, third quarter and year-to-date, respectively. Income related to trust
and other miscellaneous income also increased as a result of the general growth
of the Company while deposit services income decreased slightly.
Other Operating Expense:
Total other operating expense for the third quarter and the first nine months of
1995 rose 25.6% and 26.4%, respectively. Loan services purchased expense for
the third quarter and the first nine months of 1995 increased by 77.1% and
74.7%, respectively, due to processing additional loan volumes and the promotion
and acquisition of new loan relationships. Expenses related to salaries,
communications and supplies, equipment rentals, depreciation and maintenance,
other professional services and other miscellaneous expense increased as a
result of the general growth of the Company which was partially offset by a
decrease in federal deposit insurance.
Accounting:
Statement of Financial Accounting Standards No. 114 (SFAS114), "Accounting by
Creditors for Impairment of a Loan", as amended by Statement of Financial
Accounting Standards No. 118 (SFAS118), "Accounting by Creditors for Impairment
of a Loan - Income Recognition and Disclosures", are effective for fiscal years
beginning after December 15, 1994. These Statements require that qualifying
impaired loans be measured based on the present value of expected future cash
flows discounted at either the loan's effective interest rate, the loan's
observable market price, or the fair value of the collateral if the loan is
collateral dependent. The Company adopted these Statements on January 1, 1995
with no material impact to its consolidated financial statements.
Statement of Financial Accounting Standards No. 121 (SFAS121), "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
Of", is effective for fiscal years beginning after December 15, 1995. SFAS121
requires qualifying long-lived assets and certain identifiable intangibles to be
disposed of be reported at the lower of carrying amount or fair value less costs
to sell. The Company believes that the adoption of this Statement will not have
a material impact to its consolidated financial statements.
Statement of Financial Accounting Standards No. 122 (SFAS122), "Accounting for
Mortgage Servicing Rights", is effective for fiscal years beginning after
December 15, 1995. SFAS122 requires a mortgage banking enterprise to recognize
as separate assets rights to service mortgage loans for others, however those
servicing rights are acquired. This Statement also requires a mortgage banking
enterprise to assess its capitalized mortgage servicing rights for impairment
based on the fair value of those rights. The Company believes that the adoption
of this Statement will not have a material impact to its consolidated financial
statements.
<PAGE>
11
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Part II. Other Information
Items 1,2,3,4,5, and 6(b):
- ------------------------------
Not applicable or negative response.
Item 6(a):
- --------------
The Articles of Incorporation and By-Laws of the Parent
Company (previously filed as Exhibit Nos. 1 and 2,
respectively, to Form 10-K filed with the Securities
Exchange Commission by the Company on March 31, 1993) are
incorporated herein by reference.
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 NATIONAL OF NEBRASKA, INC.
By Bruce R. Lauritzen
---------------------------------------------
Bruce R. Lauritzen
President/Treasurer, Principal Accounting
and Financial Officer, and Director
Dated: October 20, 1995
-------------------------
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 236,749
<INT-BEARING-DEPOSITS> 4,391,704
<FED-FUNDS-SOLD> 171,690
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 832,709
<INVESTMENTS-MARKET> 834,973
<LOANS> 4,398,872
<ALLOWANCE> 64,915
<TOTAL-ASSETS> 5,835,410
<DEPOSITS> 4,931,847
<SHORT-TERM> 0<F1>
<LIABILITIES-OTHER> 68,735
<LONG-TERM> 86,234
<COMMON> 1,734
0
0
<OTHER-SE> 406,049
<TOTAL-LIABILITIES-AND-EQUITY> 5,835,410
<INTEREST-LOAN> 468,716
<INTEREST-INVEST> 34,900
<INTEREST-OTHER> 7,696
<INTEREST-TOTAL> 511,312
<INTEREST-DEPOSIT> 171,628
<INTEREST-EXPENSE> 194,083
<INTEREST-INCOME-NET> 317,229
<LOAN-LOSSES> 71,129
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 264,152
<INCOME-PRETAX> 96,407
<INCOME-PRE-EXTRAORDINARY> 60,194
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 60,194
<EPS-PRIMARY> 173.59
<EPS-DILUTED> 173.59
<YIELD-ACTUAL> 0<F1>
<LOANS-NON> 0<F1>
<LOANS-PAST> 0<F1>
<LOANS-TROUBLED> 0<F1>
<LOANS-PROBLEM> 0<F1>
<ALLOWANCE-OPEN> 0<F1>
<CHARGE-OFFS> 0<F1>
<RECOVERIES> 0<F1>
<ALLOWANCE-CLOSE> 0<F1>
<ALLOWANCE-DOMESTIC> 0<F1>
<ALLOWANCE-FOREIGN> 0<F1>
<ALLOWANCE-UNALLOCATED> 0<F1>
<FN>
<F1> This information is not required for interim reporting purposes.
</FN>
</TABLE>
