FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934
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 period ended March 31, 1995
Commission File Number: 0-5893
American Bancorporation
(Exact name of registrant as specified in its charter)
Ohio 31-0724349
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1025 Main Street, Suite 800, Wheeling, WV 26003
(Address of principal executive offices) (Zip Code)
(304) 233-5006
Registrant's telephone number, including area code)
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 practicable date.
April 10, 1995: 1,564,837 shares of Common stock without par value
Number of pages comprising
this report. . . . . . 11
TABLE OF CONTENTS
Part I FINANCIAL INFORMATION
Item 1 Financial Statements
Condensed Consolidated Balance Sheet 3
Condensed Consolidated Statement of Operations 4
Condensed Consolidated Statement of
Cash Flows 5
Condensed Consolidated Statement of
Changes in Stockholders' Equity 6
Notes to the Financial Statements 6
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Part II OTHER INFORMATION
Item 1 Legal Proceedings None
Item 2 Changes in Securities None
Item 3 Defaults Upon Senior Securities None
Item 4 Submission of Matters to a
Vote of Security Holders None
Item 5 Other Information None
Item 6 Exhibits and Reports on Form 8-K None
SIGNATURES 11
American Bancorporation and Subsidiaries
CONSOLIDATED BALANCE SHEET
March 31, December 31,
1995 1994 1994
ASSETS
Cash and due from banks. . . . . . $ 11,129,137 $ 9,640,028 $ 10,704,396
Federal funds sold . . . . . . . . 3,971,000 18,229,000 3,924,000
Securities available for sale. . . . 4,693,430 2,495,600 3,484,431
Investment securities. . . . . . . . 75,115,516 91,454,537 78,189,252
Loans, net of unearned income. . . .239,144,153 146,824,329 228,865,744
Less allowance for loan losses . 3,785,678 3,414,083 3,736,994
235,358,475 143,410,246 225,128,750
Premises and equipment - net . . . 8,649,528 7,904,352 8,672,714
Accrued interest receivable. . . . 1,822,568 1,512,552 2,018,778
Excess of cost over net assets
purchased . . . 2,006,649 1,247,486 2,065,475
Other assets . . . . . . . . . . . 5,879,201 3,004,797 3,927,839
TOTAL ASSETS. . . . . . . . . $348,625,504 $278,898,598 $338,115,635
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits
Non-interest bearing. . . . . . $ 31,847,265 $ 29,022,652 $ 31,208,913
Interest bearing. . . . . . . . .262,717,795 221,418,734 261,131,744
TOTAL DEPOSITS. . . . . . . .294,565,060 250,441,386 292,340,657
Short-term borrowings . . . . . . . 20,129,973 977,746 13,398,181
Accrued interest payable. . . . . 1,227,563 818,097 1,011,323
Other liabilities . . . . . . . . 5,133,012 1,811,324 3,172,455
Long term debt. . . . . . . . . . 1,000,000 - 2,000,000
TOTAL LIABILITIES. . . . . . . .322,055,608 254,048,553 311,922,616
STOCKHOLDERS' EQUITY
Preferred stock. . . . . . . - - -
Common stock without par value, stated value $5,
authorized 6,500,000 shares, issued and
outstanding 1,564,837 at March 31, 1995
and December 31, 1994, and 1,506,612
at March 31, 1994 . . . . . . 7,824,185 7,533,060 7,824,185
Additional paid-in capital . . . . 10,301,982 9,753,871 10,301,982
Retained earnings. . . . . . . . 8,242,229 7,095,114 7,806,852
Unrealized gain on securities
available for sale . . . 201,500 468,000 260,0000
TOTAL STOCKHOLDERS' EQUITY . . . 26,569,896 24,850,045 26,193,019
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $348,625,504 $278,898,598 $338,115,635
American Bancorporation and Subsidiaries
CONSOLIDATED STATEMENT OF OPERATIONS
Three Months ended March 31,
1995 1994
INTEREST INCOME
Loans . . . . . . . . . . . . . $ 5,245,583 $ 3,397,649
Investment securities
Taxable interest income. . . . 1,059,916 1,205,843
Non-taxable interest income. 37,277 44,727
1,097,193 1,250,570
Other short-term investments. 82,480 83,966
Total interest income . . . . 6,425,256 4,732,185
INTEREST EXPENSE
Deposits. . . . . . . . . . . . 2,278,894 1,710,588
Borrowed funds. . . . . . . . 341,525 7,594
Total interest expense. . . 2,620,419 1,718,182
NET INTEREST INCOME . . . . 3,804,837 3,014,003
PROVISION FOR LOAN LOSSES. . . 45,000 80,000
Net interest income after
provision for loan losses. . 3,759,837 2,934,003
OTHER INCOME
Service charges on deposit accounts .150,611 158,405
Securities gains. . . . . - 2,634
Insurance commissions . . . . 30,780 30,909
Other income. . . . . . . . . 199,531 63,817
Total other income. . . . . 380,922 255,765
OTHER EXPENSE
Salaries and employee benefits. 1,396,765 1,102,283
Occupancy and equipment expense . . .533,279 460,518
Other expenses. . . . . . . . 1,152,254 971,944
Total other expense . . . . 3,082,298 2,534,745
Income before income taxes. . 1,058,461 655,023
PROVISION FOR INCOME TAXES . . 388,358 242,700
NET INCOME . . . . . . . . . . $ 670,103 $ 412,323
Average Shares Outstanding . . 1,564,837 1,506,612
NET INCOME PER SHARE . . . $ 0.43 $ 0.27
American Bancorporation and Subsidiaries
CONSOLIDATED STATEMENT OF CASH FLOWS
Three months ended March 31,
1995 1994
Operating Activities:
Net Income. . . . . . . . . . . $ 670,103 $ 412,323
Charges to operations not using
cash in the current period . . 624,546 154,160
Net cash provided by operating
activities 1,294,649 566,483
Investing Activities:
Proceeds from maturities of
investment securities . . . . . 2,002,500 8,215,000
Proceeds from repayment of
investment securities. . . . . . 1,076,608 5,604,080
Proceeds from sales of securities
available for sale. - 3,017,375
Proceeds from redemption of investment
securities available for sale . . . . .55,200 -
Purchase of securities available
for sale . . (1,322,700) -
Purchase of investment securities . . . - (16,263,683)
Net change in loans . . . . . . . . (10,274,725) 3,488,823
Purchase of premises and equipment (120,381) (174,724)
Net cash provided by (applied to)
investing activities . . . . (8,583,498) 3,886,871
Financing Activities:
Net increase in non-interest bearing
demand deposits. . . . . . . . 638,352 3,102,042
Net increase (decrease) in interest
bearing demand and
savings deposits . (6,822,693) 257,322
Net increase (decrease) in
certificates of deposit. . . . . 8,408,744 (957,689)
Net increase (decrease) in short-
term borrowings. . . . . . 6,731,792 (631,001)
Principal repayment of long-term debt . (1,000,000) -
Cash dividends paid . . . . . . . (195,605) (188,326)
Net cash provided by
financing activities. . . . . . . 7,760,590 1,582,348
Net Increase in Cash and
Cash Equivalents. . . 471,741 6,035,702
Cash and Cash Equivalents
Beginning Balance. . . 14,628,396 21,833,326
Cash and Cash Equivalents
Ending Balance . . . . . $15,100,137 $27,869,028
American Bancorporation and Subsidiaries
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Three months ended March 31, 1995 and 1994
1995 1994
Balance at January 1, . . . . . . . . . . $26,193,019 $24,158,048
Net Income . . . . . . . . . . . . . . 670,103 412,323
Dividends declared ($0.15 per share 1995,
$0.125 per share 1994) . . . . (234,726) (188,326)
Unrealized gain/(loss) on securities
available for sale (58,500) 468,000
Balance at March 31,. . . . . . . . . . . .$26,569,896 $24,850,045
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The unaudited interim condensed consolidated financial statements reflect
all adjustments which, in the opinion of management, are necessary to a fair
presentation of the financial position and results of operations. All
adjustments are of a normal recurring nature. The notes to the financial
statements contained in the 1994 Annual Report to Stockholders should be read
in conjunction with these statements.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL POSITION AND RESULTS OF OPERATIONS
SUMMARY
American Bancorporation (the "Company") recognized net income of $670,000
($0.43 per share) for the three months ended March 31, 1995, compared to net
income of $412,000 ($0.27 per share) for the three months ended March 31, 1994.
The Company's assets totalled $348,626,000 at March 31, 1995, compared to
$278,899,000 at March 31, 1994.
The following is a discussion of significant factors influencing operating
performance and change in financial position during the interim periods
presented. The discussion should be read in connection with the 1994 Annual
Report and the financial statements appearing elsewhere herein.
RESULTS OF OPERATIONS
QUARTER COMPARISON
Net Income. Net income for the three months ended March 31, 1995 amounted
to $670,000, compared to net income of $412,000 for the three months ended
March 31, 1994. The increase was the result of increases in net interest
income and other income which were partially offset by an increase in other
expenses.
Net Interest Income. Net interest income before provision for loan losses
for the three months ended March 31, 1995 amounted to $3,805,000, an increase
of $791,000 or 26.2% as compared to the three months ended March 31, 1994.
The increase resulted primarily from a $68,939,000 or 27.2% increase in
average interest earnings assets.
Interest Income. Total interest income for the three months ended March 31,
1995 amounted to $6,425,000, an increase of $1,693,000 or 35.8% as compared to
the same period in 1994. The increase resulted primarily from a $68,939,000
or 27.2% increase in the average volume of earning assets and a 51 basis point
increase in the average yield on earning assets. Average loans outstanding
increased $89,004,000 or 60.0%. Average real estate loans increased
$71,007,000 or 132.4%, average commercial loans increased $13,396,000 or 30.4%
and average installment loans increased $4,601,000 or 9.1%. The average yield
on loans decreased from 9.16% in 1994 to 8.84% in 1995. Average investment
securities and other short-term investments outstanding decreased $20,065,000 or
19.1% while the average yield increased from 5.09% in 1994 to 5.57% in 1995.
Interest Expense. Total interest expense for the three months ended March 31,
1995 amounted to $2,620,000, an increase of $902,000 or 52.5%, as compared to
the three months ended March 31, 1994. The increase resulted primarily from a
$63,817,000 or 28.9% increase in the average volume of interest bearing
liabilities and a 57 basis point increase in interest rates paid on such
liabilities. Average NOW, money market and savings accounts increased
$10,928,000. Average time deposits increased $30,075,000. Average noninterest
bearing accounts increased $2,873,000 and represented 10.5% of average total
deposits in 1995. Average borrowings increased $22,814,000.
Provision for Loan Losses. The loan loss provision was $45,000 for the three
months ended March 31, 1995, compared to $80,000 for the same period in 1994.
Other Income. Other income amounted to $381,000 for the three months ended
March 31, 1995, compared to $256,000 for the same period in 1994.
Other Expense. Total other expense for the three months ended March 31, 1995
amounted to $3,082,000, an increase of $548,000 or 21.6% as compared to the
same period in 1994. Salaries and employee benefits increased $295,000 or
26.7%. Occupancy and equipment expense increased $73,000 or 15.8%. Other
(miscellaneous) expenses increased $180,000 or 18.6%.
Provision for Income Taxes. The provision for income taxes for the three
months ended March 31, 1995 was $388,000, compared to $243,000 for the same
period in 1994. The increase was due to the increase in the Company's
pre-tax income.
ASSET QUALITY
Nonperforming loans totalled $1,900,000 or 0.8% of total loans at March 31,
1995, compared to $2,590,000 or 1.1% at December 31, 1994. Nonperforming loans
at March 31, 1995 consisted of nonaccrual loans totalling $932,000, 90 day
delinquent loans of $414,000, and restructured loans aggregating $554,000.
Other real estate held totalled $605,000 at March 31, 1995, compared to
$682,000 at December 31, 1994.
CAPITAL RESOURCES
Stockholders' equity totalled $26,570,000 at March 31, 1995. The Company's
risk-based capital ratio was 12.6%, of which 11.4% constituted common
stockholder equity, while risk-based capital ratios for the Company's two bank
subsidiaries, Wheeling National Bank and Columbus National Bank, were 14.1%
and 10.3%, respectively, with common stockholders' equity of 12.8% and 9.0%,
respectively. At March 31, 1995 the Company's leverage capital ratio was
6.9%, while the leverage ratios for Wheeling National Bank and Columbus
National Bank were 8.1% and 5.2%, respectively.
Three months ended March 31,
1995 1994
Average Yield/ Average Yield/
Balance Rate Balance Rate
INTEREST EARNING ASSETS (000's) (000's)
Loans
Commercial . . . . . . . $ 57,421 10.12% $ 44,025 8.30%
Real estate. . . . . . . 124,643 7.68 53,636 8.63
Installment-net. . . . . 55,389 9.43 50,788 9.64
Total loans . . . . . 237,453 8.84 148,449 9.16
Investment securities
Taxable. . . . . . . . . 78,739 5.38 92,991 5.19
Tax-exempt . . . . . . 2,046 7.29 2,452 7.30
Total investment securities 80,785 5.55 95,443 5.24
Other short-term investments. 3,988 5.91 9,395 3.57
Total interest earning
assets $322,226 7.98 $253,287 7.47
INTEREST BEARING LIABILITIES
Deposits
NOW, Savings and MMDA . . $137,365 2.71 $126,437 2.57%
Time. . . . . . . . . . 123,773 4.36 93,698 3.84
Total deposits . . . . 261,138 3.49 220,135 3.11
Short-term borrowings. . 22,336 5.53 855 3.55
Long-term debt . . . . 1,333 9.86 - 0.00
Total interest
bearing liabilities. $284,807 3.68 $220,990 3.11
MARGIN ANALYSIS
(as a % of earning assets)
Interest income . . . . 7.98% 7.47%
Interest expense. . . . 3.26 2.71
Net interest income . . 4.72% 4.76%
Averages stated are month end average balances. Installment loans are stated
net of unearned income.
Average loans include nonaccrual loans. Yields do not reflect tax equivalent
adjustments.
Item 6. Exhibits and Reports on Form 8-K
B. Reports on Form 8-K:
Date Item Description
None
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.
AMERICAN BANCORPORATION
(Registrant)
Date May 11, 1995 /s/ Jeremy C. McCamic
Jeremy C. McCamic
Chairman and
Chief Executive Officer
Date May 11, 1995 /s/ Brent E. Richmond
Brent E. Richmond
Chief Financial and
Accounting Officer
