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 September 30, 1999
------------------------------------------------------------
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.
October 4, 1999: 3,129,674 shares of Common stock without par value
Number of pages comprising
this report. .. . . . . 13
1
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 1999
TABLE OF CONTENTS
Part I FINANCIAL INFORMATION
Item 1 Financial Statements
Condensed Consolidated Balance Sheets...................... 3
Condensed Consolidated Statements of Income................ 4
Condensed Consolidated Statements of
Cash Flows....................................... 5
Condensed Consolidated Statements of
Changes in Stockholders' Equity.................. 6
Notes to the Consolidated Financial Statements................. 6
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations....................... 7
Item 3 Quantitative and Qualitative Disclosures about Market Risk..... 12
Part II OTHER INFORMATION
Item 1 Legal Proceedings........................................ None
Item 2 Changes in Securities and Use of Proceeds................ 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 13
2
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 1999
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
1999 1998 1998
------------- ------------- -------------
<S> <C> <C> <C>
ASSETS
Cash and due from banks ......................... $ 9,707,643 $ 15,407,875 $ 12,316,176
Interest bearing deposits in other banks ........ 173,866 274,004 --
Federal funds sold .............................. 2,556,025 6,178,025 17,747,025
Investment securities available for sale ........ 311,206,707 226,533,508 263,827,239
Loans, net of unearned income ................... 356,175,901 297,794,837 300,621,884
Less allowance for loan losses ................ 3,046,300 3,090,281 3,042,269
------------- ------------- -------------
353,129,601 294,704,556 297,579,615
Premises and equipment - net .................... 9,670,676 9,758,214 9,735,582
Accrued interest receivable ..................... 4,346,378 3,198,708 3,393,337
Excess of cost over net assets purchased ........ 1,425,110 1,717,333 1,633,464
Other assets .................................... 11,504,542 5,401,010 5,173,024
------------- ------------- -------------
TOTAL ASSETS ............................... $ 703,720,548 $ 563,173,233 $ 611,405,462
============= ============= =============
LIABILITIES
Deposits
Non-interest bearing ......................... $ 39,106,678 $ 34,890,606 $ 39,497,617
Interest bearing ............................. 393,666,003 382,499,946 391,742,578
------------- ------------- -------------
TOTAL DEPOSITS ........................... 432,772,681 417,390,552 431,240,195
Borrowed funds ................................. 221,935,096 88,921,787 123,891,183
Accrued interest payable ....................... 2,342,338 2,261,983 2,306,854
Other liabilities .............................. 3,421,420 5,484,053 4,858,495
Long-term debt ................................. -- 14,764 11,242
Guaranteed preferred beneficial interest in
subordinated debt ........................... 12,650,000 12,650,000 12,650,000
------------- ------------- -------------
TOTAL LIABILITIES ........................... 673,121,535 526,723,139 574,957,969
STOCKHOLDERS' EQUITY
Preferred stock ............................... -- -- --
Common stock without par value, stated value
$2.50, authorized 6,500,000 shares, issued and
outstanding 3,129,674 ........................ 7,824,185 7,824,185 7,824,185
Additional paid-in capital .................... 10,301,982 10,301,982 10,301,982
Retained earnings ............................. 21,005,172 17,553,511 18,430,141
Accumulated other comprehensive income
(loss), net of income tax ............... (8,532,326) 770,416 (108,815)
------------- ------------- -------------
TOTAL STOCKHOLDERS' EQUITY .................. 30,599,013 36,450,094 36,447,493
------------- ------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY .............. $ 703,720,548 $ 563,173,233 $ 611,405,462
============= ============= =============
</TABLE>
3
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 1999
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans ............................. $ 7,407,169 $ 6,517,169 $20,757,852 $19,200,532
Investment securities
Taxable interest income .......... 4,110,312 3,496,296 11,799,777 9,738,783
Non-taxable interest income ...... 761,841 89,346 2,009,936 135,360
----------- ----------- ----------- ------------
4.872,153 3,585,642 13,809,713 9,874,143
Short-term investments ............ 59,365 259,443 297,857 589,527
----------- ----------- ----------- ------------
Total interest income ........... 12,338,687 10,362,254 34,865,422 29,664,202
INTEREST EXPENSE
Deposits .......................... 4,398,073 4,713,715 13,179,804 12,878,353
Borrowed funds .................... 3,184,231 1,519,812 7,972,108 4,184,090
----------- ----------- ------------ ------------
Total interest expense .......... 7,582,304 6,233,527 21,151,912 17,062,443
----------- ----------- ------------ ------------
NET INTEREST INCOME ........... 4,756,383 4,128,727 13,713,510 12,601,759
PROVISION FOR LOAN LOSSES .......... 120,000 60,000 270,000 180,000
----------- ----------- ----------- ------------
Net interest income after
provision for loan losses ...... 4,636,383 4,068,727 13,443,510 12,421,759
OTHER INCOME
Service charges on deposit accounts 242,828 190,551 659,272 530,453
Securities gains .................. -- 141,250 342,967 628,059
Net gains on sale of loans ........ 400,166 807,108 1,246,695 1,740,227
Insurance commissions ............. 19,847 21,483 62,797 64,913
Other income ...................... 155,646 234,910 464,325 622,544
----------- ----------- ------------ ----------
Total other income .............. 818,487 1,395,302 2,776,056 3,586,196
OTHER EXPENSE
Salaries and employee benefits .... 1,669,785 1,675,214 5,141,418 4,864,479
Occupancy and equipment expense ... 657,373 610,675 1,939,004 1,809,126
Other expenses .................... 1,384,816 1,363,619 4,074,017 3,954,308
----------- ----------- ------------ ----------
Total other expense ............. 3,711,974 3,649,508 11,154,439 10,627,913
----------- ----------- ------------ ----------
INCOME BEFORE INCOME TAXES ......... 1,742,896 1,814,521 5,065,127 5,380,042
PROVISION FOR INCOME TAXES ......... 391,747 499,228 1,081,743 1,524,241
----------- ----------- ------------ ----------
NET INCOME ......................... $ 1,351,149 $ 1,315,293 $ 3,983,384 $ 3,855,801
=========== =========== =========== ============
Average Shares Outstanding ....... 3,129,674 3,129,674 3,129,674 3,129,674
BASIC EARNINGS PER SHARE ....... $ 0.43 $ 0.42 $ 1.27 $ 1.23
</TABLE>
4
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 1999
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine months ended September 30,
1999 1998
<S> <C> <C>
Operating Activities:
Net Income ............................................................... $ 3,983,384 $ 3,855,801
Adjustments to reconcile net income to net cash from operating activities:
Depreciation ........................................................... 662,160 640,173
Amortization of intangibles ............................................ 208,354 251,607
Net amortization of premium on investment securities ................... 819,775 545,424
Provision for loan losses .............................................. 270,000 180,000
Net gain on sale of investment securities .............................. (342,967) (628,059)
Net gain on sale of loans .............................................. (1,246,695) (1,740,227)
Net increase in accrued interest receivable ............................ (953,041) (484,468)
Net increase in accrued interest payable ............................... 35,484 479,315
Real estate mortgage loans originated for sale ......................... (82,838,353) (96,556,664)
Proceeds from sale of real estate mortgage loans ....................... 81,672,625 91,166,521
Net (increase) decrease in other assets ................................ (616,269) (586,684)
Net increase (decrease) in other liabilities ........................... (1,437,075) 898,123
Net decrease from other operating activities ........................... (203,576) (219,705)
------------- -------------
Net cash provided (used) by operating activities .................. 13,806 (2,199,843)
Investing Activities:
Investment securities available for sale:
Proceeds from maturities and repayments ........................... 68,869,201 101,034,116
Proceeds from sales ............................................... 37,727,462 6,377,464
Purchases ......................................................... (168,388,123) (164,376,191)
Change in loans, net of real estate mortgage loans originated for sale . (53,407,563) (4,347,473)
Purchase of premises and equipment ..................................... (597,254) (329,010)
Proceeds from sale of premises and equipment ........................... -- 1,000
------------- ------------
Net cash used by investing activities .............................. (115,796,277) (61,640,094)
Financing Activities:
Net increase (decrease) in non-interest bearing
demand deposits .................................................... (390,939) 1,377,894
Net increase (decrease) in interest bearing
demand and savings deposits ........................................ 9,186,638 (4,136,850)
Net increase (decrease) in time deposits ............................... (7,263,213) 64,415,176
Net increase (decrease) in borrowed funds .............................. 98,043,913 1,347,635
Issuance (principal repayment) of long-term debt ....................... (11,242) 10,474,054
Cash dividends paid .................................................... (1,408,353) (1,220,572)
------------- -------------
Net cash provided by financing activities ......................... 98,156,804 72,257,337
------------- -------------
Net Increase (Decrease) in Cash and Cash Equivalents .................... (17,625,667) 8,417,400
Cash and Cash Equivalents Beginning Balance ............................... $ 30,063,201 $ 13,442,504
------------- -------------
Cash and Cash Equivalents Ending Balance .................................. $ 12,437,534 $ 21,859,904
============= =============
</TABLE>
5
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 1999
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Nine months ended September 30, 1999 and 1998
1999 1998
Balance at January 1, .......................... $ 36,447,493 $ 33,693,846
Comprehensive results:
Net Income .................................. 3,983,384 3,855,801
Other comprehensive income (loss), net of tax (8,211,338) 375,416
Reclassification adjustment, net of tax ..... (212,173) (207,451)
------------ ------------
Total comprehensive income (loss) ........... (8,423,511) 167,965
Dividends declared ($.45 per share 1999,
$0.405 per share 1998) .................... (1,408,353) (1,267,518)
------------ ------------
Balance at September 30, ....................... $ 30,599,013 $ 36,450,094
============ ============
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 1998 Annual Report to Stockholders should be read in
conjunction with these statements.
6
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 1999
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
INTRODUCTION
The discussion and analysis, when read in conjunction with the consolidated
financial statements and accompanying notes, is designed to provide information
relevant to an assessment of financial performance and management's perception
of significant events.
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 1998 Annual
Report and the financial statements appearing elsewhere herein.
SUMMARY
American Bancorporation (the "Company") recognized net income of $3,983,000
or $1.27 basic earnings per share for the nine months ended September 30, 1999,
compared to net income of $3,856,000 or $1.23 basic earnings per share for the
nine months ended September 30, 1998. Return on average assets and return on
average equity were 0.79% and 15.5%, respectively, for the nine months ended
September 30, 1999 compared to 0.96% and 14.6%, respectively, for the nine
months ended September 30, 1998.
Total assets at September 30, 1999 increased to $703,721,000, from
$563,173,000 at September 30, 1998, an increase of 25.0%. Deposits increased to
$432,773,000 at September 30, 1999, from $417,391,000 at September 30, 1998, an
increase of 3.7%. Total stockholders' equity was $30,599,000 at September 30,
1999, which represents a 16.1% decrease over total stockholders' equity of
$36,450,000 at September 30, 1998.
RESULTS OF OPERATIONS
NINE MONTH COMPARISON
Net Income. Net income for the nine months ended September 30, 1999
amounted to $3,983,000, or $1.27 basic earnings per share, compared to
$3,856,000 or $1.23 basic earnings per share for the nine months ended September
30, 1998. The increase was the result of an increase in net interest income and
a decrease in income taxes which was partially offset by increases in other
expense and provision for loan losses and a decrease in other income.
Net Interest Income. Net interest income before provision for loan losses
for the nine months ended September 30, 1999 amounted to $13,714,000, an
increase of $1,112,000 or 8.8%, compared to the nine months ended September 30,
1998. The increase resulted primarily from a $130,274,000 or 25.7% increase in
average interest earning assets which was partially offset by a 39 basis point
decrease in the Company's margin.
Total interest income for the nine months ended September 30, 1999 amounted
to $34,865,000, an increase of $5,201,000 or 17.5%, compared to the same period
in 1998. The increase resulted primarily from a $130,274,000 increase in the
average volume of earning assets offset by a 46 basis point decrease in the
average yield on earning assets. Average loans outstanding increased $36,272,000
or 12.5%. Average commercial loans increased $34,662,000 or 35.7%, and average
consumer installment loans increased $2,515,000 or 5.0% while average real
estate loans decreased $905,000 or 0.6%. The average yield on loans decreased
from 8.82% in 1998 to 8.47% in 1999. Average investment securities and other
short-term investments outstanding increased $94,002,000 or 43.3%, while the
average yield decreased from 6.43% in 1998 to 6.16% in 1999.
7
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 1999
Total interest expense for the nine months ended September 30, 1999
amounted to $21,152,000, an increase of $4,089,000 or 24.0% compared to the nine
months ended September 30, 1998. The increase resulted primarily from a
$130,989,000 or 28.5% increase in the average volume of interest bearing
liabilities which was partially offset by a 17 basis point decrease in interest
rates paid on such liabilities. Average NOW, money market and savings accounts
increased $1,563,000. Average time deposits increased $27,541,000. Average
noninterest bearing accounts increased $3,878,000 and represented 8.9% of
average total deposits in 1999. Average borrowed funds increased $98,327,000 or
112.1% and the average rate paid on borrowed funds decreased from 5.55% in 1998
to 5.12% in 1999.
Provision for Loan Losses. The loan loss provision for the nine months
ended September 30, 1999 was $270,000 compared to $180,000 for the same period
in 1998.
Other Income. Other income for the nine months ended September 30, 1999
amounted to $2,776,000, a decrease of $810,000 or 22.6%. Net gains on sale of
loans totalled $1,247,000 for the nine months ended September 30, 1998,compared
to net gains of $1,740,000 for the same period in 1998 which included a $297,000
gain on the sale of the Company's credit card portfolio.
Other Expense. Total other expense for the nine months ended September 30,
1999 amounted to $11,154,000, an increase of $527,000 or 5.0%, compared to the
same period in 1998. Salaries and employee benefits increased $277,000 or 5.7%.
Occupancy and equipment expense increased $130,000 or 7.2%. Other
(miscellaneous) expenses increased $120,000 or 3.0%.
Provision for Income Taxes. The provision for income taxes for the nine
months ended September 30, 1999 was $1,082,000, compared to $1,524,000 for the
nine months ended September 30, 1998. The decrease is primarily the result of
additional tax-exempt income in 1999.
RESULTS OF OPERATIONS
QUARTER COMPARISON
Net Income. Net income for the quarter ended September 30, 1999 amounted to
$1,351,000, compared to net income of $1,315,000 for the quarter ended September
30, 1998. The increase was the result of an increase in net interest income and
a decrease in income taxes which was partially offset by increases in other
expense and provision for loan losses and a decrease in other income.
Net Interest Income. Net interest income before provision for loan losses
for the quarter ended September 30, 1999 amounted to $4,756,000, an increase of
$628,000 or 15.2%, compared to the quarter ended September 30, 1998. The
increase resulted primarily from a $136,392,000 or 25.8% increase in average
interest earning assets which was partially offset by a 26 basis point decrease
in the Company's margin.
Total interest income for the quarter ended September 30, 1999 amounted to
$12,339,000, an increase of $1,976,000 or 19.1%, compared to the same period in
1998. The increase resulted primarily from a $136,392,000 or 19.1% increase in
the average volume of earning assets offset by a 42 basis point decrease in the
average yield on earning assets. Average loans outstanding increased $55,603,000
or 18.9%. Average commercial loans increased $43,130,000 or 43.3%, average
installment loans increased $7,854,000 or 15.3%, and average real estate loans
increased $4,619,000 or 3.2%. The average yield on loans decreased from 8.84% in
1998 to 8.46% in 1999. Average investment securities and other short-term
investments outstanding increased $80,789,000 or 34.5%, while the average yield
decreased from 6.57% in 1998 to 6.27% in 1999.
8
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 1999
Total interest expense for the quarter ended September 30, 1999 amounted
to $7,582,000, an increase of $1,349,000 or 21.6%, compared to the same period
in 1998. The increase resulted primarily from a $143,428,000 or 29.8% increase
in the average volume of interest bearing liabilities which was partially
offset by a 33 basis point decrease in interest rates paid on such
liabilities.
Provision for Loan Losses. The loan loss provision for the quarter ended
September 30, 1999 was $120,000, compared to $60,000 for the same period in
1998.
Other Income. Other income amounted to $818,000 for the quarter ended
September 30, 1999, compared to $1,395,000 for the quarter ended September 30,
1998. Net gains on sale of loans totalled $400,000 for the quarter ended
September 30, 1999, compared to a net gain of $807,000 for the same period in
1998, which included a $297,000 gain on the sale of the Company's credit card
portfolio. There were no gains on sale of investment securities for the quarter
ended September 30, 1999, compared to net gains on $141,000 for the same period
in 1998.
Other Expense. Total other expense for the quarter ended September 30,
1999 amounted to $3,712,000, an increase of $62,000 or 1.7%, compared to the
same period in 1998. Salaries and employee benefits decreased $6,000 or 0.3%.
Occupancy and equipment expense increased $47,000 or 7.6%. Other (miscellaneous)
expenses increased $21,000 or 1.6%.
Provision for Income Taxes. The provision for income taxes for the
quarter ended September 30, 1999 was $392,000, compared to $499,000 for the
quarter ended September 30, 1998. The decrease is primarily the result of
additional tax exempt income in 1999.
ASSET QUALITY
Nonperforming loans totalled $2,720,000 or 0.8% of total loans at
September 30, 1999, compared to $2,960,000 or 1.0% at December 31, 1998.
Nonperforming loans at September 30, 1999 consisted of nonaccrual loans
totalling $988,000, 90 day delinquent loans of $1,466,000, and restructured
loans aggregating $266,000. Other real estate held totalled $387,000 at
September 30, 1999, compared to $183,000 at December 31, 1998.
CAPITAL RESOURCES
Stockholders' equity totalled $30,599,000 at September 30, 1999. The
Company's risk-based capital ratio was 14.4%, of which 13.6% constituted common
stockholders' equity, while the risk-based capital ratio for the Company's bank
subsidiary, Wheeling National Bank, was 13.6%, with common stockholder equity of
12.8%. At September 30, 1999 the Company's leverage capital ratio was 7.2%,
while the leverage ratio for Wheeling National Bank was 6.8%.
9
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 1999
YEAR 2000 COMPLIANCE
The Company may be exposed to potential losses due to business
interruption or errors which could result if any of its computer systems are not
modified to ensure that dates beginning in January, 2000 are not misinterpreted
by the system as January, 1900. This is commonly referred to as the Year 2000
issue. A number of computer systems which are affected by Year 2000 are utilized
by the Company to operate its day-to-day business.
Management has established a task force to develop and maintain a Year
2000 Compliance Plan. The Company's Year 2000 Compliance Plan has been prepared
in accordance with the Federal Financial Institutions Examination Council
("FFIEC") guidelines on Year 2000 Compliance and involves the following five
phases: awareness, assessment, renovation, validation and implementation. The
Company has completed all phases of the Y2K Compliance Plan.
The Company has contacted large commercial customers and significant
suppliers to determine their capability to resolve the Year 2000 issues and
attain compliance. Risk ratings have been assigned to customers and suppliers.
Further contact will occur based on survey results.
The Company has prepared general contingency plans to address unforeseen
Year 2000 issues. Contingency plans will be continuously monitored and updated
as conditions change throughout 1999 and into the Year 2000.
The Company has estimated that direct costs for Y2K compliance will not
be material.
Y2K problems which are inherent in the regional, national and global
banking and payments system are expected to be brought into compliance, but are
completely beyond the Company's control.
10
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 1999
<TABLE>
<CAPTION>
Three months ended September 30, Nine months ended September 30,
1999 1998 1999 1998
----------------- ---------------- ---------------- ---------------
Average Yield/ Average Yield/ Average Yield/ Average Yield/
Balance Rate Balance Rate Balance Rate Balance Rate
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INTEREST EARNING ASSETS (000's) (000's) (000's) (000's)
Loans
Commercial ......................... $142,663 8.77% $ 99,533 9.31% $131,847 8.71% $ 97,185 9.23%
Real estate ........................ 148,657 7.81 144,038 8.22 142,031 7.93 142,936 8.28
Installment-net .................... 59,095 8.32 51,241 8.47 52,764 8.33 50,249 8.44
-------- ------- -------- -------
Total loans ....................... 350,415 8.46 294,812 8.84 326,642 8.47 290,370 8.82
Investment securities
Taxable ............................ 252,538 6.51 213,157 6.56 249,402 6.31 202,803 6.40
Tax-exempt ......................... 58,644 5.20 10,096 3.54 54,436 5.53 4,109 4.39
-------- ------- -------- -------
Total investment securities ....... 311,182 6.26 223,253 6.42 303,838 6.17 206,912 6.36
Other short-term investments ........ 3,564 6.66 10,704 9.69 7,038 5.64 9,962 7.89
-------- ------- -------- ------
Total interest earning assets .... $665,161 7.42 $528,769 7.84 $637,518 7.34 $507,244 7.80
======== ======= ======== ========
INTEREST BEARING LIABILITIES
Deposits
NOW, Savings and MMDA ............. $125,206 2.46 $117,373 2.80% $121,252 2.33 $119,689 2.71%
Time .............................. 268,171 5.41 265,905 5.85 271,142 5.44 243,601 5.72
-------- -------- -------- -------
Total deposits ................... 393,377 4.47 383,278 4.92 392,394 4.48 363,290 4.73
Borrowed funds ..................... 218,169 5.33 84,825 5.85 186,015 5.12 87,689 5.55
Long-term debt ..................... 12,652 8.70 12,666 8.84 12,655 8.70 9,097 7.86
-------- ------- -------- --------
Total interest bearing liabilities $624,198 4.86 $480,769 5.19 $591,064 4.77 $460,076 4.94
======== ======= ======== =======
MARGIN ANALYSIS
(as a % of earning assets)
Interest income ..................... 7.42% 7.84% 7.34% 7.80%
Interest expense .................... 4.56 4.72 4.42 4.49
------ ------ ------ ------
Net interest income ................. 2.86% 3.12% 2.92% 3.31%
======== ======= ======= ======
</TABLE>
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.
11
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 1999
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Management is responsible for monitoring and limiting the Company's
exposure to interest rate risk within established guidelines while maximizing
net interest income. During the first nine months of 1999, the Company's
interest rate risk position grew more liability sensitive. The change in
position resulted primarily from the purchase of fixed-rate securities funded by
short-term FHLB borrowings.
Quantitative and qualitative disclosures about market risk are
presented at December 31, 1998 in Item 7a. of the Company's Annual Report on
Form 10-K, filed with the SEC on March 31, 1999.
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
B. Reports on Form 8-K:
Date Item Description
None
12
<PAGE>
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 November 15, 1999 /s/ Jeremy C. McCamic
---------------------------- ----------------------
Jeremy C. McCamic
Chairman and
Chief Executive Officer
Date November 15, 1999 /s/ Brent E. Richmond
--------------------------- ---------------------
Brent E. Richmond
Chief Operating Officer
Date November 15, 1999 /s/ Jeffrey A. Baran
---------------------------- --------------------
Jeffrey A. Baran
Chief Financial Officer
13
<TABLE> <S> <C>
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<S> <C>
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0
0
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