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.
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 6, 2000: 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, 2000
TABLE OF CONTENTS
Part I FINANCIAL INFORMATION
Item 1 Financial Statements (Unaudited)
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 (Unaudited).... 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, 2000
Part 1 Financial Information
Item 1 Financial Statements
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
September 30, December 31,
<S> <C> <C> <C>
2000 1999 1999
ASSETS
Cash and due from banks ................................ $ 10,711,143 $ 9,881,509 $ 11,774,610
Federal funds sold ..................................... 7,313,000 2,556,025 4,823,000
Investment securities available for sale ............... 273,208,327 311,206,707 298,153,127
Loans, net of unearned income .......................... 402,376,244 356,175,901 371,223,074
Less allowance for loan losses ....................... 3,500,624 3,046,300 3,079,796
------------- ------------- -------------
398,875,620 353,129,601 368,143,278
Premises and equipment - net ........................... 9,780,518 9,670,676 10,214,208
Accrued interest receivable ............................ 4,671,971 4,346,378 4,469,869
Excess of cost over net assets acquired ................ 1,726,999 1,425,110 1,355,659
Other assets ........................................... 9,082,042 11,504,542 12,357,245
------------- ------------- -------------
TOTAL ASSETS ...................................... $ 715,369,620 $ 703,720,548 $ 711,290,996
============= ============= =============
LIABILITIES
Deposits
Non-interest bearing ................................ $ 40,148,099 $ 39,106,678 $ 37,959,587
Interest bearing .................................... 441,020,137 393,666,003 411,317,906
------------- ------------- -------------
TOTAL DEPOSITS .................................. 481,168,236 432,772,681 449,277,493
Borrowed funds ........................................ 181,210,332 221,935,096 214,593,201
Accrued interest payable .............................. 3,521,250 2,342,338 2,511,496
Other liabilities ..................................... 2,547,546 3,421,420 4,079,845
Company obligated mandatorily redeemable trust
preferred securities of subsidiary trust holding solely
junior subordinated debentures of the Company ......... 12,650,000 12,650,000 12,650,000
------------- ------------- -------------
TOTAL LIABILITIES .................................. 681,097,364 673,121,535 683,112,035
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 .................................... 24,222,903 21,005,172 21,906,156
Accumulated other comprehensive
results, net of tax benefit .................... (8,076,814) (8,532,326) (11,853,362)
------------- ------------- -------------
TOTAL STOCKHOLDERS' EQUITY ......................... 34,272,256 30,599,013 28,178,961
------------- ------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY ..................... $ 715,369,620 $ 703,720,548 $ 711,290,996
============= ============= =============
</TABLE>
3
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 2000
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -----------------------
2000 1999 2000 1999
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans ............................. $ 8,765,083 $ 7,407,169 $25,249,254 $20,757,852
Investment securities
Taxable interest income .......... 3,770,802 4,110,312 11,780,587 11,799,777
Non-taxable interest income ...... 760,122 761,841 2,281,855 2,009,936
----------- ----------- ----------- ------------
4.530,924 4,872,153 14,062,442 13,809,713
Short-term investments ............ 74,094 59,365 191,187 297,857
----------- ----------- ----------- ------------
Total interest income ........... 13,370,101 12,338,687 39,502,883 34,865,422
INTEREST EXPENSE
Deposits .......................... 5,697,235 4,398,073 15,878,111 13,179,804
Borrowed funds .................... 3,285,757 3,184,231 10,097,677 7,972,108
----------- ----------- ----------- ------------
Total interest expense .......... 8,982,992 7,582,304 25,975,788 21,151,912
----------- ----------- ----------- ------------
NET INTEREST INCOME ........... 4,387,109 4,756,383 13,527,095 13,713,510
PROVISION FOR LOAN LOSSES .......... 210,000 120,000 685,000 270,000
----------- ----------- ----------- ------------
Net interest income after
provision for loan losses ...... 4,177,109 4,636,383 12,842,095 13,443,510
OTHER INCOME
Service charges on deposit accounts 237,823 242,828 664,500 659,272
Net securities gains .............. 582 -- 787 342,967
Net gains on sale of loans ........ 327,864 400,166 964,626 1,246,695
Insurance commissions ............. 15,564 19,847 61,305 62,797
Other income ...................... 95,411 155,646 818,171 464,325
----------- ----------- ----------- ------------
Total other income .............. 677,244 818,487 2,509,389 2,776,056
OTHER EXPENSE
Salaries and employee benefits .... 1,636,408 1,669,785 4,996,926 5,141,418
Occupancy expense ................. 647,973 657,373 1,968,444 1,939,004
Other expenses .................... 1,189,854 1,384,816 3,740,837 4,074,017
----------- ----------- ----------- ------------
Total other expense ............. 3,474,235 3,711,974 10,706,207 11,154,439
----------- ----------- ----------- ------------
INCOME BEFORE INCOME TAXES ......... 1,380,118 1,742,896 4,645,277 5,065,127
PROVISION FOR INCOME TAXES ......... 252,697 391,747 920,177 1,081,743
----------- ----------- ----------- ------------
NET INCOME ......................... $ 1,127,421 $ 1,351,149 $ 3,725,100 $ 3,983,384
=========== =========== =========== ============
Average Shares Outstanding ....... 3,129,674 3,129,674 3,129,674 3,129,674
BASIC EARNINGS PER SHARE ....... $ 0.36 $ 0.43 $ 1.19 $ 1.27
</TABLE>
4
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 2000
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Nine months ended September 30,
2000 1999
<S> <C> <C>
----------- -----------
Operating Activities:
Net Income ............................................................... $ 3,725,100 $ 3,983,384
Adjustments to reconcile net income to net cash from operating activities:
Depreciation ........................................................... 707,354 662,160
Amortization of intangibles ............................................ 235,301 208,354
Net amortization of premium on investment securities ................... 298,004 819,775
Provision for loan losses .............................................. 685,000 270,000
Net gain on sale of mortgage servicing rights .......................... (251,393) --
Net gain on sale of investment securities .............................. (787) (342,967)
Net gain on sale of loans .............................................. (964,626) (1,246,695)
Net increase in accrued interest receivable ............................ (202,039) (953,041)
Net increase in accrued interest payable ............................... 969,016 35,484
Real estate mortgage loans originated for sale ......................... (50,639,874) (82,838,353)
Proceeds from sale of real estate mortgage loans ....................... 51,046,884 81,672,625
Net increase in other assets ........................................... (393,179) (616,269)
Net decrease in other liabilities ...................................... (1,534,069) (1,437,075)
Net decrease from other operating activities ........................... (249,437) (203,576)
------------- -------------
Net cash provided by operating activities ......................... 3,431,255 13,806
Investing Activities:
Investment securities available for sale:
Proceeds from maturities and repayments ........................... 35,596,826 68,869,201
Proceeds from sales ............................................... 2,727,527 37,727,462
Purchases ......................................................... (7,585,564) (168,388,123)
Proceeds from the sale of mortgage servicing rights .................... 1,746,521 --
Change in loans, net of real estate mortgage loans originated for sale . (30,843,181) (53,407,563)
Purchase of premises and equipment ..................................... (280,463) (597,254)
Proceeds from sale of premises and equipment ........................... 140,096 --
------------- --------------
Net cash provided (used) by investing activities ................... 1,501,762 (115,796,277)
Financing Activities:
Net increase (decrease) in non-interest bearing demand deposits ........ 2,170,938 (390,939)
Net increase in interest bearing demand and savings deposits ........... 6,461,639 9,186,638
Net increase (decrease) in time deposits ............................... 12,791,361 (7,263,213)
Net increase (decrease) in borrowed funds .............................. (33,382,869) 98,043,913
Principal repayment of long-term debt .................................. -- (11,242)
Proceeds received in branch acquisition, net of assets acquired ........ 9,860,800 --
Cash dividends paid .................................................... (1,408,353) (1,408,353)
------------- -------------
Net cash provided (used) by financing activities .................. (3,506,484) 98,156,804
------------- -------------
Net Increase (Decrease) in Cash and Cash Equivalents .................... 1,426,533 (17,625,667)
Cash and Cash Equivalents Beginning Balance ............................... $ 16,597,610 $ 30,063,201
------------- -------------
Cash and Cash Equivalents Ending Balance .................................. $ 18,024,143 $ 12,437,534
============= =============
</TABLE>
5
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 2000
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)
Nine months ended September 30, 2000 and 1999
2000 1999
------------ ------------
Balance at January 1, ......................... $ 28,178,961 $ 36,447,493
Comprehensive results:
Net Income ................................ 3,725,100 3,983,384
Unrealized security gain (loss), net of tax 3,772,552 (8,211,338)
Reclassification adjustment, net of tax ... 3,996 (212,173)
------------ ------------
Total comprehensive results ............... 7,501,648 (4,440,127)
Dividends declared ($0.45 per share 2000,
$0.45 per share 1999) ................... (1,408,353) (1,408,353)
------------ ------------
Balance at September 30, ...................... $ 34,272,256 $ 30,599,013
============ ============
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 1999 Annual Report to Stockholders should be read in
conjunction with these statements.
6
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 2000
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
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 1999 Annual
Report and the financial statements appearing elsewhere herein.
SUMMARY
American Bancorporation (the "Company") recognized net income of $3,725,000
or $1.19 basic earnings per share for the nine months ended September 30, 2000,
compared to net income of $3,983,000 or $1.27 basic earnings per share for the
nine months ended September 30, 1999. Return on average assets and return on
average equity were 0.69% and 16.1%, respectively, for the nine months ended
September 30, 2000 compared to 0.79% and 15.5%, respectively, for the nine
months ended September 30, 1999.
Total assets at September 30, 2000 increased to $715,370,000, from
$703,721,000 at September 30, 1999, an increase of 1.7%. Deposits increased to
$481,168,000 at September 30, 2000, from $432,773,000 at September 30, 1999, an
increase of 11.2%. Total stockholders' equity was $34,272,000 at September 30,
2000, compared with $30,599,000 at September 30, 1999, an increase of 12.0%.
Stockholders' equity, excluding net unrealized gains and losses, totalled
$42,349,000 at September 30, 2000, an increase of $3,218,000 or 8.2%, compared
to September 30, 1999. The unrealized loss on investment securities available
for sale, a result of market value adjustments, totalled $8,077,000, net of tax,
at September 30, 2000, compared to $8,532,000, net of tax, at September 30,
1999. If these available for sale securities are held to maturity, no market
value adjustment will be realized.
RESULTS OF OPERATIONS
NINE MONTH COMPARISON
Net Income. Net income for the nine months ended September 30, 2000
amounted to $3,725,000, or $1.19 basic earnings per share, compared to
$3,983,000 or $1.27 basic earnings per share for the nine months ended September
30, 1999. The decrease was the result of a decrease in net interest income and
an increase in the provision for loan losses which was offset by a decrease in
other expenses.
Net Interest Income. Net interest income before provision for loan losses
for the nine months ended September 30, 2000 amounted to $13,527,000, a decrease
of $187,000 or 1.4%, compared to the nine months ended September 30, 1999. The
decrease resulted primarily from a 29 basis point decrease in the Company's net
interest margin which was partially offset by a $47,809,000 or 7.5% increase in
average interest earnings assets.
7
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 2000
Total interest income for the nine months ended September 30, 2000 amounted
to $39,503,000, an increase of $4,638,000 or 13.3%, compared to the nine months
ended September 30, 1999. The increase resulted primarily from an increase in
the average earnings assets and a 35 basis point increase in the average yield
on earning assets. Average loans outstanding increased $70,818,000 or 21.7%,
with average commercial loans increasing $30,384,000 or 23.0%, average real
estate loans increasing $20,324,000 or 14.3%, and average consumer installment
loans increasing $20,110,000 or 38.1%. The average yield on loans was 8.47% in
2000 and 1999, respectively. Average investment securities and other short-term
investments outstanding decreased $23,009,000 or 7.4%, while the average yield
increased from 6.05% in 1999 to 6.60% in 2000.
Total interest expense for the nine months ended September 30, 2000
amounted to $25,976,000, an increase of $4,824,000 or22.8% compared to the nine
months ended September 30, 1999. The increase resulted primarily from a
$53,017,000 or 9.0% increase in the average volume of interest bearing
liabilities along with a 61 basis point increase in interest rates paid on such
liabilities. Average NOW, money market and savings accounts increased
$34,107,000 or 28.1%. Average time deposits increased $748,000 or 0.3%. Average
noninterest bearing accounts increased $1,415,000 or 3.7% and represented 8.5%
of the average total deposits for the nine months ended September 30, 2000.
Average borrowed funds increased $18,166,000 or 9.8%, while the average rate
paid on borrowed funds increased from 5.12% in 1999 to 6.05% in 2000.
Provision for Loan Losses. The loan loss provision for the nine months
ended September 30, 2000 was $685,000 compared to $270,000 for the same period
in 1999. The increase in the loan loss provision reflects management's
assessment of the loan portfolio, general economic conditions and past
loan experience.
Other Income. Other income for the nine months ended September 30, 2000
amounted to $2,509,000, a decrease of 9.6%, compared to the nine months ended
September 30, 1999. There were security gains of $787 during the nine months
ended September 30, 2000 compared to net gains on sale of investment securities
of $343,000 in 1999. Net gains on sale of loans totalled $965,000 in 2000
compared to $1,247,000 in 1999, a decrease of 22.6%. Other miscellaneous income
in 2000 included a $120,000 gain on sale of former branch property and a
$251,000 gain on the sale of mortgage servicing rights.
Other Expense. Total other expense for the nine months ended September 30,
2000 amounted to $10,706,000, a decrease of $448,000 or 4.0%, compared to the
nine months ended September 30, 1999. Salaries and employee benefits decreased
$144,000 or 2.8%. Occupancy and equipment expense increased $29,000 or 1.5%.
Other (miscellaneous) expenses decreased $333,000 or 8.2%.
Provision for Income Taxes. The provision for income taxes for the nine
months ended September 30, 2000 was $920,000, compared to $1,082,000 for the
nine months ended September 30, 1999. The decrease is primarily the result of
additional tax-exempt income in 2000 along with a decrease in income before
taxes.
8
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 2000
RESULTS OF OPERATIONS
QUARTER COMPARISON
Net Income. Net income for the quarter ended September 30, 2000 amounted to
$1,127,000, compared to net income of $1,351,000 for the quarter ended September
30, 1999. The decrease was the result of a decrease in net interest income and
an increase in the provision for loan losses which was partially offset by a
decrease in other expenses and a decrease in income taxes.
Net Interest Income. Net interest income before provision for loan losses
for the quarter ended September 30, 2000 amounted to $4,387,000, a decrease of
$369,000 or 7.8%, compared to the quarter ended September 30, 1999. The decrease
resulted primarily from a 30 basis point decrease in the Company's margin which
was partially offset by a$20,795,000 or 3.1% increase in average interest
earning assets.
Total interest income for the quarter ended September 30, 2000 amounted to
$13,370,000, an increase of $1,031,000 or 8.4%, compared to the same period in
1999. The increase resulted primarily from a $20,795,000 or 3.1% increase in the
average volume of earning assets and a 38 basis point increase in the average
yield on earning assets. Average loans outstanding increased $52,956,000 or
15.1%. Average commercial loans increased $23,761,000 or 16.7%, average
installment loans increased $15,643,000 or 26.5%, and average real estate loans
increased $13,552,000 or 9.1%. The average yield on loans increased from 8.46%
in 1999 to 8.69% in 2000. Average investment securities and other short-term
investments outstanding decreased $32,161,000 or 10.2%, while the average yield
increased from 6.27% in 1999 to 6.52% in 2000.
Total interest expense for the quarter ended September 30, 2000 amounted
to $8,983,000, an increase of $1,401,000 or 18.5%, compared to the same period
in 1999. The increase resulted primarily from a $15,156,000 or 2.4% increase in
the average volume of interest bearing liabilities and a 76 basis point increase
in interest rates paid on such liabilities.
Provision for Loan Losses. The loan loss provision for the quarter ended
September 30, 2000 was $210,000, compared to $120,000 for the same period in
1999. The increase in the loan loss provision reflects management's assessment
of the loan portfolio, general economic conditions and past loan experience.
Other Income. Other income amounted to $677,000 for the quarter ended
September 30, 2000, compared to $818,000 for the quarter ended September 30,
1999. Net gains on sale of loans decreased $72,000 or 18.0% for the quarter
ended September 30, 2000. Net gains on sale of investment securities totalled
$582 for the quarter ended September 30, 2000, compared to $0 for the same
period in 1999.
9
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 2000
Other Expense. Total other expense for the quarter ended September 30,
2000 amounted to $3,474,000, a decrease of $238,000 or 6.4%, compared to the
same period in 1999. Salaries and employee benefits decreased $33,000 or 2.0%.
Occupancy and equipment expense decreased $9,000 or 1.4%. Other (miscellaneous)
expenses decreased $195,000 or 14.1%.
Provision for Income Taxes. The provision for income taxes for the
quarter ended September 30, 2000 was $253,000, compared to $392,000 for the
quarter ended September 30, 1999. The decrease is primarily the result of
additional tax exempt income in 2000 along with a decrease in income before
taxes.
ASSET QUALITY
Nonperforming loans totalled $3,397,000 or 0.8% of total loans at
September 30, 2000, compared to $2,730,000 or 0.7% at December 31, 1999.
Nonperforming loans at September 30, 2000 consisted of nonaccrual loans
totalling $1,105,000, 90 day delinquent loans of $1,998,000, and restructured
loans aggregating $294,000. Other real estate held totalled $677,000 at
September 30, 2000, compared to $387,000 at December 31, 1999.
CAPITAL RESOURCES
Stockholders' equity totalled $34,272,000 at September 30, 2000. The
Company's risk-based capital ratio was 14.0%, of which 13.1% constituted common
stockholders' equity, while the risk-based capital ratio for the Company's bank
subsidiary, Wheeling National Bank, was 13.3%, with common stockholder equity of
12.4%. At September 30, 2000 the Company's leverage capital ratio was 7.4%,
while the leverage ratio for Wheeling National Bank was 7.0%.
10
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
September 30, 2000
<TABLE>
<CAPTION>
Three months ended September 30, Nine months ended September 30,
2000 1999 2000 1999
------------------ ----------------- ---------------- -----------------
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.............................. $166,424 9.46% $142,663 8.77% $162,231 9.00% $131,847 8.71%
Real estate............................ 162,209 7.72 148,657 7.81 162,355 7.69 142,031 7.93
Installment-net....................... 74,738 8.55 59,095 8.32 72,874 8.38 52,764 8.33
-------- -------- -------- --------
Total loans .......................... 403,371 8.69 350,415 8.46 397,460 8.47 326,642 8.47
Investment securities
Taxable................................ 218,306 6.91 252,538 6.51 226,463 6.94 249,402 6.31
Tax-exempt............................ 59,075 5.15 58,644 5.20 57,742 5.27 54,436 5.53
-------- -------- -------- --------
Total investment securities........... 277,381 6.53 311,182 6.26 284,205 6.60 303,838 6.17
Other short-term investments.......... 5,204 5.69 3,564 6.66 3,662 6.96 7,038 5.64
-------- -------- -------- --------
Total interest earning assets......... $685,956 7.80 $665,161 7.42 $685,327 7.69 $637,518 7.34
======== ======== ======== ========
INTEREST BEARING LIABILITIES
Deposits
NOW, Savings and MMDA.................. $154,897 3.67% $125,206 2.46% $155,359 3.51% $121,252 2.33%
Time.................................. 283,219 6.04 268,171 5.41 271,890 5.78 271,142 5.44
-------- -------- -------- --------
Total deposits....................... 438,116 5.20 393,377 4.47 427,249 4.96 392,394 4.48
Borrowed funds......................... 188,588 6.39 218,169 5.33 204,182 6.05 186,015 5.12
Long-term debt........................ 12,650 8.70 12,652 8.70 12,650 8.70 12,655 8.70
--------- -------- -------- --------
Total interest bearing liabilities.... $639,354 5.62 $624,198 4.86 $644,081 5.38 $591,064 4.77
======== ======== ======== ========
MARGIN ANALYSIS
(as a % of earning assets)
Interest income................ 7.80% 7.42% 7.69% 7.34%
Interest expense................ 5.24 4.56 5.06 4.42
---- ---- ---- ----
Net interest income............ 2.56% 2.86% 2.63% 2.92%
===== ==== ==== ====
</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, 2000
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Quantitative and qualitative disclosures about market risk are
presented at December 31, 1999 in Item 7a. of the Company's Annual Report on
Form 10-K, filed with the SEC on March 31, 2000. Management believes there have
been no material changes in the Company's market risk since December 31, 1999,
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
B. Reports on Form 8-K:
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)
Jeremy C. McCamic
Chairman and
Chief Executive Officer
Brent E. Richmond
Chief Operating Officer
Jeffrey A. Baran
Chief Financial Officer
