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.
----------------------------------------------------------
American Bancorporation
(Exact name of registrant as specified in its charter)
Ohio 31-0724349
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.
July 7, 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
June 30, 2000
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 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.................................... None
Item 3 Defaults Upon Senior Securities.......................... None
Item 4 Submission of Matters to a
Vote of Security Holders..................... 12
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
June 30, 2000
Part 1 Financial Information
Item 1 Financial Statements
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2000 1999 1999
<S> <C> <C> <C>
------------- ------------- -------------
ASSETS
Cash and due from banks ......................... $ 10,914,263 $ 10,579,019 $ 11,774,610
Federal funds sold .............................. 3,520,297 4,877,025 4,823,000
Investment securities available for sale ........ 282,030,874 306,669,719 298,153,127
Loans, net of unearned income ................... 404,086,996 332,826,797 371,223,074
Less allowance for loan losses ................ 3,400,288 3,068,302 3,079,796
------------- ------------- -------------
400,686,708 329,758,495 368,143,278
Premises and equipment - net .................... 9,945,927 9,641,827 10,214,208
Accrued interest receivable ..................... 4,608,824 4,291,154 4,469,869
Excess of cost over net assets acquired ......... 1,813,919 1,494,562 1,355,659
Other assets .................................... 12,385,995 10,658,433 12,357,245
------------- ------------- -------------
TOTAL ASSETS ............................... $ 725,906,807 $ 677,970,234 $ 711,290,996
============= ============= =============
LIABILITIES
Deposits
Non-interest bearing ......................... $ 39,598,730 $ 39,336,873 $ 37,959,587
Interest bearing ............................. 427,941,193 393,944,304 411,317,906
------------- ------------- -------------
TOTAL DEPOSITS ........................... 467,539,923 433,281,177 449,277,493
Borrowed funds ................................. 205,693,398 193,281,312 214,593,201
Accrued interest payable ....................... 2,962,108 2,426,190 2,511,496
Other liabilities .............................. 5,222,308 4,217,142 4,079,845
Long-term debt ................................. -- 4,010 --
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 ........................... 694,067,737 645,859,831 683,112,035
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 ............................. 23,564,933 20,123,474 21,906,156
Accumulated other comprehensive
results, net of tax benefit ................ (9,852,030) (6,139,238) (11,853,362)
------------- ------------- -------------
TOTAL STOCKHOLDERS' EQUITY .................. 31,839,070 32,110,403 28,178,961
------------- ------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY .............. $ 725,906,807 $ 677,970,234 $ 711,290,996
============= ============= =============
</TABLE>
3
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 2000
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Quarter ended June 30, Six Months ended June 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
----------- ----------- ----------- -----------
INTEREST INCOME
Loans ............................. $ 8,397,188 $ 6,864,668 $16,484,171 $13,350,683
Investment securities
Taxable interest income .......... 3,976,968 3,933,458 8,009,785 7,689,465
Non-taxable interest income ...... 760,501 702,216 1,521,733 1,248,095
----------- ----------- ----------- -----------
4,737,469 4,635,674 9,531,518 8,937,560
Short-term investments ............ 56,373 115,119 117,093 238,492
----------- ----------- ----------- -----------
Total interest income ........... 13,191,030 11,615,461 26,132,782 22,526,735
INTEREST EXPENSE
Deposits .......................... 5,271,029 4,336,205 10,180,876 8,781,731
Borrowed funds .................... 3,422,070 2,625,851 6,811,920 4,787,877
----------- ----------- ----------- -----------
Total interest expense .......... 8,693,099 6,962,056 16,992,796 13,569,608
----------- ----------- ----------- -----------
NET INTEREST INCOME ........... 4,497,931 4,653,405 9,139,986 8,957,127
PROVISION FOR LOAN LOSSES .......... 295,000 75,000 475,000 150,000
----------- ----------- ----------- -----------
Net interest income after
provision for loan losses ...... 4,202,931 4,578,405 8,664,986 8,807,127
OTHER INCOME
Service charges on deposit accounts 217,880 244,179 426,677 416,444
Net securities gains .............. 205 75,155 205 342,967
Net gains on sale of loans ........ 364,737 440,763 636,762 846,529
Insurance commissions ............. 21,976 23,906 45,741 42,950
Other income ...................... 423,793 173,926 722,760 308,679
----------- ----------- ----------- -----------
Total other income .............. 1,028,591 957,929 1,832,145 1,957,569
OTHER EXPENSE
Salaries and employee benefits .... 1,677,535 1,698,839 3,360,518 3,471,633
Occupancy expense ................. 648,226 647,939 1,320,471 1,281,631
Other expenses .................... 1,328,595 1,453,337 2,550,983 2,689,201
----------- ----------- ----------- -----------
Total other expense ............. 3,654,356 3,800,115 7,231,972 7,442,465
----------- ----------- ----------- -----------
INCOME BEFORE INCOME TAXES ......... 1,577,166 1,736,219 3,265,159 3,322,231
PROVISION FOR INCOME TAXES ......... 320,314 388,604 667,480 689,996
----------- ----------- ----------- -----------
NET INCOME ......................... $ 1,256,852 $ 1,347,615 $ 2,597,679 $ 2,632,235
=========== =========== =========== ===========
Average Shares Outstanding ....... 3,129,674 3,129,674 3,129,674 3,129,674
BASIC EARNINGS PER SHARE ....... $ 0.40 $ 0.43 $ 0.83 $ 0.84
</TABLE>
4
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AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 2000
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Six months ended June 30,
2000 1999
<S> <C> <C>
----------- ------------
Operating Activities:
Net Income......................................................................$ 2,597,679 $ 2,632,235
Adjustments to reconcile net income to net cash from operating activities:
Depreciation ................................................................. 466,506 436,015
Amortization of intangibles .................................................. 148,381 138,902
Net amortization of premium on investment securities ......................... 214,373 626,325
Provision for loan losses .................................................... 475,000 150,000
Net gain on sale of mortgage servicing rights ................................ (251,393) --
Net gain on sale of investment securities .................................... (205) (342,967)
Net gain on sale of loans .................................................... (636,762) (846,529)
Net increase in accrued interest receivable .................................. (138,892) (897,817)
Net increase in accrued interest payable ..................................... 409,874 119,336
Real estate mortgage loans originated for sale ...............................(33,506,017) (30,093,453)
Proceeds from sale of real estate mortgage loans ............................. 30,730,233 29,920,693
Net increase in other assets ................................................. (1,639,987) (1,219,901)
Net increase (decrease) in other liabilities ................................. 1,140,693 (641,353)
Net decrease from other operating activities ................................. 150,266 (349,226)
------------ ------------
Net cash provided (used) by operating activities ....................... 159,749 (367,740)
Investing Activities:
Investment securities available for sale:
Proceeds from maturities and repayments .................................. 25,095,192 51,687,759
Proceeds from sales ...................................................... 1,577,278 37,727,462
Purchases ................................................................ (7,536,431) (142,487,764)
377,709............................................................. 377,709 --
Change in loans, net of real estate mortgage loans originated for sale ......(29,589,339) (31,309,591)
Purchase of premises and equipment .......................................... (183,225) (342,260)
Proceeds from sale of premises and equipment ................................ 118,297 --
------------ ------------
Net cash used by investing activities ...................................(10,140,519) (84,724,394)
Financing Activities:
Net increase (decrease) in non-interest bearing demand deposits ............. 1,621,569 (160,744)
Net increase in interest bearing demand and savings deposits ................ 11,024,247 3,385,938
Net increase (decrease) in time deposits .................................... (4,850,191) (1,184,212)
Net increase (decrease) in borrowed funds ................................... (8,899,803) 69,390,129
Issuance (principal repayment) of long-term debt ............................ -- (7,232)
Proceeds received in branch acquisition, net of assets acquired .............. 9,860,800 --
Cash dividends paid ......................................................... (938,902) (938,902)
------------ ------------
Net cash provided by financing activities .............................. 7,817,720 70,484,977
------------ ------------
Net Increase (Decrease) in Cash and Cash Equivalents ......................... (2,163,050) (14,607,157)
Cash and Cash Equivalents Beginning Balance .................................... 16,597,610 30,063,201
----------- ------------
Cash and Cash Equivalents Ending Balance........................................$14,434,560 $ 15,456,044
============ ============
</TABLE>
5
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 2000
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Six months ended June 30, 2000 and 1999
2000 1999
------------ ------------
Balance at January 1, ........................ $ 28,178,961 $ 36,447,493
Comprehensive results:
Net Income ................................ 2,597,679 2,632,235
Unrealized security gain (loss), net of tax 1,993,635 (5,818,250)
Reclassification adjustment, net of tax ... 7,697 (212,173)
------------ ------------
Total comprehensive results .............. 4,599,011 (3,398,188)
Dividends declared ($0.30 per share 2000,
$0.30 per share 1999) .................. (938,902) (938,902)
------------ ------------
Balance at June 30, .......................... $ 31,839,070 $ 32,110,403
============ ============
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
June 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 $2,598,000
or $0.83 basic earnings per share, for the six months ended June 30, 2000,
compared to net income of $2,632,000 or $0.84 basic earnings per share, for the
six months ended June 30, 1999. Return on average assets and return on average
equity were 0.72% and 17.68%, respectively, for the six months ended June 30,
2000 compared to 0.80% and 14.75%, respectively, for the six months ended June
30, 1999.
Total assets at June 30, 2000 increased to $725,907,000, from $677,970,000
at June 30, 1999, an increase of 7.1%. Deposits increased to $467,540,000 at
June 30, 2000, from $433,281,000 at June 30, 1999, an increase of 7.9%. Total
stockholders' equity was $31,839,000 at June 30, 2000 compared with $32,110,000
at June 30, 1999, a decrease of 0.8%. Stockholders' equity, excluding net
unrealized gains and losses, totalled $41,691,000 at June 30, 2000, an increase
of $3,442,000 or 9.0% at June 30, 1999. The unrealized loss on investment
securities available for sale, a result of market value adjustments, totalled
$9,852,000 at June 30, 2000, compared to $6,139,000 at June 30, 1999. If these
available for sale securities are held to maturity, no market value adjustment
will be realized.
RESULTS OF OPERATIONS
SIX MONTH COMPARISON
Net Income. Net income for the six months ended June 30, 2000 amounted to
$2,598,000, or $0.83 basic earnings per share, compared to net income of
$2,632,000 or $0.84 basic earnings per share, for the six months ended June 30,
1999. The decrease was the result of an increase in the provision for loan
losses which was offset by an increase in net interest income and other income
as well as a decrease in other expenses.
Net Interest Income. Net interest income before provision for loan losses
for the six months ended June 30, 2000 amounted to $9,140,000, an increase of
$183,000 or 2.0%, compared to the six months ended June 30, 1999. The increase
resulted primarily from a $61,315,000 or 9.8% increase in average interest
earning assets, which was partially offset by a 20 basis point decrease in the
Company's margin.
7
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 2000
Total interest income for the six months ended June 30, 2000 amounted to
$26,133,000 an increase of $3,606,000 or 16.0%, compared to the six months ended
June 30, 1999. The increase resulted primarily from an increase in the average
interest earning assets and a 41 basis point increase in the average yield on
earning assets. Average loans outstanding increased $79,749,000 or 25.3% with
average commercial loans increasing $33,696,000 or 26.7%, average real estate
loans increasing $23,709,000 or 17.1% and average consumer installment loans
increasing $22,344,000 or 45.1%. The average yield on loans decreased from 8.48%
in 1999 to 8.36% in 2000. Average investment securities and other short-term
investments outstanding decreased $18,433,000 or 6.0%, while the average yield
increased from 5.94% in 1999 to 6.64% in 2000.
Total interest expense for the six months ended June 30, 2000 amounted to
$16,993,000, an increase of $3,423,000 or 25.2% , compared to the six months
ended June 30, 1999. The increase resulted primarily from a $71,947,000 or 12.5%
increase in the average volume of interest bearing liabilities along with a 54
basis point increase in interest rates paid on such liabilities. Average NOW,
money market and savings accounts increased $36,315,000 or 30.4%. Average time
deposits decreased $6,402,000 or 2.3%. Average noninterest bearing accounts
increased $2,073,000 or 5.6% and represented 8.5% of average total deposits for
the six months ended June 30, 2000. Average borrowed funds increased $42,033,000
or 23.0%, while the average rate paid on borrowed funds increased from 4.99% in
1999 to 5.91% in 2000.
Provision for Loan Losses. The loan loss provision for the six months ended
June 30, 2000 was $475,000, compared to $150,000 for the same period in 1999.
The increase in the loan loss provision resulted primarily from a $79,749,000 or
25.3% increase in the average loan portfolio for the six months ended June 30,
2000, compared to the same period in 1999.
Other Income. Other income for the six months ended June 30, 2000 amounted
to $1,832,000, a decrease of 6.4% compared to the six months ended June 30,
1999. There were security gains of $205 during the six months ended June 30,
1999, compared to net gains on sale of investment securities of $343,000 in
1999. Net gains on sale of loans totalled $637,000 in 2000 compared to $847,000
in 1999, a decrease of 24.8%. 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 six months ended June 30, 2000
amounted to $7,232,000, a decrease of $210,000 or 2.8%, compared to the six
months ended June 30, 1999. Salaries and employee benefits decreased $111,000 or
3.2%. Occupancy and equipment expense increased $38,000 or 3.0%. Other
(miscellaneous) expenses decreased $138,000 or 5.1%.
Provision for Income Taxes. The provision for income taxes for the six
months ended June 30, 2000 was $667,000, compared to $690,000 for the six months
ended June 30, 1999. The decrease is primarily the result of additional tax
exempt income in 2000.
8
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 2000
RESULTS OF OPERATIONS
QUARTER COMPARISON
Net Income. Net income for the quarter ended June 30, 2000 amounted to
$1,257,000, compared to net income of $1,348,000 for the quarter ended June 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
increases in other income.
Net Interest Income. Net interest income before provision for loan losses
for the quarter ended June 30, 2000 amounted to $4,498,000, a decrease of
$155,000 or 3.3%, compared to the quarter ended June 30, 1999. The decrease
resulted primarily from a 29 basis point decrease in the Company's margin, which
was partially offset by a $48,687,000 increase in average interest earning
assets.
Total interest income for the quarter ended June 30, 2000 amounted to
$13,191,000, an increase of $1,576,000 compared to the same period in 1999. The
increase resulted primarily from an increase in the average volume of earning
assets along with a 40 basis point increase in the average yield on earning
assets. Average loans outstanding increased $76,721,000 or 23.7%. Average
commercial loans increased $31,132,000 or 23.7%, average consumer installment
loans increased $22,793,000 or 44.3%, while average real estate loans increased
$22,795,000 or 16.1%. The average yield on loans decreased from 8.47% in 1999 to
8.38% in 2000.
Average investment securities and other short-term investments decreased
$28,034,000 and the yield increased from 6.04% in 1999 to 6.70% in 2000.
Total interest expense for the quarter ended June 30, 2000 amounted to
$8,693,000, an increase of $1,731,000 or 24.9%. The increase resulted primarily
from a $55,912,000 or 9.5% increase in the average volume of interest bearing
liabilities and a 67 basis point increase in interest rates paid on such
liabilities.
Provision for Loan Losses. The loan loss provision for the quarter ended
June 30, 2000 was $295,000, compared to $75,000 for same period in 1999. The
increase in the loan loss provision resulted primarily from a $76,721,000 or
23.7% increase in the average loan portfolio for the quarter ended June 30,
2000, compared to the same period in 1999.
Other Income. Other income amounted to $1,029,000 for the quarter ended
June 30, 2000, compared to $958,000 for the quarter ended June 30, 1999. Net
gains on sale of loans decreased $76,000 or 17.2%. Net gain on sale of
investment securities totalled $205 for the quarter ended June 30, 2000 compared
to $75,000 for the same period in 1999.
9
<PAGE>
AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 2000
Other Expense. Total other expense for the quarter ended June 30, 2000
amounted to $3,654,000, a decrease of $146,000 or 3.8%, compared to the same
period in 1999. Salaries and employee benefits decreased $21,000 or 1.3%. Other
(miscellaneous) expenses decreased $124,000 or 8.5%.
Provision for Income Taxes. The provision for income taxes for the
quarter ended June 30, 2000 was $320,000, compared to $389,000 for the quarter
ended June 30, 1999. The decrease is primarily the result of additional
tax-exempt income in 2000.
ASSET QUALITY
Nonperforming loans totalled $3,389,000 or 0.8% of total loans at June 30,
2000, compared to $2,568,000 or 0.8% of total loans at June 30, 1999.
Nonperforming loans at June 30, 2000 consisted of nonaccrual loans totalling
$1,577,000, 90 day delinquent loans of $1,457,000, and restructured loans
aggregating $355,000. Other real estate totalled $278,000 at June 30, 2000,
compared to $533,000 at June 30, 1999.
CAPITAL RESOURCES
Stockholders' equity totalled $31,839,000 at June 30, 2000. The Company's
risk-based capital ratio was 13.7%, of which 12.9% constituted common
stockholder equity, while the risk-based capital ratio for the Company's bank
subsidiary, Wheeling National Bank, was 13.2%, with common stockholder equity of
12.3%. At June 30, 2000 the Company's leverage capital ratio was 7.3%, while the
leverage ratio for Wheeling National Bank was 6.8%.
10
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AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 2000
<TABLE>
<CAPTION>
Three months ended June 30, Six months ended June 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.......................... $162,286 8.85% $131,154 8.78% $160,135 8.76% $ 126,439 8.68%
Real estate........................ 164,352 7.66 141,557 7.86 162,427 7.68 138,718 8.00
Installment-net................... 74,276 8.31 51,483 8.28 71,942 8.29 49,598 8.33
-------- -------- -------- --------
Total loans .................... 400,915 8.38 324,194 8.47 394,504 8.36 314,756 8.48
Investment securities
Taxable............................ 226,184 7.03 248,453 6.33 230,541 6.95 247,834 6.21
Tax-exempt......................... 57,413 5.30 57,420 4.89 57,075 5.33 52,332 4.77
-------- -------- -------- --------
Total investment securities .... 283,597 6.68 305,873 6.06 287,616 6.63 300,166 5.96
Other short-term investments...... 2,785 8.10 8,543 5.39 2,892 8.10 8,775 5.44
-------- -------- -------- --------
Total interest earning assets...... $687,297 7.68 $638,610 7.28 $685,012 7.63 $623,697 7.22
======== ======== ======== ========
INTEREST BEARING LIABILITIES
Deposits
NOW, Savings and MMDA............... $159,066 3.56% $120,534 2.27% $155,590 3.43% $119,275 2.26%
Time............................... 268,894 5.74 271,070 5.39 266,225 5.64 272,627 5.45
-------- ------- ------- --------
Total deposits.................... 427,960 4.93 391,604 4.43 421,815 4.83 391,902 4.48
Borrowed funds...................... 206,125 6.11 186,563 5.04 211,979 5.91 169,939 4.99
Long-term debt..................... 12,650 8.70 12,655 8.71 12,650 8.70 12,657 8.71
-------- ------- ------- --------
Total interest
bearing liabilities............ $646,735 5.38 $590,822 4.71 $646,444 5.26 $574,498 4.72
======== ======== ======== ========
MARGIN ANALYSIS
(as a % of earning assets)
Interest income................ 7.68% 7.28% 7.63% 7.22%
Interest expense................ 5.06 4.37 4.96 4.35
---- ---- ---- ----
Net interest income............ 2.62% 2.91% 2.67% 2.87%
==== ==== ==== ====
</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
June 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 30, 2000. Management believes there have
been no material changes in the Company's market risk since December 31, 1999.
Part II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Securities Holders
The Annual Meeting of Shareholders was held May 17, 2000. Proxies
were solicited pursuant to Regulation 14 of the 1934 Act. Shares represented in
person or by proxy totalled 2,851,103 or 91.10% of the shares then outstanding.
Shareholders approved by affirmative vote the following proposals:
1. To fix the number of positions for director at 10, with 2
vacancies that may be filled by the Board of Directors:
Vote For: 2,831,466 Against: 14,299 Abstain: 5,338
2. To elect John J. Malik, Jr., Jeremy C. McCamic and Jolyon
W. McCamic directors for a three year term.
Vote For Vote Withheld Abstain
John J. Malik, Jr. 2,840,756 10,347 0
Jeremy C. McCamic 2,840,413 10,690 0
Jolyon W. McCamic 2,840,453 10,650 0
Continuing in the position of director were the following:
Term Expiring
Jack O. Cartner 2001
Paul W. Donahie 2001
Abigail M. Feinknopf 2002
Jay T. McCamic 2002
Jeffrey W. McCamic 2002
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)
Jeremy C. McCamic
Chairman and
Chief Executive Officer
Date 8/15/00 /s/ Brent E. Richmond
Brent E. Richmond
Chief Operating Officer
Date 8/15/00 /s/ Jeffrey A. Baran
Jeffrey A. Baran
Chief Financial Officer
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