SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES ACT OF 1934
Date of Report (Date of earliest event reported): November 15, 1999
NATIONAL CITY BANCORPORATION
Exact Name of Registrant as Specified in Charter
Iowa 09426 42-0315731
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
651 Nicollet Mall, Minneapolis, Minnesota 55402
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (612) 904-8500
(Former Name or Former Address, if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS
RESTATEMENT OF ALLOWANCE FOR CREDIT LOSSES
Management of National City Bancorporation (NCB) has identified a "special
reserve" account maintained on the balance sheet of NCB's commercial finance
subsidiary, Diversified Business Credit, Inc. (DBCI). This special reserve was
established by DBCI management in 1993. In connection with this reserve
account, since 1993 DBCI management improperly reported certain information that
should have been addressed in the determination of NCB's consolidated allowance
for credit losses. After consideration of the balance of this account at each
measurement date and the nature of certain additional information previously
available only to DBCI management, NCB management has determined that the
adjustments set forth on the attached schedule are necessary to properly reflect
the consolidated financial statements for each of the annual periods from 1995
through 1998. The adjustments summarized on the attached schedule do not result
in any change to the consolidated net worth of NCB as of September 30, 1999,
December 31, 1998, or December 31, 1997. In addition, there is no effect on the
consolidated earnings of NCB for the year ended December 31, 1998, the nine
months ended September 31, 1999 or any of the quarterly periods during 1999.
NCB intends to file an amendment to its Annual Report (Form 10-K) for the year
ended December 31, 1998.
Attachment - Summary of Adjustments to Earnings and Balance Sheet Amounts.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed by the undersigned hereunto
duly authorized.
NATIONAL CITY BANCORPORATION
Dated: November 15, 1999 By:__________________________________
Thomas J. Freed
Chief Financial Officer
<PAGE>
<TABLE>
<CAPTION>
December 1999
31
-------------------------------------------- -------------------------------
Income Statement 1998 1997 1996 1995 Q1 Q2 Q3
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Fee/interest income, as reported $ 73,090 $ 66,110 $ 57,992 $ 54,952 $ 17,450 $ 18,126 $ 19,470
Adjustment to fee/interest income (50) 800 803 1,020 250 488 601
-------- -------- -------- -------- -------- -------- --------
Adjusted fee/interest income 73,040 66,910 58,795 55,972 17,700 18,614 20,071
-------- -------- -------- -------- -------- -------- --------
Provision for loan losses, as reported (2,940) (2,134) (2,345) (1,502) (612) (509) (510)
Adjustment to provision for loan losses
from fees/interest income 50 (469) (803) (1,020) (250) (488) (601)
-------- -------- -------- -------- -------- -------- --------
(2,890) (2,603) (3,148) (2,522) (862) (997) (1,111)
Adjustment to provision for loan losses:
Adjustment to reflect necessary
(addition to)/reduction of
the allowance for credit losses (2,216) 1,780
Reversal of current year income effect 1,020
Application of charge-offs (net) to current period
provision (730)
-------- -------- -------- -------- -------- -------- --------
Total effect on current period earnings 0 (2,216) 0 2,070
-------- -------- -------- -------- -------- -------- --------
Provision of credit losses, as restated $ (2,890) $ (4,819) $ (3,148) $ (452) $ (862) $ (997) $ (1,111)
======== ======== ======== ======== ======== ======== ========
Total effect on current period earnings $ 0 $ (1,885) $ 0 $ 2,070
Applicable income taxes 0 643 0 (828)
-------- -------- -------- --------
After tax effect on net income 0 (1,242) 0 1,242
Net income, as originally reported 15,664 14,964 12,686 11,454
-------- -------- -------- --------
Net income, as restated $ 15,664 $ 13,722 $ 12,686 $ 12,696
======== ======== ======== ========
% effect of restatement 0% -8% 0% 11%
Earnings per share, as originally reported $ 1.77 $ 1.68 $ 1.42 $ 1.28
Earnings per share, as restated $ 1.77 $ 1.54 $ 1.42 $ 1.42
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
1998
---------------------------------------
Q1 Q2 Q3
-------- -------- --------
$ 20,326 $ 21,084 $ 19,353
(252) (203) (115)
-------- -------- --------
$20,074 $ 20,881 $ 19,238
-------- -------- --------
(480) (260) (650)
252 203 115
-------- -------- --------
(228) (57) (535)
-------- -------- --------
-------- -------- --------
$ (228) $ (57) $ (535)
======== ======== ========
<PAGE>
<TABLE>
<CAPTION>
December
31
1998 1997 1996 1995
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Balance Sheet
Allowance for credit losses, as originally
reported $ 10,423 $ 10,071 $ 8,511 $ 8,602
Transfer of "special reserve" (as recorded by
DBCI) 3,362 4,212 3,816 2,216
Cumulative adjustments to allowance for credit
losses 0 0 (2,216) (2,216)
--------- --------- --------- ---------
Allowance for credit losses, as restated $ 13,785 $ 14,283 $ 10,111 $ 8,602
========= ========= ========= =========
Gross loans receivable, as originally reported $ 762,747 $ 666,382 $ 596,504 $ 552,504
Transfer of "special reserve" (as recorded by
DBCI) 3,362 4,212 3,816 2,216
--------- --------- --------- ---------
Gross loans receivable, as restated $ 766,109 $ 670,594 $ 604,752 $ 554,720
========= ========= ========= =========
Stockholders' equity, as reported $ 147,288 $ 132,927 $ 118,013 $ 106,034
Effect on net earnings, cumulative 0 0 1,242 1,242
--------- --------- --------- ---------
Stockholders' equity, as restated $ 147,288 $ 132,927 $ 119,255 $ 107,276
========= ========= ========= =========
</TABLE>
