<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended June 30, 1995
Commission File Number 0-10756
FINANCIAL TRUST CORP
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
Pennsylvania 23-2229155
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1415 Ritner Highway, Carlisle, Pennsylvania 17013
(Address of principal executive offices) (Zip Code)
</TABLE>
Registrant's telephone number,including area code: (717) 243-8003
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 issuer's classes of
common stock as of August 07, 1995.
Common Stock, $5.00 Par Value -- 6,710,867 Shares
<PAGE>
INDEX
FINANCIAL TRUST CORP AND SUBSIDIARIES
<TABLE>
<CAPTION>
PAGE
-----
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated balance sheets --
June 30, 1995 and December 31, 1994 3
Consolidated statements of income --
Three months ended June 30, 1995 and 1994 and Six months ended June 30, 1995 and 1994 4
Consolidated statements of cash flows --
Six months ended June 30, 1995 and 1994 5
Notes to consolidated financial statements --
June 30, 1995 6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9
PART II. OTHER INFORMATION 13
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES 13
</TABLE>
1
<PAGE>
PART I. FINANCIAL INFORMATION -- ITEM 1. FINANCIAL STATEMENTS
FINANCIAL TRUST CORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
1995 1994
----------- ------------
<S> <C> <C>
ASSETS
Cash and Due from banks $ 37,478 $ 33,122
Federal funds sold 18,771 1,643
Interest bearing balances with banks 222 237
Investment securities held-to-maturity (Fair values of $238,724 and $249,219
respectively) 238,051 256,133
Investment securities available-for-sale (amortized cost basis of $13,720 and $8,793
respectively) 17,194 11,420
Loans, net of unearned income of $50 and $81 respectively 635,057 619,273
Less: Reserve for loan losses 9,109 8,843
----------- ------------
Net Loans 625,948 610,430
Premises and equipment 18,640 17,817
Accrued interest receivable 7,433 7,261
Intangible assets 8,445 8,789
Other assets 8,701 7,066
----------- ------------
TOTAL ASSETS $ 980,883 $ 953,918
----------- ------------
----------- ------------
LIABILITIES
Deposits:
Non-interest bearing $ 98,795 $ 82,507
Interest bearing 697,898 691,963
----------- ------------
Total Deposits 796,693 774,470
Short-term borrowings 53,464 54,844
Long-term debt 778 811
Accrued interest payable 1,771 1,318
Other liabilites 7,081 6,934
----------- ------------
TOTAL LIABILITIES $ 859,787 $ 838,377
----------- ------------
----------- ------------
SHAREHOLDERS' EQUITY (NOTE G)
Common Stock, par value $5 per share -- authorized 8,000,000 shares authorized;
6,710,867 issued and outstanding 33,554 33,554
Surplus 29,443 29,443
Net unrealized holding gain from securities available-for-sale, net of taxes 2,236 1,763
Retained earnings 55,863 50,781
----------- ------------
TOTAL SHAREHOLDERS' EQUITY 121,096 115,541
----------- ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 980,883 $ 953,918
----------- ------------
----------- ------------
</TABLE>
See notes to consolidated financial statements.
3
<PAGE>
FINANCIAL TRUST CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30 SIX MONTHS ENDED JUNE 30
------------------------ ------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Interest Income:
Loans, including fees $ 14,238 $ 11,833 $ 27,776 $ 23,461
Investment securities:
Taxable 2,741 2,661 5,505 4,799
Tax-exempt 991 971 2,001 1,927
Other, primarily federal funds sold 175 358 211 443
----------- ----------- ----------- -----------
TOTAL INTEREST INCOME 18,145 15,823 35,493 30,630
Interest Expense:
Deposits 6,772 5,620 12,922 10,592
Short-term borrowings and long-term debt 662 335 1,411 594
----------- ----------- ----------- -----------
TOTAL INTEREST EXPENSE 7,434 5,955 14,333 11,186
----------- ----------- ----------- -----------
NET INTEREST INCOME 10,711 9,868 21,160 19,444
Provision for possible loan losses 175 175 305 340
----------- ----------- ----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR POSSIBLE LOAN
LOSSES 10,536 9,693 20,855 19,104
Other Operating Income:
Trust Department income 639 606 1,130 1,107
Service charges on deposit accounts 504 475 992 905
Investment security gains 125 147 144 184
Other 582 628 1,296 1,298
----------- ----------- ----------- -----------
TOTAL OTHER OPERATING INCOME 1,850 1,856 3,562 3,494
----------- ----------- ----------- -----------
Other Operating Expense:
Salaries and employee benefits 3,257 3,100 6,586 6,082
Net building occupancy expense 467 470 984 962
Equipment rental, depreciation, and maintenance 385 347 750 693
Other 2,676 2,871 5,294 5,011
----------- ----------- ----------- -----------
TOTAL OTHER OPERATING EXPENSES 6,785 6,788 13,614 12,748
----------- ----------- ----------- -----------
INCOME BEFORE INCOME TAXES 5,601 4,761 10,803 9,850
Applicable income taxes 1,434 1,056 2,634 2,294
----------- ----------- ----------- -----------
NET INCOME $ 4,167 $ 3,705 $ 8,169 $ 7,556
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
PER SHARE DATA
Net income $ 0.62 $ 0.55 $ 1.22 $ 1.13
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Dividends $ 0.23 $ 0.21 $ 0.46 $ 0.42
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Weighted average number of shares outstanding 6,710,867 6,711,692 6,710,867 6,711,692
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
FINANCIAL TRUST CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30
--------------------
1995 1994
--------- ---------
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income $ 8,169 $ 7,556
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 724 651
Amortization for intangible assets 344 279
Provision for loan losses 305 340
Net amortization of investment security premiums 595 421
Deferred income tax expense 2 0
Increase in interest receivable (172) (791)
Increase in interest payable 453 84
Decrease in other liabilities (109) (785)
--------- ---------
CASH PROVIDED BY OPERATING ACTIVITIES 10,311 7,755
CASH FLOW FROM INVESTING ACTIVITIES:
(Increase) decrease in interest bearing bank balances 15 (1,786)
Proceeds from sales and maturities of investment securities 30,299 43,288
Purchases of investment securities (17,859) (102,159)
Increase in loans (15,784) (14,402)
Net loan charge-offs (39) (1)
Purchase of premises and equipment (1,547) (2,738)
Purchase of intangible assets 0 (6,381)
Increase in other assets (1,635) (1,064)
--------- ---------
CASH USED IN INVESTING ACTIVITIES (6,550) (85,243)
--------- ---------
CASH FLOW FROM FINANCING ACTIVITIES
Increase in deposits 22,223 83,500
Decrease in short-term borrowings (1,380) (3,700)
Payments on long-term debt (33) (34)
Cash dividends (3,087) (2,819)
Issuance of shares under dividend reinvestment plan 0 0
--------- ---------
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 17,723 76,947
--------- ---------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 21,484 (541)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 34,765 44,690
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 56,249 $ 44,149
--------- ---------
--------- ---------
</TABLE>
See notes to consolidated financial statements.
5
<PAGE>
FINANCIAL TRUST CORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1995
NOTE A -- BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Article
10 of Regulation S-X. Accordingly, they do not include all of the disclosures
required by generally accepted accounting principles. In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating results for the
three months and six months ended June 30, 1995 are not necessarily indicative
of the results that may be expected for the year ended December 31, 1995. For
further information, refer to the consolidated financial statements and
footnotes thereto included in the Company's annual report on Form 10-K for the
year ended December 31, 1995.
NOTE B -- INCOME TAXES
Income tax expense is less than the amount calculated using the statutory
tax rate primarily as a result of tax exempt income earned from state and
political subdivision obligations.
NOTE C -- COMMITMENTS AND CONTINGENT LIABILITIES
In the normal course of business, the bank makes various commitments and
incurs certain contingent liabilities which are not reflected in the
accompanying financial statements. There were firm commitments to extend credit
in the amount of $110,980,000 at June 30, 1995. Commitments under outstanding
standby letters of credit amounted to $8,681,000 at June 30, 1995. Management
does not anticipate any losses as a result of these customary banking
transactions.
NOTE D
The amortized cost and fair values of investment securities were as follows
at the dates indicated:
(Dollars in thousands)
<TABLE>
<CAPTION>
JUNE 30, 1995
------------------------
AMORTIZED
COST FAIR VALUE
----------- -----------
<S> <C> <C>
U.S. Treasury and other U.S. government agencies $ 136,383 $ 136,522
State and political subdivisions 82,800 83,376
Corporate and mortgage backed securities 18,868 18,826
----------- -----------
Total Held-to-maturity $ 238,051 $ 238,724
----------- -----------
----------- -----------
U.S. Treasury and other U.S. government agencies $ 7,440 $ 7,484
Equity securities including FHLB stock 6,280 9,710
----------- -----------
Total Available-for-sale $ 13,720 $ 17,194
----------- -----------
----------- -----------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
DECEMBER 31, 1994
------------------------
AMORTIZED
COST FAIR VALUE
----------- -----------
<S> <C> <C>
U.S. Treasury and other government agencies $ 153,119 $ 148,067
State and political subdivisions 82,299 81,054
Corporate and mortgage backed securities 20,715 20,098
----------- -----------
Total Held-to-Maturity $ 256,133 $ 249,219
----------- -----------
----------- -----------
U.S. Treasury and other U.S. government agencies $ 999 $ 978
Corporate and mortgage backed securities 1,753 1,740
Equity securities including FHLB stock 6,041 8,702
----------- -----------
Total Available-for-sale $ 8,793 $ 11,420
----------- -----------
----------- -----------
</TABLE>
NOTE E -- LOANS
Loans consisted of the following at the dates indicated:
(Dollars in thousands)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1995 1994
----------- ------------
<S> <C> <C>
Commercial, financial and agricultural $ 67,402 $ 58,730
Real estate -- construction 7,846 6,861
Real estate -- residential 351,291 352,060
Real estate -- other 137,683 135,030
Consumer 70,885 66,673
----------- ------------
635,107 619,354
Less: unearned income 50 81
----------- ------------
Total Loans $ 635,057 $ 619,273
----------- ------------
----------- ------------
</TABLE>
NOTE F -- DEPOSITS
Deposit composition was as follows, at the dates indicated:
(Dollars in thousands)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1995 1994
----------- ------------
<S> <C> <C>
Non-interest bearing demand deposits $ 98,795 $ 82,507
Interest bearing:
Interest bearing demand deposits 152,670 141,068
Money market deposit accounts 61,787 76,131
Passbook/statement savings 138,026 159,083
Time deposits less than $100,000 313,202 285,291
Time deposits of $100,000 and over 32,213 30,390
----------- ------------
$ 796,693 $ 774,470
----------- ------------
----------- ------------
</TABLE>
NOTE G -- SHAREHOLDERS' EQUITY
On July 20, 1994, the Board of Directors approved a 33 1/3% stock dividend,
payable August 29, 1994, to shareholders of record August 15, 1994. Earnings per
share, dividends per share and weighted average shares outstanding references
for 1994's first half have been restated to reflect the effects of the stock
dividend. The effect of common stock equivalents is not significant for any
period presented.
7
<PAGE>
FINANCIAL TRUST CORP
PART I. -- ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
SUMMARY
Financial Trust Corp recorded net income of $4,167,000 for the second
quarter of 1995, a 12.5% increase over the $3,705,000 earned during the second
quarter of 1994. On a per share basis, net income totaled $.62, compared to $.55
for the second quarter of 1994 and $.60 for the first quarter of 1995.
Net income of $8,169,000 for the first half of 1995 represents an 8.1%
increase over the $7,556,000 earned during the first half of 1994. Net income
per share was $1.22 for the first half of 1995 and $1.13 for the first half of
1994.
The following statistics compare 1995's year to date performance to that of
1994:
<TABLE>
<CAPTION>
2ND QUARTER 2ND QUARTER FIRST HALF FIRST HALF
1995 1994 1995 1994
------------- ------------- ----------- -----------
<S> <C> <C> <C> <C>
Return on average assets 1.73% 1.57% 1.71% 1.67%
Return on average equity 14.07% 13.62% 13.94% 13.85%
Average equity/Average assets 12.31% 11.51% 12.27% 12.06%
</TABLE>
A more detailed discussion of the elements having the greatest impact on
net income follows.
NET INTEREST INCOME
Net interest income is the amount by which interest income on earning
assests exceeds interest paid on interest bearing liabilities. The amount of net
interest income is affected by changes in interest rates, account balances or
volume, and the mix of earning assets and interest bearing liabilities.
Net interest income for the second quarter of 1995 increased $843,000, or
8.5%, over the second quarter of 1994. Net interest income for the first half of
1995 increased $1,716,000 or 8.8% over the first half of 1994.
Net interest income for 1995's second quarter grew by 8.5% (8.2% on a tax
equivalent basis) due to a 9 basis point increase in net interest spread and a
28 basis point increase in net interest margin over 1994's second quarter. The
large net interest margin increase was driven by a 15.2% increase in average
daily free funds that arose due to a 10.5% increase in average daily
non-interest bearing demand deposits and an 8.8% increase in average daily
shareholders' equity. The net interest spread increase was driven by asset mix
with a 7.7% increase in average daily loans and a 95 basis point increase in
loan portfolio yield being the primary factors.
Net interest income for 1995's first half grew by 8.8% (8.4% on a tax
equivalent basis) due to a 12 basis point increase in net interest margin over
1994's first half. Net interest spread was unchanged for those periods. The net
interest margin increase was fueled primarly by a 10.0% increase in free funds.
Non-interest bearing demand deposits were up 11.8%, on an average daily basis,
over 1994's first half.
8
<PAGE>
The tables that follow, state results on a fully taxable equivalent basis,
net of disallowed interest expense and explain further the net interest income
charges (Dollars in thousands):
<TABLE>
<CAPTION>
2ND QUARTER, 1995 2ND QUARTER, 1994
----------------------- -----------------------
AVG. BALANCE RATES AVG. BALANCE RATES
------------ --------- ------------ ---------
<S> <C> <C> <C> <C>
Interest earning assets (F.T.E.) $ 897,172 8.42% $ 878,317 7.54%
Interest bearing liabilities 748,860 3.98% 749,585 3.19%
------------ --------- ------------ ---------
Free Funds $ 148,312 $ 128,732
------------ ------------
------------ ------------
Net interest income (F.T.E.) $ 11,450 $ 10,587
------------ ------------
------------ ------------
Net interest spread (F.T.E.) 4.44% 4.35%
--------- ---------
--------- ---------
Free funds ratio 16.53% 14.66%
------------ ------------
------------ ------------
Net interest margin (F.T.E.) 5.10% 4.82%
--------- ---------
--------- ---------
1ST HALF, 1995 1ST HALF, 1994
----------------------- -----------------------
Interest earning assets (F.T.E.) $ 891,346 8.31% $ 843,039 7.62%
Interest bearing liabilities 746,710 3.87% 711,528 3.17%
------------ --------- ------------ ---------
Free funds $ 144,636 $ 131,511
------------ ------------
------------ ------------
Net interest income (F.T.E.) $ 22,637 $ 20,885
------------ ------------
------------ ------------
Net interest spread (F.T.E.) 4.44% 4.45%
--------- ---------
--------- ---------
Free funds ratio 16.23% 15.60%
------------ ------------
------------ ------------
Net interest margin (F.T.E.) 5.06% 4.94%
--------- ---------
--------- ---------
</TABLE>
OTHER INCOME AND OTHER EXPENSES
Total non-interest income increased $68,000, or 1.9%, over the first half
of 1994 but declined $6,000 or 0.3% versus 1994's second quarter. Increases in
fiduciary income and service charges were offset by declines in investment
security gains and other income. Investment security gains were realized via the
sale of equity securities from the available for sale portfolio.
Total non-interest expenses decreased by $3,000 versus the second quarter
of 1994 and increased by $866,000 or 6.8% over the first half of 1994.
Second quarter 1994 operating expenses had been inflated somewhat due to
the opening of four new offices during that quarter, including three acquired
via RTC bid procedures. Salaries and employee benefits show the largest 1995
year-to-date increase due to the staffing of the four aforementioned offices
throughout all six months of 1995 plus the opening of an additional branch
office late in the second quarter of 1995. In addition, a new corporate
headquarters was opened during 1995's second quarter.
9
<PAGE>
The provision for loan losses has decreased by $35,000, or 10.3%, versus
1994's first six months of operation because loan quality remains very good. The
ratio of reserves to gross loans decreased to 1.43% at June 30, 1995 versus
1.46% at June 30, 1994 but approximately 40% of the $9,109,000 reserve for loan
losses remains unallocated. A summary of nonperforming assets follows:
Nonperforming Assets (Dollars in thousands):
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1995 1994
--------- ------------
<S> <C> <C>
Loans on nonaccrual (cash) basis $ 565 $ 371
Loans past due 90 or more days and still accruing 2,728 2,250
Nonperforming renegotiated loans 0 0
Other real estate owned (OREO) 138 343
--------- ------------
Total nonperforming assets $ 3,431 $ 2,964
--------- ------------
--------- ------------
Ratio of nonperforming assets to total loans and OREO 0.54% 0.48%
Ratio of nonperforming assets to total assets 0.35% 0.31%
Ratio of reserve for loan losses to nonperforming assets 265.49% 298.35%
Ratio of reserve for loan losses to nonaccrual loans and OREO 1295.73% 1238.52%
</TABLE>
Income before income taxes is up $953,000 and income tax expense is up
$340,000 over 1994's first half. This appropriately reflects our marginal income
tax bracket. The effective federal income tax rates were 24.4% for 1995's first
half and 23.3% for 1994's first six months.
LIQUIDITY AND CAPITAL RESOURCES
The Corporation continues to follow a strategy of pricing assets and
liabilities according to prevailing market rates and matching maturities as
prudently as possible within the guidelines of sound marketing and competitive
practices. The overall liquidity is strengthened by the reliance upon core
deposits as the major source of funds.
The primary objective of Financial Trust Corp's asset/liability management
is to maximize net interest income while maintaining adequate levels of
liquidity and interest rate risk. Meeting the needs of the local communities we
serve is also quite important. Management is committed to continued investment
in these local communities and is confident that it will be able to meet credit
demands while preserving liquidity and profitability.
Rate sensitivity is measured primarily by the use of monthly gap analyses
for each of the four financial institutions as well as on a consolidated banking
company basis. While individual institutions may become positively or negatively
gapped, within the framework of their ALCO policies, the consolidated gap
position is kept balanced and moves only minimally from a 1 to 1 relationship
for rate sensitive assets to rate sensitive liabilities. Consolidated banking
company gap analysis prepared as of June 30, 1995 on a cumulative basis is
attached as Exhibit I and demonstrates the following rate sensitive asset/rate
sensitive liability ratios at the date:
<TABLE>
<CAPTION>
INCLUDING PREPAYMENTS EXCLUDING PREPAYMENTS
-------------------------- ---------------------------
<S> <C> <C>
0- 3 months .96 to 1 .89 to 1
0- 6 months 1.06 to 1 .97 to 1
0- 9 months 1.21 to 1 1.09 to 1
0-12 months 1.41 to 1 1.26 to 1
</TABLE>
The six months of cumulative gap history disclosed in the aforementioned
exhibit demonstrates that our gaps stay in a rather tight range. We feel that we
can react to rate movements in either direction from our current position. We
perform quarterly interest rate shock analyyses at the bank level to supplement
the gap analysis.
Historically, the Corporation has operated with a very strong capital base,
well above industry averages. Total shareholders' equity represented 12.35% of
assets at June 30, 1995, versus 11.76% one year earlier. The consolidated risk
based capital ratios at June 30, 1995 were 18.77% for Tier 1 and
10
<PAGE>
20.01% for total capital. At June 30, 1994 those ratios were 17.34% for Tier 1
and 18.5% for total capital. The Tier 1 leverage ratio at June 30, 1995 was
11.81%. All banking and thrift subsidiaries individually exceed minimum
regulatory capital requirements at June 30, 1995 by comfortable margin. Given
the strong capital base, no equity raising activities are planned for the near
future. Capital position and asset quality have consistently been strengths of
the Corporation.
Any loans classified for regulatory purposes as loss, doubtful, substandard
or special mention that have not been disclosed under Item III of Industry Guide
3 do not represent or result from trends or uncertainties which management
reasonably expects will materially impact future operating results, liquidity or
capital resources.
Financial Trust Corp's management is not aware of any current
recommendations by regulatory authorities which, if implemented, would have a
material effect on the corporation's liquidity, capital resources or operations.
EXPLANATION OF MATERIAL BALANCE SHEET FLUCTUATIONS:
Federal funds sold were up $17.1 million and non-interest bearing demand
deposits were up $16.3 million on June 30, 1995 versus December 31, 1994 totals.
These were 1,042.5% and 19.7% increases, respectively. An unusual short-term
transaction represented approximately $9 million of the growth in each area and
the remainder was due to normal growth.
11
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Neither Financial Trust Corp nor any subsidiary is a part to any material
legal proceedings other than ordinary routine litigation incidental to their
business.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
No reports on Form 8-K were filed during the three months ending June 30,
1995.
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.
FINANCIAL TRUST CORP
(Registrant)
<TABLE>
<S> <C>
Date: AUGUST 8, 1995 RAY L. WOLFE
Ray L. Wolfe, Chairman and CEO
(Principal Executive Officer)
Date: AUGUST 8, 1995 BRADLEY S. EVERLY
Bradley S. Everly
Senior Vice President, Treasurer and CFO
(Principal Financial Officer)
</TABLE>
13
<PAGE>
RATE SENSITIVITY (GAP) ANALYSIS -- CUMULATIVE SUMMARY AT VARIOUS MATURITIES
FINANCIAL TRUST CORP CONSOLIDATED -- JUNE 30, 1995
<TABLE>
<CAPTION>
ASSETS: 0-30 0-60 0-90 0-180 0-270
--------- --------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C>
Loans:
Commercial
Loans-Fixed 5,921,320 7,990,708 10,330,342 14,944,405 21,635,646
Commercial
Loans-Variable 62,463,284 62,898,584 63,446,292 64,891,074 66,934,555
Installment
Loans-Fixed 2,217,899 3,999,943 5,855,399 11,368,624 16,798,015
Installment
Prepayments 1,613,250 3,226,500 4,839,750 9,679,500 14,519,250
Mortgage Loans -
Fixed Rate 733,286 1,395,147 1,853,802 3,247,681 5,080,562
Mortgage Loans -
Variable Rate 11,165,927 31,088,375 53,646,863 119,584,232 171,573,686
Mortgage
Prepayments 3,044,207 6,088,414 9,132,621 18,265,242 27,397,863
Student Loans 13,262,043 13,262,043 13,262,043 13,262,043 13,262,043
Visa/Master Card
PCR Loans 58,182 58,182 58,182 58,182 58,182
Home Equity Loans 15,259,855 15,259,855 15,259,855 15,259,855 15,259,855
Overdrafts 181,740 181,740 181,740 181,740 181,740
---------- ---------- ---------- ----------- -----------
Rate Sensitive
Loans 115,920,993 145,449,491 177,866,889 270,742,578 352,701,397
Securities:
Treasury Securities 0 999,949 999,949 5,987,437 11,528,965
Gov't Agencies 2,256,399 2,256,399 3,256,399 8,256,399 9,775,865
State & Municipal 2,005,714 3,970,960 6,181,660 9,066,854 11,320,446
Taxable Municipal 265,000 735,338 941,407 1,141,407 1,141,407
Corporate
Securities 500,000 2,720,643 2,720,643 5,429,275 6,982,505
FHLB Stock 2,318,300 2,318,300 2,318,300 2,318,300 2,318,300
Equity Securites 0 0 0 0 0
Mortgage Backed
Securities 9,500 19,000 28,500 57,000 255,392
Bank Balances -
Time CD's 60,921 60,921 60,921 60,921 60,921
Rate Swap-PNB
(June, December) 0 0 0 0 0
---------- ---------- ---------- ----------- -----------
Rate Sensitive
Securities 7,415,834 13,081,510 16,507,778 32,317,592 43,383,800
Fed Funds Sold 22,770,744 22,770,744 22,770,744 22,770,744 22,770,744
Cash & Due From
Banks
Less Reserve for
Loan Losses
Other Assets
---------- ---------- ---------- ----------- -----------
RATE SENSITIVE
ASSETS 146,107,571 181,301,745 217,145,411 325,830,913 418,855,941
</TABLE>
<TABLE>
<CAPTION>
ASSETS (Continued):
RATE
SENSITIVE N.R.S.
0-1 YEAR 0-2 YEARS 0-5 YEARS TOTAL TOTAL
---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Loans:
Commercial
Loans-Fixed 24,832,822 30,314,408 43,111,586 73,752,701 458,255
Commercial
Loans-Variable 70,584,828 71,077,314 74,056,055 82,735,305 81,796
Installment
Loans-Fixed 22,035,786 40,457,440 67,656,194 80,165,772 0
Installment
Prepayments 19,359,000 21,159,000 23,859,000 0 0
Mortgage Loans -
Fixed Rate 6,521,267 12,210,540 29,419,717 75,244,230 190,176
Mortgage Loans -
Variable Rate 237,679,061 266,634,715 287,885,662 288,718,018 106,329
Mortgage
Prepayments 36,530,484 40,130,484 43,730,484 0
Student Loans 13,262,043 13,262,043 13,262,043 13,262,043
Visa/Master Card
PCR Loans 58,182 58,182 58,182 58,182 1,195,164
Home Equity Loans 15,259,855 15,259,855 15,259,855 15,259,855 0
Overdrafts 181,740 181,740 181,740 181,740
---------- ---------- ---------- ----------- -----------
Rate Sensitive
Loans 446,305,067 510,745,720 598,480,518 629,377,846 5,679,055
Securities:
Treasury Securities 22,138,931 44,375,937 70,565,857 73,072,854 13,264
Gov't Agencies 17,771,915 28,549,497 56,631,512 69,136,090 (56,199)
State & Municipal 13,306,897 22,796,508 43,728,818 78,762,276 (29,818)
Taxable Municipal 1,141,407 2,978,565 4,086,855 4,086,855 (19,480)
Corporate
Securities 7,739,774 11,556,627 18,273,081 18,789,104 78,900
FHLB Stock 2,318,300 2,318,300 2,318,300 2,318,300 658,900
Equity Securites 0 0 0 0 6,679,682
Mortgage Backed
Securities 372,709 462,709 732,709 1,691,037 10,349
Bank Balances -
Time CD's 60,921 60,921 60,921 60,921 0
Rate Swap-PNB
(June, December) 0 0 0 0 0
---------- ---------- ---------- ----------- -----------
Rate Sensitive
Securities 64,850,853 113,099,064 196,398,052 247,917,436 7,335,598
Fed Funds Sold 22,770,744 22,770,744 22,770,744 22,770,744
Cash & Due From
Banks 37,477,451
Less Reserve for
Loan Losses (9,108,586)
Other Assets 36,681,762
---------- ---------- ---------- ----------- -----------
RATE SENSITIVE
ASSETS 533,926,664 646,615,528 817,649,314 900,066,026 78,065,280
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES &
CAPITAL:
0-30 0-60 0-90 0-180 0-270
--------- --------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C>
Demand Deposit 0 0 0 0 0
NOW Accounts 0 0 0 0 0
Super NOW Accounts 0 0 0 0 0
Money Market 61,787,202 61,787,202 61,787,202 61,787,202 61,787,202
Regular Savings 9,509,955 9,509,955 9,509,955 9,509,955 9,509,955
All Other Savings 765,048 765,048 765,048 6,500,944 6,500,944
Variable Rate CDs 27,730,558 27,730,558 27,730,558 27,730,558 27,730,558
Variable Rate CDs -
Maturing 297,850 297,850 297,850 297,850 297,850
Cert of Deposits
less than 100,000 24,605,458 42,029,266 58,780,162 127,533,472 162,336,891
Cert of Deposits
more than 100,000 6,406,221 7,468,221 9,845,680 15,195,287 18,907,679
Sec Sold U/A To
Repurchase 48,491,719 48,491,719 48,491,719 48,491,719 48,491,719
Notes to US
Treasury 2,800,000 2,800,000 2,800,000 2,800,000 2,800,000
Fed Funds Purchased 7,135,328 7,235,328 7,235,328 7,235,328 7,235,328
Long Term Debt 478 958 1,440 2,896 4,370
---------- ---------- ---------- ----------- -----------
RATE SENSITIVE
LIABILITIES 189,529,818 208,116,106 227,244,943 307,085,213 345,602,498
Other Liabilities
Equity
---------- ---------- ---------- ----------- -----------
AS PER ABOVE:
RATE SENSITIVE
FUNDS GAP (43,422,247) (26,814,361) (10,099,532) 18,745,700 73,253,443
GAP/ASSETS (0.04) (0.03) (0.01) 0.02 0.07
RSA/RSL 0.77 0.87 0.96 1.06 1.21
HISTORY:
RSA/RSL 5/31/95 0.77 0.84 0.94 1.10 1.21
RSA/RSL 4/30/95 0.74 0.84 0.90 1.08 1.16
RSA/RSL 3/31/95 0.72 0.82 0.92 1.09 1.21
RSA/RSL 2/28/95 0.65 0.75 0.86 1.05 1.23
RSA/RSL 1/31/95 0.55 0.64 0.74 0.95 1.18
EXCLUDING
PREPAYMENTS:
RATE SENSITIVE
FUNDS GAP (48,079,704) (36,129,275) (24,071,903) (9,199,042) 31,336,330
GAP/ASSETS (0.05) (0.04) (0.02) (0.01) 0.03
RSA/RSL 0.75 0.83 0.89 0.97 1.09
HISTORY:
RSA/RSL 5/31/95 0.75 0.80 0.88 1.00 1.09
RSA/RSL 4/30/95 0.72 0.80 0.83 0.98 1.04
RSA/RSL 3/31/95 0.70 0.77 0.86 0.99 1.09
RSA/RSL 1/31/95 0.53 0.59 0.68 0.85 1.06
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES &
CAPITAL: (Continued):
RATE
SENSITIVE N.R.S.
0-1 YEAR 0-2 YEARS 0-5 YEARS TOTAL TOTAL
---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Demand Deposit 0 0 0 0 99,002,079
NOW Accounts 0 0 0 0 118,592,547
Super NOW Accounts 0 0 0 0 17,929,064
Money Market 61,787,202 61,787,202 61,787,202 61,787,202 0
Regular Savings 9,509,955 9,509,955 9,509,955 9,509,955 148,054,209
All Other Savings 6,511,512 6,511,512 6,511,512 6,511,512 1,552,228
Variable Rate CDs 27,730,558 27,730,558 27,730,558 27,730,558 0
Variable Rate CDs -
Maturing 297,850 297,850 297,850 297,850 0
Cert of Deposits
less than 100,000 193,733,828 237,490,926 277,530,571 280,018,517 0
Cert of Deposits
more than 100,000 20,960,753 23,017,166 27,089,532 27,089,532 0
Sec Sold U/A To
Repurchase 48,491,719 48,491,719 48,491,719 48,491,719 0
Notes to US
Treasury 2,800,000 2,800,000 2,800,000 2,800,000 0
Fed Funds Purchased 7,235,328 7,235,328 7,235,328 7,235,328 0
Long Term Debt 5,861 12,006 32,062 259,011 0
---------- ---------- ---------- ----------- -----------
RATE SENSITIVE
LIABILITIES 379,064,568 424,884,224 469,016,291 471,731,186 385,130,128
Other Liabilities 11,349,100
Equity 109,920,892
---------- ---------- ---------- ----------- -----------
AS PER ABOVE:
RATE SENSITIVE
FUNDS GAP 154,862,097 221,731,304 348,633,023 428,334,840
GAP/ASSETS 0.16 0.23 0.36 0.44
RSA/RSL 1.41 1.52 1.74 1.91
HISTORY:
RSA/RSL 5/31/95 1.41 1.52 1.74 1.90
RSA/RSL 4/30/95 1.33 1.46 1.73 1.91
RSA/RSL 3/31/95 1.35 1.46 1.75 1.93
RSA/RSL 2/28/95 1.36 1.46 1.77 1.95
RSA/RSL 1/31/95 1.33 1.45 1.77 1.95
EXCLUDING
PREPAYMENTS:
RATE SENSITIVE
FUNDS GAP 98,972,613 160,441,820 281,043,539 428,334,840
GAP/ASSETS 0.10 0.16 0.29 0.44
RSA/RSL 1.26 1.38 1.60 1.91
HISTORY:
RSA/RSL 5/31/95 1.26 1.37 1.60 1.90
RSA/RSL 4/30/95 1.18 1.31 1.58 1.91
RSA/RSL 3/31/95 1.19 1.31 1.60 1.93
RSA/RSL 2/28/95 1.20 1.30 1.61 1.95
RSA/RSL 1/31/95 1.17 1.30 1.62 1.95
</TABLE>
<TABLE>
<CAPTION>
GRAND
ASSETS: TOTAL
---------
<S> <C>
Loans:
Commercial
Loans-Fixed 74,210,957
Commercial
Loans-Variable 82,817,101
Installment
Loans-Fixed 80,165,772
Installment
Prepayments 0
Mortgage Loans -
Fixed Rate 75,434,406
Mortgage Loans -
Variable Rate 288,824,347
Mortgage
Prepayments 0
Student Loans 13,262,043
Visa/Master Card 3,647,334
PCR Loans 1,253,346
Home Equity Loans 15,259,855
Overdrafts 181,740
-----------
Rate Sensitive
Loans 635,056,900
Securities:
Treasury Securities 73,086,119
Gov't Agencies 69,079,891
State & Municipal 78,732,458
Taxable Municipal 4,067,374
Corporate
Securities 18,868,004
FHLB Stock 2,977,200
Equity Securites 6,679,682
Mortgage Backed
Securities 1,701,385
Bank Balances -
Time CD's 60,921
Rate Swap-PNB
(June, December) 0
-----------
Rate Sensitive
Securities 255,253,034
Fed Funds Sold 22,770,744
Cash & Due From
Banks 37,477,451
Less Reserve for
Loan Losses (9,108,586)
Other Assets 36,681,762
-----------
RATE SENSITIVE
ASSETS 978,131,306
============
LIABILITIES & GRAND
CAPITAL: TOTAL
-----------
Demand Deposit 99,002,079
NOW Accounts 118,592,547
Super NOW Accounts 17,929,064
Money Market 61,787,202
Regular Savings 157,564,165
All Other Savings 8,063,740
Variable Rate CDs 27,730,558
Variable Rate CDs -
Maturing 297,850
Cert of Deposits
less than 100,000 280,018,517
Cert of Deposits
more than 100,000 27,089,532
Sec Sold U/A To
Repurchase 48,491,719
Notes to US
Treasury 2,800,000
Fed Funds Purchased 7,235,328
Long Term Debt 259,011
-----------
RATE SENSITIVE
LIABILITIES 856,861,314
Other Liabilities 11,349,100
Equity 109,920,892
-----------
AS PER ABOVE: 978,131,306
============
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated financial statements and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 37,478
<INT-BEARING-DEPOSITS> 222
<FED-FUNDS-SOLD> 18,771
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 17,194
<INVESTMENTS-CARRYING> 238,051
<INVESTMENTS-MARKET> 238,724
<LOANS> 635,057
<ALLOWANCE> 9,109
<TOTAL-ASSETS> 980,883
<DEPOSITS> 796,693
<SHORT-TERM> 53,464
<LIABILITIES-OTHER> 8,852
<LONG-TERM> 778
<COMMON> 0
0
33,554
<OTHER-SE> 87,542
<TOTAL-LIABILITIES-AND-EQUITY> 980,883
<INTEREST-LOAN> 27,776
<INTEREST-INVEST> 7,506
<INTEREST-OTHER> 211
<INTEREST-TOTAL> 35,493
<INTEREST-DEPOSIT> 12,922
<INTEREST-EXPENSE> 14,333
<INTEREST-INCOME-NET> 21,160
<LOAN-LOSSES> 305
<SECURITIES-GAINS> 144
<EXPENSE-OTHER> 13,614
<INCOME-PRETAX> 10,803
<INCOME-PRE-EXTRAORDINARY> 10,803
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,169
<EPS-PRIMARY> 1.22
<EPS-DILUTED> 1.22
<YIELD-ACTUAL> 7.96
<LOANS-NON> 565
<LOANS-PAST> 2,728
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 76
<ALLOWANCE-OPEN> 8,843
<CHARGE-OFFS> 94
<RECOVERIES> 55
<ALLOWANCE-CLOSE> 9,109
<ALLOWANCE-DOMESTIC> 5,458
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 3,651
</TABLE>
