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, 1996
Commission File Number 0-10756
FINANCIAL TRUST CORP
--------------------
(Exact name of registrant as specified in its charter)
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)
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 1, 1996.
Common Stock, $5.00 Par Value - 8,540,595 Shares
------------------------------------------------
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<PAGE>
INDEX
FINANCIAL TRUST CORP AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION Page
Item 1. Financial Statements (Unaudited)
Consolidated balance sheets -
June 30, 1996 and December 31, 1995 3
Consolidated statements of income -
Three months ended June 30, 1996 and 1995 and
Six months ended June 30, 1996 and 1995 4
Consolidated statements of cash flows -
Six months ended June 30, 1996 and 1995 5
Notes to consolidated financial statements -
June 30, 1996 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 14
Item 2. Changes in Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders 14
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K 14
SIGNATURES 15
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<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
FINANCIAL TRUST CORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
<TABLE>
<CAPTION>
(Dollars in thousands) June 30 December 31
1996 1995
---- ----
<S> <C> <C>
ASSETS
Cash and due from banks $ 39,836 $ 46,864
Federal funds sold 1,200 3,075
Interest bearing balances with banks 410 570
Investment securities available-for-sale (amortized
cost basis of $345,201 and $309,376 respectively) 345,935 316,829
Loans, net of unearned income of $30 and $39 respectively 757,845 731,150
Less: Allowance for loan losses 11,142 11,038
---------- ----------
Net Loans 746,703 720,112
Premises and equipment 23,669 23,610
Accrued interest receivable 9,183 8,676
Intangible assets 8,226 8,595
Other assets 12,811 10,106
---------- ----------
TOTAL ASSETS $1,187,973 $1,138,437
========== ==========
LIABILITIES
Deposits:
Non-interest bearing $ 115,619 $ 111,194
Interest bearing 849,070 820,526
---------- ----------
Total Deposits 964,689 931,720
Short-term borrowings 63,706 53,530
Long-term debt 5,406 743
Accrued interest payable 2,185 2,187
Other liabilites 9,324 9,185
---------- ----------
TOTAL LIABILITIES 1,045,310 997,365
SHAREHOLDERS' EQUITY (NOTE G)
Common Stock, par value $5 per share-
authorized 16,000,000 shares; issued and outstanding
8,540,595 and 8,541,987 respectively 42,703 42,710
Surplus 33,508 29,626
Net unrealized holding gain from securities
available-for-sale, net of taxes 515 4,845
Retained earnings 65,937 63,891
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 142,663 141,072
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,187,973 $1,138,437
========== ==========
</TABLE>
See notes to consolidated financial statements.
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<PAGE>
FINANCIAL TRUST CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
<TABLE>
<CAPTION>
(Dollars in thousands, Three Months Ended June 30 Six Months Ended June 30
-------------------------- ------------------------
except per share data) 1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest Income:
Loans, including fees $ 17,087 $ 16,082 $ 33,867 $ 31,415
Investment securities:
Taxable 3,573 3,138 6,811 6,311
Tax-exempt 1,333 1,142 2,647 2,306
Other, primarily federal funds sold 45 207 150 245
---------- ---------- ---------- ----------
TOTAL INTEREST INCOME 22,038 20,569 43,475 40,277
Interest Expense:
Deposits 8,289 7,802 16,515 14,896
Short-term borrowings and long-term debt 689 663 1,376 1,422
---------- ---------- ---------- ----------
TOTAL INTEREST EXPENSE 8,978 8,465 17,891 16,318
---------- ---------- ---------- ----------
NET INTEREST INCOME 13,060 12,104 25,584 23,959
Provision for possible loan losses 271 121 417 197
---------- ---------- ---------- ----------
NET INTEREST INCOME AFTER PROVISION
FOR POSSIBLE LOAN LOSSES 12,789 11,983 25,167 23,762
Other Operating Income:
Fiduciary income 568 638 1,198 1,130
Service charges on deposit accounts 684 579 1,277 1,121
Investment security gains 213 125 292 144
Other 780 616 1,383 1,362
---------- ---------- ---------- ----------
TOTAL OTHER OPERATING INCOME 2,245 1,958 4,150 3,757
---------- ---------- ---------- ----------
Other Operating Expense:
Salaries and employee benefits 4,086 3,849 8,233 7,767
Net building occupancy expense 619 530 1,297 1,112
Equipment expense 518 442 1,019 844
Other 2,908 3,067 5,489 6,090
---------- ---------- ---------- ----------
TOTAL OTHER OPERATING EXPENSES 8,131 7,888 16,038 15,813
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 6,903 6,053 13,279 11,706
Applicable income taxes 1,867 1,558 3,439 2,883
---------- ---------- ---------- ----------
NET INCOME $ 5,036 $ 4,495 $ 9,840 $ 8,823
========== ========== ========== ==========
PER SHARE DATA
Net income $ 0.59 $ 0.53 $ 1.15 $ 1.04
Dividends $ 0.23 $ 0.19 $ 0.46 $ 0.38
Weighted average number of
shares outstanding 8,541,302 8,542,330 8,540,557 8,542,330
</TABLE>
See notes to consolidated financial statements.
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<PAGE>
FINANCIAL TRUST CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in thousands) Six Months ended June 30
1996 1995
---- ----
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income $ 9,840 $ 8,823
Adjustments to reconcile net income to net
cash provided (used) by operating activities:
Depreciation 951 811
Amortization for intangible assets 369 369
Provision for loan losses 417 197
Net amortization of investment
security premiums 349 524
Increase in interest receivable (507) (151)
Increase (decrease) in interest payable (2) 518
Increase (decrease) in other liabilities 2,530 (487)
--------- ---------
CASH PROVIDED BY OPERATING ACTIVITIES 13,947 10,604
--------- ---------
CASH FLOW FROM INVESTING ACTIVITIES:
Decrease in interest bearing bank balances 160 15
Proceeds from sales and maturities of
investment securities 64,198 33,958
Purchases of investment securities (100,373) (18,460)
Increase in loans (26,695) (14,931)
Net loans recovered (charged-off) (313) (7)
Purchase of premises and equipment (1,010) (1,756)
Increase in other assets (2,705) (1,300)
--------- ---------
CASH USED IN INVESTING ACTIVITIES (66,738) (2,481)
--------- ---------
CASH FLOW FROM FINANCING ACTIVITIES
Net increase in deposits 32,969 21,809
Net increase (decrease) in short-term borrowings 10,176 (2,379)
Proceeds of new long-term debt 4,700 0
Payments on long-term debt (37) (33)
Cash dividends (3,920) (3,227)
--------- ---------
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 43,888 16,170
--------- ---------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (8,903) 24,293
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 49,939 37,861
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 41,036 $ 62,154
========= =========
See notes to consolidated financial statements.
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<PAGE>
FINANCIAL TRUST CORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1996
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, 1996 are not necessarily
indicative of the results that may be expected for the year ended
December 31, 1996. 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
on obligations of States and political subdivisions.
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 $119,671,000 at June 30, 1996.
Commitments under outstanding standby letters of credit amounted to
$9,363,000 at June 30, 1996. Management does not anticipate any losses
as a result of these customary banking transactions.
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<PAGE>
NOTE D - INVESTMENT SECURITIES
The amortized cost and fair values of investment securities were as
follows at the dates indicated:
<TABLE>
<CAPTION>
(Dollars in thousands) June 30, 1996
Amortized Cost Fair Value
-------------- ----------
<S> <C> <C>
U.S. Treasury Securities and obligations
of other U.S. government agencies $206,250 $202,958
Obligations of States and political subdivisions 113,207 113,240
Corporate and mortgage backed securities 17,412 17,294
--------- ---------
Total Debt Securities 336,869 333,492
Equity securities including FHLB stock 8,332 12,443
--------- ---------
Total Available-for-Sale Securities $345,201 $345,935
========= =========
</TABLE>
<TABLE>
<CAPTION>
(Dollars in thousands) December 31, 1995
Amortized Cost Fair Value
-------------- ----------
<S> <C> <C>
U.S. Treasury Securities and obligations
of other U.S. government agencies $180,454 $181,784
Obligations of States and political subdivisions 106,876 108,424
Corporate and mortgage backed securities 15,634 15,846
--------- ---------
Total Debt Securities 302,964 306,054
Equity securities including FHLB stock 6,412 10,775
--------- ---------
Total Available-for-Sale Securities $309,376 $316,829
========= =========
</TABLE>
-7-
<PAGE>
NOTE E - LOANS
Loans consisted of the following at the dates indicated:
(Dollars in thousands) June 30, December 31,
1996 1995
---- ----
Commercial, financial and agricultural $ 86,241 $ 76,795
Real estate - construction 11,426 13,772
Real estate - residential 409,807 414,543
Real estate - other 178,295 152,857
Consumer 72,106 73,222
-------- --------
757,875 731,189
Less: unearned income 30 39
-------- --------
Total Loans $757,845 $731,150
======== ========
NOTE F - DEPOSITS
Deposit composition was as follows, at the dates indicated:
(Dollars in thousands) June 30, December 31,
1996 1995
---- ----
Non-interest bearing demand deposits $115,619 $111,194
Interest bearing:
Interest bearing demand deposits 66,425 160,021
Money market deposit accounts 166,403 72,035
Passbook/statement savings 185,140 184,193
Time deposits less than $100,000 382,461 364,963
Time deposits of $100,000 and over 48,641 39,314
--------- -----------
$964,689 $931,720
========= ===========
NOTE G - SHAREHOLDERS' EQUITY
On September 30, 1995 in an acquisition accounted for as a
pooling-of-interests, Financial Trust Corp acquired Washington County
National Bank through the exchange of 2.25 shares of Financial Trust
Corp common stock for each share of Washington County National Bank
common stock.
On April 24, 1996, the Board of Directors of Financial Trust Corp
declared a 10% stock dividend, payable on June 17, 1996 to shareholders
of record on June 3, 1996.
Earnings per share, dividends per share and weighted average shares
outstanding references have been restated to reflect both the 10% stock
dividend and the acquisition of Washington County National Bank. The
effect of common stock equivalents is not significant for any period
presented.
-8-
<PAGE>
PART I. FINANCIAL INFORMATION
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FINANCIAL TRUST CORP
RESULTS OF OPERATIONS
Summary
Financial Trust Corp recorded net income of $5,036,000 for the second quarter of
1996, a 12.0% increase over the $4,495,000 earned during the second quarter of
1995. On a per share basis, net income totaled $.59, compared to $.53 for the
second quarter of 1995 and $.56 for the first quarter of 1996.
Net income of $9,480,000 for the first half of 1996 represents an 11.5% increase
over the $8,823,000 earned during the first half of 1995. Net income per share
was $1.15 for the first half of 1996 compared to $1.04 for the first half of
1995.
The following statistics compare 1996 performance to that of 1995 for the second
quarters and the year-to-date periods ended June 30th:
2nd Quarter Year-to-Date
----------- ------------
1996 1995 1996 1995
---- ---- ---- ----
Return on average assets 1.72% 1.64% 1.70% 1.62%
Return on average equity 14.20% 13.86% 13.91% 13.77%
Average equity/Average assets 12.13% 11.80% 11.80% 11.73%
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 assets
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 1996 increased $956,000, or 7.9%,
over the second quarter of 1995. Net interest income for the first half of 1996
increased $1,625,000 or 6.8% over the first half of 1995.
Net interest income for 1996's second quarter grew by 7.9% (8.3% on a tax
equivalent basis) due to both rate and volume factors. Free funds were up 9.4%
versus 1995's second quarter. Net interest spread was up 7 basis points and net
interest margin increased 8 basis points over the same time period. The spread
increases were fueled by a 15 basis point yield increase in the loan portfolio.
-9-
<PAGE>
Net interest income for six months ended June 30, 1996 grew by 6.8% (7.1% on a
tax equivalent basis) due primarily to volume factors. Net interest spread was
up only one basis point for the six month period but net interest margin
increased by 7 basis points due primarily to a 10.9% increase in free funds.
Non-interest bearing demand deposits were up 7.1%, on an average daily basis,
over the first half of 1995.
The tables that follow, state results on a fully taxable equivalent basis, net
of disallowed interest expense and explain further the net interest income
changes:
<TABLE>
<CAPTION>
(Dollars in thousands) 2nd Quarter, 1996 2nd Quarter, 1995
----------------- -----------------
Avg. Balances Rates Avg. Balances Rates
------------- ----- ------------- -----
<S> <C> <C> <C> <C>
Interest earning assets $1,091,793 8.42% $1,026,916 8.33%
Interest bearing liabilities 907,347 3.98% 858,295 3.96%
------------------- ---------------------
Free Funds $184,446 $168,621
=========== =============
Net interest income (F.T.E.) $13,981 $12,915
=========== =============
Net interest spread (F.T.E.) 4.44% 4.37%
======== ========
Free funds ratio 16.89% 16.42%
=========== =============
Net interest margin (F.T.E.) 5.11% 5.03%
======== ========
</TABLE>
<TABLE>
<CAPTION>
Year-to-Date,1996 Year-to-Date,1995
----------------- -----------------
<S> <C> <C> <C> <C>
Interest earning assets $1,079,127 8.40% $1,020,784 8.22%
Interest bearing liabilities 897,024 4.01% 856,539 3.84%
------------------- ---------------------
Free funds $182,103 $164,245
=========== =============
Net interest income (F.T.E.) $27,392 $25,580
=========== =============
Net interest spread (F.T.E.) 4.39% 4.38%
======== ========
Free funds ratio 16.88% 16.09%
=========== =============
Net interest margin (F.T.E.) 5.07% 5.00%
======== ========
</TABLE>
Other Income and Other Expenses
Total non-interest income increased $393,000, or 10.4%, when compared to the
first six months of the previous year. Increases in service charge income and
gains on securities of $156,000 and $148,000 respectively, were the major
components of increase.
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<PAGE>
Total non-interest expenses increased by $225,000 or 1.4% over the first half of
1995. Salaries and employee benefits reflect increases due to staffing at
several new locations. Seven offices were opened and one was closed for a net
increase of six offices since late June 1995. FDIC premiums declined $842,000
for the first half of 1996 versus 1995 and played a material role in holding
total noninterest expense to the aforementioned modest 1.4% increase.
Provision for Possible Loan Losses
The provision for loan losses increased by $220,000 compared to 1995's first six
months. The ratio of allowance for loan losses to gross loans was 1.47% as of
June 30, 1996 versus 1.59% at June 30, 1995, however, the unallocated portion of
the $11,142,000 reserve grew to 57% at June 30, 1996 from 49% at December 31,
1995. A summary of nonperforming assets follows:
June 30, December 31,
(Dollars in thousands) 1996 1995
---- ----
Loans on nonaccrual (cash) basis $ 686 $2,402
Loans past due 90 or more days and
still accruing 942 1,803
Nonperforming renegotiated loans 0 0
Other real estate owned (OREO) 2,414 793
------ ------
Total nonperforming assets $4,042 $4,998
====== ======
Ratio of nonperforming assets to
total loans and OREO 0.53% 0.68%
Ratio of nonperforming assets to
total assets 0.34% 0.44%
Ratio of allowance for loan losses to
nonperforming assets 275.66% 220.85%
Ratio of allowance for loan losses to
nonaccrual loans and OREO 359.42% 345.48%
Income Taxes
Income before income taxes is up $1,573,000 and income tax expense is up
$556,000 over the first half of 1995. This appropriately reflects our marginal
income tax bracket. The effective federal income tax rates were 25.9% and 24.6%
for the first six months of 1996 and 1995 respectively.
-11-
<PAGE>
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 commercial banks 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, 1996 on a cumulative basis is summarized below
and demonstrates the following rate sensitive asset/rate sensitive liability
ratios at that date:
Including Prepayments Excluding Prepayments
--------------------- ---------------------
0 - 3 months .83 to 1 .76 to 1
0 - 6 months 1.03 to 1 .92 to 1
0 - 9 months 1.20 to 1 1.05 to 1
0 - 12 months 1.39 to 1 1.21 to 1
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 analyses 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 12.01% of assets
at June 30, 1996, versus 11.87% one year earlier. The consolidated risk based
capital ratios at June 30, 1996 were 18.42% for Tier 1 and 19.65% for total
capital. At June 30, 1995 those ratios were 18.18% for Tier 1 and 19.42% for
total capital. The Tier 1 leverage ratio at June 30, 1996 was 11.53%. All
banking subsidiaries individually exceed minimum regulatory capital requirements
at June 30, 1996 by a 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.
-12-
<PAGE>
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:
Following is an explanation of consolidated balance sheet items which varied by
more than 5% between December 31, 1995 and June 30, 1996:
<TABLE>
<CAPTION>
Item Change Reason
---- ------ ------
<S> <C> <C>
Cash and due from banks Down 15.0% Tightened cash control at banks
plus reduced reserves.
Federal funds sold Down 61.0% Subject to significant daily
fluctuation due to its nature. In
addition see explanation for
investment securities below.
Interest bearing Down 28.1% An immaterial item.
balances with banks
Investment Securities Up 9.2% Due to investment opportunities
available during second quarter.
Other Assets Up 26.8% Primarily due to movement of
nonaccrual loans through the
collection process to other real
estate status. See table in
management's discussion and
analysis section.
Short-term Borrowings Up 19.0% Due to seasonal fluctuation of
repurchase agreement funds.
Long-term Debt Up 627.6% Due to use of Federal Home Loan
Bank program funds.
</TABLE>
-13-
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Neither Financial Trust Corp nor any subsidiary is a party to any
material legal proceedings other than ordinary routine litigation
incidental to their business.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIY HOLDERS
The Annual Meeting of Shareholders of Financial Trust Corp (FITC) was
held April 24, 1996 at the office of the Corporation, 1415 Ritner
Highway, Carlisle, PA.
The shareholders voted 84.6% of outstanding shares in the affirmative,
withheld 0.1% of shares and voted 0% of shares against the election of
directors as described on pages 2 through 4 of the 1996 Annual Proxy
Statement which is incorporated herein by reference.
Following is a separate tabulation with respect to each nominee:
FOR WITHHELD AGAINST
--- -------- -------
One Year Term -
Byron, James E. 6,572,023 8,675 0
Shank, Thomas H. 6,572,991 7,707 0
Two Year Term -
Patterson, M. L., Jr. 6,572,996 7,702 0
Three Year Term -
Baker, Lynn S. 6,572,116 8,581 0
Brake, Harold L. 6,572,996 7,702 0
Henneberger, George F. 6,572,996 7,702 0
King, Richard G. 6,571,217 9,481 0
Shull, William F. 6,572,991 7,707 0
Strickler, Paul L. 6,572,996 7,702 0
Warrell, Mary Ann 6,571,786 8,912 0
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
On April 30, 1996 a Form 8-K was filed disclosing a change in the
Corporation's certifying accountant. Beard & Company, Inc., Certified
Public Accountants, One Park Plaza, Reading, Pennsylvania, have been
hired to replace Ernst & Young LLP as the Corporation's independent
accountants for 1996.
On May 20, 1996 a Form 8-K was filed to announce the declaration of a
10% stock dividend, payable by Financial Trust Corp (FITC) on June 17,
1996 to shareholders of record on June 3, 1996.
-14-
<PAGE>
S I G N A T U R E S
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)
Date 8/13/96 /s/ Ray L. Wolfe
----------------- --------------------------------
Ray L. Wolfe, Chairman and CEO
(Principal Executive Officer)
Date 8/13/96 /s/ Bradley S. Everly
----------------- --------------------------------
Bradley S. Everly
Senior Vice President and CFO
(Principal Financial Officer)
-15-
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
The scehdule contains summary financial information extracted from the
consolidated financial statements and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 39,836
<INT-BEARING-DEPOSITS> 410
<FED-FUNDS-SOLD> 1,200
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 345,935
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 757,845
<ALLOWANCE> 11,142
<TOTAL-ASSETS> 1,187,973
<DEPOSITS> 964,689
<SHORT-TERM> 63,706
<LIABILITIES-OTHER> 11,509
<LONG-TERM> 5,406
0
0
<COMMON> 42,703
<OTHER-SE> 99,960
<TOTAL-LIABILITIES-AND-EQUITY> 1,187,973
<INTEREST-LOAN> 33,867
<INTEREST-INVEST> 9,458
<INTEREST-OTHER> 150
<INTEREST-TOTAL> 43,475
<INTEREST-DEPOSIT> 16,515
<INTEREST-EXPENSE> 17,891
<INTEREST-INCOME-NET> 25,584
<LOAN-LOSSES> 417
<SECURITIES-GAINS> 292
<EXPENSE-OTHER> 16,038
<INCOME-PRETAX> 13,279
<INCOME-PRE-EXTRAORDINARY> 9,840
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,840
<EPS-PRIMARY> 1.15
<EPS-DILUTED> 1.15
<YIELD-ACTUAL> 8.06
<LOANS-NON> 686
<LOANS-PAST> 942
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 416
<ALLOWANCE-OPEN> 11,038
<CHARGE-OFFS> 406
<RECOVERIES> 93
<ALLOWANCE-CLOSE> 11,142
<ALLOWANCE-DOMESTIC> 4,762
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 6,380
</TABLE>
