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 September 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 November 1, 1996.
Common Stock, $5.00 Par Value - 8,495,595 Shares
<PAGE>
INDEX
FINANCIAL TRUST CORP AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION Page
Item 1. Financial Statements (Unaudited)
Consolidated balance sheets -
September 30, 1996 and December 31, 1995 3
Consolidated statements of income -
Three months ended September 30, 1996 and 1995 and
Nine months ended September 30, 1996 and 1995 4
Consolidated statements of cash flows -
Nine months ended September 30, 1996 and 1995 5
Notes to consolidated financial statements -
September 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
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K 14
SIGNATURES 15
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
FINANCIAL TRUST CORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
<TABLE>
<CAPTION>
(Dollars in thousands) September 30 December 31
1996 1995
---- ----
<S> <C> <C>
ASSETS
Cash and due from banks $ 48,437 $ 46,864
Federal funds sold 2,150 3,075
Interest bearing balances with banks 704 570
Investment securities available-for-sale (amortized
cost basis of $359,301 and $309,376 respectively) 362,888 316,829
Loans, net of unearned income of $27 and $39 respectively 773,213 731,150
Less: Allowance for loan losses 11,343 11,038
----------- -----------
Net Loans 761,870 720,112
Premises and equipment 23,515 23,610
Accrued interest receivable 8,954 8,676
Intangible assets 8,042 8,595
Other assets 10,845 10,106
----------- -----------
TOTAL ASSETS $ 1,227,405 $ 1,138,437
=========== ===========
LIABILITIES
Deposits:
Non-interest bearing $ 119,936 $ 111,194
Interest bearing 855,969 820,526
----------- -----------
Total Deposits 975,905 931,720
Short-term borrowings 88,435 53,530
Long-term debt 5,388 743
Accrued interest payable 2,540 2,187
Other liabilites 8,713 9,185
----------- -----------
TOTAL LIABILITIES 1,080,981 997,365
SHAREHOLDERS' EQUITY (NOTE G)
Common Stock, par value $5 per share-
16,000,000 shares authorized; 8,540,595 shares issued
and 8,495,595 shares outstanding at Sept. 30, 1996;
8,541,987 shares issued and outstanding at Dec. 31, 1995 42,703 42,710
Treasury Stock- 45,000 shares, at cost (1,204) 0
Surplus 33,508 29,626
Net unrealized holding gain from securities
available-for-sale, net of taxes 2,354 4,845
Retained earnings 69,063 63,891
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 146,424 141,072
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,227,405 $ 1,138,437
=========== ===========
</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 Sept.30 Nine Months Ended Sept.30
-------------------------- -------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest Income:
Loans, including fees $ 17,294 $ 16,626 $ 51,161 $ 48,041
Investment securities:
Taxable 3,830 3,002 10,640 9,313
Tax-exempt 1,300 1,177 3,947 3,483
Other, primarily federal funds sold 47 306 198 550
---------- ---------- ---------- ----------
TOTAL INTEREST INCOME 22,471 21,111 65,946 61,387
Interest Expense:
Deposits 8,383 8,206 24,898 23,102
Short-term borrowings and long-term debt 872 630 2,248 2,052
---------- ---------- ---------- ----------
TOTAL INTEREST EXPENSE 9,255 8,836 27,146 25,154
---------- ---------- ---------- ----------
NET INTEREST INCOME 13,216 12,275 38,800 36,233
Provision for possible loan losses 182 126 599 323
---------- ---------- ---------- ----------
NET INTEREST INCOME AFTER PROVISION
FOR POSSIBLE LOAN LOSSES 13,034 12,149 38,201 35,910
Other Operating Income:
Fiduciary income 525 595 1,723 1,724
Service charges on deposit accounts 670 572 1,947 1,694
Investment security gains 29 74 320 218
Other 1,293 743 2,677 2,105
---------- ---------- ---------- ----------
TOTAL OTHER OPERATING INCOME 2,517 1,984 6,667 5,741
---------- ---------- ---------- ----------
Other Operating Expense:
Salaries and employee benefits 4,202 3,934 12,435 11,701
Net building occupancy expense 656 585 1,953 1,697
Equipment expense 542 486 1,561 1,330
SAIF Recapitalization costs 798 0 798 0
Other 2,737 2,688 8,226 8,777
---------- ---------- ---------- ----------
TOTAL OTHER OPERATING EXPENSES 8,935 7,693 24,973 23,505
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 6,616 6,440 19,895 18,146
Applicable income taxes 1,354 1,706 4,793 4,589
---------- ---------- ---------- ----------
NET INCOME $ 5,262 $ 4,734 $ 15,102 $ 13,557
========== ========== ========== ==========
PER SHARE DATA
Net income $ 0.62 $ 0.55 $ 1.77 $ 1.59
Dividends $ 0.25 $ 0.19 $ 0.71 $ 0.57
Weighted average number of
shares outstanding 8,532,964 8,542,330 8,538,008 8,542,330
</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>
Nine Months ended Sept. 30
--------------------------
1996 1995
---- ----
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income $ 15,102 $ 13,557
Adjustments to reconcile net income to net
cash provided (used) by operating activities:
Depreciation 1,431 1,226
Amortization for intangible assets 553 553
Provision for loan losses 599 323
Net amortization of investment security premiums 452 735
Deferred income tax expense (benefit) (14) 0
Increase in interest receivable (278) (386)
Increase in interest payable 353 1,073
Increase (decrease) in other liabilities 916 (2,090)
--------- ---------
CASH PROVIDED BY OPERATING ACTIVITIES 19,114 14,991
--------- ---------
CASH FLOW FROM INVESTING ACTIVITIES:
Increase in interest bearing bank balances (134) (31)
Proceeds from sales and maturities of investment securities 90,696 62,940
Purchases of investment securities (141,072) (57,137)
Increase in loans (42,063) (22,454)
Net loans recovered (charged-off) (294) (667)
Purchase of premises and equipment (1,336) (3,298)
Increase in other assets (739) (1,753)
--------- ---------
CASH USED IN INVESTING ACTIVITIES (94,942) (22,400)
--------- ---------
CASH FLOW FROM FINANCING ACTIVITIES
Net increase in deposits 44,185 22,328
Net increase (decrease) in short-term borrowings 34,905 (4,444)
Proceeds of new long-term debt 4,700 0
Payments on long-term debt (55) (50)
Cash dividends (6,055) (4,841)
Acquisition of treasury stock (1,204) 0
--------- ---------
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 76,476 12,993
--------- ---------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 648 5,584
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 49,939 37,861
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 50,587 $ 43,445
========= =========
</TABLE>
See notes to consolidated financial statements.
-5-
<PAGE>
FINANCIAL TRUST CORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 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 nine months ended September 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
$133,095,000 at September 30, 1996. Commitments under
outstanding standby letters of credit amounted to $9,476,000 at
September 30, 1996. Management does not anticipate any losses
as a result of these customary banking transactions.
-6-
<PAGE>
NOTE D - INVESTMENT SECURITIES
The amortized cost and fair values of investment securities were as
follows at the dates indicated:
(Dollars in thousands) September 30, 1996
------------------
Amortized Cost Fair Value
-------------- ----------
U.S. Treasury Securities and obligations
of other U.S. government agencies $227,272 $225,390
Obligations of States and political subdivisions 107,149 107,970
Corporate and mortgage backed securities 16,401 16,295
-------- --------
Total Debt Securities 350,822 349,655
Equity securities including FHLB stock 8,479 13,233
-------- --------
Total Available-for-Sale Securities $359,301 $362,888
======== ========
(Dollars in thousands) December 31, 1995
-----------------
Amortized Cost Fair Value
-------------- ----------
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
======== ========
-7-
<PAGE>
NOTE E - LOANS
Loans consisted of the following at the dates indicated:
(Dollars in thousands) September 30, December 31,
1996 1995
---- ----
Commercial, financial and agricultural $ 88,036 $ 76,795
Real estate - construction 13,699 13,772
Real estate - residential 409,346 414,543
Real estate - other 186,258 152,857
Consumer 75,901 73,222
-------- --------
773,240 731,189
Less: unearned income 27 39
-------- --------
Total Loans $773,213 $731,150
======== ========
NOTE F - DEPOSITS
Deposit composition was as follows, at the dates indicated:
(Dollars in thousands) September 30, December 31,
1996 1995
---- ----
Non-interest bearing demand deposits $119,936 $111,194
Interest bearing:
Interest bearing demand deposits 82,123 160,021
Money market deposit accounts 155,295 72,035
Passbook/statement savings 184,431 184,193
Time deposits less than $100,000 387,198 364,963
Time deposits of $100,000 and over 46,922 39,314
-------- --------
$975,905 $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 $5,262,000 for the third quarter of
1996, an 11.2% increase over the $4,734,000 earned during the third quarter of
1995. On a per share basis net income totaled $.62, compared to $.55 for the
third quarter of 1995 and $.59 for the second quarter of 1996. Third quarter
1996 results were achieved despite the absorption of $798,000 in SAIF
recapitalization costs related to former thrift deposit bases. The SAIF
recapitalization costs reduced net income by approximately $519,000 or $0.06 per
share.
Net income of $15,102,000 for the first nine months of 1996 represents an 11.4%
increase over the $13,557,000 earned during the first nine months of 1995. Net
income per share was $1.77 for the first nine months of 1996 compared to $1.59
for the same period in 1995. Earnings per share for 1996 to date would have been
$1.83, a 15.1% increase over 1995's first nine months, were it not for the
aforementioned SAIF recapitalization costs.
The following statistics compare 1996 performance to that of 1995 for the third
quarters and the year-to-date periods ended September 30th:
<TABLE>
<CAPTION>
3rd Quarter Year-to-Date
----------- ------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Return on average assets 1.77% 1.69% 1.73% 1.64%
Return on average equity 14.77% 14.25% 14.20% 13.93%
Average equity/Average assets 12.00% 11.87% 12.15% 11.78%
</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 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 third quarter of 1996 increased $941,000, or 7.7%,
over the third quarter of 1995. Net interest income for the first nine months of
1996 increased by $2,567,000 or 7.1% over the first nine months of 1995.
-9-
<PAGE>
Net interest income for 1996's third quarter grew by 7.7% (7.9% on a tax
equivalent basis) due to a 6 point increase in net interest margin over 1995's
third quarter. The net interest margin increase was driven by a 7.5% increase in
average daily free funds that can be attributed primarily to a 2.1% increase in
non-interest bearing demand accounts and a 7.2% increase in equity. Loan
portfolio growth contributed to the widening spread.
Net interest income for nine months ended September 30, 1996 grew by 7.1% (7.4%
on a tax equivalent basis) due primarily to volume factors. Net interest spread
was up only three basis points for the nine month period, but net interest
margin increased by 6 basis points due primarily to a 9.7% increase in average
daily free funds. Non-interest bearing demand deposits were up 5.3% and equity
was up 9.3%, on an average daily basis, over the first nine months of 1995,
contributing to the free funds growth.
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) 3rd Quarter, 1996 3rd Quarter, 1995
----------------- -----------------
Avg. Balances Rates Avg. Balances Rates
<S> <C> <C> <C> <C>
Interest earning assets $1,113,367 8.39% $1,044,231 8.39%
Interest bearing liabilities 926,041 3.98% 869,977 4.03%
---------- ---- ---------- ----
Free Funds $ 187,326 $ 174,254
========== ==========
Net interest income (F.T.E.) $ 14,133 $ 13,097
========== ==========
Net interest spread (F.T.E.) 4.41% 4.36%
==== ====
Free funds ratio 16.83% 16.69%
========== =====
Net interest margin (F.T.E.) 5.09% 5.03%
==== =====
</TABLE>
<TABLE>
<CAPTION>
Year-to-Date, 1996 Year-to-Date, 1995
------------------ ------------------
<S> <C> <C> <C> <C>
Interest earning assets $1,090,624 8.40% $1,028,685 8.28%
Interest bearing liabilities 906,767 4.00% 861,067 3.91%
---------- ----
Free funds $ 183,857 $ 167,618
========== ==========
Net interest income (F.T.E.) $ 41,526 $ 38,677
========== ===========
Net interest spread (F.T.E.) 4.40% 4.37%
==== ====
Free funds ratio 16.86% 16.29%
========== ===========
Net interest margin (F.T.E.) 5.07% 5.01%
==== ====
</TABLE>
Other Income and Other Expenses
Total non-interest income increased $926,000, or 16.1%, when compared to the
first nine months of the previous year. Increases in service charge income of
$252,663 and net gains of $530,946 on the sale of other real estate were the
major components of the increase.
-10-
<PAGE>
Total non-interest expense increased by $1,468,000 or 6.2% over the first nine
months of 1995. SAIF recapitalization costs related to former thrift deposit
bases increased non-interest expense by $798,000 on September 30, 1996. The SAIF
recapitalization costs along with increases in salaries and benefits due to
staffing at several new locations are the largest factors in the non-interest
expense increase. Operating expenses were up only 2.9% for the first nine months
of 1996 versus 1995 excluding the one time SAIF assessment.
Provision for Possible Loan Losses
The provision for loan losses increased by $56,000 or 44% versus 1995's third
quarter, and $276,000 or 85% compared to the previous year-to-date. The ratio of
allowance for loan losses to gross loans was 1.47% as of September 30, 1996
compared to 1.50% at September 30, 1995, however, the unallocated portion of the
$11,343,000 reserve grew to 59% at September 30, 1996 from 49% at December 31,
1995. A summary of nonperforming assets follows:
September 30, December 31,
(Dollars in thousands) 1996 1995
---- ----
Loans on nonaccrual (cash) basis $ 647 $2,402
Loans past due 90 or more days and
still accruing 2,168 1,803
Nonperforming renegotiated loans 0 0
Other real estate owned (OREO) 945 793
------ ------
Total nonperforming assets $3,760 $4,998
====== ======
Ratio of nonperforming assets to
total loans and OREO 0.49% 0.68%
Ratio of nonperforming assets to
total assets 0.31% 0.44%
Ratio of allowance for loan losses to
nonperforming assets 301.68% 220.85%
Ratio of allowance for loan losses to
nonaccrual loans and OREO 712.50% 345.48%
Income Taxes
Income tax expense is up $204,000 or 4.4% over the previous year, but the
effective federal income tax rate declined from 25.3% to 24.1% thus far in 1996.
Increased tax exempt income from securities and loans plus the utilization of
certain tax reserves that were applicable to settled returns have contributed to
the reduction of income tax expense during 1996.
-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 September 30, 1996 on a cumulative basis 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 .91 to 1
0 - 9 months 1.21 to 1 1.06 to 1
0 - 12 months 1.41 to 1 1.22 to 1
All investment securities with call features are assumed to be called in the
calculation of the above ratios. The use of maturity dates would yield slightly
less positive rate sensitivity ratios, but would be less realistic in the
current interest rate environment. Our gaps stay in a rather tight range, and 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. Gap analysis is performed using investment
securities at both call dates and maturity dates.
Historically, the Corporation has operated with a very strong capital base, well
above industry averages. Total shareholders' equity represented 11.93% of assets
at September 30, 1996 versus 12.15% one year earlier. The consolidated risk
based capital ratios at September 30, 1995 were 18.20% for Tier 1 and 19.43% for
total capital. At September 30, 1995 those ratios were 18.62% for Tier 1 and
19.87% for total capital. The Tier 1 leverage ratio at September 30, 1996 was
11.53% All banking subsidiaries individually exceed minimum regulatory capital
requirements at September 30, 1996 by a comfortable margin. Given the strong
capital base, no equity raising activities are 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 September 30, 1996:
<TABLE>
<CAPTION>
Item Change Reason
---- ------ ------
<S> <C> <C>
Federal funds sold Down 30.1% Subject to significant daily fluctuation due
to its nature. In addition see the explanation
for investment securities listed below.
Interest bearing Up 23.5% Not a material amount.
balances with banks
Investment securities Up 14.5% Market fluctuations created investment
opportunities during the second and
third quarters.
Loans Up 5.7% Increased lending activity during the third quarter.
Intangible assets Down 6.4% Regularly scheduled amortization.
Other assets Up 7.3% Primarily due to movement of nonaccrual loans
through the collection process to other real
estate status. See the table in management's
discussion and analysis section.
Short-term borrowings Up 65.2% Due to seasonal fluctuation of repurchase
agreement funds.
Long-term debt Up 625.2% Due to use of Federal Home Loan Bank programs.
Accrued interest payable Up 16.1% Not a material amount.
Other Liabilities Up 5.1% Not a material amount.
</TABLE>
-13-
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Neither Financial Trust Corp nor any subsidiary is a party to
any matrerial legal proceedings other than ordinary routine
litigation incidental to their business.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
On August 28, 1996 a Form 8-K was filed announcing a plan to
repurchase up to 250,000 shares, or approximately 3%, of the
company's 8.54 million shares of outstanding common stock.
-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 November 13, 1996 /s/ Ray L. Wolfe
----------------- --------------------------------
Ray L. Wolfe, Chairman and CEO
(Principal Executive Officer)
Date November 13, 1996 /s/ Bradley S. Everly
----------------- --------------------------------
Bradley S. Everly
Senior Vice President and CFO
(Principal Financial Officer)
-15-
<PAGE>
<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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 48,437
<INT-BEARING-DEPOSITS> 704
<FED-FUNDS-SOLD> 2,150
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 362,888
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 773,213
<ALLOWANCE> 11,343
<TOTAL-ASSETS> 1,227,405
<DEPOSITS> 975,905
<SHORT-TERM> 88,435
<LIABILITIES-OTHER> 11,253
<LONG-TERM> 5,388
0
0
<COMMON> 42,703
<OTHER-SE> 103,721
<TOTAL-LIABILITIES-AND-EQUITY> 1,227,405
<INTEREST-LOAN> 51,161
<INTEREST-INVEST> 14,587
<INTEREST-OTHER> 198
<INTEREST-TOTAL> 65,946
<INTEREST-DEPOSIT> 24,898
<INTEREST-EXPENSE> 27,146
<INTEREST-INCOME-NET> 38,800
<LOAN-LOSSES> 599
<SECURITIES-GAINS> 320
<EXPENSE-OTHER> 24,973
<INCOME-PRETAX> 19,895
<INCOME-PRE-EXTRAORDINARY> 15,102
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15,102
<EPS-PRIMARY> 1.77
<EPS-DILUTED> 1.77
<YIELD-ACTUAL> 8.06
<LOANS-NON> 647
<LOANS-PAST> 2,168
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 416
<ALLOWANCE-OPEN> 11,038
<CHARGE-OFFS> 436
<RECOVERIES> 142
<ALLOWANCE-CLOSE> 11,343
<ALLOWANCE-DOMESTIC> 4,638
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 6,705
</TABLE>
