FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1997
Commission File Number: 0-10710
AMBANC CORP.
(exact name of registrant as specified in its charter)
INDIANA 35-1525227
(State or other jurisdiction (I.R.S. Employer ID No.)
of incorporation or
organization)
302 Main Street
P.O. Box 556
Vincennes, Indiana 47591-0556
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number,
including area code (812) 885-6418
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:
3,316,213 common shares of stock were outstanding as of
May 14, 1997.
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AMBANC CORP.
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets at
March 31, 1997 (unaudited) and
December 31, 1996
Consolidated Statements of Income for
three months ended March 31, 1997
and 1996(unaudited)
Consolidated Statements of Cash
Flows for three months ended
March 31, 1997 and 1996 (unaudited)
Notes to Consolidated Financial
Statements (unaudited)
Item 2. Management's Discussion and Analysis
of Results of Operations and Financial
Condition
PART II. OTHER INFORMATION
Item 1. Legal Preceedings
Item 6. Exhibits and Reports of Form 8-K
Signatures
Exhibit Index
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
AMBANC CORP.
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except share data)
March 31, December 31,
1997 1996
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ASSETS
Cash and due from banks $ 21,347 $ 26,409
Federal funds sold 12,315 5,875
Total cash and cash equivalents 33,662 32,284
Interest bearing deposits in other banks 495 590
Securities available for sale at market 163,552 170,724
Loans held for sale 2,297 2,350
Loans, net of unearned income 506,782 494,467
Allowance for loan losses (5,422) (5,630)
Loans, net 501,360 488,837
Premises, furniture and equipment, net 11,690 11,184
Accrued interest receivable and other assets 13,523 12,785
TOTAL ASSETS $ 726,579 $ 718,754
LIABILITIES
Noninterest bearing deposits $ 58,694 $ 61,518
Interest bearing deposits 580,866 571,940
Total deposits 639,560 633,458
Short-term borrowings 6,434 5,286
Long-term debt 2,063 2,309
Accrued interest payable and other liabilities 6,043 5,518
TOTAL LIABILITIES 654,100 646,571
SHAREHOLDERS' EQUITY
Preferred stock, $10 par value, 200,000 shares
authorized, no shares issued or outstanding -- --
Common stock, $10 par value, 10,000,000
shares authorized, 3,316,267
shares issued at March 31, 1997,
and December 31, 1996 33,163 33,163
Treasury stock (564 and 724 shares at cost) (19) (21)
Retained earnings 40,149 38,731
Unrealized gain/(loss) on securities
available for sale, net of deferred taxes (814) 310
TOTAL SHAREHOLDERS' EQUITY 72,479 72,183
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 726,579 $ 718,754
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AMBANC CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollar amounts in thousands, except share data)
Three Months Ended
March 31,
1997 1996
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INTEREST INCOME
Interest and fees on loans $ 11,070 $ 10,295
Interest and fees on loans
held for sale 47 124
Interest on securities
Taxable 1,746 1,889
Tax exempt 733 693
Other interest 84 337
TOTAL INTEREST INCOME 13,680 13,338
INTEREST EXPENSE
Interest on deposits 6,760 6,591
Interest on short-term borrowings 96 91
Interest on long-term debt 35 39
TOTAL INTEREST EXPENSE 6,891 6,721
NET INTEREST INCOME 6,789 6,617
Provision for loan losses 315 267
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 6,474 6,350
NONINTEREST INCOME
Income from fiduciary activities 194 130
Service charges on
deposit accounts 403 363
Gain/(loss) on securities 55 1
Other operating income 343 234
TOTAL NONINTEREST INCOME 995 728
NONINTEREST EXPENSE
Salaries and employees benefits 2,500 2,461
Occupancy expenses, net 341 285
Equipment expenses 316 302
Data processing expenses 123 132
FDIC insurance 7 21
Other operating expenses 1,172 1,096
TOTAL NONINTEREST EXPENSE 4,459 4,297
INCOME BEFORE INCOME TAXES 3,010 2,781
Income taxes 895 800
NET INCOME $ 2,115 $ 1,981
EARNINGS PER COMMON SHARE
Net income per share $ .64 $ .60
Weighted average outstanding shares 3,315,952 3,316,267
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AMBANC CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands, except share data)
Three Months Ended
March 31,
1997 1996
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CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 2,115 $ 1,981
Adjustments to reconcile net income to
net cash from operating activities:
Net premium amortization and discount
accretion on securities 84 75
Depreciation 299 258
Provision for loan losses 315 267
(Gain)/loss on securities (55) (1)
(Gain) on sales of loans (130) (62)
Proceeds from sales of loans held for sale 6,303 6,967
Loans held for sale made to customers,
net of payments collected (6,120) (7,880)
Accrued interest receivable
and other assets (78) (433)
Accrued interest payable
and other liabilities 525 687
Deferred loan fees net of costs (25) 13
NET CASH FROM OPERATING ACTIVITIES 3,233 1,872
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of securities available
for sale 5,791 --
Proceeds from maturities and calls of securities
available for sale 5,742 15,125
Purchases of securities available for sale (6,174) (30,151)
Net change in interest bearing deposits
in other banks 95 1
Loans made to customers, net of
payments collected (12,813) (9,933)
Loans purchased -- (1,000)
Proceeds from sales of loans -- 2,404
Property and equipment expenditures (805) (788)
NET CASH FROM INVESTING ACTIVITIES (8,164) (24,342)
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AMBANC CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued
(Dollar amounts in thousands, except share data)
Three Months Ended
March 31,
1997 1996
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CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits 6,102 18,342
Net change in short-term borrowings 1,148 1,085
Payments on long-term debt (267) (300)
Proceeds on long-term debt 21 25
Net change in treasury stock 2 --
Dividends paid (697) (663)
NET CASH FROM FINANCING ACTIVITIES 6,309 18,489
NET CHANGE IN CASH AND CASH EQUIVALENTS 1,378 (3,981)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 32,284 43,173
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 33,662 $ 39,192
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period:
Interest $ 7,062 $ 6,237
Income taxes 8 165
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AMBANC CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of and for the three months ended March 31, 1997
(Dollar amounts in thousands, except share data)
The Consolidated balance sheet as of March 31, 1997,
consolidated statements of income for the three month periods
ended March 31, 1997 and 1996, and the consolidated statements of
cash flows for the three month periods ended March 31, 1997 and
1996, have been prepared by the Corporation, without audit. In
the opinion of management, all adjustments (which include only
normal recurring adjustments) necessary to present fairly the
financial position, results of operations and changes in cash
flows at March 31, 1997, and all periods presented, have been
made.
Certain information and footnote disclosures normally
included in financial statements prepared in accordance
with generally accepted accounting principles have been
condensed or omitted. It is suggested that these
consolidated financial statements be read in conjunction
with the financial statements and notes thereto included in
the Corporation's December 31, 1996, annual report to
shareholders. The results of operations for the period
ended March 31, 1997, are not necessarily indicative
of the operating results for the full year.
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AMBANC CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of and for the three months ended March 31, 1997
(Dollar amounts in thousands, except share data)
NEW ACCOUNTING PRONOUNCEMENTS
The Corporation adopted Statement of Financial Accounting
Standards (FAS) 125, "Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities", effective
January 1, 1997. The adoption of FAS 125 had no effect on the
Corporation's financial statements due to no covered transactions
existing.
FAS 128, "Earnings per Share" was issued in February 1997 and
establishes new standards for computing and presenting earnings
per share (EPS). Specifically FAS 128 replaces the presentation
of primary EPS with a presentation of basic EPS, requires dual
presentation of basic and diluted EPS on the face of the income
statement for all entities with complex capital structures and
requires a reconciliation of the numerator and denominator of the
basic EPS computation to the numerator and denominator of the
diluted EPS computation. FAS 128 is effective for financial
statements issued for periods ending after December 15, 1997:
earlier application is not permitted. Management has determined
that the adoption of FAS 128 will not have a material effect on
the accompanying financial statements.
FINANCIAL STATEMENT RECLASSIFICATIONS
Certain items in the prior years financial statements have been
reclassified to correspond with the current presentation.
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AMBANC CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
As of and for the three months ended March 31, 1997
(Dollar amounts in thousands, except share data)
ITEM 2.
RESULTS OF OPERATIONS
Net interest income is the principal source of the
Corporation's earnings and represents the difference
between interest income on loans and securities over
interest costs of deposits and borrowed funds. Income
from certain earning assets is exempt from federal income
tax and, as is customary in the banking industry, changes in
net interest income are analyzed on a fully tax equivalent
basis. Under this method, and throughout this discussion,
nontaxable income on loans and investments is adjusted to
an amount which represents the equivalent earnings if such
earnings were subject to federal tax. The marginal tax
rate used to restate nontaxable income was 34%.
Three Months Ended
March 31, Increase
1997 1996 (Decrease)
Interest income $ 13,680 $ 13,338 2.56 %
Adjusted for tax
exempt income 417 400 4.25
Tax equivalent
interest income 14,097 13,738 2.61
Interest expense 6,891 6,721 2.53
Net interest income $ 7,206 $ 7,017 2.69 %
Net interest income increased $189 or 2.69% for the three
months ended March 31, 1997, compared to the three months
ended March 31, 1996. This $189 increase was a combination of a
$359 increase in interest income offset by a $170 increase in
interest expense. The $359 increase in interest income was
composed of an increase of $459 due to increased volume of
average interest earning assets and a decrease of $100 due to
decreased rates received on these interest earning assets. The
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AMBANC CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
As of and for the three months ended March 31, 1997
(Dollar amounts in thousands, except share data)
$170 increase in interest expense was a combination of an
increase of $235 due to increased volume of average interest
bearing liabilities and a decrease of $65 due to rate decreases
on these interest bearing liabilities.
The Corporation's average assets for the first three months of
1997 increased $23,391 or 3.38% to $714,508 from $691,117 for the
first three months of 1996. The percent of average earning
assets to total average assets has stayed consistent at 94.86%
for the first three months of 1997 and 94.88% for the first three
months of 1996.
Net interest margin increased .01% to 4.31% for the first three
months of 1997 from 4.30% for the first three months of 1996.
This small increase is due to the cost of average interest
bearing liabilities decreasing .01% from 4.81% for the first
three months of 1996 to 4.80% for the first three months of 1997
while the yield on average earning assets remained the same for
the first three months of 1997 and 1996 at 8.43%. Although the
Corporation continues to place emphasis on increasing the net
interest margin, it has proven increasingly difficult with
increased emphasis on rates by the competition.
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AMBANC CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
As of and for the three months ended March 31, 1997
(Dollar amounts in thousands, except share data)
The provision for loan losses was increased $48 or 17.98% to $315
during first quarter 1997 compared to $267 during the first
quarter 1996. This increase was due to outstanding loans
increasing $12,315 or 2.49% in the first three months of 1997
compared to an increase of $8,366 or 1.89% in the same period in
1996 and as replacement for net loan charge offs which increased
in 1997 compared to 1996.
The allowance for loan losses at March 31, 1997, was $5,422 or
1.07% of total loans less unearned income as compared to $5,630
or 1.14% of total loans less unearned income at December 31,
1996. During the first three months of 1997, loans charged off
were $605 and recoveries from previously written off loans were
$82, thus net charge offs for the first three months of 1997 were
$523. The adequacy of the allowance for loan losses is analyzed
by management of each subsidiary bank based upon review of
identified loans with more than a normal degree of risk,
historical loan loss percentage by type of loan and present and
forecasted economic conditions. Management's analysis indicates
that the allowance for loan loss at March 31, 1997, is adequate
to cover potential losses on identified loans with credit
problems and historical losses on the remaining loan portfolio.
The following are the different types of problem loans with their
outstanding balances and percent of total loans less unearned
income at March 31, 1997, and December 31, 1996:
March 31, 1997 December 31, 1996
Nonaccrual loans $1,266 .25% $1,421 .29%
Loans past due 90 days 1,898 .37 1,313 .27
Performing restructured loans 4,012 .79 3,089 .62
OREO 419 .08 324 .07
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AMBANC CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
As of and for the three months ended March 31, 1997
(Dollar amounts in thousands, except share data)
A summary of the activity in the allowance for loan losses
account for the first three months ending March 31, 1997 and
1996 was:
1997 1996
Balance, January 1 $5,630 $5,022
Provision for loan losses 315 267
Loans charged off (605) (277)
Recoveries of loans previously
charged off 82 127
Balance, March 31, $5,422 $5,139
Noninterest income for the three months ended March 31, 1997,
increased 36.68% or $267 to $995 from $728 in 1996. Income from
fiduciary services increased $64 or 49.23% to $194 from $130 in
1996. This increase is due to increased business and quicker
timing of billings in 1997 compared to 1996. Service charges on
deposit accounts increased $40 or 11.02% to $403 in 1997 compared
to $363 in 1996 and is mainly due to increased charges on non
sufficient fund checks. Security gains were up $54 for the first
quarter 1997 compared to first quarter 1996. The Corporation
instituted a plan of selling small investment pieces to reduce
carrying expenses and to extending maturities on securities that
would mature within the next year. These efforts increased
security gains by $54 in first quarter 1997 over 1996. Other
operating income increased 46.58% or $109 to $343 for the three
months ended March 31, 1997, from $234 for the same three months
in 1996. This increase is due to several factors with the
largest ones being increases in insurance commissions and gains
on sales of loans to the secondary mortgage market.
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AMBANC CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
As of and for the three months ended March 31, 1997
(Dollar amounts in thousands, except share data)
Noninterest expense for the three months ended March 31, 1997,
was $4,459 as compared to $4,297 for the three months ended March
31, 1996, for an increase of $162 or 3.77%. Salaries and
employee benefits are the largest portion of noninterest expense
and increased $39 or 1.58% in the first three months of 1997
compared to the same period in 1996. This increase is due in
part to the Corporation having three more branches in operation
during the first quarter of 1997 than during the first quarter of
1996. Salary expenses are actually lower in 1997 as compared to
1996 because $80 of bonuses were paid during the second quarter
of 1997 verses the comparable bonuses being paid during the first
quarter in 1996. These bonuses are not accrued but are approved
by the Board of Directors annually.
Occupancy expenses were up $56 or 19.65% and equipment expenses
were up $14 or 4.64% in the first quarter of 1997 compared to
1996. The addition of the three branches in 1997 added to these
expenses. The Corporation will open two more branches during the
second quarter of 1997. One of these branches is a replacement
for an existing drive-in branch and the other is the addition of
a new in store Wal-Mart branch. The Corporation entered the new
market area of Evansville, Indiana on January 1, 1997, and will
add this Wal-Mart branch to that market area on May 21, 1997. A
piece of land has also been committed to in Terre Haute, Indiana
in Vigo County for construction of a full service branch. This
branch is expected to be completed in the first quarter of 1998
and will complement the Wal-Mart branch opened in that city in
late 1995. The addition of these branches can be expected to
have incremental increases on noninterest expenses of the
Corporation.
Data processing expenses have decreased $9 or 6.82% to $123 in
1997 due to the consolidation of data processing systems which
was completed during 1996. The subsidiary banks have been
assigned the classification of least risk by the FDIC and as such
are subject to the lowest deposit insurance rates available from
the Bank Insurance Fund (BIF) and the Savings Association
Insurance Fund (SAIF). These rates are set to remain constant
until the year 2000 and are .0129% for BIF and .0243% for SAIF.
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AMBANC CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
As of and for the three months ended March 31, 1997
(Dollar amounts in thousands, except share data)
Other operating expenses increased $76 or 6.93% to $1,172 for the
first three months of 1997 from $1,096 for the same period in
1996. This increase is due primarily to the increase in the
number of branches and expenses related to entering a new market
area with a denovo branch in Evansville, Indiana. Loan
collection expenses have also increased with the increase in
loans charged off.
Income before income taxes was up $229 or 8.23% to $3,010 for the
first three months of 1997 from $2,781 for the first three months
of 1996. The net income for the first three months ended March
31, 1997, was up $134 or 6.76% to $2,115 as compared to $1,981
for the three months ended March 31, 1996. Earnings per share
were $.64 in 1997 and were $.60 in 1996. Based upon annualized
net income the return on average assets was 1.20% for the first
three months of 1997 compared to 1.15% for the same period in
1996.
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AMBANC CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
As of and for the three months ended March 31, 1997
(Dollar amounts in thousands, except share data)
The following schedule shows selected financial amounts and ratios for the
three months ended March 31, 1997 and 1996. The Corporation feels these
financial highlights include pertinent information relevant for its results
as a company in the financial institutions industry.
Three Months Ended
March 31,
1997 1996
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AVERAGE BALANCE SHEET DATA
Total assets $ 714,508 $ 691,117
Securities 168,921 179,538
Loans 500,169 446,500
Allowance for loan losses 5,455 5,020
Deposits 627,805 607,634
Shareholders' equity 72,510 68,095
END OF PERIOD BALANCE SHEET DATA
Total assets $ 726,579 $ 701,269
Securities 163,552 186,186
Loans 506,782 451,023
Allowance for loan losses 5,422 5,139
Deposits 639,560 618,411
Shareholders' equity 72,479 67,618
INCOME DATA
Net interest income(t.e. basis) $ 7,206 $ 7,017
Provision for loan losses 315 267
Noninterest income 995 728
Noninterest expense 4,459 4,297
Net income 2,115 1,981
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AMBANC CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
As of and for the three months ended March 31, 1997
(Dollar amounts in thousands, except share data)
Three Months Ended
March 31,
1997 1996
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PER SHARE DATA
Net income $ .64 $ .60
Cash dividends .21 .20
Book value at end of period 21.86 20.39
Book value at end of period
before FAS 115 22.10 20.48
Tangible book value at end
of period 21.34 19.82
Tangible book value at end of
period before FAS 115 21.58 19.91
Stock price at end of period 36.00 29.05
Weighted average
shares 3,316,267 3,316,267
Weighted average
treasury shares 315 --
SELECTED RATIOS
Return on average assets 1.20% 1.15%
Return on average equity
before FAS 115 11.87 11.89
Net interest margin(t.e.basis) 4.31 4.30
Efficiency ratio 57.28 58.50
Net charge-offs to average loans .10 .03
Allowance for loan losses
to loans 1.07 1.14
Nonaccrual loans to loans .25 .22
Loans past due 90 days or
more to loans .37 .38
Performing restructured loans
to loans .79 .01
OREO to loans .08 .06
Leverage capital(Tier 1
equity/average assets) 10.03 9.59
Tier 1 risk-based capital 13.34 13.39
Total risk-based capital 14.35 14.44
</TABLE>
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AMBANC CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
As of and for the three months ended March 31, 1997
(Dollar amounts in thousands, except share data)
FINANCIAL CONDITION
Total assets have increased $7,825 or 1.09% to $726,579 at March
31, 1997, from $718,754 at December 31, 1996 while total
noninterest bearing deposits have decreased $2,824 or 4.59% and
interest bearing deposits have increased $8,926 or 1.56% at March
31, 1997, from December 31, 1996 for a total deposit increase of
$6,102 or .96%. Securities available for sale before the mark to
market have decreased $5,388 or 3.16% to $164,861 at March 31,
1997, from $170,249 at December 31, 1997. The Corporation did
sell small investment pieces to eliminate carrying costs, but the
major portion of the decrease in securities was due to normal
maturities and calls. Securities available for sale at market
indicates a decrease of $7,172 or 4.20% at March 31, 1997, from
December 31, 1996. This decrease includes the mark-to-market on
securities which went to a negative $1,309 at March 31, 1997,
from a positive $475 at December 31, 1996. This market valuation
reduction is the result of normal repricing of investment
securities in a rising rate environment but did account for
$1,784 of the change in the valuation of securities available for
sale on the balance sheet.
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AMBANC CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
As of and for the three months ended March 31, 1997
(Dollar amounts in thousands, except share data)
Loans held for sale represent qualifying fixed rate mortgage
loans that are available for sale into the secondary market.
Fixed rate real estate mortgage loan rates were low enough that
the Corporation has experienced demand for these loans during the
three months ended March 31, 1997. Current market rate
competition on these loans is making it necessary to sell these
loans as soon as they are booked. The following is the detail of
activity in the loans held for sale between year end and March
31, 1997:
Balance December 31, 1996 $ 2,350
New loans booked (net of payments) 6,303
Loans sold (6,356)
Total at March 31, 1997 $ 2,297
The sale of loans to the secondary market has provided $130 of
net gains on sales during the first quarter of 1997 and the
Corporation is servicing $100,378 of real estate loans sold to
the secondary market as of March 31, 1997.
Loans have increased $12,315 or 2.49% at March 31, 1997, from
December 31, 1996. The following shows the balance and percent
of total by loan classification as of the end of the periods:
3-31-97 12-31-96
% of % of
Balance Total Balance Total
Commercial $216,558 42.73% $201,092 40.67%
Agricultural 48,347 9.54 55,404 11.20
Real estate 132,902 26.22 129,116 26.11
Installment 105,592 20.84 105,169 21.27
Credit cards 3,383 .67 3,686 .75
Total $506,782 $494,467
The Corporation has seen increased demand for commercial loans as
the economy continues its steady to slightly increased movement
and commercial loans have increased $15,466 or 7.69%. The
decrease in agricultural loans is due to normal seasonal
fluctuations with crops being sold and loan balances being paid
down during the first quarter of the year.
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AMBANC CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
As of and for the three months ended March 31, 1997
(Dollar amounts in thousands, except share data)
Total shareholders' equity, including the unrealized loss on
securities available for sale, increased $296 or .41% to $72,479
at March 31, 1997, from $72,183 at December 31, 1996. The change
in the adjustment for securities available for sale caused total
equity to decrease $1,124 or 1.56% at March 31, 1997, from
December 31, 1996. This decrease is the after tax effect of the
mark-to-market adjustment on securities available for sale which
was a negative $814 at March 31, 1997, and was a positive $310 at
December 31, 1996. The Corporation's regulators have issued
guidelines stating that the unrealized gain or loss on securities
available for sale, other than those related to mutual funds (FAS
115 adjustments), should not be included in shareholders' equity
for capital ratio calculations. Total shareholders' equity,
excluding the FAS 115 adjustments, was $71,757 at December 31,
1996, and increased $1,408 or 1.96% to $73,165 at March 31, 1997.
This increase was net income of $2,115 less dividends paid of
$697 less $12 related to a decrease in the mark-to-market on
mutual funds and plus $2 related to treasury stock.
Capital adequacy in the banking industry is evaluated primarily
by the use of three required capital ratios based on three
separate calculations; Tier 1 Leverage Capital, Tier 1 Capital
and total Capital. The Corporation's capital ratios at March 31,
1997, and December 31, 1996, were:
March 31, 1997 December 31, 1996
Tier 1 Leverage Capital 10.03% 10.00%
Tier 1 Capital 13.34% 13.26%
Total Capital 14.35% 14.33%
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AMBANC CORP.
As of and for the three months ended March 31, 1997
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Other than ordinary routine litigation incidental to the
business, there are no material pending legal proceedings to
which the Corporation or its subsidiaries are a party or of
which any of their property is the subject.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
11 Statement of Computation of per share
earnings. The copy of this exhibit filed as
Exhibit 11 to AMBANC's Annual Report on Form
10-K for the year ended December 31, 1996,
is incorporated herein by reference.
27 Financial Data Schedule for March 31, 1997.
(b) No Form 8-K was filed with the SEC during the quarter
ended March 31, 1997.
PAGE
<PAGE>
AMBANC CORP.
As of and for the three months ended March 31, 1997
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.
AMBANC CORP.
(Registrant)
DATE: May 14, 1997 BY: R. Watson
Robert G. Watson, Chairman of
the Board, President and
Chief Executive Officer
DATE: May 14, 1997 BY: Richard E. Welling
Richard E. Welling, Secretary,
Treasurer and C.F.O.
PAGE
<PAGE>
AMBANC CORP.
As of and for the three months ended March 31, 1997
EXHIBIT INDEX
EXHIBITS PAGE
11 Statement of Computation of per *
share earnings. The copy of this
exhibit filed as Exhibit 11 to
AMBANC's Annual Report on Form 10-K
for the year ended December 31, 1996,
is incorporated herein by reference.
27 Financial Data Schedule for March
31, 1997.
* Incorporated by reference from previously filed
documents.
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