FORM 10-Q
Securities and Exchange Commission
Washington, D.C. 20549
[ X ] Quarterly Report Pursuant to Section 13 or
15(d) of the Securities Exchange Act of 1934
For the quarterly period ended: September 30, 1995
or
[ ] Transition Report Pursuant to Section 13 or
15(d) of the Securities Exchange Act of 1934
For the transition period from ____________ to ____________
Commission file no.: 0-12377
BT FINANCIAL CORPORATION
-----------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Pennsylvania 25-1441348
-----------------------------------------------------------------
(State of Incorporation) (I.R.S. Employer Identification Number)
551 Main Street, Johnstown, Pennsylvania 15901
----------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(814) 532-3801
-----------------------------
Registrant's Telephone Number
Indicate by checkmark 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 the issuer's classes
of common stock, as of the latest practicable date:
3,826,581 shares common stock
($5.00 par value)
as of November 9, 1995
BT FINANCIAL CORPORATION AND AFFILIATES
FORM 10-Q
September 30, 1995
Part I. Financial Information Page No.
Item 1.
Consolidated Balance Sheet - September 30, 1995
and December 31, 1994
Consolidated Statement of Income
Three and Nine Months Ended September 30, 1995 and 1994
Consolidated Statement of Cash Flows
Nine Months Ended September 30, 1995 and 1994
Notes to Consolidated Financial Statements
Item 2.
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Part II. Other Information
Item 5.
Other Information
Item 6.
Exhibits and Reports
Signatures
<PAGE>
ITEM 1
FINANCIAL STATEMENTS
BT FINANCIAL CORPORATION AND AFFILIATES
CONSOLIDATED BALANCE SHEET
(In thousands, except share data)
September 30 December 31
1995 1994
(Unaudited)
ASSETS
Cash and Cash equivalents $41,098 $47,679
------------------------------
Money market investments:
Interest-bearing deposits with banks 1,628 5,323
Federal funds sold 0 2,000
------------------------------
Total money market investments 1,628 7,323
------------------------------
Securities available-for-sale 208,928 248,281
Securities held-to-maturity (market value
of $43,584 at September 30, 1995 and
$22,242 at December 31, 1994) 43,151 22,911
-----------------------------
Total securities 252,079 271,192
-----------------------------
Loans: 825,220 783,565
Less: Unearned interest 48,808 40,908
Reserve for loan losses 7,508 7,227
-----------------------------
Net loans 768,904 735,430
-----------------------------
Premises and equipment 24,766 23,649
Accrued interest receivable 7,810 7,739
Other assets 14,115 14,563
-----------------------------
Total assets $1,110,400 $1,107,575
=============================
LIABILITIES
Deposits:
Non-interest-bearing 123,979 123,078
Interest-bearing 831,841 825,155
-----------------------------
Total deposits 955,820 948,233
Federal funds purchased and securities sold
under agreements to repurchase 36,814 53,401
Short-term borrowings 5,360 4,571
Accrued interest payable 5,149 2,754
Other liabilities 1,091 1,387
Long-term debt 7,480 9,920
-----------------------------
Total liabilities $1,011,714 $1,020,266
-----------------------------
SHAREHOLDERS' EQUITY
Preferred stock, no par value
Authorized shares: 2,000,000 - -
Common stock,
Par value: $5.00
Authorized shares: 10,000,000
Shares issued: 3,826,581 19,133 19,133
Surplus 33,320 33,320
Retained earnings 46,474 1,430
Net unrealized holding gains (losses) on
securities available-for-sale (241) (6,574)
-----------------------------
Total shareholders' equity 98,686 87,309
-----------------------------
Total liabilities and
shareholders' equity $1,110,400 $1,107,575
=============================
BT FINANCIAL CORPORATION AND AFFILIATES
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(In thousands, except shares and per share data)
Three months ended Nine months ended
Sept. 30 Sept. 30
1995 1994 1995 1994
------------------------------------------------
INTEREST INCOME
Loans, including fees $ 16,589 $ 14,092 $ 48,243 $ 41,224
Investment securities:
Taxable 4,019 4,086 12,036 11,642
Tax-exempt 35 40 110 125
Deposits with banks 29 128 249 589
Federal funds sold 31 172 125 462
------------------------------------------------
Total interest income 20,703 18,518 60,763 54,042
------------------------------------------------
INTEREST EXPENSE
Deposits 7,823 6,304 23,226 18,100
Federal funds purchased and
securities sold under
agreement to repurchase 291 145 1,035 271
Short-term borrowings 57 31 149 97
Term debt 148 171 507 457
------------------------------------------------
Total interest expense 8,319 6,651 24,917 18,925
------------------------------------------------
NET INTEREST INCOME 12,384 11,867 35,846 35,117
Provision for loan losses 690 231 1,159 557
-------------------------------------------------
Net interest income after
provision for loan losses 11,694 11,636 34,687 34,560
-------------------------------------------------
OTHER INCOME
Trust income 491 453 1,466 1,379
Fees for other services 1,302 1,176 3,603 3,433
Net security gains (losses) (35) (10) 49 192
Other income 138 106 344 320
------------------------------------------------
Total other income 1,896 1,725 5,462 5,324
------------------------------------------------
OTHER EXPENSES
Salaries and wages 3,997 3,930 12,198 11,678
Pension and other employee
benefits 830 764 2,138 2,543
Net occupancy expense 839 830 2,614 2,567
Equipment expense 791 666 2,121 1,921
FDIC insurance 86 529 1,154 1,507
Amortization of intangible
assets 283 319 849 993
Other operating expense 2,137 2,348 6,514 6,948
------------------------------------------------
Total other expenses 8,963 9,386 27,588 28,157
------------------------------------------------
INCOME BEFORE INCOME TAXES 4,627 3,975 12,561 11,727
Provision for income taxes 1,583 1,120 4,073 3,623
------------------------------------------------
NET INCOME $ 3,044 $ 2,855 $ 8,488 $ 8,104
================================================
Net income per share .80 .75 2.22 2.12
Dividends paid per share .30 .27 .90 .80
Weighted average shares
outstanding 3,826,581 3,826,581 3,826,581 3,826,581
Note: Share and per share data have been restated to reflect the 5%
stock dividend distributed October 14, 1994.
The accompanying notes are an integral part of the consolidated financial
statements.
BT Financial Corporation and Affiliates
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(In thousands)
Nine months ended
September 30
1995 1994
--------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 8,488 $ 8,104
Adjustments to reconcile net income to net
cash provided by operating activities
Provision for loan losses 1,159 557
Provision for depreciation and amortization 2,031 1,823
Amortization of intangible assets 849 993
Amortization of premium, net of accretion of
discount on loans and securities 571 882
Deferred income taxes (26) (417)
Realized securities (gains) losses (49) (192)
Decrease (increase) in interest receivable (71) (405)
Increase (decrease) in interest payable 2,395 2,221
Increase in other assets and liabilities, net (4,102) (2,086)
-------------------
Net cash provided by operating activities 11,245 11,480
-------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of securities 14,096 7,868
Repayments and maturities of securities 48,209 30,357
Purchases of securities (34,004) (95,949)
Net decrease in money market investments 5,695 61,680
Proceeds from sales of loans 4,526 5,103
Net increase in loans (39,105) (25,758)
Purchases of premises and equipment and other (3,148) (2,305)
--------------------
Net cash used in investing activities (3,731) (19,004)
--------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits 7,587 177
Net increase (decrease) in Federal Funds purchased
and securities sold under agreements to
repurchase (16,587) 14,991
Net increase (decrease) in short-term borrowing 789 (857)
Cash dividends paid (3,444) (3,061)
Payments on long-term debt (2,440) (2,440)
--------------------
Net cash provided by (used in) financing
activities (14,095) 8,810
--------------------
Increase (decrease) in cash and cash equivalents (6,581) 1,286
Cash and cash equivalents at beginning of the year 47,679 42,210
--------------------
Cash and cash equivalents at end of period $41,098 $43,496
====================
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest on deposits and other borrowings $22,522 $16,704
Federal income taxes 5,895 6,377
The accompanying notes are an integral part of the consolidated financial
statements.
BT FINANCIAL CORPORATION AND AFFILIATES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. In the opinion of the management of BT Financial Corporation (BT or the
Corporation), the accompanying consolidated financial statements include
all normal recurring adjustments necessary for a fair presentation of the
financial position and results of operations of BT for the periods
presented. All significant intercompany transactions have been
eliminated in consolidation. Certain amounts have been reclassified for
comparative purposes. The consolidated financial statements of BT
include the accounts of BT and its wholly-owned affiliates, Johnstown
Bank and Trust Company (Bank and Trust), Laurel Bank (Laurel), Fayette
Bank (Fayette), BT Management Trust Company (Trust Company) and Bedford
Associates, Inc. These statements should be read in conjunction with the
financial statements and the notes thereto included in BT's annual report
to the Securities and Exchange Commission on Form 10-K for the year ended
December 31, 1994. The results of operations for the nine-month period
ended September 30, 1995 are not necessarily indicative of the results
which may be expected for the full year.
2. Tax provisions for interim financial statements are based on the esti-
mated effective tax rates for the full fiscal year. The estimated
effective tax rates differ from the statutory tax rate principally due to
tax-exempt interest income.
3. On August 24, 1994, the Board of Directors declared a 5% stock dividend,
payable October 14, 1994, to shareholders of record September 16, 1994.
BT transferred $5,102,104, representing 182,218 common shares at a market
value of $28.00 from retained earnings to surplus on the declaration
date. On October 14, 1994, $911,090 was transferred from surplus to
common stock, representing the $5.00 par value of the common shares
issued.
4. In May 1993 the FASB issued Statement 115, "Accounting for Certain
Investments in Debt and Equity Securities". Management adopted Statement
115 at December 31, 1993 and classified the entire security portfolio as
available for sale in order to effectively manage interest rate risk.
Securities available-for-sale are carried at fair value with net
unrealized holding gains or losses included in shareholders' equity.
Beginning in the second quarter of 1994 BT began to classify certain
securities as held-to-maturity. Securities are classified as held-to-
maturity when the Corporation has the positive intent and ability to hold
those securities to maturity. Securities held-to-maturity are carried at
amortized cost.
5. Allowance for credit losses -- The Corporation adopted FAS 114,
"Accounting by Creditors for Impairment of a Loan", on January 1, 1995.
Under the new standard, a loan is considered impaired, based on current
information and events, if it is probable that the Corporation will be
unable to collect the scheduled payments of principal or interest when
due according to the contractual terms of the loan agreement. The
measurement of impaired loans is generally based on the present value of
expected future cash flows discounted at the historical effective
interest rate, except that all collateral-dependent loans are measured
for impairment based on the fair value of the collateral. The adoption
of FAS 114 did not result in an additional provision for credit losses as
determined at January 1, 1995.
The adequacy of the allowance for credit losses is periodically evaluated
by the Corporation in order to maintain the allowance at a level that is
sufficient to absorb probable credit losses. Management's evaluation of
the adequacy of the allowance is based on a review of the Corporation's
historical loss experience, known and inherent risks in the loan
portfolio, including adverse circumstances that may affect the ability of
the borrower to repay interest and/or principal, the estimated value of
collateral, and an analysis of the levels and trends of delinquencies,
charge-offs, and the risk ratings of the various loan categories.
At September 30, 1995, the recorded investment in loans for which
impairment has been recognized in accordance with FAS 114 totalled $2.3
million, with a corresponding valuation allowance of $1.0 million. The
Corporation does not have any impaired loans for which there is not a
related valuation allowance.
For the quarter ended September 30, 1995, the average recorded investment
in impaired loans did not differ materially from the amount outstanding
at September 30, 1995. The allowance for loan losses related to impaired
loans increased $732,000 during the third quarter of 1995. The addition
of an impaired commercial real estate loan and its associated valuation
allowance was partially responsible for this increase. Also contributing
to the increase was a determination that the appraised value of
collateral associated with another impaired commercial real estate loan
had declined in value.
Income recognition on impaired and nonaccrual loans -- Loans, including
impaired loans, are generally classified as nonaccrual if they are past
due as to maturity or payment of principal or interest for a period of
more than 90 days, unless such loans are well-secured and in the process
of collection. Loans that are on a current payment status or past due
less than 90 days may also be classified as nonaccrual if repayment in
full of principal and/or interest is in doubt.
A loan remains on nonaccrual status until it becomes current as to
principal and interest or it is determined to be uncollectible and is
charged off against the reserve for loan losses.
While a loan is classified as nonaccrual and the future collectibility of
the recorded loan balance is doubtful, collections of interest and
principal are generally applied as a reduction to principal outstanding.
When the future collectibility of the recorded loan balance is expected,
interest income may be recognized on a cash basis.
At January 1, 1995, the Corporation did not have any loans meeting the
in-substance foreclosure criteria classified as other real estate owned.
6. On September 1, 1995, BT entered into an agreement with Huntington
Bancshares West Virginia, Inc., a wholly owned subsidiary of Huntington
Bancshares Incorporated, to acquire Huntington's wholly owned
Pennsylvania bank subsidiary, Huntington National Bank of Pennsylvania
for $25.5 million in cash. BT will borrow $12.5 million to finance the
purchase, increasing its unsecured long-term debt to approximately $20
million. Completion of the transaction is subject to regulatory
approvals and satisfaction of certain other conditions. When the
transaction is completed, Huntington National Bank of Pennsylvania, which
is headquartered in Uniontown, Pennsylvania, will be merged into Fayette
Bank, a Uniontown-based affiliate of BT. BT expects the merger to be
completed by December 31, 1995. At September 30, 1995, Huntington
National Bank of Pennsylvania had approximately $106 million in assets.
7. On October 24, 1995, Johnstown Bank and Trust Company, BT's largest
banking affiliate, entered into an Agreement and Plan of Merger to
acquire Armstrong County Trust Company of Kittanning, Pennsylvania. The
Armstrong agreement provides that if the average price per share for BT
common stock is between $34 and $27.50 for a specified period of time
before the closing of the transaction, or if BT enters into an agreement
that would result in an acquisition of BT by another organization, each
share of Armstrong common stock will be exchanged for 26.5 shares of BT
common stock and $596.25 in cash. If the average price for BT common
stock is more than $36 per share during the valuation period, BT will
have the option to adjust the exchange ratio by reducing the number of
shares of BT common stock or cash as agreed to by Armstrong so that the
total consideration does not exceed $1,497.25 per Armstrong share, or
$11,978,000 in the aggregate for all 8,000 Armstrong shares outstanding.
If the average price for BT common stock is less than $27.50 per share
during the valuation period, Armstrong may terminate the agreement if BT
does not increase the number of shares and cash to maintain a total
consideration of $1,325 per Armstrong share, or $10,600,000 in the
aggregate. The Armstrong agreement is subject to approval by Armstrong's
shareholders as well as state and federal authorities and to the
satisfaction of certain other conditions.
Armstrong Trust will be merged into Johnstown Bank and Trust Company,
with Johnstown Bank and Trust Company being the surviving bank. BT
expects the merger to be completed by March 31, 1996.
At September 30, 1995, BT had approximately $1.1 billion in assets and
Armstrong County Trust had approximately $51 million in total assets. If
the acquisitions of Armstrong and Huntington had occurred on September
30, 1995, BT's total assets would have been approximately $1.250 billion
on a pro forma basis.
---------
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is Management's Discussion and Analysis of the material changes
in financial position between December 31, 1994 and September 30, 1995, and
the material changes in results of operations comparing the three and nine
month periods ending September 30, 1995 with the respective results for the
comparable periods of 1994. The following should be read in conjunction with
the corporation's annual report on Form 10-K for the year ended December 31,
1994.
FINANCIAL REVIEW
Changes in Financial Position
Total loans outstanding, net of unearned interest, increased $33.8 million at
September 30, 1995, compared to year-end 1994, and $56.8 million compared to
September 30, 1994. Loans generally provide higher yields than securities;
therefore, BT Financial Corporation (BT) continues to focus its efforts on
generating quality loan growth. Commercial loan growth accounted for most of
the increase during the first nine months of 1995 while an advance in consumer
loans provided the majority of the expansion when compared to September 30,
1994. BT has achieved this growth while attaining increasingly higher levels
of asset quality. The level of non-performing loans (which includes
nonaccrual and restructured loans) was $2.8 million at September 30, 1995, and
$4.0 million at December 31, 1994, compared to $4.4 million at September 30,
1994. Non-performing loans as a percent of outstanding loans, net of unearned
interest, were 0.37%, 0.54%, and 0.61% for the same periods, respectively.
Total non-performing assets declined $571,000 compared to year-end 1994 and
$1,073,000 compared to September 30, 1994. Additions to non-performing assets
for the nine months ended September 30, 1995, included other real estate owned
related to a commercial real estate loan. This loan is well collateralized
and no significant loss is expected.
The following table provides information with respect to BT's past-due loans
and the components of its non-performing assets for the periods indicated.
September 30 December 31 September 30
(In thousands) 1995 1994 1994
-----------------------------------------------
Loans 90 days or more past
due $ 796 $ 652 $ 743
================================================
Restructured loans $ 319 $ 675 $ 683
Nonaccrual loans 2,525 3,313 3,693
------------------------------------------------
Total non-performing loans 2,844 3,988 4,376
Other real estate owned 663 90 204
------------------------------------------------
Total non-performing
assets $3,507 $4,078 $4,580
================================================
The reserve for loan losses was $7.5 million at September 30, 1995, compared
to $7.2 million at December 31, 1994, and September 30, 1994. The reserve was
2.64 times the amount of non-performing loans at September 30, 1995, compared
to 1.81 and 1.64 times at December 31, 1994, and September 30, 1994,
respectively. As a percent of total outstanding loans, net of unearned
interest, the reserve for loan losses was 0.97% at September 30, 1995, and
December 31, 1994, compared to 1.00% at September 30, 1994.
Securities, which consist primarily of U.S. Treasury and other U.S. Government
agencies, decreased $19.1 million compared to December 31, 1994 and $23.1
million compared to September 30, 1994. These decreases are due primarily to
the maturing and sales of various securities and the use of proceeds to fund
the recent growth in total loans outstanding. Money market investments
decreased $5.7 million compared to year-end 1994, and $16.7 million compared
to September 30, 1994. The decline in money market investments reflects
funding of loan growth.
Total deposits at September 30, 1995 increased $7.6 million compared to
December 31, 1994, and were relatively flat compared to September 30, 1994.
The increase in deposits over year-end 1994 was primarily in certificates of
deposit as consumers reacted to rising market interest rates by shifting funds
into longer term investments. This growth was from new deposits as well as
some transfer of funds from demand deposits and savings accounts. The
increase in deposits enabled BT to reduce the amount of its borrowed funds, as
Federal funds purchased and securities sold under agreements to repurchase
decreased $16.6 million at September 30, 1995, compared to year-end 1994.
Results of Operations
A five percent stock dividend was distributed October 14, 1994, to
shareholders of record September 16, 1994. All per share data in the
following discussion has been restated to reflect the stock dividend. Net
income was $3.0 million, or $0.80 per share, for the third quarter of 1995, an
increase of $189,000, or $0.05 per share over the third quarter of 1994. Net
income for the nine-months-ended September 30, 1995 was $8.5 million or $2.22
per share, an increase of $384,000, or $0.10 per share, from the same period
of 1994.
The annualized return on average assets for the third quarters of 1995 and
1994 was 1.11% and 1.06%, respectively. The annualized return on average
shareholders' equity was 12.45% for the third quarter of 1995 and 12.95% for
the third quarter of 1994. For the nine-months-ended September 30, the
annualized return on average assets was 1.03% in 1995 and 1.01% in 1994. The
annualized return on average shareholders' equity for the nine-months-ended
September 30 was 12.06 and 12.13 in 1995 and 1994, respectively.
Fully taxable equivalent net interest income increased $548,000 and $787,000
for the quarter and the nine-months-ended September 30, 1995. The growth in
the third quarter is a result of a net interest margin increase of 12 basis
points to 4.89% and a $19.4 million expansion in average earning assets over
the same period last year. The nine-month period increase is due to a higher
level of average earning assets, which increased $35.1 million. This growth
was tempered by a decline in the net interest margin of 6 basis points to
4.76% from the prior year nine-month period. Recent net interest margin
movement suggests a strengthening pattern approaching prior year-to-date
levels.
The provision for loan losses increased $459,000 in the third quarter and
$602,000 for the nine-months-ended September 30, 1995 as a result of
management's assessment of the provision necessary to maintain an adequate
reserve against potential future losses based upon current size and quality of
the loan portfolio. Net charge-offs were $272,000 in the third quarter of
1995 and $878,000 in the nine-months-ended September 30, 1995, compared to
$226,000 and $551,000 for the same periods in 1994.
Total other income increased $171,000 for the third quarter and $138,000 for
the nine-months-ended September 30, 1995. In both periods, Trust income and
service fees increased primarily due to greater volumes, while security
transaction income declined mainly due to market conditions resulting in less
restructuring of the portfolio in the current year versus the prior year.
Total other expenses decreased $423,000 in the third quarter and $569,000 for
the nine-months-ended September 30, 1995. Salaries and wages increased
$67,000 and $520,000 for the quarter and nine-months-ended September 30, 1995,
due to periodic merit increases. Employee benefit costs increased $66,000 in
the third quarter primarily due to increased pension expense and the onset of
employer funded contributions associated with a newly implemented 401K
employee retirement program. The nine-month comparison to prior year reflects
a decline of $405,000 in benefit costs due to reduced hospitalization premiums
and the reduction of self-funded reserves due to a change in BT's health care
insurance provider. Occupancy expense increased $9,000 and $47,000 and
equipment expense increased $125,000 and $200,000, for the quarter and nine-
months-ended September 30, primarily due to greater depreciation expense.
FDIC insurance declined $443,000 for the quarter, and $353,000 year to date,
due to a retroactive deposit insurance rate adjustment resulting in a refund
of $457,000, received in the third quarter of 1995. There are currently
legislative proposals under consideration that would merge the Savings
Association Insurance Fund (SAIF) into the Bank Insurance Fund. BT has
deposits of approximately $228 million that were obtained from acquisitions in
prior years that are considered SAIF deposits. Current proposals include a
one-time assessment of $0.65 to $0.85 per $100 of SAIF deposits. There is
also discussion concerning a possible reduction in SAIF deposits subject to
the assessment due to the runoff of some of these deposits subsequent to
acquisition. Amortization of intangible assets decreased $36,000 and $144,000
for the quarter and nine-month period, due to the completed amortization of
certain intangible assets in the third quarter of 1994. Other operating
expenses declined $211,000 and $434,000 for the quarter and year-to-date
comparison period, primarily due to reduced advertising expense and one-time
acquisition related costs that occurred during the first quarter of 1994.
Management continuously strives to control operating expenses while providing
the affiliates the support they need to offer quality products and services to
our customers. Several departmental areas have been centralized within the
corporation with the underlying goal of attaining higher levels of
efficiencies while simultaneously improving profitability.
BT's effective tax rate was 34.2% and 32.4% for the third quarter and nine-
months-ended September 30, 1995, respectively, compared to 28.2% and 30.9% for
the same periods in 1994. The lower effective tax rates for 1994 compared to
1995 were primarily due to the deductibility of goodwill amortization
associated with acquisitions in prior years. Certain amortization associated
with the acquisitions was previously nondeductible for federal income tax
purposes. As a result of changes in the federal income tax laws in 1994, BT
elected to amortize certain goodwill over a 15-year period for federal income
tax purposes, thereby allowing deductibility for both financial statement and
federal income purposes.
PART II
OTHER INFORMATION
ITEM 5
OTHER INFORMATION
The information contained in footnotes 6 and 7 to the Consolidated
Balance Sheet included in Part I of this report on Form 10-Q is incorporated
by reference in response to this item.
On September 27, 1995, BT's Board of Directors approved a restructuring
within its management team, effective October 2, 1995, resulting in the
following personnel changes: Steven C. Ackmann, Vice Chairman of BT, to
President and Chief Operating Officer of BT; Eric F. Rummel, President of
Laurel, to President of Johnstown Bank and Trust Company; Harold E. Trevenen,
President of Fayette Bank, to President of Laurel Bank; Andrew J. Duran,
Executive Vice President, Secretary, and Treasurer, Financial Services Division
Head of Fayette Bank, to President of Fayette Bank; John W. Egnot, President of
Johnstown Bank and Trust Company, to Executive Vice President, Banking
Division Head of Bank and Trust; Laura L. Roth, Assistant Secretary and
Assistant Treasurer - Corporate of BT, to Secretary and Assistant Treasurer -
Corporate of BT.
ITEM 6
EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - not applicable
(b) No reports on Form 8-K have been filed by the Registrant during the
quarter for which this report is filed.
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.
BT FINANCIAL CORPORATION
Date November 13, 1995 /s/ John H. Anderson
------------------------- -------------------------
John H. Anderson
Chairman and CEO
Date November 13, 1995 /s/ Mark L. Sollenberger
------------------------- --------------------------
Mark L. Sollenberger
Executive Vice President, Treasurer,
and Assistant Secretary
(Principal Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 41,098
<INT-BEARING-DEPOSITS> 1,628
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 208,928
<INVESTMENTS-CARRYING> 43,151
<INVESTMENTS-MARKET> 43,584
<LOANS> 825,220
<ALLOWANCE> 7,508
<TOTAL-ASSETS> 1,110,400
<DEPOSITS> 955,820
<SHORT-TERM> 42,174
<LIABILITIES-OTHER> 6,240
<LONG-TERM> 7,480
<COMMON> 19,133
0
0
<OTHER-SE> 79,553
<TOTAL-LIABILITIES-AND-EQUITY> 1,110,400
<INTEREST-LOAN> 48,243
<INTEREST-INVEST> 12,146
<INTEREST-OTHER> 374
<INTEREST-TOTAL> 60,763
<INTEREST-DEPOSIT> 23,226
<INTEREST-EXPENSE> 24,917
<INTEREST-INCOME-NET> 35,846
<LOAN-LOSSES> 1,159
<SECURITIES-GAINS> 49
<EXPENSE-OTHER> 27,588
<INCOME-PRETAX> 12,561
<INCOME-PRE-EXTRAORDINARY> 12,561
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,488
<EPS-PRIMARY> 2.22
<EPS-DILUTED> 0
<YIELD-ACTUAL> 4.76
<LOANS-NON> 2,525
<LOANS-PAST> 796
<LOANS-TROUBLED> 319
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 7,227
<CHARGE-OFFS> 1,147
<RECOVERIES> 269
<ALLOWANCE-CLOSE> 7,508
<ALLOWANCE-DOMESTIC> 7,508
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
