<PAGE>
Form 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(MARK ONE)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1998
---------------------------------
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 number 0-14468.
--------
First Oak Brook Bancshares, Inc.
-----------------------------------------------------
(Exact Name of registrant as specified in its charter)
Delaware 36-3220778
----------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1400 Sixteenth Street, Oak Brook, Illinois 60523
- ------------------------------------------------- --------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (630) 571-1050
--------------
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 number of shares outstanding of each of the issuer's classes of common
stock, as of April 30, 1998.
Class A 1,886,802
- ------------------------------- ----------------
CLASS NUMBER OF SHARES
Common 1,461,303
- ------------------------------- ----------------
CLASS NUMBER OF SHARES
<PAGE>
FIRST OAK BROOK BANCSHARES, INC. AND SUBSIDIARY
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
Part I. Financial Information
- ------------------------------
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets
March 31, 1998 and December 31, 1997 3
Condensed consolidated statements of income
Three months ended March 31, 1998 and 1997 5
Condensed consolidated statements of cash flows
Three months ended March 31, 1998 and 1997 7
Notes to condensed consolidated financial
statements -- March 31, 1998 9
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations 12
Part II. Other Information
- ---------------------------
Item 1. Legal Proceedings *
Item 2. Changes in Securities *
Item 3. Defaults upon Senior Securities *
Item 4. Submission of Matters to a Vote of
Security Holders *
Item 5. Other Information *
Item 6. Exhibits and Reports on Form 8-K 17
Signatures 18
- ----------
</TABLE>
* Not applicable
2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FIRST OAK BROOK BANCSHARES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, 1998 AND DECEMBER 31, 1997
(UNAUDITED)
(In Thousands)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
---- ----
<S> <C> <C>
Assets
------
Cash and due from banks $ 47,727 $ 32,893
Federal funds sold 40,057 -
Interest-bearing deposits with banks 11,420 10,239
Securities held-to-maturity, at
amortized cost (fair value, $138,353
and $145,639 for March 31, 1998
and December 31, 1997, respectively) 135,535 142,682
Securities available-for-sale, at
fair value 179,258 159,416
Loans, net of unearned discount 472,965 447,332
Less allowance for loan losses (3,891) (4,329)
--------- ---------
Net loans 469,074 443,003
--------- ---------
Premises and equipment, net 19,761 18,773
Other assets 8,726 9,138
--------- ---------
Total assets $ 911,558 $ 816,144
========= =========
</TABLE>
3
<PAGE>
CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(Unaudited)
(In Thousands Except Share Information)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
---- ----
<S> <C> <C>
Liabilities
- -----------
Noninterest-bearing demand deposits $ 169,380 $ 153,806
--------- ---------
Interest-bearing deposits:
Savings deposits and NOW accounts 169,274 166,040
Money market accounts 36,307 33,139
Time deposits
Under $100,000 157,401 113,839
$100,000 and over 190,268 160,939
--------- ---------
Total interest-bearing deposits 553,250 473,957
--------- ---------
Total deposits 722,630 627,763
--------- ---------
Federal funds purchased and securities
sold under agreements to repurchase 37,992 52,608
Treasury, tax and loan demand notes 12,379 12,508
Federal Home Loan Bank borrowings 56,000 42,500
Other liabilities 9,103 9,104
--------- ---------
Total liabilities 838,104 744,483
--------- ---------
Shareholders' Equity
- --------------------
Class A common stock (aggregate
liquidation preference of $11,908) 4,011 3,973
Common stock 3,271 3,298
Surplus 11,936 11,802
Accumulated other comprehensive income 1,781 1,644
Retained earnings 56,040 54,529
Less cost of shares in treasury,
118,000 Class A common and 174,023
common shares at March 31, 1998
and December 31, 1997 (3,585) (3,585)
--------- ---------
Total shareholders' equity 73,454 71,661
--------- ---------
Total liabilities and
shareholders' equity $ 911,558 $ 816,144
========= =========
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
4
<PAGE>
FIRST OAK BROOK BANCSHARES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
(In Thousands)
<TABLE>
<CAPTION>
1998 1997
------- -------
<S> <C> <C>
Interest income:
Interest on loans $ 9,154 $ 9,462
Interest on securities:
U.S. Treasury and Government agencies 3,455 3,174
Obligations of states and political
subdivisions 608 659
Other securities 301 51
Interest on Federal funds sold and
securities repurchased under
agreements to resell 266 187
Interest on deposits with banks 185 4
------- -------
Total interest income 13,969 13,537
------- -------
Interest expense:
Interest on savings deposits and
NOW accounts 1,458 1,559
Interest on money market accounts 285 276
Interest on time deposits 4,295 3,913
Interest on Federal funds purchased
and securities sold under
agreements to repurchase 569 570
Interest on Treasury, tax and loan
demand notes 110 117
Interest on Federal Home Loan Bank
borrowings 783 46
------- -------
Total interest expense 7,500 6,481
------- -------
Net interest income 6,469 7,056
Provision for loan losses 60 375
Net interest income after provision for
loan losses ------- -------
$ 6,409 $ 6,681
------- -------
</TABLE>
5
<PAGE>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Continued)
THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
(In Thousands Except Share Information)
<TABLE>
<CAPTION>
1998 1997
------- --------
<S> <C> <C>
Other income:
Service charges on deposit accounts $ 772 $ 681
Investment management and trust fees 216 285
Merchant card processing fees 292 219
Investment securities gains (losses) 79 (9)
Other operating income 516 226
------ ------
Total other income 1,875 1,402
------ ------
Other expenses:
Salaries and employee benefits 3,425 3,120
Occupancy expense 382 387
Equipment expense 420 393
Data processing 142 444
Professional fees 117 104
Postage, stationery and supplies 211 176
Advertising and business development 279 385
FDIC premiums 20 19
Gain on other real estate owned - (515)
Other operating expenses 378 482
------ ------
Total other expenses 5,374 4,995
------ ------
Income before provision for income taxes 2,910 3,088
Provision for income taxes 832 875
------ ------
Net income $2,078 $2,213
====== ======
Earnings per share:
Basic $.62 $.67
====== ======
Diluted $.61 $.65
====== ======
Dividends paid per share:
Class A Common $0.150 $0.130
====== ======
Common $0.125 $0.105
====== ======
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
6
<PAGE>
FIRST OAK BROOK BANCSHARES, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
(In Thousands)
<TABLE>
<CAPTION>
1998 1997
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 2,078 $ 2,213
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, discount accretion, premium
amortization and amortization of
intangible assets 600 638
Provision for loan losses 60 375
Investment securities (gains) losses (79) 9
Decrease in other assets 48 271
Increase (decrease) in other liabilities (72) 915
-------- --------
Net cash provided by operating activities 2,635 4,421
-------- --------
Cash flows from investing activities:
Purchase of securities held-to-maturity (11,000) (6,868)
Purchase of securities available-for-sale (23,075) (28,747)
Proceeds from maturities and calls of
securities held-to-maturity 16,260 10,157
Proceeds from sales and maturities of
securities available-for-sale 5,279 29,287
Increase in loans (26,131) (2,374)
Additions to premises and equipment (1,449) (1,030)
-------- --------
Net cash provided by (used in) investing
activities (40,116) 425
-------- --------
Cash flows from financing activities:
Increase in demand deposits 15,574 7,345
Increase in savings and NOW accounts 3,234 225
Increase (decrease) in money market accounts 3,168 (229)
Increase (decrease) in time deposits 72,891 (25,226)
Increase (decrease) in treasury, tax
and loan demand notes (129) 973
Proceeds from Federal Home Loan Bank
borrowings 41,000 7,500
Repayment of Federal Home Loan Bank
borrowings (27,500) -
Increase (decrease) in securities sold
under agreements to repurchase (14,616) 972
Exercise of stock options 145 150
Purchase of treasury stock - (2,813)
Cash dividends (567) (409)
------- -------
Net cash provided by (used in) financing
activities 93,200 (11,512)
------- -------
</TABLE>
7
<PAGE>
FIRST OAK BROOK BANCSHARES, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF CASH FLOWS (Continued)
THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
(In Thousands)
<TABLE>
<CAPTION>
1998 1997
------- --------
<S> <C> <C>
Net increase (decrease) in cash and
cash equivalents 55,719 (6,666)
Cash and cash equivalents at beginning
of period 32,954 61,255
------- -------
Cash and cash equivalents at end of period $88,673 $54,589
======= =======
Supplemental disclosures:
Interest paid $ 6,798 $ 6,355
Income taxes paid 427 115
======= =======
</TABLE>
8
<PAGE>
FIRST OAK BROOK BANCSHARES, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1998
(Unaudited)
1. 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 rules and regulations of the
Securities and Exchange Commission. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments (consisting of normal recurring items) considered necessary
for a fair presentation have been included. Operating results for the three
month period ended March 31, 1998 are not necessarily indicative of the
results that may be expected for the year ended December 31, 1998. 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, 1997.
2. New Accounting Pronouncements:
On January 1, 1998, the Company adopted the Financial Accounting Standards
Board's Statement 130, "Reporting Comprehensive Income." Statement 130
established new rules for the reporting and display of comprehensive income
and its components; however, the adoption of the Statement had no impact on
the Company's net income or shareholders' equity. Statement 130 requires
unrealized gains or losses on the Company's available-for-sale securities,
which prior to adoption were reported separately in shareholders' equity to
be included in other comprehensive income. Prior year financial statements
have been reclassified to conform to the requirements of Statement 130.
During the first quarter of 1998 and 1997, total comprehensive income
amounted to $2,215,000 and $1,607,000 which represents the sum of net income
for the period and the change in the accumulated other comprehensive income.
On January 1, 1998, The Company adopted the American Institute of Certified
Public Accountant's Statement of Position 98-1 "Accounting for the Costs of
Computer Software Developed or Obtained for Internal Use." The SOP requires
the Company to capitalize qualifying computer software costs incurred during
the application development stage of a project. The adoption of this SOP did
not have a material impact on the consolidated financial statements.
9
<PAGE>
3. Commitments and Contingent Liabilities:
In the normal course of business, there are various outstanding commitments
and contingent liabilities, including commitments to extend credit, which
are not reflected in the financial statements. The Company's exposure to
credit loss in the event of nonperformance by the other party to the
commitments and lines of credit is limited to their contractual amount.
Many commitments to extend credit expire without being used. Therefore, the
amounts stated below do not necessarily represent future cash commitments.
These commitments are subject to the same credit policy as followed for
loans recorded in the financial statements.
The summary of these commitments to extend credit follows (in thousands):
<TABLE>
<CAPTION>
March 31, 1998 December 31, 1997
-------------- -----------------
<S> <C> <C>
Commercial $51,095 $46,831
Commercial mortgage 26,834 37,834
Home equity 80,756 80,338
Check credit 927 969
</TABLE>
4. Shareholders' Equity:
<TABLE>
<CAPTION>
Shares authorized, issued and outstanding are as follows:
<S> <C> <C>
March 31, December 31,
1998 1997
--------- ------------
Preferred Stock, Series B,
no par value:
Authorized 100,000 100,000
Issued None None
Outstanding None None
Class A Common Stock,
$2.00 par value:
Authorized 4,000,000 4,000,000
Issued 2,005,240 1,986,407
Outstanding 1,887,240 1,868,407
Common Stock,
$2.00 par value:
Authorized 3,000,000 3,000,000
Issued 1,635,688 1,648,896
Outstanding 1,461,665 1,474,873
</TABLE>
Each share of Class A Common stock is entitled to one-twentieth of one vote
and a cash dividend of at least 120% of the dividend declared on the Common
stock. Holders of the Class A Common stock, upon liquidation of the
Company, are entitled to receive an aggregate amount per share equal to the
$6.31 offering price of the Class A Common stock before any amount is paid
to holders of the Common stock.
10
<PAGE>
The Common stock is convertible into Class A Common stock on a one-for-one
basis at any time.
The April cash dividend increased 20% on both the Class A and Common stock.
The new Class A Common quarterly dividend was $.18 per share, up from the
January dividend of $.15 per share. The new Common quarterly dividend was
$.15 per share, up from the January quarterly dividend of $.125. The
dividends were both paid on April 22, 1998 to shareholders of record on
April 10, 1998.
5. Earnings per Share:
On December 31, 1997, the Company adopted the Financial Accounting Standards
Board's Statement 128, "Earnings per Share." Statement 128 replaces the
presentation of primary earnings per share (EPS) with basic EPS and fully
diluted EPS with diluted EPS. Basic EPS is computed by dividing net income
by the weighted average number of common shares outstanding for the period.
Diluted EPS is computed by dividing net income by the weighted average
number of common shares and common equivalent shares outstanding for the
period. EPS calculations for March 31, 1997 have been restated to reflect
the adoption of Statement 128.
The following table sets forth the denominator used for basic and diluted
earnings per share for the periods ended March 31, 1998 and 1997:
<TABLE>
<CAPTION>
March 31, March 31,
1998 1997
--------- ---------
<S> <C> <C>
Basic earnings per share -
weighted average shares 3,347,647 3,311,503
Effect of diluted securities:
Stock options issued to
employees and directors 86,296 79,339
--------- ---------
Diluted earnings per share 3,433,943 3,390,842
========= =========
</TABLE>
6. Restatement and Reclassification:
Certain amounts in the March 31, 1997 interim condensed consolidated
financial statements have been reclassified to conform to their 1998
presentation.
11
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Earnings Highlights
- -------------------
Net income for the first quarter of 1998 was $2,078,000 compared with $2,213,000
earned in the first quarter of 1997, a decrease of 6%. Basic earnings per share
for the first quarter of 1998 were $.62 as compared to $.67 for 1997, while
diluted earnings per share were $.61 for 1998 compared with $.65 for 1997.
Core earnings for the first quarter rose 8% to $2,026,000 in 1998 from
$1,879,000 in 1997. Core earnings are calculated by excluding the after-tax
gain from the nonrecurring property sale in 1997 of $340,000 and by excluding
the after-tax gain from securities sales in 1998 of $52,000 and the after-tax
loss from securities sales in 1997 of $6,000. When these nonrecurring items are
excluded, basic earnings per share increased to $.61 for 1998 versus $.57 for
1997, and diluted earnings per share were $.59 in 1998 compared to $.55 in 1997,
up 7%.
Key performance indicators for the 1998 first quarter show a return on average
assets of .99% compared with 1.18% for the 1997 first quarter. For the first
quarter of 1998, the return on average shareholders' equity was 11.61% compared
with 15.36% for the same quarter of 1997.
Net interest income is the difference between interest earned on loans,
investments, and other earning assets and interest paid on deposits and other
interest-bearing liabilities. Net interest income, on a tax-equivalent basis,
decreased $608,000 or 8% from the first quarter of 1997. This decrease is
attributable to a 13% increase in average interest earning assets offset by a
20% decrease in the net interest margin to 3.49% from 4.30% for the same period
last year. The compression of the net interest margin was a result of a change
in the composition of average earning assets due to the sale of the credit card
portfolio and competitive pricing for loans and deposits.
12
<PAGE>
Average balances and effective interest yields and rates on a tax equivalent
basis for the first quarters of 1998 and 1997 were as follows (dollars in
thousands):
<TABLE>
<CAPTION>
1998 1997
------------------------------------------
Average Effective Average Effective
Balance Yield Balance Yield
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Federal funds sold $ 19,708 5.47% $ 14,298 5.29%
Interest-bearing
deposits with banks 10,987 6.82 314 5.24
Investment securities 291,367 6.42 260,276 6.47
Loans 462,074 8.07 419,643 9.18
-------- ---- -------- ----
Total earning assets/
yield $784,136 7.37% $694,531 8.08%
======== ==== ======== ====
Interest-bearing
deposits $497,909 4.92% $487,868 4.78%
Short-term debt 52,823 5.22 55,292 5.04
Long-term debt 55,011 5.77 3,250 5.73
-------- ---- -------- ----
Total interest-bearing
liabilities/cost of
funds $605,743 5.02% $546,410 4.81%
======== ==== ======== ====
Net interest margin 3.49% 4.30%
==== ====
Net interest spread 2.35% 3.27%
==== ====
</TABLE>
Average loans for the first quarter of 1998 grew 10%, or $42 million, in
comparison to the first quarter of 1997, led by indirect auto loans (up $52
million), along with commercial (up $12 million), home equity (up $10 million)
and commercial real estate loans (up $19 million). These increases were
partially offset by a decrease in credit card loans due to the sale of the
portfolio ($54 million). Loan growth since December 31, 1997 of $26 million was
primarily due to indirect auto (up $11 million) and commercial real estate (up
$13 million).
Average interest-bearing liabilities increased $59 million or 11% since the
first quarter of 1997 due primarily to increases in average Federal Home Loan
Bank borrowings and average time deposits. In addition, time deposits increased
$73 million since December 31, 1997 in response to a successful retail deposit
promotion.
Based on management's review of the adequacy of the loan loss reserve, the
Company recorded a provision for loan losses of $60,000 for the first quarter of
1998 compared to $375,000 for the first quarter of 1997. This decrease was due
to a change in the risk characteristics of the loan portfolio due to the sale of
the credit card portfolio.
13
<PAGE>
Total other income increased $473,000 or 34%. Service charges on deposit
accounts increased $91,000 primarily due to an increase in business account
analysis fees. Investment management and trust department fee income decreased
$69,000 principally due to a change in the billing cycle during 1997 which
increased first quarter 1997 trust income. Discretionary assets under investment
management grew $58 million, from $92 million at March 31, 1997 to $150 million
at March 31, 1998. The remaining increase in other operating income was
primarily due to income of $225,000 earned from the revenue sharing agreement on
the sold credit card portfolio and increased merchant credit card processing
fees.
Total other expenses increased $379,000 or 8%, for the first quarter of 1998
compared to 1997. Excluding the gain on the sale of other real estate owned
which was included in other operating expenses in 1997, other expenses decreased
$136,000, or 3%. Salaries and employee benefits increased $305,000 as a result
of normal raises, higher compensation due to competitive market conditions,
additional upgrades and increased staff in the growing areas of the bank. This
increase was offset by the elimination of salaries due to the sale of the credit
card portfolio.
Data processing fees decreased $302,000 primarily as a result of the disposition
of the credit card portfolio.
Other operating expenses decreased $104,000 due primarily to the sale of the
credit card portfolio offset by an increase in merchant interchange expense.
Asset Quality
- -------------
Asset quality remains strong, with nonperforming assets (nonaccrual loans,
renegotiated loans, loans past due 90 days or more and still accruing and other
real estate owned) totaling $347,000 at March 31, 1998. Net charge-offs for the
first quarter of 1998 totaled $498,000 compared to $253,000 in 1997. Included
in the net charge-off amount was a loss sustained during the first quarter of
1998 of $451,000 which involved an overdraft on a commercial deposit account.
The Company's subsidiary is pursuing recovery of this charge-off through
litigation. The allowance for loan losses to total loans was .82% at March 31,
1998 which management believes is an adequate level commensurate with the risks
inherent in the loan portfolio.
14
<PAGE>
The following table summarizes the Company's nonperforming assets (in
thousands):
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
-------------------------
<S> <C> <C>
Nonaccrual $ - $ -
Loans which are past due
90 days or more 347 378
----- -----
Total nonperforming loans 347 378
Other real estate owned - -
----- -----
Total nonperforming assets $ 347 $ 378
===== =====
Nonperforming loans to loans
outstanding .07% .09%
Nonperforming assets to loans
outstanding and other real
estate owned .07% .09%
Allowance for loan losses to
nonperforming loans 11.21x 11.45x
</TABLE>
Capital
- -------
Shareholders' equity remains strong at $73.5 million. The Company and its
subsidiary bank's Tier 1, total risk-based capital and leverage ratios are in
excess of minimum regulatory guidelines and also exceed the FDIC criteria for
"well capitalized" banks. The following table shows the capital ratios of the
Company and its subsidiary bank as of March 31, 1998 and the minimum ratios for
"well capitalized" banks. The Federal regulators exclude the after-tax
unrealized gain/loss on securities available for sale from these ratios.
<TABLE>
<CAPTION>
Well Company Oak Brook
Capitalized Consolidated Bank
--------------------------------------
<S> <C> <C> <C>
Tier 1
Risk-based >6% 13.11% 11.78%
-
Total Capital
Ratio >10% 13.82% 12.50%
-
Tier 1 Capital
leverage >5% 8.16% 7.33%
-
</TABLE>
On January 28, 1997, the Company's Board of Directors authorized a stock
repurchase program allowing the Company to repurchase up to 4%, or approximately
135,000 shares, of its Class A or common stock through mid-1998. On January 27,
1998, the Board of Directors authorized another stock repurchase program. This
program allows the Company to repurchase up to an additional 100,000 shares of
its Class A Common stock over the following 18 months. Repurchases are being
made in the open market or through negotiated transactions from time to time
depending on market
15
<PAGE>
conditions. As of April 30, 1998, a total of 120,496 shares of stock have been
repurchased at an average price of $23.77. The repurchased stock is held as
treasury stock to be used for general corporate purposes.
Liquidity
- ---------
Effective management of balance sheet liquidity is necessary to fund growth in
earning assets and to pay liability maturities, depository customers' withdrawal
requirements and shareholders' dividends.
The Company has numerous sources of liquidity including a significant portfolio
of shorter term assets, readily marketable investment securities, its deposit
base, and access to borrowing arrangements. Available borrowing arrangements
are summarized as follows:
Oak Brook Bank:
Informal Federal funds lines of $63 million with five correspondent banks,
subject to continued good financial standing.
Reverse repurchase agreement lines of $100 million with two brokerage firms,
subject to availability of collateral and continued good financial standing.
Additional advances from the Federal Home Loan Bank of Chicago are available
based on the pledge of specific collateral and FHLB stock ownership.
Parent Company:
Revolving credit arrangement for $5 million. The line was unused at March
31, 1998 and matures on May 1, 1998. It is anticipated to be renewed
annually.
The parent company also had cash, short-term investments, and other readily
marketable securities totaling $7.5 million at March 31, 1998.
16
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
Exhibit (27) Financial Data Schedule
(B) Reports on Form 8-K
None
17
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FIRST OAK BROOK BANCSHARES, INC.
--------------------------------
(Registrant)
Date May 6, 1998 /S/RICHARD M. RIESER, JR.
---------------- ---------------------------------
Richard M. Rieser, Jr.,
President, Assistant
Secretary, and Director
Date May 6, 1998 /S/ROSEMARIE BOUMAN
---------------- ---------------------------------
Rosemarie Bouman,
Vice President, Chief
Financial Officer and
Chief Accounting Officer
18
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND> This schedule contains summary financial information extracted from
SEC Form 10-Q and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1998 DEC-31-1997
<PERIOD-START> JAN-01-1998 JAN-01-1997
<PERIOD-END> MAR-31-1998 MAR-31-1997
<CASH> 47,727 54,270
<INT-BEARING-DEPOSITS> 11,420 319
<FED-FUNDS-SOLD> 40,057 0
<TRADING-ASSETS> 0 0
<INVESTMENTS-HELD-FOR-SALE> 179,258 135,891
<INVESTMENTS-CARRYING> 135,535 125,119
<INVESTMENTS-MARKET> 138,353 125,806
<LOANS> 472,965 422,285
<ALLOWANCE> 3,891 4,231
<TOTAL-ASSETS> 911,558 759,523
<DEPOSITS> 722,630 630,418
<SHORT-TERM> 50,371 59,632
<LIABILITIES-OTHER> 9,103 6,386
<LONG-TERM> 56,000 5,000
<COMMON> 7,282 7,115
0 0
0 0
<OTHER-SE> 66,172 50,972
<TOTAL-LIABILITIES-AND-EQUITY> 911,558 759,523
<INTEREST-LOAN> 9,154 9,462
<INTEREST-INVEST> 4,364 3,884
<INTEREST-OTHER> 451 191
<INTEREST-TOTAL> 13,969 13,537
<INTEREST-DEPOSIT> 6,038 5,748
<INTEREST-EXPENSE> 7,500 6,481
<INTEREST-INCOME-NET> 6,469 7,056
<LOAN-LOSSES> 60 375
<SECURITIES-GAINS> 79 (9)
<EXPENSE-OTHER> 5,374 4,995
<INCOME-PRETAX> 2,910 3,088
<INCOME-PRE-EXTRAORDINARY> 2,910 3,088
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 2,078 2,213
<EPS-PRIMARY> .62 .67
<EPS-DILUTED> .61 .65
<YIELD-ACTUAL> 3.49 4.30
<LOANS-NON> 0 1,268
<LOANS-PAST> 347 441
<LOANS-TROUBLED> 0 0
<LOANS-PROBLEM> 0 0
<ALLOWANCE-OPEN> 4,329 4,109
<CHARGE-OFFS> 587 302
<RECOVERIES> 89 49
<ALLOWANCE-CLOSE> 3,891 4,231
<ALLOWANCE-DOMESTIC> 3,891 4,231
<ALLOWANCE-FOREIGN> 0 0
<ALLOWANCE-UNALLOCATED> 0 0
</TABLE>
