<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995
COMMISSION FILE NO. 0-23854
COLE TAYLOR
FINANCIAL GROUP, INC.
401(K) / PROFIT SHARING PLAN
COLE TAYLOR FINANCIAL GROUP, INC.
350 EAST DUNDEE ROAD, SUITE 300
WHEELING, ILLINOIS 60090-3199
Name of issuer of the securities held pursuant to the plan
and the address of its principal executive office.
Page 1 of 16 pages.
Exhibit Index on page 2.
<PAGE>
FINANCIAL STATEMENTS
- --------------------
ITEMS 1 - 3.
Omitted in accordance with Item 4.
ITEM 4.
The Cole Taylor Financial Group, Inc. 401(k) / Profit Sharing Plan ("Plan") is
subject to the Employee Retirement Income Security Act of 1974, as amended
("ERISA"). In accordance with Item 4 and in lieu of the requirements of Items 1
- - 3, the following Plan financial statements and schedules prepared in
accordance with the financial reporting requirements of ERISA are included
herein:
. Independent Auditors' Report,
. Statements of Net Assets Available for Plan Benefits at December 31, 1995
and 1994,
. Statements of Changes in Net Assets Available for Plan Benefits for the
Years Ended December 31, 1995 and 1994,
. Notes to Financial Statements,
. Supplementary Schedules - 1995
EXHIBITS
- --------
23.1 Consent of KPMG Peat Marwick LLP -- page 18
2
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Trustees
Cole Taylor Financial Group, Inc.
401(k) Profit Sharing Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Cole Taylor Financial Group, Inc. 401(k) Profit Sharing Plan
(the Plan) as of December 31, 1995 and 1994, and the related statements of
changes in net assets available for plan benefits for the years then ended.
These financial statements are the responsibility of the Plan's administrator.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Cole
Taylor Financial Group, Inc. 401(k) Profit Sharing Plan as of December 31, 1995
and 1994, and the changes in net assets available for plan benefits for the
years then ended in conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment and reportable transactions - series and transactions in the same
security are presented for the purpose of additional analysis and are not a
required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedules have been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
/s KPMG PEAT MARWICK LLP
June 14, 1996
3
<PAGE>
COLE TAYLOR FINANCIAL GROUP, INC.
401(k) PROFIT SHARING PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1995 and 1994
<TABLE>
<CAPTION>
=====================================================================================
1995 1994
- -------------------------------------------------------------------------------------
Assets:
<S> <C> <C>
Cash $ 124,147 19,227
Investments, at fair value:
Money market funds 808,385 790,939
Mutual funds 125,567 94,213
Certificates of deposit 239,021 296,882
United States Treasury notes 1,265,877 502,656
United States Government agencies 1,169,069 1,018,133
Corporate obligations 851,128 1,160,374
Common stocks 2,610,348 1,750,234
Collateralized mortgage obligations - 11,267
Cole Taylor Financial Group Common Stock Fund 1,769,168 605,430
Cole Taylor Bank Collective trust funds:
Money Market Fund - 775,876
Balanced Fund 1,182,702 1,104,195
Bond Fund 641,575 438,966
Stock Fund 2,404,710 1,646,690
- -------------------------------------------------------------------------------------
13,191,697 10,215,082
- -------------------------------------------------------------------------------------
Contribution receivables:
Employee 60,687 63,666
Employer 516,524 688,654
- -------------------------------------------------------------------------------------
577,211 752,320
- -------------------------------------------------------------------------------------
Interest receivable 84,537 78,698
Other (payables) receivables (3,328) 4,364
- -------------------------------------------------------------------------------------
Net assets available for plan benefits $13,850,117 11,050,464
=====================================================================================
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
COLE TAYLOR FINANCIAL GROUP, INC.
401(k) PROFIT SHARING PLAN
Statements of Changes in Net Assets Available for Plan Benefits
Years ended December 31, 1995 and 1994
<TABLE>
<CAPTION>
=====================================================================================
1995 1994
- -------------------------------------------------------------------------------------
<S> <C> <C>
Additions:
Net appreciation (depreciation) in fair value of
general trust fund investments $ 737,620 (446,718)
Net investment gain from collective trust funds 1,155,071 15,006
Interest and dividend income 383,782 330,389
Employer contributions 1,010,377 831,132
Employee contributions 1,402,248 1,430,109
- -------------------------------------------------------------------------------------
Total additions 4,689,098 2,159,918
Deductions - payments to participants (1,889,445) (2,363,319)
- -------------------------------------------------------------------------------------
Net increase (decrease) in net assets available for
plan benefits 2,799,653 (203,401)
Net assets available for plan benefits:
Beginning of year 11,050,464 11,253,865
- -------------------------------------------------------------------------------------
End of year $13,850,117 11,050,464
=====================================================================================
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
COLE TAYLOR FINANCIAL GROUP, INC.
401(K) PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 1995 and 1994
===============================================================================
(1) Description of Plan
The following description of the Cole Taylor Financial Group, Inc. 401(k)
Profit Sharing Plan (Plan) provides only general information about the
Plan. Participants should refer to the plan document for a more complete
description of the Plan's provisions.
Participating Employers
The participating employers in the Plan are Cole Taylor Financial Group,
Inc., Cole Taylor Bank, CT Mortgage, and Cole Taylor Finance Co. and
Subsidiaries. Collectively, the aforementioned are known as the Cole Taylor
Financial Group, Inc. (the Company).
General
The Plan is a defined contribution plan covering all employees of the
Company who have completed six months of continuous service during which
they have completed 500 hours of service, as defined in the Plan, and are
at least 21 years old. It is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA) as amended. All Plan
expenses are paid by the Company.
Contributions
Each year, participants may contribute up to 15% of pre-tax annual
compensation subject to Internal Revenue Service limitations. Participants
may also contribute amounts representing distributions from other qualified
defined benefit or contributions plans including Flex Contributions which
are defined as excess employee welfare benefit plan credits not used.
Commencing October 1, 1994, the Company has contributed 100% of the first
1% (Employer Base Matching Contributions) and 50% of the next 2% to 6% of
compensation (Employer Excess Matching Contribution) that a participant
contributes to the Plan. Additional amounts may be contributed at the
discretion of the Company's board of directors. These employer
contributions are invested in the fund designated by the participant's
direction.
Participants' Accounts
Each participant's account is credited with the participant's contribution
and allocations of (a) the Company's contribution and (b) Plan earnings.
Allocations of contributions are based on participants' eligible
compensation. Plan earnings are allocated based on participants' account
balances in the respective funds. The benefit to which a participant is
entitled is the benefit that can be provided from the participant's
account.
(Continued)
6
<PAGE>
COLE TAYLOR FINANCIAL GROUP, INC.
401(k) PROFIT SHARING PLAN
Notes to Financial Statements
- --------------------------------------------------------------------------------
Forfeitures of terminated participants' noninvested account balances are
used by the Company as a credit toward the Employer Matching Contributions,
Employer Base Contributions, or Employer Excess Contributions and allocated
as such.
Vesting
Participants are immediately vested in their voluntary pre-tax
contributions, Employer Base Matching Contributions, and Employer Base
Contributions plus actual earnings thereon. Participants vest in their
Employer Excess Matching Contributions and Employer Excess Contributions
plus actual earnings thereon in accordance with the following schedule:
<TABLE>
<CAPTION>
===============================================================================
Number of completed Vested
years of service percentage
- -------------------------------------------------------------------------------
<S> <C>
Less than one year 0%
One year but less than two years 20
Two years but less than three years 40
Three years but less than four years 60
Four years but less than five years 80
Five years or more 100
===============================================================================
</TABLE>
Participants also become fully vested upon their attainment of age 65,
permanent disability or death.
Investment Options
Upon enrollment in the Plan, a participant may direct employee
contributions in 10% increments in any of the following investment options:
Money Market Fund - Funds are invested in money market instruments issued
by the U.S. Government and large corporations.
Bond Fund - Funds are invested primarily in bonds issued by the U.S.
Government and large corporations.
Balanced Fund - Funds are invested in both corporate or government bonds
and common stocks.
Equity Fund - Funds are invested primarily in common stocks.
(Continued)
7
<PAGE>
COLE TAYLOR FINANCIAL GROUP, INC.
401(k) PROFIT SHARING PLAN
Notes to Financial Statements
===============================================================================
Beginning in October of 1994, upon enrollment in the Plan, participants may
also direct employee contributions in 10% increments in the:
Company Stock Fund - Funds are invested in Cole
Taylor Financial Group, Inc. common stock.
Participants may change their investment options quarterly.
Payment of Benefits
On termination of service, death, disability or retirement, participants
with a vested account balance of less than $3,500 will receive a single
lump-sum distribution. Participants with a vested account balance in excess
of $3,500 may elect to defer receipt of the lump-sum distribution to a
later date.
Drovers Transfer Fund
Participants' account balances transferred from a Cole Taylor Bank
predecessor plan were credited to the Drovers Transfer Fund. The related
transferred assets are invested in certificates of deposit, issued by Cole
Taylor Bank, which earn interest at the greater of 9-1/2% or a floating
rate tied to average treasury bill rates. Participants with Drovers
Transfer Fund account balances can elect to have their account balances
transferred to the General Trust Fund each January. Participants in Drovers
Transfer Fund are fully vested and may be paid in the form of an annuity or
a lump-sum distribution subject to provisions in the Plan.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements of the Plan have been prepared on the
accrual basis.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make certain
estimates and assumptions that affect the reported amounts of net assets
available for plan benefits at the date of the financial statements and the
reported amounts of changes in net assets available for plan benefits
during the reported period. Actual results may differ from those estimates.
Investments
The Plan's investments are stated at quoted market prices except for
certificates of deposit which are stated at principal plus capitalized
interest which approximates fair value. Unrealized gains or losses on
investments are recorded currently in the accounts of the Plan.
The Plan presents, in the statements of changes in net assets, the net
appreciation (depreciation) in the fair value of its general trust fund
investments which consists of the realized gains or losses and the
unrealized appreciation (depreciation) on those investments. The Plan also
presents in the statements of changes in net assets, the net investment
gain from the collective trust funds which consists of the realized and
unrealized appreciation (depreciation) on those investments, dividend
income and interest income.
(Continued)
8
<PAGE>
COLE TAYLOR FINANCIAL GROUP, INC.
401(k) PROFIT SHARING PLAN
Notes to Financial Statements
================================================================================
Plan Termination
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of Plan
termination, participants will become 100% vested in their accounts and
shall be entitled to a distribution of their accounts.
Tax Status
The Plan had received an original favorable determination letter from the
Internal Revenue Service dated, March 17, 1986, indicating the Plan is
qualified under Section 401(a) of the Internal Revenue Code and therefore
the Trust, forming a part of the Plan, is exempt from Federal income taxes
under Section 501(a) of the Internal Revenue Code.
The Plan has been amended since receiving the determination letter and
received a favorable determination on the proposed amendments in a letter
dated April 3, 1995.
The Plan administrator is not aware of any activity or transactions that
may adversely affect the qualified status of the Plan.
Reclassifications
Certain 1994 items have been reclassified to conform to the 1995
presentation.
(3) INVESTMENTS
The Plan's investments are held by a bank-administered trust fund.
Investments that represent 5% or more of total plan assets at December 31,
1995 and 1994 are as follows:
<TABLE>
<CAPTION>
================================================================================
1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
Money Market Funds $ 808,385 790,939
Cole Taylor Bank Collective Money Market Fund - 775,876
Cole Taylor Bank Collective Balanced Fund 1,182,702 1,104,195
Cole Taylor Bank Collective Stock Fund 2,404,710 1,646,690
Cole Taylor Financial Group Common Stock Fund l,769,168 605,430
================================================================================
</TABLE>
(Continued)
9
<PAGE>
COLE TAYLOR FINANCIAL GROUP, INC.
401(k) PROFIT SHARING PLAN
Notes to Financial Statements
================================================================================
The following table presents the net appreciation (depreciation)
in the fair values of the investments for the year ended December 31, 1995
and 1994:
<TABLE>
<CAPTION>
================================================================================
1995 1994
-------------------------------------------------------------------------------
<S> <C> <C>
Mutual funds $ 23,901 (8,922)
U.S. Treasury notes 29,086 (44,953)
U.S. Government agencies 48,210 (96,773)
Corporate obligations 144,252 (141,404)
Common stocks 491,660 (153,810)
Collateralized mortgage obligations 511 (856)
-------------------------------------------------------------------------------
$ 737,620 (446,718)
================================================================================
</TABLE>
(4) TRANSACTIONS WITH RELATED-PARTIES
The Company acts as the Plan trustee and is custodian of all the Plan's
assets. At December 31, 1995 and 1994 the Plan held certificates of deposit
issued by the Company totaling $239,021 and $296,882, respectively and
interest earned thereon during the years then ended totaled $27,275 and
$32,813, respectively, $5,714 and $7,109 of which was receivable,
respectively, at year end.
The Company and its employees collectively own 71%, 99%, and 40% of the net
assets of the Stock, Balanced, and Fixed Income Collective Trust Investment
Funds, respectively, at December 31, 1995. The Company and its employees
collectively owned 82%, 97%, 46%, and 100% of the net assets of the Stock,
Balanced, Fixed Income, and Money Market Collective Trust Investment Funds
at December 31, 1994.
At December 31, 1995 the Plan held 59,219 shares of common stock of the
Company totaling $1,769,168. At December 31, 1994, the Plan held 28,830
shares of common stock of the Company totaling $605,430. Dividends earned
during the years then ended totaled $15,174 and $1,441, respectively, of
which $4,145 and $1,441 was receivable in other (payables) receivables at
year end.
(5) SUBSEQUENT EVENT/DEFINITIVE AGREEMENT
On June 13, 1996, the Company announced a transaction whereby Cole Taylor
Bank, one of the participating employers in the Plan, would be split-off
from the Company to one of the Company's largest shareholders, the Taylor
Family. Upon consummation of the transaction the operations of the Company
and Cole Taylor Bank would be entirely separate and under different
ownership. This transaction may result in information of material interest
to participants in the Plan. Such information would be disclosed as details
become available. Management is unable to determine the impact of the
announced transaction to the Plan.
(Continued)
10
<PAGE>
COLE TAYLOR FINANCIAL GROUP, INC.
401(k) PROFIT SHARING PLAN
Notes to Financial Statements
- --------------------------------------------------------------------------------
(6) Separate Fund Information
The following tables present information regarding the net assets available
for plan benefits and the changes in net assets available for plan benefits
by investment fund as of and for the years ended December 31, 1995 and
1994.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 31, 1995
Participant directed
------------------------------------------------------------
Non-
participant
Money Company Directed Drovers
Market Balanced Bond Equity Stock General Transfer
Fund Fund Fund Fund Fund Trust Fund Fund Total
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Cash $ - 33,467 12,966 77,624 90 - - 124,147
Investments:
Money market funds 774,080 - - - - 34,305 - 808,385
Mutual funds - - - - - 125,567 - 125,567
Certificates of deposit - - - - - - 239,021 239,021
United States Treasury
notes - - - - - 1,265,877 1,265,877
United States Government
agencies - - - - - 1,169,069 - 1,169,069
Corporate obligations - - - - - 851,128 - 851,128
Common stocks - - - - - 2,610,348 - 2,610,348
Cole Taylor Financial
Group Common
Stock Fund - - - - 1,769,168 - - 1,769,168
Cole Taylor Bank Collective
trust funds:
Balanced Fund - 1,182,702 - - - - - 1,182,702
Bond Fund - - 641,575 - - - - 641,575
Stock Fund - - - 2,404,710 - - - 2,404,710
Employee contributions
receivable 9,458 11,514 3,452 22,920 13,343 - - 60,687
Employer contributions
receivable 15,589 24,419 10,141 56,272 32,703 377,400 - 516,524
Interest receivable 3,483 81 71 198 85 74,905 5,714 84,537
Other (payables)
receivables (1,735) (482) (587) 866 1,588 (2,978) - (3,328)
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $ 800,875 1,251,701 667,618 2,562,590 1,816,977 6,505,621 244,735 13,850,117
===================================================================================================================================
</TABLE>
(Continued)
11
<PAGE>
COLE TAYLOR FINANCIAL GROUP, INC.
401(k) PROFIT SHARING PLAN
Notes to Financial Statements
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Year ended December 31, 1995
Participant directed
---------------------------------------------------------
Non-
participant
Money Company Directed Drovers
Market Balanced Bond Equity Stock General Transfer
Fund Fund Fund Fund Fund Trust Fund Fund Total
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Assets transferred to (from)
other fund $(62,537) (39,678) 73,133 (105,194) 124,345 89,706 (79,775)
Net appreciation in fair
value of general trust fund
investments - - - - - 737,620 - 737,620
Net investment gain
from collective trust funds 186,094 60,660 350,079 558,238 - - 1,155,071
Interest and dividend income 45,650 1,216 521 2,590 16,762 289,768 27,275 383,782
Employer contributions 81,404 139,156 43,538 241,631 127,248 377,400 - 1,010,377
Employee contributions 153,854 222,901 102,041 594,053 329,399 - - 1,402,248
- -------------------------------------------------------------------------------------------------------------------------------
Total additions 218,371 509,689 279,893 1,083,159 1,155,992 1,494,494 (52,500) 4,689,098
Deductions -- payments to
participants (170,218) (361,798) (68,266) (305,461) (83,644) (893,302) (6,756) (1,889,445)
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits 48,153 147,891 211,627 777,698 1,072,348 601,192 (59,256) 2,799,653
Net assets available for
plan benefits:
Beginning of year 752,722 1,103,810 455,991 1,784,892 744,629 5,904,429 303,991 11,050,464
- -------------------------------------------------------------------------------------------------------------------------------
End of year $ 800,875 1,251,701 667,618 2,562,590 1,816,977 6,505,621 244,735 13,850,117
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(Continued)
12
<PAGE>
COLE TAYLOR FINANCIAL GROUP, INC.
401(k) PROFIT SHARING PLAN
Notes to Financial Statements
<TABLE>
<CAPTION>
===================================================================================================================================
December 31, 1994
Participant directed
-------------------------------------------------------------
Non-
participant
Money Company Directed Drovers
Market Balanced Bond Equity Stock General Transfer
Fund Fund Fund Fund Fund Trust Fund Fund Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Cash $(24,568) (46,261) (5,874) (253) 96,183 - - 19,227
Investments:
Money market funds - - - - - 790,939 - 790,939
Mutual funds - - - - - 94,213 - 94,213
Certificates of deposit - - - - - - 296,882 296,882
United States Treasury
notes - - - - - 502,656 - 502,656
United States Government
agencies - - - - - 1,018,133 - 1,018,133
Corporate obligations - - - - - 1,160,374 - 1,160,374
Common stocks - - - - - 1,750,234 - 1,750,234
Collateralized mortgage
obligations - - - - - 11,267 - 11,267
Cole Taylor Financial
Group Common Stock Fund - - - - 605,430 - - 605,430
Cole Taylor Bank Collective
trust funds:
Money Market Fund 775,876 - - - - - - 775,876
Balanced Fund - 1, 104,195 - - - - - 1,104,195
Bond Fund - 438,966 - - - - 438,966
Stock Fund - - - 1,646,690 - - - 1,646,690
Employee contributions
receivable 11,911 12,800 4,108 23,964 10,883 - - 63,666
Employer contributions
receivable 21,917 37,835 15,006 80,249 17,531 516,116 - 68,654
Interest receivable 93 63 18 118 1,576 69,721 7,109 78,698
Other (payables)
receivables (32,507) (4,822) 3,767 34,124 13,026 (9,224) - 4,364
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $752,722 1,103,810 455,991 1,784,892 744,629 5,904,429 303,991 11,050,464
===================================================================================================================================
</TABLE>
(Continued)
13
<PAGE>
COLE TAYLOR FINANCIAL GROUP, INC.
401(k) PROFIT SHARING PLAN
Notes to Financial Statements
<TABLE>
<CAPTION>
================================================================================================================================
Year ended December 31, 1994
Participant directed
--------------------------------------------------------
Non-
participant
Money Company Directed Drovers
Market Balanced Bond Equity Stock General Transfer
Fund Fund Fund Fund Fund Trust Fund Fund Total
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Assets transferred to (from)
other fund $ 27,598 (207,708) (54,753) (71,207) 571,871 (21,831) (243,970) -
Net depreciation in fair
value of general trust fund
investments - - - - - (446,718) - (446,718)
Net investment gain (loss)
from collective trust funds - (32,368) (746) (1,235) 49,355 - - 15,006
interest and dividend income 23,657 (3,191) (2,996) 1,751 2,526 275,829 32,813 330,389
Employer contributions 54,010 51,421 30,838 159,988 18,758 516,117 - 831,132
Employee contributions 201,174 375,445 118,972 632,399 102,119 - - 1,430,109
- -----------------------------------------------------------------------------------------------------------------------------
Total additions 306,439 183,599 91,315 721,696 744,629 323,397 (211,157) 2,159,918
Deductions - payments to
participants (97,822) (62,051) (10,777) (196,934) - (1,960,914) (34,821) (2,363,319)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits 208,617 121,548 80,538 524,762 744,629 (1,637,517) (245,978) (203,401)
Net assets available for
plan benefits:
Beginning of year 544,105 982,262 375,453 1,260,130 - 7,541,946 549,969 11,253,865
- -----------------------------------------------------------------------------------------------------------------------------
End of Year $752,722 1,103,810 455,991 1,784,892 744,629 5,904,429 303,991 11,050,464
=============================================================================================================================
</TABLE>
14
<PAGE>
Schedule I
----------
COLE TAYLOR FINANCIAL GROUP, INC.
401(k) PROFIT SHARING PLAN
Assets Held for Investment
December 31, 1995
<TABLE>
<CAPTION>
====================================================================================================================================
b. c. d. e.
a. Identity of issue Description Cost Fair value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash Cash $ 124,147 124,147
Federated Master Trust Money Market Funds 808,385 808,385
Rowe (T. Price) Small-Cap Value Fund Mutual Fund - 7,596 shares 87,190 125,567
* Cole Taylor Bank CDs - ** 239,021 239,021
U.S. Treasury note Note - par $250,000 due 10/15/96, 8.00% 246,406 255,156
U.S. Treasury note Note - par $250,000 due 01/15/97, 8.00% 261,875 256,875
U.S. Treasury note Note - par $325,000 due 1/15/00, 6.375% 328,250 336,781
U.S. Treasury note Note - par $340,000 due 7/31/00, 6.125% 340,112 350,093
U.S. Treasury note Note - par $65,000 due 9/30/00, 6.125% 65,771 66,970
Twelve Federal Land Banks Government agency note - par $300,000 due 01/20/97, 7.35% 306,750 306,469
Federal National Mortgage Association Government agency note - par $250,000 due 05/11/98, 8.15% 250,820 265,078
Federal National Mortgage Assn. MTN Government agency note - par $350,000 due 2/12/98, 5.740% 338,688 350,000
Federal Farm Credit Bank Government agency note - par $85,000 due 3/l/99, 5.79% 84,150 84,920
Federal Home Loan Bank MTN Government agency note - par $35,000 due 11/20/00, 6.53% 35,175 35,492
Student Loan Mortgage Association Government agency note - par $125,000 due 08/01/99, 6.00% 123,611 127,109
MCI Communications Corporate obligation - par $100,000 due 03/23/99, 6.25% 97,414 101,750
Ford Motor Company Corporate obligation - par $100,000 due 01/01/00, 5.93% 100,000 99,300
General Motors Corporation Corporate obligation - par $250,000 due 06/15/03, 7.00% 248,528 260,860
Phillip Morris Co., Inc. Corporate obligation - par $100,000 due 10/01/04, 7.125% 99,869 105,563
Wal-Mart Stores Inc. Corporate obligation - par $100,000 due 10/01/99, 6.125% 96,279 101,438
Warner Lambert Co. Corporate obligation - par $175,000 due 09/15/02, 6.625% 173,706 182,219
RJR Nabisco Holdings Corp. PFD Preferred stock - 2,000 shares 13,000 12,750
Alco Standard Common stock - 2,200 shares 59,545 100,375
Amoco Corporation Common stock - 1,375 shares 87,162 98,312
Citicorp Common stock - l,600 shares 95,360 107,600
AT&T Common stock - 1,425 shares 83,260 92,269
Johnson and Johnson Common stock - 1,400 shares 99,190 119,700
Marriott International Common stock - 2,700 shares 96,457 103,275
MBNA Corp. Common stock - 2,425 shares 71,031 89,422
First Data Corp. Common stock - 1,600 shares 52,935 107,000
ADC Telecommunications Inc. Common stock - 2,900 shares 55,236 105,850
International Business Machines Common stock - 900 shares 68,695 82,238
Merck & Co., Inc. Common stock - 1,900 shares 96,378 124,688
Health Management Associates Common stock - 4,218 shares 40,118 110,195
Hewlett Packard Co. Common stock - 1,000 shares 62,300 83,750
Eastman-Kodak Co. Common stock - 700 shares 48,370 46,900
Compaq Computer Corp. Common stock - 2,050 shares 99,936 98,400
Minnesota Mining and Mfg. Common stock - 1,050 shares 60,349 69,694
Illinois Tool Works, Inc. Common stock - 1,550 shares 52,553 91,450
Integrated Health Services Common stock - 1,450 shares 38,656 36,250
International Paper Co. Common stock - 2,000 shares 80,733 75,750
Microsoft Corp. Common stock - 1,100 shares 60,335 96,525
Morton International, Inc. Common stock - 1,350 shares 40,973 48,431
Motorola Inc. Common stock - 1,400 shares 30,056 79,800
Norwest Corp. Common stock - 2,875 shares 57,783 94,875
Olsten Corp. Common stock - 2,300 shares 79,435 90,850
Pep Boys Manny Moe & Jack Common stock - 1,900 shares 48,677 48,688
PepsiCo, Inc. Common stock - 1,825 shares 87,122 101,972
Norfolk Southern Corp. Common stock - 1,175 shares 75,489 93,266
Procter & Gamble Co. Common stock - 1,225 shares 77,527 101,675
Sara Lee Corp. Common stock - 3,075 shares 86,623 98,400
* Cole Taylor Bank:
Collective Balanced Fund 102,228 units 1,020,035 1,182,702
Collective Bond Fund 58,404 units 590,633 641,574
Collective Stock Fund 192,380 units 2,041,978 2,404,710
* Cole Taylor Financial
Group Common Stock Fund Common stock - 59,219 shares 1,181,269 1,769,168
- ------------------------------------------------------------------------------------------------------------------------------------
$ 11,295,346 13,191,697
====================================================================================================================================
</TABLE>
* Indicates party-in-interest to the Plan.
** The greater of 9-1/2% or a floating rate tied to average treasury bill
rates. Expires the last day of any calendar quarter of any year upon proper
notice or December 31, 2031, whichever comes first.
See accompanying independent auditors' report
15
<PAGE>
Schedule II
-----------
COLE TAYLOR FINANCIAL GROUP, INC.
401(k) PROFIT SHARING PLAN
Schedule of Reportable Transactions - Series and Transactions in the
Same Security
Year ended December 31, 1995
<TABLE>
<CAPTION>
==================================================================================================================================
(h)
(f) Current
(b) Expense value of
(a) Description of asset (c) (d) (e) incurred (g) asset on (i)
Identity of (include interest rate and Purchase Selling Lease with Cost transaction Net gain
party involved maturity in case of a loan) price price rental transaction of asset date (loss)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
* Money Market Fund Collective Money Market
Fund units $ - 835,780 - - 835,780 - -
* Equity Fund Collective Stock Fund
units 779,535 - - - - 779,535 -
* Company Stock Fund Cole Taylor Financial
Group, Inc. Common Stock 746,159 - - - - 746,159 -
* General Trust Fund Federated Master Trust 2,218,680 - - - - 2,218,680 -
* General Trust Fund Federated Master Trust - 2,975,315 - - 2,975,315 - -
* Company Stock Fund Federated Master Trust - 759,797 - - 759,797 - -
* Money Market Fund Federated Master Trust 862,009 - - - - 862,009 -
* Equity Fund Federated Master Trust 1,245,568 - - - - 1,245,568 -
* Equity Fund Federated Master Trust - 1,167,944 - - 1,167,944 - -
==================================================================================================================================
</TABLE>
* Indicates party-in-interest to the Plan.
See accompanying independent auditors' report.
16
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Trustees of the Cole Taylor Financial Group, Inc. 401(k) / Profit Sharing Plan
have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
Cole Taylor Financial Group, Inc.
401(k) / Profit Sharing Plan
Date: June 28, 1996 By: /s/ J. Christopher Alstrin
-----------------------------
J. Christopher Alstrin
Chief Financial Officer
17
<PAGE>
EXHIBIT 23.1
CONSENT OF KPMG PEAT MARWICK LLP
--------------------------------
The Board of Directors
Cole Taylor Financial Group, Inc.
We consent to incorporation by reference in the registration statements on Form
S-8 (Registration Statement Numbers 33-86798 and 33-84432), of Cole Taylor
Financial Group, Inc. of our report dated June 14, 1996, relating to the
statements of net assets available for plan benefits of the Cole Taylor
Financial Group, Inc. 401(k) Profit Sharing Plan as of December 31, 1995 and
1994, and the related statements of changes in net assets available for plan
benefits for the years then ended, which report appears in the December 31,
1995, annual report on Form 11-K of the Cole Taylor Financial Group, Inc. 401(k)
Profit Sharing Plan.
/s/ KPMG PEAT MARWICK LLP
June 26, 1996
Chicago, Illinois
18
