UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2000
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Commission file number 0-133312
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FIRST LIBERTY BANK CORP.
(Exact name of registrant issuer as specified in its charter)
Pennsylvania 23-2275242
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
645 Washington Avenue; P.O. Box 39; Jermyn Pennsylvania 18433-0039
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(Address of principal executive offices) (Zip Code)
Issuer's telephone number 570-876-6500
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Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act of 1934 during the past 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 __
-
State the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at September 30, 2000
----- ---------------------------------
Common stock, $.31 par value 6,429,460
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FIRST LIBERTY BANK CORP. AND SUBSIDIARIES
FORM 10-Q
QUARTER ENDED SEPTEMBER 30, 2000
INDEX
Page
PART 1 - FINANCIAL INFORMATION Page
ITEM 1. FINANCIAL STATEMENTS:
Consolidated Balance Sheets - September 30, 2000 (unaudited) and
December 31, 1999 1
Consolidated Statements of Income - Three Months and Nine Months
Ended September 30, 2000 and 1999 (unaudited) 2
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2000 and 1999 (unaudited) 3
Notes to Consolidated Financial Statements 4
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 6
ITEM 3. Quantitative and Qualitative Disclosures
About Market Risk 11
PART II - OTHER INFORMATION 12
SIGNATURES 13
2
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PART I. FINANCIAL INFORMATION
Item I. Financial Statements
FIRST LIBERTY BANK CORP. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands of dollars, except per share information)
<TABLE>
<S> <C> <C>
--------------------------------------------------------------------------------------------------------------
September 30, December 31,
Assets 2000 1999
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(unaudited)
Cash and due from banks $ 14,243 26,023
Securities available for sale 169,266 185,908
Loans, gross 435,112 417,249
Less: Unearned discount and origination fees (633) (699)
Allowance for loan losses (5,493) (5,107)
---------------------------------------------------------------------------------------------------------
Loans, net 428,986 411,443
Accrued interest receivable 4,223 3,397
Bank premises, leasehold improvements and furniture and equipment -net 14,326 14,431
Real estate owned other than bank premises, repossessed assets 465 558
Other assets 15,152 11,515
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Total assets $ 646,661 653,275
=========================================================================================================
Liabilities
---------------------------------------------------------------------------------------------------------
Deposits:
Noninterest-bearing demand $ 54,641 49,502
Interest-bearing 442,321 434,944
---------------------------------------------------------------------------------------------------------
Total deposits 496,962 484,446
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Other borrowed money 10,491 75,567
Federal funds purchased 75,890 32,450
Accrued interest payable 2,595 2,040
Other liabilities 571 1,555
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Total liabilities 586,509 596,058
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Shareholders' Equity
Common stock, $.31 par value, authorized 10,000,000 shares; 2,009 2,009
Issued 6,429,460 and 6,427,804 respectively shares
Surplus 6,121 6,107
Retained earnings 55,439 53,790
Accumulated other comprehensive income (loss) (3,221) (4,493)
Less treasury stock-at cost (60,820 shares) (196) (196)
---------------------------------------------------------------------------------------------------------
Total shareholders' equity 60,152 57,217
---------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $ 646,661 653,275
=========================================================================================================
</TABLE>
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FIRST LIBERTY BANK CORP. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands of dollas, except per share information)
(unaudited)
<TABLE>
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------
Three months Nine months
Ended September 30 Ended September 30
2000 1999 2000 1999
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Interest income:
Interest and fees on loans $ 8,557 7,782 25,015 22,704
Interest on interest bearing deposits 6 11 19 433
Interest and dividends on securities:
Taxable 2,245 2,467 6,906 6,765
Exempt from Federal Taxes 376 504 1,174 1,705
Interest on federal funds sold -- -- -- 72
--------------------------------------------------------------------------------------------------------------------------
Total interest income 11,184 10,764 33,114 31,679
--------------------------------------------------------------------------------------------------------------------------
Interest expense:
Deposits 5,111 4,800 14,649 14,371
Fed Funds Purchased 1,067 111 1,878 114
Capitalized lease obligations and borrowed funds 265 709 2,238 2,108
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Total interest expense 6,443 5,620 18,765 16,593
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Net interest income 4,741 5,144 14,349 15,086
Provision for loan losses 180 180 540 540
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Net interest income after provision for loan losses 4,561 4,964 13,809 14,546
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Noninterest income:
Service charges and fees 188 169 516 513
Gains on sale of securities -- 138 53 225
Trust 178 155 522 492
Other 202 237 479 530
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Total noninterest income 568 699 1,570 1,760
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Noninterest expense:
Salaries and benefits 2,001 1,837 5,912 5,380
Net occupancy and furniture/equipment expenses 648 625 1,941 1,794
Data processing services 83 66 156 262
Foreclosure and other real estate expense 21 (6) 42 53
Other expenses 875 1,019 2,521 2,788
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Total noninterest expense 3,628 3,541 10,572 10,277
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Income before federal income tax provision 1,501 2,122 4,807 6,029
Income tax provision 331 430 1,056 1,280
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Net income 1,170 1,692 3,751 4,749
--------------------------------------------------------------------------------------------------------------------------
Other comprehensive income net of tax
Unrealized gains on securities:
Unrealized holding (loss)/gain arising during the period 1,097 (870) 1,307 (3,887)
Reclassification adjustment for gains included
in net income --- (91) (35) (149)
Comprehensive income $ 2,267 731 5,023 713
==========================================================================================================================
Per share information
Net income-basic .18 .27 .59 .75
Net income-diluted .18 .26 .59 .74
</TABLE>
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FIRST LIBERTY BANK CORP. AND SUBSIDIARIES
Consolidated Statements of Cash Flows (unaudited)
(In thousands of dollars)
<TABLE>
<S> <C> <C>
--------------------------------------------------------------------------------------------------------
Nine months ended September 30
2000 1999
---- ----
--------------------------------------------------------------------------------------------------------
Operating activities:
Net income 3,751 4,749
Adjustments to reconcile net income to net cash provided by
operating activities :
Gains on sales of securities (53) (225)
Provision for loan losses 540 540
Depreciation and amortization of investment securities, bank
premises, leasehold improvements and furniture and equipment 969 812
Increase in interest receivable and other assets (5,118) (1,387)
Decrease in interest payable and other liabilities (429) (182)
--------------------------------------------------------------------------------------------------------
Net cash (used) provided by operating activities (340) 4,307
--------------------------------------------------------------------------------------------------------
Investing activities:
Proceeds from maturities and paydowns of securities 13,278 50,979
Purchases of securities available for sale --- (72,540)
Proceeds from sales of securities available for sale 5,344 20,215
Net increase in loans (18,372) (36,959)
Purchases of bank premises, leasehold improvements and (864) (3,423)
Furniture and equipment-net
Sales of assets acquired through foreclosure, net 382 629
--------------------------------------------------------------------------------------------------------
Net cash used by investing activities (232) (41,099)
--------------------------------------------------------------------------------------------------------
Financing activities:
Net increase in deposits 12,516 12,389
Net increase in Fed Funds Purchased 43,440 21,500
Principal payments on capitalized lease obligation (76) (69)
Repay Borrowed funds (65,000) (5,000)
Proceeds of stock issued thru exercise options 14 154
Dividends paid (2,102) (1,272)
--------------------------------------------------------------------------------------------------------
Net cash (used) provided by financing activities (11,208) 27,702
--------------------------------------------------------------------------------------------------------
Decrease in cash and cash equivalents (11,780) (9,090)
Cash and cash equivalents at beginning of period 26,023 25,628
--------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period 14,243 16,538
========================================================================================================
Cash paid during the period:
Interest $ 18,210 16,467
Federal Income Taxes 1,362 1,227
Noncash transactions:
Net unrealized gain (loss) on securities available for sale, net of tax $ 1,272 (4,036)
Transfers of loans to real estate owned other than bank premise 289 712
========================================================================================================
</TABLE>
3
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FIRST LIBERTY BANK CORP. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (unaudited)
------------------------------------------------------------------------------
(1) Summary of Significant Accounting Policies
Basis of Financial Statement Presentation
The accompanying consolidated financial statements of First Liberty Bank Corp.
and subsidiaries (the Company) were prepared in accordance with instructions to
Form 10-Q, and therefore, do not include information or footnotes necessary for
a complete presentation of financial position, results of operations and cash
flows in conformity with generally accepted accounting principles. However, all
normal, recurring adjustments which, in the opinion of management, are necessary
for a fair presentation of the financial statements, have been included. These
financial statements should be read in conjunction with the audited financial
statements and the notes thereto included in the Company's Annual Report for the
period ended December 31, 1999. The results for the nine months ended September
30, 2000 are not necessarily indicative of the results that may be expected for
the year ended December 31, 2000.
Business
The Company's principal subsidiary, First Liberty Bank & Trust (the Bank),
conducts business from its branch bank system located in Lackawanna and Luzerne
Counties, Pennsylvania. The Bank is subject to competition from other financial
institutions and other companies which provide financial services. The Bank is
subject to the regulations of certain federal and state agencies and undergoes
periodic examinations by those regulatory authorities.
Principles of Consolidation
On February 16, 1999, the Company merged its two principal subsidiaries , The
First National Bank of Jermyn and NBO National Bank, under the name First
Liberty Bank & Trust. Concurrent with this merger, the Company converted the
charter of the Bank to a State chartered commercial bank subject to regulation
by the Pennsylvania Department of Banking and the Federal Reserve Bank.
The consolidated financial statements include the accounts of all of the
Company's wholly- owned subsidiaries. All significant intercompany transactions
have been eliminated in consolidation. Additionally, certain reclassifications
have been made in order to conform with the current year's presentation. The
accompanying consolidated financial statements have been prepared on an accrual
basis.
4
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(2) Earnings Per Share
Basic earnings per share were computed based on the weighted average number of
shares outstanding during each period. Diluted earnings per share include the
dilutive effect of the Company's weighted average stock options outstanding
using the Treasury Stock method.
The following table sets forth the computation of basic and diluted earnings per
share (in thousands)
<TABLE>
<S> <C> <C>
3 months ended September 30 9 months ended September30
2000 1999 2000 1999
---- ---- ---- ----
Numerator:
Net Income $ 1,170 $ 1,692 $ 3,751 $ 4,749
Denominator:
Denominator for basic
earnings per weighted
average shares 6,369 6,364 6,368 6,360
Effect of dilutive securities:
Employee Stock options 21 44 27 48
------ ------ ------ ------
Denominator for diluted earnings 6,390 6,408 6,395 6,408
per share adjusted weighted
average shares and assumed
exercise of stock options
Basic earnings per share .18 .27 .59 .75
Diluted earnings per share .18 .26 .59 .74
</TABLE>
5
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Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Overview
The Company's net income for the nine months ended September 30, 2000 was $3.8
million or $.59 per diluted share compared to $4.7 million and $.74 per diluted
share for the same nine-months period in the preceding year. The decrease in net
income was primarily attributable to a decrease in net interest income, combined
with an increase in noninterest expense.
The Company recorded an annualized return on average assets of .63 % for the
nine-month period ended September 30, 2000, compared to 1.01 % for the same
period in 1999. Return on average equity of 6.60 % was recorded for the
nine-month period ended September 30, 2000, compared to 10.80% for the same
period in 1999.
At September 30, 2000, the Company had total assets of $646.7 million compared
to $653.3 million at December 31, 1999. The decline in total assets primarily
represents maturities and sales of securities with the proceeds used to fund
repayments of other borrowings.
The Company is susceptible to a continued increasing interest rate environment
that may erode the net interest margin. Strategies to enhance earnings and
improve the interest rate exposure of the Company will be considered, such as
the sale of existing mortgage-backed securities available for sale and
purchasing higher yielding, rate sensitive assets with the proceeds.
The Company's wholly owned subsidiary, First Liberty Bank & Trust, is one of the
largest independent community banks in Northeastern Pennsylvania.
Financial Condition
Cash and Due From Banks and Federal Funds Sold
Cash and due from banks decreased approximately $11.8 million to $14.2 million
at September 30, 2000 from $26.0 million at December 31, 1999 as the company
utilized excess liquidity to pay down other borrowed money.
Securities
Securities available for sale have decreased $16.6 million or 9.0% to $169.3
million from $185.9 million at December 31, 1999. This decrease was primarily
driven by the maturity of $2.1 million, the sale of $5.3 million, and paydowns
received of $11.2 million of the securities available for sale portfolio. These
proceeds were used to pay down other borrowings and to fund loan growth.
Loans Receivable, Net
Aggregate loans receivable totaled $435.1 million at September 30, 2000, an
increase of $17.9 million from $417.2 million at December 31, 1999. This
increase is primarily a result of approximately $10.4 million in commercial and
$10.6 million in commercial real estate loan originations during the nine months
ended September30, 2000.
6
<PAGE>
Non-Performing Assets
The Company's total non-performing assets decreased approximately $325,000 to
$1.8 million or .28% of total assets at September 30, 2000 as compared to $2.2
million or .33% of total assets at December 31, 1999. Loans greater than ninety
days delinquent but still accruing increased from $154,000 at December 31, 1999
to $302,000 at September 30, 2000. Nonaccrual loans decreased approximately
$380,000 to $1.1 million due in part to two commercial properties being
transferred to other real estate owned in addition to $229,000 in loan charge
offs.
Real estate owned and repossessed assets decreased from $558,000 at December 31,
1999 to $465,000 as of September 30, 2000, due to the sale of five residential
properties from the real estate owned portfolio. This was offset by the addition
of three properties into the real estate owned portfolio and the transfer of
four vehicles into repossessed assets. There were no significant gains or losses
on the sale of real estate owned during the nine months ended September 30,
2000.
<TABLE>
<S> <C> <C>
9/30/00 12/31/99
Nonaccrual $ 1,066,000 $ 1,446,000
Loans 90 day or more delinquent $ 302,000 $ 154,000
Restructured -- --
----------- -----------
Total non-performing loans $ 1,368,000 $ 1,600,000
Real estate owned & repossessed assets 465,000 558,000
----------- -----------
Total non-performing assets $ 1,833,000 $ 2,158,000
</TABLE>
At September 30, 2000, the Company's allowance for loan losses amounted to $5.5
million or 1.26% of gross loans receivable. At December 31, 1999, the Company's
allowance for loan losses was $5.1 million or 1.22 % of gross loans receivable.
The allowance for loan losses as of September 30, 2000 is an amount that
management believes will be adequate to absorb known and inherent losses on
existing loans, based on periodic evaluations of the loan portfolio by
management. These evaluations take into consideration such factors as changes in
the nature and volume of the loan portfolio, overall portfolio quality, review
of specific problem loans, current economic conditions that may affect the
borrower's ability to pay and other relevant matters.
Deposits
Deposits increased $12.5 million or 2.6% from $484.4 million at December 31,
1999 to $496.9 million at September 30, 2000. A primary reason for the increase
in deposits is the purchase of two Mellon branches in the beginning of the third
quarter.
Equity
At September 30, 2000, total equity was $60.2 million or 9.3% or total assets
compared to $57.2
7
<PAGE>
million or 8.8% of total assets as of December 31, 1999. Total equity increased
partially due to the retention of net income during the intervening period. In
addition, there was an increase in accumulated other comprehensive income due to
market changes in the securities available for sale portfolio.
Results of Operations
Net Income
The Company's net income for the three months ended September 30, 2000 decreased
to $1.2 million compared to $1.7 million for the three months ended September
30, 1999 primarily due to declines in both net interest income and non-interest
income.
The Company's net income was $3.8 million for the nine months ended September
30, 2000, compared to $4.7 million recorded in the comparable prior period. This
$900,000 decrease was also primarily due to declines in both net interest income
and non-interest income.
Net Interest Income
Net interest income before provision for loan losses amounted to $4.7 million
and $14.3 million for the three-month and nine-month periods ended September 30,
2000 versus $5.1 million and $15.1 million for the comparable prior period ended
September 30, 1999.
Total interest income increased to $11.2 million and $33.1 million for the three
and nine month periods ended September 30, 2000 from $10.8 million and $31.7
million during the comparable prior periods. The average interest-earning assets
increased $10.8 million for the nine months ended September 30, 2000 compared to
the nine months ended September 30, 1999. In addition the yield earned on the
average interest-earning assets increased 20 basis points during the nine months
ended September 30, 2000 compared to the 1999 period.
Total interest expense increased to $6.4 million and $18.8 million for the three
and nine months ended September 30, 2000 from $5.6 million and $16.6 million for
the comparable prior period. The increase for the three-month period is
primarily due to an increase in interest expense on fed funds purchased, offset
by a decrease in interest expense on capitalized lease obligations and borrowed
funds. The increase for the nine month period is primarily due to the average
balance of fed funds purchased and other borrowings increasing by $33.9 million
during the nine months ended September 30, 2000, compared to the comparable 1999
period. In addition, for the nine-months ended September 30, 2000 average rates
paid on deposits and fed funds purchased/other borrowings increased 25 and 76
basis points respectively, compared to the comparable 1999 period.
Provision for Loan Losses
The Company establishes a provision for loan losses, which is charged to
operations, in order to maintain the allowance for loan losses at a level which
is deemed to be appropriate based upon an assessment of prior loss experience,
the volume and type of lending presently being conducted by the Company,
industry standards, past due loans, economic conditions in the Company's market
area generally and other factors related to the collectability of the Company's
loan portfolio. The Company's provision for loan losses remained consistent at
$180,000 for the three months ended
8
<PAGE>
September 30, 2000 and September 30, 1999, as well as for the nine months ended
September 30, 2000 and September 30, 1999 at $540,000.
Although management utilizes its best judgement in providing for inherent
losses, there can be no assurance that the Company will not have to increase its
provisions for loan losses in the future as a result of the future increases in
non-performing loans or for other reasons which could adversely affect the
Company's results of operations. In addition, various regulatory agencies, as an
integral part of their examination process, periodically review the allowance
for loan losses. Such agencies may require the Company to recognize additions to
the allowance for loan losses based on their judgements of information which is
available to them at the time of their examination.
Noninterest Income
Noninterest income for the three and nine month periods ended September 30, 2000
was $568,000 and $1.6 million compared to $699,000 and $1.8 million for the same
periods in the prior year. The decrease for the three month period was the
result of a $138,000 decrease in gains on sale of securities combined with a
$35,000 decrease in other noninterest income offset by a $19,000 increase in
service charges and fees and a $23,000 increase in Trust income. The decrease
over the nine month period was due to a $172,000 decrease in gains on sale of
securities and a $51,000 decrease in other noninterest income offset by a
$30,000 increase in Trust income.
Noninterest Expense
Non interest expenses for the three month period ended September 30, 2000
increased $87,000 to $3.6 million from the same period in the prior year, while
over the nine month period ended September 30, 2000 noninterest expenses
increased $295,000 to $10.6 million from the same period in the prior year. The
increase over the three month period was primarily the result of a $164,000
increase in salaries and benefits and $27,000 increase in foreclosure and other
real estate expenses offset by a $144,000 decrease in other expenses. The
increase over the nine month period was the result of the $532,000 and $147,000
increases in salaries and benefits and net occupancy and furniture/equipment
expenses, respectively, as a result of opening three additional branches. The
increases were offset by a $106,000 decrease in data processing services and a
$267,000 decrease in other expenses. The decrease in data processing services
was primarily the result of the Company reconfiguring certain vendor contracts
to realize efficiencies permitted by the merger of the two predecessor banks
into First Liberty Bank & Trust.
Income Taxes
Income tax expense totaled $331,000 and $1.1 million for the three and
nine-month periods ended September 30, 2000 compared to $430,000 and $1.3
million for the comparable prior periods. These amounts resulted in effective
tax rates calculated at 22.1% for the three-months and 22.0% for the nine-months
ended September 30, 2000 compared to 20.3% for the three months ended September
30, 1999 and 21.2% for the nine months ended September 30, 1999. Over the three
and nine month periods ended September 30, 2000 the Company has decreased their
holdings of municipal securities.
9
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Liquidity & Capital Adequacy
The Company's primary source of funds on long term and short term basis are
deposits, principal and interest payments on loans, mortgage backed securities,
and FHLB advances. The Company uses the funds generated to support its lending
and investment activities as well as any other demands for liquidity such as
deposit out flows.
The Company has continued to maintain the required levels of liquid assets as
defined by Federal regulations.
A strong capital position is
important to the continued profitability of the Company and promotes depositor
and investor confidence. The Company's capital consists of shareholders' equity,
which provides a basis for future growth and expansion and also provides a
buffer against unexpected losses.
Shareholders' equity increased $3.0 million to $60.2 million at September 30,
2000. It is management's intention to continue paying a reasonable return on
shareholders' investment while retaining adequate earnings to allow for future
growth.
The Federal Reserve Board measures capital adequacy for bank holding companies
by using a risk- based capital frame-work and by monitoring compliance with
minimum leverage ratio guidelines. The minimum ratio of total risk-based capital
to risk-adjusted assets is 8% at September 30, 2000, of which 4% must be Tier 1
capital. The Company's total risk-based capital ratio was 15.79 % at September
30, 2000. The Company's Tier 1 risk-based capital ratio was 14.54% at September
30, 2000.
In addition, the Federal Reserve Board has established minimum leverage ratio
guidelines for bank holding companies. These guidelines provide for a minimum
leverage ratio of 3% for bank holding companies that meet certain criteria,
including that they maintain the highest regulatory rating. All other bank
holding companies are required to maintain a leverage ratio of 3% plus an
additional cushion of at least 100 to 200 basis points. The Federal Reserve
Board has not advised the Company of any specific minimum leverage ratio
applicable to it. The Company's leverage ratio was 9.19 % at September 30, 2000.
The Federal Deposit Insurance Corporation Improvement Act (FDICIA) establishes
minimum capital requirements for all depository institutions and established
five capital tiers: "well capitalized", "adequately capitalized,"
"under-capitalized, "significantly under-capitalized," and "critically
under-capitalized," FDICIA imposes significant restrictions on the operations of
a bank which is not at least adequately capitalized. A depository institutions'
capital tier will depend upon where its capital levels are in relation to
various other capital measures which include a risk-based capital measure, a
leverage ratio capital measure and other factors. Under regulations adopted, for
an institution to be well capitalized it must have a total risk-based capital
ratio of at least 10%, a Tier I risk-based capital ratio of at least 6%, and a
Tier I leverage ratio of at least 5%, and not be subject to any specific capital
order or directive.
At September 30, 2000, the Bank's total risk-based capital, Tier I risk-based
capital and Tier I leverage ratios were 15.39%, 14.14% and 9.16%, respectively.
10
<PAGE>
Market Risk and Interest Rate Risk
Market risk is the risk of loss from adverse changes in market prices and rates.
The Company's market risk arises primarily from interest rate risk inherent in
its lending, investment, and deposit taking activities. To that end, management
actively monitors and manages its interest rate risk exposure.
The Company uses simulation analysis to help monitor and manage interest rate
risk. In this analysis the Company examines the result of 100, 200 and 300 basis
point change in market interest rates and the corresponding effect on net
interest income. It is assumed that the change is instantaneous and that all
rates move in a parallel manner. In addition, it is assumed that rates on core
deposit products such as NOWs, savings accounts, and the MMDA accounts will be
adjusted by 50% of the assumed rate change. Assumptions are also made concerning
prepayment speeds on mortgage loans and mortgage securities. The results of this
rate shock are a useful tool to assist the Company in assessing interest rate
risk inherent in their balance sheet.
The results of this rate shock analysis as of September 30, 2000 are as follows:
<TABLE>
<S> <C>
Change in Rate Net Interest Income Change (After tax, in thousands)
-------------- ----------------------------------------------------
+300 (3342.2)
+200 (2229.0)
+100 (1110.0)
-100 937.6
-200 1673.0
-300 2262.2
</TABLE>
Forward Looking Statements
These financial statements include certain "forward looking statements"
concerning the future operations of the Company. It is management's desire to
take advantage of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. This statement is for the express purpose of
availing the Company of the protections of such safe harbor with respect to all
"forward looking statements" contained in our financial statements. "Forward
looking statements" describe the future plans and strategies including
expectations of the Company's future financial results. Management's ability to
predict results or the effect of future plans and strategy is inherently
uncertain. Factors that could affect results include interest rate trends,
competition, the general economic climate in Northeastern Pennsylvania, the
mid-Atlantic region and country as a whole, loan delinquency rates,, and changes
in federal and state regulation. These factors should be considered in
evaluating the "forward looking statements", and undue reliance should not be
placed on such statements.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The information set forth under the caption "Market Risk and Interest Rate Risk"
under Item 2 of Part I is incorporated herein by reference.
11
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FIRST LIBERTY BANK CORP. AND SUBSIDIARIES
September 30, 2000
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a): Exhibits:
Financial Data Schedule, which is submitted
electronically to the Securities and
Exchange Commission for information only and
not filed.
(b): Reports on Form 8-K:
None
12
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FIRST LIBERTY BANK CORP. AND SUBSIDIARIES
September 30, 2000
SIGNATURES
In accordance with requirement of the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned thereunto duly authorized.
THE FIRST LIBERTY BANK CORP.
----------------------------
(Registrant)
Date November 13,2000 By /s/ William M. Davis
---------------- --------------------
William M. Davis
Chairman, President and
Director
(Principal Executive Officer)
Date November 13, 2000 By /s/ Donald J. Gibbs
----------------- ------------------
Donald J. Gibbs
(Principal Financial Officer
And Treasurer)
13
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