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 March 31, 2000
--------------
Commission file number 0-133312
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FIRST LIBERTY BANK CORP.
------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 23 -2275242
- ------------ ------------
(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
- ------------------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Issuer's telephone number 570-876-6500
------------
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 May 5,2000
----- -------------------------
Common stock, $.31 par value 6,427,804
1
<PAGE>
FIRST LIBERTY BANK CORP. AND SUBSIDIARIES
FORM 10-Q
QUARTER ENDED MARCH 31, 2000
INDEX
Page
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS UNAUDITED:
Consolidated Balance Sheets - March 31, 2000 and
December 31, 1999 1
Consolidated Statements of Operations - Three Months
Ended March 31, 2000 and 1999 2
Consolidated Statements of Cash Flows -
Three Months Ended March 31, 2000 and 1999 3
Notes to Consolidated Financial Statements-
Three Months Ended March 31, 2000 and 1999 and
December 31, 1999 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 12
PART II - OTHER INFORMATION 13
SIGNATURES 14
2
<PAGE>
PART I. FINANCIAL INFORMATION
Item I. Financial Statements
<TABLE>
FIRST LIBERTY BANK CORP. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands of dollars, except per share information)
(unaudited)
- ------------------------------------------------------------------------------------------------------------
March 31, December 31,
Assets 2000 1999
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash and due from banks $ 12,696 26,023
Securities available for sale 175,888 185,908
Loans, gross 424,142 417,249
Less: Unearned discount and origination fees (676) (699)
Allowance for loan losses (5,283) (5,107)
- ---------------------------------------------------------------------------------------------------------------
Loans, net 418,183 411,443
Accrued interest receivable 3,991 3,397
Bank premises, leasehold improvements and furniture and equipment -net 14,332 14,431
Real estate owned other than bank premises 277 558
Other assets 11,943 11,515
- ---------------------------------------------------------------------------------------------------------------
Total assets $ 637,310 653,275
===============================================================================================================
Liabilities
Deposits:
Noninterest-bearing demand $ 56,470 49,502
Interest-bearing 441,508 434,944
------------------------------------------------------------------------------------------------------------
Total deposits 497,978 484,446
- ---------------------------------------------------------------------------------------------------------------
Other borrowed money 77,242 75,567
Federal Funds Purchased -- 32,450
Accrued interest payable 2,626 2,040
Other liabilities 1,545 1,555
- ---------------------------------------------------------------------------------------------------------------
Total liabilities 579,391 596,058
- ---------------------------------------------------------------------------------------------------------------
Shareholders' Equity
Common stock, $.31 par value, authorized 10,000,000 shares; 2,009 2,009
Outstanding 6,427,804 shares and 6,427,804 shares respectively
Surplus 6,107 6,107
Retained earnings 54,457 53,790
Accumulated other comprehensive income (4,458) (4,493)
Less treasury stock-at cost (60,820) (196) (196)
- ---------------------------------------------------------------------------------------------------------------
Total shareholders equity 57,919 57,217
- ---------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $ 637,310 653,275
===============================================================================================================
</TABLE>
1
<PAGE>
FIRST LIBERTY BANK CORP. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands of dollars, except for per share information )
(unaudited)
<TABLE>
- --------------------------------------------------------------------------------------------------------------
Three months ended March 31,
2000 1999
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Interest income:
Interest and fees on loans $ 8,229 7,410
Interest on interest bearing deposits 8 255
Interest and dividends on securities:
Taxable 2,356 1,999
Exempt from Federal Taxes 422 625
Interest of Fed Funds Sold --- 9
- --------------------------------------------------------------------------------------------------------------
Total interest income 11,015 10,298
- --------------------------------------------------------------------------------------------------------------
Interest expense:
Deposits 4,701 4,711
Fed Funds Purchased 357 --
Capitalized lease obligation and borrowed funds 1,030 697
- --------------------------------------------------------------------------------------------------------------
Total interest expense 6,088 5,408
- --------------------------------------------------------------------------------------------------------------
Net interest income 4,927 4,890
Provision for loan losses 180 180
- --------------------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses 4,747 4,710
- --------------------------------------------------------------------------------------------------------------
Noninterest income:
Service charges and fees 163 183
Gain on sale of securities 53 74
Trust 170 164
Other 133 131
- --------------------------------------------------------------------------------------------------------------
Total noninterest income 519 552
- --------------------------------------------------------------------------------------------------------------
Noninterest expense:
Salaries and benefits 1,977 1,781
Net occupancy and furniture/equipment expenses 650 551
Data processing services 48 115
Foreclosures and other real estate expense 9 56
Other expense 834 826
- --------------------------------------------------------------------------------------------------------------
Total noninterest expense 3,518 3,329
- --------------------------------------------------------------------------------------------------------------
Income before income tax provision 1,748 1,933
Income tax provision 381 415
- --------------------------------------------------------------------------------------------------------------
Net income 1,367 1,518
- --------------------------------------------------------------------------------------------------------------
Other comprehensive income net of tax Unrealized gains/(losses) on securities:
Unrealized holding (loss)/gain arising during the period 70 (395)
Reclassification adjustment for gains included in net income (35) (49)
Comprehensive income $ 1,402 1,074
==============================================================================================================
Per share information
Net income-basic $ .21 .24
Net income-diluted .21 .24
</TABLE>
2
<PAGE>
FIRST LIBERTY BANK CORP. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands of dollars)
(unaudited)
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------
Three months ended March 31,
2000 1999
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operating activities:
Net income $ 1,367 1,518
Adjustments to reconcile net income to net cash (used) provided by
Operating activities:
Provision for loan losses 180 180
Depreciation and amortization of investment securities, bank
premises, leasehold improvements and furniture and equipm327 205
Increase in interest receivable and other assets (1,041) (1,918)
Increase/(decrease) in interest payable and other liabilities 576 (589)
- -------------------------------------------------------------------------------------------------------------
Net cash (used) provided by operating activities 1,409 (604)
- -------------------------------------------------------------------------------------------------------------
Investing activities:
Proceeds from maturities of securities 4,730 22,738
Purchases of securities available for sale --- (6,000)
Proceeds from sales of securities available for sale 5,344 12,000
Net (increase) in loans (6,949) (116)
Purchase of bank premises, leasehold improvements and
furniture and equipment-net (228) (1,090)
Sales of assets acquired through foreclosure, net 310 92
- ------------------------------------------------------------------------------------------------------------
Net cash provided by investing activities 3,207 27,624
- ------------------------------------------------------------------------------------------------------------
Financing activities:
Net increase in deposits 13,532 15,231
Repay Fed Funds Purchased (32,450) (5,000)
Principal payments on capitalized lease obligation (25) (23)
Borrowed funds 1,700 --
Proceeds of stock issued through exercise of options --- 106
Dividends paid (700) --
- ------------------------------------------------------------------------------------------------------------
Net cash (used) provided by financing activities (17,943) 10,314
- ------------------------------------------------------------------------------------------------------------
(Decrease)/increase in cash and cash equivalents (13,327) 37,334
Cash and cash equivalents at beginning of period 26,023 25,628
- ------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 12,696 62,962
============================================================================================================
Cash paid during the period:
Interest $ 5,502 5,466
Federal income taxes 200 494
============================================================================================================
Noncash transactions
Net unrealized gain/(loss) on securities available for sale, net of ta$ 35 (444)
Transfers of loans to real estate owned other than bank premise 29 234
============================================================================================================
</TABLE>
3
<PAGE>
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 three months ended March 31, 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
<PAGE>
(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.
The following table sets forth the computation of basic and diluted
earnings per share (in thousands, except per share amounts)
<TABLE>
3 months ended March 31
2000 1999
---- ----
<S> <C> <C>
Numerator:
Net income $ 1,367 $ 1,518
Denominator:
Denominator for basic earnings
per share weighted average
shares 6,367 6,351
Effect of dilutive securities:
Employee stock options 34 54
Denominator for diluted earnings
per share adjusted weighted
average shares and assumed
exercise 6,401 6,405
Basic earnings per share .21 .24
Diluted earnings per share .21 .24
</TABLE>
5
<PAGE>
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Overview
The Company's net income for the three months ended March 31, 2000 was $
1,367,000 or $.21 per diluted share compared to $1,518,000 and $.24 per diluted
share for the same three-month period in the preceding year. The decrease in net
income was primarily attributable to a decrease in net interest income as well
as an increase in non-interest expenses.
The Company recorded an annualized return on average assets of .85% for the
three-month period ending March 31, 2000, compared to 1.00% for the same period
in 1999. Return on average equity of 9.59% was recorded for the three-month
period ended March 31, 2000, compared to10.43% for the same period in 1999.
At March 31, 2000, the Company had total assets of $637 million compared to $653
million at December 31, 1999. The decrease in total assets was driven by a $13.3
million decrease in cash and due from banks and a $10.0 million decrease in
securities available for sale.
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 community banks in Northeastern Pennsylvania. The Company intends to
increase its market penetration through, the purchase of additional branches.
Currently the Company is negotiating the purchase of two branches from Mellon
Bank N.A.
Financial Condition
Cash and Due From Banks
Cash and due from banks decreased approximately $ 13.3 million to $12.7 million
at March 31, 2000 from $26.0 million at December 31, 1999 as the company
utilized excess liquidity to pay down federal funds purchased.
Securities
Securities available for sale have decreased $10.0 million or 5.4% to $175.9
million from $185.9 million at December 31, 1999. This decrease was primarily
driven by the maturity and sale of $4.7 million and $5.3 million of securities
available for sale, respectively.
6
<PAGE>
Loans Receivable, Net
Aggregate loans receivable totaled $418.2 million at March 31, 2000, an increase
of $6.8 million from $411.4 million at December 31, 1999. The mix of loans is
substantially unchanged at those dates.
Non-Performing Assets
The Company's total non-performing assets decreased approximately $410,000 to
$1.7 million or .27% of total assets at March 31, 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 $207,000 at March 31, 2000. However, nonaccrual loans decreased approximately
$182,000 to $1,264,000.
Real estate owned, decreased from $558,000 as of December 31, 1999 to $277,000
as of March 31, 2000, due to four sales of residential properties totaling
$310,000, offset by an addition of one property with a $29,000 market value.
There were no significant gains or losses on the sale of real estate owned
during the quarters ended March 31, 2000 and 1999.
<TABLE>
3/31/00 12/31/99
------- --------
<S> <C> <C>
Nonaccrual 1,264,000 1,446,000
Loans 90 days or more delinquent 207,000 154,000
Restructured --- ---
---------- ---------
Total non-performing loans $1,471,000 $1,600,000
Real estate owned other than
Bank premises 277,000 558,000
------- -------
Total non-performing assets $1,748,000 $2,158,000
</TABLE>
At March 31, 2000, the Company's allowance for loan losses amounted to $5.28
million or 1.25% of gross loans receivable. At December 31, 1999, the Company's
allowance for loan losses was $5.11 million or 1.22% of gross loans receivable.
Deposits
Deposits increased $13.5 million or 2.8% from $484.4 million at December 31,
1999 to $498.0 million at March 31, 2000. The increase in deposits was primarily
due to an increase in demand and NOW accounts from the local market.
7
<PAGE>
Equity
At March 31, 2000, total equity was $57.9 million or 9.1% of total assets
compared to $57.2 million or 8.8% of total assets as of December 31, 1999. Total
equity increased primarily due to the retention of net income during the
intervening period.
Results of Operations
Net Income
The Company's net income was $1,367,000 for the three months ended March 31,
2000, compared to $1,518,000 recorded in the comparable prior period. In a
competitive rate environment, the Company was able to substantially maintain its
level of core earnings as net interest income before provision for loan losses
approximated $4.9 million for the three months ended March 31, 2000 and March
31, 1999. The Company's noninterest income decreased slightly to $519,000 for
the period ending March 31, 2000 from $552,000 for the period ending March
31,1999, while noninterest expense increased to $3.5 million for the three
months ended March 31, 2000, compared to $3.3 million for the comparable prior
period.
Net Interest Income
Net interest income before provision for loan losses was relatively constant at
approximately $4.9 million for the three-month periods ended March 31, 2000 and
March 31,1999.
Total interest income increased by $717,000 or 7.0% to $11.0 million for the
three month period ended March 31, 2000 from $10.3 during the comparable prior
period. The average interest-earning assets increased $22,177,000 for the three
months ended March 31, 2000 compared to the three months ended March 31, 1999.
Additionally, there was an increase of 18 basis points in the yield earned on
average interest-earning assets during the three months ended March 31, 2000
compared to the 1999 period.
Total interest expense increased by $680,000 or 12.6% to $6,088,000 for the
three months ended March 31, 2000 from $5,408,000 for the comparable prior
period. The increase was due to an increase in interest expense associated with
borrowings. The average balance of borrowings increased by $43,855,000 during
the three months ended March 31, 2000, compared to the comparable 1999 period.
Additionally, there was an increase of 34 basis points in the average rates paid
for the three months ended March 31, 2000 over 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 and other factors related to the collectability of the Company's loan
portfolio. The Company's provision for loan losses amounted to $180,000 for both
of the three month periods ended March 31, 2000 and March 31, 1999.
8
<PAGE>
Although management utilizes its best judgment 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 evaluations of information which is
available to them at the time of their examination.
Noninterest Income
Noninterest income for the period ending March 31, 2000 decreased approximately
$33,000 to $519,000 from the comparable prior period, primarily due a $20,000
and $21,000 decrease in service charges and fees on loans and deposits and gain
on sale of securities, respectively.
Noninterest Expenses
Noninterest expenses for the period ending March 31, 2000 increased
approximately $189,000 from the comparable prior period. Salary and benefits
increased $196,000; net occupancy expense increased by $99,000; and other
expense increased by $8,000 over the prior period as a result of new branches
opened in Kingston and Dickson City in July and September 1999, respectively.
Offsetting these increases was a $67,000 decrease in data processing services
primarily as a 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 $381,000 for the three-month period ended March 31,
2000 compared to $415,000 for the comparable prior period. These amounts
resulted in effective tax rates calculated at 21.8% and 21.5%, respectively. It
has been the Company's tax strategy to increase tax-exempt income as a
percentage of total net income through investments in tax- exempt securities,
bank owned life insurance, and low income housing credits.
Liquidity & Capital Adequacy
The Company's primary source of funds on a 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
9
<PAGE>
against unexpected losses.
Shareholders' equity increased $702,000 to $57,919,000 at March 31, 2000. It is
management's intention to continue paying a reasonable return on shareholders'
investment while retaining adequate earnings to allow for continued 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 March 31, 2000, of which 4% must be Tier 1
capital. The Company's total risk-based capital ratio was 16.87% at March 31,
2000. The Company's Tier 1 risk-based capital ratio was 15.62% at March 31,
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 9.61% at March 31, 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 March 31, 2000, the Bank's total risk-based capital, Tier I risk-based
capital and Tier I leverage ratios were 16.51%, 15.26% and 9.56%, respectively.
As of March 31,2000, the Bank maintains a classification of "well-capitalized".
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 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
10
<PAGE>
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 March 31, 2000 are as follows:
<TABLE>
<S> <C> <C>
Change in Rate Net Interest Income Change (After tax, in thousands)
-------------- ----------------------------------------------------
+300 (2954.7)
+200 (1971.6)
+100 (980.7)
-100 844.0
-200 1572.3
-300 1932.4
</TABLE>
Year 2000 Issues
Year 2000 issues result from the inability of many computer programs or
computerized equipment to accurately calculate, store or use data for the year
2000 or later. The potential shortcomings could result in a system failure or
miscalculations causing disruptions of operation, including among other things,
a temporary inability to process transactions, track important customer
information, provide convenient access to this information, or engage in normal
business operations. The Company did not incur any additional costs for the Year
2000 in the first quarter ended March 31, 2000. While lingering concern exists
about certain dates during Year 2000, the most significant date, January 1,
2000, has passed without incident. As of the date of this filing the Company has
not experienced any significant Year 2000 problems relating to its internal or
third party computer systems. Nor has the Company experienced any issues
regarding the ability of commercial customers to meet debt service as a result
of Year 2000 issues. The Company will continue to monitor systems for problems
in the future, however, the costs related to that process are not expected to be
significant.
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.
11
<PAGE>
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The information set forth was under the caption "Market Risk and Interest Rate
Risk" under Item 2 of Part I is incorporated herein by reference.
12
<PAGE>
FIRST LIBERTY BANK CORP. AND SUBSIDIARIES
March 31, 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:
FinancialData Schedule, which is submitted
electronically to the Securities
and Exchange Commission for
information only and not filed.
(b): Reports on Form 8-K:
None
13
<PAGE>
FIRST LIBERTY BANK CORP. AND SUBSIDIARIES
March 31, 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.
FIRST LIBERTY BANK CORP.
(Registrant)
Date May 12, 2000 By/s/ William M. Davis
------------ --------------------
William M. Davis
Chairman, President and
Director
(Principal Executive Officer)
Date May 12,2000 By /s/ Donald J. Gibbs
----------- ------------------
Donald J. Gibbs
(Principal Financial Officer
And Treasurer)
14
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000741562
<NAME> First Liberty Bank Corp.
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 12,241
<INT-BEARING-DEPOSITS> 455
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 175,888
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 423,466
<ALLOWANCE> 5,283
<TOTAL-ASSETS> 637,310
<DEPOSITS> 497,978
<SHORT-TERM> 56,804
<LIABILITIES-OTHER> 4,171
<LONG-TERM> 20,438
0
0
<COMMON> 2,009
<OTHER-SE> 55,910
<TOTAL-LIABILITIES-AND-EQUITY> 637,310
<INTEREST-LOAN> 8,167
<INTEREST-INVEST> 2,786
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 10,953
<INTEREST-DEPOSIT> 4,701
<INTEREST-EXPENSE> 6,088
<INTEREST-INCOME-NET> 4,685
<LOAN-LOSSES> 180
<SECURITIES-GAINS> 53
<EXPENSE-OTHER> 3,518
<INCOME-PRETAX> 1,748
<INCOME-PRE-EXTRAORDINARY> 1,748
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,367
<EPS-BASIC> .21
<EPS-DILUTED> .21
<YIELD-ACTUAL> 3.41
<LOANS-NON> 1,054
<LOANS-PAST> 200
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 5,107
<CHARGE-OFFS> 61
<RECOVERIES> 57
<ALLOWANCE-CLOSE> 5,283
<ALLOWANCE-DOMESTIC> 2,708
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 2,575
</TABLE>
