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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 6, 1998
FNB FINANCIAL SERVICES CORPORATION
(Exact name of registrant as specified in its charter)
North Carolina 0-13086 56-1382275
(State or other (Commission File No.) I.R.S. Employer
jurisdiction Identification Number
of incorporation)
202 South Main Street, Reidsville, North Carolina 27320
(Address of principal executive offices)
(336) 342-3346
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
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Item 5. Other Events
On April 6, 1998, the Registrant issued a press release, the text of
which is set forth below:
FNB FINANCIAL SERVICES CORPORATION REPORTS RECORD EARNINGS
Reidsville, NC, April 6, 1998------Ernest J. Sewell, President
and Chief Executive Officer of FNB Financial Services Corporation
(NASDAQ:FNBF) reported record quarterly earnings for the first quarter,
1998 of $774,000, up $268,000 or 53.0% from the same quarter last year.
Basic earnings per share were $.29 in the current quarter, compared with
$.19 in 1997.
Net interest income advanced 46.2% over last year, as the four
new offices opened in 1997 continued to produce accelerated balance
sheet growth. Noninterest income was 71.2% higher in 1998, while
noninterest expense rose 34.7%, the latter principally as a result of
operating expenses for the new offices. Funding of the allowance for
loan losses more than tripled this year, to $265,000, in order to
maintain appropriate levels on a greatly increased loan portfolio. Net
charge offs on loans totaled $46,000 in the first quarter, or 0.02% of
average loans.
Sewell attributed the increased earnings to "our continuing
ability to grow the Company, especially in the newer markets, as
evidenced by gains in loans of 20% at the four new 1997 offices over the
last three months, while deposits grew by 29.7% during that same time
period. The expense of operating those branches has stabilized at
current levels, causing us to be optimistic about earnings comparisons
going forward this year."
At quarter end, total loans of $247.5 million had increased 56.6%
over one year ago, while total deposits of $315.2 million were 52.7%
higher. Shareholders' equity of $23.1 million was up 12.3% over the 1997
first quarter end.
FNB Financial Services Corporation is a North Carolina bank
holding company with consolidated assets of approximately $368 million
at March 31, 1998. The Company, through its subsidiary, First National
Bank Southeast, currently operates ten banking offices concentrated in
the Piedmont/Triad region of the state and in Wilmington. The Bank is
community oriented, characterized by local affiliations and personalized
services, while at the same time providing its customers with the
financial sophistication and breadth of products usually associated with
much larger, regional banks.
Information in this release may contain "forward looking
statements". These statements involve risks and uncertainties that
could cause actual results to differ materially, including without
limitation, the effects of future economic conditions, governmental
fiscal and monetary policies, legislative and regulatory changes, the
risks of changes in interest rates and the failure of assumptions
underlying the establishment of the allowance for loan losses.
Additional factors that could cause actual results to differ materially
are discussed in the Company's
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recent filings with the Securities and Exchange Commission, including
its S-2 Registration Statement and its periodic reports.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit No. Description of Exhibit
----------- ----------------------
99.01 Press Release dated April 6, 1998
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FNB FINANCIAL SERVICES CORPORATION
By: /s/ Robert F. Albright
--------------------------------------
Dated: April 6, 1998 Robert F. Albright
Senior Vice President, Chief Financial
Officer and Secretary
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EXHIBIT 99.01
FNB FINANCIAL SERVICES CORPORATION REPORTS RECORD EARNINGS
Reidsville, NC, April 6, 1998------Ernest J. Sewell, President and
Chief Executive Officer of FNB Financial Services Corporation (NASDAQ:FNBF)
reported record quarterly earnings for the first quarter, 1998 of $774,000, up
$268,000 or 53.0% from the same quarter last year. Basic earnings per share were
$.29 in the current quarter, compared with $.19 in 1997.
Net interest income advanced 46.2% over last year, as the four new
offices opened in 1997 continued to produce accelerated balance sheet growth.
Noninterest income was 71.2% higher in 1998, while noninterest expense rose
34.7%, the latter principally as a result of operating expenses for the new
offices. Funding of the allowance for loan losses more than tripled this year,
to $265,000, in order to maintain appropriate levels on a greatly increased loan
portfolio. Net charge offs on loans totaled $46,000 in the first quarter, or
0.02% of average loans.
Sewell attributed the increased earnings to "our continuing ability to
grow the Company, especially in the newer markets, as evidenced by gains in
loans of 20% at the four new 1997 offices over the last three months, while
deposits grew by 29.7% during that same time period. The expense of operating
those branches has stabilized at current levels, causing us to be optimistic
about earnings comparisons going forward this year."
At quarter end, total loans of $247.5 million had increased 56.6% over
one year ago, while total deposits of $315.2 million were 52.7% higher.
Shareholders' equity of $23.1 million was up 12.3% over the 1997 first quarter
end.
FNB Financial Services Corporation is a North Carolina bank holding
company with consolidated assets of approximately $368 million at March 31,
1998. The Company, through its subsidiary, First National Bank Southeast,
currently operates ten banking offices concentrated in the Piedmont/Triad region
of the state and in Wilmington. The Bank is community oriented, characterized by
local affiliations and personalized services, while at the same time providing
its customers with the financial sophistication and breadth of products usually
associated with much larger, regional banks.
Information in this release may contain "forward looking statements".
These statements involve risks and uncertainties that could cause actual results
to differ materially, including without limitation, the effects of future
economic conditions, governmental fiscal and monetary policies, legislative and
regulatory changes, the risks of changes in interest rates and the failure of
assumptions underlying the establishment of the allowance for loan losses.
Additional factors that could cause actual results to differ materially are
discussed in the Company's recent filings with the Securities and Exchange
Commission, including its S-2 Registration Statement and its periodic reports.
