<PAGE> 1
FORM 10-Q -- QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
(As last amended in Rel. No. 34-26589, eff. 4/12/89)
United States Securities and Exchange Commission
FORM 10-Q
(MARK ONE)
[X] Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934.
For the period ended March 31, 1998
---------------------------------------------------
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities and
Exchange Act of 1934.
For the transition period from to Commission File
----------- -----------
Number: 0-13655
-----------------------------------------------------------------
Security Banc Corporation
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Ohio 31-1133284
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
40 South Limestone Street, Springfield, OH 45502
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(937) 324-6920
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report.)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
X Yes No
----- ------
Indicate the number of shares outstanding of each of the registrant's classes of
common stock.
Class Outstanding at April 15, 1998
- ------------------------------ -----------------------------
Common Stock, $3.125 Par Value 6,067,586
<PAGE> 2
SECURITY BANC CORPORATION AND SUBSIDIARIES
<TABLE>
INDEX
<CAPTION>
PAGE NO.
<S> <C>
Part I - Financial Information
Item 1 - Financial Statements:
Consolidated Condensed Balance Sheets
March 31, 1998 and December 31, l997. 3
Consolidated Condensed Statements of Income
for the three (3) months ended March 31, 1998
and March 31, 1997. 4
Consolidated Condensed Statements of Cash
Flows for the three (3) months ended March 31,
1998 and March 31, 1997. 5
Consolidated Condensed Statements of Shareholders Equity for
the three (3) months ended March 31, 1997 and March 31, 1998. 6
Notes to Consolidated Condensed Financial
Statements. 7
Item 2 - Management's Discussion and Analysis of
Condition and Results of Operations 8-13
Part II - Other Information 14
Signature 15
</TABLE>
-2-
<PAGE> 3
PART I ITEM 1 - FINANCIAL STATEMENTS
SECURITY BANC CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED)
March 31 Dec 31
1998 1997
---- ----
(in thousands)
ASSETS
Cash and due from banks $ 34,136 $ 33,043
Federal funds sold 53,375 52,655
-------- --------
TOTAL CASH AND CASH EQUIVALENT 87,511 85,698
-------- --------
Interest bearing deposits with other banks 2,700 2,700
Investments (Market Value $142,268 @3-31-98,
$149,531 @ 12-31-97) 141,915 149,179
Loans: Commercial and agricultural 256,010 252,053
Real estate and mortgage 227,978 225,791
Consumer 80,772 84,161
-------- --------
TOTAL LOANS 564,760 562,005
Less: Allowance for Loan Losses 6,776 6,254
-------- --------
NET LOANS 557,984 555,751
Premises and Equipment 8,807 8,658
Other Assets 35,847 37,619
-------- --------
TOTAL ASSETS $834,764 $839,605
======== ========
LIABILITIES
Non-interest bearing deposits $116,733 $119,373
Interest bearing demand deposits 134,338 129,351
Savings deposits 153,007 151,119
Time deposits, $100,000 and over 46,045 41,745
Other time deposits 233,000 235,803
-------- --------
TOTAL DEPOSITS 683,123 677,391
Fed funds purchased and securities sold
under agreement to repurchase 28,259 30,746
Federal Home Loan Bank Term Advances 5,848 16,333
Other liabilities 6,274 6,399
-------- --------
TOTAL LIABILITIES $723,504 $730,869
-------- --------
SHAREHOLDERS'S EQUITY
Common Stock (Par Value $3.125) $ 19,713 $ 19,707
Shares authorized 11,000,000
Shares issued 6,308,186 - 1998
6,298,506 - 1997
Surplus 21,854 21,831
Retained earnings 72,592 70,149
Accumulated other comprehensive income 294 242
Less: Treasury Stock, 240,600 shares 3,193 3,193
-------- --------
TOTAL SHAREHOLDERS' EQUITY 111,260 108,736
-------- --------
TOTAL LIABILITIES &
SHAREHOLDER'S EQUITY $834,764 $839,605
======== ========
See notes to Consolidated Condensed Financial Statements
-3-
<PAGE> 4
PART 1 ITEM 1 - FINANCIAL STATEMENTS
<TABLE>
SECURITY BANC CORPORATION
CONSOLIDATED CONDENSED STATEMENT OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended
March 31 March 31
1998 1997
---- ----
(in thousands except
per share data)
<S> <C> <C>
Interest Income $15,693 $15,063
Interest Expense 5,982 6,095
------- -------
NET INTEREST INCOME 9,711 8,968
Provision for loan losses 200 200
------- -------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 9,511 8,768
OTHER OPERATING INCOME
Trust Income 360 390
Service charges on deposit accounts 758 663
Securities, Gains (Losses) 44 56
Other charges, rents and fees 712 530
------- -------
TOTAL OTHER OPERATING INCOME 1,874 1,639
OPERATING EXPENSES
Salaries and employee benefits 2,785 2,703
Equipment and occupancy expense 664 685
Other operating expense 2,295 2,149
------- -------
TOTAL OPERATING EXPENSE 5,744 5,537
INCOME BEFORE TAXES 5,641 4,870
Income taxes (See Note B) 1,924 1,486
------- -------
NET INCOME $ 3,717 $ 3,384
======= =======
Basic earnings per share $ .61 $ .56
Diluted earnings per share $ .61 $ .56
Cash dividends per share $ .21 $ .21
Weighted average shares outstanding 6,065,875 6,055,200
</TABLE>
See notes to Consolidated Condensed Financial Statements.
-4-
<PAGE> 5
PART 1 ITEM 1 - FINANCIAL STATEMENTS
<TABLE>
SECURITY BANC CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<CAPTION>
March 31 March 31
1998 1997
---- ----
(IN THOUSANDS)
--------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income $ 3,717 $ 3,384
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 266 251
(Gain)/Loss on sale of the following:
Investment Securities available for sale (44) (57)
Other Assets (7) (17)
Provision for loan losses 200 200
Amortization and accretion, net (108) 156
Amortization and core deposit intangible 168 188
Change in other operating assets and liabilities, net (5,628) (1,775)
-------- ---------
Total Adjustments (5,153) (1,054)
-------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES $ (1,436) $ 2,330
Cash Flows From Investing Activities:
Net increase in interest bearing deposits with other banks 0 0
Proceeds from maturities and sales of Investment securities
available for sale 7,524 130,299
Proceeds from maturities of Investments held to maturity 4,355 7,373
Purchase of:
Investment securities available for sale (4,450) (142,984)
Investment securities held to maturity 0 (708)
Increase in loans (811) (1,362)
Proceeds from sale of other assets 5,532 1,770
Capital expenditures (416) (242)
Net cash used in acquisition 0 (1,015)
-------- ---------
NET CASH USED IN INVESTING ACTIVITIES 11,734 (6,869)
Cash Flows from Financing Activities:
Net increase in demand deposits, NOW accounts and
savings accounts 4,235 21,862
Net increase (decrease) increase in certificates of deposit 1,497 (921)
Net decrease in short-term borrowed funds (12,972) (7,849)
Dividends paid (1,274) (1,272)
Proceeds from exercise of stock options 29 103
-------- ---------
NET CASH PROVIDED BY FINANCING ACTIVITIES (8,485) 11,923
Net increase in cash and cash equivalents 1,813 7,384
Cash and cash equivalents at beginning of year 85,698 49,827
-------- ---------
Cash and cash equivalents at March 31 $ 87,511 $ 57,211
</TABLE>
See Notes to Consolidated Financial Statements.
-5-
<PAGE> 6
<TABLE>
SECURITY BANC CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY (UNAUDITED)
<CAPTION>
Accumulated
Treasury Other
Common Retained Stock Comprehensive Comprehensive
(dollars in thousands, except per share amounts) Stock Surplus Earnings at Cost Income Income
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1996 $19,658 $21,670 $62,557 ($3,193) $102
Net Income 3,384 3,384
Other comprehensive income:
Net unrealized (losses) on securities
available for sale
net of income taxes of $403 (749) (749)
-----
Total comprehensive income 2,635
=====
Dividend distributions (2,288)
Exercise of stock options 25 78
=================================================================================================================================
BALANCE AT MARCH 31, 1997 19,683 21,748 63,653 (3,193) (647)
=================================================================================================================================
BALANCE AT DECEMBER 31, 1997 19,707 21,831 70,149 (3,193) 242
Net Income 3,717 3,717
Other comprehensive income:
Net unrealized (losses) on securities
available for sale
net of income taxes of $28 52 52
-----
Total comprehensive income 3,769
=====
Cash dividends on Common Shares ($.21
per share) (1,274)
Exercise of stock options 6 23
=================================================================================================================================
BALANCE AT MARCH 31, 1998 19,713 21,854 72,592 (3,193) 294
=================================================================================================================================
</TABLE>
See Notes to Consolidated Financial Statements (Unaudited)
-6-
<PAGE> 7
SECURITY BANC CORPORATION
NOTES TO CONSOLIDATED CONDENSED
FINANCIAL STATEMENTS
(UNAUDITED)
NOTE A -- Preparation
In the opinion of management, the accompanying unaudited financial statements
contain all adjustments consisting of normal re-occurring items necessary to
present fairly the financial condition of the company as of March 31, 1998 and
the results of operations and cash flows for the three month periods ended March
31, 1998 and March 31, 1997.
NOTE B - TAXES
The effective tax rate of 34% is lower than the statutory 35% because of
investments made in tax exempt municipal securities. The subsidiaries of
Security Banc Corporation have approximately $9,000,000 invested in tax exempt
municipal securities.
NOTE C - SFAS No. 130
As of January 1, 1998, Security Banc Corporation adopted Statement of Financial
Accounting Standard ("SFAS") No. 130, "Reporting Comprehensive Income". SFAS No.
130 establishes reporting and display standards for comprehensive income and its
components in a full set of general purpose financial statements. Comprehensive
income is defined as the change in equity of a business enterprise during a
period from transactions and other events and circumstances arising from
non-owner sources. The new statement requires Security's unrealized gains or
losses on securities available-for-sale, which prior to adoption were reported
as a separate component of shareholder's equity, to be included in other
comprehensive income. Since SFAS No. 130 only requires additional information,
it had no impact on Security's financial position or results of operation. Prior
year financial statements have been reclassified to conform with the new
requirements. Comprehensive income is presented in the Statement of Changes in
Shareholders' Equity on page 6.
-7-
<PAGE> 8
PART 1 ITEM 2
SECURITY BANC CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain significant
factors which have affected the Registrant's financial condition and results of
operations during the periods included in the consolidated financial statements
enclosed with this filing.
ECONOMIC OUTLOOK
The economy's performance so far in 1998 continues to be good but is not
expected to reach 1997 levels. GDP is expected to be in the 2.5% range, down
from the 3.6% growth seen in 1997. The consumer continues to drive the economy
with rising incomes and confidence. It is projected that housing starts and auto
sales will remain at current levels as consumers continue to do well although
earnings are expected to soften and capital spending will slow. Overall the
economy is positioned to move forward at a slower sustainable pace.
Interest rates in general have remained stable. Short term rates will see little
movement until the economy takes a noticeable change in direction. Long term
rates reached a 25 year low in February, have rebounded slightly, but remain
low. Low rates have contributed to the refinancing binge and helped push the
stock market to new highs.
The local economic picture remains sound and is following national trends. Area
farmers experienced a good year in 1997 and are expecting more of the same in
1998. Early review of area business financial information shows continued
profits for 1997 with good expectations for 1998.
RESULTS OF OPERATIONS
Net income was $3,717,000 for the first three months of 1998, compared to
$3,384,000 for the same period in 1997. Basic earnings per share were $.61 for
the first three months, a 9% increase over last year's $.56. Diluted earnings
per share were $.61 for the first three months, a 9% increase over last year's
$.56.
Total assets were $834,764,000 at March 31, 1998 compared to 1997's assets of
$832,508,000. For the first three months of 1998, return on average equity was
13.47% and return on average assets was 1.79%.
Interest and fees on loans increased to $12,845,000 for the three months ended
March 31, 1998 compared to $11,940,000 for the three months ending March 31,
1997. Average loans were $562,922,000 and $539,153,000 at March 31, 1998 and
1997 respectively, a 4% increase.
Income from securities decreased to $2,103,000 from $2,726,000 for the three
months ended March 31, 1998 and 1997 respectively. The decrease occurred because
of municipal obligations maturing or being called over the last year. The
average outstanding for securities were $144,725,000 and $188,270,000 at March
31, 1998 and 1997 respectively, a 23% decrease.
Interest income from Fed Funds sold and other interest bearing assets increased
to $745,000 at March 31, 1998 compared to $397,000 for the three months ended
March 31, 1997. The average outstanding for Fed Funds and interest bearing
deposits were $53,245,000 and $29,998,000 at March 31, 1998 and 1997
respectively, a 77% increase.
Interest bearing liabilities average outstanding at March 31, 1998 were
$595,639,000 compared to $605,138,000 at March 31, 1997. Interest expense
decreased to $5,982,000 at March 31, 1998 from $6,095,000 at March 31, 1997, a
2% decrease.
Net interest income on a fully taxable equivalent basis for the first three
months of 1998 was $9,825,000 compared to the $9,245,000 realized in the same
period of 1997.
Market value per share was $57.25 at March 31, 1998 as compared to $43.50 at
March 31, 1997. Book value per share was $18.34 at March 31, 1998 and $16.71 at
March 31, 1997. The efficiency ratio was 48% and 50% respectively for March 31,
1998 and March 31, 1997.
-8-
<PAGE> 9
PART 1 ITEM 2 (CONT'D.)
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
<TABLE>
<CAPTION>
For Period Ending March 31
1998 (000's) 1997
---- ----
<S> <C> <C>
Balance at beginning of period 6,254 6,827
Charge-offs:
Domestic:
Commercial, financial and agriculture (25) 0
Real estate -- construction 0
Real estate - mortgage (284) 0
Installment loans to individuals (247) (314)
Lease financing 0 0
------ ------
(556) (314)
Recoveries:
Domestic:
Commercial, financial and agriculture 792 45
Real estate -- construction 0
Real estate -- mortgage 16 0
Installment loans to individuals 70 57
Lease financing 0 0
------ ------
878 102
Net charge-offs 322 (212)
Additions charged to operations 200 200
------ ------
Balance at end of period $6,776 $6,815
Ratio of net charge-offs during the period of average loans
outstanding during the period .06% (.04%)
</TABLE>
Beginning in 1995, the Company adopted Financial Accounting Standards Board
Statement No. 114, "Accounting by Creditors for Impairment of a Loan". Under the
new standard, the allowance for credit losses related to loans that are
identified for evaluation in accordance with Statement 114 is based on
discounted cash flows using the loan's initial effective interest rate or the
fair value of the collateral for certain collateral dependent loans. Prior to
1995, the allowance for credit losses related to these loans was based on
undiscounted cash flows or the fair value of the collateral for collateral
dependent loans. The following table presents data concerning loans at risk at
the end of each period. (000s).
December 31
March 31, ------------------------------
1998 1997 1996 1995 1994
---- ---- ---- ---- ----
Non-accrual loans $1,818 $3,417 $4,123 $2,772 $2,598
Accruing loans past due
90 days or more 1,695 1,537 1,709 1,543 561
Restructured loans 331 333 0 0 0
Other real estate owned 1,309 258 256 0 0
Total other operating income was $1,874,000 and $1,639,000 during the first
three months of 1998 and 1997 respectively. Trust income decreased 8%. There was
a 14% increase in service charges on deposits, and a 33% increase in other
charges, rents and fees. Total securities gains for the first three months of
1998 were $44,000 or $29,000 after tax. Total securities gains for the same
period of 1997 were $56,000 or $36,000 after tax.
-9-
<PAGE> 10
PART 1 ITEM 2 - PAGE 2
SECURITY BANC CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Total operating expenses increased $207,000 during the first three months, 4%
over the similar period of 1997. Salaries wages and employee benefits increased
3% over 1997. Equipment and net occupancy expenses during the first three months
were $664,000 and $685,000 for 1998 and 1997 respectively, which reflects a 3%
decrease. Other operating expenses increased 6% over 1997.
The Corporation continues to look for opportunities to maximize Other Income and
reduce Other Expense, thus enhancing the efficiency ratio.
MATERIAL CHANGES IN FINANCIAL CONDITION
The only material changes (5% or greater) on the consolidated condensed balance
sheets were Fed Funds purchased and repos (a decline of 8%) and FHLB advances (a
decline of 64%). The number of repo accounts has remained fairly consistent and
the average outstanding at March 31, 1998 and 1997 was $28,799,000 and
$29,812,000 respectively. FHLB advances declined because the subsidiaries of the
Corporation are selling and buying overnight Fed Funds to each other. This will
have a positive effect on net interest income by reducing interest expense for
the Corporation.
CAPITAL RESOURCES
The table below illustrates the Company's subsidiary banks regulatory
capital ratios at March 31, 1997 under the year end 1992 requirements:
(000s)
Tier 1 Capital $ 98,476
Tier 2 Capital 6,776
--------
TOTAL QUALIFYING CAPITAL $105,252
--------
Risk Adjusted Total Assets(including off balance exposures) $544,113
========
Tier 1 Risk-Based Capital Ratio 18.10%
Total Risk-Based Capital Ratio 19.34%
Tier 1 Leverage Ratio 12.07%
LIQUIDITY
The subsidiaries of the Corporation Static Gap analysis is presented on
pages 11, 12, and 13.
-10-
<PAGE> 11
<TABLE>
THIRD SAVINGS "NEXT FOUR QUARTERS"
ASSET/LIABILITY MANAGEMENT
STATIC GAP ANALYSIS (000S)
<CAPTION>
IMMEDIATELY ADJUSTABLE END OF 6/98 END OF 9/98 END OF 12/98 END OF 3/99
RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE
------- ---- ------- ---- ------- ---- ------- ---- ------- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total Investment Securities 1,382 6.30% 1,001 6.11% 500 5.20% 0 0.00% 0 0.00%
Total Short Term Investment 2,250 5.24% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Net Loans 15,631 9.71% 12,033 9.45% 7,999 8.57% 10,238 8.16% 9,107 8.31%
Total Earning Assets 19,263 8.95% 13,034 9.19% 8,499 8.38% 10,238 8.16% 9,107 8.31%
Total Non-Earning Assets 58 10.77% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Assets 19,321 8.95% 13,034 9.19% 8,499 8.38% 10,238 8.16% 9,107 8.31%
Total Noninterest Bearing Deposits 0 0.00% 2,850 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Interest Bearing Deposits 2,014 5.75% 14,251 5.26% 17,793 5.46% 9,640 5.65% 9,360 5.61%
Total Deposits 2,014 5.75% 17,101 4.38% 17,793 5.46% 9,640 5.65% 9,360 5.61%
Total Other Interest Bearing Liabilities 11,000 5.33% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Other Liabilities 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Liabilities 13,014 5.39% 17,101 4.38% 17,793 5.46% 9,640 5.65% 9,360 5.61%
Total Equity Capital 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Liabilities and Capital 13,014 5.39% 17,101 4.38% 17,793 5.46% 9,640 5.65% 9,360 5.61%
Interval GAP 6,307 (4,067) (9,294) 598 (252)
Cumulative GAP 6,307 2,240 (7,054) (6,456) (6,708)
Interval GAP/Total Assets 3.79% (2.45%) (5.59%) (0.36%) (0.15%)
Cumulative GAP/Total Assets 3.79% 1.35% (4.24%) (3.88%) (4.03%)
Interval GAP/Earning Assets 4.27% (0.83%) (6.35%) 0.41% (0.17%)
Cumulative GAP/Earning Assets 4.27% 3.44% (2.91%) (2.50%) (2.68%)
Interval Spread: Earning Assets 3.55% 3.93% 2.91% 2.51% 2.70%
Interval Spread: Total Assets 3.56% 4.81% 2.91% 2.51% 2.70%
</TABLE>
-11-
<PAGE> 12
<TABLE>
SECURITY NATIONAL "NEXT FOUR QUARTERS"
ASSET/LIABILITY MANAGEMENT
STATIC GAP ANALYSIS (000S)
<CAPTION>
IMMEDIATELY ADJUSTABLE END OF 6/98 END OF 9/98 END OF 12/98 END OF 3/99
RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE
------- ---- ------- ---- ------- ---- ------- ---- ------- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total Investment Securities 117 5.44% 2,912 8.61% 0 0.00% 229 4.75% 100,281 5.82%
Total Short Term Investment 41,100 5.34% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Net Loans 54,933 9.04% 26,390 9.17% 24,021 8.86% 21,231 8.71% 21,058 9.00%
Total Earning Assets 96,150 7.45% 29,302 9.12% 24,021 8.86% 21,460 8.67% 121,339 6.37%
Total Non-Earning Assets 1,572 9.10% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Assets 97,723 7.48% 29,302 9.12% 24,021 8.86% 21,460 8.67% 121,339 6.37%
Total Noninterest Bearing Deposits 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Interest Bearing Deposits 30,049 5.26% 36,059 3.42% 49,911 4.11% 36,806 3.67% 38,354 3.98%
Total Deposits 30,049 5.26% 36,059 3.42% 49,911 4.11% 36,806 3.67% 38,354 3.98%
Total Other Interest Bearing Liabilities 27,061 4.26% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Other Liabilities 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Liabilities 57,110 4.78% 36,059 3.42% 49,911 4.11% 36,806 3.67% 38,354 3.98%
Total Equity Capital 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Liabilities and Capital 57,110 4.78% 36,059 3.42% 49,911 4.11% 36,806 3.67% 38,354 3.98%
Interval GAP 40,613 (6,757) (25,890) (15,346) 82,984
Cumulative GAP 40,613 33,856 7,966 7,380 75,604
Interval GAP/Total Assets 7.59% (1.26%) (4.84%) (2.87%) 15.50%
Cumulative GAP/Total Assets 7.59% 6.33% 1.49% (1.38%) 14.13%
Interval GAP/Earning Assets 7.72% (1.37%) (5.23%) (2.98%) 16.77%
Cumulative GAP/Earning Assets 7.72% 6.35% 1.12% (1.86%) 14.91%
Interval Spread: Earning Assets 2.74% 5.70% 4.75% 4.93% 2.39%
Interval Spread: Total Assets 2.70% 5.70% 4.75% 5.00% 2.39%
</TABLE>
-12-
<PAGE> 13
<TABLE>
CITIZENS NATIONAL "NEXT FOUR QUARTERS"
ASSET/LIABILITY MANAGEMENT
STATIC GAP ANALYSIS (000S)
<CAPTION>
IMMEDIATELY ADJUSTABLE END OF 6/98 END OF 9/98 END OF 12/98 END OF 3/99
RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE
------- ---- ------- ---- ------- ---- ------- ---- ------- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total Investment Securities 1,500 5.05% 3,250 5.86% 6,405 5.81% 5,782 5.77% 3,900 5.16%
Total Short Term Investment 9,325 5.45% 0 0.00% 0 0.00% 500 6.51% 2,200 6.00%
Net Loans 13,696 9.63% 7,587 8.48% 9,599 8.36% 2,238 9.09% 7,509 8.27%
Total Earning Assets 24,521 7.76% 10,837 7.69% 16,004 7.34% 8,520 6.68% 13,609 7.02%
Total Non-Earning Assets 149 9.05% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Assets 24,670 7.77% 10,837 7.69% 16,004 7.34% 8,520 6.68% 13,609 7.02%
Total Noninterest Bearing Deposits 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Interest Bearing Deposits 0 0.00% 36,946 3.25% 13,556 5.36% 3,553 5.48% 29,270 3.21%
Total Deposits 0 0.00% 36,946 3.25% 13,556 5.36% 3,553 5.48% 29,270 3.21%
Total Other Interest Bearing Liabilities 231 4.95% 641 4.02% 0 0.00% 0 0.00% 0 0.00%
Total Other Liabilities 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Liabilities 231 4.95% 37,586 3.26% 13,556 5.36% 3,553 5.48% 29,270 3.21%
Total Equity Capital 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Liabilities and Capital 231 4.95% 37,586 3.26% 13,556 5.36% 3,553 5.48% 29,270 3.21%
Interval GAP 24,439 (26,750) 2,448 4,967 (15,661)
Cumulative GAP 24,439 (2,311) 136 5,104 (10,558)
Interval GAP/Total Assets 17.82% (19.50%) 1.78% 3.62% (11.42%)
Cumulative GAP/Total Assets 17.82% (1.69%) 0.10% 3.72% (7.70%)
Interval GAP/Earning Assets 19.50% (21.47%) 1.96% 3.99% (12.57%)
Cumulative GAP/Earning Assets 19.50% (1.97%) (0.01%) 3.98% (8.59%)
Interval Spread: Earning Assets 2.81% 4.43% 1.98% 1.21% 3.80%
Interval Spread: Total Assets 2.82% 4.43% 1.98% 1.21% 3.80%
</TABLE>
-13-
<PAGE> 14
SECURITY BANC CORPORATION
PART II - OTHER INFORMATION
ITEM 1 Legal Proceedings Inapplicable
ITEM 2 Changes in Securities Inapplicable
ITEM 3 Defaults upon Senior Securities Inapplicable
ITEM 4 Submission of Matters to a Vote Inapplicable
of Security Holders
ITEM 5 Other Information Inapplicable
ITEM 6 Exhibits and Reports on Form 8-K Financial Data Schedule
as required under Article 9 of
Regulation S-X
-14-
<PAGE> 15
SECURITY BANC CORPORATION
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SECURITY BANC CORPORATION
By /s/ Thomas L. Miller
-------------------------------------
Thomas L. Miller
Vice President/Controller
By /s/ J. William Stapleton
-------------------------------------
J. William Stapleton
Executive Vice President/CFO
May 8, 1998
-15-
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