<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, 2000
--------------
[ ] 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 May 8, 2000
- -------------------------------- --------------------------
Common Stock, $1.5625 Par Value 11,928,520
Page 1
<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, 2000 and December 31, l999. 3
Consolidated Condensed Statements of Income
for the three (3) months ended March 31, 2000
and March 31, 1999. 4
Consolidated Condensed Statements of Cash
Flows for the three (3) months ended March 31,
2000 and March 31, 1999. 5
Consolidated Condensed Statements of Shareholders Equity for
the three (3) months ended March 31, 1999 and March 31, 2000. 6
Notes to Consolidated Condensed Financial
Statements. 7
Item 2 - Management's Discussion and Analysis of
Condition and Results of Operations 8-14
Part II - Other Information 15
Signature 16
</TABLE>
Page 2
<PAGE> 3
PART I ITEM 1 - FINANCIAL STATEMENTS
<TABLE>
SECURITY BANC CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED)
<CAPTION>
March 31 Dec 31
2000 1999
-------- ------
(in thousands)
ASSETS
<S> <C> <C>
Cash and due from banks $ 32,051 $ 50,216
Federal funds sold 15,865 10,010
-------- --------
TOTAL CASH AND CASH EQUIVALENT 47,916 60,226
-------- --------
Interest bearing deposits with other banks 1,620 1,560
Investments (Market Value $211,100 @ 3-31-00,
$212,411 @ 12-31-99) 213,154 214,303
Loans: Commercial and agricultural 330,029 321,782
Real estate and mortgage 254,423 254,854
Consumer 76,390 76,389
-------- --------
TOTAL LOANS 660,842 653,025
Less: Allowance for Loan Losses (6,675) (6,964)
-------- --------
NET LOANS 654,167 646,061
Premises and Equipment 9,060 9,292
Other Assets 45,242 44,969
-------- --------
TOTAL ASSETS $971,159 $976,411
======== ========
LIABILITIES
Non-interest bearing deposits $125,036 $129,127
Interest bearing demand deposits 145,152 134,864
Savings deposits 156,234 156,988
Time deposits, $100,000 and over 54,415 54,794
Other time deposits 231,644 220,773
-------- --------
TOTAL DEPOSITS 712,481 696,546
Fed funds purchased and securities sold
under agreement to repurchase 21,480 24,011
Federal Home Loan Bank Term Advances 110,992 131,372
Other liabilities 7,738 5,360
-------- --------
TOTAL LIABILITIES $852,691 $857,289
-------- --------
SHAREHOLDERS'S EQUITY
Common Stock (Par Value $1.5625) $ 19,806 $ 19,800
Shares authorized 18,000,000
Shares issued 12,675,778 - 2000
12,662,952 - 1999
Surplus 22,344 22,302
Retained earnings 92,552 90,084
Accumulated other comprehensive income (7,249) (7,143)
Less: Treasury Stock, 685,778 shares, 2000 8,985 5,921
-------- --------
488,790 shares, 1999
TOTAL SHAREHOLDERS' EQUITY 118,468 119,122
-------- --------
TOTAL LIABILITIES &
SHAREHOLDER'S EQUITY $971,159 $976,411
======== ========
</TABLE>
See notes to Consolidated Condensed Financial Statements
Page 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
2000 1999
-------- --------
(in thousands except
per share data)
<S> <C> <C>
Interest Income $ 17,763 $ 16,628
Interest Expense 7,450 6,496
----------- -----------
NET INTEREST INCOME 10,313 10,132
Provision for loan losses 330 300
----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 9,983 9,832
OTHER OPERATING INCOME
Trust Income 525 471
Service charges on deposit accounts 756 758
Securities, Gains (Losses) 0 20
Other charges, rents and fees 830 735
----------- -----------
TOTAL OTHER OPERATING INCOME 2,111 1,984
OPERATING EXPENSES
Salaries and employee benefits 2,978 2,905
Equipment and occupancy expense 712 670
Other operating expense 2,234 2,216
----------- -----------
TOTAL OPERATING EXPENSE 5,924 5,791
INCOME BEFORE TAXES 6,170 6,025
Income taxes (See Note B) 2,022 1,964
----------- -----------
NET INCOME $ 4,148 $ 4,061
=========== ===========
Basic earnings per share $ .34 $ .33
Diluted earnings per share $ .34 $ .33
Cash dividends per share $ .14 $ .13
Weighted average shares outstanding - Basic 12,034,833 12,171,132
Weighted average shares outstanding - Diluted 12,076,047 12,264,032
</TABLE>
See notes to Consolidated Condensed Financial Statements.
Page 4
<PAGE> 5
PART 1 ITEM 1 - FINANCIAL STATEMENTS
<TABLE>
SECURITY BANC CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<CAPTION>
March 31 March 31
2000 1999
-------- --------
(IN THOUSANDS)
--------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income $ 4,148 $ 4,061
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 303 289
(Gain)/Loss on sale of the following:
Investment Securities available for sale 0 (20)
Other Assets 17 (11)
Provision for loan losses 330 300
Amortization and accretion, net 18 14
Amortization and core deposit intangible 165 168
Change in other operating assets and liabilities, net 894 (5,719)
-------- --------
Total Adjustments 1,727 (4,979)
-------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 5,875 $ (918)
Cash Flows From Investing Activities:
Net (increase) decrease in interest bearing deposits with other banks (60) 1,140
Proceeds from maturities and sales of Investment securities
available for sale 2,997 11,464
Proceeds from maturities of Investments held to maturity 47 1,510
Purchase of:
Investment securities available for sale (2,087) (79,490)
Investment securities held to maturity 0 (1,425)
Increase in loans (8,705) (8,745)
Proceeds from sale of other assets 1,290 4,459
Capital expenditures 6 (181)
-------- --------
NET CASH USED IN INVESTING ACTIVITIES (6,512) (71,268)
Cash Flows from Financing Activities:
Net increase in demand deposits, NOW accounts and
savings accounts 5,441 8,941
Net increase (decrease) in certificates of deposit 10,493 (10,705)
Net (decrease) increase in short-term borrowed funds (7,912) 1,900
Net (decrease) increase in other borrowed money (15,000) 70,000
Net purchase and sale of treasury stock (3,064) (154)
Dividends paid (1,680) (1,582)
Proceeds from exercise of stock options 49 155
-------- --------
NET CASH PROVIDED BY FINANCING ACTIVITIES (11,673) 68,555
Net (decrease) in cash and cash equivalents (12,310) (3,631)
Cash and cash equivalents at beginning of year 60,226 55,402
-------- --------
Cash and cash equivalents at March 31 $ 47,916 $ 51,771
</TABLE>
See Notes to Consolidated Condensed Financial Statements.
Page 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, 1998 $19,768 $22,084 $79,756 $(3,358) $(121)
Net Income 4,061 4,061
Other comprehensive income:
Net unrealized (losses) on securities available for sale
net of income taxes of $608 (1,130) (1,130)
------
Total comprehensive income 2,931
======
Cash dividends on common shares ($.13 per share) (1,582)
Exercise of stock options 18 137
Purchase of Treasury Stock
(154)
===================================================================================================================================
BALANCE AT MARCH 31, 1999 19,786 22,221 82,235 (3,512) (1,251)
===================================================================================================================================
BALANCE AT DECEMBER 31, 1999 19,800 22,302 90,084 (5,921) (7,143)
Net Income 4,148 4,148
Other comprehensive income:
Net unrealized (losses) on securities available for sale
net of income taxes of $57 (106) (106)
------
Total comprehensive income 4,042
======
Cash dividends on Common Shares ($.14 per share) (1,680)
Exercise of stock options 6 42
Purchase of treasury stock (3,064)
===================================================================================================================================
BALANCE AT MARCH 31, 2000 19,806 22,344 92,552 (8,985) (7,249)
===================================================================================================================================
</TABLE>
See Notes to Consolidated Condensed Financial Statements
Page 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, 2000 and
the results of operations and cash flows for the three month periods ended March
31, 2000 and March 31, 1999.
NOTE B - TAXES
The effective tax rate of 33% is lower than the statutory 35% because of
investments made in tax exempt municipal securities. The subsidiaries of
Security Banc Corporation have approximately $25,913,000 invested in tax exempt
municipal securities.
Page 7
<PAGE> 8
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.
From time to time, the Corporation may publish forward-looking statements
relating to such matters as anticipated financial performance, business
prospects, new banking and financial service products and similar matters. The
Private Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements. In order to comply with the terms of the safe
harbor, Corporation notes that a variety of factors could cause its actual
results and experiences to differ materially from the anticipated results or
other expectations expressed in its forward-looking statements. These risks and
uncertainties include, with limitation, changes in interest rates, developments
in the economies served by the Corporation, changes in anticipated credit
quality trends and changes in accounting, tax or regulatory practices or
requirements.
ECONOMIC OUTLOOK
During the first quarter the current economic expansion completed its ninth year
and is into record territory. The driving force for the expansion continues to
be the robust spending of the consumer coupled with inventory buildup and
strength in exports. Gross Domestic Product (GDP) rose 4.4% for 1999 and is on
the same pace for this year. Unemployment remains slightly above 4% and
inflation is ranging around 2.5%.
The strength of consumer spending has been in auto purchases and home related
furnishings. Home sales, while modestly slower due to high rates, continue to be
strong and prices supported by a general lack of oversupply. Spending continues
to outpace income as consumer debt climbs and savings rates drop. The strong
spending should continue as long as income growth remains solid and the wealth
factor grows with the equity markets.
Over the last nine months, the Federal Reserve has raised rates on five
occasions pushing the prime rate up by 125 basis points. The Fed has attempted
to dampen the economic growth to stave off inflation, which has remained low.
However, some factors do indicate that inflationary pressure is building. Strong
product demand and rising factory capacity utilization is leading to firmer
pricing as manufacturers are positioned to pass on high labor and other
production related costs. The stronger global economy will continue to keep
demand strong.
On the local front unemployment has moved up slightly but is still relatively
low at 4.5%. The agricultural picture has brightened as commodity prices have
rebounded. Local companies appear to be doing well.
RESULTS OF OPERATIONS
Net income was $4,148,000 for the first three months of 2000 compared to
$4,061,000 for the same period of 1999. Basic earnings per share were $.34 for
the first three months, a 3% increase over last year's $.33. Diluted earnings
per share were $.34 for the first three months, a 4% increase over last year's
$.33.
Total assets were $971,159,000 at March 31, 2000 compared to 1999's assets of
$953,063,000. For the first three months of 2000, return on average equity was
14.08% and return on average assets was 1.72%.
Interest and fees on loans increased to $14,080,000 for the three months ended
March 31, 2000 compared to $13,291,000 for the three months ending March 31,
1999. Average loans were $655,426,000 and $620,245,000 at March 31, 2000 and
1999 respectively, a 6% increase.
Income from securities increased to $3,385,000 from $2,801,000 for the three
months ended March 31, 2000 and 1999 respectively. The average outstanding for
securities were $212,596,000 and $189,610,000 at March 31, 2000 and 1999
respectively, a 12% increase.
Interest income from Fed Funds sold and other interest bearing assets decreased
to $298,000 at March 31, 2000 compared to $536,000 for the three months ended
March 31, 1999. The average outstanding for Fed Funds and interest bearing
deposits were $19,136,000 and $43,547,000 at March 31, 2000 and 1999
respectively, a 56% decrease.
Interest bearing liabilities average outstanding at March 31, 2000 were
$715,640,000 compared to $675,581,000 at March 31, 1999 Interest expense
increased to $7,450,000 at March 31, 2000 from $6,496,000 at March 31, 1999 a
15% increase.
Page 8
<PAGE> 9
Net interest income on a fully taxable equivalent basis for the first three
months of 2000 was $10,489,000 compared to the $10,309,000 realized in the same
period of 1999.
Market value per share was $24.00 at March 31, 2000 as compared to $41.50 at
March 31, 1999. Book value per share was $9.88 at March 31, 2000 and $9.81 at
March 31, 1999. The efficiency ratio was 46% and 46% respectively for March 31,
2000 and March 31, 1999.
Page 9
<PAGE> 10
PART 1 ITEM 2 (CONT'D.)
<TABLE>
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
<CAPTION>
For Period Ending March 31
2000 (000's) 1999
---- ----
<S> <C> <C>
Balance at beginning of period 6,964 6,883
Charge-offs:
Domestic:
Commercial, financial and agriculture (469) (278)
Real estate - construction
Real estate - mortgage (31) (0)
Installment loans to individuals (220) (278)
Lease financing 0 0
------ ------
(720) (556)
Recoveries:
Domestic:
Commercial, financial and agriculture 10 16
Real estate - construction
Real estate - mortgage 0 0
Installment loans to individuals 91 54
Lease financing 0 0
------ ------
101 70
Net charge-offs (619) (486)
Other adjustments 0 36
Additions charged to operations 330 300
------ ------
Balance at end of period $6,675 $6,733
Ratio of net charge-offs during the period of average loans
outstanding during the period (.09)% (.08)%
</TABLE>
According to FASB No. 114, 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. The
following table presents data concerning loans at risk at the end of each
period. (000s).
<TABLE>
<CAPTION>
March 31, December 31
--------- -------------------------------------
2000 1999 1998 1997 1996
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Non-accrual loans $2,273 $2,162 $2,154 $3,417 $4,123
Accruing loans past due
90 days or more 1,697 2,554 1,371 1,537 1,709
Restructured loans 644 311 322 333 0
Other real estate owned 1,573 1,928 1,531 258 256
</TABLE>
Total other operating income was $2,111,000 and $1,984,000 during the first
three months of 2000 and 1999 respectively. Trust income increased 11%. There
was no increase in service charges on deposits, and a 13% increase in other
charges, rents and fees. Total securities gains for the first three months of
2000 were $0. Total securities gains for the same period of 1999 were $20,000 or
$13,000 after tax.
Page 10
<PAGE> 11
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 $133,000 during the first three months, 2%
over the similar period of 1999. Salaries, wages and employee benefits increased
3% over 1999. Equipment and net occupancy expenses during the first three months
were $712,000 and $670,000 for 2000 and 1999 respectively, which reflects a 6%
increase. Other operating expenses increased $18,000 compared to 1999.
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 material changes (5% or greater) on the consolidated condensed balance
sheets are:
Cash and due from Banks - (decrease of 36%). With Y2K over, the amount of
cash-on-hand has been reduced.
Federal Funds Sold - (increase of 58%). Excess cash on hand not invested in
securities.
Interest bearing demand deposits (increase of 8%) Due to increase in public
fund deposits and Trust Department deposits.
Fed funds purchased and securities sold under agreement to repurchase -
(decrease of 11%). Due to decrease of repurchase agreements.
FHLB Advances (decrease of 16%). $15,000,000 of notes matured first quarter
2000.
Other liabilities - (increase 44%). Due to increase in FIT payable.
Treasury stock - (increase 52%). Due to repurchase of common shares.
CAPITAL RESOURCES
The table below illustrates the Company's subsidiary banks regulatory
capital ratios at March 31, 2000:
(000s)
<TABLE>
<S> <C>
Tier 1 Capital $114,565
Tier 2 Capital 6,675
--------
TOTAL QUALIFYING CAPITAL $121,240
--------
Risk Adjusted Total Assets (including off balance exposures) $657,537
========
Tier 1 Risk-Based Capital Ratio 17.42%
Total Risk-Based Capital Ratio 18.44%
Tier 1 Leverage Ratio 11.88%
</TABLE>
LIQUIDITY
The subsidiaries of the Corporation Static Gap analysis is presented on
pages 12, 13, and 14.
Page 11
<PAGE> 12
LIQUIDITY 10-Q 3/31/00
<TABLE>
SECURITY NATIONAL "NEXT FOUR QUARTERS"
ASSET/LIABILITY MANAGEMENT
STATIC GAP ANALYSIS (000s)
<CAPTION>
IMMEDIATELY ADJUSTABLE END OF 6/00 END OF 9/00 END OF 12/00 END OF 3/01
RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE
------- ---- ------- ---- ------- ---- ------- ---- ------- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total Investment Securities 0 0.00% 1,555 6.43% 1,524 6.44% 1,599 6.32% 1,524 6.44%
Total Short Term Investment 0 0.00% 25,800 5.40% 0 0.00% 0 0.00% 0 0.00%
Net Loans 66,024 9.41% 33,449 9.10% 21,627 8.76% 18,428 8.84% 17,160 8.97%
Total Earning Assets 66,024 9.41% 60,804 7.46% 23,151 8.61% 20,027 8.63% 18,684 8.76%
Total Non-Earning Assets 640 9.43% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Assets 66,664 9.41% 60,804 7.46% 23,151 8.61% 20,027 8.63% 18,684 8.76%
Total Noninterest Bearing Deposits 0 0.00% 0 0.00% 0 0.00% 0 0.00% 9,589 0.00%
Total Interest Bearing Deposits 3,519 4.41% 84,080 3.75% 40,015 4.34% 16,719 5.17% 22,659 5.47%
Total Deposits 3,519 4.41% 84,080 3.75% 40,015 4.34% 16,719 5.17% 32,248 3.84%
Total Other Interest Bearing Liabilities 22,189 4.90% 5,338 5.44% 338 6.00% 675 6.00% 675 6.00%
Total Other Liabilities 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Liabilities 25,708 4.83% 89,418 3.85% 40,353 4.36% 17,394 5.20% 32,923 3.89%
Total Equity Capital 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Liabilities and Capital 25,708 4.83% 89,418 3.85% 40,353 4.36% 17,394 5.20% 32,923 3.89%
Interval GAP 40,956 (28,614) (17,202) 2,633 (14,238)
Cumulative GAP 40,956 12,342 (4,860) (2,227) (16,465)
Interval GAP/Total Assets 6.48% (4.53)% (2.72)% 0.42% (2.25)%
Cumulative GAP/Total Assets 6.48% 1.95% (0.77)% (0.35)% (2.60)%
Interval GAP/Earning Assets 6.70% (4.86)% (2.92)% 0.45% (0.79)%
Cumulative GAP/Earning Assets 6.70% 1.84% (1.08)% (0.63)% (1.42)%
Interval Spread: Earning Assets 4.70% 3.62% 4.25% 3.43% 3.28%
Interval Spread: Total Assets 4.58% 3.62% 4.25% 3.43% 4.88%
</TABLE>
Page 12
<PAGE> 13
LIQUIDITY 10-Q 3/31/00
<TABLE>
THIRD SAVINGS "NEXT FOUR QUARTERS"
ASSET/LIABILITY MANAGEMENT
STATIC GAP ANALYSIS (000s)
<CAPTION>
IMMEDIATELY ADJUSTABLE END OF 6/00 END OF 9/00 END OF 12/00 END OF 3/01
RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE
------- ---- ------- ---- ------- ---- ------- ---- ------- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total Investment Securities 2,360 7.00% 278 6.20% 7 8.75% 0 0.00% 0 0.00%
Total Short Term Investment 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Net Loans 30,962 9.77% 6,904 8.00% 9,515 8.00% 6,596 8.13% 6,241 8.41%
Total Earning Assets 33,322 9.57% 7,182 7.93% 9,522 8.01% 6,596 8.13% 6,241 8.41%
Total Non-Earning Assets 972 10.25% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Assets 34,293 9.59% 7,182 7.93% 9,522 8.01% 6,596 8.13% 6,241 8.41%
Total Noninterest Bearing Deposits 0 0.00% 3,072 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Interest Bearing Deposits 1,984 6.06% 10,022 4.61% 18,959 5.06% 10,055 5.26% 8,101 5.58%
Total Deposits 1,984 6.06% 13,094 3.53% 18,959 5.06% 10,055 5.26% 8,101 5.58%
Total Other Interest Bearing Liabilities 19,227 5.89% 190 7.40% 3,000 6.25% 5,000 6.56% 0 0.00%
Total Other Liabilities 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Liabilities 21,211 5.91% 13,284 3.58% 21,959 5.22% 15,055 5.69% 8,101 5.58%
Total Equity Capital 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Liabilities and Capital 21,211 5.91% 13,284 3.58% 21,959 5.22% 15,055 5.69% 8,101 5.58%
Interval GAP 12,630 (6,102) (12,438) (8,459) (1,860)
Cumulative GAP 12,630 6,528 (5,909) (14,368) (16,229)
Interval GAP/Total Assets 6.64% (3.21)% (6.54)% (4.45)% (0.98)%
Cumulative GAP/Total Assets 6.64% 3.43% (3.11)% (7.56)% (8.53)%
Interval GAP/Earning Assets 6.84% (1.78)% (7.30)% (4.96)% (1.09)%
Cumulative GAP/Earning Assets 6.84% 5.06% (2.23)% (7.20)% (8.29)%
Interval Spread: Earning Assets 3.67% 3.27% 2.78% 2.44% 2.83%
Interval Spread: Total Assets 3.69% 4.35% 2.78% 2.44% 2.83%
</TABLE>
Page 13
<PAGE> 14
LIQUIDITY 10-Q 3/31/00
<TABLE>
CITIZENS NATIONAL "NEXT FOUR QUARTERS"
ASSET/LIABILITY MANAGEMENT
STATIC GAP ANALYSIS (000s)
<CAPTION>
IMMEDIATELY ADJUSTABLE END OF 6/00 END OF 9/00 END OF 12/00 END OF 3/01
RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE RUNOFFS RATE
------- ---- ------- ---- ------- ---- ------- ---- ------- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total Investment Securities 9,429 5.78% 25 7.13% 10 7.10% 665 5.69% 990 5.35%
Total Short Term Investment 7,065 5.50% 0 0.00% 0 0.00% 500 6.00% 1,120 6.77%
Net Loans 15,598 10.08% 3,745 8.24% 9,015 8.18% 2,453 8.69% 7,719 8.45%
Total Earning Assets 32,092 7.81% 3,770 8.23% 9,025 8.17% 3,618 7.77% 9,829 7.95%
Total Non-Earning Assets 664 9.06% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Assets 32,756 7.84% 3,770 8.23% 9,025 8.17% 3,618 7.77% 9,829 7.95%
Total Noninterest Bearing Deposits 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Interest Bearing Deposits 970 5.14% 36,066 3.04% 15,270 5.46% 9,458 5.67% 30,194 3.35%
Total Deposits 970 5.14% 36,066 3.04% 15,270 5.46% 9,458 5.67% 30,194 3.35%
Total Other Interest Bearing Liabilities 250 5.75% 100 5.00% 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 1,220 5.26% 36,166 3.04% 15,270 5.46% 9,458 5.67% 30,194 3.35%
Total Equity Capital 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total Liabilities and Capital 1,220 5.26% 36,166 3.04% 15,270 5.46% 9,458 5.67% 30,194 3.35%
Interval GAP 31,536 (32,396) (6,245) (5,840) (20,365)
Cumulative GAP 31,536 (859) (7,104) (12,944) (33,309)
Interval GAP/Total Assets 19.07% (19.59)% (3.78)% (3.53)% (12.31)%
Cumulative GAP/Total Assets 19.07% (0.52)% (4.30)% (7.83)% (20.14)%
Interval GAP/Earning Assets 20.96% (22.02)% (4.24)% (3.97)% (13.84)%
Cumulative GAP/Earning Assets 20.96% (1.06)% (5.31)% (9.28)% (23.12)%
Interval Spread: Earning Assets 2.55% 5.19% 2.71% 2.09% 4.59%
Interval Spread: Total Assets 2.57% 5.19% 2.71% 2.09% 4.59%
</TABLE>
Page 14
<PAGE> 15
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
of Security Holders
The annual meeting of Shareholders of Security Banc Corporation
was held in Springfield, Ohio on April 18, 2000.
Three Directors of Class III were elected to serve until the
Annual Meeting of Shareholders of 2003.
ITEM 5 Other Information
The Security Banc Corporation (STYB) Board of Directors has
authorized the Corporation to acquire up to 360,000 shares of its
Common Stock, representing up to approximately 3% of the total
common shares outstanding.
The shares will be acquired from time to time in open market
transactions, in block purchases or otherwise, and will be
available for general corporate purposes. The timing, volume and
price of purchases will be at the discretion of management and
the Security Banc Corporation Board, and will also be contingent
upon overall financial and market conditions.
ITEM 6 Exhibits and Reports on Form 8-K
Financial Data Schedule as required under Article 9 of Regulation
S-X
Page 15
<PAGE> 16
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, 2000
Page 16
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 32,051
<INT-BEARING-DEPOSITS> 1,620
<FED-FUNDS-SOLD> 15,865
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 185,450
<INVESTMENTS-CARRYING> 27,704
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<LOANS> 660,842
<ALLOWANCE> 6,675
<TOTAL-ASSETS> 971,159
<DEPOSITS> 712,481
<SHORT-TERM> 40,707
<LIABILITIES-OTHER> 7,738
<LONG-TERM> 91,765
0
0
<COMMON> 19,806
<OTHER-SE> 98,662
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<INTEREST-DEPOSIT> 5,628
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<INTEREST-INCOME-NET> 10,313
<LOAN-LOSSES> 330
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 5,924
<INCOME-PRETAX> 6,171
<INCOME-PRE-EXTRAORDINARY> 4,148
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,148
<EPS-BASIC> .34
<EPS-DILUTED> .34
<YIELD-ACTUAL> 8.11
<LOANS-NON> 2,273
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<ALLOWANCE-CLOSE> 6,675
<ALLOWANCE-DOMESTIC> 3,743
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 2,932
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