<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996.
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to _____________
Commission file number: 0-13585
NATIONAL CITY BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
INDIANA 35-1632155
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P.O. BOX 868, EVANSVILLE, INDIANA 47705-0868
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (812) 464-9800
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 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 ( )
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
CLASS OUTSTANDING AT NOVEMBER 13, 1996
(Common stock,
$1.00 Stated value) 9,481,092
<PAGE>
NATIONAL CITY BANCSHARES, INC.
INDEX
PAGE NO.
PART I - FINANCIAL INFORMATION
Condensed consolidated statements of
financial position-
September 30, 1996, December 31, 1995,
and September 30, 1995 1
Condensed consolidated statements of income-
three months and nine months ended
September 30, 1996 and 1995 2
Condensed consolidated statements of cash flows-
nine months ended September 30, 1996 and 1995 3
Notes to condensed consolidated financial statements 6
Management's discussion and analysis of financial
condition and results of operations 8
PART II - OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K 13
SIGNATURES 13
<PAGE>
NATIONAL CITY BANCSHARES, INC. and Subsidiaries
Condensed Consolidated Statements of Financial Position
(Dollar Amounts Other Than Share Data in Thousands)
<TABLE>
<CAPTION>
September December September
30 31 30
1996 1995 1995
---------- -------- --------
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 38,436 $ 38,944 $ 29,759
Time deposits in banks 2,573 5,023 6,783
Securities held to maturity 143,137 89,918 111,448
Securities available for sale 107,966 147,414 111,923
Nonmarketable equity securities 4,766 3,955 3,064
Federal funds sold 3,400 1,420 1,850
Loans 728,888 664,285 647,527
Less: Allowance for loan losses 5,527 5,323 5,274
---------- -------- --------
Loans-net 723,361 658,962 642,253
Premises and equipment 18,917 14,739 14,036
Other real estate owned 234 383 439
Other assets 25,921 18,682 18,304
---------- -------- --------
TOTAL ASSETS $1,068,711 $979,440 $939,859
---------- -------- --------
---------- -------- --------
LIABILITIES
Deposits:
Noninterest-bearing demand $ 99,245 $101,409 $ 85,965
Interest-bearing savings and time 724,582 673,311 670,197
---------- -------- --------
Total deposits 823,827 774,720 756,162
Federal funds purchased and securities
sold under agreements to repurchase 65,051 52,829 34,730
Notes issued to the U.S. Treasury 3,222 2,769 3,510
Other borrowings 48,271 20,409 19,829
Dividends payable 1,447 1,175 985
Other liabilities 9,859 8,227 7,854
---------- -------- --------
Total liabilities 951,677 860,129 823,070
---------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
SHAREHOLDERS' EQUITY
<S> <C> <C> <C> <C> <C> <C>
Common stock-$1.00 stated value 9,045 9,394 8,950
9/30/96 12/31/95 9/30/95
---------- ---------- ----------
Authorized 20,000,000 20,000,000 20,000,000
Outstanding 9,045,297 9,394,396 8,949,980
Capital surplus 46,019 54,794 45,377
Retained earnings 62,327 54,818 62,565
Unrealized gain (loss) on securities
available for sale (357) 305 (103)
---------- -------- --------
Total shareholders' equity 117,034 119,311 116,789
---------- -------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,068,711 $979,440 $939,859
---------- -------- --------
---------- -------- --------
</TABLE>
The accompanying notes are an integral part of these statements.
1
<PAGE>
NATIONAL CITY BANCSHARES, INC. and Subsidiaries
Condensed Consolidated Statements of Income
(Dollar Amounts Other Than Share Data in Thousands)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended Ended
September 30 September 30
----------------- -----------------
1996 1995 1996 1995
------- ------- ------- -------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans $16,134 $14,650 $46,961 $40,974
Interest and dividends on securities 3,684 3,464 10,922 10,607
Interest on federal funds sold 8 182 171 466
Interest on other investments 30 141 129 435
------- ------- ------- -------
Total interest income 19,856 18,437 58,183 52,482
------- ------- ------- -------
INTEREST EXPENSE
Interest on deposits 7,304 7,485 22,070 21,291
Interest on funds borrowed 1,339 668 3,422 1,424
------- ------- ------- -------
Total interest expense 8,643 8,153 25,492 22,715
------- ------- ------- -------
NET INTEREST INCOME 11,213 10,284 32,691 29,767
Provision for loan losses 280 68 801 115
------- ------- ------- -------
Net interest income after
provision for loan losses 10,933 10,216 31,890 29,652
------- ------- ------- -------
NONINTEREST INCOME
Trust income 421 387 1,280 1,147
Service charges on deposit accounts 946 748 2,526 2,002
Security gains (losses) 9 23 32 25
Other 706 621 1,904 1,855
------- ------- ------- -------
Total noninterest income 2,082 1,779 5,742 5,029
------- ------- ------- -------
NONINTEREST EXPENSE
Salaries and employee benefits 3,852 4,002 11,318 11,178
Premises and equipment 1,006 922 2,902 2,765
Assessments of the FDIC 649 (6) 758 859
Other 1,792 1,409 5,169 4,888
------- ------- ------- -------
Total noninterest expense 7,299 6,327 20,147 19,690
------- ------- ------- -------
Income before income taxes 5,716 5,668 17,485 14,991
Income taxes 1,903 2,024 5,933 5,266
------- ------- ------- -------
NET INCOME $ 3,813 $ 3,644 $11,552 $ 9,725
------- ------- ------- -------
------- ------- ------- -------
Earnings per common share $0.42 $0.39 $1.26 $1.04
Weighted average shares outstanding 9,059,677 9,397,686 9,144,629 9,322,793
</TABLE>
The accompanying notes are an integral part of these statements.
2
<PAGE>
NATIONAL CITY BANCSHARES, INC. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
Nine Months
Ended
September 30
-------------------
1996 1995
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net Income $ 11,552 $ 9,725
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization 251 1,034
Depreciation 1,292 1,204
Provision for loan losses 801 115
Writedown of other real estate owned 61 61
Securities losses (gains) (32) (25)
(Gain) on sale of premises and equipment (21) (30)
(Gain) loss on sale of other real estate owned 1 46
Gain (loss) on sale of subsidiary - (206)
Increase (decrease) in deferred taxes 329 95
Changes in assets and liabilities:
(Increase) decrease in income earned
but not collected 29 (47)
(Increase) decrease in other assets (1,126) 38
Increase (decrease) in accrued interest payable 49 615
Increase (decrease) in other liabilities 1,084 420
-------- --------
Net cash flows provided by operating activities 14,270 13,045
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Net (increase) decrease in interest-bearing time
deposits in banks 3,938 6,509
Proceeds from matured securities held to maturity 7,938 17,688
Proceeds from matured securities available for sale 48,698 33,130
Proceeds from sales of securities held to maturity 1,200 -
Proceeds from sales of securities available for sale 6,155 -
Purchases of securities held to maturity (38,862) (14,019)
Purchases of securities available for sale (17,861) (6,839)
Purchases of nonmarketable equity securities (762) (770)
(Increase) decrease in federal funds sold (1,880) 3,175
(Increase) decrease in loans made to customers (41,008) (61,457)
Capital expenditures (5,132) (2,521)
Proceeds from sale of other real estate owned 109 376
Proceeds from sale of premises and equipment 26 59
Purchase of subsidiary, net of cash and due from banks (10,808) (309)
Cash transferred to buyer in sale of subsidiary - (10,370)
-------- --------
Net cash flows provided by (used in)
investing activities (48,249) (35,348)
-------- --------
</TABLE>
(Continued on next page)
The accompanying notes are an integral part of these statements.
3
<PAGE>
NATIONAL CITY BANCSHARES, INC. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Continued)
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
Nine Months
Ended
September 30
-------------------
1996 1995
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
<S> <C> <C>
Net increase (decrease) in deposits $ 5,828 $(14,133)
Net increase (decrease) in federal funds
purchased and securities sold under
agreements to repurchase 12,222 9,602
Net proceeds (payments) in notes issued to
the U.S. Treasury 453 835
Proceeds from other borrowings 29,557 16,836
Payments on other borrowings (1,695) (7)
Dividends paid (3,770) (2,613)
Repurchase of common stock (10,318) (520)
Sale of common stock 1,194 795
-------- --------
Net cash flows provided by (used in)
financing activities 33,471 10,795
-------- --------
Net increase (decrease) in cash and cash equivalents (508) (11,508)
Cash and cash equivalents at beginning of period 38,944 41,267
-------- --------
Cash and cash equivalents at end of period $ 38,436 $ 29,759
-------- --------
-------- --------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for:
Interest $25,443 $22,100
Income taxes 6,007 4,517
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING
AND FINANCIAL ACTIVITIES
Change in allowance for unrealized gain
(loss) on securities available for sale $1,090 $ 4,037
Increase (decrease) in deferred taxes
attributable to securities available for sale (428) 1,545
Other real estate acquired in settlement of loans 22 252
Transfer from fixed assets to other real estate owned - 41
Transfer from other real estate owned to other assets - 7
</TABLE>
(Continued on next page)
The accompanying notes are an integral part of these statements
4
<PAGE>
NATIONAL CITY BANCSHARES, INC. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Continued)
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
Nine Months
Ended
September 30
-------------------
1996 1995
-------- --------
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING
AND FINANCIAL ACTIVITIES (Continued)
<S> <C> <C>
Purchase of subsidiary:
Purchase price $12,038 $ 896
------- --------
------- --------
Assets acquired:
Cash and cash equivalents $ 1,230 $ 587
Interest-bearing deposits in banks 1,488 399
Securities 22,187 3,753
Federal funds sold 100 1,975
Loans 24,214 11,069
Premises and equipment 364 355
Income earned but not collected 688 146
Other assets 5,643 1,962
Liabilities assumed:
Deposits (43,279) (16,742)
Accrued interest payable (306) (92)
Deferred taxes payable - (25)
Other liabilities (291) (49)
Common stock issued - (2,442)
------- --------
Accounts payable $12,038 $ 896
------- --------
------- --------
Sale of branch:
Cash paid $10,244
-------
-------
Assets disposed:
Cash (126)
Loans (25)
Premises and equipment (33)
Other assets (266)
Liabilities assumed by buyer:
Deposits 10,898
Accrued interest payable (3)
Other liabilities 5
Gain on sale of branch (206)
-------
$10,244
-------
-------
</TABLE>
The accompanying notes are an integral part of these statements.
5
<PAGE>
NATIONAL CITY BANCSHARES, INC. and Subsidiaries
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
The accompanying unaudited condensed consolidated financial statements
include the accounts of National City Bancshares, Inc. and its
subsidiaries (collectively, the "Corporation"). At September 30,
1996, the Corporation owned 100% of ten commercial bank subsidiaries,
one savings association subsidiary and two non-financial institutions
subsidiaries. All significant intercompany transactions are
eliminated in consolidation.
The financial statements have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission ("SEC"). While
the financial statements are unaudited, they do reflect all
adjustments which, in the opinion of management, are necessary for a
fair statement of the results of operations for the interim periods.
All such adjustments are of a normal recurring nature. Pursuant to
SEC rules, certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted from
these financial statements unless significant changes have taken place
since the end of the most recent fiscal year. For this year, the
accompanying financial statements and notes thereto should be read in
conjunction with the Corporation's financial statements and notes for
the year ended December 31, 1995 included in the Corporation's Annual
Report on Form 10-K as filed with the SEC.
Because the results from commercial banking operations are so closely
related and responsive to changes in economic conditions, the results
for any interim period are not necessarily indicative of the results
that can be expected for the entire year.
NOTE 2
In the normal course of business, there are outstanding various other
commitments and contingent liabilities which are not reflected in the
accompanying financial statements. The Corporation uses the same
credit policies in making commitments and conditional obligations as
it does for other instruments.
<TABLE>
<CAPTION>
9/30/96 12/31/95
----------- -----------
<S> <C> <C>
Standby letters of credit $14,770,000 $17,825,000
Commitments to extend credit $94,544,000 $77,663,000
</TABLE>
6
<PAGE>
NOTE 3
A five percent stock dividend was paid December 15, 1995, to
shareholders of record December 1, 1995. A two-for-one stock split
was issued April 19, 1996, to shareholders of record April 8, 1996.
All weighted average shares and per share data presented herein have
been restated for the effects of this stock dividend and stock split.
NOTE 4
On August 31, 1996, the Corporation acquired The First National Bank
of Wayne City, a $52 million bank located in Wayne City, Illinois.
This acquisition was accounted for as a purchase, and the results of
operations of The First National Bank of Wayne City since the
acquisition have been included in the financial statements. The
excess of the acquisition cost over the fair value of net assets
acquired in the amount of $5,605,000 will be amortized over 15 years
using the straight-line method.
NOTE 5
Other borrowings increased $27,862,000 since December 31, 1995. The
significant borrowings obtained during 1996 include $15,000,000
borrowed to finance construction to enlarge the building complex
housing the Corporation's offices and the main office of its lead bank
in Evansville, Indiana and $10,000,000 to fund loan growth.
7
<PAGE>
NATIONAL CITY BANCSHARES, INC. and Subsidiaries
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
NET INCOME
Net income for the quarter ended September 30, 1996, was $3,813,000,
or $0.42 per share, compared to $3,644,000, or $0.39 per share, for
the third quarter of 1995. This is an increase of $169,000, or 4.6
percent, in net income. For the first nine months of 1996, net income
was $11,552,000, or $1.26 per share, compared to $9,725,000, or $1.04
per share, for the first nine months of 1995, an increase of
$1,827,000, or 18.8 percent in net income. The weighted average
number of shares outstanding was 9,059,677 and 9,144,629 for the three
and nine months, respectively, ended September 30, 1996, compared to
9,397,686 and 9,322,793 during the like periods last year. Stock has
been repurchased by the Corporation for the dividend reinvestment
program and during 1996 for the stock repurchase program announced
January 3, 1996.
NET INTEREST INCOME
Net interest income in the third quarter of 1996 increased $1,200,000,
or 11.3 percent, on a tax equivalent basis, from the year-ago quarter.
For the first nine months of 1996, net interest income increased
$3,509,000, or 11.4 percent, on a tax equivalent basis, from the same
period last year. Average earning assets were $957 million and $888
million, an increase of $69 million, or 7.8 percent, during the third
quarters of 1996 and 1995, respectively. For the first nine months of
1996 and 1995, average earning assets were $937 million and $864
million, respectively. Average federal funds sold decreased $10
million, or 90.9 percent, for the quarter. Average interest-bearing
deposits in banks decreased $8 million or 80.0 percent for the
quarter. Loans increased an average of $75 million, or 11.8 percent,
for the quarter.
The increased net interest income was due to a change in the mix of
average earning assets. Total interest income increased $6,286,000,
or 11.7 percent, on a tax equivalent basis, during the first nine
months of 1996 from the same period of 1995, compared to a $2,777,000,
or 12.2 percent increase in total interest expense. The increase in
interest income resulted from higher rates of interest earned and a
change in the mix and total of average earning assets.
The net interest margin increased to 4.93 percent for the third
quarter of 1996, compared to 4.76 percent during the year-ago quarter
and to 4.91 percent for the first nine months of 1996 from 4.78
percent during the same period last year.
8
<PAGE>
UNDERPERFORMING ASSETS
Listed below is a two-year comparison of the underperforming assets.
<TABLE>
<CAPTION>
9/30/96 9/30/95
---------- ----------
<S> <C> <C>
Nonaccrual loans $3,217,000 $1,273,000
Restructured loans 192,000 146,000
90 days past due loans 1,177,000 622,000
---------- ----------
Total underperforming loans 4,586,000 2,041,000
Nonaccrual securities:
Agency-issued CMO 35,000 -
Other real estate held 234,000 439,000
---------- ----------
Total underperforming assets $4,855,000 $2,480,000
---------- ----------
---------- ----------
</TABLE>
Past due 90 days or more, nonaccrual, and renegotiated loans have
increased from 0.3 percent of total loans at September 30, 1995, to
0.6 percent as of September 30, 1996. Of the loans in this category,
48.1 and 60.5 percent were secured by real estate at September 30,
1996 and 1995, respectively. Potential problem loans, other than
underperforming loans, amounted to $35,432,000 at September 30, 1996
and $26,326,000 at September 30, 1995.
ALLOWANCE FOR LOAN LOSSES
Net charge-offs amounted to $413,000 during the third quarter of 1996
and $976,000 during the first nine months of 1996, compared to net
recoveries of $26,000 and $120,000 in the year-earlier periods.
The provision for loan losses during the first nine months of 1996 was
$801,000, compared to $115,000 from the comparable year-ago period.
The provision is based on the quarterly review of the allowance for
possible loan losses. Some of the factors used in this review include
current economic conditions and forecasts, risk by type of loan,
previous loan loss experience, and evaluation of specific borrowers
and collateral. As of September 30, 1996, management considered the
allowance for loan losses adequate to provide for potential losses.
NONINTEREST INCOME
Noninterest income for the third quarter of 1996 increased $303,000,
or 17.0 percent, and for the first nine months of 1996 increased
$713,000, or 14.2 percent from the year-ago periods. Trust income
increased $133,000 or 11.6 percent, and service charges on deposit
accounts increased $524,000, or 26.2 percent, from the year ago period
due to changes in fee schedules. Net security gains were $32,000 for
the first nine months of 1996, compared to $25,000 for the same period
1995. Other noninterest income increased $49,000, or 2.6 percent,
during 1996.
9
<PAGE>
NONINTEREST EXPENSE
Noninterest expense increased $972,000, or 15.4 percent and $457,000
or 2.3 percent in the third quarter and the first nine months of 1996,
respectively. Salaries and employee benefits decreased $150,000, or
3.8 percent for the third quarter and increased $140,000, or 1.3
percent for the first nine months of 1996. The decrease was primarily
due to a reclassification of $129,000 and an additional $65,000 in
expense related to a one-time contract settlement paid in 1995.
Expenses of premises and equipment increased $84,000, or 9.1 percent
for the third quarter and $137,000, or 5.0 percent, during 1996. The
cost of Federal Deposit Insurance increased $655,000 for the quarter,
due to a one-time assessment of $595,000 on September 30, 1996 for the
Savings Association Insurance Fund, and decreased $101,000, or 11.8
percent, for the first nine months of 1996, due to a lower premium
rate. Other items in this category increased $281,000, or 5.7
percent, primarily due to the reclassification of the contract.
FINANCIAL POSITION ANALYSIS
Cash and cash equivalents increased $8,677,000, or 29.2 percent, and
interest-bearing deposits in banks decreased $4,210,000, or 62.1
percent, during the past year. Federal funds sold increased
$1,550,000, or 83.8 percent.
Securities increased $29,434,000, or 13.0 percent, during the past
year. The largest increase was in nontaxable municipals which
increased $51,642,000, or 123.2 percent. U.S. Government Agencies
increased $9,058,000, or 7.9 percent; and nonmarketable equity
securities increased $1,291,000, or 42.1 percent. The increase in
equity securities was primarily due to the purchase of additional
stock in two Federal Home Loan Banks. Marketable equity securities
increased $750,000, or 58.4 percent; and taxable municipals increased
$5,000, or 0.2 percent. Decreases were noted in U.S. Treasury
securities which decreased $27,871,000, or 69.4 percent, and in
corporate and mortgage-backed securities which decreased $5,018,000,
or 22.9 percent. The market value adjustment on securities available
for sale decreased $423,000, or 247.4 percent. Amortized cost and
fair values of securities at September 30, 1996, with dollar amounts
in thousands are on the following page:
10
<PAGE>
Securities held to maturity:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
--------- ---------- ---------- --------
<S> <C> <C> <C> <C>
U. S. Government and
agency securities $ 24,865 $ 110 $ 2 $ 24,973
State and municipal
securities:
Taxable 3,021 31 41 3,011
Nontaxable 93,550 1,419 1,024 93,945
Corporate securities 13,687 87 40 13,734
Mortgage-backed securities 8,014 137 22 8,129
-------- ------ ------ --------
$143,137 $1,784 $1,129 $143,792
-------- ------ ------ --------
-------- ------ ------ --------
</TABLE>
Securities available for sale:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
--------- ---------- ---------- --------
<S> <C> <C> <C> <C>
U.S. Government and
agency securities $ 46,008 $ 299 $ 227 $ 46,080
Corporate securities 3,064 3 - 3,067
Mortgage-backed securities 57,864 258 742 57,380
Marketable equity securities 2,035 - 185 1,850
-------- ------ ------ --------
$108,971 $ 560 $1,154 $108,377
-------- ------ ------ --------
-------- ------ ------ --------
</TABLE>
At September 30, 1996, the security portfolio included $5,144,000 in
structured notes, which were comprised of $973,000 in an indexed
amortizing note that has a price volatility comparable to a callable
U.S. Government agency of like maturity; $575,000 in delevered
floating notes; and $3,596,000 in ratchet capped floating rate notes.
These securities have risk characteristics which are well within the
constraints of the non-structured securities held in the security
portfolio.
During the second quarter of 1995, the Corporation transferred
$635,000 of securities classified as held to maturity to the available
for sale category. These securities were rated as high-risk; and in
accordance with the Federal Financial Institutions Examination
Council, were redesignated as available for sale. The unrealized loss
on these securities at the time of transfer was $42,000. In
accordance with the requirements of Statement of Financial Accounting
Standards No. 115, these securities are now accounted for at fair
value, and any unrealized gain or loss net of deferred tax effect is
reflected as a separate component of shareholders' equity.
11
<PAGE>
As part of its strategic plan, the Corporation has increased total
loans while maintaining competitive rates. Loans increased
$81,361,000, or 12.6 percent, during the past year. All types of
loans increased with the largest increase being in loans secured by
real estate which increased $28,985,000, or 8.6 percent. Commercial
loans increased $24,610,000, or 17.5 percent; and consumer loans
increased $17,940,000, or 14.9 percent. Lease financing increased to
$13,461,000 up from $6,447,000 at September 30, 1995; and agricultural
loans increased $2,166,000, or 7.0 percent. All other loans increased
$646,000, or 5.9 percent.
Other real estate owned decreased $205,000, or 46.7 percent, from
September 30, 1995.
Total deposits have increased $67,665,000, or 8.9 percent, since
September 30, 1995. Interest-bearing deposits increased $54,385,000,
or 8.1 percent, during the past year, while noninterest-bearing
deposits increased $13,280,000, or 15.4 percent.
SHAREHOLDERS' EQUITY
The Corporation and each financial institution subsidiary have capital
ratios which substantially exceed all regulatory requirements. The
Corporation's capital ratios are shown below.
<TABLE>
<CAPTION>
Minimum
Requirements 9/30/96 9/30/95
------------ ------- -------
<S> <C> <C> <C>
Tier I capital to
risk-based assets 4.00% 14.75% 17.40%
Total capital to
risk-based assets 8.00% 15.41% 18.20%
Tangible equity to
tangible assets 3.00% 10.27% 12.17%
</TABLE>
12
<PAGE>
NATIONAL CITY BANCSHARES, INC. and Subsidiaries
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
EXHIBITS
27 Financial Data Schedule (included only in electronic filing)
REPORTS ON FORM 8-K
NONE
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 thereunto duly authorized.
NATIONAL CITY BANCSHARES, INC
(Registrant)
By /s/ HAROLD A. MANN
Harold A. Mann
Secretary and Treasurer
(On behalf of the registrant
and in his capacity as Chief
Accounting Officer.)
November 13, 1996
13
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
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0
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