<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 March 31, 1997.
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) 464-9677
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 MAY 9, 1997
(Common stock,
$1.00 Stated Value) 9,297,511
<PAGE>
NATIONAL CITY BANCSHARES, INC.
INDEX
PAGE NO.
PART I - FINANCIAL INFORMATION
Condensed consolidated statements of
financial position-
March 31, 1997, December 31, 1996,
and March 31, 1996 1
Condensed consolidated statements of income-
three months ended March 31, 1997 and 1996 2
Condensed consolidated statements of cash flows-
three months ended March 31, 1997 and 1996 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>
March December March
31 31 31
1997 1996 1996
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 34,909 $ 36,728 $ 33,025
Time deposits in banks 1,487 1,784 3,446
Securities held to maturity - 158,295 98,504
Securities available for sale 267,638 101,215 144,805
Nonmarketable equity securities 6,036 5,165 4,632
Federal funds sold 3,740 600 3,065
Loans 762,030 723,308 672,499
Less: Allowance for loan losses 6,526 6,275 5,479
- ----------------------------------------------------------------------------
Loans-net 755,504 717,033 667,020
Premises and equipment 25,044 21,797 15,510
Other real estate owned 42 66 296
Income earned but not collected 10,195 11,407 9,651
Other assets 18,307 14,996 8,934
- ----------------------------------------------------------------------------
TOTAL ASSETS $1,122,902 $1,069,086 $988,888
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
LIABILITIES
Deposits:
Noninterest-bearing demand $ 99,759 $ 112,709 $ 96,441
Interest-bearing savings and time 758,241 712,662 684,878
- ----------------------------------------------------------------------------
Total deposits 858,000 825,371 781,319
Federal funds purchased and securities
sold under agreements to repurchase 76,923 64,294 48,737
Notes issued to the U.S. Treasury 2,153 1,721 2,094
Other borrowings 57,084 49,706 31,960
Dividends payable 1,498 1,512 1,143
Accrued interest payable 4,038 4,032 3,856
Other liabilities 5,758 4,739 4,695
- ----------------------------------------------------------------------------
Total liabilities 1,005,454 951,375 873,804
- ----------------------------------------------------------------------------
</TABLE>
[CAPTION]
<TABLE>
SHAREHOLDERS' EQUITY
<S> <C> <C> <C> <C> <C> <C>
Common stock - $1.00 stated value
9,356 9,435 9,141
3/31/97 12/31/96 3/31/96
---------- ---------- ----------
Authorized 20,000,000 20,000,000 20,000,000
Outstanding 9,355,797 9,435,432 9,140,652
Capital surplus 53,925 56,457 48,594
Retained earnings 54,649 51,780 57,445
Unrealized gain(loss) on securities
available for sale (482) 39 (96)
- ----------------------------------------------------------------------------
Total shareholders' equity 117,448 117,711 115,084
- ----------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,122,902 $1,069,086 $988,888
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
</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
Ended
March 31
- ---------------------------------------------------------------------------
1997 1996
- ---------------------------------------------------------------------------
<S> <C> <C>
INTEREST INCOME
Interest and fees on loans $16,365 $15,339
Interest and dividends on securities 4,015 3,618
Interest on federal funds sold 37 109
Interest on other investments 31 61
- ---------------------------------------------------------------------------
Total interest income 20,448 19,127
- ---------------------------------------------------------------------------
INTEREST EXPENSE
Interest on deposits 7,563 7,458
Interest on funds borrowed 1,484 933
- ---------------------------------------------------------------------------
Total interest expense 9,047 8,391
- ---------------------------------------------------------------------------
NET INTEREST INCOME 11,401 10,736
Provision for loan losses 321 316
- ---------------------------------------------------------------------------
Net interest income after
provision for loan losses 11,080 10,420
- ---------------------------------------------------------------------------
NONINTEREST INCOME
Trust income 426 373
Service charges on deposit accounts 868 763
Securities gains (losses) 465 14
Other 696 601
- ---------------------------------------------------------------------------
Total noninterest income 2,455 1,751
- ---------------------------------------------------------------------------
NONINTEREST EXPENSE
Salaries and employee benefits 4,117 3,741
Premises and equipment 1,011 971
Assessments of the FDIC 32 54
Other 2,049 1,620
- ---------------------------------------------------------------------------
Total noninterest expense 7,209 6,386
- ---------------------------------------------------------------------------
Income before income taxes 6,326 5,785
Income taxes 1,958 2,015
- ---------------------------------------------------------------------------
NET INCOME $ 4,368 $ 3,770
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
Earnings per share:
Primary $0.46 $0.41
Fully diluted $0.46 $0.41
Weighted average shares outstanding:
Primary 9,532,345 9,270,598
Fully diluted 9,534,572 9,270,598
</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>
Three Months
Ended
March 31
- ---------------------------------------------------------------------------
1997 1996
- ---------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 4,368 $ 3,770
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization 94 188
Depreciation 476 421
Provision for loan losses 321 316
Writedown of other real estate owned - 19
Securities (gains) losses (465) (14)
Originations of loans held for sale (3,757) (7,289)
Proceeds from sales of loans held for sale 3,804 7,351
(Gain) loss on sales of loans held for sale (47) (62)
(Gain) loss on sale of property and equipment (7) -
(Gain) loss on sale of other real estate (2) (9)
Increase (decrease) in deferred taxes (51) 96
Changes in assets and liabilities:
(Increase) decrease in income earned but not collected 1,396 591
(Increase) decrease in other assets (632) (557)
Increase (decrease) in accrued interest payable (229) 294
Increase (decrease) in other liabilities 1,145 195
- ---------------------------------------------------------------------------
Net cash flows provided by operating activities 6,414 5,310
- ---------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Net (increase) decrease in interest-bearing
deposits in banks 297 1,577
Proceeds from matured securities held to maturity 6,761 2,530
Proceeds from matured securities available for sale 8,842 13,784
Proceeds from sales of securities held to maturity 3,509 -
Proceeds from sales of securities available for sale 1,705 -
Proceeds from sales of nonmarketable equity securities 803 -
Purchases of securities held to maturity (26,321) (11,154)
Purchases of securities available for sale (662) (11,903)
Purchases of nonmarketable equity securities (901) (677)
(Increase) decrease in federal funds sold (2,190) (1,645)
(Increase) decrease in loans made to customers (1,023) (8,374)
Capital expenditures (3,033) (1,199)
Proceeds from sale of premises and equipment 14 -
Proceeds from sale of other real estate owned 55 77
Purchase of subsidiary, net of cash and cash
equivalents acquired (5,846) -
- ---------------------------------------------------------------------------
Net cash flows provided by (used in)
investing activities (17,990) (16,984)
- ---------------------------------------------------------------------------
</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>
Three Months
Ended
March 31
- ----------------------------------------------------------------------------
1997 1996
- ----------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits $ (2,531) $ 6,599
Net increase (decrease) in federal funds
purchased and securities sold under
agreements to repurchase 12,629 (4,092)
Net proceeds (payments) on notes issued to
the U.S. Treasury 432 (675)
Proceeds from other borrowings 6,597 11,994
Payments on other borrowings (3,246) (443)
Dividends paid (1,512) (1,175)
Repurchase of common stock (3,035) (6,796)
Sale of common stock 423 343
- ----------------------------------------------------------------------------
Net cash flows provided by (used in)
financing activities 9,757 5,755
- ----------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents (1,819) (5,919)
Cash and cash equivalents at beginning of period 36,728 38,944
- ----------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 34,909 $ 33,025
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
</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>
Three Months
Ended
March 31
- ----------------------------------------------------------------------------
1997 1996
- ----------------------------------------------------------------------------
<S> <C> <C>
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for:
Interest $9,276 $8,098
Income taxes 158 840
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING
AND FINANCING ACTIVITIES
Change in allowance for unrealized gain (loss)
on securities available for sale $ (839) $ 662
Change in deferred taxes attributable to securities
available for sale 318 (261)
Transfer of securities from held to maturity to
available for sale 174,616 -
Other real estate acquired in settlement of loans 4 -
Transfer from premises and equipment to other
real estate owned - 41
Transfer from other real estate owned to other assets - 7
Purchase of subsidiary:
Purchase price $ 6,797
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Assets acquired:
Cash and cash equivalents 951
Securities 3,029
Federal funds sold 950
Loans 37,773
Premises and equipment 698
Income earned but not collected 184
Other real estate owned 25
Other assets 2,852
Liabilities assumed:
Deposits (35,160)
Other borrowings (4,027)
Accrued interest payable (235)
Deferred taxes payable (34)
Other liabilities (209)
- ----------------------------------------------------------------------------
$ 6,797
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
</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 March 31, 1997,
the Corporation owned 100% of ten commercial bank subsidiaries, two
savings bank subsidiaries, a leasing corporation, a property
management company, and a financial services company. 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. 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, 1996 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>
3/31/97 12/31/96
------------ ------------
<S> <C> <C>
Standby letters of credit $ 10,555,000 $ 14,776,000
Commitments to extend credit $121,681,000 $103,299,000
</TABLE>
6
<PAGE>
NOTE 3
A five percent stock dividend was paid December 9, 1996, to
shareholders of record November 25, 1996. 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 March 1, 1997, the Corporation acquired First Federal Savings Bank
of Leitchfield, a $43 million savings bank located in Leitchfield,
Kentucky. This acquisition was accounted for as a purchase, and the
results of operations of First Federal Savings Bank of Leitchfield
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 $2,772,000 will be amortized over 25 years
using the straight-line method.
NOTE 5
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards ("SFAS") No. 128,
"Earnings per Share." SFAS No. 128 requires the presentation of both
basic earnings per share and diluted earnings per share. Basic
earnings per share will be computed by dividing net income by the
weighted-average number of common shares outstanding. Diluted
earnings per share will be computed in the same manner currently used
by the Corporation in computing fully diluted earnings per share.
SFAS 128 will be effective for financial statements issued for periods
ending after December 15, 1997. If SFAS 128 had been in effect during
the first quarter of 1997, basic earnings per share would have been
$0.46 per share and diluted earnings per share would have been $0.46
per share.
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 March 31, 1997, was $4,368,000, or
$0.46 per share, compared to $3,770,000, or $0.41 per share, for the
first quarter of 1996. This is an increase of $598,000, or 15.9
percent, in net income. The weighted average number of shares
outstanding was 9,532,345 and 9,270,598 for the three months ended
March 31, 1997 and 1996, respectively. Stock has been repurchased by
the Corporation for the dividend reinvestment program and for the
stock repurchase programs announced January 3, 1996 and December 23,
1996.
Net interest income in the first quarter of 1997 increased $1,082,000,
or 9.6 percent, on a tax equivalent basis, from the year-ago quarter.
Average earning assets were $1,005 million and $921 million, an
increase of $84 million, or 9.1 percent, during the first quarter of
1997 and 1996, respectively. Loans increased an average of $66
million, or 9.9 percent, for the quarter. Average securities
increased $26 million, or 10.6 percent. Average federal funds sold
decreased $6 million, or 77.0 percent, and interest-bearing deposits
in banks decreased $2 million, or 38.3 percent, for the quarter.
The growth in net interest income was due to a change in the mix of
average earning assets. Total interest income increased $1,738,000,
or 8.9 percent, on a tax equivalent basis, during the first three
months of 1997 from the same period of 1996, compared to a $656,000,
or 7.8 percent increase in total interest expense. The increase in
interest income resulted from increased loan volume, higher rates of
interest earned, and a change in the mix of average earning assets.
The net interest margin increased to 4.97 percent for the first
quarter of 1997, compared to 4.90 percent during the year-ago quarter.
8
<PAGE>
UNDERPERFORMING ASSETS
Listed below is a two-year comparison of the underperforming assets.
<TABLE>
<CAPTION>
3/31/97 3/31/96
---------------------------------------------------------------
<S> <C> <C>
Nonaccrual loans $1,938,000 $2,244,000
Restructured loans 87,000 141,000
90 days past due loans 1,039,000 851,000
---------------------------------------------------------------
Total underperforming loans 3,064,000 3,236,000
Nonaccrual securities:
Agency-issued CMO 27,000 -
Other real estate held 42,000 296,000
---------------------------------------------------------------
Total underperforming assets $3,133,000 $3,532,000
---------------------------------------------------------------
---------------------------------------------------------------
</TABLE>
Past due 90 days or more, nonaccrual, and renegotiated loans have
decreased from 0.5 percent of total loans at March 31, 1996, to 0.4
percent as of March 31, 1997. Of the loans in this category, 55.5 and
54.5 percent were secured by real estate at March 31, 1997 and 1996,
respectively. Potential problem loans, other than underperforming
loans, amounted to $27,632,000 at March 31, 1997, and $28,598,000 at
March 31, 1996.
PROVISION FOR LOAN LOSSES
Net charge-offs amounted to $236,000 during the first quarter of 1997,
compared to $160,000 in the year-earlier period.
The provision for loan losses during the first three months of 1997
was $321,000 compared to $316,000 for the first three months of 1996.
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 March 31, 1997, management considered the
reserve for loan losses adequate to provide for potential losses.
NONINTEREST INCOME
Noninterest income for the first quarter of 1997 increased $704,000,
or 40.2 percent, from the year-ago period. Trust income increased
$53,000, or 14.2 percent, and service charges on deposit accounts
increased $105,000, or 13.8 percent, over the first three months of
1996 mainly due to changes in fee schedules. Net securities gains
were $14,000 for the first quarter of 1996 compared to $465,000 for
the same period in 1997. The 1997 gain was primarily due to the sale
of nonmarketable equity securities. Other noninterest income
increased $95,000, or 15.8 percent, during 1997 due mainly to the
implementation of new fees.
9
<PAGE>
NONINTEREST EXPENSE
Noninterest expense increased $823,000, or 12.9 percent, in the first
quarter of 1997. Salaries and employee benefits increased $376,000,
or 10.1 percent; expenses of premises and equipment increased $40,000,
or 4.1 percent; and other items in this category increased $429,000,
or 26.5 percent, over the year-ago period. These increases were
mainly due to acquisitions accounted for under the purchase method.
The cost of Federal Deposit Insurance decreased $22,000, or 40.7
percent, as a $37,000 decrease due to a lower premium rate at a
savings bank subsidiary was partially offset by increases of $13,000
in the commercial bank subsidiaries.
FINANCIAL POSITION ANALYSIS
Cash and cash equivalents increased $1,884,000, or 5.7 percent, and
time deposits in banks decreased $1,959,000, or 56.9 percent, during
the past year. Federal funds sold increased $675,000, or 22.0
percent.
Securities increased $25,733,000, or 10.4 percent, during the past
year, with the largest increase of $71,761,000, or 106.5 percent in
tax-exempt municipals. Nonmarketable equity securities increased
$1,404,000, or 30.3 percent, primarily due to the purchase of
additional stock in Federal Home Loan Banks. Taxable municipals
increased $394,000, or 13.0 percent; and marketable equity securities
increased $310,000, or 19.1 percent. Decreases were noted in U.S.
Treasury securities which decreased $18,157,000, or 65.1 percent;
U.S. Government agencies which decreased $18,682,000, or 15.2 percent;
and in other debt securities which decreased $10,683,000, or 51.8
percent. The market value adjustment on securities available for sale
decreased $614,000, or 369.9 percent.
On March 31, 1997, the Corporation transferred $174,616,000 of
securities classified as held to maturity to the available for sale
category. 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.
Amortized cost and fair values of securities with dollar amounts in
thousands are as follows:
10
<PAGE>
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 $ 52,601 $ 266 $ 129 $52,738
Taxable municipals 3,415 32 41 3,406
Tax-exempt municipals 139,135 1,366 1,738 138,763
Corporate securities 9,822 57 17 9,862
Mortgage-backed securities 61,510 231 673 61,068
Marketable equity
securities 1,935 49 183 1,801
- ----------------------------------------------------------------------
Total available for sale $268,418 $2,001 $2,781 $267,638
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
</TABLE>
The security portfolio at March 31, 1997, included $7,564,000 in
structured notes, which were comprised of $3,001,000 in multi-coupon
step-up notes, that have a price volatility comparable to a callable
U.S. Government agency of like maturity; $2,399,000 in capped floating
rate notes; $700,000 in ratchet capped floating rate notes; $983,000
in indexed amortizing notes; and $481,000 in delevered floating notes.
These securities have risk characteristics which are well within the
constraints of the non-structured securities held in the security
portfolio.
As part of its strategic plan, the Corporation successfully increased
total loans while maintaining high credit standards and competitive
rates. Loans increased $89,531,000, or 13.3 percent, during the past
year. The largest increase was in loans secured by real estate which
increased $66,100,000, or 19.6 percent. Commercial loans increased
$11,047,000, or 6.9 percent; consumer loans increased $7,009,000, or
5.4 percent; and direct lease financing increased $5,142,000, or 56.5
percent. All other types of loans increased $2,573,000, or 23.1
percent, except agricultural loans which decreased $2,340,000, or 9.3
percent.
Other real estate owned decreased $254,000, or 85.8 percent, from
March 31, 1996.
Total deposits have increased $76,681,000, or 9.8 percent, since March
31, 1996. Noninterest-bearing deposits increased $3,318,000, or 3.4
percent, and interest-bearing deposits increased $73,363,000, or 10.7
percent, during this period.
11
<PAGE>
SHAREHOLDERS' EQUITY
The Corporation and each subsidiary bank have capital ratios which
substantially exceed all regulatory requirements. The Corporation's
capital ratios are shown below.
<TABLE>
<CAPTION>
Minimum
Requirements 3/31/97 3/31/96
------------ ------- -------
<S> <C> <C> <C>
Tier I capital to
risk-based assets 4.00% 14.05% 16.55%
Total capital to
risk-based assets 8.00% 14.90% 17.36%
Tangible equity to
tangible assets 3.00% 10.05% 11.40%
</TABLE>
12
<PAGE>
NATIONAL CITY BANCSHARES, INC. and Subsidiaries
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
EXHIBITS
The following exhibits are submitted herewith:
11 Statement re Computation of Per Share Earnings
27 Financial Data Schedule (Electronic Filing Only)
REPORTS ON FORM 8-K
A CURRENT REPORT dated March 11, 1997, for event of March 11, 1997,
was filed regarding the filing of sections of Registrant's 1996 Annual
Report to Shareholders.
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.)
May 14, 1997
13
<PAGE>
EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION OF EXHIBIT
- -------------- -------------------------------------------------
11 Statement re Computation of Per Share Earnings
27 Financial Data Schedule (Electronic Filing Only)
14
<PAGE>
<PAGE>
EXHIBIT 11 - STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
<TABLE>
<CAPTION>
March 31, 1997
- ---------------------------------------------------------------------
Fully
Primary Diluted
- ---------------------------------------------------------------------
<S> <C> <C>
Net income $4,368,624 $4,368,624
Weighted average shares outstanding 9,418,499 9,418,499
Common stock equivalents due to
outstanding options 113,846 116,073
- ----------------------------------------------------------------------
Adjusted shares outstanding 9,532,345 9,534,572
Earnings per share $0.46 $0.46
</TABLE>
[CAPTION]
<TABLE>
March 31, 1996
- ---------------------------------------------------------------------
Fully
Primary Diluted
- ---------------------------------------------------------------------
<S> <C> <C>
Net income $3,769,514 $3,769,514
Weighted average shares outstanding 9,270,598 9,270,598
Earnings per share $0.41 $0.41
</TABLE>
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 34909
<INT-BEARING-DEPOSITS> 1487
<FED-FUNDS-SOLD> 3740
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 273674
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 762030
<ALLOWANCE> 6526
<TOTAL-ASSETS> 1122902
<DEPOSITS> 858000
<SHORT-TERM> 79076
<LIABILITIES-OTHER> 11294
<LONG-TERM> 57084
0
0
<COMMON> 9356
<OTHER-SE> 108092
<TOTAL-LIABILITIES-AND-EQUITY> 1122902
<INTEREST-LOAN> 16365
<INTEREST-INVEST> 4015
<INTEREST-OTHER> 68
<INTEREST-TOTAL> 20448
<INTEREST-DEPOSIT> 7563
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</TABLE>
