FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended: Commission File No. 0-26589
September 30, 2000
FIRST NATIONAL LINCOLN CORPORATION
(Exact name of registrant as specified in its charter)
MAINE 01-0404322
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No)
MAIN STREET, DAMARISCOTTA, MAINE 04543
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (207) 563 - 3195
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 twelve 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.
Yes XX 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 September 30, 2000
Common Stock, Par One Cent 2,382,939
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FIRST NATIONAL LINCOLN CORPORATION
INDEX
PART 1 Financial Information
Page No.
Item 1:
Independent Accountants' Report ............................ 1
Financial Statements
Consolidated Balance Sheets -
September 30, 2000, September 30, 1999, and December 31, 1999 2 - 3
Consolidated Statements of Income and
Non-Owners' Changes in Equity - for the three and nine months
ended September 30, 2000 and September 30, 1999 .............. 4 - 7
Consolidated Statements of Cash Flows - for the nine months
ended September 30, 2000 and September 30, 1999 ........... 8 - 9
Footnotes to Financial Statements -
nine months ended September 30, 2000 and September 30, 1999.. 10
Item 2: Management's discussion and analysis of
financial condition and results of operations .......... 11 - 16
PART II Other Information
Item 1: Legal Proceedings ...................................... 17
Item 2: Changes in Securities .................................. 18
Item 3: Defaults Upon Senior Securities ........................ 19
Item 4: Submission of Matters to a Vote of Security Holders .... 20
Item 5: Other Information ...................................... 21
Item 6: Exhibits and reports on Form 8-K ....................... 22
Signatures .......................................................... 23
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INDEPENDENT ACCOUNTANTS' REPORT
The Board of Directors and Shareholders
First National Lincoln Corporation
We have reviewed the accompanying interim consolidated financial information of
First National Lincoln Corporation and Subsidiary as of September 30, 2000, and
for the three-month and nine-month periods then ended. These financial
statements are the responsibility of the Company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit in
accordance with generally accepted auditing standards, the objective of which
is to express an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements for them to be in conformity
with generally accepted accounting principles.
Berry, Dunn, McNeil & Parker
Portland, Maine
November 9, 2000
Page 1
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FIRST NATIONAL LINCOLN CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
9/30/00 9/30/99 12/31/99
(000 OMITTED) (Unaudited) (Unaudited) (Unaudited)
Assets
Cash and due from banks $ 8,620 $ 6,379 $ 8,221
Investments:
Available for sale 53,844 35,325 42,091
Held to maturity (market values $40,663
at 9/30/00, $45,032 at 9/30/99 and
$43,581 at 12/31/99) 42,737 46,885 45,908
Loans held for sale (fair value
approximates cost) 0 0 127
Loans 258,522 229,057 232,526
Less allowance for loan losses 2,229 2,054 2,035
Net loans 256,293 227,003 230,491
Accrued interest receivable 2,779 2,301 2,335
Bank premises and equipment 5,457 5,524 5,518
Other real estate owned 356 191 336
Other assets 6,144 5,575 6,260
Total Assets $376,230 $329,183 $341,287
Page 2
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BALANCE SHEETS CONT.
9/30/00 9/30/99 12/31/99
(Unaudited) (Unaudited) (Unaudited)
Liabilities & Shareholders' Equity
Demand deposits $ 23,228 $ 19,775 $ 17,746
NOW deposits 41,846 37,320 36,714
Money market deposits 11,137 10,740 16,607
Savings deposits 42,843 42,320 41,349
Certificates of deposit 68,115 75,002 70,859
Certificates $100M and over 60,021 25,792 22,183
Total deposits 247,190 210,949 205,458
Borrowed funds 95,309 87,597 105,048
Other liabilities 2,232 1,695 2,119
Total Liabilities 344,731 300,241 312,625
Shareholders' Equity:
Common stock 25 25 25
Additional paid-in capital 4,687 4,686 4,687
Retained earnings 29,691 26,650 27,463
Net unrealized losses on
available-for-sale securities (719) (874) (1,319)
Treasury stock (2,185) (1,545) (2,194)
Total Shareholders' Equity 31,499 28,942 28,662
Total Liabilities &
Shareholders' Equity $376,230 $329,183 $341,287
Number of shares authorized 6,000,000 6,000,000 6,000,000
Number of shares issued 2,382,929 2,405,840 2,370,047
Book value per share $13.22 $12.03 $12.09
Page 3
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FIRST NATIONAL LINCOLN CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
AND NON-OWNER CHANGES IN EQUITY
For the nine months ended September 30,
2000 1999
(000 OMITTED) (Unaudited) (Unaudited)
Interest Income:
Interest and fees on loans $15,844 13,642
Interest on deposits with other banks 22 17
Interest and dividends on investments 4,591 3,628
Total interest income 20,457 17,287
Interest expense:
Interest on deposits 6,065 5,388
Interest on borrowed funds 4,890 3,121
Total interest expense 10,955 8,509
Net interest income 9,502 8,778
Provision for loan losses 510 495
Net interest income after provision
for loan losses 8,992 8,283
Other operating income:
Fiduciary income 502 400
Service charges on deposit accounts 638 500
Other operating income 1,097 1,232
Total other operating income 2,237 2,132
Other operating expenses:
Salaries and employee benefits 3,264 2,917
Occupancy expense 377 348
Furniture and equipment expense 540 526
Other 2,287 1,925
Total other operating expenses 6,468 5,716
Income before income taxes 4,761 4,699
Applicable income taxes 1,387 1,393
NET INCOME $3,374 $3,306
Page 4
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STATEMENTS OF INCOME CONT.
For the nine months ended September 30,
2000 1999
(Unaudited) (Unaudited)
Non-owner changes in equity, net of tax:
Unrealized gains (losses)on investments
arising during period 600 (937)
Total other comprehensive income (loss), net of
taxes of $309 in 2000 and $(483) in 1999 600 (937)
NET INCOME AND NON-OWNER CHANGES IN EQUITY $3,974 $2,369
Earnings per common share:
Basic earnings per share $1.41 $1.35
Diluted earnings per share $1.37 $1.30
Cash dividends declared per share $0.48 $0.36
Weighted average number of shares
outstanding 2,385,734 2,451,199
Incremental Shares
for diluted earnings per share 80,072 95,272
Page 5
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FIRST NATIONAL LINCOLN CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
AND NON-OWNER CHANGES IN EQUITY
For the quarters ended September 30,
2000 1999
(000 OMITTED) (Unaudited) (Unaudited)
Interest Income:
Interest and fees on loans $ 5,550 4,734
Interest on deposits with other banks 7 6
Interest and dividends on investments 1,571 1,347
Total interest income 7,128 6,087
Interest expense:
Interest on deposits 2,251 1,818
Interest on borrowed funds 1,668 1,191
Total interest expense 3,919 3,009
Net interest income 3,209 3,078
Provision for loan losses 210 120
Net interest income after provision
for loan losses 2,999 2,958
Other operating income:
Fiduciary income 166 130
Service charges on deposit accounts 205 172
Other operating income 538 510
Total other operating income 909 812
Other operating expenses:
Salaries and employee benefits 1,128 1,005
Occupancy expense 121 118
Furniture and equipment expense 193 177
Other 930 808
Total other operating expenses 2,372 2,108
Income before income taxes 1,536 1,662
Applicable income taxes 445 490
NET INCOME $1,091 $1,172
Page 6
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STATEMENTS OF INCOME CONT.
For the quarters ended September 30,
2000 1999
(Unaudited) (Unaudited)
Non-owner changes in equity, net of tax:
Unrealized gains (losses) on investments
arising during period 520 (207)
Total other comprehensive income (loss), net
Of taxes of $268 in 2000 and $(107) in 1999 520 (207)
NET INCOME AND NON-OWNER CHANGES IN EQUITY $1,611 $965
Earnings per common share:
Basic earnings per share $0.46 $0.49
Diluted earnings per share $0.44 $0.47
Cash dividends declared per share $0.17 $0.13
Weighted average number of shares
outstanding 2,384,692 2,405,080
Incremental Shares
for diluted earnings per share 80,072 95,272
Page 7
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FIRST NATIONAL LINCOLN CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30,
2000 1999
(000 OMITTED) (Unaudited) (Unaudited)
Cash flows from operating activities:
Net income $3,374 3,306
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 413 402
Provision for loan losses 510 495
Provision for losses on other real estate owned 0 10
Loans originated for resale (2,055) (7,463)
Proceeds from sales and transfers of loans 2,182 7,672
Losses related to other real estate owned 5 10
Net change in other assets and accrued interest (328) (530)
Net change in other liabilities (270) 469
Net accretion of discounts on investments (103) (5)
Net cash provided by operating activities 3,728 4,366
Cash flows from investing activities:
Proceeds from sales, maturities and calls of
securities available for sale 804 2,596
Proceeds from maturities and calls of
securities to be held to maturity 4,099 11,579
Proceeds from sales of other real estate owned 35 239
Purchases of securities available for sale (11,605) (20,458)
Purchases of securities to be held to maturity (868) (18,000)
Net increase in loans (26,372) (20,243)
Capital expenditures (352) (60)
Net cash used in investing activities (34,259) (44,347)
Cash flows from financing activities:
Net increase in demand deposits,
savings, money market and club accounts 6,638 9,777
Net increase (decrease)in certificates of deposit 35,094 (631)
Net increase (decrease)in other borrowings (9,739) 33,137
Payment to repurchase common stock (238) (1,444)
Proceeds from sale of Treasury stock 247 115
Dividends paid (1,072) (932)
Net cash provided by financing activities 30,930 40,022
Page 8
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STATEMENTS OF CASH FLOWS CONT.
2000 1999
(Unaudited) (Unaudited)
Net increase in cash and cash equivalents 399 41
Cash and cash equivalents at beginning
of period 8,221 6,338
Cash and cash equivalents at end of
period $8,620 $6,379
Interest paid $10,955 $8,509
Income taxes paid 1,492 1,450
Non-cash transactions:
Loans transferred to other real estate
owned (net) 60 147
Change in unrealized gain (loss) on
available for sale securities 909 (1,420)
Page 9
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FOOTNOTES TO FINANCIAL STATEMENTS
1. The accompanying consolidated financial statements of First National
Lincoln Corporation (the Company) and its subsidiary, The First National Bank
of Damariscotta (the Bank), for the nine-month periods ended September 30, 2000
and 1999 are unaudited. In the opinion of Management, all adjustments
consisting of normal, recurring accruals necessary for a fair representation
have been reflected therein.
Certain financial information which is normally included in financial
statements prepared in accordance with generally accepted accounting
principles, but which is not required for interim reporting purposes, has been
omitted. The accompanying consolidated financial statements should be read in
conjunction with the financial statements and notes thereto included in the
Company's annual report on Form 10-K for the fiscal year ended December 31,
1999.
Page 10
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ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
EARNINGS SUMMARY
Net income for the nine months ended September 30, 2000 was $3,374,000, an
increase of 2.1% over net income of $3,306,000 for the comparable period in
1999. Revenue growth was the primary factor in the Company's increased earnings
for the first nine months of 2000 compared to the same period in 1999. This was
a direct result of asset growth, which produced higher levels of net interest
income. During the period from December 31, 1999 to September 30, 2000, the
loan and investment portfolios increased by a combined $34.5 million, which
Management views as an excellent rate of growth.
Earnings per share for the first nine months of 2000 were $1.41, a 4.4%
increase over the $1.35 reported for the nine months ended September 30, 1999.
Net income for the three months ended September 30, 2000 was $1,091,000, a
decrease of 6.9% from 1999's net income of $1,172,000. Earnings per share for
the third quarter of 2000 were $0.46, a 6.1% decrease from the $0.49 reported
in 1999.
NET INTEREST INCOME
Net interest income for the nine months ended September 30, 2000 was
$9,502,000, an 8.2% increase over net interest income of $8,778,000 reported
for the first nine months of 1999. While interest income was 18.3% higher than
for the same period in 1999, the Company experienced tighter margins with
interest expense increasing by 28.7% over the first nine months of 1999. The
increases in both interest income and interest expense were due to a
combination of significantly higher balances and higher interest rates.
Net interest income for the three months ended September 30, 2000 was
$3,209,000, a 4.3% increase over net interest income of $3,078,000 for the same
period in 1999. Similar to the Company's year-to-date results, interest income
for the third quarter of 2000 was 17.1% higher than for the same period in
1999, while interest expense was 30.2% higher in 2000 than for the same period
in 1999. These increases again resulted in margin compression and were due to a
combination of significantly higher balances and higher interest rates
PROVISION FOR LOAN LOSSES
A $510,000 provision to the allowance for loan losses was made during the
first nine months of 2000. This is a $15,000 increase over the $495,000
provision made for the same period of 1999. The allowance for loan losses is
deemed adequate as calculated in accordance with Banking Circular #201 and with
respect to Statement of Financial Accounting Standards (SFAS) 114/118. Loans
considered to be impaired according to SFAS 114/118 totalled $730,267 at
September 30, 2000. The portion of the allowance for loan losses allocated to
impaired loans at September 30, 2000 was $191,593.
Page 11
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MANAGEMENT'S DISCUSSION CONT.
NON-INTEREST INCOME
Non-interest income was $2,237,000 for the nine months ended September 30,
2000, an increase of $105,000 over non-interest income of $2,132,000 for the
same period in 1999. However, 1999's non-interest income included a gain of
$189,000 due to adoption of SFAS 125 which governs the accounting treatment for
mortgage servicing rights. Without the 1999 item, the increase would have been
$294,000 or 15.1% for the nine-month period.
The increase in fee income was due to increased service charge income on
deposit accounts connected with the increase in the Bank's core deposits, as
well as increases in merchant credit card income and fiduciary income. These
increases were offset by decreased mortgage origination and servicing income.
Demand for residential mortgages has been modest and the Bank chose to retain
most of the production in portfolio, resulting in decreased gains on sales of
loans -- only $2,182,000 were sold in the first nine months of 2000 compared to
$7,672,000 for the same period in 1999. In addition, the Company's adoption of
SFAS 125, which produced the gain of $189,000 in the second quarter of 1999
relating to mortgage servicing rights, results in a reduction of the subsequent
recognition of servicing income on those loans.
Non-interest income was $909,000 for the three months ended September 30,
2000, an increase of 11.9% from 1999's third quarter non-interest income. This
was due to increased service charge income on deposit accounts connected with
higher levels of core deposits, as well as increases in merchant credit card
income and fiduciary income. These were offset by decreased mortgage
origination and servicing income.
NON-INTEREST EXPENSE
Non-interest expense of $6,468,000 for the nine months ended September 30,
2000 is an increase of 13.2% from non-interest expense of $5,716,000 for the
same period in 1999. This has been primarily due to increases in staffing and
software costs connected with the Company's goal to provide more comprehensive
and competitive services to its customers. In addition, increases in merchant
credit card costs which were offset by an increase in merchant credit card
income.
Non-interest expense of $2,372,000 for the three months ended September
30, 2000, is an increase of 12.5% from 1999's third quarter non-interest
expense of $2,108,000 for the reasons stated above
INCOME TAXES
Income taxes on operating earnings decreased slightly to $1,387,000 for
the first nine months of 1999 compared to $1,393,000 for the same period a year
ago, even though pre-tax earnings increased. The Company has increased its
holdings of tax-exempt securities, which accounts for the decrease in tax
expense.
Page 12
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MANAGEMENT'S DISCUSSION CONT.
INVESTMENTS
The Company's investment portfolio increased by $14.4 million or 17.5%
between September 30, 1999 and September 30, 2000, a direct result of an
attractive investment climate. During the first nine months of 2000, the
investment portfolio increased by $8.6 million or 9.8%. At September 30, 2000,
the Company's available-for-sale portfolio had an unrealized loss, net of
taxes, of $0.7 million, which is in line with the interest rate changes seen in
the second half of 1999 and the first nine months of 2000.
LOANS
Loans grew by $29.5 million or 12.9% between September 30, 1999 and
September 30, 2000. Approximately half of the increase came in commercial
loans, the Company's highest-earning assets, and half with strong growth in
mortgage loans. During the first nine months of 2000, loans increased by $26.0
million or 11.2%.
DEPOSITS
As of September 30, 2000, deposits grew year-over year by 17.2% or $36.2
million. A substantial portion of this increase came in core deposits
(checking, NOWs, savings and money market accounts) which are the Company's
lower cost sources of funding. For the same period, certificates of deposit
increased by $27.3 million. During the first nine months of 2000 total deposits
increased by $41.7 million or 20.3%. $35.1 million of the growth was in
certificates of deposit.
BORROWED FUNDS
The Company's funding also includes borrowings from the Federal Home Loan
Bank and repurchase agreements. Between September 30, 1999 and September 30,
2000, borrowed funds increased by $7.7 million or 8.8%. The Company utilizes
borrowings as an additional source of funding for both loans and investments
which allows it to grow its balance sheet and revenues. During the first nine
months of 2000, borrowed funds decreased by $9.7 million or 9.3%. Those
borrowings were primarily replaced by brokered certificates of deposit with
all-in costs favorable to the Bank.
SHAREHOLDERS' EQUITY AND CAPITAL RESOURCES
Shareholders' equity as of September 30, 2000 was $31,499,000 compared to
$28,942,000 at September 30, 1999. The Company's strong earnings performance in
the preceeding 12 months added significantly to retained earnings along with a
decrease in the net unrealized after-tax loss on available-for-sale securities,
as required under SFAS 115. These were offset by a net buyback of $640,000 of
treasury stock.
During 1999, the Company increased its dividend each quarter to end the
year at a quarterly dividend rate of 14 cents per share. In 2000, cash
dividends of 15 cents, 16 cents and 17 cents per share were declared in the
first, second and third quarters, compared to 11 cents, 12 cents and 13 cents
in the same respective quarters of 1999. The 2000 year-to-date dividend of 48
cents is an increase of 33% over 1999's dividend for the same period.
Page 13
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MANAGEMENT'S DISCUSSION CONT.
Regulatory leverage capital ratios for the Company were 8.77% and 9.04%,
respectively, at September 30, 2000 and September 30, 1999. The decrease was
due to asset growth and repurchase of the Company's shares. The Company had a
tier one risk-based capital ratio of 13.43% and a tier two risk-based capital
ratio of 14.36% at September 30, 2000, compared to 14.65% and 15.66%,
respectively, at September 30, 1999. These are comfortably above the standards
to be rated "well-capitalized" by regulatory authorities -- qualifying the
Company for lower deposit-insurance premiums.
LIQUIDITY MANAGEMENT
As of September 30, 2000 the Bank had primary sources of liquidity of
$43.1 million, or 11.5% of its assets. It is Management's opinion that this is
adequate. Through its Asset/Liability policy, the Bank has clear guidelines for
liquidity. The Company is not aware of any current recommendations by the
regulatory authorities which, if they were to be implemented, would have a
material effect on the Company's liquidity, capital resources or results of
operations.
LOAN POLICIES
Real estate values:
A. Residential properties. We loan up to 80% of the appraised value of
properties without mortgage insurance and up to 95% of the appraised value of
properties with mortgage insurance. No further appraisals are done as long as
the payment history remains satisfactory. If a loan becomes delinquent, a
review might be done of the loan. When a loan becomes 90 or more days past due,
an in-depth review is made of the loan and a determination made as to whether
or not a reappraisal is required.
B. Land only properties. We do not have many of these but we do loan up to 65%
of the appraised value of the property. They are handled the same way as above
from booking date on.
C. Commercial properties. We loan up to 75% of the appraised value and, once
the loan is closed, the decision to re-appraise a property is subjective and
depends on a variety of factors, such as: the payment status of the loan, the
risk rating of the loan, the amount of time that has passed since the last
appraisal, changes in the real estate market, availability of financing,
inventory of competing properties, and changes in condition of the property
i.e. zoning changes, environmental contamination, etc. A certified or licensed
appraiser is used for all appraisals.
At September 30, 2000 and 1999, loans on non-accrual status totaled
$2,360,000 and $1,196,000, respectively. In Management's opinion, this increase
is not reflective of the overall quality of the Company's loan portfolio but
is, instead, the result of an unexpected and isolated decline in three credits.
In addition to loans on a non-accrual status at September 30, 2000 and 1999,
loans past due greater than 90 days and still accruing totaled $336,000 and
$592,000 respectively. The Company continues to accrue interest on these loans
because it believes collection of the interest is reasonably assured.
Page 14
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MANAGEMENT'S DISCUSSION CONT.
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS
No material off-balance sheet risk exists that requires a separate
liability presentation.
SALE OF LOANS
No recourse obligations have been incurred in connection with the sale of
loans.
RISK ELEMENTS
Any loans classified for regulatory purposes as loss, doubtful,
substandard, or special mention that have not been disclosed under Item III of
Industry Guide 3 do not represent or result from trends or uncertainties which
Management reasonably expects will materially impact future operating results,
liquidity or capital resources. There are no known potential problem loans
which are not now disclosed pursuant to Item III. C. 1. of Industry Guide 3.
Item III. C. 2. is not applicable.
REGULATORY MATTERS
Procedures for monitoring Bank Loan Administration:
A. Loan reviews are done on a regular basis.
B. An action plan is prepared quarterly on all classified commercial loans
greater than $100,000, and semi-annually on all criticized loans greater than
$100,000.
C. Delinquent loans are reviewed weekly by the Bank's Collections Officer and
Senior Credit Officer.
D. A tickler system is utilized to insure timely receipt of current information
(such as financial statements, appraisals or credit memos to the credit file).
Note: Most of the above applies only to commercial loans, but retail loans are
reviewed periodically, usually around a delinquency.
Procedures for monitoring Bank Other Real Estate Owned:
The O.R.E.O. portfolio is handled by the Collections Officer, with backup
by the Senior Credit Officer. Most properties are listed with real estate
brokers for sale. All properties are appraised periodically for market value,
and provision is made to the allowance for O.R.E.O. losses if the estimated
market value after selling costs is lower than the carrying value of the
property.
Page 15
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MANAGEMENT'S DISCUSSION CONT.
ACCOUNTING PRONOUNCEMENTS
During 2000, the financial Accounting Standards Board issued the following:
SFAS No. 138, "Accounting for Certain Derivative Instruments and Certain
Hedging Activities - an amendment of SFAS No. 133"
SFAS No. 139, "Rescission of FASB Statement No. 53 and amendments to FASB
Statements No. 63, 89 and 121"
SFAF No. 140, "Accounting for Transfers and Servicing of Financial Assets
and Extinguishment of Liabilities - a replacement of FASB Statement No. 125."
The Company expects to adopt SFAS No. 139 and 140 when required and
management believes adoption will not have a material effect on the financial
condition and results of operation of the Company. SFAS No. 137 and SFAS No.
138 amended SFAS No. 133, which established accounting reporting standards for
derivative instruments and for hedging activity. SFAS No. 137 defers the
elective date of SFAS No. 133 to all fiscal quarters of all fiscal years
beginning after June 15, 2000. While the Bank does not hold any derivative
instruments at the present time, SFAS Nos. 133, 137 and 138 will be followed
when effective should the Bank enter into derivative transactions.
FORWARD-LOOKING STATEMENTS
Certain disclosures in Management's Discussion and Analysis of Financial
Condition and Results of Operations contain certain forward-looking statements
(as defined in the Private Securities Litigation Reform Act of 1995). In
preparing these disclosures, Management must make assumptions, including, but
not limited to, the level of future interest rates, prepayments on loans and
investment securities, required levels of capital, needs for liquidity, and the
adequacy of the allowance for loan losses. These forward-looking statements may
be subject to significant known and unknown risks uncertainties, and other
factors, including, but not limited to, those matters referred to in the
preceding sentence.
Although First National Lincoln Corporation believes that the expectations
reflected in such forward-looking statements are reasonable, actual results may
differ materially from the results discussed in these forward-looking
statements. Readers are cautioned not to place undue reliance on these forward
looking statements, which speak only as of the date hereof. The Company
undertakes no obligation to republish revised forward-looking statements to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. Readers are also urged to carefully review
and consider the various disclosures made by the Company which attempt to
advise interested parties of the facts which affect the Company's business.
Page 16
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PART II
ITEM 1. LEGAL PROCEEDINGS
The Company was not involved in any legal proceedings requiring disclosure
under Item 103 of Regulation S-K during the reporting period.
Page 17
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ITEM 2. CHANGES IN SECURITIES
None
Page 18
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ITEM 3. DEFAULT UPON SENIOR SECURITIES
None.
Page 19
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ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
Page 20
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ITEM 5: Other Information
None.
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ITEM 6: Exhibits, Financial Statement Schedules, and reports on Form 8-K
A. EXHIBITS
EXHIBIT 27. Financial Data Schedule.
B. REPORTS ON FORM 8-K
None.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FIRST NATIONAL LINCOLN CORPORATION
November 14, 2000 Daniel R. Daigneault
Date Daniel R. Daigneault
President and CEO
November 14, 2000 F. Stephen Ward
Date F. Stephen Ward
Treasurer
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