SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
October 3, 1997
---------------
Date of Report
(Date of earliest event reported)
PENNROCK FINANCIAL SERVICES CORP.
----------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 0-15040 23-2400021
-------------- ---------- -------------
(State or other jurisdiction Commission (IRS Employer
of incorporation) File Number) Identification No.)
1060 Main Street, Blue Ball, PA 17506
----------------------------------------- ----------
(Address of principal executive office) (Zip Code)
N/A
---------------------------------------------------------
(Former name or former address, if changes since last report)
<PAGE> 1
Item 5. Other Events.
-------------
On October 3, 1997, PennRock Financial Services Corp. announced the closure of
its mortgage banking subsidiary. A copy of the press release issued by
PennRock is attached as Exhibit 99 and incorporated by reference herein.
Item 7. Financial Statements and Exhibits.
----------------------------------
(c) Exhibits
The following exhibits are filed herewith:
Exhibit
Number Description Page Number
---------- -------------------------- ------------
99 Press Release dated 3
October 3, 1997 of PennRock
Financial Services Corp.
SIGNATURE
------------
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PENNROCK FINANCIAL SERVICES CORP.
By: /s/ Melvin Pankuch
---------------------------------
Melvin Pankuch, Executive Vice
President and Chief Executive
Officer
Dated: October 3, 1997
<PAGE> 2
PennRock Financial Services Corp. Announces
Closure of Mortgage Banking Subsidiary
For Immediate Release
Friday, October 3, 1997
Contact: Melvin Pankuch, Chief Executive Officer
PennRock Financial Services Corp. (PRFS)
Blue Ball, PA
(717) 354-4541
After negotiations with several prospective purchasers ended, PennRock
Financial Services Corp., parent of Blue Ball National Bank, today announced
that a decision was made to discontinue the operations of its mortgage banking
subsidiary, Atlantic Regional Mortgage Corporation (ARMCO). ARMCO was
organized in early 1996 as a subsidiary of Blue Ball National Bank and
conducted business through a network of nine mortgage origination offices
in six Mid-Atlantic states and the District of Columbia.
Melvin Pankuch, Chief Executive Officer of PennRock, said that "We started
our mortgage banking business from scratch and grew it to the point that we
were originating, on average, approximately $30 million in mortgage loans each
month. We are quite proud of that effort, but the fact of the matter is that
we fell short of the volume needed to cover our fixed costs. In view of the
many players and highly competitive conditions which characterize this market,
we simply could not be sure when we would achieve profitability and concluded
that the prudent course of action was to terminate the operation at this time
and focus our attention and resources exclusively on our core banking
business."
ARMCO discontinued taking applications for mortgage loans effective
September 30, 1997, and all applications currently outstanding will be
processed through settlement. The process of concluding operations is
expected to be completed by year-end.
PennRock took an after-tax charge of $790,000 or $.13 per share in the third
quarter of 1997 to cover costs associated with the discontinuance of ARMCO
which includes a provision for estimated operating losses during the phase-out
period.
PennRock also announced that income from continuing operations for the third
quarter of 1997 increased 46% from $2.1 million or $.34 per share in 1996 to
$3.0 million or $.50 per share in 1997. Income from continuing operations
for the first nine months of 1997 was $7.2 million or $1.19 per share, an
increase of 26% over the income from continuing operations for the first nine
months of 1996.
Even with the charge from discontinued operations discussed above, net income
for the third quarter of 1997 was $1.9 million or $.31 per share compared with
$1.8 million or $.29 per share for the third quarter of 1996, an increase of 5%.
Net income for the first nine months of 1997 totaled $5.7 million or $.94 per
share, an increase of 10% over the $5.1 million or $.85 per share earned for
the first nine months of 1996.
PennRock is a bank holding company headquartered in Blue Ball, Pennsylvania.
Blue Ball National Bank, a wholly owned subsidiary of PennRock, provides a
broad range of banking, trust and other financial services to consumers, small
businesses and corporations through 13 offices located in south-central and
southeastern Pennsylvania.
