<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 29549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported): February 29, 1996
FCNB Corp
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Maryland 0-15645 52-1479635
- -------------------------------------------------------------------------------
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification Number)
incorporation)
7200 FCNB Court, Frederick, Maryland 21703
- -------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (301) 662-2191
---------------------
<PAGE>
On January 26, 1996, FCNB Corp (the "Company") completed its
acquisition of Laurel Bancorp, Inc. ("Laurel"), by means of a stock-for-stock
exchange of shares accounted for as a pooling of interests. The Securities and
Exchange Commission, in its Accounting Series Release No. 135, prohibits
affiliates of all parties to a transaction accounted for as a pooling of
interests from selling any shares received in the transaction until at least 30
days of post merger combined results have been published.
Accordingly, attached hereto is the consolidated balance sheet for the
Company, including Laurel, as of February 29, 1996 and the related consolidated
statements of income for the one and two month periods then ended. The results
of operations for the two month period ended February 29, 1996 includes three
months of Laurel's earnings since their previous year ended on November 30,
1995. This one month difference is not considered material to the financial
presentation. Also, included in the combined entities operating results are
specific one-time merger related charges: (1) salaries and employee benefits
associated with change-in-control payments of approximately $1.3 million or
$809,000 after taxes and (2) income tax expense of approximately $1.6 million
associated with accumulated bad debt reserves for income tax purposes in
excess of those maintained for financial reporting purposes.
<PAGE>
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 hereunto duly authorized.
FCNB Corp
By:/s/ A. Patrick Linton
------------------------------
A. Patrick Linton, President
and Chief Executive Officer
Dated: March 19, 1996
ITEM 7
FCNB CORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands) FEBRUARY 29,
- -------------------------------------------------------------------------------
ASSETS 1995
- -------------------------------------------------------------------------------
Cash and due from banks $23,381
Interest-bearing deposits in other banks 2,414
Federal funds sold 28,046
- -------------------------------------------------------------------------------
Cash and cash equivalents 53,841
- -------------------------------------------------------------------------------
Loans held for sale 3,927
- -------------------------------------------------------------------------------
Investment securities 139,658
- -------------------------------------------------------------------------------
Loans 443,915
Less: Allowance for credit losses (5,589)
Unearned income (1,670)
- -------------------------------------------------------------------------------
Net loans 436,656
- -------------------------------------------------------------------------------
Bank premises and equipment 21,293
- -------------------------------------------------------------------------------
Other assets 10,609
- -------------------------------------------------------------------------------
Total assets $665,984
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
- -------------------------------------------------------------------------------
LIABILITIES
Deposits:
Noninterest-bearing deposits $65,146
Interest-bearing deposits 471,902
- -------------------------------------------------------------------------------
Total deposits 537,048
Short-term borrowings:
Federal funds purchased and securities sold under
agreements to repurchase 21,284
Other short-term borrowings 34,145
Long-term debt 4,680
Accrued interest and other liabilities 4,200
- -------------------------------------------------------------------------------
Total liabilities 601,357
- -------------------------------------------------------------------------------
STOCKHOLDER'S EQUITY
Common Stock 5,391
Surplus 27,063
Retained earnings 31,801
Net unrealized gain on securities available for sale 372
- -------------------------------------------------------------------------------
Total stockholders' equity 64,627
- -------------------------------------------------------------------------------
Total liabilities and stockholders' equity $665,984
- -------------------------------------------------------------------------------
<PAGE>
FCNB CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the One and Two Month Periods Ended February 29, 1996
(Dollars in thousands, except per share amounts)
- -------------------------------------------------------------------------------
For One Month For Two Months
Ended Ended
February 29, February 29,
1996 1996
- -------------------------------------------------------------------------------
Interest income:
Interest and fees on loans $3,600 $7,681
Interest and dividends on investment
securities:
Taxable 645 1,390
Tax exempt 51 103
Dividends 44 89
Interest on federal fund sold 60 181
Other interest income 2 7
- -------------------------------------------------------------------------------
Total interest income 4,402 9,451
- -------------------------------------------------------------------------------
Interest expense:
Interest on deposits 1,626 3,624
Interest on federal funds purchased and
securities sold under agreements to
repurchase 225 373
Interest on other short-term borrowings 28 139
- -------------------------------------------------------------------------------
Total interest expense 1,879 4,136
- -------------------------------------------------------------------------------
Net interest income 2,523 5,315
Provision for credit losses 33 48
- -------------------------------------------------------------------------------
Net interest income after provision for
credit losses 2,490 5,267
- -------------------------------------------------------------------------------
Noninterest income:
Service fees 191 382
Net securities gains (losses) (1) 65
Gain (loss) on sale of loans 33 58
Other operating income 164 279
- -------------------------------------------------------------------------------
Total noninterest income 387 784
- -------------------------------------------------------------------------------
Noneinterest expenses:
Salaries and employee benefits 838 3,249
Occupancy expenses 177 348
Equipment expenses 141 245
Other operating expenses 691 1,418
- -------------------------------------------------------------------------------
Total noninterest expenses 1,847 5,260
- -------------------------------------------------------------------------------
Income before provision for income taxes 1,030 791
Provision for income taxes 381 1,987
- -------------------------------------------------------------------------------
Net income $649 ($1,196)
- -------------------------------------------------------------------------------
Net income per share $0.12 ($0.22)
- -------------------------------------------------------------------------------
Weighted average number of shares
outstanding 5,390,779 5,390,779
- -------------------------------------------------------------------------------
<PAGE>
FCNB CORP
NEWS RELEASE
For Immediate Release Contact: A. Patrick Linton
- --------------------- (301) 662-2191
March 29, 1996
FCNB Corp (the "Company") issued today an announcement clarifying the
terms of its previously announced stock repurchase program. Pursuant to the
stock repurchase program the Company may repurchase up to 80,000 shares of FCNB
Common Stock in open market transactions over the next two years, and an
aggregate of 200,000 shares over the next five years, with an aggregate maximum
expenditure of approximately $4,000,000. The Company reiterated that there was
no minimum number of shares which FCNB was obligated to repurchase, and that
repurchases would be made in the discretion of management based on market,
business, legal, regulatory, accounting, and other factors, commencing on or
after April 1, 1996.
FCNB has 5,390,779 shares of Common Stock outstanding. FCNB Common
Stock, which trades on the Nasdaq National Market under the symbol "FCNB",
closed yesterday at 18 per share.
FCNB is headquartered in Frederick, Maryland. The multi-bank holding
company offers full service banking through FCNB Bank, with offices in
Frederick, Carroll, and Montgomery counties, and through Elkridge Bank, with
offices in Howard, Anne Arundel and Prince George's counties. FCNB Corp's bank
subsidiaries are members FDIC and Equal Housing Lenders.
- END -
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> FEB-29-1996
<EXCHANGE-RATE> 1
<CASH> 23,381
<INT-BEARING-DEPOSITS> 2,414
<FED-FUNDS-SOLD> 28,046
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 98,912
<INVESTMENTS-CARRYING> 40,746
<INVESTMENTS-MARKET> 41,543
<LOANS> 442,245
<ALLOWANCE> 5,589
<TOTAL-ASSETS> 665,984
<DEPOSITS> 537,048
<SHORT-TERM> 58,429
<LIABILITIES-OTHER> 4,200
<LONG-TERM> 4,680
<COMMON> 5,391
0
0
<OTHER-SE> 59,236
<TOTAL-LIABILITIES-AND-EQUITY> 665,984
<INTEREST-LOAN> 7,681
<INTEREST-INVEST> 1,582
<INTEREST-OTHER> 188
<INTEREST-TOTAL> 9,451
<INTEREST-DEPOSIT> 3,624
<INTEREST-EXPENSE> 4,136
<INTEREST-INCOME-NET> 5,315
<LOAN-LOSSES> 48
<SECURITIES-GAINS> 65
<EXPENSE-OTHER> 5,260
<INCOME-PRETAX> 791
<INCOME-PRE-EXTRAORDINARY> 791
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,196)
<EPS-PRIMARY> (0.22)
<EPS-DILUTED> (0.22)
<YIELD-ACTUAL> 4.84
<LOANS-NON> 867
<LOANS-PAST> 122
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 13,480
<ALLOWANCE-OPEN> 5,242
<CHARGE-OFFS> 11
<RECOVERIES> 310
<ALLOWANCE-CLOSE> 5,589
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 424
</TABLE>
