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
Date of Report (Date of earliest event reported): February 24, 1999
FCNB CORP
(Exact name of registrant as specified in its charter)
MARYLAND 52-1479635
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
7200 FCNB COURT, FREDERICK, MARYLAND 21703
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (301)662-2191
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ITEM 7: FINANCIAL STATEMENTS
On December 31, 1998, FCNB Corp (the "Company") completed its
acquisition of Frederick Underwriters, Inc. and its affiliated companies
("Underwriters"), 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 unaudited consolidated balance
sheet for the Company, including Underwriters, as of January 31, 1999 and the
related unaudited consolidated statement of income and comprehensive income for
the one-month period then ended.
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FCNB CORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands) January 31,
1999
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ASSETS
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Cash and due from banks $27,974
Interest-bearing deposits in other 5,723
banks
Federal funds sold 2,408
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Cash and cash equivalents 36,105
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Loans held for sale 4,889
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Investment securities held to maturity 29,789
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Investment securities available for 412,926
sale-at fair value
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Loans 722,157
Less: Allowance for credit losses (7,325)
Unearned income (20)
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Net loans 714,812
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Bank premises and equipment 25,089
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Other assets 56,855
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Total assets $1,280,465
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LIABILITIES AND SHAREHOLDERS' EQUITY
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LIABILITIES
Deposits:
Noninterest-bearing deposits $122,141
Interest-bearing deposits 703,093
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Total deposits 825,234
Short-term borrowings:
Federal funds purchased and
securities sold under
agreements to repurchase 66,286
Other short-term borrowings 243,133
Long term debt:
Guaranteed preferred beneficial
interests in the
Company's subordinated debentures 40,250
Accrued interest and other liabilities 14,956
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Total liabilities 1,189,859
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SHAREHOLDERS' EQUITY
Common stock 10,062
Surplus 46,609
Retained earnings 29,643
Accumulated other comprehensive income 4,292
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Total shareholders' equity 90,606
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Total liabilities and $1,280,465
shareholders' equity
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FCNB CORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)
(Dollars in thousands, except per share amounts)
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For the one month ended
January 31,
1999
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Interest income:
Interest and fees on loans $5,326
Interest and dividends on investment
securities:
Taxable 2,154
Tax exempt 31
Dividends 121
Interest on federal funds sold 49
Other interest income 2
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Total interest income 7,683
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Interest expense:
Interest on deposits 2,501
Interest on federal funds purchased and securities
sold under agreements to repurchase 287
Interest on other short-term borrowings 1,074
Interest on long term debt 290
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Total interest expense 4,152
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Net interest income 3,531
Provision for credit losses 150
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Net interest income after provision for credit losses 3,381
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Noninterest income:
Service fees 406
Insurance commissions 585
Net securities gains 257
Gain on sale of loans 87
Income from bank-owned life insurance 134
Other operating income 174
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Total noninterest income 1,643
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Noninterest expenses:
Salaries and employee benefits 1,973
Occupancy expenses 416
Equipment expenses 274
Merger related expenses 0
Other operating expenses 684
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Total noninterest expenses 3,347
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Income before provision for income taxes 1,677
Income tax expense 542
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Net income 1,135
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Other comprehensive income, net of tax:
Unrealized gains on securities:
Unrealized holding gains arising during period, net of 578
taxes of $378
Less: reclassification adjustment for gains
included in net income, net of taxes of $101 156
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Other comprehensive income, net of taxes of $277 422
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Comprehensive income $1,557
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Net income - before merger related expenses $1,135
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Basic earnings per share $0.11
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Diluted earnings per share $0.11
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Basic earnings per share - before merger related expenses $0.11
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Diluted earnings per share - before merger related expenses $0.11
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Basic weighted average number of shares outstanding 10,061,060
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Diluted weighted average number of shares outstanding 10,104,109
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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 hereunto duly authorized.
FCNB CORP
By: /s/ A. Patrick Linton
------------------------
A. Patrick Linton
Dated: February 24, 1999
