<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 September 30, 1998
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For transition period from __________ to __________
Commission File Number 0 -17609
WEST SUBURBAN BANCORP, INC.
- ------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
ILLINOIS 36-3452469
- --------------------------------- --------------------------------------
(State or other jurisdiction (I.R.S. Employer Identification Number)
of incorporation or organization)
711 SOUTH MEYERS ROAD, LOMBARD, ILLINOIS 60148
- ------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (630) 629-4200
- -------------------------------------------------------------------
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 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 X No
--- ---
Indicate the number of shares outstanding of each of the Issuer's class of
common stock as of the latest practicable date.
15,000,000 shares of Common Stock, no par value, were authorized and 432,495
shares were issued and outstanding as of September 30, 1998.
<PAGE>
WEST SUBURBAN BANCORP, INC.
Form 10-Q Quarterly Report
Table of Contents
PART I
Page Number
Item 1. Financial Statements . . . . . . . . . . . . . . . . . . . . . . .3
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations . . . . . . . . . . . . . . . . . . . .9
Item 3. Quantitative and Qualitative Disclosures About Market Risk . . . 16
PART II
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . . 17
Item 2. Changes in Securities and Use of Proceeds. . . . . . . . . . . . 17
Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . . . . . . 17
Item 4. Submission of Matters to a Vote of Security Holders. . . . . . . 17
Item 5. Other Information. . . . . . . . . . . . . . . . . . . . . . . . 17
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . 17
Form 10-Q Signature Page . . . . . . . . . . . . . . . . . . . . . . . . . 18
THIS REPORT MAY INCLUDE CERTAIN FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF
SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. WEST SUBURBAN BANCORP, INC. ("WEST
SUBURBAN") INTENDS SUCH FORWARD-LOOKING STATEMENTS TO BE COVERED BY THE SAFE
HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS CONTAINED IN THE PRIVATE
SECURITIES REFORM ACT OF 1995, AS AMENDED, AND IS INCLUDING THIS STATEMENT FOR
PURPOSES OF INDICATING SUCH INTENT. FORWARD-LOOKING STATEMENTS, WHICH ARE BASED
ON CERTAIN ASSUMPTIONS AND DESCRIBE FUTURE PLANS, STRATEGIES AND EXPECTATIONS OF
WEST SUBURBAN, ARE GENERALLY IDENTIFIABLE BY USE OF THE WORDS "BELIEVE,"
"EXPECT," "INTEND," "ANTICIPATE," "ESTIMATE," "PROJECT" OR SIMILAR EXPRESSIONS.
WEST SUBURBAN'S ABILITY TO PREDICT RESULTS OR THE ACTUAL EFFECT OF FUTURE PLANS
OR STRATEGIES IS INHERENTLY UNCERTAIN. FACTORS WHICH COULD HAVE A MATERIAL
ADVERSE AFFECT ON THE OPERATIONS AND FUTURE PROSPECTS OF WEST SUBURBAN AND WEST
SUBURBAN BANK (THE "BANK" AND TOGETHER WITH WEST SUBURBAN, THE "COMPANY")
INCLUDE, BUT ARE NOT LIMITED TO, CHANGES IN INTEREST RATES, GENERAL ECONOMIC
CONDITIONS, LEGISLATIVE/REGULATORY CHANGES, MONETARY AND FISCAL POLICIES OF THE
U.S. GOVERNMENT, INCLUDING POLICIES OF THE U.S. TREASURY AND THE FEDERAL RESERVE
BOARD, THE QUALITY OR COMPOSITION OF THE LOAN OR INVESTMENT PORTFOLIOS, DEMAND
FOR LOAN PRODUCTS, DEPOSIT FLOWS, COMPETITION, DEMAND FOR FINANCIAL SERVICES IN
THE COMPANY'S MARKET AREA AND ACCOUNTING PRINCIPLES, POLICIES AND GUIDELINES.
THESE RISKS AND UNCERTAINTIES SHOULD BE CONSIDERED IN EVALUATING FORWARD-LOOKING
STATEMENTS AND UNDUE RELIANCE SHOULD NOT BE PLACED ON SUCH STATEMENTS. FURTHER
INFORMATION CONCERNING THE COMPANY AND ITS BUSINESS, INCLUDING ADDITIONAL
FACTORS THAT COULD MATERIALLY AFFECT THE COMPANY'S FINANCIAL RESULTS, IS
INCLUDED IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
2
<PAGE>
PART I
ITEM 1. FINANCIAL STATEMENTS
WEST SUBURBAN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(UNAUDITED)
<TABLE>
<CAPTION>
SEPTEMBER 30, December 31,
1998 1997
------------- ------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 37,132 $ 38,251
Interest-earning deposits in financial institutions 551 343
Federal funds sold 52,500 21,740
---------- ----------
Total cash and cash equivalents 90,183 60,334
Investment securities:
Available for sale (amortized cost of $188,782 in
1998; $218,892 in 1997) 189,687 218,587
Held to maturity (fair value of $195,304 in
1998; $199,905 in 1997) 193,620 199,292
Loans, less allowance for loan losses of $9,621 in 1998;
$9,772 in 1997 732,884 762,538
Premises and equipment, net 32,600 31,142
Other real estate 2,951 2,450
Accrued interest and other assets 20,868 19,348
---------- ----------
TOTAL ASSETS $1,262,793 $1,293,691
---------- ----------
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing $ 109,897 $ 124,220
Interest-bearing 1,001,712 1,020,729
---------- ----------
Total deposits 1,111,609 1,144,949
Accrued interest and other liabilities 13,706 16,389
---------- ----------
TOTAL LIABILITIES 1,125,315 1,161,338
---------- ----------
Shareholders' equity:
Common Stock, Class A, no par value; 1,000,000 shares authorized;
347,015 shares issued and outstanding 2,774
Common Stock, Class B, no par value; 1,000,000 shares authorized;
85,480 shares issued and outstanding 683
Common Stock, no par value; 15,000,000 shares authorized; 432,495
shares issued and outstanding 3,457
Surplus 38,066 38,066
Retained earnings 95,410 91,014
Accumulated other comprehensive income:
Unrealized gain (loss) on securities available for sale,
net of taxes 545 (184)
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 137,478 132,353
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,262,793 $1,293,691
---------- ----------
---------- ----------
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
3
<PAGE>
WEST SUBURBAN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Dollars in thousands, except per share data)
(UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------- -------
<S> <C> <C>
INTEREST INCOME
Loans, including fees $49,061 $52,271
------- -------
Investment securities:
Taxable 16,851 15,943
Nontaxable 1,462 1,582
------- -------
Total investment securities 18,313 17,525
Deposits in financial institutions 19 11
Federal funds sold 2,210 1,438
------- -------
Total interest income 69,603 71,245
------- -------
INTEREST EXPENSE
Deposits 32,211 32,833
Other 129 336
------- -------
Total interest expense 32,340 33,169
------- -------
Net interest income 37,263 38,076
PROVISION FOR LOAN LOSSES 1,675 847
------- -------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 35,588 37,229
------- -------
OTHER OPERATING INCOME
Service fees 2,359 2,574
Net realized gain on sales of investment securities
available for sale 541 5
Write-down of carrying value of investment securities
available for sale (3,200)
Trust fees 146 156
Net gain on sale of loans originated for sale 539 182
Loan servicing 314 544
Net gain on sale of other real estate 89 1,466
Litigation settlement 2,344
Other 3,526 2,730
------- -------
Total other operating income 4,314 10,001
------- -------
OTHER OPERATING EXPENSE
Salaries and employee benefits 11,707 11,945
Occupancy 2,470 2,172
Furniture and equipment 2,326 1,945
FDIC insurance premiums 175 136
Professional fees 494 581
Data processing 859 653
Other real estate 243 492
Other 4,651 4,081
------- -------
Total other operating expense 22,925 22,005
------- -------
INCOME BEFORE INCOME TAXES 16,977 25,225
INCOME TAXES 4,986 8,704
------- -------
NET INCOME 11,991 16,521
OTHER COMPREHENSIVE INCOME, NET OF TAX:
Unrealized holding gains on securities available for sale arising
during the period (net of taxes of $490 in 1998 and $468 in 1997) 729 710
------- -------
Total other comprehensive income 729 710
------- -------
COMPREHENSIVE INCOME $12,720 $17,231
------- -------
------- -------
EARNINGS PER SHARE-BASIC $ 27.72 $ 38.20
------- -------
------- -------
CASH DIVIDENDS DECLARED PER SHARE $ 17.50 $ 13.50
------- -------
------- -------
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
4
<PAGE>
WEST SUBURBAN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Dollars in thousands, except per share data)
(UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------- -------
<S> <C> <C>
INTEREST INCOME
Loans, including fees $16,208 $17,502
------- -------
Investment securities:
Taxable 5,922 5,901
Nontaxable 488 511
------- -------
Total investment securities 6,410 6,412
Deposits in financial institutions 9 4
Federal funds sold 453 298
------- -------
Total interest income 23,080 24,216
------- -------
INTEREST EXPENSE
Deposits 10,763 11,409
Other 44 40
------- -------
Total interest expense 10,807 11,449
------- -------
Net interest income 12,273 12,767
PROVISION FOR LOAN LOSSES 1,187 276
------- -------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 11,086 12,491
------- -------
OTHER OPERATING INCOME
Service fees 788 849
Net realized gain on sales of investment securities
available for sale 218 5
Write-down of carrying value of investment securities
available for sale (3,200)
Trust fees 16 20
Net gain on sale of loans originated for sale 218 77
Loan servicing 99 126
Net gain (loss) on sale of other real estate 59 (4)
Other 1,192 956
------- -------
Total other operating income (loss) (610) 2,029
------- -------
OTHER OPERATING EXPENSE
Salaries and employee benefits 3,943 3,694
Occupancy 884 708
Furniture and equipment 673 539
FDIC insurance premiums 51 52
Professional fees 175 136
Data processing 346 248
Other real estate 138 110
Other 1,583 1,300
------- -------
Total other operating expense 7,793 6,787
------- -------
INCOME BEFORE INCOME TAXES 2,683 7,733
INCOME TAXES 331 2,610
------- -------
NET INCOME 2,352 5,123
OTHER COMPREHENSIVE INCOME, NET OF TAX:
Unrealized holding gains on securities available for sale arising
during the period (net of taxes of $428 in 1998 and $378 in 1997) 649 572
------- -------
Total other comprehensive income 649 572
------- -------
COMPREHENSIVE INCOME $ 3,001 $ 5,695
------- -------
------- -------
EARNINGS PER SHARE-BASIC $ 5.44 $ 11.85
------- -------
------- -------
CASH DIVIDENDS DECLARED PER SHARE $ 6.50 $ 4.50
------- -------
------- -------
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
5
<PAGE>
WEST SUBURBAN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Dollars in thousands)
(UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 11,991 $ 16,521
-------- --------
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 2,514 2,272
Provision for loan losses 1,675 847
(Benefit) provision for deferred income taxes (1,331) 1,609
Net premium amortization and discount accretion of investment
securities 475 394
Net realized gain on sales of investment securities available
for sale (541) (5)
Write-down of carrying value of investment securities available
for sale 3,200
Net gain on sale of loans held for sale (539) (182)
Proceeds from sale of loans held for sale 7,025 1,675
Origination of loans held for sale (10,776) (3,027)
Loss (gain) on sale of premises and equipment 49 (7)
Gain on sale of other real estate (89) (1,466)
Increase in accrued interest and other assets (668) (684)
(Decrease) increase in accrued interest and other liabilities (2,682) 1,479
-------- --------
Total adjustments (1,688) 2,905
-------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES 10,303 19,426
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Investment securities available for sale:
Proceeds from sales 52,281
Proceeds from maturities 126,575 46,408
Purchases (152,002) (96,198)
Investment securities held to maturity:
Proceeds from maturities 170,104 22,576
Purchases (164,312) (23,226)
Purchase of minority interest in subsidiaries (26) (250)
Net decrease in loans 29,841 3,685
Purchases of premises and equipment (4,039) (3,131)
Proceeds from sale of premises and equipment 18 7
Proceeds from sale of other real estate 2,015 2,553
-------- --------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 60,455 (47,576)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net (decrease) increase in total deposits (33,340) 33,463
Decrease in FHLB advances (1,350)
Cash dividends paid (7,569) (5,622)
-------- --------
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (40,909) 26,491
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 29,849 (1,659)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 60,334 68,650
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 90,183 $ 66,991
-------- --------
-------- --------
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Interest on deposits and other borrowings $ 35,524 $ 29,857
Income taxes 6,022 6,570
Transfers from loans to other real estate 2,427 395
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
6
<PAGE>
WEST SUBURBAN BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - BASIS OF PRESENTATION
The consolidated financial statements include the accounts of West Suburban
Bancorp, Inc. ("West Suburban") and West Suburban Bank (the "Bank" and
collectively with West Suburban, the "Company"). Significant intercompany
accounts and transactions have been eliminated. The unaudited interim
consolidated financial statements are prepared pursuant to the rules and
regulations for reporting on Form 10-Q. Accordingly, certain information and
footnote disclosures normally accompanying the annual financial statements have
been omitted. The interim financial statements and notes should be read in
conjunction with the consolidated financial statements and notes thereto
included in the latest Annual Report on Form 10-K filed by the Company. The
consolidated financial statements include all adjustments (none of which were
other than normal recurring adjustments) necessary for a fair statement of the
results for the interim periods. The results for the interim periods are not
necessarily indicative of the results to be expected for the entire fiscal year.
Certain amounts reported in prior periods have been reclassified to conform to
the 1998 presentation.
NOTE 2 - SECURITIES
Debt and marketable equity securities are classified into two categories, "held
to maturity" and "available for sale." Held to maturity securities include those
debt securities where the Company has both the ability and positive intent to
hold them to maturity. Securities not meeting these criteria are classified as
available for sale. Held to maturity securities are carried at amortized
historical cost while available for sale securities are carried at fair value
with net unrealized gains and losses (net of tax) reported as a separate
component of shareholders' equity. Gains or losses on disposition are based on
the net proceeds and the adjusted carrying amount of the securities sold, using
the specific identification method. The Company does not engage in trading
activities. The Company has not utilized futures, forwards, swaps or option
contracts in order to manage its interest rate risk or otherwise.
During the first nine months of 1998, the Company's unrealized loss on
securities available for sale improved $.7 million to a gain of $.5 million at
September 30, 1998 from a $.2 million loss at December 31, 1997, net of taxes.
During the third quarter of 1998, the Company recognized a loss of $3.2 million
representing the other-than-temporary impairment of the entire carrying value of
an available for sale security (Class B Notes from a lease securitization
purchased in 1997).
NOTE 3 - OUTSTANDING LINES OF CREDIT AVAILABLE - (Dollars in thousands)
<TABLE>
<CAPTION>
SEPTEMBER 30, 1998 December 31, 1997
------------------ -----------------
<S> <C> <C>
Home equity lines $163,207 $152,292
Commercial credit lines 112,053 89,245
Letters of Credit 26,322 18,455
Visa credit lines 40,065 38,672
-------- --------
Total commitments $341,647 $298,664
-------- --------
-------- --------
</TABLE>
The Company had $24.8 million and $4.9 million of commitments to originate
residential mortgage loans as of September 30, 1998 and December 31, 1997,
respectively.
NOTE 4 - SHAREHOLDERS' EQUITY - COMMON STOCK
At the Annual Meeting of Shareholders of West Suburban held on May 13, 1998, the
shareholders approved an amendment to West Suburban's Articles of Incorporation
the effect of which was to redesignate each share of Class A Common Stock and
each share of Class B Common Stock outstanding as Common Stock. Additionally,
the number of votes per share of Common Stock was reduced from five votes per
share to one vote per share on all matters submitted to the shareholders of West
Suburban. The amendment to West Suburban's Articles of Incorporation also had
the effect of increasing the number of shares of Common Stock that West Suburban
is authorized to issue from two million to fifteen million shares.
7
<PAGE>
NOTE 5 - NEW ACCOUNTING STANDARDS
In December 1996, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") 127, "Deferral of the
Effective Date of Certain Provisions of SFAS 125," which deferred the effective
date of certain of the provisions of SFAS 125 for one year. The adoption of
these provisions did not have a material impact on its financial condition or
results of operations.
In June 1997, FASB issued SFAS 130, "Reporting Comprehensive Income," which
requires businesses to disclose comprehensive income and its components in their
general-purpose financial statements. SFAS 130 is effective for fiscal years
beginning after December 15, 1997, with reclassification of comparative
financial statements and is applicable to interim periods. The Company adopted
SFAS 130 effective for the quarter ended March 31, 1998, with appropriate
reclassifications made to the prior period financial statements to conform to
the new presentation.
In June 1997, FASB issued SFAS 131, "Disclosures about Segments of an Enterprise
and Related Information," which was effective for the Company beginning January
1, 1998. SFAS 131 redefines how operating segments are determined and requires
disclosure of certain financial and descriptive information about a company's
operating segments. The Company has not yet completed its analysis of which
operating segments, if any, the Company will be required to report separately.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
BALANCE SHEET ANALYSIS
ASSET DISTRIBUTION. Total consolidated assets at September 30, 1998, decreased
approximately $30.9 million (2.4%) to $1,262.8 million at September 30, 1998,
from $1,293.7 million at December 31, 1997. Total cash and cash equivalents
increased $29.9 million (49.5%) to $90.2 million at September 30, 1998, from
$60.3 million at December 31, 1997. Cash and due from banks decreased $1.2
million to $37.1 million at September 30, 1998, from $38.3 million at
December 31, 1997. Aggregate holdings in federal funds sold increased $30.8
million (141.5%) to $52.5 million at September 30, 1998 from $21.7 million at
December 31, 1997. The increase in federal funds sold was the result of
decreases in investment securities and total loans. Aggregate holdings in
investment securities decreased $34.6 million (8.3%) to $383.3 million at
September 30, 1998 from $417.9 million at December 31, 1997. The decrease in
investment securities was primarily the result of redemptions of securities
by issuers as they have exercised their call or redemption rights due to
decreases in interest rates. The Company's objectives in managing the
securities portfolio are driven by the dynamics of its entire balance sheet
which includes managing the portfolio to maximize yield over an entire
interest rate cycle while providing liquidity and minimizing market risk.
Total loans decreased $29.8 million (3.9%) to $742.5 million at September 30,
1998, from $772.3 million at December 31, 1997. The Company operates in a highly
competitive environment for consumer and commercial credit. Management has begun
to take steps that are intended to increase the Company's loan portfolio. During
1998, the Company recorded approximately $16.9 million of indirect automobile
loans, $13.5 million of which were originated during the third quarter.
Additionally, the Company hired a new commercial lender and continues to seek to
hire additional commercial lenders. The Company will attempt to remain
competitive in its market by offering competitive rates and loan products while
not compromising its credit evaluation standards to attract new business.
Over the next 15 months, the Company intends to add four facilities to its
branch network. The new locations will be located in the Aurora/Naperville area,
the Romeoville area, the Bartlett/Hanover Park area and the St. Charles/West
Chicago area. These facilities will allow the Company to serve new markets and
enhance the Company's position as it continues to expand in the western suburbs
of Chicago.
ALLOWANCE FOR LOAN LOSSES AND ASSET QUALITY. The Company maintains an
allowance for loan losses to absorb possible losses in the loan portfolio.
The allowance for loan losses is established after a determination of the
potential credit risk of the loans held by the Company. Management evaluates
the adequacy of the allowance based on past loan loss experience, known and
inherent risks in the loan portfolio, adverse situations that may affect the
borrowers' ability to repay, estimated value of any underlying collateral,
and current and prospective economic conditions. The allowance for loan
losses decreased $.2 million to $9.6 million at September 30, 1998 from $9.8
million at December 31, 1997. The ratio of the allowance for loan losses to
total loans outstanding increased at September 30, 1998 to 1.30% compared to
1.27% at December 31, 1997. Nonperforming loans increased $13.2 million
(168.3%) to $21.1 million at September 30, 1998 from $7.9 million at December
31, 1997. This increase was primarily due to the credit relationships with a
leasing company being catagorized as nonaccrual during the third quarter of
1998 and three loans secured by commercial real estate and one loan secured
by business assets being categorized as accruing loans 90 days past due. As
of September 30, 1998 and December 31, 1997, total nonperforming loans to net
loans were 2.9% and 1.0%, respectively. The allowance for loan losses was
approximately 46% and 124% of the level of nonperforming loans at September
30, 1998 and December 31, 1997, respectively.
As of September 30, 1998, the Company had $11.4 million in loans outstanding
to a leasing company consisting of a warehouse line of credit with a
principal balance of $7.7 million and $3.7 million of purchased leases. The
warehouse line of credit is secured by leases and various other assets owned
by the leasing company. The leasing company was engaged in the business of
originating and servicing small equipment leases, until May 1998 when it sold
substantially all its assets. Subsequently, various irregularities in the
leasing company's operations were discovered. In August 1998, the leasing
company made an assignment for the benefit of creditors. The Company remains
a secured creditor of the leasing company.
9
<PAGE>
In addition, the Company owns Class B Notes issued in connection with lease
securitizations arranged by the leasing company. During the third quarter of
1998, the Company recognized a loss of $3.2 million representing the
other-than-temporary impairment of the entire carrying value of the Class B
Notes, which were classified as available for sale investment securities.
As of the date of this filing, the Company is taking possession of all leases
and other assets that secure the warehouse line of credit, seeking bids for
the sale of these leases and the other assets as well as other leases it
purchased from the leasing company, evaluating the continued retention of
those leases, engaging in discussions with the trustee for and the other
beneficial owner of the securitized leases, conducting negotiations with the
guarantors of the leasing company's obligations, and exploring other possible
ways to maximize realization.
The following table presents an analysis of the Company's nonperforming loans
for the periods stated (dollars in thousands):
<TABLE>
<CAPTION>
SEPTEMBER 30, 1998 December 31, 1997 Dollar Change
------------------ ----------------- -------------
<S> <C> <C> <C>
Nonaccrual loans $13,209 $3,042 $10,167
Accruing loans 90 days past due 7,906 4,829 3,077
------- ------ -------
Total nonperforming loans $21,115 $7,871 $13,244
------- ------ -------
------- ------ -------
Nonperforming loans as a percent
of net loans 2.9% 1.0%
Other real estate $ 2,951 $2,450 $ 501
------- ------ -------
------- ------ -------
</TABLE>
The following table presents an analysis of the Company's provision for loan
losses for the periods stated (dollars in thousands):
<TABLE>
<CAPTION>
1998 1997
-------------------------------- -------------------
3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr.
-------------------------------- --------------------
<S> <C> <C> <C> <C> <C>
Provision-quarter $1,187 $237 $251 $776 $276
Provision-year to date 1,675 488 251 1,623 847
Net chargeoffs-quarter 1,158 156 511 984 270
Net chargeoffs-year to date 1,825 667 511 1,454 470
Allowance at period end 9,621 9,592 9,511 9,772 9,980
Allowance to period end total loans 1.30% 1.30% 1.24% 1.27% 1.26%
</TABLE>
LIABILITY DISTRIBUTION. Total liabilities decreased $36.0 million (3.1%) to
$1,125.3 million at September 30, 1998 from $1,161.3 million at December 31,
1997. This decrease was primarily due to runoff in certificates of deposit. The
Company believes that the present declining interest rate environment makes the
cost of offering special rates to attract deposits outweigh any perceived
benefits. Additionally, the Company believes that the current interest rate
environment makes certificates of deposit less attractive to its customers when
compared to other investment alternatives including investments in mutual funds
and individual stocks. During the second quarter of 1998, the Company promoted a
money market checking account as an alternative to savings accounts or
certificates of deposit. The Company has attracted $93.0 million in money market
checking from new funds and run-off from existing higher rate certificates of
deposit. Management's goal is to promote its deposit products when feasible
while preserving the Company's net interest margin.
10
<PAGE>
Balances in the Company's major categories of deposits are summarized in the
following table (dollars in thousands):
<TABLE>
<CAPTION>
September 30, 1998 December 31, 1997 Dollar change Percent
------------------ ----------------- ------------- -------
<S> <C> <C> <C> <C>
Demand and other noninterest-bearing $ 109,897 $ 124,220 ($14,323) (11.5)%
NOW 28,771 48,915 (20,144) (41.2)
Money market checking 93,310 283 93,027 N/A
Money market savings 458,523 465,683 (7,160) (1.5)
Time, $100,000 and over 86,547 84,083 2,464 2.9
Time, other 334,561 421,765 (87,204) (20.7)
---------- ---------- -------- -----
Total $1,111,609 $1,144,949 ($33,340) (2.9)%
---------- ---------- -------- -----
---------- ---------- -------- -----
</TABLE>
The Company attempts to remain well positioned in its market by offering
competitive rates on its savings and certificate of deposit products.
SHAREHOLDERS' EQUITY. Shareholders' equity increased $5.1 million (3.9%) to
$137.5 million at September 30, 1998 from $132.4 million at December 31, 1997.
This increase was primarily the result of the net retention (after the
declaration of dividends) of $5.2 million of the Company's comprehensive income
during the first nine months of 1998.
At the Annual Meeting of Shareholders of West Suburban held on May 13, 1998, the
shareholders approved an amendment to West Suburban's Articles of Incorporation
the effect of which was to redesignate each share of Class A Common Stock and
each share of Class B Common Stock outstanding as Common Stock. Additionally,
the number of votes per share of Common Stock was reduced from five votes per
share to one vote per share on all matters submitted to the shareholders of West
Suburban. The amendment to West Suburban's Articles of Incorporation also had
the effect of increasing the number of shares of Common Stock that West Suburban
is authorized to issue from two million to fifteen million shares.
CAPITAL RESOURCES
The Company's capital ratios as well as those of the Bank as of September 30,
1998 are presented below. All capital ratios are in excess of the regulatory
capital requirements which call for a minimum total risk-based capital ratio of
8% for the Company and the Bank (at least one-half of the minimum total
risk-based capital must consist of tier 1 capital), a minimum leverage ratio (3%
for the most highly rated banks that do not expect significant growth; all other
institutions are required to maintain a minimum leverage capital ratio of 4% to
5% depending on their particular circumstances and risk profiles) for the
Company and the Bank. Bank holding companies and their subsidiaries are
generally expected to operate at or above the minimum capital requirements and
the ratios shown below are in excess of regulatory minimums and should allow the
Company and the Bank to operate without capital adequacy concerns.
The following table sets forth selected regulatory capital ratios of the Company
and the Bank at September 30, 1998:
<TABLE>
<CAPTION>
Total
Tier 1 Risk-
Risk-Based Based Leverage
Capital Capital Capital
------- ------- -------
<S> <C> <C> <C>
West Suburban Bancorp, Inc. 13.45% 14.40% 10.62%
West Suburban Bank 11.65% 12.63% 9.06%
</TABLE>
The Federal Deposit Insurance Corporation Improvement Act of 1991 ("FDICIA")
provided the federal banking regulators with broad power to take prompt
corrective action to resolve the problems of undercapitalized institutions. The
extent of the regulators' powers depends on whether the institution in question
is "well capitalized," "adequately capitalized," "undercapitalized,"
"significantly undercapitalized" or "critically undercapitalized." Depending
upon the capital category to which an institution is assigned, the regulators'
11
<PAGE>
corrective powers include: requiring the submission of a capital restoration
plan; placing limits on asset growth and restrictions on activities; requiring
the institution to issue additional capital stock (including additional voting
stock) or to be acquired; restricting transactions with affiliates; restricting
the interest rate the institution may pay on deposits; ordering a new election
of directors of the institution; requiring that senior executive officers or
directors be dismissed; prohibiting the institution from accepting deposits from
correspondent banks; requiring the institution to divest certain subsidiaries;
prohibiting the payment of principal or interest on subordinated debt; and
ultimately, appointing a receiver for the institution. Management has been
advised that as of September 30, 1998 and December 31, 1997, the Bank qualified
as a "well-capitalized" institution.
LIQUIDITY
Liquidity is managed to ensure there is sufficient cash flow to satisfy demand
for credit, deposit withdrawals and attractive investment opportunities. The
Company manages its liquidity position through continuous monitoring of
profitability trends, asset quality, interest rate sensitivity and maturity
schedules of earning assets and supporting liabilities.
Generally, the Company uses cash and cash equivalents to meet its liquidity
needs. Additional liquidity is provided by maintaining assets which mature
within a short time-frame or which may be quickly converted to cash without
significant costs. These assets include interest-bearing deposits in financial
institutions, federal funds sold and investment securities available for sale.
As of September 30, 1998 and December 31, 1997, liquid assets represented 22.2%
and 21.6% of total assets, respectively. A more detailed discussion concerning
these assets is presented in the Asset Distribution Section of this report.
RATE SENSITIVITY GAPS
The Company attempts to maintain a conservative position with regard to interest
rate risk by actively managing its asset/liability gap positions and constantly
monitoring the direction and magnitude of gaps and risk. The Company attempts to
moderate the effects of changes in interest rates by adjusting its asset and
liability mix to achieve desired relationships between rate sensitive assets and
rate sensitive liabilities. Rate sensitive assets and liabilities are those
instruments that reprice within a given time period.
Movements in general market interest rates are a key element in changes in the
net interest margin. The Company's policy is to manage its balance sheet so that
fluctuations in net interest margins are minimized regardless of the level of
interest rates. However, the net interest margin does vary slightly due to
management's response to increasing competition from other financial
institutions.
12
<PAGE>
Listed below are the balances in the major categories of the rate sensitive
assets and liabilities that are subject to repricing as of September 30, 1998
(dollars in thousands):
<TABLE>
<CAPTION>
Three Over three Over one
months months to year to Over
or less twelve months three years three years Total
-------- ------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Rate sensitive assets:
Interest-bearing deposits in financial
institutions $ 551 $ 551
Federal funds sold 52,500 52,500
Investment securities 31,274 $ 42,428 $186,839 $122,766 383,307
Loans 270,580 210,428 115,483 132,805 729,296
-------- -------- -------- -------- ----------
Total interest-earning assets $354,905 $252,856 $302,322 $255,571 $1,165,654
-------- -------- -------- -------- ----------
-------- -------- -------- -------- ----------
Rate sensitive liabilities:
Money market savings $458,523 $ 458,523
Money market checking 93,310 93,310
NOW 28,771 28,771
Time deposits:
Less than $100,000 53,842 $139,941 $117,403 $ 23,375 334,561
$100,000 and over 36,235 18,207 27,107 4,998 86,547
-------- -------- -------- -------- ----------
Total interest-bearing liabilities $670,681 $158,148 $144,510 $ 28,373 $1,001,712
-------- -------- -------- -------- ----------
-------- -------- -------- -------- ----------
Interest sensitivity gap ($315,776) $ 94,708 $157,812 $227,198
Cumulative interest sensitivity gap (315,776) (221,068) (63,256) 163,942 $ 163,942
Cumulative interest-earning assets as a
percentage of cumulative
interest-bearing liabilities 52.9% 73.3% 93.5% 116.4%
Cumulative interest sensitivity gap as a
percentage of total assets (25.0) (17.5) (5.0) 13.0
</TABLE>
The above table does not necessarily indicate the future impact of general
interest rate movements on the Company's net interest income because the
repricing of certain assets and liabilities is discretionary and is subject to
competitive and other pressures. As a result, assets and liabilities indicated
as repricing within the same period may, in fact, reprice at different times and
at different rate levels. Assets and liabilities are reported in the earliest
time frame in which maturity or repricing may occur. The consolidated interest
rate sensitivity position of the Company within the one year window at
September 30, 1998 reflects cumulative net interest-earning assets compared
to cumulative net interest-bearing liabilities of 73.3% and cumulative net
interest-earning assets that reprice or mature within one year compared to
total assets of negative 17.5%.
RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
NET INCOME. The Company's net income for the nine months ended September 30,
1998 and 1997 was approximately $12.0 million and $16.5 million,
respectively. This represents a decrease of $4.5 million (27.4%) for the 1998
period when compared to the same period in 1997. This was partially due to
the decrease in other operating income in 1998 when compared to the same
period in 1997. Additionally, during the third quarter of 1998, the Company
recognized a loss of $3.2 million representing the other-than-temporary
impairment of the entire carrying value of the Class B Notes, which were
classified as available for sale investment securities. During the first
quarter of 1997, the Company recorded $2.3 million of income related to a
settlement of a claim arising from an investment that it made during the late
1980's. During this same period, the Company also sold its interest in a
property held as other real estate for $1.5 million. As this property had
been written off, this amount was reflected as a gain on sale of other real
estate. Net interest income decreased $.8 million. Provision for loan losses
increased $.8 million and other operating expense increased by $.9 million.
These decreases to income and increases to expense were partially offset by
decreases to income tax expense of $3.7 million.
13
<PAGE>
INTEREST INCOME. Total interest income, on a tax equivalent basis, decreased
$1.8 million for the nine months ended September 30, 1998 compared to the same
period in 1997. This decrease was primarily attributable to decreases in the
Company's average loan balances of $42.2 million to $747.4 million at
September 30, 1998 from $789.6 million at September 30, 1997. Yields on total
average interest-earnings assets decreased primarily due to average higher
levels of investment securities (which generally have lower yields when
compared to loans). Interest on the Company's securities portfolio declined
as higher average balances outstanding were invested in lower yielding
securities resulting from a declining interest rate environment.
INTEREST EXPENSE. Total interest expense decreased $.8 million for the nine
months ended September 30, 1998 compared to the same period during 1997.
Interest on deposits decreased $.6 million during this period. Average
interest-bearing liabilities decreased $7.1 million to $1,026.9 million at
September 30, 1998 from $1,034.0 million at September 30, 1997.
The following table reflects the extent to which changes in the volume of
interest-earning assets and interest-bearing liabilities and changes in interest
rates have affected net interest income on a tax equivalent basis for the nine
month period ended September 30, 1998, as compared to the same period in 1997
(dollars in thousands):
<TABLE>
<CAPTION>
CHANGE IN:
INTEREST INCOME VOLUME RATE TOTAL
---------- ------- -------
<S> <C> <C> <C>
Interest-bearing deposits in
financial institutions $ 8 $ 8
Federal funds sold 785 ($13) 772
Investment securities 1,179 (435) 744
Loans (2,776) (592) (3,368)
------- ------ ------
Total interest income (804) (1,040) (1,844)
------- ------ ------
INTEREST EXPENSE
Interest-bearing deposits (1,105) 483 (622)
Borrowed funds 19 (226) (207)
------- ------ ------
Total interest expense (1,086) 257 (829)
------- ------ ------
Net interest income $ 282 ($1,297) ($1,015)
------- ------ ------
------- ------ ------
</TABLE>
The following table presents an analysis of the Company's interest-earning
assets, interest-bearing liabilities, and non-interest-bearing deposits, volumes
for the periods stated on a cumulative basis as of the date indicated (dollars
in thousands):
<TABLE>
<CAPTION>
1998 1997
--------------------------------------- ------------------------
SEPT. 30 June 30 March 31 Dec. 31 Sept. 30
--------------------------------------- ------------------------
<S> <C> <C> <C> <C> <C>
Average investment securities $ 393,778 $ 382,510 $ 375,737 $ 377,580 $ 368,550
Average loans 747,424 751,066 760,041 781,655 789,576
Average interest-earning assets 1,195,606 1,198,477 1,189,645 1,195,400 1,193,192
Average noninterest-bearing deposits 106,664 106,169 103,688 110,248 104,502
Average interest-bearing deposits 1,024,082 1,024,263 1,017,207 1,032,768 1,027,120
Average deposits 1,130,746 1,130,432 1,120,895 1,143,016 1,131,622
Average interest-bearing liabilities 1,026,921 1,027,171 1,020,096 1,038,621 1,033,989
</TABLE>
PROVISION FOR LOAN LOSSES. The Company's provision for loan losses increased $.8
million (97.8%) for the nine months ended September 30, 1998 compared to the
same period in 1997. This was partially due to the increase in nonperforming
loans during 1998. Management monitors its nonperforming loans closely and will
initiate further increases to the provision for loan losses as warranted. See
the section entitled "Allowance for Loan Losses and Asset Quality " above.
OTHER OPERATING INCOME. Total other operating income decreased $5.7 million
(56.9%) for the nine months ended September 30, 1998 compared to the same
period in 1997. This decrease was primarily due to the Company settling a
claim relating to an investment that it made during the late 1980's. During
the first quarter of 1997, the Company recorded $2.3 million of income
related to this matter. During the first quarter of 1997, the Company also
sold its interest in a property held as other real estate for $1.5 million.
As the property had been written off, accordingly, this amount represented a
gain recognized as other operating income. Additionally, during the third
quarter of 1998, the Company recognized a loss of $3.2 million representing
the other-than-temporary impairment of the entire carrying value of the Class
B Notes, which were classified as available for sale investment securities
which was partially offset by $.5 million from gains on sale of investment
securities. Gains on sales of loans originated for sale increased $.4 million
for the nine months ended September 30, 1998 compared to the
14
<PAGE>
same period in 1997. The Company does not presently retain servicing on sold
loans which has resulted in decreasing servicing fees that is recognized by
increased gains on sales of loans originated for sale. Other income increased
$.8 million primarily due to increased fee revenue from increased mortgage
application volume and safe deposit box rentals which increased due to the
increased number of facilities offering safe deposit boxes.
OTHER OPERATING EXPENSE. Total other operating expense increased $.9 million
(4.2%) for the nine months ended September 30, 1998 compared to the same period
in 1997. Salary and employee benefits decreased $.2 million as the 1997 amount
of salaries and employee benefits included severance payouts made to two former
executives of the Company. Occupancy expense and furniture and equipment expense
increased by $.3 and $.4 million, respectively. Other real estate expense
decreased by $.2 million. This decrease was offset by an increase in other
expense of $.6 million due to increased loan expense, other losses, outside
temporary service due to increased mortgage originations.
INCOME TAXES. Income tax expense decreased $3.7 million (42.7%) for the nine
months ended September 30, 1998 to $5.0 million from $8.7 million. The
decrease was principally due to lower taxable income.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
NET INCOME. The Company's net income for the three months ended September 30,
1998 and 1997, was approximately $2.4 million and $5.1 million, respectively.
This represents a decrease of $2.7 million (54.1%) for the 1998 period when
compared to the same period in 1997. This was partially due to the increase in
provision for loan losses resulting from the increase in nonperforming loans.
During the third quarter of 1998, the Company recognized a loss of $3.2 million
representing the other-than-temporary impairment of the entire carrying value of
the Class B Notes, which were classified as available for sale investment
securities. Net interest income decreased $.5 million. Other operating expense
increased $1.0 million. These decreases to income and increases to expense were
partially offset by a decrease to income tax expense of $2.3 million.
INTEREST INCOME. Total interest income decreased $1.1 million for the three
months ended September 30, 1998 compared to the same period in 1997 and resulted
primarily from decreased volume in the loan portfolio. This decrease was
partially offset by an increase to federal funds sold income of $.2 million. The
increase resulted from the Company increasing its holdings in federal funds sold
to maximize liquidity and income in a declining interest rate environment.
Additionally, investment securities income remained level for the three months
ended September 30, 1998 when compared to the same period in 1997.
INTEREST EXPENSE. Total interest expense decreased $.6 million for the three
months ended September 30, 1998 compared to the same period during 1997. This
was due to lower balances and costs associated with certificates of deposit.
Additionally, higher balances and costs associated with money market checking
accounts partially offset this decrease to expense.
PROVISION FOR LOAN LOSSES. The Company's provision for loan losses increased $.9
million (330.1%) for the three months ended September 30, 1998 compared to the
same period in 1997. This was primarily due to the increase in nonperforming
loans during 1998. See the section entitled "Allowance for Loan Losses and Asset
Quality" above.
OTHER OPERATING INCOME. Total other operating income decreased $2.6 million
(130.1%) for the three months ended September 30, 1998, compared to the same
period in 1997. During the third quarter of 1998, the Company recognized a loss
of $3.2 million representing the other-than-temporary impairment of the entire
carrying value of the Class B Notes, which were classified as available for sale
investment securities. Additionally, there were increases in gains on sale of
loans originated for sale of $.1 million and an increase to other income of $.2
million.
OTHER OPERATING EXPENSE. Total other operating expense increased $1.0 million
(14.8%) for the three months ended September 30, 1998, compared to the same
period in 1997. Salary and employee benefits increased $.2 million. Occupancy
expense increased by $.2 million. Furniture and equipment expense increased by
$.1 million.
15
<PAGE>
Data processing expense increased by $.1 million. Additionally, other expense
increased $.3 million. This increase was primarily due to increased loan
expense and other losses expense.
INCOME TAXES. Income tax expense decreased $2.3 million (87.3%) for the three
months ended September 30, 1998, to $.3 million from $2.6 million. This
decrease was principally due to lower taxable income.
OTHER CONSIDERATIONS
General
Earnings of bank holding companies and their subsidiaries are affected by
general economic conditions and also by the fiscal and monetary policies of
federal regulatory agencies, including the Board of Governors of the Federal
Reserve System. Such policies have affected the operating results of all
commercial banks in the past and are expected to do so in the future. The
Company cannot accurately predict the nature or the extent of any effects which
fiscal or monetary policies may have on its subsidiary's business and earnings.
Recent Regulatory Developments/Year 2000
The federal banking regulators recently issued guidelines establishing minimum
safety and soundness standards for achieving Year 2000 compliance. The
guidelines, which took effect October 15, 1998 and apply to all FDIC-insured
depository institutions, establish standards for developing and managing Year
2000 project plans, testing remediation efforts and planning for contingencies.
The guidelines are based upon guidance previously issued by the agencies under
the auspices of the Federal Financial Institutions Examination Council (the
"FFIEC"), but are not intended to replace or supplant the FFIEC guidance which
will continue to apply to all federally insured depository institutions.
The guidelines were issued under section 39 of the Federal Deposit Insurance
Act, as amended (the "FDIA"), which requires the federal banking regulators to
establish standards for the safe and sound operation of federally insured
depository institutions. Under section 39 of the FDIA, if an institution fails
to meet any of the standards established in the guidelines, the institution's
primary federal regulator may require the institution to submit a plan for
achieving compliance. If an institution fails to submit an acceptable
compliance plan, or fails in any material respect to implement a compliance plan
that has been accepted by its primary federal regulator, the regulator is
required to issue an order directing the institution to cure the deficiency.
Such an order is enforceable in court in the same manner as a cease and desist
order. Until the deficiency cited in the regulator's order is cured, the
regulator may restrict the institution's rate of growth, require the institution
to increase its capital, restrict the rates the institution pays on deposits or
require the institution to take any action the regulator deems appropriate under
the circumstances. In addition to the enforcement procedures established in
section 39 of the FDIA, noncompliance with the standards established by the
guidelines may also be grounds for other enforcement action by the federal
banking regulators, including cease and desist orders and civil money penalty
assessments.
During 1996, the Company initiated the process of preparing its computer systems
and applications for the Year 2000. This process involves updating or replacing
certain of the Company's computer hardware components and software applications
and communicating with vendors and external service providers to confirm that
their applications are Year 2000 compliant. The Company has tested and replaced,
as necessary, its critical computer hardware components and software
applications and will continue its testing procedures in order to ensure that
its computer hardware components and software applications are Year 2000
compliant and that the operations of the Company will not be adversely effected.
The Company believes that the cost that will be incurred in connection with
testing and replacing hardware and software applications will not have a
material effect on its results of operations. Purchased computer hardware
components and software applications are capitalized in accordance with the
Company's policy. All internal and external costs are expensed when incurred.
The Company has a "Year 2000 Contingency Plans and Disaster Recovery Policy" in
place.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company hereby incorporates by reference the information called for by Item
3 of this Form 10-Q from the Rate Sensitivity Gaps section included in Item 2
above.
16
<PAGE>
PART II
ITEM 1. LEGAL PROCEEDINGS
There are no material pending legal proceedings to which the Company or its
subsidiary are a party other than ordinary routine litigation incidental to
their respective businesses.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
A. Exhibits
27 Financial Data Schedule
B. Reports on Form 8-K - The Company did not file a report on Form 8-K during
the three months ended September 30, 1998.
17
<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 thereunto duly authorized.
WEST SUBURBAN BANCORP, INC.
(Registrant)
Date: November 13, 1998
/s/ Kevin J. Acker
---------------------------------
KEVIN J. ACKER
CHAIRMAN OF THE BOARD
/s/ Duane G. Debs
---------------------------------
DUANE G. DEBS
PRESIDENT AND CHIEF FINANCIAL OFFICER
18
<PAGE>
INDEX OF EXHIBITS
<TABLE>
<CAPTION>
Sequential
Page No.
--------
<S> <C> <C>
27. Financial Data Schedule 20
</TABLE>
19
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 37,132
<SECURITIES> 383,307
<RECEIVABLES> 744,198
<ALLOWANCES> 9,621
<INVENTORY> 0
<CURRENT-ASSETS> 644,893
<PP&E> 32,600
<DEPRECIATION> 2,514
<TOTAL-ASSETS> 1,262,793
<CURRENT-LIABILITIES> 938,726
<BONDS> 0
0
0
<COMMON> 3,457
<OTHER-SE> 134,021
<TOTAL-LIABILITY-AND-EQUITY> 1,262,793
<SALES> 0
<TOTAL-REVENUES> 73,917
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 22,925
<LOSS-PROVISION> 1,675
<INTEREST-EXPENSE> 32,340
<INCOME-PRETAX> 16,977
<INCOME-TAX> 4,986
<INCOME-CONTINUING> 11,991
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11,991
<EPS-PRIMARY> 27.72
<EPS-DILUTED> 27.72
</TABLE>
