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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
(X) Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 1993
or
( ) Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the transition period from to
Commission File Number 0-15580
St. Paul Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Delaware 36-3504665
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
6700 W. North Avenue
Chicago, Illinois 60635
(Address of principal executive offices) (Zip Code)
(312) 622-5000
(Registrant's telephone number, including area code)
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 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 classes of
common stock, as of the latest practicable date.
Common Stock, $.01 par value -- 13,086,750 shares, as of July 30, 1993
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ST. PAUL BANCORP, INC.
AND SUBSIDIARIES
This amendment to St. Paul Bancorp Inc.'s Quarterly report on Form 10-Q for the
quarter ended June 30, 1993 is being made to amend the Consolidated Statements
of Cash Flow with respect to the net increase (decrease) in checking and
savings deposits, proceeds from the sales of certificates of deposit and
payments for maturing certificates of deposit.
FORM 10-Q
INDEX
PART I. FINANCIAL INFORMATION
<TABLE>
<S> <C> <C>
Item 1 Financial Statements (Unaudited)
Consolidated Statements of Financial Condition
as of June 30, 1993 and December 31, 1992 . . . . . . . . . . . . . . 3
Consolidated Statements of Income for the Three and Six
Months ended June 30, 1993 and 1992 . . . . . . . . . . . . . . . . . 4
Consolidated Statements of Stockholders' Equity for the
Six Months ended June 30, 1993 and 1992 . . . . . . . . . . . . . . . 5
Consolidated Statements of Cash Flows for the
Six Months Ended June 30, 1993 and 1992 . . . . . . . . . . . . . . . 6
Notes to Consolidated Financial Statements . . . . . . . . . . . . . 7
</TABLE>
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ST PAUL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
<TABLE>
<CAPTION>
June 30 December 31
Dollars in thousands 1993 1992
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Cash and cash equivalents:
Cash and amounts due from depository institutions $ 73,742 $ 72,940
Federal funds sold 60,000 49,000
Short-term marketable debt securities held for investment, at cost
(Market: June 30, 1993-$239,358; December 31, 1992-$189,618) 239,356 189,627
------------ -----------
Total cash and cash equivalents 373,098 311,567
Marketable debt securities held for investment, at cost
(Market: June 30, 1993-$133,449; December 31, 1992-$107,367) 132,567 107,732
Mortgage-backed securities held for investment, at cost
(Market: June 30, 1993-$682,999; December 31, 1992-$654,411) 668,888 643,941
Loans receivable 2,460,359 2,318,879
Less: accumulated provision for loan losses 50,536 48,681
----------- -----------
Net loans receivable 2,409,823 2,270,198
Inventory of assets held for sale, at lower of cost or market
(Market: June 30, 1993-$26,593; December 31, 1992-$19,090) 26,451 19,019
Accrued interest receivable 22,391 22,059
Foreclosed real estate
(Net of accumulated provision for losses: June 30, 1993-$1,864;
December 31, 1992-$2,403) 33,245 17,945
Real estate held for investment 13,194 10,497
Investment in Federal Home Loan Bank Stock 31,290 30,720
Office properties and equipment 39,956 33,526
Prepaid expenses and other assets 35,499 33,056
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TOTAL ASSETS $ 3,786,402 $ 3,500,260
----------- -----------
----------- -----------
LIABILITIES:
Deposits $ 3,277,182 $ 2,985,124
FHL Bank advances 61,794 99,501
Other borrowings 77,054 86,907
Advance payments by borrowers for taxes and insurance 22,605 19,467
Other liabilities 23,868 21,920
----------- ----------
TOTAL LIABILITIES 3,462,503 3,212,919
COMMITMENTS
STOCKHOLDERS' EQUITY:
Preferred stock (par value $.01 per share: authorized-10,000,000
shares; none issued) -- --
Common stock (par value $.01 per share: authorized-40,000,000 shares;
outstanding at June 30, 1993-13,083,350 shares,
outstanding at December 31, 1992-12,172,105 shares) 131 121
Paid-in capital 135,884 115,315
Retained income, substantially restricted 192,214 173,976
Less borrowings by employee stock ownership plan (4,330) (2,071)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY 323,899 287,341
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,786,402 $ 3,500,260
----------- -----------
----------- -----------
</TABLE>
See notes to consolidated financial statements.
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ST PAUL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30 June 30
Dollars in thousands except per share amounts 1993 1992 1993 1992
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME:
Loans receivable $ 52,032 $ 54,214 $ 102,299 $ 111,034
Mortgage-backed securities 11,194 12,845 22,155 26,881
Marketable debt securities 1,834 344 3,324 691
Trading account 19 21 49 44
Federal funds 301 342 573 537
Other short-term investments 1,965 3,372 3,964 6,558
------------ ------------ ------------ ------------
Total interest income 67,345 71,138 132,364 145,745
INTEREST EXPENSE:
Deposits 31,379 37,798 62,269 78,870
Short-term borrowings 1,528 2,442 3,617 4,906
Long-term borrowings 1,583 2,599 2,920 6,524
------------ ------------ ------------ ------------
Total interest expense 34,490 42,839 68,806 90,300
------------ ------------ ------------ ------------
Net interest income 32,855 28,299 63,558 55,445
Provision for loan losses 2,750 2,175 6,750 3,875
------------ ------------ ------------ ------------
Net interest income after provision
for loan losses 30,105 26,124 56,808 51,570
OTHER INCOME:
Loan servicing fees 424 986 907 1,736
Other fee income 3,593 2,419 6,627 4,568
Net gain on assets sold 745 482 910 1,637
Net trading account gain (loss) 40 19 45 (29)
Discount brokerage commissions 1,620 1,209 2,958 2,391
Income from real estate operations 643 614 1,206 1,061
Insurance and annuity commissions 852 1,102 1,731 1,948
Other 102 78 178 231
------------ ------------ ------------ ------------
Total other income 8,019 6,909 14,562 13,543
GENERAL AND ADMINISTRATIVE EXPENSE:
Salaries and employee benefits 10,841 9,044 20,961 17,852
Occupancy, equipment and other office expense 4,658 3,648 8,970 7,525
Advertising 1,355 1,092 2,592 2,144
Federal deposit insurance 2,286 1,822 4,489 3,640
Other 1,650 1,878 2,858 3,264
------------ ------------ ------------ ------------
General and administrative expense 20,790 17,484 39,870 34,425
Loss on foreclosed real estate 344 682 671 1,541
------------ ------------ ------------ ------------
Income before income taxes 16,990 14,867 30,829 29,147
Income taxes 5,468 5,119 10,064 10,153
------------ ------------ ------------ ------------
NET INCOME $ 11,522 $ 9,748 $ 20,765 $ 18,994
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
EARNINGS PER SHARE:
Primary $ 0.85 $ 0.78 $ 1.55 $ 1.53
Fully Diluted 0.84 0.78 1.55 1.52
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
DIVIDENDS PER SHARE $ 0.10 $ 0.10 $ 0.20 $ 0.20
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
See notes to consolidated financial statements.
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ST. PAUL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)
<TABLE>
<CAPTION>
BORROWINGS
BY EMPLOYEE TOTAL
Dollars in thousands, COMMON STOCK PAID-IN RETAINED STOCK STOCKHOLDERS'
except share data SHARES AMOUNT CAPITAL INCOME OWNERSHIP PLAN EQUITY
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance December 31, 1991 12,038,555 $ 120 $ 113,428 $ 141,126 $ (1,786) $ 252,888
Issuance of common stock under
stock option plan 57,150 1 580 -- -- 581
Net income -- -- -- 18,994 -- 18,994
Cash dividends paid to
stockholders ($.20 per share) -- -- -- (2,409) -- (2,409)
Repayments of principal -- -- -- -- 358 358
Additional borrowings -- -- -- -- (1,000) (1,000)
- ------------------------------------------------------------------------------------------------------------
BALANCE JUNE 30, 1992 12,095,705 $ 121 $ 114,008 $ 157,711 $ (2,428) $ 269,412
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Balance December 31, 1992 12,172,105 $ 121 $ 115,315 $ 173,976 $ (2,071) $ 287,341
Issuance of common stock under
stock option plan 50,000 1 819 -- -- 820
Issuance of common stock to
Elm shareholders 861,542 9 19,757 -- -- 19,766
Retirement of common stock issued
to Elm shareholders (297) -- (7) -- -- (7)
Net income -- -- -- 20,765 -- 20,765
Cash dividends paid to
stockholders ($.20 per share) -- -- -- (2,527) -- (2,527)
Repayments of principal -- -- -- -- 357 357
Additional borrowings -- -- -- -- (2,616) (2,616)
- ------------------------------------------------------------------------------------------------------------
BALANCE JUNE 30, 1993 13,083,350 $ 131 $ 135,884 $ 192,214 $ (4,330) $ 323,899
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to consolidated financial statements.
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ST. PAUL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30
-----------------------------
Dollars in thousands 1993 1992
- -------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 20,765 $ 18,994
Adjustments to reconcile net income to net cash
provided (used) by operating activities:
Provision for loan losses 6,750 3,875
Provision for losses on foreclosed real estate 412 1,533
Provision for depreciation 2,293 2,038
Assets originated and acquired for sale (44,271) (113,871)
Sale of assets held for sale 34,784 103,533
Decrease in accrued interest receivable 1,085 4,623
Increase in prepaid expenses and other assets (1,813) (1,304)
Decrease in other liabilities (2,733) (25,061)
Net amortization of yield adjustments 35 (380)
Other items, net 6,157 (4,828)
- ------------------------------------------------------------------------------------------
Net cash provided (used) by operating activities 23,464 (10,848)
- ------------------------------------------------------------------------------------------
INVESTING ACTIVITIES:
Principal repayments on loans receivable 254,857 275,506
Loans originated or purchased for investment (207,621) (170,220)
Loans receivable sold 14,220 29,571
Principal repayments on mortgage-backed securities 111,366 156,563
Mortgage-backed securities purchased for investment (79,618) (94,451)
Maturities of marketable debt securities 122,024 250
Purchase of marketable debt securities (90,812) (9,819)
Additions to real estate held for investment (2,077) (2,707)
Real estate sold 4,584 7,053
(Increase) decrease in investment in Federal Home
Loan Bank stock 1,897 (591)
Purchase of office properties and equipment (2,848) (1,774)
Proceeds from sales of office properties and equipment 333 42
Acquisition of Elm Financial, net of cash and
cash equivalents acquired of $11,002. (15,655) --
- ------------------------------------------------------------------------------------------
Net cash provided by investing activities 110,650 189,423
- ------------------------------------------------------------------------------------------
FINANCING ACTIVITIES:
Net increase (decrease) in checking and savings deposits (4,093) 50,622
Proceeds from sales of certificates of deposit 145,641 123,633
Payments for maturing certificates of deposit (161,711) (200,349)
Net proceeds from issuance of subordinated notes 33,422 --
Repayment of FHL Bank advances (37,704) (61)
Decrease in other borrowings, net (45,382) (70,430)
Repayment of subordinated capital notes - (12,360)
Interest credited on subordinated capital notes - 146
Redemption bonus on subordinated capital notes - 144
Dividends paid to stockholders (2,527) (2,409)
Net proceeds from exercise of stock options 513 581
Decrease in advance payments by borrowers
for taxes and insurance (742) (156)
- ------------------------------------------------------------------------------------------
Net cash used by financing activities (72,583) (110,639)
- ------------------------------------------------------------------------------------------
INCREASE IN CASH AND CASH EQUIVALENTS 61,531 67,936
Cash and cash equivalents at beginning of period 311,567 314,623
- ------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 373,098 $ 382,559
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURES:
Interest credited on deposits $ 56,580 $ 71,990
Interest paid on deposits 5,871 8,085
---------------------------------------------------------------------------------------
Total interest paid on deposits 62,451 80,075
Interest paid on borrowings 6,993 12,324
Income taxes paid, net 11,293 14,267
Common stock issued in acquisition of Elm Financial 19,766 --
Real estate acquired through foreclosure 19,803 25,640
Loans originated in connection with real estate
acquired through foreclosure 2,978 21,421
</TABLE>
See notes to consolidated financial statements.
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ST. PAUL BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The accompanying consolidated financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10
of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of Management all necessary
adjustments, consisting only of normal recurring accruals, necessary for a
fair presentation have been included. The results of operations for the
three- and six-month period ended June 30, 1993 are not necessarily
indicative of the results that may be expected for the entire fiscal year.
2. The accompanying consolidated financial statements include the accounts of
St. Paul Bancorp, Inc. (the "Company" or "St. Paul Bancorp") and its
wholly-owned subsidiaries, St. Paul Federal Bank For Savings (the "Bank" or
"St. Paul Federal"), Annuity Network, Inc. and St. Paul Financial
Development, Inc. The financial statements of St. Paul Federal include the
accounts of its subsidiaries. Certain prior year amounts have been
reclassified to conform to the 1993 presentation.
3. At June 30, 1993 the Bank had outstanding commitments to originate 1-4
family, real estate loans of $61.0 million. Of these commitments, $31.9
million were for adjustable-rate loans and $29.1 million were for fixed-rate
loans. Most of these commitments expire after sixty days. Unused home
equity lines of credit totaled $29.5 million as of June 30, 1993. The Bank
anticipates funding the origination commitments with excess liquidity.
At June 30, 1993 the Bank held commitments to sell $40.0 million of
fixed-rate, 1-4 family real estate loans. Market value losses, if any,
related to these commitments have been reflected in the consolidated
financial statements.
4. On February 23, 1993, the Company acquired ("the Acquisition") Elm Financial
Services, Inc. ("Elm Financial"). The unaudited Pro Forma Combined
Statements of Income presented below report the combined results of
operations of the Company and Elm Financial for the six-month periods ended
June 30, 1993 and 1992 as if the Acquisition had been effective on January
1, 1993 and January 1, 1992, respectively, after giving effect to the
purchase accounting adjustments.
The unaudited Pro Forma Condensed Combined Statements of Income reflect the
application of the purchase method of accounting. Under this method of
accounting, the aggregate cost to the Company of the Acquisition was
allocated to the assets acquired and liabilities assumed, based on their
estimated fair values as of February 23, 1993. No goodwill was recorded by
the Bank in connection with the Acquisition.
The unaudited Pro Forma Condensed Combined Statements of Income are intended
for informational purposes and are not necessarily indicative of the future
results of operations of the combined company, or results of operations of
the combined company that would have actually occurred had the Acquisition
been consummated as of the periods presented.
PRO FORMA CONDENSED COMBINED STATEMENTS OF INCOME
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<TABLE>
<CAPTION>
Proforma Results
For the Six Months Ended
------------------------
June 30, June 30,
1993 1992
---------- ----------
<S> <C> <C>
Interest income $136,322 $161,132
Interest expense 70,652 99,267
---------- ----------
Net interest income 65,670 61,865
Provision for loan
losses 7,176 3,935
---------- ----------
Net interest income
after provision for
loan losses 58,494 57,930
Other income 14,311 13,720
Other expense 41,065 38,287
Loss on foreclosed
real estate 671 1,541
---------- ----------
Pre-tax income 31,069 31,822
Income taxes 10,152 11,025
---------- ----------
Net income $ 20,917 $ 20,797
---------- ----------
---------- ----------
Earnings per share:
Primary $1.53 $1.56
Fully Diluted 1.53 1.56
</TABLE>
5. The following schedule details the net effect during the first half of 1993
of the Acquisition on cash and cash equivalents:
<TABLE>
<S> <C>
-------------------------------------------------
-------------------------------------------------
Purchase price $48,194
Less: issuance of St. Paul stock 19,766
Less: Elm stock acquired in 1992 1,774
-------------------------------------------------
Cash paid for Acquisition 26,657
Cash and cash equivalents acquired 11,002
-------------------------------------------------
Acquisition of Elm Financial, net of
cash and cash equivalents acquired $15,655
-------------------------------------------------
-------------------------------------------------
</TABLE>
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