SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) of the SECURITIES EXCHANGE
ACT OF 1934.
For the fiscal year ended December 31, 1997.
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period _______________ to _______________
Commission File No.: 0-17286
PRIME BANCORP, INC.
--------------------------------------------------
(Exact Name of Issuer as Specified in its Charter)
Delaware 23-2860688
- ------------------------ --------------------------------
(State of Incorporation) (IRS Employer Identification No.)
7100 Valley Green Road, Fort Washington, PA 19034-2209
-------------------------------------------------------
(Address of Principal Executive Offices)
Prime Bancorp, Inc. Retirement Savings Plan
-------------------------------------------
(Full Title of the Plan)
<PAGE>
REQUIRED INFORMATION
Prime Bancorp, Inc. Retirement Savings Plan is subject to the Employee
Retirement Income Security Act of 1974 ("ERISA"). Therefore in lieu of items
1-3 on Form 11-K, the statements of net assets available for plan benefits as
of December 31, 1997 and 1996 and the related statements of changes in net
assets available for plan benefits for each of the years in the three year
period ended December 31, 1997 and the schedule of assets held for investment
purposes as of December 31, 1997, which have been prepared in accordance with
the financial reporting requirements of ERISA, are attached hereto as Appendix 1
and incorporated herein by this reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have
duly caused this Annual Report to be signed on its behalf by the undersigned
hereunto duly authorized.
Dated: June 29, 1998 Prime Bancorp, Inc. Retirement
Savings Plan
By: /s/ Harry Dingler, Jr.
--------------------------
Harry Dingler, Jr.
Plan Administrator
<PAGE>
APPENDIX 1
PRIME BANCORP, INC.
RETIREMENT SAVINGS PLAN
Financial Statements
December 31, 1997, 1996 and 1995
(With Independent Auditors' Report Thereon)
<PAGE>
PRIME BANCORP, INC.
RETIREMENT SAVINGS PLAN
Table of Contents
December 31, 1997, 1996 and 1995
- --------------------------------------------------------------------------------
Page
Independent Auditors' Report............................................ 1
Financial Statements
Statements of Net Assets Available for Plan Benefits
as of December 31, 1997 and 1996...................................... 2 - 3
Statements of Changes in Net Assets Available for Plan Benefits
as of December 31, 1997, 1996 and 1995................................ 4 - 5
Notes to Financial Statements........................................... 7 - 13
Schedule
1 Item 27(a) - Schedule of Assets Held for Investment Purposes....... 14
<PAGE>
Independent Auditors' Report
The Trustees and Administrator
Prime Bancorp, Inc. Retirement Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Prime Bancorp, Inc. Retirement Savings Plan as of December 31,
1997 and 1996 and the related statements of changes in net assets available for
plan benefits for each of the years in the three-year period ended December 31,
1997. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan
as of December 31, 1997 and 1996, and the changes in net assets available for
plan benefits for each of the years in the three-year period ended December 31,
1997, in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as whole. The supplementary information included in
Schedule 1 is presented for purposes of additional analysis and is not a
required part of the basic financial statements, but is supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. This supplementary information is the responsibility of the Plan's
management. The fund information in the statements of net assets available for
plan benefits and the statements of changes in net assets available for plan
benefits is presented for purposes of additional analysis rather than to present
the net assets available for plan benefits and changes in net assets available
for plan benefits of each fund. Such supplementary information and fund
information have been subjected to the auditing procedures applied in the audits
basic financial statements and, in our opinion, are fairly presented in all
material respects in relation to the basic financial statements taken as a
whole.
/s/ KPMG Peat Marwick LLP
Philadelphia, PA 19103
June 1, 1998
<PAGE>
PRIME BANCORP, INC. RETIREMENT SAVINGS PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1997 and 1996
<TABLE>
<CAPTION>
Year ended December 31, 1997
- ------------------------------------------------------------------------------------------------
Growth
Money and Prime
Market Growth Income Certificates Common Bond Participant
Funds Funds Funds of Deposit Stock Funds Loans Total
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments at fair value
Benham GNMA Income
Fund $ - - - - - 68,826 - 68,826
Dreyfus Short Interest
Government Fund - - - - - 81,817 - 81,817
Kaufmann Fund - 164,432 - - - - - 164,432
Money Market
Fund 3,530 - - - - - - 3,530
Neuberger & Berman:
Focus Fund - 193,711 - - - - - 193,711
Guardian Fund - - 82,101 - - - - 82,101
Participant Loans - - - - - - 69,034 69,034
Prime Bancorp, Inc.
common stock - - - - 3,463,777 - - 3,463,777
Prime Bank Certificates
of Deposit - - - 837,701 - - - 837,701
Vanguard Wellington Fund - 339,714 - - - - 339,714
- ------------------------------------------------------------------------------------------------
Total investments 3,530 358,143 421,815 837,701 3,463,777 150,643 69,034 5,304,643
- ------------------------------------------------------------------------------------------------
Receivables:
Employer's
contributions - 3,396 4,220 1,833 8,458 1,625 - 19,532
Participants'
contributions - 6,640 9,100 3,279 17,924 3,640 - 40,583
- ------------------------------------------------------------------------------------------------
Total receivables - 10,036 13,320 5,112 26,382 5,265 - 60,115
- ------------------------------------------------------------------------------------------------
Net assets available for plan benefits
$3,530 368,179 435,135 842,813 3,490,159 155,908 69,034 5,364,758
- ------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
2 (Continued)
<PAGE>
PRIME BANCORP, INC. RETIREMENT SAVINGS PLAN
Statements of Changes in Net Assets Available for Plan Benefits, continued
<TABLE>
<CAPTION>
Year ended December 31, 1996
- ------------------------------------------------------------------------------------------------
Growth
Money and Prime
Market Growth Income Certificates Common Bond Participant
Funds Funds Funds of Deposit Stock Funds Loans Total
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments at fair value
Benham GNMA Income
Fund $ - - - - - 41,259 - 41,259
Dreyfus Short Interest
Government Fund - - - - - 57,642 - 57,642
Kaufmann Fund - 94,291 - - - - - 94,291
Money Market
Fund 1,567 - - - - - - 1,567
Neuberger & Berman:
Focus Fund - 104,705 - - - - - 104,705
Guardian Fund - - 41,213 - - - - 41,213
Participant Loans - - - - - - 23,971 23,971
Prime Bancorp, Inc.
common stock - - - - 1,906,755 - - 1,906,755
Prime Bank Certificates
of Deposit - - - 778,656 - - - 778,656
Vanguard Wellington Fund - 195,707 - - - - 195,707
- ------------------------------------------------------------------------------------------------
Total investments 1,567 198,996 236,920 778,656 1,906,755 98,901 23,971 3,245,766
- ------------------------------------------------------------------------------------------------
Net assets available for plan benefits
$1,567 198,996 236,920 778,656 1,906,755 98,901 23,971 3,245,766
- ------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
3 (Continued)
<PAGE>
PRIME BANCORP, INC. RETIREMENT SAVINGS PLAN
Statements of Changes in Net Assets Available for Plan Benefits
<TABLE>
<CAPTION>
Years ended December 31, 1997, 1996 and 1995
Year ended December 31, 1997
- ------------------------------------------------------------------------------------------------
Growth
Money and Prime
Market Growth Income Certificates Common Bond Participant
Funds Funds Funds of Deposit Stock Funds Loans Total
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <S> <C>
Additions to net
assets attributable to:
Net realized
and unrealized
appreciation $ - 15,408 32,415 - 1,684,118 778 - 1,732,719
Dividend Income - 29,603 38,116 - 67,000 - - 134,719
Interest income 51 - - 48,298 - 7,847 4,375 60,571
- ------------------------------------------------------------------------------------------------
Net investment income 51 45,011 70,531 48,298 1,751,118 8,625 4,375 1,928,009
- ------------------------------------------------------------------------------------------------
Contributions:
Employer 488 50,281 62,268 44,559 127,391 24,302 - 309,289
Participants 1,502 52,107 70,875 33,652 151,702 27,538 - 337,375
- ------------------------------------------------------------------------------------------------
Total contributions 1,990 102,388 133,143 78,211 279,092 51,840 - 646,664
- ------------------------------------------------------------------------------------------------
Rollovers - 4,955 4,955 - 33,537 - - 43,447
- ------------------------------------------------------------------------------------------------
Total additions 2,041 152,354 208,629 126,509 2,063,747 60,465 4,375 2,618,120
- ------------------------------------------------------------------------------------------------
Reductions in
net assets
attributable to:
Withdrawals (406) (13,778) (12,582)(37,396) (428,016) (6,950) - (499,128)
- ------------------------------------------------------------------------------------------------
Total interfund transfers,
including new loans and
loan repayments 328 30,607 2,168 (24,956) (52,327) 3,492 40,688 -
- ------------------------------------------------------------------------------------------------
Net increase 1,963 169,183 198,215 64,157 1,583,404 57,007 45,063 2,118,992
Net assets available
for plan benefits
Beginning of year 1,567 198,996 236,920 778,656 1,906,755 98,901 23,971 3,245,766
- ------------------------------------------------------------------------------------------------
End of year $3,530 368,179 435,135 842,813 3,490,159 155,908 69,034 5,364,758
- ------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
4 (Continued)
<PAGE>
PRIME BANCORP, INC. RETIREMENT SAVINGS PLAN
Statements of Changes in Net Assets Available for Plan Benefits
<TABLE>
<CAPTION>
Year ended December 31, 1996
- ------------------------------------------------------------------------------------------------
Growth
Money and Prime
Market Growth Income Certificates Common Bond Participant
Funds Funds Funds of Deposit Stock Funds Loans Total
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net
assets attributable to:
Net realized
and unrealized
appreciation $ - 3,806 8,571 - 181,867 515 - 194,759
Dividend Income - 1,799 3,468 - 65,545 - - 70,812
Interest income - - - 44,692 - 1,358 1,011 47,061
- ------------------------------------------------------------------------------------------------
Net investment income - 5,605 12,039 44,692 247,412 1,873 1,011 312,632
- ------------------------------------------------------------------------------------------------
Contributions:
Employer 33,511 47,803 46,976 47,149 77,069 23,646 - 276,154
Participants 64,699 52,069 51,127 39,348 49,276 25,001 - 281,520
- ------------------------------------------------------------------------------------------------
Total contributions 98,210 99,872 98,103 86,497 126,345 48,647 - 557,674
- ------------------------------------------------------------------------------------------------
Rollovers 11,505 - 19,536 - 14,342 - - 45,383
- ------------------------------------------------------------------------------------------------
Total additions 109,715 105,477 129,678 131,189 388,099 50,520 1,011 915,689
- ------------------------------------------------------------------------------------------------
Reductions in
net assets
attributable to:
Withdrawals (353) (61,480) (58,153)(118,992)(624,415) (16,078) - (879,471)
- ------------------------------------------------------------------------------------------------
Total interfund transfers,
including new loans and
loan repayments (107,795) 5,545 20,150 (41,920) 94,933 11,104 17,983 -
- ------------------------------------------------------------------------------------------------
Net increase
(decrease) 1,567 49,542 91,675 (29,723) (141,383) 45,546 18,994 36,218
Net assets available
for plan benefits
Beginning of year - 149,454 145,245 808,379 2,048,138 53,355 4,977 3,209,548
- ------------------------------------------------------------------------------------------------
End of year $ 1,567 198,996 236,920 778,656 1,906,755 98,901 23,971 3,245,766
- ------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
5 (Continued)
<PAGE>
PRIME BANCORP, INC. RETIREMENT SAVINGS PLAN
Statements of Changes in Net Assets Available for Plan Benefits, continued
<TABLE>
<CAPTION>
Year ended December 31, 1995
- ------------------------------------------------------------------------------------------------
Growth
and Prime
Growth Income Certificates Common Bond Participant
Funds Funds of Deposit Stock Funds Loans Total
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net
assets attributable to:
Net realized
and unrealized
appreciation $ 14,141 16,285 - 434,589 1,323 - 466,338
Dividend Income 7,145 4,871 - 58,170 - - 70,186
Interest income - - 50,699 - 1,732 - 52,431
- ------------------------------------------------------------------------------------------------
Net investment
income 21,286 21,156 50,699 492,759 3,055 - 588,955
- ------------------------------------------------------------------------------------------------
Contributions:
Employer 28,961 30,818 70,493 160,523 14,586 - 305,381
Participants 23,378 24,084 56,205 118,251 11,811 - 233,729
- ------------------------------------------------------------------------------------------------
Total contributions 52,339 54,902 126,698 278,774 26,397 - 539,110
- ------------------------------------------------------------------------------------------------
Rollovers 819 3,270 3,277 4,913 - - 12,279
- ------------------------------------------------------------------------------------------------
Total additions 74,444 79,328 180,674 776,446 29,452 - 1,140,344
- ------------------------------------------------------------------------------------------------
Reductions in
net assets
attributable to:
Withdrawals (3,333) (2,723)(116,437) (106,590) (1,469) - (230,552)
- ------------------------------------------------------------------------------------------------
Total interfund transfers,
including new
loans 46,479 35,044 (17,724) (81,276) 12,500 4,977 -
- ------------------------------------------------------------------------------------------------
Net increase
(decrease) 117,590 111,649 46,513 588,580 40,483 4,977 909,792
Net assets available
for plan benefits
Beginning of year 31,864 33,596 761,866 1,459,558 12,872 - 2,299,756
- ------------------------------------------------------------------------------------------------
End of year $149,454 145,245 808,379 2,048,138 53,355 4,977 3,209,548
- ------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
PRIME BANCORP, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1997, 1996 and 1995
- --------------------------------------------------------------------------------
(1) Description of Plan
The following description provides only general information of the Prime
Bancorp, Inc. (the Company) Retirement Savings Plan (the Plan) which became
effective July 1, 1984. Participants should refer to the Plan agreement for a
more complete description of the Plan's provisions.
The Company merged with First Sterling Bancorp, Inc. on December 31, 1996. As a
result, all First Sterling employees as of December 31, 1996 became employees of
the Company and adopted the Plan. Assets of the former First Sterling Plan were
transferred to the Plan, at their current value, with no recorded gain or loss,
on January 23, 1998.
The Plan changed the trustee and recordkeeper from Charles Schwab and Fidelity
Federal, respectively, to Delaware Charter Guaranty and Trust effective January
1, 1998.
General
The Plan is a salary reduction plan, also called a "401(k) plan", covering all
full and part-time employees of the Company who have completed one year of
service and attained age twenty-one. The Plan is subject to the provisions of
the Employee Retirement Income Security Act of 1974 (ERISA).
Contributions
Each year, participants may contribute up to 15% of pretax annual compensation,
as defined in the Plan, up to a maximum of $9,500. The Company may contribute a
matching contribution based on the amount of the participant's elected salary
reduction. Currently the Company matches 66 2/3% on the first 6% of the
participants elected compensation. Additional amounts may be contributed at the
option of the Company's board of directors. Discretionary contributions
amounted to $199,000 in 1997, $176,000 in 1996 and $241,000 in 1995.
Participant Accounts
Each participant's account is credited with the participant's contribution and
allocation of (i) the Company's contribution and (ii) Plan earnings. Allocations
are based on participant earnings or account balances, as defined. The benefit
to which a participant is entitled is the benefit that can be provided from the
participant's vested account.
7 (Continued)
<PAGE>
PRIME BANCORP, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements, Continued
- ------------------------------------------------------------------------------
(1) Continued
Vesting
Participant's are immediately vested in their contributions plus actual earnings
thereon. Vesting in the Company's matching and discretionary contribution
portion of their accounts plus actual earnings thereon is based on years of
continuous service. A participant is 100% vested after five years of credited
service.
Investment Options
Upon enrollment in the Plan, a participant may direct employee contributions in
any of the following investment options:
Growth Funds - The growth funds include the Kaufmann Fund and the Neuberger
& Berman Focus Fund which aim for capital appreciation by investing in a broad
range of companies that are perceived to be undervalued and undergoing positive
changes or turnarounds.
Growth & Income Funds - The growth & income funds include the Vanguard
Wellington Fund and the Neuberger & Berman Guardian Fund which seek long-term
capital growth, current income and growth of income. The funds typically
invest in securities (stocks and bonds) of dividend-paying companies with the
potential for earnings growth.
Prime Bank Certificates of Deposit - Interest bearing certificates issued by the
Bank at terms ranging from 6 months to 60 months and rates ranging from 4.40% to
6.30%.
Prime Bancorp, Inc. Common Stock - Seeks long-term capital growth, current
income and growth of income. If monies available from contributions are
insufficient to purchase a whole share of Prime Bancorp, Inc. common stock, such
amount is invested on a short-term basis in a money market fund, which
emphasizes liquidity and preservation of capital by investing in short-term debt
instruments (maturing in one year or less). The money market fund is not a
direct participant investment option.
Bond Funds - The bond funds include the Benham GNMA Income Fund and the Dreyfus
Short Interest Government Fund which seek high income consistent with a high
degree of principal stability by investing primarily in short-term, high quality
bonds (rated AAA or AA).
Participants may change their investment options quarterly.
8 (Continued)
<PAGE>
PRIME BANCORP, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements, Continued
- ------------------------------------------------------------------------------
(1) Continued
Loan Fund
Participants may borrow from their fund accounts any amount up to a maximum
equal to the lessor of (i) $50,000 or (ii) 50% of their vested account balance.
Loan transactions are treated as a transfer to (from) the various investment
funds from (to) the participants' Loan Fund. Loan terms range from 1-5 years
except for the purchase of a primary residence, which the range is 1-25 years.
The loans are secured by the balance in the participant's account and bear
interest at a rate commensurate with local prevailing rates as determined
quarterly by the Loan Committee. Principal and interest are paid ratably
through bi-weekly payroll deductions.
Payment of Benefits
On termination of service due to death, disability or retirement, a participant
may elect to receive either a lump-sum amount equal to the value of the
participant's vested interest in his or her account, or annual installments over
5 years, 10 years or life. For termination of service due to other reasons, a
participant may receive the value of the vested interest in his or her account
as a lump-sum distribution.
Forfeited Accounts
Forfeited non-vested accounts may be used to reduce future employer
contributions. There were no material forfeited non-vested accounts in 1997,
1996 or 1995.
Rollovers
Participants are permitted to deposit into the Plan, distributions received
from other qualified plans (i.e., rollovers). Rollovers from other plans are
allocated to the various funds based on the participant's direction.
Participants are 100% vested in these rollovers.
Administrative Fees
All administrative expenses incurred by the Plan are paid for by the Company.
9 (Continued)
<PAGE>
PRIME BANCORP, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements, Continued
- ------------------------------------------------------------------------------
(2) Summary of Significant Accounting Policies
Basis of Presentation
The financial statements of the Plan are prepared under the accrual method of
accounting. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Investment Valuation and Income Recognition
Investments in non-dollar mutual funds are carried at fair value, measured by
net asset value reported by the respective mutual funds. The value of units of
the mutual funds is based on the underlying fair value of the investments within
the funds. The money market fund is valued at amortized cost which approximates
fair value. Prime Bancorp, Inc. Common Stock is stated at fair value based on
quoted market price. The certificates of deposit are carried at par which
approximates fair value. Employee loans are stated at their unpaid principal
balance which approximates fair value.
Securities transactions are recognized on the trade date. Realized gains and
losses on investments are determined by the weighted average method. Changes in
unrealized appreciation (depreciation) are included in investment income.
Payment of Benefits
Benefits are recorded when paid.
10 (Continued)
<PAGE>
PRIME BANCORP, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements, Continued
- ------------------------------------------------------------------------------
(3) Investments
Investments as of December 31, 1997 and 1996 are as follows:
<TABLE>
<CAPTION>
1997 1996
----------------- ------------------
Historical Fair Historical Fair
cost value cost value
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Benham GNMA Income Fund, 6,444 shares
at 12/31/97; 3,933 shares at 12/31/96 $ 67,335 68,826 40,838 41,259
Dreyfus Short Interest Government Fund,
7,548 shares at 12/31/97; 5,303 shares
at 12/31/96 81,665 81,817 58,155 57,642
Kaufmann Fund, 25,813 shares at 12/31/97;
16,146 shares at 12/31/96 152,010 164,432 93,076 94,291
Neuberger & Berman:
Focus Fund, 5,856 shares at 12/31/97;
3,397 shares at 12/31/96 190,549 193,711 107,381 104,705
Guardian Fund, 3,170 shares at 12/31/97;
1,608 shares at 12/31/96 82,578 82,101 38,815 41,213
Prime Bancorp, Inc. Common Stock, 92,779
Shares at 12/31/97, 93,012 at 12/31/96 1,074,752 3,463,777 1,140,431 1,906,755
Prime Bank Certificates of Deposit,
$837,701 par value at 12/31/97; $778,656
par value at 12/31/96 837,701 837,701 778,656 778,656
Prime Bancorp, Inc. Stock Money Market
Fund, 3,530 shares at 12/31/97; 1,567
shares at 12/31/96 3,530 3,530 1,567 1,567
Vanguard Wellington Fund, 11,535 shares
at 12/31/97; 7,484 shares at 12/31/96 307,343 339,714 189,590 195,707
Participant loans, with interest rates
ranging from 7% to 10% and maturity dates
ranging from 1/31/98 to 7/30/23 69,034 69,034 23,971 23,971
- ----------------------------------------------------------------------------------
Total Investments $2,866,497 5,304,643 2,472,480 3,245,766
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
11 (Continued)
<PAGE>
PRIME BANCORP, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements, Continued
- ------------------------------------------------------------------------------
(3) Continued
The change in unrealized appreciation of investments for 1997, 1996 and 1995
was:
Unrealized appreciation at December 31, 1997 $2,438,146
Unrealized appreciation at December 31, 1996 773,286
- ---------------------------------------------------------------------
Change in unrealized appreciation for 1997 $1,664,860
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Unrealized appreciation at December 31, 1996 $ 773,286
Unrealized appreciation at December 31, 1995 937,264
- ---------------------------------------------------------------------
Change in unrealized appreciation for 1996 $ (163,978)
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Unrealized appreciation at December 31, 1995 $ 937,264
Unrealized appreciation at December 31, 1994 538,303
- ---------------------------------------------------------------------
Change in unrealized appreciation for 1995 $ 398,961
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Listed below is the aggregate historical cost, aggregate proceeds and the net
gain or loss arising from transactions, excluding money market accounts for
years ended 1997, 1996 and 1995:
1997
--------------------------------------
Aggregate Aggregate
historical cost proceeds Net gain
- -----------------------------------------------------------------------------
Sales of investment securities including
Prime Bancorp, Inc. Common Stock $204,919 272,778 67,859
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
1996
--------------------------------------
Aggregate Aggregate
historical cost proceeds Net gain
- -----------------------------------------------------------------------------
Sales of investment securities including
Prime Bancorp, Inc. Common Stock $462,081 820,818 358,737
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
1995
--------------------------------------
Aggregate Aggregate
historical cost proceeds Net gain
- -----------------------------------------------------------------------------
Sales of investment securities including
Prime Bancorp, Inc. Common Stock $121,640 189,017 67,377
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
12 (Continued)
<PAGE>
PRIME BANCORP, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements, continued
- ------------------------------------------------------------------------------
(3) Continued
The following table shows the participation in each of the respective funds as
of December 31, 1997, and includes participants who elected more than one
investment option:
Kaufmann Fund 82
Neuberger & Berman Focus Fund 78
Vanguard Wellington Fund 108
Neuberger & Berman Guardian Fund 46
Prime Bank Certificates of Deposit 131
Prime Bancorp, Inc. Common Stock 160
Benham GNMA Fund 38
Dreyfus Short Interest Government Fund 45
(4) Income Tax Status
The plan administrator and the plan sponsor believe that the Plan is designed
and is currently being operated in compliance with the applicable sections of
the Internal Revenue Code. Accordingly, no provision for income tax is included
in the accompanying financial statements.
(5) Description of Priorities Upon Plan Termination
Although the Company has not expressed any intention of terminating the Plan, it
may do so at any time. Upon termination, all amounts credited to the
participant accounts will become 100% vested. A reduction in the value of the
participant account would occur if market value losses, surrender charges or
deferred sales charges are incurred when Plan investments are liquidated for
distribution.
(6) Reportable Transactions
Reportable transactions are generally defined as a single transaction, or a
series of transactions, which exceed 5% of current value of the net plan
assets at the beginning of the plan year. For the year ended December 31, 1997,
there were no reportable transactions.
13 (Continued)
<PAGE>
PRIME BANCORP, INC. RETIREMENT SAVINGS PLAN Schedule 1
Item 27a--Schedule of Assets Held for Investment Purposes
December 31, 1997
- --------------------------------------------------------------------------------
Historical Current
cost value
- --------------------------------------------------------------------------------
Benham GNMA Income Fund, 6,444 units $ 67,335 68,826
Dreyfus Short Interest Government Fund, 7,548 units 81,665 81,817
Kaufmann Fund, 25,813 units 152,010 164,432
Prime Bank Stock Money Market Fund, 3,530 units 3,530 3,530
Neuberger & Berman
Focus Fund, 5,856 units 190,549 193,711
Guaridan Fund, 3,170 units 82,578 82,101
Prime Bancorp, Inc. Common Stock, 92,779 1,074,752 3,463,777
Prime Bank Certificates of Deposit, 837,701 units 837,701 837,701
Vanguard Wellington Fund, 11,535 units 307,343 339,714
- --------------------------------------------------------------------------------
Participant loans, with interest rates ranging from 7%
to 10%, and maturity dates ranging from 1/31/98 to
7/30/23 69,034 69,034
- --------------------------------------------------------------------------------
Total investments $2,866,497 5,304,643
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
14
</TABLE>
The Board of Directors
Prime Bancorp, Inc.:
We consent to incorporation by reference in the registration statements
(Nos. 333-57637 and 33-33307) on Form S-8 of Prime Bancorp, Inc. of our report
dated June 1, 1998, relating to the statements of net assets available for plan
benefits of Prime Bancorp, Inc. Retirement Savings Plan as of December 31,
1997 and 1996, and the related statements of changes in net assets available for
plan benefits for each of the years in the three-year period ended December 31,
1997, which report appears in the December 31, 1997 annual report on Form 11-K
of Prime Bancorp, Inc.
/s/ KPMG Peat Marwick LLP
Philadelphia, PA 19103
June 26, 1998
