<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended March 31, 1997
Commission file number: 0-17482
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
County Bank Corp
Michigan EIN 38-0746239
83 W. Nepessing St., Lapeer, MI 48446
(810) 644-2977
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 classes of
common stock, as of latest practicable date.
There are 593,236 shares of common stock ($5.00 par value) outstanding as of
March 31, 1997.
<PAGE> 2
COUNTY BANK CORP
FORM 10-Q
For the Quarter Ended March 31, 1997
INDEX
PART I: FINANCIAL INFORMATION PAGE
Item 1. Financial Statements 2
. Introduction-
. Balance Sheets - 3
At March 31, 1997 and December 31, 1996
. Statements of Income - 4
For the three months ended March 31, 1997 and 1996
. Statement of Cash Flows - 5
For the three months ended March 31, 1997 and 1996
Item 2. Management's Discussion and Analysis of 6
Financial Condition and Results of Operations
PART II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 7
All items except those set forth above are inapplicable and have been omitted.
SIGNATURES 8
<PAGE> 3
Part I - Financial Information
Item I - Financial Statements
Introduction to Financial Statements
The consolidated financial statements of County Bank Corp and subsidiary,
Lapeer County Bank & Trust Co., have been prepared, without audit, pursuant to
the rules and regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
omitted pursuant to such rules and regulations. The Company believes that the
disclosures are adequate to make the information presented not misleading when
read in conjunction with financial statements and the notes thereto included in
County Bank Corp's Form 10-K as filed with the Securities and Exchange
Commission for the year ended December 31, 1996.
The financial information presented reflects all adjustments (consisting only
of normal recurring adjustments) which are, in the opinion of mangement,
necessary for a fair statement of the results for the interim periods
presented. The results for interim periods are not necessarily indicative of
the results to be expected for the year.
<PAGE> 4
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS MARCH 31 DECEMBER 31
BALANCE SHEETS (in thousands) 1997 1996
<S> <C> <C>
ASSETS
Cash and due from banks............................................................. 7,963 8,626
Investment securities available for sale............................................ 18,233 19,330
Investment securities held to maturity.............................................. 27,699 28,079
------- -------
Total investment securities..................................................... 45,932 47,409
Federal funds sold ................................................................. 4,000 1,200
Loans............................................................................... 118,772 117,474
Less: Reserve for possible loan losses........................................... 1,849 1,805
------- -------
Net loans..................................................................... 116,923 115,669
Bank premises & equipment........................................................... 2,678 2,715
Interest receivable and other assets................................................ 2,595 2,167
------- -------
TOTAL ASSETS..................................................................... 180,091 177,786
======= =======
LIABILITIES & STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Demand........................................................................... 67,949 68,614
Savings.......................................................................... 43,894 41,292
Time ............................................................................ 46,455 46,612
------- -------
Total deposits................................................................. 158,298 156,518
Interest payable and other liabilities.............................................. 1,437 1,406
------- -------
TOTAL LIABILITIES................................................................ 159,735 157,924
STOCKHOLDERS' EQUITY
Common stock-$5.00 par value, 1,200,000 shares authorized,
593,236 shares outstanding......................................................... 2,966 2,966
Surplus............................................................................. 8,634 8,634
Undivided profits................................................................... 8,637 7,882
Unrealized losses on securities available for sale.................................. 119 380
------- --------
TOTAL STOCKHOLDERS' EQUITY....................................................... 20,356 19,862
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY....................................... 180,091 177,786
======= =======
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
CONSOLIDATED INCOME STATEMENTS
(in thousands) THREE MONTHS
ENDED
MARCH 31
1997 1996
<S> <C> <C>
INTEREST INCOME
Interest and fees on loans.................................................................... 2,523 2,292
Interest on investment securities: 717 689
Interest on Federal funds sold................................................................ 33 68
----- -----
TOTAL INTEREST INCOME................................................................... 3,273 3,049
INTEREST EXPENSE
Demand deposits............................................................................ 528 274
Savings deposits........................................................................... 117 305
Time deposits.............................................................................. 609 601
Borrowed funds............................................................................. - -
----- -----
TOTAL INTEREST EXPENSE.................................................................. 1,254 1,180
----- -----
NET INTEREST INCOME........................................................................... 2,019 1,869
Provision for possible loan losses............................................................ 30 30
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES.................................................................. 1,989 1,839
OTHER INCOME
Service fees on loan and deposit accounts..................................................... 270 277
Other......................................................................................... 230 203
----- -----
TOTAL OTHER INCOME...................................................................... 500 480
OTHER EXPENSES
Salaries and employee benefits................................................................ 871 874
Net occupancy expense......................................................................... 208 191
Other......................................................................................... 391 397
----- -----
TOTAL OTHER EXPENSE..................................................................... 1,470 1,462
----- -----
INCOME BEFORE PROVISION FOR
FEDERAL INCOME TAX......................................................................... 1,019 857
Provision for Federal income tax.............................................................. 275 230
----- -----
NET INCOME.................................................................................... 744 627
===== =====
EARNINGS PER SHARE
Net Income.................................................................................... 1.25 1.06
Cash Dividend Declared........................................................................ 0.28 0.25
</TABLE>
<PAGE> 6
<TABLE>
<CAPTION>
STATEMENT OF CASH FLOWS THREE MONTHS ENDED
(in thousands) MARCH 31
1997 1996
<S> <C> <C>
Cash flows from operating activities
Net income.................................................................................... 744 627
Adjustments to reconcile net income to net
cash provided from operating activities:
Depreciation and amortization................................................................. 117 115
Provision for loan losses..................................................................... 30 30
Net amortization and accretion of securities.................................................. 51 51
Deferred income taxes......................................................................... 0 0
Net gain on sale of investment securities..................................................... 0 0
(Gain) loss on other real estate owned........................................................ (7) 0
Net change in accrued interest receivable..................................................... (366) (266)
Net change in accrued interest payable and other.............................................. 31 69
---- ----
Net cash provided by operating activities..................................................... 600 626
---- ----
Cash flows from investing activities
Proceeds from sale of investment securities: AFS.............................................. 0 0
Proceeds from maturities of investment securities: AFS........................................ 970 1,421
Proceeds from maturities of investment securities: HTM........................................ 820 1,815
Purchase of investment securities: AFS........................................................ 0 (1,020)
Purchase of investment securities: HTM........................................................ (491) 0
Net (increase) decrease in loans.............................................................. (1,312) (1,730)
Proceeds from the sale of Other Real Estate................................................... 13 185
Premises and equipment expenditures........................................................... (77) (221)
------ ------
Net Cash provided from (used in) investing activities......................................... (77) 450
------ ------
Cash flows from financing activities
Net increase (decrease) in interest bearing
and non-interest bearing demand accounts.................................................... (665) 1,023
Net increase (decrease) in savings and time deposits.......................................... 2,445 (824)
Cash dividends paid........................................................................... (166) (148)
----- -----
Net Cash provided from (used in)financing activities.......................................... 1,614 51
----- -----
Net increase in cash and equivalents.......................................................... 2,137 1,127
Cash and equivalents at beginning of year..................................................... 9,826 13,077
----- ------
Cash and equivalents at end of period 11,963 14,204
====== ======
Cash paid for:
Interest...................................................................................... 1,255 1,181
Income taxes.................................................................................. 0 0
</TABLE>
<PAGE> 7
Item 2. Management's Discussion and Analysis of Financial Condition and the
Results of Operations.
Financial Condition
New loan production continued through the first quarter of 1997. Net increases
in loans totaled $1,312,000. Net increases in deposits totaled $1,780,000.
Both growth numbers represent historically strong performance for the first
quarter.
Loan demand was met with cash provided by maturing investments. Income from
operations and net increases in the deposit accounts resulted in net increases
to cash and cash equivalents. Part of the net growth in deposits is known to
be temporary. Consequently, the deposits remain in cash equivalent investments
and are not invested long term.
Results of Operations
Net income for the quarter increased 18.7% over the first quarter of 1996.
Earnings per share reached $1.25. The loan to deposit ratio improved to 75%.
The growth in loans as a portion of deposits was the primary contributor to
increased interest income. Non interest income and expense categories remained
at levels consistent with the Corporation's recent performance.
Risk Factors
Loan quality remains high. The reserve for loan losses to gross loans ratio is
1.56%. The non performing loans to total loans ratios is .74%. This ratio
compares loans past due 90 days or more and loans in non-accrual status to
total loans. This is an historically low ratio and indicates a high quality
portfolio.
The Corporation remains liability sensitive in relation to the risk of changes
in interest rates. The demand for residential mortgages remains strong in the
market area. Options to maintain both repricing opportunities for assets and
market tendencies for deposits are under constant review.
Capital
Strong net income performance and conservative dividend payments result in
increased capital. The moderate growth results in improving capital ratios.
<PAGE> 8
Part II.
Item 6. Exhibits and Reports on Form 8-K.
A) Not Applicable
B) A Form 8-K has not been filed during the three months ended March 31,
1997.
<PAGE> 9
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.
COUNTY BANK CORP
Date May 09, 1997
/s/ Joseph H. Black
---------------------------
Joseph H. Black, Treasurer
<PAGE> 10
EXHIBIT INDEX
EXHIBIT
NO. DESCRIPTION
- ------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 7,963
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 4,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 45,932
<INVESTMENTS-MARKET> 46,011
<LOANS> 118,772
<ALLOWANCE> 1,849
<TOTAL-ASSETS> 180,091
<DEPOSITS> 158,298
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,437
<LONG-TERM> 0
0
0
<COMMON> 2,966
<OTHER-SE> 17,390
<TOTAL-LIABILITIES-AND-EQUITY> 180,091
<INTEREST-LOAN> 2,523
<INTEREST-INVEST> 717
<INTEREST-OTHER> 33
<INTEREST-TOTAL> 3,273
<INTEREST-DEPOSIT> 1,254
<INTEREST-EXPENSE> 1,254
<INTEREST-INCOME-NET> 2,019
<LOAN-LOSSES> 30
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,470
<INCOME-PRETAX> 1,019
<INCOME-PRE-EXTRAORDINARY> 1,019
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 744
<EPS-PRIMARY> 1.25
<EPS-DILUTED> 1.25
<YIELD-ACTUAL> 8.08
<LOANS-NON> 264
<LOANS-PAST> 2,368
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 0
<CHARGE-OFFS> 21
<RECOVERIES> 35
<ALLOWANCE-CLOSE> 1,849
<ALLOWANCE-DOMESTIC> 45
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,804
</TABLE>
