FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20552
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly period Ended September 30, 1996
( ) 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
0-17915
1ST BANCORP
--------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Indiana 35-1775411
- -------------------------------------- ------------------------------------
(State of other jurisdiction of (I.R.S. Employer Identification
Incorporation or organization) Number)
101 N. Third Street
Vincennes, Indiana 47591
- -------------------------------------- ------------------------------------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including are code: (812) 882-4528
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______________
As of October 23, 1996, there were 670,643 Shares of the Registrant's Common
Stock issued and outstanding.
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<PAGE>
1ST BANCORP AND SUBSIDIARIES
INDEX
Page
PART I. FINANCIAL INFORMATION: Number
Item 1. Financial Statements
Consolidated Condensed Statements
of Financial Condition,
September 30, 1996 and June 30,
1996 (Unaudited) 3
Consolidated Condensed Statements
of Earnings (Loss), Three Months Ended
September 30, 1996 and 1995 (Unaudited) 4
Consolidated Condensed Statements of
Cash Flows, Three Months Ended
September 30, 1996 and 1995
(Unaudited) 5
Notes to Consolidated Condensed
Financial Statements (Unaudited) 6-7
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 8-13
PART II. OTHER INFORMATION 14
SIGNATURES 15
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<PAGE>
1ST BANCORP AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Unaudited and in Thousands)
<TABLE>
<CAPTION>
September 30, June 30,
1996 1996
---------------- ------------
ASSETS
Cash and cash equivalents:
<S> <C> <C>
Interest bearing deposits $ 13,385 $ 24,689
Non-interest bearing deposits 438 410
--------- ---------
Cash and cash equivalents 13,823 25,099
--------- ---------
Securities available for sale 10,453 10,499
Securities held to maturity (market value
of $42,460,000 at September 30, 1996 and
$42,184,000 at June 30, 1996) 43,592 43,624
Loans receivable, net 161,597 150,749
Loans held for sale 13,627 18,590
Accrued interest receivable:
Securities 647 1,036
Loans 1,090 1,179
Stock in FHLB of Indianapolis, at cost 4,864 4,864
Office premises and equipment 2,905 2,950
Real estate owned 452 177
Prepaid expenses and other assets 4,910 4,716
--------- ---------
TOTAL ASSETS $ 257,960 $ 263,483
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $ 134,006 $ 137,148
Advances from FHLB and other borrowings 98,905 100,885
Advance payments by borrowers for taxes and insurance 644 492
Accrued interest payable on deposits 653 816
Accrued expenses and other liabilities 2,602 2,413
--------- ---------
Total Liabilities $ 236,810 $ 241,754
--------- ---------
Stockholders' Equity:
Preferred stock, no par value; shares authorized
of 2,000,000, none outstanding -- --
Common stock, $1 par value; shares authorized
of 5,000,000; shares issued and outstanding
of 670,643 at September 30, 1996 and
666,561 at June 30, 1996 $ 671 $ 667
Paid-in capital 2,838 2,747
Retained earnings, substantially restricted 17,862 18,560
Unrealized depreciation on securities (221) (245)
--------- ---------
Total Stockholders' Equity $ 21,150 $ 21,729
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 257,960 $ 263,483
========= =========
</TABLE>
See Notes to Consolidated Condensed Financial Statements
- 3 -
<PAGE>
1ST BANCORP AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (LOSS)
(Unaudited and in Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended
September 30,
--------------------------------------------
1996 1995
------------- --------------
INTEREST INCOME:
<S> <C> <C>
Loans $ 3,595 $ 4,222
Investment securities 927 1,188
Other short-term investments and
interest bearing deposits 187 217
------- -------
Total Interest Income 4,709 5,627
------- -------
INTEREST EXPENSE:
Deposits 1,829 2,772
Short-term borrowings 21 24
FHLB advances and other borrowings 1,417 1,163
------- -------
Total Interest Expense 3,267 3,959
------- -------
NET INTEREST INCOME BEFORE
PROVISION FOR LOAN LOSSES 1,442 1,668
Provision for loan losses 46 25
------- -------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 1,396 1,643
------- -------
NON-INTEREST INCOME:
Fees and service charges 84 95
Net gain (loss) on sales of investment securities available
for sale and trading account investments -- 1
Net gain on sales of loans 653 483
Other 136 406
------- -------
Total Non-Interest Income 873 985
------- -------
NON-INTEREST EXPENSE:
Compensation and employee benefits 1,045 1,034
Net occupancy 181 205
Federal insurance premiums 1,429 136
Other 669 470
------- -------
Total Non-Interest Expense 3,324 1,845
------- -------
Earnings (Loss) Before Income Taxes (1,055) 783
Income Taxes (424) 295
------- -------
NET EARNINGS (LOSS) ($ 631) $ 488
======= =======
EARNINGS (LOSS) PER SHARE:
Primary ($ 0.94) $ 0.72
Fully-diluted ($ 0.94) $ 0.72
</TABLE>
See Notes to Consolidated Condensed Financial Statements
- 4 -
<PAGE>
1ST BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in Thousands)
<TABLE>
<CAPTION>
Three Months Ended
September 30,
1996 1995
------------ ------------
Net Cash Flow From Operating Activities:
<S> <C> <C>
Net earnings (loss) ($631) $488
Adjustments to reconcile net cash provided by operating activities:
Depreciation and amortization 58 65
Amortization of mortgage servicing rights 26 45
Gain on sale of loans (653) (483)
Net change in loans held for sale 4,963 (2,392)
Provision for loan losses 46 25
Decrease in accrued interest receivable 478 347
Decrease (increase) in prepaid expenses and other assets (174) 315
Increase in accrued expenses and other liabilities 10 78
Undistributed loss of investment in limited partnership 36 30
------- --------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 4,159 (1,482)
------- -------
Cash Flows From Investing Activities:
Proceeds from maturities, calls, repayment of principal and sales
of investment and mortgage-backed securities available for sale 89 -
Purchase of investment and mortgage-backed securities - (12,415)
Proceeds from maturities, calls, and repayment of principal of
investment and mortgage-backed securities 31 11,753
Principal collected on loans, net of originations (10,313) 721
Purchases of office premises and equipment (25) (27)
Other (275) (34)
------- -------
NET CASH USED BY INVESTING ACTIVITIES (10,493) (2)
------- -------
Cash Flows From Financing Activities:
Net decrease in deposits (3,142) (2,379)
Proceeds from FHLB advances and other borrowings 18,865 27,866
Repayment of FHLB advances and other borrowings (20,845) (27,915)
Proceeds from issuance of common stock 95 95
Payment of dividends on common stock (67) (64)
Increase (decrease) in advance payments by borrowers
for taxes and insurance 152 (488)
------- ----------
NET CASH USED BY FINANCING ACTIVITIES (4,942) (2,885)
------- -------
NET DECREASE IN CASH AND CASH EQUIVALENTS (11,276) (4,369)
Cash and Cash Equivalents at Beginning of Period 25,099 17,332
------- -------
Cash and Cash Equivalents at End of Period $13,823 $12,963
======= =======
</TABLE>
See Notes to Consolidated Condensed Financial Statements
<PAGE>
1ST BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
Note 1. In the opinion of management, the accompanying unaudited consolidated
condensed financial statements contain all adjustments necessary for a fair
presentation. The results of operations for the interim periods are not
necessarily indicative of the results which may be expected for an entire year.
These financial statements are condensed and do not contain all disclosures
required by generally accepted accounting principles which would be included in
a complete set of financial statements.
Note 2. Earnings Per Share
Primary earnings per share and fully-diluted earnings per share have been
computed on the basis of the weighted average number of common shares
outstanding and the dilutive effect of stock options not exercised during the
periods presented using the treasury stock method. The weighted average number
of shares outstanding for use in the earnings per share computations was 666,979
and 670,929 for the three months ended September 30, 1996 and 1995,
respectively.
Note 3. Stock Option and Purchase Plans
1ST BANCORP (the "Corporation") has an Incentive Stock Option Plan whereby
49,220 shares of authorized but unissued common stock were reserved for issuance
upon the exercise of stock options granted to key employees. Stock options have
been granted for 49,220 shares under the plan at an option price of $5.71 per
share. The Corporation also has a stock option plan under which 157,500 shares
of authorized but unissued common stock were reserved. Under this plan, 91,875
non-qualified stock options were granted at $5.71 per share to outside
directors, and 39,375 incentive stock options and 9,844 non-qualified stock
options were granted at $5.71 and $5.86 per share, respectively, to certain key
employees. All options granted had been exercised or canceled as of June 30,
1996.
The Corporation maintains an Employee Stock Purchase Plan whereby full-time
employees of First Federal Bank, a Federal Savings Bank (the "Bank") and First
Financial Insurance Agency, Inc. can purchase its common stock at a discount.
The purchase price of the shares under this plan is 85% of the fair market value
of such stock at the beginning or end of the offering period, whichever is
lesser. 15,000 authorized but unissued shares were reserved for issuance under
this plan. No shares have been issued under this plan to date. Under a former
plan, with identical terms, 13,125 authorized but unissued shares were reserved
for issuance. A total of 3,570 shares were issued and purchased by employees in
the first quarter of fiscal year 1997 for the fiscal 1996 plan year under the
former plan.
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<PAGE>
1ST BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
Note 4. Stock Repurchase Plan
In August 1996, the Board authorized the repurchase of up to 5% of the
outstanding shares of common stock (670,131 shares were outstanding at the
time), subject to market conditions, over a two year period which expires in
August 1998. There have been no repurchases of stock under this plan.
Note 5. Savings Association Insurance Fund ("SAIF") Recapitalization
On September 30, 1996, the federal government mandated an industry wide
assessment to recapitalize the SAIF, which is a part of the Federal Deposit
Insurance Corporation ("FDIC"). The special assessment was charged to savings
associations with insured deposits by the SAIF. The assessment was calculated at
0.657% of insured deposits as of March 31, 1995. The Bank's portion of the
assessment was $1,330,000 and is included in non-interest expense for the
quarter ended September 30, 1996.
Note 6. Reclassifications
Certain amounts in the fiscal year 1996 consolidated financial statements have
been reclassified to conform to the fiscal year 1997 presentation.
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<PAGE>
1ST BANCORP AND SUBSIDIARIES
Management's Discussion and Analysis of Financial Condition
and Results of Operations
(a) Financial Condition:
Total assets at September 30, 1996, were $257,960,000, a decrease of $5,523,000,
or 2.10%, from total assets of $263,483,000 at June 30, 1996. The reduction in
total assets is primarily attributable to lower levels of cash and cash
equivalents.
Cash and cash equivalents declined by $11,276,000, or 44.93%, to $13,823,000 at
September 30, 1996, from $25,099,000 at June 30, 1996. At June 30, 1996, cash
and cash equivalents were at above normal levels primarily due to a significant
bulk sale of lower yielding conforming mortgage loans during the fourth quarter
of fiscal year 1996. Funds from the sale were invested primarily in higher
yielding nonconforming mortgage loans during the quarter ended September 30,
1996, contributing to the lower level of cash. In addition, a portion of the
funds were used to pay down borrowed funds and repay matured brokered deposits
during the first quarter of fiscal year 1997.
Investment securities consist primarily of U.S. Agency securities. The majority
of securities have either a "call" or "step-up" feature, which provides the Bank
with flexibility under varying interest rate scenarios. In a falling interest
rate environment, the securities with a "call" feature would be called by the
issuer. The rates paid on the "step-up" securities increase after a period of
time. Generally, the rates increase on the securities several times prior to
maturity.
The level of investment securities held to maturity (including mortgage-backed
securities) remained stable and totaled $43,592,000, at September 30, 1996,
compared with $43,624,000 at June 30, 1996. Investment securities available for
sale (including mortgage-backed securities) also remained stable and totaled
$10,453,000 at September 30, 1996, compared with $10,499,000 at June 30, 1996.
Net loans receivable increased by $10,848,000, or 7.20%, to $161,597,000 at
September 30, 1996, from $150,749,000 at June 30, 1996. The increase in net
loans receivable is attributable to residential mortgage loan production. Growth
occurred in both the conforming and non-conforming mortgage loan portfolios.
Emphasis continues to be placed on increasing the non-conforming loan portfolio
to further enhance the Bank's net interest margin.
Loan production during the three months ended September 30, 1996 decreased
modestly compared to the same period of the prior year. During the three months
ended September 30, 1996, the Bank funded $37.8 million of loans compared to
$41.5 million of loans during the three months ended September 30, 1995.
Primarily responsible for the slight decrease in loan production was the
decrease of purchased one-to-four family mortgage loans. This type of production
totaled $1.6 million for the quarter ended September 30, 1996, compared with
$4.2 million for the same period of the prior year.
-8-
<PAGE>
1ST BANCORP AND SUBSIDIARIES
Management's Discussion and Analysis of Financial Condition
and Results of Operations
During the three months ended September 30, 1996, non-conforming mortgage
lending constituted $22.1 million, or 58.47%, of total loans funded during the
period. During the three months ended September 30, 1996, $16.9 million of
non-conforming loans were sold on a non-recourse basis in the secondary market.
The remainder of the loans, typically the highest quality loans, are retained in
portfolio to increase the net interest margin. Non-conforming loans, including
those held for sale, increased to $44.1 million at September 30, 1996 compared
to $39.9 million at June 30, 1996.
Loans held for sale decreased by $4,963,000, or 26.70% to $13,627,000 at
September 30, 1996 from $18,590,000 at June 30, 1996. The primary reason for the
decrease in loans held for sale was the sale of two bulk packages of adjustable
rate non-conforming mortgage loans which totaled approximately $7.7 million
during the quarter ended September 30, 1996. These two packages were held for
sale at June 30, 1996.
Asset quality remains strong. At September 30, 1996, non-performing assets
totaled $1,142,000 or .44% of total assets. This compares to $732,000 of
non-performing assets, or .29% of total assets, at June 30, 1996. The increase
in non-performing assets was the result of one-to-four family loans becoming 90
days or more past due and the addition of one single family real estate owned
property.
The table below sets forth the amounts and categories of 1ST BANCORP's
non-performing assets (non-accrual loans and other non-performing assets) for
the balance sheet dates presented. Loans are reviewed regularly and are
generally placed on non-accrual status when they become contractually past due
90 days or more.
September 30, June 30,
1996 1996
------------- --------
(In thousands)
Non-performing assets:
Non-accrual loans $ 690 $ 555
Other non-performing assets (1) 452 177
Restructured loans -- --
------- -----
Total non-performing assets $1,142 $ 732
Non-performing assets to total assets .44% .29%
(1) Certain assets acquired through foreclosures or deeds in lieu of
foreclosure, which are included in the Consolidated Condensed Statement of
Financial Condition as real estate owned.
-9-
<PAGE>
1ST BANCORP AND SUBSIDIARIES
Management's Discussion and Analysis of Financial Condition
and Results of Operations
During the three months ended September 30, 1996, the Bank established, through
operations, provisions for loan losses totaling $46,000. In addition, the Bank
realized net charge-offs through its allowance for loan loss accounts of
$39,000. The Bank's allowance for loan loss was $903,000 at September 30, 1996
and $896,000 at June 30, 1996.
Total deposits decreased by $3,142,000, or 2.29%, to $134,006,000 at September
30, 1996 from $137,148,000 at June 30, 1996. The decrease in deposits resulted
primarily from the maturity of brokered deposits during the quarter ended
September 30, 1996.
Advances from the Federal Home Loan Bank ("FHLB") and other borrowings decreased
by $1,980,000, or 1.96%, to $98,905,000 at September 30, 1996 from $100,885,000
at June 30, 1996. The slight decrease in borrowed money resulted primarily from
the repayment of short-term borrowed funds.
Accrued expenses and other liabilities increased slightly to $2,602,000 at
September 30, 1996, from $2,413,000 at June 30, 1996. While there was only a
slight increase in the overall accrued expenses and other liabilities category,
there were two items that changed significantly during the quarter ended
September 30, 1996. First, accounts payable increased by $1.3 million due
exclusively to the SAIF assessment. Second, accrued income tax payable decreased
by $529,000 due to the net loss attributable to the SAIF assessment. The
assessment expense was recognized during the first quarter of fiscal 1997 on a
tax effected basis, and is payable during the second quarter of fiscal 1997.
(b) Results of Operations:
During the three months ended September 30, 1996, 1ST BANCORP recorded a net
loss of $631,000, or $0.94 per share, compared to net earnings of $488,000, or
$0.72 per share, for the three months ended September 30, 1995. The net loss for
the quarter ended September 30, 1996, was a direct result of the one-time
assessment for the recapitalization of the SAIF.
Net earnings for the quarter ended September 30, 1996, would have been
approximately $165,000 or $0.24 per share as compared to net earnings of
$488,000 or $0.72 per share for the quarter ended September 30, 1995, without
the one-time SAIF assessment. This reduction was attributable to lower net
interest income, lower non-interest income, and one-time charges associated with
the loan origination offices recorded during the quarter.
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<PAGE>
1ST BANCORP AND SUBSIDIARIES
Management's Discussion and Analysis of Financial Condition
and Results of Operations
Net interest income before provision for loan losses was $1,442,000 for the
three months ended September 30, 1996, compared to $1,668,000 for the three
months ended September 30, 1995. The net interest margin was 2.30% for the three
months ended September 30, 1996 compared to 2.24% for the three months ended
September 30, 1995. The lower level of net interest income was the result of a
lower volume of interest-earning assets and interest-bearing liabilities. The
lower levels of interest-earning assets and interest-bearing liabilities
compared with the prior year were the result of the sale of two retail branch
offices of the Bank in the second quarter of fiscal 1996.
Non-interest income for the three months ended September 30, 1996 totaled
$873,000 compared to $985,000 for the three months ended September 30, 1995.
During the quarter ended September 30, 1996, there were no sales of mortgage
servicing rights compared to a net gain of $237,000 on the sale of mortgage
servicing rights during the quarter ended September 30, 1995. The gain on sale
of servicing is included in "Other" non-interest income in the Consolidated
Condensed Statement of Earnings.
Partially offsetting this decline in non-interest income was the increased gain
on the sale of mortgage loans. The gain on sale of mortgage loans totaled
$653,000 for the quarter ended September 30, 1996 compared to $483,000 for the
quarter ended September 30, 1995. The total volume of mortgage loan sales
increased only modestly to $23.9 million from $22.1 million. However, the type
of loans sold changed to primarily non-conforming loan sales from primarily
conforming loan sales which resulted in the increased gain on sale of loans.
Non-conforming loan sales totaled $16.9 for the quarter ended September 30,
1996, compared with $4.1 million for the same period of the prior year.
Typically, for the Bank, non-conforming loans have been sold at higher gain
levels compared with conforming loan sales due to pricing methodology
differences (including loan origination fees collected) at the time the loans
are originated.
Non-interest expense was $3,324,000 for the three months ended September 30,
1996, compared to $1,845,000 for the three months ended September 30, 1995. The
assessment to recapitalize the SAIF is directly responsible for the significant
increase in non-interest expense. On September 30, 1996, the federal government
mandated an industry wide assessment to recapitalize the SAIF, which is a part
of the FDIC. The special assessment was charged to savings associations with
insured deposits by the SAIF. The assessment was calculated at 0.657% of insured
deposits as of March 31, 1995. The Bank's portion of the assessment was
$1,330,000 and is included in non-interest expense for the quarter ended
September 30, 1996. The assessment is payable on November 27, 1996.
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<PAGE>
1ST BANCORP AND SUBSIDIARIES
Management's Discussion and Analysis of Financial Condition
and Results of Operations
While the immediate effect on earnings of the one-time assessment is
significant, future earnings will be augmented by lower deposit insurance
premiums. Based on the latest information available, it is anticipated that the
Bank will begin paying an approximately 0.065% premium for insured deposits as
of January 1, 1997, compared with the current premium rate of 0.23%.
(C) Capital Resources and Liquidity:
The Corporation is subject to regulation as a savings and loan holding company
by the Office of Thrift Supervision ("OTS"). First Federal Bank, A Federal
Savings Bank, as a subsidiary of a savings and loan holding company, is subject
to certain restrictions in its dealings with the Corporation. The Bank is
subject to the regulatory requirements applicable to a federal savings bank.
Current capital regulations require savings institutions to have minimum
tangible capital equal to 1.5% of total assets and a minimum 3% core capital
ratio. Additionally, savings institutions are required to meet a risk-based
capital ratio equal to 8.0% of risk-weighted assets. At September 30, 1996, the
Bank met all current capital requirements.
The following is a summary of the Bank's regulatory capital and capital
requirements at September 30, 1996:
Tangible Core Risk-Based
Capital Capital Capital
----------- ----------- -----------
Regulatory Capital $22,415,000 $22,415,000 $22,820,000
Minimum Capital Requirement 3,873,000 7,746,000 10,181,000
----------- ----------- -----------
Excess Capital $18,542,000 $14,669,000 $12,639,000
Regulatory Capital Ratio 8.68% 8.68% 17.93%
Required Capital Ratio 1.50% 3.00% 8.00%
During the quarter ended September 30, 1996, 1ST BANCORP paid a $0.10 dividend
per share to shareholders. This is the sixteenth consecutive quarterly dividend
1ST BANCORP has paid to shareholders.
-12-
<PAGE>
1ST BANCORP AND SUBSIDIARIES
Management's Discussion and Analysis of Financial Condition
and Results of Operations
Liquidity measures the Bank's ability to meet savings withdrawals and lending
commitments. Management believes that liquidity is adequate to meet current
requirements, including the funding of $20,637,000 in loan commitments and
$1,251,000 of loans in process outstanding at September 30, 1996. The majority
of these commitments are expected to be funded within the three month period
ending December 31, 1996. At September 30, 1996, the Bank had $4,380,000 in
outstanding commitments to sell mortgage loans and mortgage-backed securities.
The Bank maintains liquidity of at least 5% of net withdrawable assets. The
liquidity ratio at September 30, 1996 was 12.03%.
In August 1996, the Board authorized the repurchase of up to 5% of the
outstanding shares of common stock (670,131 shares were outstanding at the
time), subject to market conditions, over a two year period which expires in
August 1998. There have been no repurchases of stock under this plan.
There are no other known trends, events, or uncertainties, including current
recommendations by regulatory authorities, that should have, or that are
reasonably likely to have, a material effect on the liquidity, capital
resources, or operations of 1ST BANCORP.
-13-
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
First Federal is involved in two lawsuits that are not in the ordinary course of
business. The first involves a discrimination complaint filed regarding the
Bank's lending practices. The second lawsuit was filed by a title company
providing closing services for a mortgage loan that was purchased by the Bank
from a third party mortgage company subsequent to closing, and alleges the
mortgage company was acting as an agent for the Bank and failed to provide funds
for closing the transaction in exchange for the note and deed of trust. First
Federal received a summary judgement in its favor in this case. The plaintiffs
are appealing the court's decision. It is the opinion of management that, based
on current information available, the ultimate resolutions of these matters will
not have a material adverse effect on the Corporation's financial position.
Other than the above, neither 1ST BANCORP nor its subsidiaries is involved in
any legal proceedings, other than routine proceedings occurring in the ordinary
course of its business.
Item 4. Submission of Matters to a Vote of Security Holders.
There were no matters submitted to a vote of security holders during the quarter
ended September 30, 1996.
Item 6. Exhibits and Reports on Form 8-K
a) The following exhibit is filed herewith: Exhibit 27 Financial Data Schedule
b) Reports on Form 8-K -- There were no reports on Form 8-K filed during the
three months ended September 30, 1996.
-14-
<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.
1ST BANCORP
Date: November 12, 1996 By: /s/ C. James McCormick
--------------------------
C. James McCormick, Chairman and
Chief Executive Officer
Date: November 12, 1996 By: /s/ Frank D. Baracani
-----------------------------
Frank D. Baracani, President
Date: November 12, 1996 By: /s/ Mary Lynn Stenftenagel
---------------------------------
Mary Lynn Stenftenagel,
Secretary-Treasurer and
Chief Accounting Officer
-15-
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM 1ST BANCORP
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000840458
<NAME> 1ST BANCORP
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-1-1996
<PERIOD-END> SEP-30-1996
<EXCHANGE-RATE> 1.000
<CASH> 438
<INT-BEARING-DEPOSITS> 13,385
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 10,453
<INVESTMENTS-CARRYING> 43,592
<INVESTMENTS-MARKET> 42,460
<LOANS> 176,127
<ALLOWANCE> 903
<TOTAL-ASSETS> 257,960
<DEPOSITS> 134,006
<SHORT-TERM> 0
<LIABILITIES-OTHER> 3,899
<LONG-TERM> 98,905
<COMMON> 0
0
671
<OTHER-SE> 20,479
<TOTAL-LIABILITIES-AND-EQUITY> 257,960
<INTEREST-LOAN> 3,595
<INTEREST-INVEST> 927
<INTEREST-OTHER> 187
<INTEREST-TOTAL> 4,709
<INTEREST-DEPOSIT> 1,829
<INTEREST-EXPENSE> 3,267
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<INCOME-PRETAX> (1,055)
<INCOME-PRE-EXTRAORDINARY> (631)
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<NET-INCOME> (631)
<EPS-PRIMARY> (0.94)
<EPS-DILUTED> (0.94)
<YIELD-ACTUAL> 7.53
<LOANS-NON> 690
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<ALLOWANCE-UNALLOCATED> 405
</TABLE>
