SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the quarterly period ended June 30, 1997
Commission File Number 33-37078
FNC BANCORP, INC.
(Exact name of Small Business Issuer
as specified in its charter)
Georgia 58-1910615
(State or other jurisdiction of (I.R.S. Employer
incorporation or Organization) Identification No.)
420 South Madison Avenue
Douglas, Georgia
(Address of principal executive offices)
(912) 384-1100
(Issuer's telephone number)
Check whether the Issuer (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
The number of shares outstanding of the Issuer's class of common stock at June
30, 1997 was 405,710 shares of common stock.
Transitional Small Business Disclosure Format (Check one): Yes No X
PAGE 1
<PAGE>
FNC BANCORP, INC.
FOR 10-QSB
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Part I - Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets - June 30, 1997
(Unauditied) and December 31, 1996 ............................................3
Consolidated Statements of Income (Unaudited) - Six
Month Periods Ended June 30, 1997 and 1996 ....................................4
Consolidated Statements of Stockholders' Equity (Unaudited) -
Six Month Periods Ended June 30, 1997 and 1996 ................................5
Consolidated Statements of Cash Flows (Unaudited) - Six
Month Periods Ended June 30, 1997 and 1996 ....................................6
Notes to Consolidated Financial Statements .......................................7
Item 2. Management's Discussion and Analysis or Plan of Operation .....................8
Part II - Other Information
Item 1. Legal Proceedings ............................................................13
Item 2. Changes in Securities ........................................................13
Item 3. Defaults Upon Senior Securities ..............................................13
Item 4. Submission of Matters to a Vote
of Security Holders ........................................................13
Item 5. Other Information ............................................................13
Item 6. Exhibits and Reports on Form 8-K .............................................13
Signatures ...............................................................................13
PAGE 2
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
<CAPTION>
JUNE 30, DECEMBER 31,
1997 1996
Assets (UNAUDITED)
<S> <C> <C>
Cash and due from banks ...............................................$ 2,612,553 $ 4,917,622
Federal funds sold .................................................... 523,000 7,249,000
Securities available-for-sale ......................................... 10,612,457 7,829,126
Loans ................................................................. 26,364,052 27,345,643
Less allowance for loan losses ........................................ 1,129,767 1,520,385
------------- ------------
Loans, net ................................................... 25,234,285 25,825,258
Premises and equipment ................................................ 1,689,242 1,682,081
Other assets .......................................................... 1,330,114 1,615,939
------------- -------------
Total assets .................................................$ 42,001,651 $ 49,119,026
============= =============
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing demand .......................................$ 7,839,974 $ 9,409,021
Interest-bearing demand .......................................... 5,369,122 7,253,382
Savings .......................................................... 1,688,700 1,778,551
Time, $100,000 and over .......................................... 5,121,569 5,381,660
Other time ....................................................... 16,793,879 18,721,987
------------- -------------
Total deposits ............................................... 36,813,244 42,544,601
Notes payable to directors ............................................ 500,000 500,000
Advances from Federal Home Loan Bank .................................. 1,080,000 2,485,000
Other ................................................................. 565,159 655,853
------------- -------------
Total liabilities ............................................ 38,958,403 46,185,454
------------- -------------
Commitments and contingent liabilities
Stockholders' equity
Preferred stock, 10,000,000 shares authorized,
no shares issued
Common stock, par value $1; 10,000,000 shares
Authorized, 405,710 shares issued and
Outstanding .................................................. 405,710 405,710
Capital surplus .................................................. 3,610,541 3,610,541
Retained deficit ................................................. (979,694) (1,084,329)
Unrealized gains on available-for-sale securities,
Net of applicable deferred income taxes ...................... 6,691 1,650
------------- ------------
Total stockholders' equity ................................... 3,043,248 2,933,572
------------- ------------
Total liabilities and stockholders equity ....................$ 42,001,651 $ 49,119,026
============= ============
PAGE 3
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
SIX AND THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
1997 1996 1997 1996
--------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Interest income
Loans ............................$ 596,590 $ 827,146 $1,192,685 $1,654,103
Taxable securities ............... 149,466 70,134 270,754 136,742
Federal funds sold ............... 56,895 74,851 114,781 129,599
--------- --------- ---------- ----------
Total interest income ........ 802,951 972,131 1,578,220 1,920,444
Interest expense
Deposits ......................... 377,412 458,059 767,131 924,718
Federal funds purchased .......... 521 0 521 0
Advances from FHLB ............... 19,086 35,769 44,403 64,652
Stockholder loan ................. 9,416 0 18,791 0
--------- --------- ---------- ----------
Total interest expense ....... 406,435 493,828 830,846 989,370
Net interest income .......... 396,516 478,303 747,374 931,074
Provision for loan losses ............. 0 1,171,185 30,450 1,344,315
--------- --------- ---------- ---------
Net interest income after
provision for loan losses . 396,516 (692,882) 716,924 (413,241)
Other income
Service charges on
deposit accounts .............. 77,774 94,206 159,532 179,660
Mortgage origination income ...... 1,858 5,263 6,092 9,592
Gain (loss) on sale of securities 0 0 128 0
Other operating income ........... 26,935 20,731 52,495 43,093
--------- -------- --------- --------
Total other income ........... 106,567 120,200 218,247 232,345
Other expenses
Salaries and employee benefits ... 190,231 246,417 386,482 434,392
Equipment expenses ............... 34,252 24,613 64,568 48,176
Occupancy expenses ............... 24,395 25,979 45,270 52,741
Advertising ...................... 11,620 7,763 19,551 15,348
Data Processing .................. 14,783 15,326 30,318 32,956
Printing and office supplies ..... 10,979 20,163 24,692 33,156
Amortization ..................... 0 5,592 0 11,184
Other operating income ........... 101,447 82,424 203,671 162,054
--------- --------- ---------- ---------
Total other expenses ......... 387,707 428,277 774,552 790,007
Income (loss) before income
taxes (benefits) ............. 115,376 (1,000,959) 160,619 (970,903)
Income tax expense (benefit) .......... 42,471 (338,929) 55,984 (329,289)
--------- ----------- ---------- ---------
Net income (loss) ............$ 72,905 $ (662,030) $ 104,635 $(641,614)
========= =========== ========== =========
Earnings (loss) per common and common
equivalent share ............. 0.18 (1.42) 0.26 (1.37)
========= =========== ========== ========
PAGE 4
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
SIX MONTHS ENDED JUNE 30, 1997 AND 1996
<CAPTION>
UNREALIZED
LOSSES ON
SECURITIES
COMMON STOCK ADDITIONAL RETAINED AVAILABLE-
NUMBER OF PAR PAID IN EARNINGS FOR-SALE
SHARES VALUE CAPITAL (DEFICIT) NET OF TAX TOTAL
<S> <C> <C> <C> <C> <C> <C>
Balance,
December 31, 1995 ...$ 405,710 $ 405,710 $3,610,541 $ 62,003 $ (867) $4,077,387
Net income (loss) ... 0 0 0 (641,614) 0 (641,614)
Net change in unrealized
losses on securities
available-for-sale,
net of tax ....... 0 0 0 0 (15,670) (15,670)
--------- --------- ---------- ----------- ---------- ----------
Balance,
June 30, 1996
(unaudited) .........$ 405,710 $ 405,710 $3,610,541 $ (579,611) $ (16,537) $3,420,103
========= ========= ========== =========== ========== ==========
Balance,
December 31, 1996 ...$ 405,710 $ 405,710 $3,610,541 $(1,084,329) $ 1,650 $2,933,572
Net income (loss) ... 0 0 0 104,635 0 104,635
Net change in unrealized
losses on securities
available-for-sale,
net of tax ....... 0 0 0 0 5,041 5,041
--------- --------- ---------- ----------- ---------- ----------
Balance,
June 30, 1997
(unaudited) .........$ 405,710 $ 405,710 $3,610,541 $ (979,694) $ 6,691 $3,043,248
========= ========= ========== =========== ========== ==========
PAGE 5
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
1997 1996
<S> <C> <C>
Cash Flows From Operating Activities:
Net Income (Loss) ....................................................$ 104,635 $ (641,614)
Adjustments to reconcile net income or loss to net cash
provided by operating activities:
Depreciation ....................................................... 66,765 50,171
Amortization ....................................................... 0 11,184
Deferred income taxes (benefit) .................................... 66,184 (330,008)
Provision for loan losses .......................................... 30,450 1,344,315
Securities (accretion) amortization ................................ (8,881) (25,171)
Change in assets and liabilities:
(Increase) Decrease in accrued interest receivable ................. 222,667 (120,172)
Increase (Decrease) in accrued interest payable ................... (148,055) (105,573)
(Increase) Decrease in other assets ................................ (124,457) (105,166)
Increase (Decrease) in other liabilities ........................... (8,823) 46,420
(Increase) Decrease in income taxes receivable ..................... 187,615 0
Increase (Decrease) in income taxes payable ........................ 0 (55,195)
------------- ----------
Net cash provided (used) by operating activities ..................... 388,100 69,191
------------- ----------
Cash Flows From Investing Activities:
Capital expenditures ............................................... (73,926) (20,819)
Net (increase) decrease in loans ................................... 560,523 (528,645)
Proceeds from maturity of available-for-sale securities ............ 1,750,000 3,490,000
Purchase of available-for-sale securities .......................... (4,542,848) (3,185,792)
Payments received on mortgage-backed securities .................... 23,439 37,003
------------- ----------
Net cash provided (used) by operating activities ..................... (2,282,812) (208,253)
------------- ----------
Cash Flows From Investing Activities:
Increase (Decrease) in time deposits ............................... (2,188,199) (19,011)
Increase (Decrease) in other deposits .............................. (3,543,158) (3,252,566)
Proceeds from advances from Federal Home Loan Bank ................. 0 2,000,000
Repayment of advances from Federal Home Loan Bank .................. (1,405,000) (55,000)
------------ ----------
Net cash provided (used) by financing activities ..................... (7,136,357) (1,326,577)
------------ ----------
Net increase (decrease) in cash and cash equivalents .................... (9,031,069) (1,465,639)
Cash and Cash Equivalents at Beginning of Year .......................... 12,166,622 11,254,011
------------ -----------
Cash and Cash Equivalents at End of Year ................................ $ 3,135,553 $ 9,788,372
============ ===========
Supplemental Disclosures of Cash Flow Information Cash paid (received)during the
year for:
Interest ............................................................. 978,901 1,094,943
Income taxes ......................................................... (187,615) 99,435
Schedule of Non-Cash Investing and Financing Activities
Total increase (decrease) in unrealized (losses) gains on
Securities available-for-sale ........................................ 7,638 23,742
PAGE 6
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB. 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 adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the six months ended June 30, 1997 are not necessarily indicative of
the results that may be expected for the year ending December 31, 1997. For
further information, refer to the consolidated financial statements and
footnotes there to included in the Company's annual report to stockholders for
the year ended December 31, 1996.
PAGE 7
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation
Results of Operations
The Company, including the operations of its subsidiary, reported a consolidated
net income of $104,635 for the six months ended June 30, 1997 compared to
($641,614) loss for the six months ended June 30, 1996. Net interest income
after provision for loan losses was $716,924 and ($413,241) for the six months
ended June 30, 1997 and 1996, respectively. The provision for loan losses was
$30,450 and $1,344,315 for the six months ended June 30, 1997 and 1996,
respectively. Non-interest income totaled $218,247 and $232,345 for the six
months ended June 30, 1997 and 1996, respectively. Non-interest expenses totaled
$774,552 and $790,007 for the six months ended June 30, 1997 and 1996,
respectively.
The following table summarizes the results of operations of the Company for the
six month periods ended June 30, 1997 and 1996.
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
1997 1996
(IN THOUSANDS)
<S> <C> <C>
Interest income ................................ $ 1,578 $ 1,920
Interest expense ............................... (831) (989)
--------- ---------
Net interest income ............................ 747 931
Provision for loan losses ...................... (30) (1,344)
Noninterest income ............................. 218 232
Noninterest expense ............................ (775) (790)
--------- ---------
Income (loss) before taxes ..................... 161 (971)
Income (taxes) benefit ......................... (56) 329
--------- ---------
Net income (loss) .............................. $ 105 $ (641)
========= =========
Interest Income
Total interest income decreased approximately $342,000 for the six months ended
June 30, 1997 compared to the six months ended June 30, 1996.
This decrease was from the effect of a decrease in the average loan portfolio
balance from approximately $32.5 million for the six months ended June 30, 1996
to approximately $25.3 million for the six months ended June 30, 1997. The
effect of this change decreased the interest income earned on the loan portfolio
from approximately $1,654,000 for the six months ended June 30, 1996 to
approximately $1,193,000 for the six months ended June 30, 1997, a decrease of
$461,000. Interest income on the loan portfolio decreased from approximately
$827,000 for the quarter ended June 30, 1996 to approximately $597,000 for the
quarter ended June 30, 1997, a decrease of $230,000.
Interest earned on taxable investment securities increased from approximately
$137,000 for the six months ended June 30, 1996 to approximately $271,000 for
the six months ended June 30, 1997, an increase of $134,000. This increase was
the combined effect of an increase in the average taxable investment portfolio
balance from approximately $4.8 million for the six months ended June 30, 1996
to approximately $8.8 million for the six months ended June 30, 1997 and an
increase in the average rate earned on the taxable investment securities
portfolio from 5.64% for the six months ended June 30, 1996 to 6.14% for the six
months ended June 30, 1997. Interest income on the taxable investment portfolio
increased from approximately $70,000 for the quarter ended June 30, 1996 to
approximately $149,000 for the quarter ended June 30, 1997, an increase of
$79,000.
PAGE 8
<PAGE>
Interest earned on federal funds sold decreased from approximately $130,000 for
the six months ended June 30, 1996 to approximately $115,000 for the six months
ended June 30, 1997, a decrease of $15,000. This decrease was the net effect of
a decrease in the average federal funds sold balance from approximately $5.2
million for the six months ended June 30, 1996 to approximately $4.2 million for
the six months ended June 30, 1997 and an increase in the rate earned on the
federal funds sold from 4.80% for the six months ended June 30, 1996 to
approximately 5.46% for the six months ended June 30, 1997. Interest income on
federal funds sold decreased from approximately $75,000 for the quarter ended
June 30, 1996 to approximately $57,000 for the quarter ended June 30, 1997, a
decrease of $18,000.
Interest Expense
Total interest expense decreased approximately $158,000 for the six months ended
June 30, 1997 compared to the six months ended June 30, 1996. This decrease is
attributed to the factors explained in the folllowing information.
This decrease was the combined effect of a decrease in the average balance of
interest-bearing deposits from approximately $35.3 million for the six months
ended June 30, 1996 to approximately $30.8 for the six months ended June 30,
1997 and a decrease in the average rate paid on interest-bearing deposits from
5.24% for the six months ended June 30, 1996 to 4.98% for the six months ended
June 30, 1997. Interest expense on interest-bearing deposits decreased from
approximately $458,000 for the quarter ended June 30, 1996 to approximately
$377,000 for the quarter ended June 30, 1997, a decrease of $81,000.
At June 30, 1997, that Bank had outstanding advances from the Federal Home Loan
Bank of $1,080,000 at an average rate of 5.52%. Interest expense incurred for
the six months ended June 30, 1997 totaled approximately $44,000 and
approximately $65,000 for the six months ended June 30, 1996.
The Company also had interest expense during the six months ended June 30, 1997
of approximately $19,000 on notes payable to directors in the amount of
$500,000. The rate of interest is prime less 1% which resulted in a rate during
the period of 7.5%. During 1996, the Company made a capital contribution to the
Bank in the amount of $1 million and the loans from directors were to partially
fund this additional capital contribution.
Noninterest Income
The following table presents the principal components of noninterest income for
the three and six month periods ended June 30, 1997 and 1996.
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
1997 1996 1997 1996
--------- --------- -------- -------
<S> <C> <C> <C> <C>
Service charges on deposit accounts ........$ 78 $ 92 $ 159 $ 180
Mortgage origination income ................ 2 6 6 9
Other operating income ..................... 27 22 53 43
-------- --------- -------- -------
Total noninterest income ..........$ 107 $ 120 $ 218 $ 232
======== ========= ======== =======
Service charges on deposit accounts for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996, decreased approximately $14,000.
This decrease was related primarily to a decrease in NSF fees and transaction
deposit account activity. All other income totaled approximately $53,000 and
$43,000 for the six months ended June 30, 1997 and 1996, respectively.
PAGE 9
<PAGE>
Noninterest Expenses
The following table presents the principal components of noninterest expenses
for the three and six month periods ended June 30, 1997 and 1996.
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
1997 1996 1997 1996
------ ------ ------ ------
<S> <C> <C> <C> <C>
Salaries and employee benefits .............$ 190 $ 246 $ 386 $ 435
Equipment expenses ......................... 34 25 65 48
Occupancy expenses ......................... 24 26 45 53
Advertising ................................ 12 8 20 15
Data processing ............................ 15 15 30 33
Printing and office supplies ............... 11 20 25 33
Amortization ............................... 0 6 0 11
Other operating expenses ................... 102 82 204 162
------ ------- ------ ------
Total noninterest expense .........$ 388 $ 428 $ 775 $ 790
====== ======= ====== ======
Noninterest expenses for the six months ended June 30, 1997 as compared to the
six months ended June 30, 1996, decreased approximately $15,000. Salaries and
employee benefits decreased approximately $49,000 for the six months ended June
30, 1997 as compared to the six months ended June 30,1996. This decrease
reflects decreases in the number of employees, in wage levels, and in the cost
of employee benefits. All other expenses increased approximately $42,000 for the
six months ended June 30, 1997 compared to the six months ended June 30, 1996.
This increase is primarily attributable to an increase in auditing expenses
associated with loan review, which accounted for $29,000 of the increase.
Provision for Loan Losses
The provision for loan losses for the six months ended June 30, 1997 was
approximately $30,000 compared to approximately $1,344,000 for the six months
ended June 30, 1996. The balance of the allowance for loan losses was
approximately $1,130,000 (approximately 4.3% of outstanding loans) at June 30,
1997 and approximately $1,501,000 (approximately 4.7% of outstanding loans) at
June 30, 1996. Actual loan charge-offs net of recoveries were approximately
$421,000 for the six months ended June 30, 1997 and approximately $229,000 for
the six months ended June 30, 1996. Non-accrual loans were approximately
$1,459,000 at June 30, 1997. In determining an adequate level of loan loss
reserve, such loans were included in such consideration.
The amount of the provision for loan losses is a result of the amount of loans
charged off, the amount of loans recovered and management's conclusion
concerning the level of the allowance for loan losses. The level of the
allowance for loan losses is based upon a number of factors including the Bank's
past loan loss experience, management's evaluation of the collectibility of
loans, the general state of the economy and other relevant factors.
For a further discussion concerning loans and the allowance for loan losses,
refer to "financial condition".
Income Taxes
The provision for income taxes reflected an effective rate of 34% for the six
months ended June 30, 1997. A tax credit was accrued for the six months ended
June 30, 1996 based upon the loss incurred of approximately $971,000 before
taxes.
PAGE 10
<PAGE>
Financial Condition
The company including its subsidiary bank, reported consolidated total assets of
approximately $42 million at June 30, 1997 and approximately $49.1 million at
December 31, 1996. Representing a decrease of approximately $7.1 million. During
the six months ended June 30, 1997, cash and due from banks decreased $2.3
million, operations generated $.4 million, loans decreased by $.6 million, while
federal funds sold decreased by $6.7 million providing $10 million of funds
available which were used to reduce deposits by $5.8 million, reduce Federal
Home Loan Bank advances by $1.4 million, and increase investments by $2.8
million.
The reduction in total assets of approximately $7.2 million during the six
months ended June 30, 1997, included the reduction in loans of approximately
$.6. The reduction in loans was due to the charge-off of approximately $.5
million during the six months ended June 30, 1997 and the overall reduction in
the loan portfolio resulting from payments and the strengthening of underwriting
standards and procedures commenced in 1996. Approximately mid-year 1996, an
internal loan review was performed by the new senior lending officer which
concluded that the underwriting procedures were inadequate. For the year ended
December 31, 1996, the Bank had loan charge-off's of approximately $1.4 million,
many due to bankruptcies. Additionally, the reduction in assets was for the
purpose of managing the capital requirements of the Bank for which the Company
increased the capital by $1 million during the year ended December 31, 1996. The
Company continues its on-going loan review procedures, continues to operate
under its more stringent underwriting standards and has hired a new bank
president.
The Company's subsidiary Bank is required to maintain minimum amounts of capital
to total "risk-weighted" assets, as defined by the banking regulators. At June
30, 1997, a comparison of the minimum required and actual capital ratios are as
follows:
<CAPTION>
To Be Well
For Capital Capitalized Under
Adequacy Prompt Corrective
Actual Purposes Action Provisions
Amount Ratio Amount Ratio Amount Ratio
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C>
As of June 30, 1997
Total Capital
(to Risk Weighted Assets) ....$3,709 12.98% $2,284 8% $2,857 10%
Tier 1 Capital
(to Risk Weighted Assets) ....$3,352 11.73% $1,142 4% $1,714 6%
Tier 1 Capital
(to Average Assets) ......... $3,352 8.00% $1,676 4% $2,096 5%
Liquidity and Capital Resources
Liquidity management involves the matching of the cash flow requirements of
customers, either depositors withdrawing funds or funding additional loans, and
the ability of the Bank to meet those requirements. Management monitors and
maintains appropriate levels of assets and liabilities so that maturities of
assets are such that adequate funds are provided to meet estimated customer
withdrawals and loan requests.
PAGE 11
<PAGE>
The Bank's liquidity position depends primarily upon the liquidity of its assets
relative to its need to respond to short-term demand for funds caused by
withdrawals from deposit accounts and loan funding commitments. Primary sources
of liquidity are scheduled payments on its loans and interest on the Bank's
investments. The Bank may also utilize its cash and due from banks, short-term
deposits with financial institutions, federal funds sold and investment
securities to meet liquidity requirements. At June 30, 1997, the Company's cash
and due from banks were approximately $2.6 million and its federal funds sold
were approximately $.5 million. All of the above can be converted to cash on
short notice. The sale of investments which had a market value of approximately
$10.6 million at June 30, 1997 can also be used to meet liquidity requirements
to the extent the investments are not pledged. At June 30, 1997, the market
value of pledged securities was $4.0 million.
The Bank also has the ability, on a short-term basis, to borrow and purchase
federal funds from other financial institutions.
The Bank is a member of the Federal Home Loan Bank of Atlanta and as such has
the ability to secure advances therefrom, although the cost of such advances
exceed lower cost alternatives such as deposits from the local community. The
Bank had advances outstanding of $1,080,000 at June 30, 1997, at an average rate
of 5.52%.
PAGE 12
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(A) Exhibits:
Exhibit No.
27.1 Financial Data Schedule
(B) Reports on Form 8-K:
The Company did not file any reports on Form 8-K during the quarter ended
June 30, 1997.
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
FNC BANCORP, INC.
(Registrant)
Date August 14, 1997 By/s/ Bob Cation
Bob Cation
Chairman
PAGE 13
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 2,612,553
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 523,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 10,612,457
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 26,364,052
<ALLOWANCE> 1,129,767
<TOTAL-ASSETS> 42,001,651
<DEPOSITS> 36,813,244
<SHORT-TERM> 0
<LIABILITIES-OTHER> 565,159
<LONG-TERM> 1,580,000
0
0
<COMMON> 405,710
<OTHER-SE> 2,637,538
<TOTAL-LIABILITIES-AND-EQUITY> 42,001,651
<INTEREST-LOAN> 1,195,685
<INTEREST-INVEST> 270,754
<INTEREST-OTHER> 114,781
<INTEREST-TOTAL> 1,578,220
<INTEREST-DEPOSIT> 767,131
<INTEREST-EXPENSE> 830,846
<INTEREST-INCOME-NET> 747,374
<LOAN-LOSSES> 30,450
<SECURITIES-GAINS> 128
<EXPENSE-OTHER> 773,552
<INCOME-PRETAX> 160,619
<INCOME-PRE-EXTRAORDINARY> 104,635
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 104,635
<EPS-PRIMARY> .26
<EPS-DILUTED> .26
<YIELD-ACTUAL> 0
<LOANS-NON> 0
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<RECOVERIES> 0
<ALLOWANCE-CLOSE> 0
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
