UNITED STATES
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 September 30, 1998
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
September 30, 1998 was 411,173 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 - September 30, 1998
(Unaudited) and December 31, 1997 ............................. 3
Consolidated Statements of Income (Unaudited) - Nine
Month Periods Ended September 30, 1998 and 1997 ............... 4
Consolidated Statements of Stockholders' Equity (Unaudited) -
Nine Month Periods Ended September 30, 1998 and 1997 .......... 5
Consolidated Statements of Cash Flows (Unaudited) - Nine
Month Periods Ended September 30, 1998 and 1997 ............... 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>
SEPTEMBER 30, DECEMBER 31,
1998 1997
------------- ------------
Assets (UNAUDITED)
<S> <C> <C>
Cash and due from banks ............................................... $ 2,724,581 $ 4,924,600
Federal funds sold .................................................... 4,296,000 34,000
Securities available-for-sale ......................................... 4,257,368 6,499,422
Loans ................................................................. 37,636,410 31,679,747
Less allowance for loan losses ........................................ 1,274,470 1,159,173
------------ ------------
Loans, net ............................................................ 36,361,940 30,520,574
Premises and equipment ................................................ 1,615,277 1,655,030
Other assets .......................................................... 851,370 1,169,108
------------ ------------
Total assets ................................................. $ 50,106,536 $ 44,802,734
============ ============
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing demand ....................................... $ 8,601,365 $ 7,708,349
Interest-bearing demand .......................................... 7,599,999 6,819,767
Savings .......................................................... 2,046,013 1,832,359
Time, $100,000 and over .......................................... 8,024,786 6,116,839
Other time ....................................................... 18,667,844 16,570,685
------------ ------------
Total deposits ............................................... 44,940,007 39,047,999
Notes payable to directors ............................................ 500,000 500,000
Federal funds purchased ............................................... 0 430,000
Advances from Federal Home Loan Bank .................................. 70,000 1,075,000
Other ................................................................. 815,614 466,537
------------ ------------
Total liabilities ............................................ 46,325,621 41,519,536
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, 411,173 shares issued and
Outstanding .................................................. 411,173 405,710
Capital surplus .................................................. 3,659,708 3,610,541
Retained deficit ................................................. (304,966) (743,019)
Unrealized gains on available-for-sale securities,
Net of applicable deferred income taxes ...................... 15,000 9,966
------------ ------------
Total stockholders' equity ................................... 3,780,915 3,283,198
------------ ------------
Total liabilities and stockholders equity .................... $ 50,106,536 $ 44,802,734
============ ============
PAGE 3
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Interest income
Loans ............................. $ 923,870 $ 686,096 $2,626,220 $1,873,984
Taxable securities ................ 67,533 138,515 226,097 409,269
Federal funds sold ................ 54,882 7,880 121,137 122,661
---------- ---------- ---------- ----------
Total interest income ............. 1,046,285 832,491 2,973,454 2,405,914
Interest expense
Deposits .......................... 441,925 357,365 1,228,615 1,124,496
Federal funds purchased ........... 0 3,600 2,282 4,121
Advances from FHLB ................ 1,233 26,460 19,009 70,863
Stockholder loan .................. 9,688 10,064 28,438 28,855
---------- ---------- ---------- ----------
Total interest expense ............ 452,846 397,489 1,278,344 1,228,335
Net interest income ............... 593,439 435,002 1,695,110 1,177,579
Provision for loan losses .............. 0 0 0 30,450
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses .. 593,439 435,002 1,695,110 1,147,129
Other income
Service charges on
deposit accounts ............... 124,945 100,056 324,741 275,246
Insurance commissions ............. 7,466 0 18,785 11,139
Mortgage origination income ....... 10,410 3,681 37,390 9,773
Gain (loss) on sale of securities . 0 772 0 900
Other operating income ............ 23,651 14,833 58,918 51,061
---------- ---------- ---------- ----------
Total other income ................ 166,472 119,342 439,834 348,119
Other expenses
Salaries and employee benefits .... 266,538 220,823 758,182 607,305
Equipment expenses ................ 44,996 36,690 116,190 101,258
Occupancy expenses ................ 30,733 22,247 75,535 67,517
Advertising ....................... 12,175 8,869 25,992 28,420
Data Processing ................... 28,071 15,326 73,511 45,644
Printing and office supplies ...... 14,636 16,370 52,548 41,062
Audit and accounting .............. 17,000 26,568 68,012 68,285
Other operating expenses .......... 94,933 73,590 280,821 235,544
---------- ---------- ---------- ----------
Total other expenses .......... 509,082 420,483 1,450,791 1,195,035
Income (loss) before income
taxes (benefits) .............. 250,829 133,861 684,153 300,213
Income tax expense (benefit) ........... 99,000 46,500 246,100 102,484
----------- ---------- ---------- ----------
Net income (loss) .............$ 151,829 $ 87,361 $ 438,053 $ 197,729
=========== ========== ========== ==========
Earnings (loss) per common and common
equivalent share .............. .37 .22 1.07 .49
=== === ==== ===
PAGE 4
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FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
<CAPTION>
UNREALIZED
GAINS 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, 1996 ........... 405,710 $405,710 $3,610,541 $(1,084,329) $ 1,650 $2,933,572
Net income (loss) ........... 0 0 0 197,729 0 197,729
Net change in unrealized
losses on securities
available-for-sale,
net of tax ............... 0 0 0 0 492 492
------- -------- ---------- ----------- -------- ----------
Balance,
September 30, 1997
(unaudited) ................. 405,710 $405,710 $3,610,541 $ (886,600) $ 2,142 $3,131,793
======= ======== ========== =========== ======== ==========
Balance,
December 31, 1997 ........... 405,710 $405,710 $3,610,541 $ (743,019) $ 9,966 $3,283,198
Net income (loss) ........... 0 0 0 438,053 0 438,053
Stock options exercised ..... 5,463 5,463 49,167 0 0 54,630
Net change in unrealized
losses on securities
available-for-sale,
net of tax ............... 0 0 0 0 5,034 5,034
------- -------- ---------- ----------- -------- ----------
Balance,
September 30, 1998
(unaudited) ................. 411,173 $411,173 $3,659,708 $ (304,966) $ 15,000 $3,780,915
======= ======== ========== =========== ======== ==========
PAGE 5
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
1998 1997
----------- -----------
<S> <C> <C>
Operating Activities:
Net Income (Loss) ................................................... $ 438,053 $ 197,729
Adjustments to reconcile net income or loss to net cash
provided by operating activities:
Depreciation ...................................................... 99,777 100,420
Provision for loan losses ......................................... 0 30,450
Provision for deferred income taxes ............................... 246,100 116,284
Net realized gains on securities available for sale ............... 0 (900)
Securities (accretion) amortization ............................... 428 (16,731)
Change in assets and liabilities:
(Increase) Decrease in accrued interest receivable ................ (13,103) 173,142
Increase (Decrease) in accrued interest payable .................. (12,871) (80,994)
(Increase) Decrease in other assets ............................... 84,741 (83,015)
Increase (Decrease) in other liabilities .......................... 361,948 (65,207)
(Increase) Decrease in income taxes receivable .................... 0 187,615
---------- -----------
Net cash provided (used) by operating activities .................... 1,205,073 558,793
Investing Activities:
Proceeds from maturity of available-for-sale securities ........... 3,496,660 4,250,000
Purchase of available-for-sale securities ......................... (1,250,000) (3,541,244)
Proceeds received from sale of mortgage-backed securities ......... 0 121,104
Payments received on mortgage-backed securities ................... 0 31,381
(Increase) decrease in Federal funds sold ......................... (4,262,000) 5,575,000
Increase (decrease) in Federal funds purchased .................... (430,000) 0
(Increase) decrease in loans, net .................................. (5,841,366) (2,696,627)
Purchase of premises and equipment ................................. (60,024) (80,644)
---------- -----------
Net cash provided (used) by operating activities .................... (8,346,730) 3,658,970
Financing Activities:
Increase (Decrease) in time deposits .............................. 4,005,106 (2,303,466)
Increase (Decrease) in other deposits ............................. 1,886,902 (2,459,248)
Proceeds from advances from Federal Home Loan Bank ................ 0 1,000,000
Repayment of advances from Federal Home Loan Bank ................. (1,005,000) (1,405,000)
Proceeds from issuance of common stock ............................ 54,630 0
---------- ----------
Net cash provided (used) by financing activities .................... 4,941,638 (5,167,714)
Net increase (decrease) in cash and cash equivalents ................... (2,200,019) (949,951)
Cash and Cash Equivalents at Beginning of Year ......................... 4,924,600 4,917,622
---------- ----------
Cash and Cash Equivalents at End of Year ............................... $2,724,581 $3,967,671
========== ==========
Supplemental Disclosures of Cash Flow Information Cash paid (received)during the
year for:
Interest $1,291,215 $1,309,329
Income taxes 0 (187,615)
Schedule of Non-Cash Investing and Financing Activities
Total increase (decrease) in unrealized (losses) gains on
Securities available-for-sale 5,034 492
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 nine months ended September 30, 1998 are not necessarily
indicative of the results that may be expected for the year ending December 31,
1998. 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, 1997.
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 $438,053 for the nine months ended September 30, 1998 compared to
$197,729 for the nine months ended September 30, 1997. Net interest income after
provision for loan losses was $1,695,110 and $1,147,129 for the nine months
ended September 30, 1998 and 1997, respectively. The provision for loan losses
was $0 and $30,450 for the nine months ended September 30, 1998 and 1997,
respectively. Non-interest income totaled $439,834 and $348,119 for the nine
months ended September 30, 1998 and 1997, respectively. Non-interest expenses
totaled $1,450,791 and $1,195,035 for the nine months ended September 30, 1998
and 1997, respectively.
The following table summarizes the results of operations of the Company for the
nine month period ended September 30, 1998 and 1997.
NINE MONTHS ENDED
SEPTEMBER 30,
1998 1997
------- -------
(IN THOUSANDS)
<S> <C> <C>
Interest income .................................................. $ 2,973 $ 2,406
Interest expense ................................................. (1,278) (1,229)
Net interest income .............................................. 1,695 1,177
Provision for loan losses ........................................ (0) (30)
Noninterest income ............................................... 440 348
Noninterest expense .............................................. (1,451) (1,195)
Income (loss) before taxes ....................................... 684 300
Income (taxes) benefit ........................................... (246) (102)
------- -------
Net income (loss) ................................................ $ 438 $ 198
======= =======
Interest Income
Total interest income increased approximately $518,000 for the nine months ended
September 30, 1998 compared to the nine months ended September 30, 1997.
This increase was from the effect of a increase in the average loan portfolio
balance from approximately $26.4 million for the nine months ended September 30,
1997 to approximately $34.4 million for the nine months ended September 30,
1998. The effect of this change increased interest income earned on the loan
portfolio from approximately $1,874,000 for the nine months ended September 30,
1997 to approximately $2,626,000 for the nine months ended September 30, 1998,
an increase of $752,000.
Interest earned on taxable investment securities decreased from approximately
$409,000 for the nine months ended September 30, 1997 to approximately $226,000
for the nine months ended September 30, 1998, a decrease of $183,000. This
decrease was from the effect of a decrease in the average taxable investment
portfolio balance from approximately $8.8 million for the nine months ended
September 30, 1997 to approximately $5.0 million for the nine months ended
September 30, 1998.
PAGE 8
<PAGE>
Interest earned on federal funds sold was virtually unchanged from approximately
$123,000 for the nine months ended September 30, 1997 to approximately $121,000
for the nine months ended September 30, 1998, a decrease of $2,000.
Interest Expense
Total interest expense increased approximately $50,000 for the nine months ended
September 30, 1998 compared to the nine months ended September 30, 1997. This
increase is attributed to the factors explained in the following information.
This increase was the effect of an increase in the average balances of
interest-bearing deposits from $30,200,000 for the nine months ended September
30, 1997 to approximately $33,221,000 for the nine months ended September 30,
1998. Interest expense on interest-bearing deposits increased from approximately
$1,129,000 for the nine months ended September 30, 1997 to approximately
$1,231,000 for the nine months ended September 30, 1998, an increase of
$102,000.
At September 30, 1998, the Bank had advances from the Federal Home Loan Bank of
$70,000 at an average rate of 6.99%. Interest expense incurred for the nine
months ended September 30, 1998 totaled approximately $18,000 and approximately
$44,000 for the nine months ended September 30, 1997.
The Company also had interest expense during the nine months ended September 30,
1998 of approximately $28,000 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 nine month periods ended September 30, 1998 and 1997.
NINE MONTHS ENDED
SEPTEMBER 30,
1998 1997
------- -------
<S> <C> <C>
Service charges on deposit accounts .................... $ 325 $ 275
Insurance Commissions .................................. 19 11
Mortgage origination income ............................ 37 10
Gain (loss) on sale of securities ...................... 0 1
Other operating income ................................. 59 51
------- -------
Total noninterest income ...................... $ 440 $ 348
======= =======
PAGE 9
<PAGE>
Service charges on deposit accounts for the nine months ended September 30, 1998
as compared to the nine months ended September 30, 1997, increased approximately
$92,000. This increase was related primarily to a increase in NSF fees and
transaction deposit account activity. All other income totaled approximately
$115,000 and $73,000 for the nine months ended September 30, 1998 and 1997,
respectively.
Noninterest Expenses
The following table presents the principal components of noninterest expenses
for the nine month periods ended September 30, 1998 and 1997.
NINE MONTHS ENDED
SEPTEMBER 30,
1998 1997
------- -------
<S> <C> <C>
Salaries and employee benefits ...................... $ 758 $ 607
Equipment expenses .................................. 116 101
Occupancy expenses .................................. 76 68
Advertising ......................................... 26 28
Data processing ..................................... 74 46
Printing and office supplies ........................ 52 41
Audit and accounting ................................ 68 68
Other operating expenses ............................ 281 236
------- -------
Total noninterest expense .................. $ 1,451 $ 1,195
======= =======
Noninterest expenses for the nine months ended September 30, 1998 as compared to
the nine months ended September 30, 1997, increased approximately $256,000.
Salaries and employee benefits increased approximately $151,000 for the nine
months ended September 30, 1998 as compared to the nine months ended September
30,1997. This increase reflects increases in the number of employees, in wage
levels, and in the cost of employee benefits. All other expenses increased
approximately $105,000 for the nine months ended September 30, 1998 compared to
the nine months ended September 30, 1997. This increase is primarily
attributable to an increase in data processing expenses, printing and office
supplies, and other operating expenses which together accounted for over $84,000
of the increase.
Provision for Loan Losses
The provision for loan losses for the nine months ended September 30, 1998 was
$0 compared to approximately $30,000 for the nine months ended September 30,
1997. The balance of the allowance for loan losses was approximately $1,274,000
(approximately 3.39% of outstanding loans) at September 30, 1998 and
approximately $1,092,000 (approximately 3.7% of outstanding loans) at September
30, 1997. Actual loan charge-offs net of recoveries were approximately
($115,000) for the nine months ended September 30, 1998 and approximately
$429,000 for the nine months ended September 30, 1997. Non-accrual loans were
approximately $498,000 at September 30, 1998. 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".
PAGE 10
<PAGE>
Income Taxes
The provision for income taxes reflected an effective rate of 34% for the nine
months ended September 30, 1998. A tax credit was accrued for the year ending
December 31, 1996 based upon the loss incurred of approximately $1,737,000
before taxes.
Financial Condition
The company including its subsidiary bank, reported consolidated total assets of
approximately $50.1 million at September 30, 1998 and approximately $44.8
million at December 31, 1997. Representing an increase of approximately $5.3
million. During the nine months ended September 30, 1998, cash and due from
banks decreased $2.2 million, operations generated $1.2 million, deposits
increased by $5.9 million, available-for-sale securities decreased $2.2 million,
providing $11.5 million of funds available which were used to increase Federal
funds sold by $4.3 million, reduce Federal funds sold $.4 million, reduce FHLB
borrowings by $1 million and increase loans by $5.8 million.
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. The Bank had a
reduction in assets partly 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 more stringent underwriting standards and
has a bank president who has been at the bank for more than a year now.
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
September 30, 1998, a comparison of the minimum required, and actual capital
ratios are as follows:
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 September 30, 1998
Total Capital
(to Risk Weighted Assets) ... $4,674 12.47% $3,000 8% $3,750 10%
Tier 1 Capital
(to Risk Weighted Assets) ... $4,196 11.19% $1,500 4% $2,250 6%
(to Average Assets) ......... $4,196 8.38% $2,003 4% $2,503 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 September 30, 1998, the Company's
cash and due from banks were approximately $2.7 million and its federal funds
sold were approximately $4.3 million. All of the above can be converted to cash
on short notice. The sale of investments, which had a market value of
approximately $4.3 million at June 30, 1998, can also be used to meet liquidity
requirements, to the extent the investments are not pledged. At September 30,
1998, the market value of pledged securities was $2.8 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 $70,000 at September 30, 1998, at an average
rate of 6.99%.
Impact of the Year 2000
Based on recently completed assessments, the Bank has determined that it will be
required to modify, upgrade, and or replace some portions of its internal
software and hardware, so that its computer systems will properly utilize dates
beyond December 31, 1999. The Bank's main core software is a Kirchman Dimension
3000 product and has been externally tested and certified to be year 2000
compliant. As of September 30, 1998, the Bank has commenced its year 2000
remediation program, has secured substantially all required resources, and
expects to substantially complete its internal year 2000 efforts by March 31,
1999.
In addition, the Bank has contacted it critical suppliers and other entities to
determine the extent to which the Bank's interface systems are vulnerable to
those third parties' failure to remediate their own year 2000 issues. While the
Bank has not been informed of any material risks associated with these entities,
there is no guarantee that the systems of these critical suppliers or other
entities, including The Federal Reserve Bank, on which the Bank relies, will be
timely converted and will not have an adverse effect on the Bank's systems or
operations.
The Bank has expensed $20,000 of costs incurred to date related to the year 2000
issue. The total remaining cost of the year 2000 project is presently estimated
at $20,000, which will be expensed as incurred. The costs of the project and the
date on which the Bank believes it will complete the year 2000 modifications are
based on management's best estimates, which were derived utilizing numerous
assumptions of future events. However, there can be no guarantee that these
estimates will be achieved and actual results could differ materially from those
anticipated.
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
September 30, 1998.
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 November 14, 1998 By/s/ Jeffrey W. Johnson
----------------- ------------------------
Jeffrey W. Johnson
President/CEO
PAGE 13
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 2,724,581
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 4,296,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 4,257,368
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 37,636,410
<ALLOWANCE> 1,274,470
<TOTAL-ASSETS> 50,106,536
<DEPOSITS> 44,940,007
<SHORT-TERM> 70,000
<LIABILITIES-OTHER> 814,614
<LONG-TERM> 500,000
<COMMON> 411,173
0
0
<OTHER-SE> 3,369,742
<TOTAL-LIABILITIES-AND-EQUITY> 50,106,536
<INTEREST-LOAN> 2,626,220
<INTEREST-INVEST> 226,097
<INTEREST-OTHER> 121,137
<INTEREST-TOTAL> 2,973,454
<INTEREST-DEPOSIT> 1,228,615
<INTEREST-EXPENSE> 1,278,344
<INTEREST-INCOME-NET> 1,695,110
<LOAN-LOSSES> 0
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<EXPENSE-OTHER> 1,450,791
<INCOME-PRETAX> 684,153
<INCOME-PRE-EXTRAORDINARY> 438,053
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 438,053
<EPS-PRIMARY> 1.07
<EPS-DILUTED> 1.07
<YIELD-ACTUAL> 0
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
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<RECOVERIES> 0
<ALLOWANCE-CLOSE> 0
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
