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, 1999.
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, 1999 was 416,636 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, 1999
(Unaudited) and December 31, 1998 ................................. 3
Consolidated Statements of Income (Unaudited) - Nine
Month Periods Ended September 30, 1999 and 1998 ................... 4
Consolidated Statements of Stockholders' Equity (Unaudited) -
Nine Month Periods Ended September 30, 1999 and 1998 .............. 5
Consolidated Statements of Cash Flows (Unaudited) - Nine
Month Periods Ended September 30, 1999 and 1998 ................... 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,
1999 1998
------------- ------------
Assets (UNAUDITED)
<S> <C> <C>
Cash and due from banks ............................................... $ 4,017,458 $ 5,617,359
Federal funds sold .................................................... 2,537,000 5,966,000
Securities available-for-sale ......................................... 4,480,344 4,753,962
Securities held-to-maturity ........................................... 3,533,025 0
Loans ................................................................. 50,638,472 41,989,950
Less allowance for loan losses ........................................ 1,414,565 1,274,285
------------- -----------
Loans, net ................................................... 49,223,907 40,715,665
Premises and equipment ................................................ 1,612,551 1,613,025
Other assets .......................................................... 1,173,893 914,391
------------- -----------
Total assets ................................................. $ 66,578,178 $ 59,580,402
============= ============
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing demand ....................................... $ 10,786,437 $ 12,695,085
Interest-bearing demand .......................................... 12,722,675 11,707,125
Savings .......................................................... 2,206,630 1,973,434
Time, $100,000 and over .......................................... 11,525,958 9,252,893
Other time ....................................................... 23,004,652 18,671,816
------------- ------------
Total deposits ............................................... 60,246,352 54,300,353
Notes payable to directors ............................................ 500,000 500,000
Advances from Federal Home Loan Bank .................................. 60,000 65,000
Other ................................................................. 1,166,872 771,509
------------- ------------
Total liabilities ............................................ 61,973,224 55,636,862
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, 416,636 shares issued and
Outstanding .................................................. 416,636 411,173
Capital surplus .................................................. 3,708,875 3,659,708
Treasury Stock ................................................... (9,000) 0
Retained earnings (deficit) ...................................... 534,443 (141,341)
Unrealized gains on available-for-sale securities,
Net of applicable deferred income taxes ...................... (46,000) 14,000
------------- ------------
Total stockholders' equity ................................... 4,604,954 3,943,540
------------- ------------
Total liabilities and stockholders equity .................... $ 66,578,178 $ 59,580,402
============= ============
PAGE 3
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1999 1998 1999 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Interest income
Loans ......................... $1,213,395 $ 923,870 $3,431,755 $2,626,220
Taxable securities ............ 112,887 67,533 265,559 226,097
Federal funds sold ............ 55,584 54,882 179,373 121,137
---------- ---------- ---------- ----------
Total interest income ..... 1,381,866 1,046,285 3,876,687 2,973,454
Interest expense
Deposits ...................... 577,230 441,925 1,604,351 1,228,615
Federal funds purchased ....... 0 0 0 2,282
Advances from FHLB ............ 1,057 1,233 3,267 19,009
Stockholder loan .............. 9,069 9,688 26,038 28,438
---------- ---------- ---------- ----------
Total interest expense .... 587,356 452,846 1,633,656 1,278,344
Net interest income ....... 794,510 593,439 2,243,031 1,695,110
Provision for loan losses .......... 0 0 0 0
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses 794,510 593,439 2,243,031 1,695,110
Other income
Service charges on
deposit accounts ........... 135,408 124,945 375,306 324,741
Insurance commissions ......... 8,090 7,466 29,934 18,785
Mortgage origination income ... 2,074 10,410 30,099 37,390
Other operating income ........ 28,417 23,651 67,265 58,918
---------- ---------- ---------- ----------
Total other income ........ 173,989 166,472 502,604 439,834
Other expenses
Salaries and employee benefits 313,916 266,538 949,559 758,182
Equipment expenses ............ 41,356 44,996 122,523 116,190
Occupancy expenses ............ 27,816 30,733 82,812 75,535
Advertising ................... 10,102 12,175 33,708 25,992
Audit and Accounting .......... 18,000 17,000 50,239 68,012
Data Processing ............... 21,740 28,071 65,221 73,511
Printing and office supplies .. 25,502 14,636 51,070 52,548
Other operating income ........ 142,399 94,933 325,719 280,821
---------- ---------- ---------- ----------
Total other expenses ...... 600,831 509,082 1,680,851 1,450,791
Income before income taxes . 367,668 250,829 1,064,784 684,153
Income tax expense ................. 132,200 99,000 389,000 246,100
---------- ---------- ---------- ----------
Net income ................ $ 235,468 $ 151,829 $ 675,784 $ 438,053
========== ========== ========== ==========
Earnings per common and common
equivalent share .......... $ 0.57 $ 0.37 $ 1.62 $ 1.07
======= ======= ======= =======
PAGE 4
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
<CAPTION>
UNREALIZED
GAINS (LOSSES)
ON SECURITIES
COMMON STOCK ADDITIONAL RETAINED AVAILABLE-
NUMBER OF PAR PAID IN EARNINGS TREASURY FOR-SALE
SHARES VALUE CAPITAL (DEFICIT) STOCK NET OF TAX TOTAL
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance,
December 31, 1997 .. 405,710 $ 405,710 $3,610,541 $ (743,019) $ 0 $ 9,966 $3,283,198
Net income (loss) .. 0 0 0 438,053 0 0 438,053
Stock options
exercised ......... 5,463 5,463 49,167 0 0 0 54,630
Net change in unrealized
losses on securities
available-for-sale,
net of tax ...... 0 0 0 0 0 5,034 5,034
---------- ---------- ---------- ---------- ---------- ---------- ----------
Balance,
September 30, 1998
(unaudited) ........ 411,173 $ 411,173 $3,659,708 $ (304,966) $ 0 $ 15,000 $3,780,915
========== ========== ========== ========== ========== ========== ==========
Balance,
December 31, 1998 .. 411,173 $ 411,173 $3,659,708 $ (141,341) $ 0 $ 14,000 $3,943,540
Net income (loss) .. 0 0 0 675,784 0 0 675,784
Stock options
exercised ........ 5,463 5,463 49,167 0 0 0 54,630
Purchase 500 shares
of stock for the
treasury ........ 0 0 0 0 (9,000) 0 (9,000)
Net change in unrealized
losses on securities
available-for-sale,
net of tax ...... 0 0 0 0 0 (60,000) (60,000)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Balance,
September 30, 1999
(unaudited) ........ 416,636 $ 416,636 $3,708,875 $ 534,443 $ (9,000) $ (46,000) $4,604,954
========== ========== ========== ========== ========== ========== ==========
PAGE 5
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
1999 1998
---------- ----------
<S> <C> <C>
Operating Activities:
Net Income (Loss) ..................................................... $ 675,784 $ 438,053
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation ........................................................ 107,357 99,777
Provision for loan losses ........................................... 0 0
Provision for deferred income taxes ................................. 0 246,100
Change in assets and liabilities:
(Increase) Decrease in accrued interest receivable .................. (229,239) (13,103)
Increase (Decrease) in accrued interest payable .................... 59,983 (12,871)
Increase (Decrease) in income taxes payable ........................ 262,180 0
Other prepaids, deferrals and accruals, net ........................ 55,146 447,117
---------- ----------
Net cash provided (used) by operating activities ...................... 931,211 1,205,073
---------- ----------
Investing Activities:
Capital expenditures ................................................ (106,883) (60,024)
Net (increase) decrease in loans .................................... (8,508,242) (5,841,366)
Proceeds from maturity of available-for-sale securities ............. 3,159,700 3,496,660
Purchase of available-for-sale securities ........................... (2,968,429) (1,250,000)
Purchase of held-to-maturity securities ............................. (3,531,887) 0
(Increase) decrease in Federal funds sold ........................... 3,429,000 (4,262,000)
Increase (decrease) in Federal funds purchased ...................... 0 (430,000)
---------- ----------
Net cash provided (used) by investing activities ......................... (8,526,741) (8,346,730)
----------- -----------
Financing Activities:
Increase (Decrease) in time deposits ................................ 6,605,901 4,005,106
Increase (Decrease) in other deposits ............................... (659,902) 1,886,902
Repayment of advances from Federal Home Loan Bank ................... (5,000) (1,005,000)
Proceeds from issuance of common stock .............................. 54,630 54,630
---------- ----------
Net cash provided (used) by financing activities ...................... 5,995,629 4,941,638
---------- ----------
Net increase (decrease) in cash and cash equivalents ..................... (1,599,901) (2,200,019)
Cash and Cash Equivalents at Beginning of Year ........................... 5,617,359 4,924,600
---------- ----------
Cash and Cash Equivalents at End of Year ................................. $4,017,458 $2,724,581
========== ==========
Supplemental Disclosures of Cash Flow Information Cash paid (received)during the
year for:
Interest .............................................................. $1,573,673 $1,291,215
Income taxes .......................................................... $142,710 $0
Schedule of Non-Cash Investing and Financing Activities
Total increase (decrease) in unrealized (losses) gains on
Securities available-for-sale ......................................... $(60,000) $5,034
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, 1999 are not necessarily
indicative of the results that may be expected for the year ending December 31,
1999. 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, 1998.
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 $675,784 for the nine months ended September 30, 1999 compared to
$438,053 for the nine months ended September 30, 1998. Net interest income after
provision for loan losses was $2,243,031 and $1,695,110 for the nine months
ended September 30, 1999 and 1998, respectively. The provision for loan losses
was $0 for the nine months ended September 30, 1999 and 1998. Non-interest
income totaled $502,604 and $439,834 for the nine months ended September 30,
1999 and 1998, respectively. Non-interest expenses totaled $1,680,851 and
$1,450,791 for the nine months ended September 30, 1999 and 1998, respectively.
The following table summarizes the results of operations of the Company for the
nine month period ended September 30, 1999 and 1998.
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
1999 1998
-------- --------
(IN THOUSANDS)
<S> <C> <C>
Interest income ....................................................... $ 3,877 $ 2,973
Interest expense ...................................................... (1,634) (1,278)
-------- --------
Net interest income ................................................... 2,243 1,695
Provision for loan losses ............................................. (0) (0)
Noninterest income .................................................... 503 440
Noninterest expense ................................................... (1,681) (1,451)
-------- --------
Income before taxes ................................................... 1,065 684
Income taxes .......................................................... (389) (246)
-------- --------
Net income (loss) ..................................................... $ 676 $ 438
======== ========
Interest Income
Total interest income increased approximately $904,000 for the nine months ended
September 30, 1999 compared to the nine months ended September 30, 1998.
This increase was from the effect of a increase in the average loan portfolio
balance from approximately $34.4 million for the nine months ended September 30,
1998 to approximately $46.5 million for the nine months ended September 30,
1999. The effect of this change increased interest income earned on the loan
portfolio from approximately $2,626,000 for the nine months ended September 30,
1998 to approximately $3,342,000 for the nine months ended September 30, 1999,
an increase of $716,000.
Interest earned on taxable investment securities increased from approximately
$226,000 for the nine months ended September 30, 1998 to approximately $266,000
for the nine months ended September 30, 1999, an increase of $40,000. This
increase was from the effect of an increase in the average taxable investment
portfolio balance from approximately $5 million for the nine months ended
September 30, 1998 to approximately $6 million for the nine months ended
September 30, 1999.
PAGE 8
<PAGE>
Interest earned on federal funds sold increased from approximately $121,000 for
the nine months ended September 30, 1998 to approximately $179,000 for the nine
months ended September 30, 1999, an increase of $58,000. This increase was from
the effect of an increase in the average federal funds sold balance from
approximately $3 million for the nine months ended September 30, 1998 to
approximately $4.9 million for the nine months ended September 30, 1999.
Interest Expense
Total interest expense increased approximately $355,000 for the nine months
ended September 30, 1999 compared to the nine months ended September 30, 1998.
This increase is attributed to the factors explained in the following
information.
Interest expense on interest-bearing deposits increased from approximately
$1,229,000 for the nine months ended September 30, 1998 to approximately
$1,604,000 for the nine months ended September 30, 1999, an increase of
$355,000. This increase was from the effect of an increase in the average
balance of interest-bearing deposits from approximately $33.2 million for the
nine months ended September 30, 1998 to approximately $44.9 million for the nine
months ended September 30, 1999.
At September 30, 1999, the Bank had advances from the Federal Home Loan Bank of
$60,000 at an average rate of 6.99%. Interest expense incurred for the nine
months ended September 30, 1998 totaled approximately $19,000 and approximately
$3,000 for the nine months ended September 30, 1999.
The Company also had interest expense during the nine months ended September 30,
1999 of approximately $26,000 on notes payable to directors in the amount of
$500,000. The rate of interest is prime less 1% which resulted in an average
rate during the period of 6.93%. 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, 1999 and 1998.
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
1999 1998
------ ------
<S> <C> <C>
Service charges on deposit accounts ............................................. $ 376 $ 324
Insurance Commissions ........................................................... 30 19
Mortgage origination income ..................................................... 30 37
Gain (loss) on sale of securities ............................................... 0 0
Other operating income .......................................................... 67 59
------ ------
Total noninterest income ............................................... $ 503 $ 440
====== ======
Service charges on deposit accounts for the nine months ended September 30, 1999
as compared to the nine months ended September 30, 1998, increased approximately
$52,000. This increase was related primarily to a increase in NSF fees and
transaction deposit account activity. All other income totaled approximately
$127,000 and $115,000 for the nine months ended September 30, 1999 and 1998,
respectively.
PAGE 9
<PAGE>
Noninterest Expenses
The following table presents the principal components of noninterest expenses
for the nine month periods ended September 30, 1999 and 1998.
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
1999 1998
------ ------
<S> <C> <C>
Salaries and employee benefits .................................................. $ 949 $ 758
Equipment expenses .............................................................. 123 116
Occupancy expenses .............................................................. 83 76
Advertising ..................................................................... 34 26
Audit and accounting ............................................................ 50 68
Data processing ................................................................. 65 73
Printing and office supplies .................................................... 51 53
Other operating expenses ........................................................ 326 281
------ ------
Total noninterest expense .............................................. $1,681 $1,451
====== ======
Noninterest expenses for the nine months ended September 30, 1999 as compared to
the nine months ended September 30, 1998, increased approximately $230,000.
Salaries and employee benefits increased approximately $211,000 for the nine
months ended September 30, 1999 as compared to the nine months ended September
30,1998. This increase reflects increases in the number of employees, in wage
levels, and in the cost of employee benefits. All other expenses only increased
by approximately $19,000 for the nine months ended September 30, 1999 compared
to the nine months ended September 30, 1998. This increase is primarily
attributable to an increase in equipment and occupancy costs, as well as an
increase in advertising expenditures.
Provision for Loan Losses
The provision for loan losses for the nine months ended September 30, 1999 and
1998 was $0. The balance of the allowance for loan losses was approximately
$1,415,000 (approximately 2.79% of outstanding loans) at September 30, 1999 and
approximately $1,274,000 (approximately 3.03% of outstanding loans) at September
30, 1998. Actual net of recoveries of charged off loans were approximately
$140,000 for the nine months ended September 30, 1999 and approximately $115,000
for the nine months ended September 30, 1998. Non-accrual loans were
approximately $256,000 at September 30, 1999, compared to $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".
Income Taxes
The provision for income taxes reflected an effective rate of 36% for the nine
months ended September 30, 1999.
PAGE 10
<PAGE>
Financial Condition
The company including its subsidiary bank, reported consolidated total assets of
approximately $66.6 million at September 30, 1999 and approximately $59.6
million at December 31, 1998. Representing an increase of approximately $7
million. During the nine months ended September 30, 1999, cash and due from
banks decreased $1.6 million, operations generated $.9 million, deposits
increased by $5.9 million, Federal funds decreased by $3.4 million, and
securities available-for-sale decreased by $.3. This provided $12.1 million of
funds available which were used to increase held-to-maturity securities by $3.5
million, and increase loans by $8.6 million.
Approximately mid-year 1996, an internal loan review was performed by a then 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 two years 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, 1999, 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 September 30, 1999
Total Capital
(to Risk Weighted Assets) ... $5,662 12.08% $3,749 8% $4,687 10%
Tier 1 Capital
(to Risk Weighted Assets) ... $5,066 10.81% $1,875 4% $2,812 6%
Tier 1 Capital
(to Average Assets) ......... $5,066 7.61% $2,663 4% $3,328 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, 1999, the Company's
cash and due from banks were approximately $4 million and its federal funds sold
were approximately $2.5 million. All of the above can be converted to cash on
short notice. The sale of investments, which had a market value of approximately
$7.9 million at September 30, 1999, can also be used to meet liquidity
requirements, to the extent the investments are not pledged. At September 30,
1999, the market value of pledged securities was $3.3 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 $60,000 at September 30, 1999, at an average
rate of 6.99%.
Impact of the Year 2000
Based on past assessments, the Bank determined that it was 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 and internally tested and certified to be year 2000 compliant. As of
September 30, 1999, the Bank has substantially completed its year 2000
remediation program, has secured substantially all required resources and is
substantially complete in its internal year 2000 efforts.
In addition, the Bank has contacted its critical suppliers and other entities to
determine the extent to which the Bank's interface systems, power systems, and
communications 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 will be timely converted and will not have
an adverse effect on the Bank's systems or operations. The Bank has expensed
$28,000 of costs incurred to date related to the year 2000 issue. The total
remaining cost of the year 2000 project is presently estimated at less than
$5,000, which will be expensed as incurred.
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, 1999.
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 12, 1999 By/s/ Jeffrey W. Johnson
------------------ ------------------------
Jeffrey W. Johnson
President and CEO
PAGE 13
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 4,017,458
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 2,537,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 4,480,344
<INVESTMENTS-CARRYING> 3,533,025
<INVESTMENTS-MARKET> 0
<LOANS> 50,638,472
<ALLOWANCE> 1,414,565
<TOTAL-ASSETS> 66,578,178
<DEPOSITS> 60,246,352
<SHORT-TERM> 60,000
<LIABILITIES-OTHER> 1,166,872
<LONG-TERM> 500,000
<COMMON> 416,636
0
0
<OTHER-SE> 4,188,318
<TOTAL-LIABILITIES-AND-EQUITY> 66,578,178
<INTEREST-LOAN> 3,431,755
<INTEREST-INVEST> 265,559
<INTEREST-OTHER> 179,373
<INTEREST-TOTAL> 3,876,687
<INTEREST-DEPOSIT> 1,604,351
<INTEREST-EXPENSE> 1,633,656
<INTEREST-INCOME-NET> 2,243,031
<LOAN-LOSSES> 0
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<EXPENSE-OTHER> 1,680,851
<INCOME-PRETAX> 1,064,784
<INCOME-PRE-EXTRAORDINARY> 675,784
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 675,784
<EPS-BASIC> 1.62
<EPS-DILUTED> 1.62
<YIELD-ACTUAL> 0
<LOANS-NON> 0
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<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>
