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, 2000.
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, 2000 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, 2000
(Unaudited) and December 31, 1999 ................................ 3
Consolidated Statements of Income (Unaudited) - Three and Nine
Month Periods Ended September 30, 2000 and 1999 .................. 4
Consolidated Statements of Stockholders' Equity (Unaudited) -
Nine Month Periods Ended September 30, 2000 and 1999 ............. 6
Consolidated Statements of Cash Flows (Unaudited) - Nine
Month Periods Ended September 30, 2000 and 1999 .................. 7
Notes to Consolidated Financial Statements .......................... 8
Item 2. Management's Discussion and Analysis or Plan of Operation ........ 9
Part II - Other Information
Item 1. Legal Proceedings ................................................ 14
Item 2. Changes in Securities ............................................ 14
Item 3. Defaults Upon Senior Securities .................................. 14
Item 4. Submission of Matters to a Vote
of Security Holders ............................................ 14
Item 5. Other Information ................................................ 14
Item 6. Exhibits and Reports on Form 8-K ................................. 14
Signatures ................................................................... 14
PAGE 2
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------ -----------
Assets (UNAUDITED)
<S> <C> <C>
Cash and due from banks ............................................. $ 3,024,780 $ 3,394,212
Federal funds sold .................................................. 1,310,000 1,528,000
Securities available-for-sale, at fair value ........................ 3,483,659 3,479,190
Securities held-to-maturity, at cost ................................ 4,781,838 4,777,413
Loans ............................................................... 63,230,121 54,168,453
Less allowance for loan losses ...................................... 1,490,541 1,422,689
------------ -----------
Loans, net .......................................................... 61,739,580 52,745,764
Premises and equipment, net ......................................... 2,135,135 1,849,122
Other assets ........................................................ 1,707,998 1,079,603
------------ -----------
$ 78,182,990 $68,853,304
============ ===========
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing demand ..................................... $ 9,171,016 $11,090,409
Interest-bearing demand ........................................ 15,667,416 13,136,785
Savings ........................................................ 1,908,310 1,999,607
Time, $100,000 and over ........................................ 14,439,762 10,724,505
Other time ..................................................... 28,472,390 23,923,115
------------ -----------
Total deposits ............................................. 69,658,894 60,874,421
Federal funds purchased ............................................. - 1,250,000
Notes payable to directors .......................................... 500,000 500,000
Advances from Federal Home Loan Bank ................................ 1,050,000 55,000
Other ............................................................... 1,323,988 1,322,291
------------ -----------
Total liabilities .......................................... 72,532,882 64,001,712
------------ -----------
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 ................................................ 416,636 416,636
Capital surplus ................................................ 3,708,875 3,708,875
Retained earnings .............................................. 1,580,597 784,081
Accumulated other comprehensive income (loss) .................. (47,000) (49,000)
------------ ----------
5,659,108 4,860,592
Less cost of treasury stock, 500 shares ........................ 9,000 9,000
------------ ----------
Total stockholders' equity ................................. 5,650,108 4,851,592
------------ ----------
$ 78,182,990 $68,853,304
============ ===========
PAGE 3
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Interest Income
Interest and fees on loans ........... $1,620,768 $1,213,395 $4,498,864 $3,431,755
Interest on taxable securities ....... 120,741 112,887 362,686 265,559
Interest on nontaxable securities .... 3,190 - 9,583 -
Interest on Federal funds sold ....... 34,273 55,584 86,748 179,373
---------- ---------- ---------- ----------
1,778,972 1,381,866 4,957,881 3,876,687
---------- ---------- ---------- ----------
Interest expense
Interest on deposits ................. 795,362 577,230 2,098,561 1,604,351
Interest on other borrowings ......... 43,447 10,126 94,888 29,305
---------- ---------- ---------- ----------
838,809 587,356 2,193,449 1,633,656
---------- ---------- ---------- ----------
Net interest income .............. 940,163 794,510 2,764,432 2,243,031
Provision for loan losses ................. - - - -
---------- ---------- ---------- ----------
Net interest income
after provision for loan losses .. 940,163 794,510 2,764,432 2,243,031
Other income
Service charges on deposit accounts .. 167,177 135,408 439,729 375,306
Insurance commissions ................ 3,721 8,090 29,705 29,934
Origination fees on mortgage loans ... 6,128 2,074 8,528 30,099
Other ................................ 22,925 28,417 69,754 67,265
---------- ---------- ---------- ----------
199,951 173,989 547,716 502,604
---------- ---------- ---------- ----------
Other expenses
Salaries and employee benefits ....... 379,614 313,916 1,108,634 949,559
Equipment expense .................... 52,943 41,356 152,890 122,523
Occupancy expense .................... 35,082 27,816 99,025 82,812
Advertising expense .................. 12,362 10,102 29,167 33,708
Audit and accounting ................. 17,000 18,000 53,004 50,239
Consulting fees ...................... 8,000 30,000 21,000 30,000
Data Processing expenses ............. 22,050 21,740 82,685 65,221
Printing and office supplies ......... 22,798 25,502 54,947 51,070
Other operating expenses ............. 136,605 112,399 358,569 295,719
---------- ---------- ---------- ----------
686,454 600,831 1,959,921 1,680,851
---------- ---------- ---------- ----------
Income before income taxes ........ 453,660 367,668 1,352,227 1,064,784
Applicable income taxes ................... 155,000 132,200 460,000 389,000
---------- ---------- ---------- ----------
Net income ....................... $ 298,660 $ 235,468 $ 892,227 $ 675,784
========== ========== ========== ==========
Basic earnings per common share ........... $ .72 $ .57 $ 2.14 $ 1.62
========== ========== ========== ==========
Diluted earnings per common share ......... $ .66 $ .52 $ 1.97 $ 1.49
========== ========== ========== ==========
PAGE 4
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net income ........................................ $298,660 $235,468 $892,227 $675,784
Other comprehensive income (loss):
Net unrealized holding gains (losses) arising
during the period, net of tax (benefit) of
$6,000 and ($5,000) for the three months;
($1,000) and ($30,000) for the nine months
ended September 30: .......................... 12,000 (10,000) (2,000) (60,000)
-------- -------- -------- --------
Comprehensive income .............................. $310,660 $225,468 $890,227 $615,784
======== ======== ======== ========
PAGE 5
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
<CAPTION>
Accumulated
Common stock Additional Retained Other
Number of Par Paid-in Earnings Comprehensive Treasury
Shares Value Capital (Deficit) Income (loss) Stock Total
------- -------- ---------- ---------- ------- ------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance,
December 31, 1998 .......... 411,173 $411,173 $3,659,708 $ (141,341) $14,000 $ - $3,943,540
Net income ................. - - - 675,784 - - 675,784
Stock options exercised .... 5,463 5,463 49,167 - - - 54,630
Treasury stock purchased ... - - - - - (9,000) (9,000)
Other comprehensive
income (loss) ........... - - - - (60,000) - (60,000)
------- -------- ---------- ---------- ------- ------ ----------
Balance,
September 30, 1999
(unaudited) ................ 416,636 $416,636 $3,708,875 $ 534,443 $(46,000) $(9,000) $4,604,954
======= ======== ========== ========== ======== ======= ==========
Balance,
December 31, 1999 .......... 416,636 $416,636 $3,708,875 $ 784,081 $(49,000) $(9,000) $4,851,592
Net income ................. - - - 892,227 - - 892,227
Cash dividends declared
on common stock ......... - - - (95,711) - - (95,711)
Other comprehensive
income (loss) ........... - - - - 2,000 - 2,000
------- -------- ---------- --------- -------- ------ ----------
Balance,
September 30, 2000
(unaudited) ................ 416,636 $416,636 $3,708,875 $1,580,597 $(47,000) $(9,000) $5,650,108
======= ======== ========== ========== ======== ======= ==========
PAGE 6
<PAGE>
FNC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
2000 1999
-------------- --------------
<S> <C> <C>
Operating Activities:
Net Income ....................................................... $ 892,227 $ 675,784
-------------- --------------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation ................................................... 130,929 107,357
Provision for loan losses ...................................... - -
(Increase) decrease in interest receivable ..................... (267,837) (229,239)
Increase (decrease) in interest payable ........................ 139,061 59,983
Increase (decrease) in income taxes payable .................... (270,019) 262,180
Other prepaids, deferrals and accruals, net .................... (234,797) 55,146
-------------- --------------
Total adjustments .......................................... (502,663) 255,427
-------------- --------------
Net cash provided by operating activities ........................... 389,564 931,211
-------------- --------------
Investing Activities:
(Increase) decrease in Federal funds sold ...................... 218,000 3,429,000
Increase (decrease) in Federal funds purchased ................. (1,250,000) -
Proceeds from maturities of securities available for sale ...... - 3,159,700
Purchases of securities available for sale ..................... - (2,968,429)
Purchase of securities held to maturity ........................ - (3,531,887)
Net (increase) decrease in loans ............................... (8,993,816) (8,508,242)
Purchase of premises and equipment ............................. (416,942) (106,883)
-------------- --------------
Net cash used in investing activities ............................ (10,442,758) (8,526,741)
-------------- --------------
Financing Activities:
Increase in time deposits ...................................... 8,264,532 6,605,901
Increase (decrease) in other deposits .......................... 519,941 (659,902)
Proceeds from common stock issued ............................... - 54,630
Cash dividends paid on common stock ............................. (95,711) -
Advances (repayment) of Federal Home Loan Bank, net ............. 995,000 (5,000)
-------------- --------------
Net cash provided by financing activities ........................ 9,683,762 5,995,629
-------------- --------------
Net increase (decrease) in cash and due from bands .................. (369,432) (1,599,901)
Cash and due from banks at beginning of year ........................ 3,394,212 5,617,359
-------------- --------------
Cash and due from banks at end of quarter ........................... $ 3,024,780 $ 4,017,458
============== ==============
Supplemental Disclosures Cash paid during the year for:
Interest ......................................................... $ 2,054,388 $ 1,573,673
Income taxes ..................................................... $ 724,532 $ 142,710
Non-Cash Transaction
Net change in unrealized gains (losses) on securities
available for sale ............................................... $ 2,000 $ (60,000)
PAGE 7
<PAGE>
FNC BANCORP, INC. AND SUBSIDIAR
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 and recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the nine months ended September 30, 2000 are not necessarily
indicative of the results that may be expected for the year ending December 31,
2000. For further information, refer to the consolidated financial statements
and footnotes included in the Company's annual report to stockholders for the
year ended December 31, 1999, and in the Company's annual 10-KSB.
PAGE 8
<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 $892,227 for the nine months ended September 30, 2000 compared to
$675,784 for the nine months ended September 30, 1999. Net interest income after
provision for loan losses was $2,764,432 and $2,243,031 for the nine months
ended September 30, 2000 and 1999, respectively. There was no provision for loan
losses for the ,nine months ended September 30, 2000 and 1999, respectively.
Non-interest income totaled $547,716 and $502,604 for the nine months ended
September 30, 2000 and 1999, respectively. Non-interest expenses totaled
$1,959,921 and $1,680,851 for the nine months ended September 30, 2000 and 1999,
respectively.
The following table summarizes the results of operations of the Company for the
three and nine month periods ended September 30, 2000 and 1999.
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000 1999
---------- ---------- ---------- ----------
(IN THOUSANDS) (IN THOUSANDS)
<S> <C> <C> <C> <C>
Interest income .................. $ 1,779 $ 1,382 $ 4,958 $ 3,877
Interest expense ................. (839) (587) (2,194) (1,634)
---------- ---------- --------- ----------
Net interest income .............. 940 795 2,764 2,243
Provision for loan losses ........ (0) (0) (0) (0)
Noninterest income ............... 200 174 548 503
Noninterest expense .............. (686) (601) (1,960) (1,681)
---------- ---------- --------- ----------
Income (loss) before taxes ....... 454 368 1,352 1,065
Income (taxes) benefit ........... (155) (132) (460) (389)
---------- ---------- --------- ----------
Net income (loss) ................ $ 299 $ 236 $ 892 $ 676
========== ========== ========= ==========
Interest Income
Total interest income increased approximately $1,081,000 for the nine months
ended September 30, 2000 compared to the nine months ended September 30, 1999.
This increase was from the effect of an increase in the average loan portfolio
balance from approximately $46.5 million for the nine months ended September 30,
1999 to approximately $58.4 million for the nine months ended September 30,
2000. The effect of this change increased interest income earned on the loan
portfolio from approximately $3,432,000 for the nine months ended September 30,
1999 to approximately $4,499,000 for the nine months ended September 30, 2000,
an increase of $1,067,000.
Interest earned on investment securities increased from approximately $266,000
for the nine months ended September 30, 1999 to approximately $372,000 for the
nine months ended September 30, 2000, an increase of $107,000. This increase was
from the effect of an increase in the average investment portfolio balance from
approximately $6.1 million for the nine months ended September 30, 1999 to
approximately $8.2 million for the nine months ended September 30, 2000.
PAGE 9
<PAGE>
Interest earned on federal funds sold decreased from approximately $179,000 for
the nine months ended September 30, 1999 to approximately $87,000 for the nine
months ended September 30, 2000, a decrease of $92,000. This decrease was from
the effect of a decrease in the average federal funds sold balance from
approximately $4.9 million for the nine months ended September 30, 1999 to
approximately $1.9 million for the nine months ended September 30, 2000.
Interest Expense
Total interest expense increased approximately $559,000 for the nine months
ended September 30, 2000 compared to the nine months ended September 30, 1999.
This increase was the effect of an increase in the average amount of deposits
and an increase in the borrowings from the Federal Home Loan Bank.
Deposits increased from $56.4 million for the nine months ended September 30,
1999 to $65.5 million for the nine months ended September 30, 2000. Interest
expense on interest-bearing deposits increased from approximately $1,604,000 for
the nine months ended September 30, 1999 to approximately $2,099,000 for the
nine months ended September 30, 2000, an increase of $495,000. These increased
deposits were generated primarily in interest-bearing deposits, thus increasing
the average costs of funds from 3.79% at September 30, 1999, to 4.27% at
September 30, 2000.
At September 30, 2000, the Bank had advances from the Federal Home Loan Bank of
$1,050,000 at an average rate of 7.27%. Interest expense incurred for the nine
months ended September 30, 2000 totaled approximately $57,000 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,
2000 of approximately $31,000 and approximately $26,000 for the nine months
ended September 30, 1999, 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 8.50%. 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 nine month periods ended September 30, 2000 and 1999.
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Service charges on deposit accounts ...... $167 $135 $440 $376
Insurance Commissions .................... 4 8 30 30
Mortgage origination income .............. 6 2 8 30
Other operating income ................... 23 29 70 67
---- ---- ---- ----
Total noninterest income ........ $200 $174 $548 $503
==== ==== ==== ====
PAGE 10
<PAGE>
Service charges on deposit accounts for the nine months ended September 30, 2000
as compared to the nine months ended September 30, 1999, increased approximately
$64,000. This increase was related to an increase in NSF fees of approximately
$36,000 and other service charges increasing approximately $28,000. All other
income totaled approximately $108,000 and $127,000 for the nine months ended
September 30, 2000 and 1999, respectively. The decrease of $19,000 is primarily
attributable to a decrease in Mortgage origination income.
Noninterest Expenses
The following table presents the principal components of noninterest expenses
for the nine and three month periods ended September 30, 2000 and 1999.
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000 1999
------ ------ ------ ------
<S> <C> <C> <C> <C>
Salaries and employee benefits .............. $ 380 $ 314 $1,109 $ 950
Equipment expenses .......................... 53 41 153 122
Occupancy expenses .......................... 35 28 99 83
Advertising ................................. 12 10 29 34
Audit and accounting ........................ 17 18 53 50
Consulting fees ............................. 8 30 21 30
Data processing ............................. 22 22 83 65
Printing and office supplies ................ 23 26 55 51
Other operating expenses .................... 136 112 358 296
------ ------ ------ ------
Total noninterest expense .......... $ 686 $ 601 $1,960 $1,681
====== ====== ====== ======
Noninterest expenses for the nine months ended September 30, 2000 as compared to
the nine months ended September 30, 1999, increased approximately $279,000.
Salaries and employee benefits increased approximately $159,000 for the nine
months ended September 30, 2000 as compared to the nine months ended September
30,1999. This increase reflects increases in the number of employees, in wage
levels, and in the cost of employee benefits. All other expenses increased
approximately $120,000 for the nine months ended September 30, 2000 compared to
the nine months ended September 30, 1999. This increase was due to several
factors, including a new building annex that was completed in the first quarter,
costing a total in capitalized costs of approximately $498,000 for the building
and $102,000, for the new equipment. Also, data processing costs increased
approximately $18,000.
Provision for Loan Losses
The provision for loan losses for the nine months ended September 30, 2000 and
September 30, 1999 was $0. The balance of the allowance for loan losses was
approximately $1,491,000 (approximately 2.36% of outstanding loans) at September
30, 2000 and approximately $1,423,000 (approximately 2.63% of outstanding loans)
at December 31, 1999. Actual loan recoveries net of charge-offs were
approximately $68,000 for the nine months ended September 30, 2000 and
approximately $149,000 for the twelve months ended December 31, 1999.
Non-accrual loans were approximately $448,000 at September 30, 2000 compared to
$380,000 at December 31, 1999. In determining an adequate level of loan loss
reserve, such loans were included in such consideration.
PAGE 11
<PAGE>
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 reflects an effective rate of 34% for the nine
months ended September 30, 1999 and September 30, 2000.
Financial Condition
The company including its subsidiary bank, reported consolidated total assets of
approximately $78.2 million at September 30, 2000 and approximately $68.9
million at December 31, 1999. Representing an increase of approximately $9.3
million. During the nine months ended September 30, 2000, operations generated
$.4 million, deposits increased by $8.8 million, net advances from the Federal
Home Loan Bank increased by $1 million, and cash and due from banks decreased by
$.4 million, and Federal funds sold decreased by $.2 million, providing $10.8
million of funds available which were used to decrease Federal funds purchased
by $1.3 million, increase the banks' investment in fixed assets by $.4 million
and increase loans by $9 million, also, the company paid a dividend of $.1
million.
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, 2000, 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, 2000
Total Capital
(to Risk Weighted Assets) .... $6,978 11.80% $4,432 8% $5,915 10%
Tier 1 Capital
(to Risk Weighted Assets) .... $6,230 10.53% $2,366 4% $3,549 6%
Tier 1 Capital
(to Average Assets) .......... $6,230 8.12% $3,071 4% $3,838 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 12
<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, 2000, the Company's
cash and due from banks was approximately $3 million and its unused line at the
Federal Home Loan Bank was approximately $8.9 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, 2000, can also be used to
meet liquidity requirements, to the extent the investments are not pledged. At
September 30, 2000, the market value of pledged securities was approximately
$5.5 million.
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 $1,050,000 at September 30, 2000, at an average
rate of about 7.27%.
The Bank also has the ability, on a short-term basis, to borrow and purchase
Federal funds from other financial institutions.
PAGE 13
<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, 2000.
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 13, 2000 By/s/ Jeffrey W. Johnson
----------------- ------------------------
Jeffrey W. Johnson
President & CEO
PAGE 14
</TABLE>
