<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
February 10, 1997
- --------------------------------------------------------------------------------
(Date of earliest event reported)
PennFirst Bancorp, Inc.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Pennsylvania 0-19345 25-1659846
- ---------------------------------------------------------------------------------------------------------------------------------
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
600 Lawrence Avenue, Ellwood City, Pennsylvania 16117
- ---------------------------------------------------------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
</TABLE>
(412) 758-5584
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
Not Applicable
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Exhibit Index appears on page 4.
<PAGE> 2
ITEM 5. OTHER EVENTS
On February 10, 1997, PennFirst Bancorp, Inc. ("PennFirst"), a
Pennsylvania corporation headquartered in Ellwood City, Pennsylvania, issued a
press release in connection with its earnings for the three months and the year
ended December 31, 1996.
A copy of the press release is attached as an exhibit and is
incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS
The following exhibit is filed with this report:
<TABLE>
<CAPTION>
Exhibit Number Description
-------------- -----------
<S> <C>
20 Press Release issued on
February 10, 1997
</TABLE>
2
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PENNFIRST BANCORP, INC.
Date: February 11, 1997 By: /S/ Charlotte A. Zuschlag
---------------------------------------
Charlotte A. Zuschlag
President and Chief Executive Officer
3
<PAGE> 4
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Number Description
-------------- -----------
<S> <C>
20 Press Release issued on
February 10, 1997
</TABLE>
<PAGE> 1
PENNFIRST BANCORP, INC.
600 Lawrence Avenue
Ellwood City, Pennsylvania 16117
412/758-5584
================================================================================
PRESS RELEASE
================================================================================
RELEASE DATE: CONTACT:
FEBRUARY 10, 1997 CHARLES P. EVANOSKI
SENIOR VICE PRESIDENT
CHIEF FINANCIAL OFFICER
(412) 758-5584
FOR IMMEDIATE RELEASE
PENNFIRST BANCORP ANNOUNCES FOURTH QUARTER RESULTS
Ellwood City, Pennsylvania (NASDAQ NMS: PWBC): PennFirst Bancorp, Inc.
reported earnings of $.26 per share on net income of $1,016,000 for the three
months ended December 31, 1996, as compared to earnings of $.26 per share on
net income of $1,052,000 for the same period in the prior year.
The Company reported earnings of $.71 per share on net income of
$2,830,000 for the year ended December 31, 1996, when compared to earnings of
$.94 per share on net income of $3,968,000 for the same period in the prior
year. The decrease in earnings in 1996 includes a one-time special assessment
of $1,347,000 (net of taxes) or $.34 per share for the recapitalization of the
Savings Association Insurance Fund ("SAIF") by the Federal Deposit Insurance
Corporation ("FDIC"). Excluding the one-time special assessment, earnings per
share would have increased by 11.7% to $1.05 per share on income of $4,177,000.
In announcing the results of operations for the year ended December
31, 1996, Charlotte A. Zuschlag, President and Chief Executive Officer, stated
"we are pleased with the Company's yearly results despite the impact the SAIF
assessment had on earnings. The resolution of the BIF/SAIF disparity will
have a positive impact on future earnings by reducing the Company's deposit
insurance premiums from $.23 per $100 in deposits to approximately $.06 per
$100, resulting in annual premium savings of approximately $550,000 before
taxes. This will enable the Company to be more competitive with commercial
banks in pricing its deposit products. We are also looking forward in 1997 to
the merger of PennFirst and Troy Hill Bancorp, Inc. which will allow PennFirst
to further enhance shareholder value and will increase our market presence in
Allegheny County."
<PAGE> 2
The Company's net loans receivable as of December 31, 1996 totaled
$216.9 million, a 17.9% increase from $183.9 million as of December 31, 1995.
The allowance for loan losses as of December 31, 1996 was $3.3 million or
1.46% of PennFirst's total loans receivable as compared to $2.5 million or
1.29% at December 31, 1995. Non-performing assets increased to a total of $4.1
million or 0.59% of total assets at December 31, 1996 as compared to $851,000
or 0.13% at December 31, 1995. PennFirst's non-performing assets increased as
a result of the Company placing $3.6 million of commercial equipment leases on
nonaccrual status during the first quarter of 1996.
PennFirst's total assets at December 31, 1996 were $698.7 million
versus $659.4 million at December 31, 1995. Savings deposits totaled $332.9
million at December 31, 1996 as compared to $338.5 million at December 31,
1995. At December 31, 1996, stockholders' equity totaled $51.5 million or 7.4%
of total assets.
PennFirst Bancorp, Inc. is the parent holding company of ESB Bank
F.S.B., and has nine banking offices in the contiguous counties of Allegheny,
Lawrence, Beaver and Butler in Pennsylvania. The common stock of PennFirst is
traded on the Nasdaq National Market under the symbol "PWBC."
<PAGE> 3
PENNFIRST BANCORP, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollar in Thousands - Except Per Share Amounts)
<TABLE>
<CAPTION>
December 31, December 31,
1996 1995
------------ ------------
<S> <C> <C>
Balance Sheet Data:
Total assets $698,735 $659,371
Short-term investments and cash equivalents 5,400 4,599
Investment securities held to maturity 18,082 20,757
Investment securities available for sale 88,687 43,932
Mortgage-backed securities held to maturity 78,118 91,173
Mortgage-backed securities available for sale 259,442 286,921
Loans receivable, net 216,865 183,878
Savings deposits 332,889 338,494
Borrowed funds 309,195 259,472
Stockholders' equity 51,543 54,926
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended December 31,
-------------------------------
1996 1995
------- -------
(Unaudited)
<S> <C> <C>
Operations Data:
Interest income $ 11,970 $ 11,521
Interest expense 8,388 7,821
-------- --------
Net interest income 3,582 3,700
Provision (recovery) for possible losses on loans 192 (6)
Net interest income after provision (recovery)
for possible losses on loans 3,390 3,706
Noninterest income 193 238
Noninterest expense 2,228 2,633
-------- --------
Income before income taxes 1,355 1,311
Income tax expense 339 259
-------- --------
Net income $ 1,016 $ 1,052
======== ========
Earnings per share $ .26 $ .26
======== ========
Weighted average shares and
share equivalents outstanding 3,899,373 4,125,498
</TABLE>
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------
1996 1995
-------- --------
<S> <C> <C>
Operations Data:
Interest income $ 46,737 $ 44,183
Interest expense 32,629 30,219
-------- --------
Net interest income 14,108 13,964
Provision for possible losses on loans 873 13
-------- --------
Net interest income after provision
for possible losses on loans 13,235 13,951
Noninterest income 833 946
Noninterest expense 8,339 8,962
One-time SAIF speical assessment 2,196 -
-------- --------
Income before income taxes 3,533 5,935
Income tax expense 703 1,967
-------- --------
Net income $ 2,830 $ 3,968
======== ========
Earnings per share $ .71 $ .94
======== ========
Weighted average shares and
share equivalents outstanding 3,960,505 4,228,245
</TABLE>
<PAGE> 4
FINANCIAL HIGHLIGHTS
(Continued)
<TABLE>
<CAPTION>
At or For the At or For the
Year Ended Year Ended
December 31, 1996 December 31, 1995
----------------- -----------------
<S> <C> <C>
Other Data (1):
Return on assets (2) 0.41% 0.61%
Return on equity (2) 5.47 7.44
Equity to assets 7.50 8.24
Interest rate spread 1.98 1.92
Net interest margin (3) 2.32 2.29
Interest-earning assets to interest-bearing
liabilities 1.07 1.08
Noninterest expense to assets (2) 1.53 1.39
Efficiency ratio 53.24 58.25
Allowance for loan losses to total loans
receivable at end of period 1.46 1.29
Non-performing assets to total assets at
end of period 0.59 0.13
Full-service offices at end of period 9 9
</TABLE>
(1) With the exception of end of period ratios, all ratios are based on
average monthly balances during the respective periods and are
annualized where appropriate.
(2) Exclusive of the $2.2 million one-time SAIF assessment, PennFirst's
return on assets, return on equity and noninterest expense to assets
ratio would have been 0.61%, 8.08% and 1.21%, respectively, for the
twelve months ended December 31, 1996.
(3) Net interest margin is calculated on a tax equivalent yield.
