U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1999
--------------
Commission file number - 0-21346
-------
TRIANGLE BANCORP, INC.
(Exact name of registrant as specified in its charter)
North Carolina 56-1764546
-------------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4300 Glenwood Avenue
Raleigh, North Carolina 27612
-----------------------------
(Address of principal executive offices)
(Zip Code)
Telephone: (919) 881-0455
-------------------------
(Registrant's telephone number)
Indicate by check mark whether the registrant (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
---- ----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock 25,111,994
------------ ----------
Class Outstanding at August 6, 1999
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
The Consolidated Balance Sheets for June 30, 1999 and December 31,
1998, the Consolidated Statements of Income for the three and six month
periods ended June 30, 1999 and 1998, and the Consolidated Statements
of Cash Flows for the six month periods ended June 30, 1999 and 1998
have been included as Attachments to this report.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
GENERAL
-------
The purpose of this discussion is to provide the reader with a concise
understanding of the performance and financial condition of Triangle
Bancorp, Inc. (the "Company"). The Company is a multibank holding
company incorporated in November 1991 under the laws of the State of
North Carolina, with four wholly-owned subsidiaries: Triangle Bank
("Triangle"); Bank of Mecklenburg ("Mecklenburg") (collectively, the
"Banks"); Coastal Leasing LLC ("Coastal"); and Triangle Capital Trust.
OPERATING RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998
-------------------------------------------------------------------
The Company's net income for the three months ended June 30, 1999 was
$6,867,000 compared to recurring earnings of $6,078,000 for the same
period in 1998, an increase of $789,000 or 13%. Diluted earnings per
share were $0.27 compared to $0.24 for the same period in 1998. The
results for the three months ended June 30, 1998 included after-tax
merger expenses of $794,000 resulting in actual earnings of $5,284,000
and diluted earnings per share of $.20. Cash basis diluted earnings per
share, which exclude the amortization of intangible assets, were $.29
for the quarter ended June 30, 1999, a 16% increase over the $.25
earned for the same period in 1998, excluding merger expenses.
For the three months ended June 30, 1999 the annualized returns on
average assets (ROA) and equity (ROE) were 1.24% and 16.28%,
respectively, compared to 1.23% and 15.47% for the same period in 1998,
excluding merger expenses.
Net taxable equivalent interest income for the three months ended June
30, 1999 was $20,838,000 compared to $19,666,000 for the same period in
1998, an increase of $1,172,000, or 6%. Average earning assets
increased $205 million with loans increasing $167 million and
investments increasing by $38 million. While the volume of earning
assets increased, the taxable equivalent yields declined due to the
overall interest rate environment including the reduction in the prime
based lending rate. Average costing liabilities increased by $195
million, with interest bearing deposits growing $80 million, short-term
debt increasing $138 million and FHLB advances declining $23 million.
The increase in short-term debt is attributable to the Company being in
a federal funds purchased position for much of the second quarter of
1999 as compared to 1998. Also, reverse repurchase
<PAGE>
agreements were used as an alternative to higher priced deposits to
fund loan growth. The cost of liabilities decreased when comparing the
second quarter of 1999 to 1998, again due to the overall interest rate
environment. The net taxable equivalent yield on interest earning
assets decreased by 21 basis points to 4.11% for the quarter ended June
30, 1999 compared to 4.32% for the quarter ended June 30, 1998.
For the three months ended June 30, 1999, a loan loss provision of
$1,936,000 was made compared to a provision of $1,155,000 for the same
period in 1998. The provision increased due to continued loan growth
during the second quarter of 1999 as well as increased charge-offs in
1999 compared to 1998.
Noninterest income for the three months ended June 30, 1999 was
$5,409,000 compared to $4,659,000 for the same period in 1998 an
increase of 16%. This increase resulted from increases in service
charges and other commissions and fees. In addition, other operating
income increased $569,000 primarily due to $558,000 in income on bank
owned life insurance purchased by the Company in the third quarter of
1998 and the first quarter of 1999.
Noninterest expenses, excluding merger expenses, decreased by $38,000
for the three months ended June 30, 1999 compared to the same period in
1998. These decreases are the result of efficiencies achieved in
mergers with Guaranty State Bancorp in April 1998 and United Federal
Savings Bank in September 1998. For the three months ended June 30,
1999, there was a decrease in professional fees compared to the same
period in 1998 relating to Year 2000 consulting expenses.
OPERATING RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
-----------------------------------------------------------------
The Company's net income for the six months ended June 30, 1999 was
$13,469,000, compared to recurring net income of $11,664,000 for the
same period in 1998. This represents an increase of $1,805,000 or 16%.
Including nonrecurring merger expenses in 1998 of $998,000,
year-to-date net income was $10,666,000. Fully diluted earnings per
share for the six months ended June 30, 1999 were $.52 compared to $.45
for the same period in 1998, excluding merger expenses. Cash basis
diluted earnings per share, which exclude the amortization of
intangible assets, were $.56 for the year to date period ended June 30,
1999, a 14% increase over the $.49 earned on recurring cash basis
earnings for the same period in 1998.
For the six months ended June 30, 1999 the annualized returns on
average assets and equity were 1.26% and 16.18%, respectively, compared
to 1.18% and 14.97% for the same period in 1998, excluding nonrecurring
items.
Net taxable equivalent interest income for the six months ended June
30, 1999 was $40,414,000 compared to $38,877,000 for the same period in
1998, an increase of $1,537,000. Average earning assets increased $128
million with loans increasing $138 million and investments decreasing
by $10 million. While the volume of earning assets increased, the
taxable equivalent yields declined due to the overall interest rate
environment including the reduction in the prime based lending rate and
accelerated mortgage prepayments on collateralized mortgage obligations
in the investment portfolio. Average costing liabilities increased by
$135 million, with interest bearing deposits growing $57
<PAGE>
million, short-term debt increasing $116 million and FHLB advances
declining $38 million. The increase in short-term debt is attributable
to the Company being in a federal funds purchased position for much of
1999 as compared to 1998. Also, reverse repurchase agreements were used
as an alternative to higher priced deposits to fund loan growth. The
cost of liabilities decreased when comparing the first six months of
1999 to 1998, again due to the overall interest rate environment. The
net taxable equivalent yield on interest earning assets decreased by 11
basis points to 4.10% for the six months ended June 30, 1999 from 4.21%
for the six months ended June 30, 1998.
For the six months ended June 30, 1999, a loan loss provision of
$3,251,000 was made compared to a provision of $2,606,000 for the same
period in 1998. The increase in provision was due to the loan growth
and increased charge-offs during 1999.
Noninterest income for the six months ended June 30, 1999 was
$10,182,000 compared to $8,506,000 for the same period in 1998 an
increase of 20%. This increase resulted from increases in service
charges on deposit accounts and fees from the Company's investment
services subsidiary. Other operating income increased $841,000
primarily due to $878,000 in income on bank owned life insurance
purchased by the Company in the third quarter of 1998 and the first
quarter of 1999.
Noninterest expenses, excluding merger expenses, for the six months
ended June 30, 1999 decreased $309,000 compared to the same period in
1998. These decreases are the result of efficiencies achieved in the
mergers with Guaranty State Bancorp in April 1998 and United Federal
Savings Bank in September 1998.
FINANCIAL CONDITION
-------------------
Total assets increased $162 million, or 8%, to $2.285 billion at June
30, 1999 versus $2.123 billion at December 31, 1998. Loans have
increased $125 million and investments grew $21 million. Other assets
increased $22 million due to the purchase of additional bank owned life
insurance in the first quarter of 1999. This growth was funded by a
decrease in cash of $17 million as well as deposit growth of $126
million and an increase in other borrowings of $32 million.
The Company continued to maintain adequate loan loss reserves during
the period with the loan loss reserves at June 30, 1999 being 1.37% of
total loans and 230% of nonaccrual loans and loans ninety days or more
past due and still accruing. Nonperforming assets to total loans plus
other real estate owned were .71% on June 30, 1999 compared to .92% as
of December 31, 1998. Net charge-offs were .31% for the six month
period ended June 30, 1999 versus .25% in the same period in 1998. A
summary of certain information related to the loan loss reserves and
nonperforming assets as of June 30, 1999 follows:
<PAGE>
RESERVE FOR LOAN LOSSES AND NONPERFORMING ASSETS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
ANALYSIS OF RESERVE FOR LOAN LOSSES:
<S> <C>
Beginning Balance, January 1, 1998 $19,584
-------
Deduct charge-offs:
Commercial financial and agricultural 1,592
Installment loans to individuals 480
Credit card and related plans 445
------
2,517
Add recoveries:
Commercial, financial and agricultural 65
Real estate 54
Installment loans to individuals 100
Credit card and related plans 69
------
288
Net charge-offs 2,229
Additions charged to operations 3,251
Ending Balance, June 30, 1999 $ 20,606
========
Ratio of net charge-offs to average loans outstanding during the period 0.31%
ANALYSIS OF NONPERFORMING ASSETS:
Nonaccrual loans:
Commercial, financial and agricultural $ 1,775
Real estate, construction and land development 1,499
Installment loans to individuals 215
------
3,489
Loans contractually past due 90 days or more
as to principal or interest 5,471
Foreclosed assets 1,779
-----
TOTAL $ 10,739
========
</TABLE>
<PAGE>
Total deposits were $1.752 billion as of June 30, 1999 compared to
$1.626 billion at December 31, 1998. Significant growth in time
deposits were offset somewhat by declines in interest bearing demand
deposits. The growth in time deposits greater than $100,000 was the
result of the Company implementing a program late in the fourth quarter
of 1998 of accepting a limited amount of brokered deposits as an
alternative to higher priced retail deposits.
Short-term debt has increased $37 million as of June 30, 1999 compared
to December 31, 1998. Federal Home Loan Bank borrowings have been
reduced by $5 million from December 31, 1998 to June 30, 1999.
CAPITAL
-------
The adequacy of capital is reviewed regularly, in light of current
plans and economic conditions, to ensure that sufficient capital is
available for current and future needs, to minimize the Company's cost
of capital and to assure compliance with regulatory requirements. The
Company's capital ratios as of June 30, 1999 are as follows:
ACTUAL REQUIRED EXCESS
PERCENT PERCENT PERCENT
------- ------- -------
Tier 1 Capital to Risk Based Assets 10.03% 4.00% 6.03%
Total Capital to Risk Based Assets 11.24% 8.00% 3.24%
Leverage Ratio 7.90% 4.00% 3.90%
IMPACT OF YEAR 2000 ISSUE
-------------------------
The Year 2000 Issue is the result of computer programs being written
using two digits rather than four to define the applicable year. As a
result, many automated applications may fail to function properly or
may cease to function unless corrected or replaced.
The Company is a "turnkey" institution; it does not write or develop
any of its own computer applications, but instead purchases or licenses
its applications from third party vendors. As a "turnkey" institution,
the Company is in dialogue with all of its vendors as to their
preparedness for Year 2000. In 1997, the Company hired an independent
consultant to assist it in all phases of its Year 2000 plan. With the
assistance of the consultant, the Company in 1997 adopted a plan which
called for the Company's applications to properly process dates in the
Year 2000 and beyond by April 30, 1999.
<PAGE>
In 1998, the Company completed its assessment of its existing computer
systems and applications and had identified 30 mission critical
applications which was later increased to 36 due to a merger in
September 1998 and new or replacement applications in 1999. Due to the
applications added in 1998, and 1999, the April 30 deadline was not met
by eight applications. All other applications in use were prepared for
the Year 2000 on April 30, 1999. As of July 31, 1999, the Company had
completed renovation, validation and implementation of all of its
mission critical and its non-mission critical applications. As of June
30, 1999 the Company had completed contingency planning for all
existing applications and functions.
The Company originally budgeted $1,000,000 for the Year 2000 plan, with
approximately $50,000 for 1997, $750,000 for 1998 and $200,000 for
1999. As of June 30, 1999, the Company has spent approximately $40,000
and $614,000 in 1997 and 1998, respectively, on Year 2000 issues
leaving $346,000 budgeted for 1999. The amount spent on Year 2000
issues in the quarters ended March 31, 1999 and June 30, 1999 was
$94,000 and $87,000, respectively. The Company does not expect the
costs of this process to be material to its financial condition or
results of operations.
Based on information now available, the Company anticipates its systems
will properly process dates in the year 2000 and beyond.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
There are no material pending legal proceedings involving the Company.
Item 2. Changes in Securities
There have been no changes in the rights of the holders of the common
stock of the Company.
Item 3. Defaults Upon Senior Securities
Not Applicable.
Item 4. Submission of Matters to a Vote of Security Holders
Not Applicable.
Item 5. Other Information
Not Applicable.
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
<PAGE>
(27) Financial Data Schedule.
b) Reports on Form 8-K
Not Applicable.
<PAGE>
TRIANGLE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
IN THOUSANDS
UNAUDITED
<TABLE>
<CAPTION>
June 30, 1999 December 31, 1998
---------------- --------------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 60,092 $ 76,624
Interest-bearing deposits in banks 11,345 911
Securities available for sale 543,105 482,155
Securities held to maturity, market value;
$41,893 and $82,790 41,667 81,138
Loans and Leases, less allowance for losses of
$20,606 and $19,584 1,488,775 1,363,553
Premises and equipment, net 38,471 40,492
Interest receivable 16,999 16,468
Deferred income taxes 13,310 10,597
Intangible assets 22,470 24,207
Other assets 49,099 26,939
---------------- --------------------
Total Assets $ 2,285,333 $ 2,123,084
---------------- --------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand $ 228,933 $ 224,732
Interest-bearing demand 180,842 201,042
Savings and money market 289,794 293,652
Large denomination certificates of deposit 264,371 217,598
Other time 787,568 688,874
---------------- --------------------
Total Deposits 1,751,508 1,625,898
Short-term debt 195,817 158,980
Federal Home Loan Bank advances 125,300 130,300
Corporation obligated mandatorily
redeemable securities 19,953 19,952
Custodial deposits 9,469 7,243
Interest payable 8,891 8,292
Other liabilities 9,601 9,392
---------------- --------------------
Total other liabilties 369,031 334,159
---------------- --------------------
Total liablities 2,120,539 1,960,057
---------------- --------------------
Commitments and contingencies*
SHAREHOLDERS' EQUITY
Common stock, no par value 50,000
authorized; 25,086 shares and
25,184 shares outstanding at June 30,
1999 and December 31, 1998, respectively 84,299 86,549
Undivided profits 89,688 80,753
Accumulated other comprehensive income (9,193) (4,275)
---------------- --------------------
Total shareholders' equity 164,794 163,027
---------------- --------------------
Total liablities and shareholders' equity $ 2,285,333 $ 2,123,084
---------------- --------------------
*Standby letters of credit outstanding at June 30, 1999 amounted to $5,283.
The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
For the three For the three For the six For the six
months ended months ended months ended months ended
June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998
--------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans $ 32,239 $ 30,404 $ 62,607 $ 60,027
Securities 7,756 7,436 15,076 15,665
Other interest income 69 465 138 1,010
--------------- -------------- --------------- ---------------
Total interest income 40,064 38,305 77,821 76,702
INTEREST EXPENSE:
Large denomination certificates of deposit 3,323 2,976 6,824 5,700
Other deposits 12,730 13,516 24,538 27,161
Other borrowings 2,608 931 4,845 1,987
Federeal Home Loan Bank borrowings 1,718 2,199 3,431 4,887
--------------- -------------- --------------- ---------------
Total interest expense 20,379 19,622 39,638 39,735
--------------- -------------- --------------- ---------------
Net interest income 19,685 18,683 38,183 36,967
Provision for loan losses 1,936 1,155 3,251 2,606
--------------- -------------- --------------- ---------------
Net interest income after
provision for loan losses 17,749 17,528 34,932 34,361
--------------- -------------- --------------- ---------------
NONINTEREST INCOME:
Service charges on deposit accounts 2,403 2,171 4,509 4,129
Other commissions and fees 1,033 911 1,963 1,797
Mortgage servicing fees net of amortization 192 190 456 421
Gain on sale of securities, net 240 433 532 472
Gain on sale of government loans 289 344 434 543
Gain on sale of mortgage loans 154 133 343 268
Investment commissions and fees 266 214 578 350
Other operating income 832 263 1,367 526
--------------- -------------- --------------- ---------------
Total noninterest income 5,409 4,659 10,182 8,506
--------------- -------------- --------------- ---------------
NONINTEREST EXPENSES:
Salaries and employee benefits 5,333 5,594 10,534 11,182
Occupancy expenses 1,301 1,205 2,648 2,464
Furniture and equipment expenses 1,339 1,202 2,554 2,242
Professional fees 634 722 1,131 1,178
Deposit insurance expense 127 47 190 140
Advertising and public relations 377 395 781 654
Office expenses 390 433 710 895
Telephone and communication 410 432 773 828
Other real estate owned expense 35 42 44 158
Amortization of intangible assets 792 793 1,584 1,587
Merger expenses - 1,303 - 1,632
Other operating expense 2,051 1,962 3,784 3,714
--------------- -------------- --------------- ---------------
Total noninterest expenses 12,789 14,130 24,733 26,674
--------------- -------------- --------------- ---------------
Net income before taxes 10,369 8,057 20,381 16,193
Income tax expense 3,502 2,773 6,912 5,527
--------------- -------------- --------------- ---------------
Net income $ 6,867 $ 5,284 $ 13,469 $ 10,666
--------------- -------------- --------------- ---------------
Basic income per share data:
Net income $ 0.27 $ 0.21 $ 0.54 $ 0.43
Average shares outstanding 25,124 25,113 25,157 25,062
Diluted income per share data:
Net income $ 0.27 $ 0.20 $ 0.52 $ 0.41
Average common equivalent shares 25,729 25,876 25,771 25,872
Cash dividends declared per share $ 0.09 $ 0.08 $ 0.18 $ 0.15
The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>
<PAGE>
TRIANGLE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
IN THOUSANDS
UNAUDITED
<TABLE>
<CAPTION>
JUNE 30 JUNE 30
1999 1998
<S> <C> <C>
Cash flows from operating activities:
Net income $ 13,469 $ 10,666
Adjustments to reconcile net income to net cash provided by (used in)
operations:
Depreciation and amortization 4,156 3,925
Accretion of discount on investment securities,
net of amortization of premiums 3,023 870
Provision for loan losses 3,251 2,606
Gain on sale of investments (532) (472)
Gain on sale of loans (777) (811)
Gain on sale of other assets (73) -
Mortgage loans held for sale:
Originations (44,597) (30,550)
Sales 42,564 31,154
Provision (benefit) for deferred taxes (50) (50)
Change in other assets and liabilities:
Interest receivable (531) (885)
Other assets (2,308) 708
Interest payable 599 (1,219)
Other liabilities 343 (2,290)
---------------- -----------------
Net cash provided by operating activities 18,537 13,652
---------------- -----------------
Cash flows from investing activities:
Proceeds from maturities and principal paydowns of securities AFS 122,650 44,153
Proceeds from maturities and principal paydowns of securities HTM 11,525 26,342
Proceeds from sales of investment securities AFS 24,296 31,010
Purchases of investment securities AFS (190,023) (39,825)
Purchases of investment securities HTM - (14,446)
Purchase of bank owned life insurance (20,000) -
Cost of loan servicing rights (704) (181)
Net increase in loans made to customers (125,663) (27,417)
Proceeds from sale of other assets 855 -
Capital expenditures, bank premises and equipment, net (327) (3,062)
---------------- -----------------
Net cash provided by (used in) investing activities (177,391) 16,574
---------------- -----------------
Cash flows from financing activities:
Net increase in deposit accounts 125,610 34,690
Net increase in custodail accounts 2,226 2,779
Net increase (decrease) in short-term debt 36,837 (20,924)
Net decrease in FHLB advances (5,000) (59,500)
Repurchase of common stock (3,533) (846)
Cash paid for fractional shares - (17)
Cash dividends paid to shareholders (4,533) (3,915)
Shares issued under stock plans 1,149 2,260
---------------- -----------------
Net cash provided by (used in) financing activities 152,756 (45,473)
---------------- -----------------
Net (decrease) in cash and cash equivalents (6,098) (15,247)
Cash and cash equivalents at beginning of period 77,535 98,352
---------------- -----------------
Cash and cash equivalents at end of period $ 71,437 $ 83,105
================ =================
The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>
<PAGE>
TRIANGLE BANCORP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
For the Three and Six Months Ended June 30, 1999 and 1998
(Unaudited)
1. Financial statement presentation and management representation
--------------------------------------------------------------
The consolidated financial statements include the accounts and results
of operations of Triangle Bancorp, Inc. and its four wholly-owned
subsidiaries, Triangle Bank, Bank of Mecklenburg, Coastal Leasing LLC,
and Triangle Capital Trust. All significant intercompany transactions
and accounts are eliminated in consolidation.
The interim consolidated financial statements as of and for the six
months ended June 30, 1999 and 1998 are unaudited. In the opinion of
management, the consolidated financial statements contain all
adjustments, consisting of normal recurring adjustments, necessary to
present fairly, in all material respects, the consolidated financial
position as of June 30, 1999 and 1998, and the results of operations
and cash flows for the periods ended June 30, 1999 and 1998. The
results for the interim periods are not necessarily indicative of what
results will be for the year ended December 31, 1999.
2. Accounting for Derivative Instruments and Hedging Activities
------------------------------------------------------------
As of January 1, 1999 the Company adopted Statement of Financial
Accounting Standards No. 133, Accounting for Derivative Instruments and
Hedging Activities (FAS 133). FAS 133 requires that all derivative
instruments be recorded on the balance sheet at fair value. Changes in
the fair value of derivatives are recorded each period in current
earnings or other comprehensive income, depending on whether a
derivative is designated as part of a hedge transaction and, if it is,
the type of hedge transaction. FAS 133, as amended by Statement of
Financial Accounting Standards No. 137, Accounting for Derivative
Instruments and Hedging Activities-Deferral of the Effective Date of
FAS 133, is effective for all fiscal quarters of all fiscal years
beginning after June 15, 2000, with earlier adoption allowed.
As part of the adoption, the Company reclassified approximately $28
million of held to maturity securities to available for sale during the
first quarter of 1999. The adoption had no other significant effect on
the Company's results of operations or its financial position.
3. Comprehensive Income
------------------------------
The Company's only component of other comprehensive income relates to
unrealized gains or losses on available for sale securities.
Information concerning the Company's other comprehensive income (loss)
for the three and six months ended June 30, 1999 and 1998 follows (in
thousands):
<PAGE>
<TABLE>
<CAPTION>
For the three months ended June 30,
1999 1998
<S> <C> <C>
Net income $ 6,867 $5,284
Holding losses on available for sale securities, net
of taxes of $3,051 and $166, respectively (5,982) (324)
Reclassification of gains recognized in net income,
net of taxes of $81 and $147, respectively (159) (286)
--------------------------------
Other comprehensive loss (6,141) (610)
Comprehensive income $ 726 $ 4,674
--------------------------------
For the six months ended June 30,
1999 1998
Net income $ 13,469 $10,666
Holding losses on available for sale securities, net
of taxes of $(2,343) and $(1,058), respectively (4,566) (2,023)
Reclassification of gains recognized in net income,
net of taxes of $180 and $160, respectively (352) (312)
--------------------------------
Other comprehensive loss (4,918) (2,335)
Comprehensive income $ 8,551 $ 8,331
--------------------------------
</TABLE>
<PAGE>
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.
TRIANGLE BANCORP, INC.
Date: August 16, 1999 /s/ Michael S. Patterson
--------------- ------------------------
Michael S. Patterson,
President and CEO
Date: August 16, 1999 /s/ Debra L. Lee
--------------------- ----------------
Debra L. Lee,
Chief Financial Officer
<PAGE>
TRIANGLE BANCORP, INC.
EXHIBIT TABLE
PAGE
(27) Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1999 DEC-31-1999
<PERIOD-START> APR-01-1999 JAN-01-1999
<PERIOD-END> JUN-30-1999 JUN-30-1999
<CASH> 60,092 0
<INT-BEARING-DEPOSITS> 11,345 0
<FED-FUNDS-SOLD> 0 0
<TRADING-ASSETS> 0 0
<INVESTMENTS-HELD-FOR-SALE> 543,105 0
<INVESTMENTS-CARRYING> 41,667 0
<INVESTMENTS-MARKET> 41,893 0
<LOANS> 1,509,381 0
<ALLOWANCE> 20,606 0
<TOTAL-ASSETS> 2,285,333 0
<DEPOSITS> 1,751,508 0
<SHORT-TERM> 321,117 0
<LIABILITIES-OTHER> 27,961 0
<LONG-TERM> 19,953 0
0 0
0 0
<COMMON> 84,299 0
<OTHER-SE> 80,495 0
<TOTAL-LIABILITIES-AND-EQUITY> 2,285,333 0
<INTEREST-LOAN> 32,239 62,657
<INTEREST-INVEST> 7,756 15,076
<INTEREST-OTHER> 69 138
<INTEREST-TOTAL> 40,064 77,821
<INTEREST-DEPOSIT> 16,053 31,362
<INTEREST-EXPENSE> 20,739 39,638
<INTEREST-INCOME-NET> 19,685 38,183
<LOAN-LOSSES> 1,936 3,251
<SECURITIES-GAINS> 240 532
<EXPENSE-OTHER> 12,789 24,733
<INCOME-PRETAX> 10,369 20,381
<INCOME-PRE-EXTRAORDINARY> 10,369 20,381
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 6,867 13,469
<EPS-BASIC> .27 .54
<EPS-DILUTED> .27 .52
<YIELD-ACTUAL> 0 0
<LOANS-NON> 3,488 0
<LOANS-PAST> 5,472 0
<LOANS-TROUBLED> 0 0
<LOANS-PROBLEM> 0 0
<ALLOWANCE-OPEN> 19,682 19,584
<CHARGE-OFFS> 1,157 2,517
<RECOVERIES> 145 288
<ALLOWANCE-CLOSE> 20,606 20,606
<ALLOWANCE-DOMESTIC> 20,606 20,606
<ALLOWANCE-FOREIGN> 0 0
<ALLOWANCE-UNALLOCATED> 0 0
</TABLE>
