SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 2000
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
Commission file number 0-20908
PREMIER FINANCIAL BANCORP, INC.
(Exact name of registrant as specified in its charter)
Kentucky 61-1206757
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
115 N. Hamilton Street
Georgetown, Kentucky 40324
(address of principal executive officer) (Zip Code)
Registrant's telephone number (502) 863-1955
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 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 practical date.
Common stock - 5,232,230 shares outstanding at May 12, 2000.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
The accompanying information has not been audited by independent public
accountants; however, in the opinion of management such information reflects all
adjustments necessary for a fair presentation of the results for the interim
period. All such adjustments are of a normal and recurring nature.
The accompanying financial statements are presented in accordance with the
requirements of Form 10-Q and consequently do not include all of the disclosures
normally required by generally accepted accounting principles or those normally
made in the registrant's annual Form 10-K filing. Accordingly, the reader of the
Form 10-Q may wish to refer to the registrant's Form 10-K for the year ended
December 31, 1999 for further information in this regard.
Index to consolidated financial statements:
<TABLE>
<S> <C>
Consolidated Balance Sheets...................................................................... 3
Consolidated Statements of Income and Comprehensive Income....................................... 4
Consolidated Statements of Cash Flows............................................................ 5
Notes to Consolidated Financial Statements....................................................... 6
</TABLE>
<PAGE>
PREMIER FINANCIAL BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2000 AND DECEMBER 31, 1999
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999
---- ----
<S> <C> <C>
ASSETS
Cash and due from banks $ 22,865 $ 28,227
Interest earning balances with banks 1,435 1,634
------------- --------------
Cash and cash equivalents 24,300 29,861
Federal funds sold 26,813 25,197
Investment securities
Available for sale 161,873 151,787
Held to maturity 19,084 18,633
Loans 574,488 570,753
Unearned interest (400) (647)
Allowance for loan losses (7,626) (6,812)
------------- --------------
Net loans 566,462 563,294
Federal Home Loan Bank and Federal Reserve Bank stock 4,204 4,123
Premises and equipment, net 14,960 14,935
Real estate and other property acquired through foreclosure 2,835 3,019
Interest receivable 9,242 9,814
Goodwill and other intangibles 24,030 24,339
Other assets 7,734 7,466
------------- --------------
Total assets $ 861,537 $ 852,468
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Non-interest bearing $ 70,541 $ 68,490
Time deposits, $100,000 and over 104,975 99,292
Other interest bearing 528,696 525,061
------------- --------------
Total deposits 704,212 692,843
Securities sold under agreements to repurchase 21,790 21,282
Federal Home Loan Bank advances 30,307 32,647
Other borrowed funds 20,000 20,000
Interest payable 3,370 3,265
Other liabilities 1,535 1,554
------------- --------------
Total liabilities 781,214 771,591
Guaranteed preferred beneficial interests in Company's debentures 28,750 28,750
Stockholders' equity
Preferred stock, no par value; 1,000,000 shares authorized;
none issued or outstanding - -
Common stock, no par value; 10,000,000 shares authorized;
5,232,230 shares issued and outstanding 1,103 1,103
Surplus 43,445 43,445
Retained earnings 11,264 11,601
Accumulated other comprehensive income (4,239) (4,022)
------------- --------------
Total stockholders' equity 51,573 52,127
------------- --------------
Total liabilities and stockholders' equity $ 861,537 $ 852,468
============= ==============
</TABLE>
See Accompanying Notes to the Consolidated Financial Statements
3.
<PAGE>
PREMIER FINANCIAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999
---- ----
<S> <C> <C>
Interest income
Loans, including fees $ 13,359 $ 11,565
Investment securities
Taxable 2,416 2,484
Tax-exempt 357 355
Federal funds sold and other 479 381
----------- -----------
Total interest income 16,611 14,785
Interest expense
Deposits 7,663 6,560
Debt and other borrowings 1,862 1,507
----------- -----------
Total interest expense 9,525 8,067
Net interest income 7,086 6,718
Provision for possible loan losses 1,385 474
----------- -----------
Net interest income after provision for
possible loan losses 5,701 6,244
Non-interest income
Service charges 492 434
Insurance commissions 117 124
Investment securities gains 1 31
Other 376 349
----------- -----------
986 938
Non-interest expenses
Salaries and employee benefits 3,283 2,960
Occupancy and equipment expenses 772 685
Amortization of intangibles 393 448
Other expenses 1,672 1,427
----------- -----------
6,120 5,520
----------- -----------
Income before income taxes 567 1,662
Provision for income taxes 120 444
----------- -----------
Net income $ 447 $ 1,218
=========== ===========
Other comprehensive income (loss), net of tax:
Unrealized gains and (losses) arising during
the period $ (216) $ (519)
Reclassification of realized amount (1) (20)
----------- -----------
Net change in unrealized gain (loss) on
securities (217) (539)
----------- -----------
Comprehensive income $ 230 $ 679
=========== ===========
Earnings per share $ .09 $ .23
Earnings per share assuming dilution $ .09 $ .23
Weighted average shares outstanding 5,232 5,232
</TABLE>
See Accompanying Notes to the Consolidated Financial Statements
4.
<PAGE>
PREMIER FINANCIAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999
---- ----
<S> <C> <C>
Cash flows from operating activities
Net income $ 447 $ 1,218
Adjustments to reconcile net income to net cash
from operating activities
Depreciation 329 307
Provision for loan losses 1,385 474
Amortization, net 304 664
FHLB stock dividends (74) (60)
Investment securities losses (gains), net (1) (31)
Changes in
Interest Receivable 572 761
Other assets (156) (291)
Interest Payable 105 287
Other liabilities (18) 887
------------- -------------
Net cash from operating activities 2,893 4,216
Cash flows from investing activities
Purchases of securities available for sale (19,137) (62,640)
Proceeds from sales of securities available for sale 500 23,419
Proceeds from maturities and calls of securities available
for sale 8,230 34,402
Purchases of securities held to maturity (958) (1,600)
Proceeds from maturities and calls of securities held
to maturity 505 1,391
Purchases of FHLB stock (7) -
Net change in federal funds sold (1,616) 10,546
Net change in loans (4,627) (17,838)
Purchases of premises and equipment, net (355) (694)
Proceeds from sale of other real estate acquired
through foreclosure 258 237
Net cash received (paid) related to acquisitions - (8,579)
------------- ----------
Net cash from investing activities (17,207) (21,356)
Cash flows from financing activities
Net change in deposits 11,369 9,167
Advances from Federal Home Loan Bank 4,600 1,885
Repayment of Federal Home Loan Bank advances (6,940) (509)
Proceeds from other borrowed funds - 12,000
Net change in agreements to repurchase securities 508 (1,635)
Dividends paid (784) (785)
------------- -------------
Net cash from financing activities 8,753 20,123
------------- -------------
Net change in cash and cash equivalents (5,561) 2,983
Cash and cash equivalents at beginning of period 29,861 20,171
------------- -------------
Cash and cash equivalents at end of period $ 24,300 $ 23,154
============= =============
</TABLE>
See Accompanying Notes to the Consolidated Financial Statements
5.
<PAGE>
PREMIER FINANCIAL BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
--------------------------------------------------------------------------------
NOTE 1 - BASIS OF PRESENTATION
The consolidated financial statements include the accounts of Premier Financial
Bancorp, Inc. (the Company) and its wholly owned subsidiaries:
<TABLE>
<CAPTION>
Year March 31, 2000
Acquired Assets
-------- ------
(In Thousands)
<S> <C> <C>
Citizens Deposit Bank & Trust Vanceburg, Kentucky 1991 $ 131,085
Bank of Germantown Germantown, Kentucky 1992 27,952
Georgetown Bank & Trust Co. Georgetown, Kentucky 1995 58,696
Citizens Bank Sharpsburg, Kentucky 1995 48,536
Farmers Deposit Bank Eminence, Kentucky 1996 140,597
The Sabina Bank Sabina, Ohio 1997 56,543
Ohio River Bank Ironton, Ohio 1998 55,381
The Bank of Philippi, Inc. Philippi, West Virginia 1998 62,842
Boone County Bank, Inc. Madison, West Virginia 1998 143,475
The Bank of Mt. Vernon Mt. Vernon, Kentucky 1999 130,341
</TABLE>
The Company also has a data processing subsidiary, Premier Data Services, Inc.,
and PFBI Capital Trust subsidiary as discussed in Note 6. All intercompany
transactions and balances have been eliminated.
NOTE 2 - BUSINESS COMBINATIONS
On January 20, 1999, the Company acquired all of the outstanding shares of Mt.
Vernon Bancshares, Inc., Mt. Vernon, Kentucky, a one-bank holding company owning
all of the shares of Bank of Mt. Vernon (Mt. Vernon) for cash. Mt. Vernon offers
full service banking in the counties of Rockcastle, Pulaski, and Madison,
Kentucky. The total acquisition cost exceeded the fair value of net assets
acquired by approximately $4.5 million. The combination was accounted for as a
purchase and the results of operations of Mt. Vernon are included in the
consolidated financial statements from January 20, 1999. At date of acquisition,
Mt. Vernon had total assets of $129.5 million, total loans of $96.8 million, and
total deposits of $118.7 million.
CONTINUED
6.
<PAGE>
PREMIER FINANCIAL BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
--------------------------------------------------------------------------------
NOTE 3 - SECURITIES
Amortized cost and fair value of investment securities, by category, at
March 31, 2000 are summarized as follows:
<TABLE>
<CAPTION>
(In Thousands)
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
Available for sale
U. S. Treasury securities $ 3,425 $ - $ (10) $ 3,415
U. S. agency securities 140,488 - (5,317) 135,171
Obligations of states and political
Subdivisions 7,466 1 (103) 7,364
Mortgage-backed securities 13,990 - (839) 13,151
Preferred stock 2,000 - - 2,000
Other equity securities 925 - (153) 772
-------------- -------------- -------------- ---------------
Total available for sale $ 168,294 $ 1 $ (6,422) $ 161,873
============== ============== ============== ===============
Held to maturity
U. S. Treasury securities $ 500 $ - $ (1) $ 499
U. S. agency securities 1,234 - (40) 1,194
Obligations of states and political
Subdivisions 17,328 201 (237) 17,292
Mortgage-backed securities 22 1 - 23
-------------- -------------- -------------- ---------------
Total held to maturity $ 19,084 $ 202 $ (278) $ 19,008
============== ============== ============== ===============
</TABLE>
Amortized cost and fair value of investment securities, by category, at
December 31, 1999 are summarized as follows:
<TABLE>
<CAPTION>
(In Thousands)
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
Available for sale
U. S. Treasury securities $ 2,900 $ - $ (6) $ 2,894
U. S. agency securities 130,254 - (5,047) 125,207
Obligations of states and political
Subdivisions 7,468 - (114) 7,354
Mortgage-backed securities 14,333 - (776) 13,557
Preferred stock 2,000 - - 2,000
Other securities 925 - (150) 775
-------------- -------------- -------------- ---------------
Total available for sale $ 157,880 $ - $ (6,093) $ 151,787
============== ============== ============== ===============
Held to maturity
U. S. Treasury securities $ 500 $ - $ (1) $ 499
U. S. agency securities 1,233 - (29) 1,204
Obligations of states and political
Subdivisions 16,876 132 (150) 16,858
Mortgage-backed securities 24 - - 24
-------------- -------------- -------------- ---------------
Total held to maturity $ 18,633 $ 132 $ (180) $ 18,585
============== ============== ============== ===============
</TABLE>
CONTINUED
7.
<PAGE>
PREMIER FINANCIAL BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
--------------------------------------------------------------------------------
NOTE 4 - LOANS
Major classifications of loans at March 31, 2000 and December 31, 1999 are
summarized as follows:
<TABLE>
<CAPTION>
2000 1999
---- ----
(In Thousands)
<S> <C> <C>
Commercial, secured by real estate $ 141,185 $ 135,078
Commercial, other 96,205 98,543
Real estate construction 24,396 26,092
Residential real estate 198,097 192,088
Agricultural 12,960 17,525
Consumer and home equity 100,444 100,075
Other 1,201 1,352
------------ ------------
$ 574,488 $ 570,753
============ ============
</TABLE>
NOTE 5 - ALLOWANCE FOR LOAN LOSSES
Changes in the allowance for loan losses for the three months ended March 31,
2000 and 1999 are as follows:
<TABLE>
<CAPTION>
2000 1999
---- ----
<S> <C> <C>
Balance, beginning of period $ 6,812 $ 4,363
Acquired - 1,310
Net charge-offs (571) (401)
Provision for loan losses 1,385 474
------------ ------------
Balance, end of period $ 7,626 $ 5,746
============ ============
</TABLE>
NOTE 6 - GUARANTEED PREFERRED BENEFICIAL INTERESTS IN COMPANY'S
SUBORDINATED DEBENTURES
Guaranteed preferred beneficial interests in Company's debentures (Preferred
Securities) represent preferred beneficial interests in the assets of PFBI
Capital Trust (Trust). The Trust holds certain 9.75% junior subordinated
debentures due June 30, 2027 issued by the Company on June 9, 1997.
Distributions on the Preferred Securities is payable at an annual rate of 9.75%
of the stated liquidation amount of $25 per Capital Security, payable quarterly.
Cash distributions on the Preferred Securities are made to the extent interest
on the debentures is received by the Trust. In the event of certain changes or
amendments to regulatory requirements or federal tax rules, the Preferred
Securities are redeemable in whole. Otherwise, the Preferred Securities are
generally redeemable by the Company in whole or in part on or after June 30,
2002 at 100% of the liquidation amount. The Trust's obligations under the
Preferred Securities are fully and unconditionally guaranteed by the Company.
CONTINUED
8.
<PAGE>
PREMIER FINANCIAL BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
--------------------------------------------------------------------------------
NOTE 7 - STOCKHOLDERS' EQUITY
Dividend Limitations - The Company's principal source of funds for dividend
payments is dividends received from the subsidiary Banks. Banking regulations
limit the amount of dividends that may be paid without prior approval of
regulatory agencies. Under these regulations, the amount of dividends that may
be paid in any calendar year is limited to the current year's net profits, as
defined, combined with the retained net profits of the preceding two years,
subject to the capital requirements as discussed below. During 2000, the Banks
could, without prior approval, declare dividends of approximately $6.2 million
plus any 2000 net profits retained to the date of the dividend declaration.
Regulatory Matters - The Company and the subsidiary Banks are subject to various
regulatory capital requirements administered by the federal banking agencies.
Failure to meet minimum capital requirements can initiate certain mandatory and
possibly additional discretionary actions by regulators that, if undertaken,
could have a direct material effect on the Company's financial statements. Under
capital adequacy guidelines and the regulatory framework for prompt corrective
action, the Company and the Banks must meet specific guidelines that involve
quantitative measures of their assets, liabilities, and certain off-balance
sheet items as calculated under regulatory accounting practices.
These quantitative measures established by regulation to ensure capital adequacy
require the Company and Banks to maintain minimum amounts and ratios (set forth
in the following table) of Total and Tier I capital (as defined in the
regulations) to risk-weighted assets (as defined), and of Tier I capital (as
defined) to average assets (as defined). Management believes, as of March 31,
2000, the Company and the Banks meet all quantitative capital adequacy
requirements to which they are subject.
Shown below is a summary of regulatory capital ratios for the Company:
<TABLE>
<CAPTION>
Regulatory
March 31, December 31, Minimum
2000 1999 Requirements
---- ---- ------------
<S> <C> <C> <C>
Tier I Capital (to Risk-Weighted Assets) 8.8% 8.9% 4.0%
Total Capital (to Risk-Weighted Assets) 11.9% 11.9% 8.0%
Tier I Capital (to Average Assets) 6.0% 6.2% 4.0%
</TABLE>
The capital amounts and classifications are also subject to qualitative
judgments by the regulators. As a result of these qualitative judgments,
Citizens Deposit Bank (Citizens) entered into an agreement with the Federal
Reserve Bank (FRB) on December 14, 1999 restricting Citizens from declaring or
paying dividends if its Tier 1 capital to average assets falls below 8%. This
agreement, in effect until terminated by the FRB, is more restrictive than the
quantitative measures governing a bank's ability to pay dividends. Citizens Tier
I capital to average assets was 8.4% at March 31, 2000.
9.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
A. Results of Operations
Net income for the three months ended March 31, 2000 was $447,000 or $0.09
per share compared to net income of $1,218,000 or $0.23 per share for the three
months ended March 31, 1999. This $771,000 decrease is primarily the result of a
$911,000 increase in the provision for loan loss from $474,000 for the quarter
ended March 31, 1999 to $1,385,000 for the same period in 2000. Results for the
quarter reflect charges for amortization of goodwill and other intangibles
associated with cash acquisitions totaling $311,000 (after tax) as compared to
$343,000 (after tax) in the same period for 1999. Not including these charges,
net income for the first quarter 2000 was $758,000 or $0.14 per share versus
$1,561,000 or $0.30 per share in 1999.
Net interest income increased $368,000 to $7,086,000 for the three months
ended March 31, 2000 compared to $6,718,000 for the same period in 1999. Net
interest margin for the three months ending March 31, 2000 was approximately
3.73% as compared to 3.88% for the same period in 1999. The annualized returns
on stockholders' equity and on average assets were approximately 3.45% and .21%
for the three months ended March 31, 2000 compared to 8.93% and .64% for the
same period in 1999.
Non-interest income increased $48,000, or 5.1%, to $986,000 for the first
three months of 2000 compared to $938,000 for the first three months of 1999.
Non-interest expenses for the first quarter of 2000 totaled $6,120,000 or
2.9% of average assets on an annualized basis compared to $5,520,000 or 2.9% of
average assets for the same period of 1999. Contributing to this increase is the
inclusion of the Mt. Vernon acquisition for the full quarter in 2000 versus the
partial quarter for 1999.
Income tax expense was $120,000 for the first quarter of 2000 compared to
$444,000 for the first quarter of 1999. The decrease in income tax expense can
be attributed to the $1,095,000 decrease in income before taxes from $1,662,000
for the quarter ending March 31, 1999 to $567,000 for the same period in 2000.
The annualized effective tax rate for the period ended March 31, 2000 was 21.2%,
compared to the 26.7% effective tax rate for the same period in 1999.
B. Financial Position
Total assets increased $9.0 million or 1.1% to $861.5 million from the
$852.5 million on December 31, 1999. Earning assets increased to $787.5 million
on March 31, 2000 from $771.5 million on December 31, 1999, an increase of $16.0
million or 2.1%.
Cash and cash equivalents at March 31, 2000 were $24.3 million or a
$5.6 million decrease from $29.9 million on December 31, 1999. Fed funds sold
increased to $26.8 million from $25.2 million during the same period; an
increase of $1.6 million, or 6.3%.
10.
<PAGE>
Total loans at March 31, 2000 were $574.1 million compared to $570.1
million at December 31, 1999, an increase of $4.0 million.
Deposits totaled $704.2 million as of March 31, 2000, an increase of
$11.4 million, or 1.6%, over the December 31, 1999 amount of $692.8 million.
Noninterest bearing deposits increased $2.0 million, or 2.9%, and interest
bearing deposits increased $9.4 million, or 1.5%, during the period December 31,
1999 to March 31, 2000.
The following table sets forth information with respect to the
Company's nonperforming assets at March 31, 2000 and December 31, 1999.
<TABLE>
<CAPTION>
2000 1999
---- ----
(In Thousands)
<S> <C> <C>
Non-accrual loans $ 5,413 $ 4,540
Accruing loans which are contractually
past due 90 days or more 1,132 1,721
Restructured 462 666
-------------- ------------
Total non-performing loans 7,007 6,927
Other real estate acquired through
foreclosure 2,835 3,009
-------------- ------------
Total non-performing assets $ 9,842 $ 9,936
Non-performing loans as a percentage
of total loans 1.22% 1.22%
Non-performing assets as a percentage
of total assets 1.14% 1.17%
</TABLE>
The provision for possible loan losses and net chargeoffs were $1,385,000
and $571,000 for the first quarter of 2000 compared to $474,000 and $401,000,
respectively, for the first quarter of 1999. The increase in the provision for
loan losses was prompted by our loan growth, changes in loan mix, recent
experience and changes in the economy both locally and nationally. The allowance
for loan losses at March 31, 2000 was 1.33% of total loans as compared to 1.19%
at December 31, 1999.
C. Liquidity
Liquidity objectives for the Company can be expressed in terms of
maintaining sufficient cash flows to meet both existing and unplanned
obligations in a cost effective manner. Adequate liquidity allows the Company to
meet the demands of both the borrower and the depositor on a timely basis, as
well as pursuing other business opportunities as they arise. Thus, liquidity
management embodies both an asset and liability aspect while attempting to
maximize profitability. In order to provide for funds on a current and long-term
basis, the Company's subsidiary banks rely primarily on the following sources:
11.
<PAGE>
1. Core deposits consisting of both consumer and commercial
deposits and certificates of deposit of $100,000 or more.
Management believes that the majority of its $100,000 or more
certificates of deposit are no more volatile than its other
deposits. This is due to the nature of the markets in which the
subsidiaries operate.
2. Cash flow generated by repayment of loans and interest.
3. Arrangements with correspondent banks for purchase of unsecured
federal funds.
4. The sale of securities under repurchase agreements and borrowing
from the Federal Home Loan Bank.
5. Maintenance of an adequate available-for-sale security
portfolio. The Company owns $161.9 million of securities at
market value as of March 31, 2000. This reflects an increase of
$10.1 million or approximately 6.7% from the December 31, 1999
balance of $151.8 million.
The cash flow statements for the periods presented in the financial
statements provide an indication of the Company's sources and uses of cash as
well as an indication of the ability of the Company to maintain an adequate
level of liquidity.
D. Capital
At March 31, 2000, total shareholders' equity of $51.6 million was 6.0%
of total consolidated assets. This compares to total shareholders' equity of
$52.1 million or 6.1% of total consolidated assets on December 31, 1999.
Tier I capital totaled $50.3 million at March 31, 2000, which represents
a Tier I leverage ratio of 6.0%.
Book value per share was $9.86 at March 31, 2000, and $9.96 at December
31, 1999. An increase in unrealized loss on securities available for sale was
responsible for the decrease in accumulated other comprehensive income and
corresponding decrease in book value per share.
The Company declared a first quarter dividend of $0.15 per share, or
$784,835 payable March 31, 2000 to shareholders of record as of March 20, 2000.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The Company currently does not engage in any derivative or hedging
activity. Refer to the Company's 1999 10-K for analysis of the interest rate
sensitivity. The Company believes there have been no significant changes in the
interest rate sensitivity since previously reported 10-K.
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. Description of Document
----------- -----------------------
27 Financial Data Schedules
(b) Reports on Form 8-K No reports on Form 8-K
have been filed during
the quarter for which
the report is filed.
13.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Corporation has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PREMIER FINANCIAL BANCORP, INC.
Date: July 19, 2000 /s/ Marshall T. Reynolds
------------------------
Marshall T. Reynolds
Chairman of the Board
Date: July 19, 2000 /s/ Gardner E. Daniel
---------------------
Gardner E. Daniel
President & Chief Executive
Officer
14.
