<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
--------------------
FORM 10-QSB
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
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 0-20620
MIDWEST BANCSHARES, INC.
- - - -------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Delaware 42-1390587
- - - ------------------------------- -----------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
3225 Division Street, Burlington, Iowa 52601
- - - --------------------------------------- ----------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (319) 754-6526
-------------------
Indicate by check mark 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 issuer
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]
Transitional Small Business Format: Yes [ ] No [X]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common Stock 349,379
----------------- -----------------
Class Shares Outstanding
as of July 31, 1996
<PAGE>
MIDWEST BANCSHARES, INC. and SUBSIDIARIES
INDEX
-----------------
<TABLE>
<CAPTION>
Page
----
<S> <C>
Part I. Financial Information
Item 1 Financial Statements
Consolidated balance sheets June 30, 1996 and December 31, 1995 1
Consolidated statements of operations, for the three
months and six months ended June 30, 1996 and 1995 2
Consolidated statements of cash flows, for the six
months ended June 30, 1996 and 1995 3
Notes to consolidated financial statements 4
Item 2 Management's discussion and analysis of financial condition
and results of operations 5 through 9
Part II. Other Information 10
Signatures 11
Exhibit 11 Computation of per share earnings
Exhibit 27 Financial Data Schedule
</TABLE>
<PAGE>
MIDWEST BANCSHARES, INC. and SUBSIDIARIES
Consolidated Balance Sheets
(Dollars in thousands)
<TABLE>
<CAPTION>
June 30, 1996 December 31, 1995
------------- -----------------
<S> <C> <C>
Assets
Cash and cash equivalents $ 1,583 $ 2,305
Securities available for sale 25,604 19,711
Investment securities held to maturity
(estimated market value of $3,407 and $9,032) 3,463 9,058
Mortgage-backed securities held to maturity
(estimated market value of $22,233 and $22,393) 22,452 22,450
Loans receivable, net 79,463 74,035
Real estate owned and in judgment, net 196 33
Federal Home Loan Bank stock, at cost 1,960 1,960
Office property and equipment, net 2,440 2,315
Accrued interest receivable 1,004 875
Other assets 463 222
-------- --------
Total assets $138,628 $132,964
======== ========
Liabilities
Deposits $100,258 $101,334
Advances from Federal Home Loan Bank 28,000 20,500
Advances from borrowers for taxes and insurance 401 412
Accrued interest payable 117 72
Accrued expenses and other liabilities 608 750
-------- --------
Total liabilities $129,384 $123,068
-------- --------
Stockholders' equity
Serial preferred stock, $.01 par value,
500,000 shares authorized, none issued $ -- $ --
Common stock, $.01 par value, 2,000,000 shares
authorized, 455,000 issued and outstanding 5 5
Additional paid-in capital 4,037 4,037
Retained earnings, substantially restricted 7,848 7,403
Treasury stock, at cost, 105,621 shares
for 1996 and 86,170 shares for 1995 (2,211) (1,700)
Employee benefit plans (180) (190)
Unrealized (loss) appreciation on securities
available for sale, net of taxes on income (255) 341
-------- --------
Total stockholders' equity $ 9,244 $ 9,896
-------- --------
Total liabilities and stockholders' equity $138,628 $132,964
======== ========
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
MIDWEST BANCSHARES, INC. and SUBSIDIARIES
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest income:
Loans receivable $1,587 $1,413 $3,149 $2,807
Mortgage-backed securities 564 609 1,100 1,225
Investment securities 348 272 707 490
Deposits in other banks 13 26 28 52
Other interest-earning assets 34 34 67 67
------ ------ ------ ------
Total interest income 2,546 2,354 5,051 4,641
------ ------ ------ ------
Interest expense:
Deposits 1,160 1,179 2,334 2,284
Advances from FHLB and other borrowings 388 223 734 406
------ ------ ------ ------
Total interest expense 1,548 1,402 3,068 2,690
------ ------ ------ ------
Net interest income 998 952 1,983 1,951
Provision for losses on loans 12 12 24 24
------ ------ ------ ------
Net interest income after provision for losses on loans 986 940 1,959 1,927
------ ------ ------ ------
Non-interest income:
Fees and service charges 42 42 81 83
Gain on sale of securities available for sale 0 23 0 50
Other 76 7 88 16
------ ------ ------ ------
Total non-interest income 118 72 169 149
------ ------ ------ ------
Non-interest expense:
Compensation and benefits 275 287 576 595
Office property and equipment 82 85 170 166
Deposit insurance premiums 59 61 120 122
Data processing 41 42 82 84
Other 177 168 336 354
------ ------ ------ ------
Total non-interest expense 634 643 1,284 1,321
------ ------ ------ ------
Earnings before taxes on income 470 369 844 755
Taxes on income 169 124 308 249
------ ------ ------ ------
Net earnings $ 301 $ 245 $ 536 $ 506
====== ====== ====== ======
Earnings per share - primary and fully-diluted $ 0.81 $ 0.62 $ 1.41 $ 1.25
====== ====== ====== ======
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
MIDWEST BANCSHARES, INC. and SUBSIDIARIES
Consolidated Statements of Cash Flows
(Dollars in thousands)
<TABLE>
<CAPTION>
Six months ended June 30,
1996 1995
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net earnings $536 $506
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Provision for losses on loans 24 24
Proceeds from sale of loans originated for resale -- 128
Disbursements on loans originated for resale -- (95)
Depreciation 66 64
Gain on sale of investment securities -- (50)
Amortization of recognition and retention plan benefits 10 10
ESOP expense 22 17
Amortization of loan fees, premiums and discounts 55 66
Decrease (increase) in accrued interest receivable (129) (56)
Decrease (increase) in other assets 17 (82)
Increase (decrease) in accrued interest payable 46 33
Increase (decrease) in accrued expenses and other liabilities (62) (40)
------ ------
Net cash provided by operating activities 585 525
------ ------
Cash flows from investing activities:
Purchase of investment securities held to maturity -- (4,000)
Proceeds from maturities of investment securities 5,543 1,000
Proceeds from sale of available for sale securities -- 209
Purchase of investments available for sale (7,605) (3,000)
Purchase of loans (4,006) (668)
Purchase of mortgage-backed securities held to maturity (2,014) --
Principal repayments on mortgage-backed securities 2,757 2,343
Decrease (increase) in loans receivable (1,624) (46)
Proceeds from sale of real estate owned, net 27 310
Purchase of office property and equipment (191) (74)
------ ------
Net cash provided by (used in) investing activities (7,113) (3,926)
------ ------
Cash flows from financing activities:
Increase (decrease) in deposits (1,077) (986)
Proceeds from advances from FHLB 7,500 4,000
Treasury stock acquired (511) (893)
Payment of cash dividends (94) (93)
Net increase (decrease) in advances from borrowers
for taxes and insurance (12) (31)
------ ------
Net cash provided by (used in) financing activities 5,806 1,997
------ ------
Net increase (decrease) in cash and cash equivalents (722) (1,404)
Cash and cash equivalents at beginning of year 2,305 3,473
------ ------
Cash and cash equivalents at end of period $1,583 $2,069
====== ======
Supplemental disclosures:
Cash paid during the six months for:
Interest $3,023 $2,657
Taxes on income 351 281
Transfers from loans to real estate owned 191 97
====== ======
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
MIDWEST BANCSHARES, INC. and SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Significant Accounting Policies
The consolidated financial statements for the three months and six
months ended June 30, 1996 and 1995 are unaudited and do not include
information or footnotes necessary for a complete presentation of
financial condition, results of operations and cash flows in conformity
with generally accepted accounting principles. However, in the opinion
of management, the accompanying consolidated financial statements
contain all adjustments, which are of a normal recurring nature,
necessary for a fair presentation. The results of operations for the
interim periods are not necessarily indicative of the results which may
be expected for an entire year.
The accounting policies followed by the Company are set forth in Note 1
to the Company's consolidated financial statements contained in the
1995 Annual Report to stockholders and are incorporated herein by
reference.
<PAGE>
MIDWEST BANCSHARES, INC. and SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Midwest Bancshares, Inc. (the "Company") had net earnings of $301,000
and $536,000, or $0.81 and $1.41 per share, respectively, for the three months
and six months ended June 30, 1996, compared to $245,000 and $506,000, or $0.62
and $1.25 per share, for the same periods in 1995. The increases in net earnings
are discussed in more detail below.
Net Interest Income
Net interest income increased $46,000 and $32,000, respectively, for
the three months and six months ended June 30, 1996 over the comparable periods
in 1995. The Company's net interest rate spread was 2.75% and 2.70%,
respectively, for the three months and six months ended June 30, 1996 compared
to 2.74% and 2.81% for the comparable periods in 1995. The Company's net
interest margin on interest-earning assets was 2.99% for both the three months
and six months ended June 30, 1996 compared to 2.99% and 3.05% for the
comparable periods in 1995.
Interest income increased by $192,000 and $410,000 for the three months
and six months ended June 30, 1996, respectively, over the comparable periods in
1995. Average interest-earning assets increased by approximately $6.0 million
and $5.9 million for the three months and six months ended June 30, 1996,
respectively, compared to the same periods in 1995. The increases in average
interest-earning assets were primarily due to increases in loans outstanding and
increases in investments, primarily U.S. Agency bonds, funded by increases in
FHLB advances. The average yield on interest-earning assets increased by 24
basis points and 30 basis points, respectively, for the three months and six
months ended June 30, 1996, over the comparable periods in 1995. The increases
in average yield were primarily due to the purchase of investments and loans
yielding higher market interest rates and due to adjustable-rate loans and
mortgage-backed securities in the portfolio adjusting to higher rates in
response to higher market interest rates. Yield adjustments on the Company's
adjustable-rate portfolio occur periodically over time and may tend to lag
behind the changes experienced in the market. These adjustments may also be
limited by periodic and lifetime caps on such adjustments.
Interest expense increased by $146,000 and $378,000, respectively, for
the three months and six months ended June 30, 1996, over the comparable periods
in 1995. Average interest-bearing liabilities increased by approximately $6.1
million and $5.5 million for the three months and six months, respectively,
primarily due to increases of $10.8 million and $10.2 million in borrowings from
the FHLB, partially offset by decreases of $4.7 million and $4.7 million of
deposits, respectively. The decrease in average deposits was primarily the
result of the sale of $7.7 million of deposits in December, 1995. The average
rates paid on interest-bearing liabilities increased 24 basis points and 40
basis points for the three months and six months ended June 30, 1996,
respectively, over the comparable periods in 1995. The increases in average
rates paid were primarily due to deposits and FHLB advances repricing to higher
rates as a result of higher market interest rates. The changing mix of funding
sources also contributed to the increase in the cost of funds as the Company
increased its borrowings from the FHLB, in order to fund asset growth, at rates
which were generally higher than the overall cost of deposits.
Provision for Losses on Loans
The provision for losses on loans was $12,000 and $24,000 for the three
months and six months ended June 30, 1996 and 1995. The amount of provision was
a result of the determination by management to maintain the allowance for losses
on loans at an adequate level to absorb potential loan losses. At June 30, 1996
and 1995, the Company's allowance for losses on loans totaled $663,000 and
$652,000, respectively, or 0.83% and 0.91% of total loans, excluding
mortgage-backed securities, and 348.95% and 486.57% of total non-performing
loans. The latter ratio was impacted by a $64,000 increase in non-performing
loans from $126,000 at June 30, 1995 to $190,000 at June 30, 1996.
<PAGE>
MIDWEST BANCSHARES, INC. and SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations (continued)
Provision for Losses on Loans (continued)
Management does not believe this represents a significant trend of increasing
delinquencies. The Company had net charge-offs of zero and $37,000,
respectively, during the three months and six months ended June 30, 1996
compared to $22,000 for the three months and six months ended June 30, 1995.
Non-interest income
Total non-interest income increased by $46,000 and $20,000 for the
three months and six months ended June 30, 1996 compared to the same periods in
1995. The increases were primarily the result of a $59,000 cash distribution
received from the Company's data processor in June, 1996, partially offset by a
$23,000 and a $50,000 gain on the sale of marketable equity securities for the
three months and six months ended June 30, 1995 with no comparable gains in
1996. Also contributing to the increase in non-interest income for the three
months and six months ended June 30, 1996 were increases of $9,000 and $10,000
in commissions on the sale of insurance products due to the offering rates on
these products becoming more attractive relative to other investment
alternatives.
Non-interest expenses
Total non-interest expenses decreased by $9,000 and $37,000 for the
three months and six months ended June 30, 1996 compared to the same periods in
1995. The decrease for the three months ended June 30, 1996 was primarily the
result of a $12,000 decrease in compensation and benefits, partially offset by
an increase in other non-interest expenses. The decrease for the six months
ended June 30, 1996 was primarily the result of a $16,000 decrease in real
estate owned expense, primarily due to a $10,000 gain on sale of an REO
property, and a $19,000 decrease in compensation and benefits. The decreases in
compensation and benefits were primarily due to increased loan production due to
more favorable borrowing rates, primarily in the first quarter, which resulted
in increased loan fees of $10,000 and $28,000 for the three months and six
months ended June 30, 1996, respectively, which offset the cost of originating
loans, primarily compensation and benefits.
Taxes on Income
Taxes on income were $45,000 and $59,000 more for the three months and
six months ended June 30, 1996, than the comparable periods in 1995. The
increases were primarily due to increased taxable income and due to accruing
taxes at the full corporate tax rate for 1996, whereas the tax rate for 1995 was
reduced by the percentage of taxable income method of deducting bad debt losses.
Financial Condition
The Company's total assets at June 30, 1996 were $138.6 million,
increasing from $133.0 million at December 31, 1995. The increase was due to an
intentional increase in interest-earning assets in an effort to increase net
interest income. The increase of approximately $5.6 million was primarily due to
the purchase of $7.6 million of securities available for sale, the purchase of
$2.0 million of mortgage-backed securities to be held to maturity, the purchase
of $4.0 million in loans receivable, and the net origination of loans receivable
of $1.6 million, partially offset by maturities of $5.5 million of investment
securities held to maturity, and principal repayments of $2.8 million from
mortgage-backed securities. The increase in total assets was funded by borrowing
$7.5 million in advances from the FHLB, partially offset by a decrease in
deposits of $1.1 million. Cash of $511,000 was used to acquire 5% of the
<PAGE>
MIDWEST BANCSHARES, INC. and SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Financial Condition (continued)
Company's common stock during the six months ended June 30, 1996 pursuant to the
Company's stock repurchase program. Loan originations during the six months
ended June 30, 1996 totaled $5.9 million more than in the same period in 1995.
The increase was primarily due to a more favorable lending market due to lower
loan rates in the first quarter of 1996 compared to the first quarter of 1995.
Total stockholders' equity decreased $652,000 due to the $511,000
purchase of treasury stock and the $596,000 change in net unrealized losses on
investments available for sale, offset by the $536,000 net earnings for the
period less $91,000 in dividends declared during the period.
Liquidity and Capital Resources
The Company's principal sources of funds are deposits and advances from
FHLB, amortization and prepayment of loan principal (including mortgage-backed
securities), sales or maturities of investment securities, mortgage-backed
securities and short-term investments and operations. While scheduled loan
repayments and maturing investments are relatively predictable, deposit flows
and early loan repayments are more influenced by interest rates, general
economic conditions and competition. The Company generally manages the pricing
of its deposits to maintain a steady deposit balance, but has from time to time
decided not to pay deposit rates that are as high as those of its competitors,
and, when necessary, to supplement deposits with longer term and/or less
expensive alternative sources of funds.
Federal regulations require the Association to maintain minimum levels
of liquid assets consisting of cash and other eligible investments. The required
percentage is currently 5% of net withdrawable savings deposits and borrowings
payable on demand or in one year or less during the preceding calendar quarter.
For June 1996, the Association's liquidity ratio was 10.9% compared to 23.4% for
December 1995. The decrease was primarily due to the purchase of investment
securities available for sale, which, because of their maturity term, did not
qualify as liquid investments and due to the use of liquid assets to fund an
increase in the loan portfolio. Assuming market interest rates stabilize or
decrease, a high level of liquidity may have a negative effect on the
Association's interest rate spread due to a larger amount of the Association's
assets earning the then-current lower rates of interest. However, a high level
of liquidity positions the Association to respond to possible higher interest
rates by providing the Association with the ability to deploy liquid assets into
higher yielding assets as rates increase. The Association intends to deploy
liquid assets by increasing its loan portfolio; however, its ability to do so
depends on the loan demand in its market areas, competition for such loans, to
the extent they meet the Association's underwriting guidelines, and
opportunities for participating in loans in nearby markets.
Liquidity management is both a daily and long-term responsibility of
management. The Association adjusts its investments in liquid assets based upon
management's assessment of (i) expected loan demand, (ii) expected deposit
flows, (iii) yields available on interest-bearing deposits, and (iv) the
objectives of its asset/liability management strategy. Excess liquidity is
invested generally in interest-bearing overnight deposits and other short-term
government and agency obligations. If the Association requires funds beyond its
ability to generate them internally, it has additional borrowing capacity with
the Federal Home Loan Bank.
The Association anticipates that it will have sufficient funds
available to meet current loan and purchase commitments. At June 30, 1996, the
Association had outstanding commitments to extend credit totaling $0.9 million
and to purchase loans totaling $0.6 million.
<PAGE>
MIDWEST BANCSHARES, INC. and SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources (continued)
At June 30, 1996, the Association had tangible and core capital of $8.7
million, or 6.32% of total adjusted assets which exceeded the regulatory
requirements of 1.5% and 3.0%, respectively, by $6.7 million and $4.6 million,
respectively. The risk-based capital requirement is currently 8% of
risk-weighted assets. As of June 30, 1996, the Association had risk-weighted
assets of $58.2 million, a risk-based requirement of $4.7 million and risk-based
capital of $9.4 million, or 16.17%, which exceeds the requirement by $4.8
million.
Regulatory Capital Table
<TABLE>
<CAPTION>
(Dollars in thousands)
Tangible Core Risk-based
Capital Capital Capital
-------- ------- -------
<S> <C> <C> <C>
Association's capital $8,745 $8,745 $8,745
Additional capital - general allowances -- -- 663
------ ------ ------
Regulatory capital $8,745 $8,745 $9,408
Minimum capital requirement 2,075 4,149 4,655
------ ------ ------
Excess regulatory capital $6,670 $4,596 $4,753
====== ====== ======
</TABLE>
The unrealized (loss) appreciation on securities available for sale,
which is a component of stockholders' equity, is a result of the implementation
of Statement No. 115 of the Financial Accounting Standards Board. At June 30,
1996, the net unrealized loss of $255,000, down from a net gain of $341,000 at
December 31, 1995, consisted primarily of the net unrealized market loss, net of
tax, due to increased market interest rates, on certain GNMA mortgage-backed
securities, U.S. Agency securities, and marketable equity securities which have
been identified as available for sale by management.
Proposed Regulatory Action Regarding Insurance Assessments
The deposits of the Association are presently insured by the Savings
Association Insurance Fund (the "SAIF"), which together with the Bank Insurance
Fund (the "BIF"), are the two insurance funds administered by the Federal
Deposit Insurance Corporation (the "FDIC"). Effective in the third quarter of
1995, the FDIC revised the premium schedule for BIF-insured banks to provide a
range of .04% to .31% of deposits (as compared to the current range of .23% to
.31% of deposits for SAIF-insured institutions). In addition, in November 1995,
the FDIC further revised the schedule to provide a range of 0% to .27% (with a
minimum annual premium of $2,000), effective January 1996. As a result, BIF
members generally pay significantly lower premiums than SAIF members. While the
magnitude of the competitive advantage of BIF-insured institutions and its
impact on the Association's results of operations cannot be determined at this
time, the decrease in BIF premiums could place the Association at a material
competitive disadvantage should BIF members seek to price deposits higher or
loan products lower than SAIF members. The Association currently qualifies for
the minimum SAIF premium level of .23% of deposits.
<PAGE>
MIDWEST BANCSHARES, INC. and SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Proposed Regulatory Action Regarding Insurance Assessments (continued)
Proposed federal legislation provides for a one-time assessment
estimated to be .80% to .90%, to be imposed on all SAIF assessable deposits as
of March 31, 1995, including those held by commercial banks, and for BIF deposit
insurance premiums to be used to pay the Financing Corporation ("FICO") bond
interest on a pro rata basis together with SAIF premiums in order to
recapitalize the SAIF and eliminate the disparity. The BIF and the SAIF would be
merged effective January 1, 1998. If the legislation is enacted, it is
anticipated the assessment would be payable in the fall of 1996.
As part of the legislation, the Congress is considering requiring all
federal thrift institutions, such as the Association, to either convert to a
national bank or a state-chartered depository institution by January 1, 1998. In
addition, the Company would no longer be regulated as a thrift holding company,
but rather as a bank holding company. Certain aspects of the legislation remain
unresolved and therefore no assurance can be given as to what extent it will
affect the Company and the Association.
<PAGE>
MIDWEST BANCSHARES, INC.
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
---------------------------------------------------
(a) Annual meeting date: April 29, 1996
(c) The matters approved by stockholders at the meeting and number of
votes cast for, against or withheld (as well as the number of
abstentious and broker non-votes) as to each matter are set
forth below:
<TABLE>
<CAPTION>
Proposal Number of Votes
-------- ---------------
Broker
For Withheld Non-vote
--- -------- --------
<S> <C> <C> <C>
Election of the following directors for
three-year terms:
1. Henry L. Hirsch 317,930 1,041 1,600
2. Robert D. Maschmann 318,160 811 1,600
</TABLE>
<TABLE>
<CAPTION>
Broker
For Against Abstain Non-vote
--- ------- ------- --------
<S> <C> <C> <C> <C>
Ratification of the appointment of
KPMG Peat Marwick LLP as auditors for
fiscal year ending December 31, 1996 312,946 500 5,525 1,600
</TABLE>
Item 5. Other Information
-----------------
None.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits:
Exhibit 11 Computation of Per Share Earnings
Exhibit 27 Financial Data Schedule
(b) There were no reports on Form 8-K filed during the quarter for
which this report is filed.
<PAGE>
Signatures
Pursuant to the requirement 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.
MIDWEST BANCSHARES, INC.
Registrant
Date: July 31, 1996 /s/ William D. Hassel
-------------------- -------------------------------------
William D. Hassel
President and Chief Executive Officer
(Principal Executive Officer)
Date: July 31, 1996 /s/ Robert D. Maschmann
-------------------- -------------------------------------
Robert D. Maschmann
Executive Vice President and
Chief Financial Officer
(Principal Financial and
Accounting Officer)
<PAGE>
Index to Exhibits
Sequentially
Numbered Page
Exhibit Where Attached
Number Exhibits are Located
- - - ------- --------------------
11 Computation of Per Share Earnings
27 Financial Data Schedule
<PAGE>
EXHIBIT 11
Statement Regarding Computation of Per Share Earnings
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, 1996 June 30, 1996
------------------ ----------------
<S> <C> <C>
Net earnings $ 301,235 $ 535,862
========= =========
Primary earnings per share:
Weighted average shares outstanding 350,601 358,298
Average option shares granted 34,125 34,125
Less assumed purchase of shares
using treasury method (13,014) (13,014)
-------- --------
Common and common equivalent shares outstanding 371,712 379,409
========= =========
Earnings per common share -- primary $ 0.81 $ 1.41
========= =========
Fully-diluted earnings per share:
Weighted average shares outstanding 350,601 358,298
Average option shares granted 34,125 34,125
Less assumed purchase of shares
using treasury method (12,639) (12,639)
--------- ---------
Common and common equivalent shares outstanding 372,087 379,784
========= =========
Earnings per common share -- fully-diluted $ 0.81 $ 1.41
========= =========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
QUARTERLY REPORT ON FORM 10-QSB FOR THE FISCAL QUARTER ENDED JUNE 30, 1996 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-END> Jun-30-1996
<CASH> 618
<INT-BEARING-DEPOSITS> 965
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 25,604
<INVESTMENTS-CARRYING> 25,915
<INVESTMENTS-MARKET> 25,640
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<DEPOSITS> 100,258
<SHORT-TERM> 8,000
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<LONG-TERM> 20,000
<COMMON> 9,244
0
0
<OTHER-SE> 0
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<INTEREST-LOAN> 3,149
<INTEREST-INVEST> 1,902
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 5,051
<INTEREST-DEPOSIT> 2,334
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<INTEREST-INCOME-NET> 1,983
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<INCOME-PRE-EXTRAORDINARY> 844
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<CHANGES> 0
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<EPS-PRIMARY> 1.41
<EPS-DILUTED> 1.41
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<LOANS-PAST> 0
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<RECOVERIES> 0
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<ALLOWANCE-DOMESTIC> 350
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 313
</TABLE>
