<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(mark one)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended MARCH 31, 1999
OR
[ ] TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from _________ to _________
Commission File Number 0-24024
---------
First Community Financial Group, Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Washington 91-1277503
--------------------------------- ------------------------------------
(State or other jurisdiction (IRS Employer Identification Number)
of incorporation or organization)
721 College Street. SE, P.O. Box 3800, Lacey, WA 98509
------------------------------------------------------
(Address of principal executive offices)
Issuer's telephone number: (360) 459-1100
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 past 12 months (or for such shorter periods 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.
Title of Class Outstanding at March 31, 1999
-------------- -----------------------------
Common Stock 2,139,918
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FIRST COMMUNITY FINANCIAL GROUP, INC.
Table of Contents
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PART I - FINANCIAL INFORMATION Page
<S> <C> <C>
Item 1 Financial Statements
Condensed Consolidated Balance Sheets 3
Condensed Consolidated Statements of Income and Comprehensive
Income 4
Condensed Consolidates Statement of Stockholders' Equity 5
Condensed Consolidated Statements of Cash Flows 6
Notes to Condensed Consolidated Financial Statements 7
Item 2 Management's Discussion and Analysis of Financial Condition and
Results of Operations 8
Item 3 Year 2000 Issues 10
PART II - OTHER INFORMATION
Item 6 Exhibits and Reports on Form 8-K 12
SIGNATURES 13
</TABLE>
<PAGE>
FIRST COMMUNITY FINANCIAL GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(DOLLARS IN THOUSANDS)
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<TABLE>
<CAPTION>
MARCH 31 DECEMBER 31
1999 1998
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<S> <C> <C>
ASSETS
Cash and due from banks $13,395 $ 12,315
Interest bearing deposits in banks 100 127
Federal funds sold 17,705 2,815
Securities available for sale 34,315 35,418
Securities held to maturity 677 677
Loans held for sale 3,559 4,456
Loans 197,310 194,361
Allowance for credit losses 2,396 2,290
NET LOANS 194,914 192,071
Premises and equipment 9,863 9,474
Goodwill 7,391 7,493
Other assets 6,908 6,720
TOTAL ASSETS $288,827 $271,566
LIABILITIES
Deposits:
Non-interest bearing $46,232 $ 46,538
Interest bearing 205,612 189,049
TOTAL DEPOSITS 251,844 235,587
Long term debt 2,714 3,308
Other liabilities 2,962 2,330
TOTAL LIABILITIES 257,520 241,225
STOCKHOLDERS' EQUITY
Common stock, par value $2.50 per share; 5,350 5,315
10,000,000 shares authorized, 2,139,918 shares issued
in 1999, and 2,126,147 shares issued in 1998
Surplus 22,950 22,849
Retained earnings 3,431 2,757
Accumulated other comprehensive income 90 28
Guaranteed KSOP obligation (514) (608)
TOTAL STOCKHOLDERS' EQUITY 31,307 30,341
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $288,827 $271,566
</TABLE>
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
FIRST COMMUNITY FINANCIAL GROUP, INC. AND SUBSIDIARIES
- --------------------------------------------------------------------------------
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
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<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
1999 1998
<S> <C> <C>
INTEREST INCOME
Interest and fees on loans $ 4,737 $ 4,897
Federal funds sold and deposits in banks 46 203
Investments 517 787
TOTAL INTEREST INCOME 5,300 5,887
INTEREST EXPENSE
Deposits 1,704 2,308
Other 45 56
TOTAL INTEREST EXPENSE 1,749 2,364
NET INTEREST INCOME 3,551 3,523
PROVISION FOR CREDIT LOSSES 120 130
NET INTEREST INCOME AFTER PROVISION FOR POSSIBLE
CREDIT LOSSES 3,431 3,393
NON-INTEREST INCOME
Service charges on deposit accounts 459 479
Origination fees on mortgage loans sold 298 301
Other income 313 310
TOTAL NON-INTEREST INCOME 1,070 1,090
NON-INTEREST EXPENSE
Salaries and employee benefits 1,966 1,965
Occupancy and equipment 570 571
Other expense 966 911
TOTAL NON-INTEREST EXPENSE 3,502 3,447
OPERATING INCOME BEFORE INCOME TAXES 999 1,036
Income Taxes 325 320
NET INCOME $ 674 $ 716
OTHER COMPREHENSIVE INCOME, NET OF TAX:
Unrealized holding gains (losses) on securities
arising during the period 62 (13)
COMPREHENSIVE INCOME $ 736 $ 703
EARNINGS PER SHARE DATA
BASIC EARNINGS PER SHARE $ .32 $ .35
DILUTED EARNINGS PER SHARE $ .30 $ .32
Weighted average number of common shares outstanding 2,098,044 2,045,356
Weighted average number of common shares outstanding,
Including dilutive stock options 2,261,764 2,205,009
Return on average assets 1.00% 0.93%
</TABLE>
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
FIRST COMMUNITY FINANCIAL GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders' Equity (Unaudited)
(DOLLARS IN THOUSANDS)
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Year Ended December 31, 1998 and Three Months Ended March 31, 1999
<TABLE>
<CAPTION>
ACCUMULATED
OTHER GUARANTEED
COMMON RETAINED COMPREHENSIVE KSOP
STOCK SURPLUS EARNINGS INCOME OBLIGATION TOTAL
<S> <C> <C> <C> <C> <C> <C>
Balance, December 31,
1997 $4,988 $20,459 $ 1,596 $ 68 $(946) $26,165
Net income -- -- 3,605 -- -- 3,605
Stock options exercised 89 188 -- -- -- 277
5% stock dividend 248 2,182 (2,444) -- -- (14)
Stock repurchased (10) (70) -- -- -- (80)
Other comprehensive
income -- -- -- (40) -- (40)
Income tax benefit from
exercise of stock
options -- 80 -- -- -- 80
Compensation expense for
issuance of stock
options -- 10 -- -- -- 10
Net decrease in
guaranteed KSOP
obligation -- -- -- -- 338 338
BALANCE, DECEMBER 31,
1998 5,315 22,849 2,757 28 (608) 30,341
Net income -- -- 674 -- -- 674
Stock options exercised 35 101 -- -- -- 136
Other comprehensive
income -- -- -- 62 -- 62
Net decrease in
guaranteed KSOP
obligation -- -- -- -- 94 94
BALANCE, MARCH 31, 1999 $5,350 $22,950 $ 3,431 $ 90 $(514) $31,307
</TABLE>
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
FIRST COMMUNITY FINANCIAL GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(DOLLARS IN THOUSANDS)
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<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
1999 1998
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 674 $ 716
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for credit losses 120 130
Depreciation and amortization 279 294
Amortization of goodwill 102 102
Other -- net 451 802
Originations of loans held for sale (9,685) (8,878)
Proceeds from sales of loans held for sale 10,582 7,111
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,523 277
CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease in interest bearing deposits in banks 27 4,686
Net increase in Federal funds sold (14,890) (31,000)
Proceeds from sales of available-for-sale securities 5,884 8,984
Purchase of available-for-sale securities (4,632) (14,926)
Proceeds from maturities of held-to-maturity
securities 0 50
Net (increase) decrease in loans (2,963) 7,025
Additions to premises and equipment (668) (80)
NET CASH (USED) BY INVESTING ACTIVITIES (17,242) (25,261)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits 16,257 26,411
Sale of common stock 136 0
Repayment of long-term borrowings (94) (53)
Repayment of short-term borrowings (500) 0
NET CASH PROVIDED BY FINANCING ACTIVITIES 15,799 26,358
NET CHANGE IN CASH AND DUE FROM BANKS 1,080 1,374
CASH AND DUE FROM BANKS:
Beginning of period 12,315 11,620
END OF PERIOD $ 13,395 $ 12,994
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
CASH PAYMENTS FOR:
Interest $ 1,809 $ 2,392
Taxes 200 30
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING
ACTIVITIES:
Other real estate acquired in settlement of loans 334 943
Increase (decrease) in guarantee of KSOP obligation (94) (30)
</TABLE>
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
FIRST COMMUNITY FINANCIAL GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principals for
interim financial information and with instructions to Form 10-KSB and Rule
10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
adjustments considered necessary for a fair presentation (consisting of
normally recurring accruals) have been included. Operating results for the
three months ended March 31, 1999 are not necessarily indicative of the
results anticipated for the year ended December 31, 1999.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
2. BASIC AND DILUTED EARNINGS PER SHARE
Basic and diluted earnings per share are calculated by dividing net income by
the weighted average number of common shares outstanding during the periods
presented. Diluted earnings per share assumes that all dilutive stock options
outstanding are issued such that their dilutive effect is maximized.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
This discussion contains certain forward-looking statements within the
meaning of the federal securities laws. Actual results and the timing of
certain events could differ materially from those projected in the
forward-looking statements due to a number of factors.
FINANCIAL CONDITION
OVERVIEW
The Company's consolidated total assets at March 31, 1999 of $288,827,000
represents a 6.4% increase over December 31, 1998 assets of $271,566,000. The
increased assets at March 31 is primarily a reflection of a deposit of
approximately $15,000,000 at the end of the quarter. This deposit was
withdrawn the following week returning deposits to normal levels for the
first quarter. Excluding this temporary deposit, deposits increased 0.5% for
the quarter.
The corresponding effect of the deposit referred to was the increase in
Federal funds sold. Due to the size and the short term nature of the deposit,
the funds were kept in Federal funds sold for liquidity purposes. Without the
$15,000,000 in additional Federal funds sold, the balance would be comparable
to the balance maintained at December 31, 1998.
Loan balances in aggregate, net of loan loss reserve, increased by
$1,946,000, or 1.0%, to $198,473,000. The loan to deposit ratio decreased to
79.8% from 84.4% at December 31, 1998. The reduction in this ratio was caused
by the temporary deposit discussed previously. Had this deposit not affected
the deposit balances, the ratio would have increased slightly to 84.8%. The
average loan to deposit ratio through March 31, 1999 was 84.6%.
Nonperforming assets were as follows (dollars in thousands):
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<CAPTION>
MARCH 31 DECEMBER 31
1999 1998
<S> <C> <C>
Non-accrual loans $1,027 $2,492
Accruing loans past due 90 days or more 121 471
Foreclosed real estate 2,294 2,096
$3,442 $5,059
</TABLE>
Total nonperforming assets decreased 32%, or $1,617,000. Non-accrual loans
decreased $1,465,000, primarily due to the negotiated settlement of a loan
position. Additional activity included a payoff from another financial
institution re-financing a loan and two transfers of loans to foreclosed real
estate. Collection efforts led to a $350,000 decrease in accruing loans past
due 90 days or more. The increase of $198,000 in foreclosed real estate
resulted from the transfer of two loans from non-accrual status, reduced by
the sale of a property that had been included in the December 31, 1998
balance.
The allowance for credit losses reflects management's current estimate of the
amount required to absorb losses on existing loans and commitments to extend
credit. Determination of the appropriate level of the allowance is based on
an analysis of various factors including historical loss experience based on
volumes and types of loans; volumes and trends in delinquencies and
non-accrual loans; trends in portfolio volume; results of internal and
independent external credit reviews; and anticipated economic conditions. An
analysis of the adequacy of the allowance is subject to quarterly review by
the Board of Directors. Based on this analysis, management considers the
allowance for credit losses to be adequate.
The allowance for credit losses increased $106,000 in the first quarter of
1999. The ratio of allowance for credit losses to total loans was increased
slightly to 1.21% from 1.18% at December 31, 1998. The dollar value change in
the allowance consisted of $120,000 of provisions, offset by $14,000 in net
charge offs.
<PAGE>
Investment securities have decreased by $1,103,000, or 3.1% during the first
quarter to total $34,315,000. Portfolio balances have decreased as a result
of the maturity of securities in the portfolio and principal payments on
mortgage backed and related issues. Portfolio balances are managed in
conjunction with the remainder of the balance sheet and support the lending
and depository functions of the Bank. Balances will increase and decrease as
resource demands and liquidity dictates. The securities are highly marketable
and are a primary source of liquidity for the Company.
CAPITAL
Consolidated capital of FCFG increased $966,000 during the first quarter of
1999. The net income for the first quarter and its corresponding increase to
retained earnings was the primary component of this increase. The exercising
of stock options, the reduction in the guaranteed KSOP obligation and an
increase in other comprehensive income, essentially the excess market value
of the security portfolio net of tax implications, provided the balance of
this increase.
There are regulatory constraints placed upon capital adequacy, and it is
necessary to maintain an appropriate ratio between capital and assets.
Regulations require banks and holding companies to maintain a minimum
"leverage" ratio (primary capital ratio) of total assets. For the most highly
rated holding companies this ratio must be at least 3%, and for others it
must be 4 to 5%. At March 31, 1999, the Company's leverage ratio was 9.26%,
compared to 8.59% at year-end 1998. For regulatory purposes, the associated
goodwill is treated as a reduction of capital. In addition, banks and holding
companies are required to meet minimum risk-based capital guidelines under
which risk percentages are assigned to various categories of assets and
off-balance-sheet items to calculate a risk-adjusted capital ratio. Tier I
capital generally consists of common stockholders' equity, less goodwill,
while Tier II capital includes the allowance for possible credit losses,
subject to 1.25% limitation of risk-adjusted assets. The rules require Tier
II capital of 4% of risk-adjusted assets and total capital (combined Tier I
and Tier II) of 8%. At March 31, 1999, the Tier I capital ratio was 10.43%,
and total capital was 11.45%.The similar ratios at December 31, 1998 were a
Tier I capital ratio of 10.60% and a total capital ratio of 11.64%.
RESULTS OF OPERATIONS
GENERAL
Net income for the three months ended March 31, 1999 was $674,000, compared
to $716,000 for the three months ended March 31, 1998. Net interest income
for the three months ended March 31, 1999 increased $38,000, or 1.1% over the
comparable period in 1998. The net interest margin increased 56 basis points
from 5.55% to 6.11% over these periods.
Interest income for the three months ended March 31, 1999 decreased $587,000
over the three months ended March 31, 1998. Of this decrease, approximately
$493,000 is attributed to a reduction in the average volume of earning assets
along with a decrease of $94,000 from the 15 basis point decrease in the
aggregate yield on earning assets from 9.27% to 9.12%. The aggregate rate,
despite a reduction from prior year aggregate yield, benefited from a
favorable weighting of the mix of earning assets toward loans, the higher
yielding of earning assets. In the first quarter of 1998, average loan
balances amounted to 75.5% of the average earning assets, with the balance
being made up of investments and federal funds sold. In contrast, the average
loan balance made up 83.9% of the average earning assets for the first
quarter of 1999.
Total interest expense for the three months ended March 31, 1999 decreased
over the comparable period of the prior year by $615,000, or 26%. Of this
decrease, approximately $319,000 was due to a decrease in the average volume
of interest bearing liabilities. A 57 basis point decrease in the aggregate
cost of funds from 4.27% to 3.70% resulted in an additional reduction to
interest expense of $296,000.
Non-interest income for the quarter ended March 31, 1999 was $20,000, or 1.8%
less than the same period for 1998. This amount is attributed to the
reduction in service charges on deposit accounts. While origination fees on
mortgage loans sold decreased by $3,000, other non-interest income increased
by $3,000.
<PAGE>
Non-interest expenses for the first quarter of 1999 increased by $55,000, or
1.6% over the first quarter of 1998. Salaries and employee benefits and
occupancy and equipment were effectively equal during the two time periods.
Salaries and benefits increased by $1,000 while occupancy and equipment
expense declined by $1,000. Other expenses increased by $55,000, or 6.0%.
Most of the increased non-interest expenses have resulted from increased
advertising and marketing expenses. The ratio of non-interest expense to
average assets increased from 4.69 for the quarter ended March 31, 1998, to
5.20 in the current quarter. The ratio of net overhead (non-interest expense
minus non-interest income) divided by average total assets increased from
3.21 for the quarter ended March 31, 1998 to 3.61 for the quarter ended March
31, 1999.
YEAR 2000 ISSUES
The century date change for the Year 2000 is a serious issue that may impact
virtually every organization, including FCFG. Many software programs are not
able to recognize the year 2000, since most programs and systems were
designed to store calender years in the 1900s by assuming the "19" and
storing only the last two digits of the year. The problem is especially
important to financial institutions since many transactions, such as interest
accruals and payments, are date sensitive, and because FCFG and the Bank
interact with numerous customers, vendors and third party service providers
who must also address the Year 2000 issue. The problem is not limited to
computer systems. Year 2000 issues will also potentially affect every system
that has an embedded microchip, such as automated teller machines, elevators
and vaults.
FCFG'S STATE OF READINESS
FCFG and the Bank is committees to addressing these Year 2000 issues in a
prompt and responsible manner, and have dedicated resources to do so.
Management has completed an assessment of its automated systems and has
implemented a program consistent with applicable regulatory guidelines, to
complete all steps necessary to resolve identified issues. FCFG's compliance
program has several phases, including (1) project management; (2) assessment;
(3) testing; and (4) remediation and implementation.
PROJECT MANAGEMENT
FCFG has formed a Year 2000 compliance committee consisting of senior
management and departmental representatives. Planning for Year 2000
compliance began in 1997, with a formal committee being formed in early 1998.
A Year 2000 compliance plan was developed and regular meetings have been held
to discuss the process, assign tasks, determine priorities and monitor
progress. The committee regularly reports to the Company's Board.
ASSESSMENT
All of FCFG's and its subsidiary bank's computer equipment and mission
critical software programs have been identified. This phase is complete.
FCFG's primary software vendors were also assessed during this phase, and
vendors who provide mission critical software have been contacted. FCFG is in
the process of obtaining written certification from providers of material
services that such providers are, or will be, Year 2000 compliant. Based upon
its ongoing assessment of the readiness of its vendors, suppliers and service
providers, FCFG is developing contingency plans addressing the most
reasonably likely worst case scenarios. FCFG will continue to monitor and
work with these vendors. FCFG has also identified, and began working with,
the subsidiary bank's significant borrowers and funds providers to assess the
extent to which they may be affected by Year 2000 issues.
TESTING
Updating and testing of FCFG and the Bank's automates systems is currently
progressing. All testing of mission critical systems has been completed.
Testing of non-mission critical systems will be complete by June 30, 1999.
Upon completion, FCFG will be able to identify any internal computer systems
that remain non-compliant.
REMEDIATION AND IMPLEMENTATION
This phase involves obtaining and implementing renovated software
applications provided by FCFG's vendors. As these applications are received
and implemented, FCFG will test them for Year 2000 compliance. This phase
also involves upgrading and replacing automated systems where appropriate,
and is expected to be substantially complete by June 30, 1999.
ESTIMATED COSTS TO ADDRESS FCFG'S YEAR 2000 ISSUES
The total financial effect that Year 2000 will have on FCFG cannot be
predicted with any certainty at this time. In
<PAGE>
fact, in spite of all efforts being made to rectify these problems, the
success of FCFG's efforts will not be fully known until the year 2000
actually arrives. However, based on its initial assessment to date, FCFG does
not believe that expenses related to meeting Year 2000 challenges will have a
material effect on the operations or consolidated financial condition of
FCFG. Year 2000 challenges facing vendors of mission critical software and
systems, and facing FCFG's customers, could have a material effect on the
operations or consolidated financial condition of FCFG, to the extent such
parties are materially effected by such challenges.
RISKS RELATED TO YEAR 2000 ISSUES
The year 2000 poses certain risks to FCFG and the Bank and their operations.
Some of these risks are present because FCFG purchases technology and
information systems applications from other parties who face Year 2000
challenges. Other risks are inherent in the business of banking or are risks
faced by many companies. Although it is impossible to identify all possible
risks that FCFG may face moving into the millennium, management has
identified the following significant potential risks:
FCFG lends significant amounts to businesses in its market area, If these
businesses are adversely effected by the Year 2000 problems, their ability to
repay loans could be impaired. This increased credit risk could adversely
effect FCFG's financial performance. During the assessment phase of FCFG's
Year 2000 program, each of the Bank's substantial borrowers were identified,
and the Bank is working with such borrowers to ascertain their levels of
exposure to Year 2000 problems. To the extent that the Bank is unable to
assure itself of the Year 2000 readiness of such borrowers, it intends to
apply additional risk assessment criteria to the indebtedness of such
borrowers and make any necessary related adjustments to FCFG's provision for
loan losses.
FCFG and the Bank, like many other companies, can be adversely effected by
the Year 2000 triggered failures of other companies upon whom FCFG and the
Bank depend for the functioning of their automated systems. Accordingly,
FCFG's and the Bank's operations could be materially effected if the
operations of mission critical third party service providers are adversely
effected. As described above, FCFG has identified its mission critical
vendors and is monitoring their Year 2000 compliance programs and is
developing contingency plans.
FCFG'S CONTINGENCY PLANS
FCFG is in the process of developing specific contingency plans related to
Year 2000 issues. As FCFG and the Bank continue the testing phase, and based
on future ongoing assessment of the readiness of vendors, service providers
and substantial borrowers, FCFG is developing appropriate contingency plans
that address the most reasonably likely "worst case" scenarios. Certain
circumstances, as described above in "RISKS", may occur for which there are
no completely satisfactory contingency plans.
<PAGE>
FIRST COMMUNITY FINANCIAL GROUP, INC.
PART II - OTHER INFORMATION
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K None
<PAGE>
FIRST COMMUNITY FINANCIAL GROUP, INC.
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.
FIRST COMMUNITY FINANCIAL GROUP, INC.
(Registrant)
Date: May 17, 1999 By: /s/ Ken F. Parsons
-----------------------------------
Ken F. Parsons
President, Chief Executive Officer
By: /s/ James F. Arneson
-----------------------------------
James F. Arneson
Executive Vice President,
Chief Financial Officer
(Principal Accounting Officer)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<CIK> 0000892449
<NAME> FIRST COMMUNITY FINANCIAL GROUP
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 13,395
<INT-BEARING-DEPOSITS> 100
<FED-FUNDS-SOLD> 17,705
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 34,315
<INVESTMENTS-CARRYING> 677
<INVESTMENTS-MARKET> 733
<LOANS> 200,869
<ALLOWANCE> 2,396
<TOTAL-ASSETS> 288,827
<DEPOSITS> 251,844
<SHORT-TERM> 0
<LIABILITIES-OTHER> 2,962
<LONG-TERM> 2,714
0
0
<COMMON> 5,350
<OTHER-SE> 25,957
<TOTAL-LIABILITIES-AND-EQUITY> 288,827
<INTEREST-LOAN> 4,737
<INTEREST-INVEST> 517
<INTEREST-OTHER> 46
<INTEREST-TOTAL> 5,300
<INTEREST-DEPOSIT> 1,704
<INTEREST-EXPENSE> 1,749
<INTEREST-INCOME-NET> 3,551
<LOAN-LOSSES> 120
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,502
<INCOME-PRETAX> 999
<INCOME-PRE-EXTRAORDINARY> 999
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 674
<EPS-PRIMARY> .32
<EPS-DILUTED> .30
<YIELD-ACTUAL> 9.12
<LOANS-NON> 1,027
<LOANS-PAST> 121
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,290
<CHARGE-OFFS> 36
<RECOVERIES> 22
<ALLOWANCE-CLOSE> 2,396
<ALLOWANCE-DOMESTIC> 2,396
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
