<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, 2000
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.
<TABLE>
<CAPTION>
TITLE OF CLASS OUTSTANDING AT MARCH 31, 2000
-------------- -----------------------------
<S> <C>
Common Stock 2,177,567
</TABLE>
<PAGE>
FIRST COMMUNITY FINANCIAL GROUP, INC.
Table of Contents
<TABLE>
<CAPTION>
<S> <C>
PART I - FINANCIAL INFORMATION Page
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
PART II - OTHER INFORMATION
Item 6 Exhibits and Reports on Form 8-K.................................................13
SIGNATURES................................................................................14
</TABLE>
2
<PAGE>
FIRST COMMUNITY FINANCIAL GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
<TABLE>
<CAPTION>
(DOLLARS IN THOUSANDS)
- --------------------------------------------------------------------------------------------------
March 31 December 31
2000 1999
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 11,951 $10,349
Interest bearing deposits in banks 100 136
Securities available for sale 27,942 28,439
Securities held to maturity 677 677
Loans held for sale 3,898 2,951
Loans 249,699 232,825
Allowance for credit losses 6,018 5,825
NET LOANS 243,681 227,000
Premises and equipment 9,037 9,187
Foreclosed real estate 1,890 1,890
Accrued interest receivable 1,556 1,226
Cash value of life insurance 3,015 3,014
Goodwill 6,983 7,085
Other assets 1,269 1,819
TOTAL ASSETS $311,999 $293,773
LIABILITIES
Deposits:
Demand $ 44,713 $ 42,481
Savings and interest bearing demand 103,896 105,519
Time deposits 108,643 97,527
TOTAL DEPOSITS 257,252 245,527
Federal funds purchased 580 3,200
Short term borrowing 17,767 10,335
Long term debt 1,986 2,030
Accrued interest payable 296 299
Other liabilities 2,554 1,764
TOTAL LIABILITIES 280,435 263,155
STOCKHOLDERS' EQUITY
Common stock, par value $2.50 per share; 5,444 5,443
10,000,000 shares authorized, 2,177,567 shares issued
in 2000, and 2,177,167 shares issued in 1999
Surplus 23,428 23,428
Retained earnings 3,776 2,855
Accumulated other comprehensive loss (748) (728)
Debt related to KSOP (336) (380)
TOTAL STOCKHOLDERS' EQUITY 31,564 30,618
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $311,999 $293,773
</TABLE>
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3
<PAGE>
FIRST COMMUNITY FINANCIAL GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income and Comprehensive Income(Unaudited)
<TABLE>
<CAPTION>
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
- ------------------------------------------------------------------------------------------------------------------
Three months ended
March 31
2000 1999
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INTEREST INCOME
Loans $6,195 $4,737
Federal funds sold and deposits in banks 4 46
Investments 454 517
TOTAL INTEREST INCOME 6,653 5,300
INTEREST EXPENSE
Deposits 1,911 1,704
Other 296 45
TOTAL INTEREST EXPENSE 2,207 1,749
NET INTEREST INCOME 4,446 3,551
PROVISION FOR CREDIT LOSSES 170 120
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 4,276 3,431
NON-INTEREST INCOME
Service charges on deposit accounts 459 459
Origination fees on mortgage loans sold 235 298
Other operating income 582 313
TOTAL NON-INTEREST INCOME 1,276 1,070
NON-INTEREST EXPENSE
Salaries and employee benefits 2,129 1,966
Occupancy and equipment 557 570
Other expense 1,130 966
TOTAL NON-INTEREST EXPENSE 3,816 3,502
OPERATING INCOME BEFORE INCOME TAXES 1,736 999
Income Taxes 597 325
NET INCOME $ 1,139 $ 674
OTHER COMPREHENSIVE INCOME, NET OF TAX:
Unrealized holding gains (losses) on securities arising during the period (20) 62
COMPREHENSIVE INCOME $ 1,119 $ 736
EARNINGS PER SHARE DATA
BASIC EARNINGS PER SHARE $ .53 $ .32
DILUTED EARNINGS PER SHARE $ .50 $ .30
Weighted average number of common shares outstanding 2,157,940 2,098,044
Weighted average number of common shares outstanding,
Including dilutive stock options 2,260,820 2,261,764
Return on average assets 1.54% 1.00%
</TABLE>
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
4
<PAGE>
FIRST COMMUNITY FINANCIAL GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders' Equity (Unaudited)
<TABLE>
<CAPTION>
(DOLLARS IN THOUSANDS)
- -------------------------------------------------------------------------------------------------------------------
Year Ended December 31, 1999 and Three Months Ended March 31, 2000
Accumulated
Other Debt
Common Retained Comprehensive Related
Stock Surplus Earnings Income to KSOP Total
<S> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1998 $5,315 $22,849 $2,757 $28 $ (608) $30,341
Net income - - - - 1,360 - - - - 1,360
Stock options exercised 128 402 - - - - - - 530
Cash dividend - - - - (1,262) - - - - (1,262)
Other comprehensive income - - - - - - (756) - - (756)
Income tax benefit from exercise
of stock options - - 177 - - - - - - 177
Net decrease in debt related
to KSOP - - - - - - - - 228 228
BALANCE, DECEMBER 31, 1999 5,443 23,428 2,855 (728) (380) 30,618
Net income - - - - 1,139 - - - - 1,139
Stock options exercised 1 - - 0 - - - - 1
Cash dividend - - - - (218) - - - - (218)
Other comprehensive income - - - - - - (20) - - (20)
Net decrease in debt related
to KSOP - - - - - - - - 44 44
BALANCE, MARCH 31, 2000 $5,444 $23,428 $3,776 $(748) ($336) $31,564
</TABLE>
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
5
<PAGE>
FIRST COMMUNITY FINANCIAL GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
<TABLE>
<CAPTION>
(DOLLARS IN THOUSANDS)
- -------------------------------------------------------------------------------------------------------------------
Three months ended
March 31
2000 1999
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 1,139 $ 674
Adjustments to reconcile net income to net cash provided
by operating activities:
Provision for credit losses 170 120
Depreciation and amortization 269 279
Amortization of goodwill 102 102
Other - net 983 451
Originations of loans held for sale (11,255) (9,685)
Proceeds from sales of loans held for sale 10,308 10,582
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,716 2,523
CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease in interest bearing deposits in banks 36 27
Net increase in Federal funds sold 0 (14,890)
Proceeds from maturities and prepayments of available-for-sale securities 544 5,884
Purchase of available-for-sale securities 0 (4,632)
Net increase in loans (16,851) (2,963)
Additions to premises and equipment (119) (668)
NET CASH USED BY INVESTING ACTIVITIES (16,390) (17,242)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits 11,725 16,257
Net increase in short-term borrowings 4 812 0
Sale of common stock 1 136
Repayment of long-term borrowings (44) (94)
Repayment of short-term borrowings 0 (500)
Payment of cash dividends (218) 0
NET CASH PROVIDED BY FINANCING ACTIVITIES 16,276 15,799
NET CHANGE IN CASH AND DUE FROM BANKS 1,602 1,080
CASH AND DUE FROM BANKS:
Beginning of period 10,349 12,315
END OF PERIOD $11,951 $13,395
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
CASH PAYMENTS FOR:
Interest $2,210 $1,809
Taxes 414 200
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING ACTIVITIES:
Other real estate acquired in settlement of loans 647 334
Decrease in debt related to KSOP (44) (94)
</TABLE>
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
6
<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 principles for
interim financial information and with instructions to Form 10-Q 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, 2000 are not necessarily indicative of the
results anticipated for the year ending December 31, 2000.
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.
7
<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, 2000 of $311,999,000
represents a 6.2% increase over December 31, 1999 assets of $293,773,000. The
growth in assets was almost entirely made up of growth in loan demand. Loan
balances, net of allowance for credit losses, increased $17,628,000, or 7.7%,
in the first quarter to $247,579,000 from $229,951,000 at December 31, 1999.
Loan quality, as measured by the level of nonperforming assets detailed
below, has continued to improve over historical levels.
Nonperforming assets were as follows (dollars in thousands):
<TABLE>
<CAPTION>
March 31 December 31
2000 1999
<S> <C> <C>
Non-accrual loans $ 611 $1,476
Accruing loans past due 90 days or more 0 28
Foreclosed real estate 1,873 1,890
Other assets 18 24
$2,502 $3,418
</TABLE>
Total nonperforming assets decreased 26.8%, or $916,000. Non-accrual loans
decreased $865,000 due to continued diligence in collection efforts.
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, as well as an additional amount to provide a supplementary margin of
safety. 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 $193,000 in the first quarter of
2000. The ratio of allowance for credit losses to total loans decreased to
2.41% from 2.50% at December 31, 1999. The dollar value change in the
allowance consisted of $170,000 of provision and by $23,000 in net recoveries
on previously charged off loans. The current allowance for credit losses and
its associated ratio remains historically high due to the special allowance
made on a particular loan in the fourth quarter of 1999.
Investment securities decreased by $497,000, or 1.7% during the first quarter
to total $28,619,000. Securities have continued to decrease due to maturities
or prepayments made on asset-backed securities. No additional securities
purchases were made in the quarter due to loan growth. 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 to meet liquidity demands.
Total deposits increased $11,725,000, or 4.8% in the first quarter to
$257,252,000. Increased time deposits generated $11,116,000 of the increase.
Additional short term borrowing was incurred in order to satisfy the demands
of the loan growth. Federal funds purchased, or overnight borrowing, were
reduced by $2,620,000 in favor of additional term borrowing, generally 90
days in term, which increased by $7,432,000.
LIQUIDITY, RATE SENSITIVITY AND MARKET RISK
The Company's assets and liabilities are managed to maximize long-term
shareholder returns by optimizing net interest income within the constraints
of maintaining high credit quality, conservative interest rate risk
disciplines and prudent levels of liquidity. The Asset/Liability Committee
meets regularly to monitor the composition of the balance
8
<PAGE>
sheet, to assess current and projected interest rate trends, and to formulate
strategies consistent with established objectives for liquidity, interest
rate risk and capital adequacy.
Liquidity management involves the ability to meet cash flow requirements of
customers who may be either depositors wanting to withdraw funds or borrowers
needing assurance that sufficient funds will be available to meet their
credit needs. Liquidity is generated from both internal and external sources.
Internal sources are those assets that can be converted to cash with little
or no risk of loss. These include overnight investments in federal funds sold
and investment securities, particularly those of shorter maturity, and are
the principal source of asset liquidity. At March 31, 20000, cash, deposits
in banks, Federal funds sold and securities available for sale totaled
$39,993,000. External sources refer to the ability to attract new liabilities
and capital. They include increasing savings and demand deposits, federal
funds purchased, and the issuance of capital and debt securities. At March
31, 2000, borrowing lines of credit totaled $41,324,000. These credit
facilities are being used regularly as a source of funds as a result of loan
growth. $17,580,000 was being borrowed against these lines of credit in the
form of federal funds purchased and term advances as of March 31, 2000.
Management believes the Bank's liquidity position at March 31, 2000, was
adequate to meet its short term funding requirements.
Interest rate sensitivity is closely related to liquidity, as each is
directly affected by the maturity of assets and liabilities. The Company's
net interest margin is affected by changes in the level of market interest
rates. Management's objectives are to monitor and control interest rate risk
and ensure predictable and consistent growth in net interest income.
Management considers any asset or liability which matures, or is subject to
repricing within one year to be interest sensitive, although continual
monitoring is performed for other time intervals as well. The difference
between interest sensitive assets and liabilities for a defined period of
time is known as the interest sensitivity "gap", and may be either positive
or negative. If positive, more assets reprice before liabilities. If
negative, the reverse is true. Gap analysis provides a general measure of
interest rate risk but does not address complexities such as prepayment risk,
interest rate floors and ceilings imposed on financial instruments, interest
rate dynamics and customers' response to interest rate changes. Currently the
Banks' interest sensitivity gap is negative within one year. Assuming that
general market interest rate changes affected the repricing of assets and
liabilities in equal magnitudes, this indicates that the effects of rising
interest rates on the Company would be a decrease in the net interest margin,
whereas falling interest rates would cause a corresponding increase in the
margin.
INTEREST RATE GAP ANALYSIS
MARCH 31, 2000
<TABLE>
<CAPTION>
After One
Within But Within After
(DOLLARS IN THOUSANDS) One Year Five Years Five Years Total
<S> <C> <C> <C> <C>
Loans $ 89,628 $127,796 $32,275 $249,699
Securities:
Available for sale 696 10,414 15,029 26,139
Held to maturity -- 270 407 677
Interest bearing deposits with banks 100 -- -- 100
Federal funds sold -- -- -- --
Total Earning Assets $ 90,424 $138,480 $47,711 $276,615
Deposits:
Savings, NOW and money market $ 103,896 -- -- $103,896
Time deposits 103,929 $ 4,714 -- 108,643
Short-term borrowings 18,347 -- -- 18,347
Long-term debt 1,986 -- -- 1,986
Total Interest Bearing Liabilities $ 228,158 $ 4,714 -- $232,872
Net Interest Rate Sensitivity Gap ($137,734) $133,766 $47,711 $ 43,743
</TABLE>
9
<PAGE>
The Company's market risk is impacted by changes in interest rates. Other
types of market risk, such as foreign currency exchange rate risk and
commodity price risk, do not arise in the normal course of the Company's
business.
The Company has market risk in the form of interest rate risk on it's
financial assets. In an effort to understand the relative impact of this risk
on the Company's current financial situation, a process known as a rate shock
is applied to the current financial assets.
Rate shock is a process wherein the characteristics of the financial assets
of the Company are reviewed in the event they are subjected to an
instantaneous and complete adjustment in the market rate of interest. These
results are modeled to determine the effects on interest rate margin for the
succeeding twelve months from the repricing of variable rate assets and
liabilities where applicable. The level of impact on the various assets and
liabilities are also estimated for their sensitivity to pricing changes of
such a market interest rate change. According to this model and its
assumptions, the change in net interest margin in the event market interest
rates were to immediately rise or fall by 100 basis points is estimated to be
$289,000.
CAPITAL
Consolidated capital of FCFG increased $946,000 during the first quarter of
2000. The net income for the first quarter and its corresponding increase to
retained earnings was the primary component of this increase. Payments made
on the debt related to the Company's KSOP plan also contributed to the
increase in the capital position. The primary reduction to capital came from
the cash dividends distributed to shareholders in the amount of $217,000.
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, 2000, the Company's leverage ratio was 8.98%,
compared to 8.47% at year-end 1999. 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 riskadjusted capital ratio. Tier I
capital generally consists of common stockholders' equity, less goodwill,
while total capital includes the allowance for possible credit losses,
subject to 1.25% limitation of risk-adjusted assets. The rules require Tier I
capital of 4% of risk-adjusted assets and total capital of 8%. At March 31,
2000, the Tier I capital ratio was 8.76%, and total capital was 10.02%. At
December 31, 1999 the Tier I capital ratio was 8.94% and the total capital
ratio was 10.21%.
RESULTS OF OPERATIONS
GENERAL
Net income for the three months ended March 31, 2000 was $1,139,000, compared
to $674,000 for the three months ended March 31, 1999. Net interest income
for the three months ended March 31, 2000 increased $895,000, or 25.2% over
the comparable period in 1999.
Interest income for the three months ended March 31, 2000 increased
$1,353,000 over the three months ended March 31, 1999. Interest earned on
loans increased $1,458,000 due to both increased volume as well as increased
rate. $1,091,000 of the increased loan interest is attributed to the
increased volume of the loan balances. The remaining $367,000 increase is due
to a 71 basis point increase in the average yield on loans to 10.42% from
9.71%. Average loan balances also continued to expand as a percentage of
average earning assets, growing to 89.1% of average earning assets from 84.0%
in the first quarter of 1999. Investment income decreased $105,000 primarily
due to declining balances, which decreased income by $134,000. This was
partially offset by the effects of increased yield on the portfolio amounting
to $29,000.
Total interest expense for the three months ended March 31, 2000 increased
over the comparable period of the prior year by $458,000, or 26.2%. Of this
increase, approximately $450,000 was due to an increase in the average volume
of interest bearing liabilities. A 35 basis point increase in the aggregate
cost of funds from 3.69% to 4.04% resulted in an additional increase to
interest expense of $8,000.
10
<PAGE>
Net interest margin, defined as net interest income as a percentage of
average earning assets, increased by 55 basis points to 6.66% from 6.11% in
the first quarters of 2000 and 1999.
The yield and cost of funds for earning assets and interest bearing
liabilities were as follows as of and for the three months ended March 31
(dollars in thousands):
<TABLE>
<CAPTION>
2000 1999
Interest Interest
Average Income Average Average Income Average
Balance (Expense) Rates Balance (Expense) Rates
<S> <C> <C> <C> <C> <C> <C>
Earning Assets:
Loans (Interest and fees) $239,094 $6,195 10.42% $197,828 $4,737 9.71%
Federal funds sold 250 4 6.44% 3,927 46 4.75%
Investment securities 28,978 454 6.30% 33,806 517 6.20%
Total earning assets
and interest income $268,322 $6,653 9.97% $235,561 $5,300 9.12%
Interest bearing liabilities:
Deposits:
Savings, NOW, and
Money Market Deposits $104,148 $(631) 2.44% $109,725 $(697) 2.58%
Time deposits 96,858 (1,280) 5.32% 79,944 (1,007) 5.11%
Total interest bearing deposits $201,006 (1,911) 3.82% $189,669 (1,704) 3.64%
Other borrowings 18,603 (296) 6.40% 2,714 (45) 6.72%
Total interest bearing liabilities
and interest expense $219,609 $(2,207) 4.04% $192,383 $(1,749) 3.69%
Net interest income $4,446 $3,551
====== ======
Net interest margin as a percent
of average earning assets: 6.66% 6.11%
</TABLE>
11
<PAGE>
An analysis of the change in net interest income is as follows for the three
months ended March 30 (dollars in thousands):
<TABLE>
<CAPTION>
2000 compared to 1999
Increase (decrease) due to
Volume Rate Net
<S> <C> <C> <C>
Interest earned on:
Loans $ 1,091 $367 $1,458
Federal funds sold and deposits in banks (71) 8 (63)
Investment securities (63) 21 (42)
Total interest income 957 396 1,353
Interest paid on:
Savings, NOW and MMA (35) (31) (66)
Time deposits 232 41 273
Other borrowings 253 (2) 251
Total Interest expense 450 8 458
Net interest income $507 $388 $895
</TABLE>
The change in interest due to both rate and volume has been allocated to
volume and rate changes in proportion to the relationship of the absolute
dollar amounts of the change in each.
Non-interest income for the quarter ended March 31, 2000 was $206,000, or
19.3% greater than the same period for 1999. The primary increases in
non-interest income were $180,000 from gains on sale of assets, $27,000 from
ATM transactions, $75,000 in increased revenues from the investment products
division of the Company and $13,000 in increased revenues from debit card
transactions. Origination fees on mortgage loans sold decreased by $63,000,
or 21.1%, from prior year first quarter.
Non-interest expenses for the first quarter of 2000 increased by $314,000, or
9.0% over the first quarter of 1999. Salaries and employee benefits increased
by $163,000, or 8.3%. $49,000 of this increase was related to increased
compensation and benefits on activity in the investment products division,
while other compensation increased $16,000, or 1.1%. The remainder of the
increase was related to contributions made to employee benefit plans. Other
expense increased by $164,000, or 17.0% from the prior year. This increase
includes a $57,000 increase in data processing and expenses related to ATM
activity, $19,000 in regulatory fees and assessments, an $18,000 foreclosed
property valuation adjustment to market value and $13,000 in market research
expenses.
12
<PAGE>
FIRST COMMUNITY FINANCIAL GROUP, INC.
PART II - OTHER INFORMATION
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 Financial Data Schedules
(b) Reports on Form 8-K None
13
<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 15, 2000 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)
14
<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-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 11,951
<INT-BEARING-DEPOSITS> 100
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 27,942
<INVESTMENTS-CARRYING> 677
<INVESTMENTS-MARKET> 700
<LOANS> 253,597
<ALLOWANCE> 6,018
<TOTAL-ASSETS> 311,999
<DEPOSITS> 257,252
<SHORT-TERM> 18,347
<LIABILITIES-OTHER> 2,850
<LONG-TERM> 1,986
0
0
<COMMON> 5,444
<OTHER-SE> 26,120
<TOTAL-LIABILITIES-AND-EQUITY> 311,999
<INTEREST-LOAN> 6,195
<INTEREST-INVEST> 454
<INTEREST-OTHER> 4
<INTEREST-TOTAL> 6,653
<INTEREST-DEPOSIT> 1,911
<INTEREST-EXPENSE> 2,207
<INTEREST-INCOME-NET> 4,446
<LOAN-LOSSES> 170
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,816
<INCOME-PRETAX> 1,736
<INCOME-PRE-EXTRAORDINARY> 1,736
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,139
<EPS-BASIC> 0.53
<EPS-DILUTED> 0.50
<YIELD-ACTUAL> 9.97
<LOANS-NON> 611
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 3,250
<ALLOWANCE-OPEN> 5,825
<CHARGE-OFFS> 29
<RECOVERIES> 6
<ALLOWANCE-CLOSE> 6,018
<ALLOWANCE-DOMESTIC> 6,018
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
