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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
October 10, 1996
PERPETUAL MIDWEST FINANCIAL, INC.
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(Exact name of Registrant as specified in its Charter)
DELAWARE 0-23368 44-1415490
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
700 FIRST AVENUE, N.E., CEDAR RAPIDS, IOWA 52407
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (319) 366-1851
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N/A
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
Perpetual Midwest Financial, Inc. (the "Registrant") issued a press
release dated October 10, 1996, attached hereto as Exhibit 28.1 announcing
their earnings for the quarter ended September 30, 1996.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
Exhibit 28.1 Press Release dated October 10, 1996.
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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.
PERPETUAL MIDWEST FINANCIAL, INC.
Date: 10/17/96 By: /s/ Rick L. Brown
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Rick L. Brown
Sr. Vice President
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SEQUENTIALLY
EXHIBIT NUMBERED
NUMBER DESCRIPTION PAGE
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EX. 28.1 PRESS RELEASE DATED OCTOBER 10, 1996
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EXHIBIT 28.1
FOR IMMEDIATE RELEASE
DATE: October 10, 1996
CONTACT: Rick L. Brown, CFO
(319) 369-5601
PERPETUAL MIDWEST FINANCIAL, INC.
QUARTERLY EARNINGS WITH SAIF RECAPITALIZATION ASSESSMENT
CEDAR RAPIDS, IOWA------
Perpetual Midwest Financial, Inc., parent of Perpetual Savings Bank, FSB,
announced a net loss of $553,000 or ($0.29) per common share for the Company's
three months ended September 30, 1996. This compares to net income of $256,000
or $0.12 per common share for the three months ended September 30, 1995. The
net loss for the three months ended September 30, 1996 compared to the three
months ended September 30, 1995 was predominately due to an increase of
$580,000 net interest income before provision for loan losses, a $138,000
increase in other income and a $536,000 adjustment to income tax provision,
offset by a $225,000 increase in provision for loan losses, and a $1.8 million
increase in other expenses (due primarily to the $1.5 million SAIF
recapitalization assessment and $300,000 other expenses).
Net interest income, before provision for loan losses, for the three
months ended September 30, 1996 increased $580,000 to $2.6 million as compared
to the same period last year. Interest income increased $1.0 million to $7.3
million while interest expense increased $436,000 to $4.8 million for the three
months ended September 30, 1996, as compared to the three months ended
September 30, 1995. Interest income increased primarily due to a $36.2 million
increase in average earning financial assets and a 35 basis points increase in
the average yield on these assets. The increase in interest expense was
primarily due to a $39.6 million increase in the average balance of financial
liabilities, offset by a 17 basis point decrease in the average cost of these
liabilities.
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Perpetual Midwest Financial, Inc. Press Release
October 10, 1996
Page 2 of 4
The $1.8 million increase in other expenses is primarily a result of a
$1.5 million expense accrued for the special assessment on SAIF-insured
institutions in order to recapitalize the SAIF insurance fund. This accrual was
based on an FDIC assessment rate of 65.7 basis points on a $226.4 million
deposit base at March 31, 1995.
Total consolidated assets at September 30, 1996 were $395.7 million as
compared to $383.3 million at June 30, 1996. At September 30, 1996, allowance
for loan losses totaled $2.7 million or 0.90% of total net loans receivable as
compared to $2.7 or 0.91% of total net loans receivable at June 30, 1996. The
Company's non-performing assets (loans 90 days or more delinquent and
foreclosed real estate including in-substance foreclosures) were $1.5 million
or 0.38% of total assets at September 30, 1996, compared with $1.4 million or
0.37% of total assets at June 30, 1996.
As of September 30, 1996, Perpetual Savings Bank, FSB had tangible and
core capital ratios of approximately 7.69%. The Bank continued to exceed its
regulatory capital requirements and expects to remain in excess of the
requirements.
On September 24, 1996, Perpetual Midwest Financial, Inc. announced its
intent to repurchase up to 5% of its outstanding common shares over the
following twelve-months. The shares will be purchased at prevailing market
prices from time to time depending upon market conditions.
Perpetual Savings Bank, FSB, headquartered in downtown Cedar Rapids, Iowa,
has four full service branch offices including; Cedar Rapids West, Cedar Rapids
East, Cedar Rapids Northeast, and Iowa City, Iowa.
Perpetual Midwest Financial, Inc's common stock is traded on the NASDAQ
National Market under the symbol "PMFI".
A consolidated financial summary follows (2 pages).
#####
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[PERPETUAL MIDWEST FINANCIAL, INC. LETTERHEAD]
Perpertual Midwest Financial, Inc. - Press Release
October 10, 1996
Page 3 of 4
SUMMARY OF FINANCIAL HIGHLIGHTS
- CONSOLIDATED BALANCE SHEETS -
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September 30, June 30,
1996 1996
(unaudited) (audited)
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Assets
Cash and due from financial institutions $ 4,092,014 $ 2,968,278
Interest-bearing balances in financial inst. 16,938,508 7,956,221
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Cash and cash equivalents 21,030,522 10,924,499
Securities:
Trading portfolio 1,023,553 989,800
Available-for-sale 54,842,508 56,401,791
Held-to-maturity -- --
FHLB stock 4,640,900 4,640,900
Loans held for sale 1,612,953 1,870,570
Loans receivable, net 299,681,788 296,080,410
Accrued interest and dividend receivable 2,594,248 2,678,024
Premises and equipment, net 7,543,351 7,307,659
Other assets 2,736,950 2,379,202
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TOTAL ASSETS $ 395,706,773 $ 383,272,855
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Liabilities
Deposits $ 276,320,473 $ 261,497,110
Borrowed funds 78,339,250 80,723,708
Advances from borrowers for taxes & ins. 322,220 818,524
Accrued interest payable 3,045,002 2,343,611
Other liabilities 3,790,135 2,301,985
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TOTAL LIABILITIES $ 361,817,080 $ 347,684,938
Stockholders' Equity
Common stock (2,123,984 shares) $ 21,240 $ 21,240
Additional paid in capital 20,539,479 20,546,070
Retained earnings-substantially restricted 17,777,061 18,481,335
Unrealized holding gains/losses-available-for-sale (292,365) (486,626)
Less: Common stock acquired (3,387,979) (2,152,190)
Employee stock ownership plan (734,013) (776,032)
Unearned compensation (33,730) (45,880)
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TOTAL STOCKHOLDERS' EQUITY $ 33,889,693 $ 35,587,917
Total Liabilities and
Stockholders' Equity $ 395,706,773 $ 383,272,855
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[PERPETUAL MIDWEST FINANCIAL, INC. LETTERHEAD]
Perpetual Midwest Financial, Inc. - Press Release
October 10, 1996
Page 4 of 4
SUMMARY OF FINANCIAL HIGHLIGHTS
- CONSOLIDATED STATEMENTS OF INCOME -
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For the 3 mos. ended September 30,
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1996 1995
(Dollars in Thousands except Per Share Data) (unaudited) (unaudited)
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Interest Income $ 7,342 $ 6,326
Interest Expense 4,758 4,322
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Net Interest Income 2,584 2,004
Provision for loan losses 225 --
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Net Interest Income after
Provision for Loan Losses 2,359 2,004
Other Income 418 280
Other Expenses 2,205 1,852
Special SAIF assessment 1,485 --
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Total Other Expenses 3,690 1,852
Income Before Income Taxes (913) 432
Income tax provision (360) 176
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Net Income $ (553) $ 256
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Earnings per share subsequent to
conversion
Net Income ($0.29) $0.13
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Earnings per share assuming
full dilution
Net Income ($0.29) $0.12
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