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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)
April 17, 1997
PERPETUAL MIDWEST FINANCIAL, INC.
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(Exact name of Registrant as specified in its Charter)
DELAWARE 0-23368 42-1415490
- --------------------------------------------------------------------------------
(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
1) Perpetual Midwest Financial, Inc. (the "Registrant") issued a press release
dated April 17, 1997, attached hereto as Exhibit 28.1 announcing their earnings
for the quarter ended March 31, 1997.
2) Perpetual Midwest Financial, Inc. (the "Registrant") issued a press release
dated April 17, 1997, attached hereto as Exhibit 28.2 announcing their
declaration of a cash dividend payable May 15, 1997 to shareholders of record
April 30, 1997.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
1) Exhibit 28.1 Press Release dated April 17, 1997-earnings
release for quarter ended 3-31-97.
2) Exhibit 28.2 Press Release dated April 17, 1997-declaration of
cash dividend for shareholders of record on April 30, 1997 and payable
May 15, 1997.
2
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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: April 17, 1997 By: /s/ Rick L. Brown
-------------------------- ---------------------------
Rick L. Brown
Sr. Vice President
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EXHIBIT 28.1 (6 PAGES)
PRESS RELEASE DATED APRIL 17, 1997 ANNOUNCING
EARNINGS FOR THE QUARTER ENDED MARCH 31, 1997
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FOR IMMEDIATE RELEASE
DATE: April 17, 1997
CONTACT: Rick L. Brown, CFO
(319) 369-5601
PERPETUAL MIDWEST FINANCIAL, INC.
CEDAR RAPIDS, IOWA------
Perpetual Midwest Financial, Inc., parent of Perpetual Savings Bank, FSB,
announced earnings of $434,000 or $0.22 per common share for the Company's
three months ended March 31, 1997. This compares to net income of $427,000 or
$0.21 per common share for the three months ended March 31, 1996. The increase
in earnings for the three months ended March 31, 1997 compared to the three
months ended March 31, 1996 was predominately due to an increase of $333,000 in
net interest income and a $183,000 increase in other income, offset by a
$241,000 increase in provision for loan losses, a $241,000 increase in other
expenses, and a $27,000 increase in income tax provision. Beginning July, 1996,
the Company increased its provision for loan losses due to the continued growth
in the Company's loan portfolio and an increase in the Company's actual loan
loss experience over the past year.
Net interest income, before provision for loan losses, for the three
months ended March 31, 1997 increased $333,000 to $2.7 million as compared to
$2.4 million for the same period last year. Interest income increased $359,000
to $7.3 million while interest expense increased $26,000 to remain level at
$4.6 million for the three months ended March 31, 1997, as compared to the
three months ended March 31, 1996. Interest income increased primarily due to
a $7.4 million increase in average earning financial assets and a 24 basis
points increase in the average yield on these assets. The increase in interest
expense was primarily due to a $11.6 million increase in the average balance
of financial liabilities, offset by a 19 basis point decrease in the average
cost of these liabilities.
1
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Perpetual Midwest Financial, Inc. Press Release
April 17, 1997
Page 2 of 6
Earnings for the first nine months of fiscal 1997 ended March 31, 1997
resulted in a net loss of $38,000 or ($0.02) per share of common stock. This
compared to net income of $1.1 million or $0.55 per share of common stock for
the nine months ended March 31, 1996.
The decrease in earnings for the first nine months of fiscal 1997 compared
to the same period last year was predominantly due to a $983,000 increase for
provision for loan losses, a 1.2 million increase in other expenses and a $1.5
million expense for a special assessment on SAIF-insured institutions in order
to recapitalize the SAIF insurance fund, offset by an increase of $1.3 million
in net interest income, a $487,000 increase of other income and a decrease of
$720,000 in tax provision.
Net interest income, before provision for loan losses, for the nine months
ended March 31, 1997 increased $1.3 million to $7.8 million as compared to $6.5
million for the same period last year. Interest income increased $2.0 million
to $22.0 million while interest expense increased $661,000 for the nine months
ended March 31, 1997 as compared to the nine months ended March 31, 1996.
Interest income increased primarily due to a $21.3 million increase in average
financial earning assets and an 28 basis point increase in the average yield on
these assets. Interest expense increased primarily due to a $25.1 million
increase in average financial liabilities, offset by a 19 basis point decrease
in the average cost of these liabilities.
Total consolidated assets at March 31, 1997 were $397.8 million as
compared to $383.3 million at June 30, 1996. At March 31, 1997, allowances and
reserves for loan losses totaled $2.8 million or 0.95% of total net loans
receivable as compared to $2.7 or 0.90% 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) were $1.3 million or 0.32% of total
assets at March 31, 1997, compared with $1.5 million or 0.39% of total assets
at June 30, 1996. Total allowances and reserves for loan losses were 2.2 times
non-performing assets at March 31, 1997 compared to 1.8 times at June 30, 1996.
As of December 31, 1996, Perpetual Savings Bank, FSB had tangible and core
capital ratios of approximately 7.81%. The Bank continued to exceed its
regulatory capital requirements and expects to remain in excess of the
requirements.
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Perpetual Midwest Financial, Inc. Press Release
April 17, 1997
Page 3 of 6
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 Company continues to repurchase shares 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 (3 pages).
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SUMMARY OF FINANCIAL HIGHLIGHTS
- CONSOLIDATED BALANCE SHEETS -
<TABLE>
<CAPTION>
March 31, June 30,
1997 1996
(unaudited) (audited)
- --------------------------------------------------------- -------------- ---------------
<S> <C> <C>
Assets
Cash and due from financial institutions $ 5,343,167 $ 2,968,278
Interest-bearing balances in financial inst. 7,928,656 7,956,221
------------- --------------
Cash and cash equivalents 13,271,823 10,924,499
Securities:
Trading portfolio 680,188 989,800
Available-for-sale 69,542,017 56,401,791
Held-to-maturity -- --
FHLB stock 4,640,900 4,640,900
Loans held for sale 631,208 1,870,570
Loans receivable, net 296,312,678 296,080,410
Accrued interest and dividend receivable 2,802,284 2,678,024
Premises and equipment, net 7,301,642 7,307,659
Other assets 2,597,170 2,379,202
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TOTAL ASSETS $ 397,779,910 $ 383,272,855
============= ==============
Liabilities
Deposits $ 291,609,268 $ 261,497,110
Borrowed funds 67,390,961 80,723,708
Advances from borrowers for taxes & ins. 284,350 818,524
Accrued interest payable 2,610,613 2,343,611
Other liabilities 2,098,407 2,301,985
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TOTAL LIABILITIES $ 363,993,599 $ 347,684,938
Stockholders' Equity
Common stock (2,123,984 shares) $ 21,240 $ 21,240
Additional paid in capital 20,712,301 20,546,070
Retained earnings-substantially restricted 18,006,425 18,481,335
Unrealized holding gains/losses-available-for-sale (225,288) (486,626)
Less: Common stock acquired (3,570,365) (2,152,190)
Employee stock ownership plan (651,272) (776,032)
Unearned compensation (506,730) (45,880)
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Total Stockholders' Equity $ 33,786,311 $ 35,587,917
Total Liabilities and
Stockholders' Equity $ 397,779,910 $ 383,272,855
============= ==============
</TABLE>
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SUMMARY OF FINANCIAL HIGHLIGHTS
- CONSOLIDATED STATEMENTS OF INCOME-
<TABLE>
<CAPTION>
For the 3 mos. ended March 31,
-------------------------------------
1997 1996
(Dollars in Thousands except Per Share Data (unaudited) (unaudited)
- --------------------------------------------------------------------------------------
<S> <C> <C>
Interest Income $ 7,348 $ 6,989
Interest Expense 4,643 4,617
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Net Interest Income 2,705 2,372
Provision for loan losses 271 30
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Net Interest Income after
Provision for Loan Losses 2,434 2,342
Other Income 465 282
Other Expenses 2,186 1,945
Income Before Income Taxes 713 679
Income tax provision 279 252
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Net Income $ 434 $ 427
========== =========
Earnings per share subsequent to
conversion
Net Income $0.22 $0.21
========== =========
Earnings per share assuming
full dilution
Net Income $0.22 $0.21
========== =========
</TABLE>
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SUMMARY OF FINANCIAL HIGHLIGHTS
- CONSOLIDATED STATEMENTS OF INCOME-
<TABLE>
<CAPTION>
For the 9 mos. ended March 31,
------------------------------------
1997 1996
(Dollars in Thousands except Per Share Data (unaudited) (unaudited)
- ------------------------------------------------------------------------------------
<S> <C> <C>
Interest Income $ 21,954 $ 19,945
Interest Expense 14,110 13,449
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Net Interest Income 7,844 6,496
Provision for loan losses 1,048 65
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Net Interest Income after
Provision for Loan Losses 6,796 6,431
Other Income 1,376 889
Other Expenses 6,731 5,487
Special SAIF assessment 1,485 --
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Total Other Expenses 8,216 5,487
Income Before Income Taxes (44) 1,833
Income tax provision (6) 714
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Net Income $ (38) $ 1,119
============= ================
Earnings per share subsequent to
conversion
Net Income ($0.02) $0.55
============= ================
Earnings per share fully diluted
subsequent to conversion
Net Income ($0.02) $0.55
============= ================
</TABLE>
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EXHIBIT 28.2 (1 PAGE)
PRESS RELEASE DATED APRIL 17, 1997 ANNOUNCING
DECLARATION OF A CASH DIVIDEND PAYABLE
MAY 15, 1997 TO SHAREHOLDERS OF RECORD
APRIL 30, 1997
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FOR IMMEDIATE RELEASE
DATE: April 17, 1997
CONTACT: Rick L. Brown, CFO
at (319) 369-5601
PERPETUAL MIDWEST FINANCIAL, INC
CEDAR RAPIDS, IOWA ------
Perpetual Midwest Financial, Inc., parent company of Perpetual Savings Bank,
FSB, announced that the Corporation will pay a cash dividend of $0.075 (seven
and one-half cents) per share of outstanding common stock. The dividend will be
payable on May 15, 1997 to shareholders of record on April 30, 1997.
Perpetual Savings Bank, FSB serves Linn and Johnson counties through its four
full service offices in Cedar Rapids and one office located in Iowa City,
Iowa.
The Corporation's stock is traded on the NASDAQ National Market under the
symbol "PMFI".
#####
