UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[x] Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended
March 31, 1996
or
[ ] Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Commission File
No. 000-23318
Mid-Central Financial Corporation
(Exact name of registrant as specified in its charter)
Minnesota 41-1765962
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
520 South Jefferson Street, Wadena, Minnesota 56482
(Address and Zip Code of principal executive offices)
Registrant's telephone number, including area code: (218) 631-1414
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 preceding 12 months (or for such shorter period 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.
Outstanding at
Class May 10, 1995
Common Stock, $.10 par value 247,387 Shares
MID-CENTRAL FINANCIAL CORPORATION
FORM 10-Q
QUARTER ENDED MARCH 31, 1996
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Mid-Central Financial Corporation Consolidated Balance
Sheets (unaudited) March 31, 1996 and September 30,
1995 .....................................................
Mid-Central Financial Corporation Consolidated Statements
of Income (unaudited) for the three and six months
ended March 31, 1996 and March 31, 1995...................
Mid-Central Financial Corporation Consolidated Statements
of Cash Flows (unaudited) for the six months ended
March 31, 1996 and March 31, 1995.........................
Mid-Central Financial Corporation Consolidated Statement of
Stockholders' Equity (unaudited) for the year ended
September 30, 1995 and six months ended March 31, 1996....
Notes to Consolidated Financial Statements..................
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations for the Three
and Six months Ended March 31, 1996 and 1995................
Supplementary Information...................................
PART II. OTHER INFORMATION
Items 1-6............................................................
Signatures....................................................................
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
CONSOLIDATED BALANCE SHEETS
MID-CENTRAL FINANCIAL CORPORATION AND SUBSIDIARY
(Unaudited)
<TABLE>
<CAPTION>
At At
March 31, Setember 30,
1996 1995
-------------- -------------
<S> <C> <C>
Assets
Cash and Due from Banks $ 5,561,019 $ 2,988,544
Interest Bearing Deposits with Banks 3,293,546 5,669,978
Investment Securities (Market Value of
$ 722,735 and $2,660,870) 718,197 2,666,730
Securities Available For Sale, at Market Value 297,188 294,000
Mortgage Backed Securities (Market Value
of $1,318,806 and $1,465,156) 1,310,758 1,456,738
Loans Receivable, Net 39,755,421 37,781,277
Federal Home Loan Bank Stock 416,200 408,000
Office Property and Equipment, Net 584,933 576,685
Real Estate Owned and in Judgment, Net 60,998 59,977
Accrued Interest Receivable 496,971 561,034
Other Assets 115,396 117,989
-------------- -------------
TOTAL ASSETS $ 52,610,627 $ 52,580,952
LIABILITIES AND STOCKHOLDER'S EQUITY
Deposits $ 46,687,159 $ 46,803,983
Advance Payments by Borrowers for Taxes
and Insurance 91,176 84,996
Accrued Interest Payable 217,580 213,316
Accrued Income Taxes Payable 40,984 52,549
Other Liabilities 290,533 295,837
-------------- -------------
TOTAL LIABILITIES $ 47,327,432 $ 47,450,681
Stockholders' Equity:
Common Stock, $.10 par value; 1,000,000 shares
authorized; 247,387 shares issued and outstanding
as of March 31, 1996 and september 30, 1995 $ 24,739 $ 24,739
Additional Paid-In Capital 2,262,074 2,262,074
Unamortized Deferred Compensation (33,381) (37,548)
Unrealized Holding Loss on Securities Available
for Sale, Net (1,688) (3,600)
Retained Earnings, Substantially
Restricted 3,031,451 2,884,606
-------------- -------------
Total Stockholders' Equity $ 5,283,195 5,130,271
-------------- -------------
Total Liabilities and
Stockholders' Equity $ 52,610,627 $ 52,580,952
-------------- -------------
</TABLE>
See Accompanying notes to consolidated financial statements
CONSOLIDATED STATEMENTS OF INCOME
MID-CENTRAL FINANCIAL CORPORATION AND SUBSIDIARY
(Unaudited)
Three Months Ended March 31,
---------------------------
1996 1995
----------- -----------
INTEREST INCOME
Loans Receivable $ 836,176 $ 647,925
Mortgage - Backed Securities 23,607 27,085
Investment Securities 108,587 182,919
Other 7,004 7,042
----------- -----------
Total Interest Income $ 975,374 $ 864,971
INTEREST EXPENSE ON DEPOSITS $ 531,483 $ 480,570
----------- -----------
NET INTEREST INCOME $ 443,891 $ 384,401
PROVISION FOR LOAN LOSSES 15,000 9,000
----------- -----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES $ 428,891 $ 375,401
----------- -----------
OTHER INCOME
Loan Origination Fees $ 2,205 $ 737
Service Fees on Deposit Accounts 25,241 26,141
Other Operating Income $ 10,702 $ 13,088
----------- -----------
Total Other Income $ 38,148 $ 39,966
----------- -----------
OTHER EXPENSE
Compensation, Payroll Taxes and
Fringe Benefits $ 154,747 $ 146,639
Occupancy 37,959 35,344
Data Processing Services 6,906 1,844
Federal Insurance Premiums 32,625 32,200
Advertising 9,584 6,360
Other Operating Expense 55,669 49,804
----------- -----------
Total Other Expense $ 297,490 272,191
----------- -----------
INCOME BEFORE INCOME TAX EXPENSE $ 169,549 $ 143,176
INCOME TAX EXPENSE 68,888 $ 57,689
----------- -----------
NET INCOME $ 100,661 $ 85,487
----------- -----------
NET INCOME PER COMMON SHARE $ 0.40 $ 0.33
----------- -----------
See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF INCOME
MID-CENTRAL FINANCIAL CORPORATION AND SUBSIDIARY
(Unaudited)
Six Months Ended March 31,
---------------------------
1996 1995
----------- -----------
INTEREST INCOME
Loans Receivable $ 1,650,228 $ 1,282,987
Mortgage - Backed Securities 48,704 53,391
Investment Securities 226,479 383,318
Other 15,231 15,783
----------- -----------
Total Interest Income $ 1,940,642 $ 1,735,479
INTEREST EXPENSE ON DEPOSITS $ 1,084,790 $ 951,981
----------- -----------
NET INTEREST INCOME $ 855,852 $ 783,498
PROVISION FOR LOAN LOSSES 30,000 9,457
----------- -----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES $ 825,852 $ 774,041
----------- -----------
OTHER INCOME
Loan Origination Fees $ 4,945 $ 1,633
Service Fees on Deposit Accounts 51,655 52,816
Other Operating Income $ 26,973 $ 35,760
----------- -----------
Total Other Income $ 83,573 $ 90,209
----------- -----------
OTHER EXPENSE
Compensation, Payroll Taxes and
Fringe Benefits $ 317,862 $ 348,695
Occupancy 73,573 74,821
Data Processing Services 8,839 12,737
Federal Insurance Premiums 65,039 64,707
Advertising 17,605 14,079
Other Operating Expense 116,593 119,376
----------- -----------
Total Other Expense $ 599,511 $ 634,415
----------- -----------
INCOME BEFORE INCOME TAX EXPENSE $ 309,914 $ 229,835
INCOME TAX EXPENSE 125,961 97,269
----------- -----------
NET INCOME $ 183,953 $ 132,566
----------- -----------
NET INCOME PER COMMON SHARE $ 0.73 $ 0.50
----------- -----------
See accompanying notes to consolidated financial statements.
MID-CENTRAL FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended March 31,
--------------------------
1996 1995
----------- -----------
<S> <C> <C>
OPERATING ACTIVITIES
Net Income $ 183,953 $ 132,566
Adjustments to reconcile Net Income to
Cash Provided by Operating Activities:
Federal Home Loan Bank Stock Dividend (8,200) --
Provision for Loan Losses 30,000 9,457
Provision for Real Estate Owned Losses -- 7,543
Depreciation 25,666 32,071
Amortization of Premiums on Loans, Mortgage-Backed
Securities, & Investments Securities 359 2,216
Amortization of Restricted Stock 4,167 17,610
Gain on Sale of Real Estate Owned and In
Judgement -- (692)
Loss on Sale of Securities & Other 438 (4,527)
Increase (Decrease) In Deferred Income Taxes 1,275 (1,809)
(Increase) Decrease In Accrued Interest Receivable 64,062 (80,170)
Increase (Decrease) In Income Taxes Payable (11,565) 71,546
Increase In Accrued Interest Payable 4,264 45,282
Other (Net) 11,642 (8,414)
----------- -----------
Net Cash Provided by
Operating Activities $ 306,061 $ 222,679
----------- -----------
INVESTING ACTIVITIES
Proceeds from Maturity and Calls of
Investment Securities $ 4,324,998 $ 2,138,858
Principal Collected on Investments -- 18,390
Purchased of Investments Securities -- (294,118)
Principal Collected on Mortgage-Backed Securities 145,588 163,783
Purchased of Mortgage-Backed Securities -- (250,896)
Net Increase in Loans (2,016,525) (1,078,767)
Purchased of Premises & Equipment (33,715) (9,621)
Proceeds from Sale of Real Estate Owned -- 140,000
----------- -----------
Net Cash Provided by
Investing Activities $ 2,420,346 827,629
----------- -----------
FINANCING ACTIVITIES
Net Decrease In Deposit Accounts $ (116,824) $ (935,411)
Dividends Paid (37,108) (39,058)
----------- -----------
Net Cash Used by
Financing Activities $ (153,932) $ (974,469)
----------- -----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS $ 2,572,475 $ 75,839)
Cash and Cash Equivalents - Beginning of Period 2,988,544 1,683,700
----------- -----------
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 5,561,019 $ 1,759,539
----------- -----------
</TABLE>
See accompany notes to consolidated financial statements.
MID-CENTRAL FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS'S EQUITY
(Unaudited)
<TABLE>
<CAPTION>
Holding Loss
Common Stock Additional Unamortized on Securities
------------------ Paid-in Deferred Available for Retained
Shares Amount Capital Compensation Sale Earnings Total
------- ------- ---------- -------- ------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance, September 30,1993 -- $ -- $ -- $ -- $ -- $ 2,492,937 $ 2,492,937
Net Income -- -- -- -- -- 219,718 219,718
Issuance of Common Stock 260,387 26,039 2,380,894 -- -- -- 2,406,933
Payment of Dividends -- -- -- -- -- (19,529) (19,529)
Restricted stock granted -- -- -- (78,110) -- -- (78,110)
Amortization of Restricted
Stock -- -- -- 17,867 -- -- 17,867
------- ------- ---------- -------- ------- ----------- -----------
Balance September 30,1994 260,387 $26,039 $2,380,894 $(60,243) $ -- $ 2,693,126 $ 5,039,816
Net income -- -- -- -- -- 325,577 325,577
Payment of Dividends -- -- -- -- -- (77,142) (77,142)
Amortization of Restricted
Stock -- -- -- 22,695 -- -- 22,695
Net Unrealized Holding Loss
on Securited Available for Sale -- -- -- (3,600) -- (3,600)
Redemption of Common Stock (13,000) $(1,300 $ (118,820) $ -- $ -- $ (56,955) $ (177,075)
------- ------- ---------- -------- ------- ----------- -----------
Balance September 30,1995 247,387 $24,739 $2,262,074 $(37,548) $(3,600) $ 2,884,606 $ 5,130,271
------- ------- ---------- -------- ------- ----------- -----------
Net Income -- -- -- -- -- 183,953 183,953
Payment of Dividends -- -- -- -- -- (37,108) (37,108)
Amortization of Retricted
Stock -- -- -- 4,167 -- -- 4,167
Net Unrealized Holding Loss
on Securities Available for Sale -- -- -- 1,912 -- 1,912
Redemption of Common Stock -- -- -- -- -- -- 0
------- ------- ---------- -------- ------- ----------- -----------
Balance March 31, 1996 247,387 $24,739 $2,262,074 $(33,381) $(1,688) $ 3,031,451 $ 5,283,195
------- ------- ---------- -------- ------- ----------- -----------
</TABLE>
MID-CENTRAL FINANCIAL CORPORATION AND SUBSIDIARY
Notes to Consolidated Financial Statements
(1) Basis of Presentation
The accompanying unaudited Consolidated Financial Statements have been
prepared in accordance with the instructions to Form 10-Q. The Form
10-Q does not include all the information and footnotes required by
generally accepted accounting principles for complete financial
statements. It is assumed that the readers of these interim financial
statements have read or have access to the Mid-Central Financial
Corporation 1995 Annual Report for the period ended September 30, 1995.
Therefore, only material changes in financial condition and results of
operations are discussed in Management's Discussion and Analysis.
In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments (consisting of normal
accruals) considered necessary for a fair presentation. The results of
operations for interim periods are not necessarily indicative of the
results to be expected for the entire year.
(2) Earnings per Share
The weighted average number of shares outstanding for purposes of
computing primary earnings per share for the three months and six
months ended March 31, 1996 were 252,947 and 252,245, respectively. The
weighted average number of shares outstanding for purposes of computing
primary earnings per share for the three months and six months ended
March 31, 1995 were 262,433 and 262,821, respectively. All of the
foregoing weighted average number of share calculations include both
shares of common stock outstanding and common stock equivalents
attributable to outstanding common stock options.
(4) Regulatory Capital Requirements
At March 31, 1996, Mid-Central Federal Savings Bank (the "Bank"), the
subsidiary of Mid-Central Financial Corporation, exceeded each of the
three current minimum regulatory capital requirements. The following
table shows the calculation of the Bank's tangible, core, and
risk-based capital and applicable percentages of adjusted assets at
March 31, 1996.
At March 31, 1996
----------------------------
(Dollars in Thousands) Amount Percentage
------ ----------
Tangible capital $4,338 8.24%
Tangible capital requirement 790 1.50
------ ----
Excess $3,548 6.74%
====== ====
Core capital $4,338 8.24%
Core capital requirement 1,579 3.00
------ ----
Excess $2,759 5.24%
====== ====
Risk-based capital $4,504 15.42%
Risk-based capital requirement 2,337 8.00
------ -----
Excess $2,167 7.42%
====== =====
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
OVERVIEW
Mid-Central Financial Corporation (the "Company") currently conducts no
business other than through its subsidiary, Mid-Central Federal Savings Bank
(the "Bank"), a federal stockchartered savings bank. The principal business of
the Bank is attracting deposits from the general public through a variety of
deposit programs and originating loans secured primarily by owner-occupied
residential properties and, to a lesser extent, originating consumer loans. The
Bank presently operates out of three full service offices located in the central
Minnesota towns of Wadena, Long Prairie, and Staples.
RESULTS OF OPERATIONS
Net Income. The Company recorded net income of $100,661 for the quarter
ended March 31, 1996, an increase of $15,174, or 18%, from net income of $85,487
recorded for the quarter ended March 31, 1995. The increase was primarily the
result of an increase in net interest income of $59,490, offset by an increase
in operating expenses of $25,300 and an increase in income taxes of $11,199. Net
income for the three months ended March 31, 1996 represents an annualized return
on average assets of 0.77% compared with an annualized return on average assets
of 0.67% for the three months ended March 31, 1995.
The Company reported net income of $183,953 for the six months ended
March 31, 1996, which was a increase of $51,387 or 39%, from the net income of
$132,566 recorded for the same period ended March 31, 1995. The increase was
primarily a result of an increase in net interest income of $95,199 and a
decrease in compensation expense of $30,833, offset by an increase in provision
for loan losses of $20,543 and an increase in income tax expense of $28,692. Net
income for the six months ended March 31, 1996 represents an annualized return
on average assets of 0.70% compared with an annualized return on average assets
of 0.51% for the six months ended March 31, 1995.
Net Interest Income. Net interest income increased by $59,490 or 15.5%,
from $384,401 for the three months ended March 31, 1995, to $443,891 for the
three months ended March 31, 1996. The net interest margin for the quarter ended
March 31, 1996, was 3.59%, an increase from 3.16% for the quarter ended March
31, 1995. The interest rate spread between interest earning assets and interest
bearing liabilities also increased to 3.31% for the quarter ended March 31,
1996, from 2.87% for the quarter ended March 31, 1995.
Net interest income increased by $72,354, or 9.2%, from $783,498 for
the six months ended March 31, 1995, to $855,852 for the six months ended March
31, 1996. The net interest margin in the six months ended March 31, 1996
increased to 3.46% from the net interest margin of 3.20% during the six months
ended March 31, 1995. Interest rate spreads between interest earning assets and
interest bearing liabilities also increased to 3.18% in the six months ended
March 31, 1996 from 2.92% in the six months ended March 31, 1995.
Provision for Loan Losses. The provision for loan losses of $15,000 and
$30,000 for the three and six month periods ended March 31, 1996 reflects
management's best estimate that the allowance for loan losses is adequate to
cover future loan losses. For the three and six month periods ended March 31,
1995, the Company recorded provisions for loan losses of $9,000 and $9,457.
Non-Interest Income. Non-interest income decreased by $1,818, or 4.6%,
from $39,966 for the three months ended March 31, 1995 to $38,148 for the three
months ended March 31, 1996.
Non-interest income decreased by $6,636, from $90,209 for the six
months ended March 31, 1995, to $83,573 for the six months ended March 31, 1996.
The decrease was primarily due to a decrease in other operating income of
$8,787.
Non-Interest Expense. Non-interest expense increased by $25,299, or
9.3%, from $272,191 for the three months ended March 31, 1995 to $297,490 for
the three months ended March 31, 1996. The increase was caused by substantially
similar increases in all expense categories.
Non-interest expense decreased by $34,903, or 7.4%, from $634,414 for
the six month period ended March 31, 1995 to $599,511 for the six months ended
March 31, 1996. The decrease was primarily due to one-time compensation expenses
associated with the retirement of Robert D. Iken who retired from the President
and CEO position as of December 31, 1994.
Income Taxes. Income taxes increased by $11,199 and $28,692,
respectively, for the three and six month periods ended March 31, 1996 from the
same periods ended March 31, 1995. The effective tax rates stayed virtually the
same in the three and six month periods ended March 31, 1996, as compared to the
effective tax rates from the same periods ended March 31, 1995.
FINANCIAL CONDITION
Interest Bearing Deposits with Banks. Interest bearing deposits with
banks decreased by approximately $2.4 million, or 42%, from September 30, 1995
to March 31, 1996. This decrease is solely attributable to the maturity of
approximately $2.4 million in securities.
Investment Securities. Investment securities decreased by approximately
$1.9 million, or 73.1% from September 30, 1995 to March 31, 1996. The decrease
was due to maturities and payments on the underlying securities. On September
30, 1995 there was an unrealized loss on investment securities of $5,860; on
March 31, 1996, the unrealized loss on investment securities had changed to an
unrealized gain of $4,538.
Securities Available for Sale. Securities available for sale are
carried at market value. No securities were purchased for the available-
for-sale investment category during the three month period ended March 31, 1996.
At March 31, 1996, unrealized holding losses on the securities available for
sale were $1,688, net of corresponding income taxes. At September 30, 1995,
unrealized holding losses on the securities available for sale were $3,600, net
of corresponding income taxes.
Mortgage-Backed Securities. Mortgage-backed securities decreased by
$145,980, or 10%, from September 30, 1995 to March 31, 1996. The decrease was
due to the payment of scheduled payments and prepayments on mortgage-backed
securities of approximately $146,000. The net unrealized gain on mortgage-backed
securities remained virtually the same with a net unrealized gain of $8,048 at
March 31, 1996, and a net unrealized gain of $8,418 at September 30, 1995.
Loans Receivable. Loans receivable increased $1,974,144, or 5.2%, from
September 30, 1995 to March 31, 1996. This increase reflects the origination of
approximately $7.2 million in loans during the six month period, partially
offset by loan repayments.
Allowance for Loan Losses. The allowance for loan losses is based upon
management's consideration of current and anticipated economic conditions which
may affect the ability of the borrowers and the loan portfolio to repay their
loans. At March 31, 1996 the Company provided allowances for loan losses of
$180,865, or 0.45% of total loans. At September 30, 1995 the Company provided
allowances for loan losses of $165,353, or 0.54% of total loans. In management's
opinion such allowances for loan losses are adequate to cover the anticipated
loan losses of the current loan portfolio.
Deposits. Deposits decreased by $116,824, or 0.3% from September 30,
1995 to March 31, 1996. The decrease was primarily due to decreases in the
balances of Money Market Deposit Accounts and $100,000 Certificate of Deposit
accounts offset by increases in NOW accounts and regular certificate accounts.
Stockholders' Equity. Stockholder's Equity increased by $152,924, or
3.0%, from September 30, 1995, to March 31, 1996. This increase was primarily
due to the net income earned during the six month period offset by cash
dividends paid to the stockholders.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of funds are principal and interest
payments on loans, investments, and mortgage-backed securities, and funds
provided by operations. Mortgagebacked amortization and short-term investments
are a relatively predictable source of funds. Current Office of Thrift
Supervision regulations require the Bank to maintain cash and eligible
investments in an amount equal to at least 5% of customer accounts and
short-term borrowing to assure its ability to meet demands for withdrawals. At
March 31, 1996, the Bank's long-term liquidity ratio was 12.7% which was in
excess of the minimum regulatory requirements.
The Company uses its capital resources principally to meet its ongoing
commitments to fund maturing certificates of deposits and loan commitments,
maintain its liquidity, and meet operating expenses. At March 31, 1996, the
Company had commitments to originate loans totaling $147,111. The Company
considers its liquidity and capital resources to be adequate to meet its
foreseeable short and long-term needs. The Company expects to be able to fund or
refinance, on a timely basis, its material commitments and long-term
liabilities.
MID-CENTRAL FINANCIAL CORPORATION AND SUBSIDARY
Supplementary Information (Unaudited)
<TABLE>
<CAPTION>
Consolidated Average Balance Sheets, Interest and Dividends
Earned or Paid, and Related Interest Yields and Rates
--------------------------------------------------------------------------------------
Three Months Ended Mar 31, 1996 Three Months Ended Mar 31, 1995
--------------------------------------------------------------------------------------
Interest Interest
Average and Yield/ Average and Yield/
Balance Dividends Cost Balance Dividends Cost
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Interest-earnings
assets:
Mortgage loans $ 30,785,000 $ 624,740 8.12% $25,290,616 $ 490,330 7.76%
Consumer loans 8,550,691 195,558 9.15 6,879,321 151,228 8.79
Commerical business loans 658,687 15,878 9.64 261,953 6,367 9.72
------------ ---------- ----------- --------- ------
Total net loans $ 39,994,378 $ 836,176 8.36% $32,431,890 $ 647,925 7.99%
Mortgage-
backed securities $ 1,346,038 $ 23,607 7.02% $ 1,558,270 $ 27,085 6.95%
Investment securities
& Other 5,625,710 83,240 5.92 14,522,718 186,586 5.14
Daily interest-
bearing deposits 2,447,925 32,351 5.29 157,958 3,375 8.55
---------- --------- ----- ----------- --------- ------
Total interest-earning
assets $ 49,414,051 $ 975,374 7.90 $48,670,836 $ 864,971 7.11%
Non-interest earning
assets:
Office Properties and
equipment, net $ 583,776 -- -- $ 585,518 -- --
Real estate, net 60,488 -- -- 0 -- --
Other non-interest-
earning assets 2,171,701 1,718,884
---------- --------- ----- -----------
Total assets $ 52,230,016 $50,975,238
------------ -----------
Interest-bearing liablities:
Passbook $ 5,481,548 $ 35,760 2.61% $ 5,510,116 $ 36,660 2.66%
NOW and MMDA acct 8,208,334 49,851 2.43 8,279,676 53,842 2.60
Certificate of Deposit 32,613,438 445,872 5.47 31,508,862 390,068 4.95
------------ --------- ----- ----------- --------- ------
Total interet bearing
liabilities $ 46,303,320 $ 531,483 4.59% $45,298,654 $ 480,570 4.24%
Non-interest bearing
liabilities: $ 687,411 $ -- -- $ 567,569 $ -- --
------------ --------- ----- ----------- --------- ------
Total Liabilities $ 46,990,731 $45,866,223
Retained Earnings 5,239,285 -- -- 5,109,015 -- --
------------ --------- ------ ------------ --------- ------
Total liabilites and
retained earnings $ 52,230,016 $50,975,238
------------ -----------
Net interest income $ 443,891 $ 384,401
--------- ---------
Interest rate spread 3.31% 2.87%
----- ------
Net interest margin 3.59% 3.16%
----- ------
Ratio of average interest-earnings
assets to average interest-
bearing liabilities 106.72% 107.44%
------ ------
</TABLE>
MID-CENTRAL FINANCIAL CORPORATION AND SUBSIDARY
Supplementary Information (Unaudited)
<TABLE>
<CAPTION>
Consolidated Average Balance Sheets, Interest and Dividends
Earned or Paid, and Related Interest Yields and Rates
--------------------------------------------------------------------------------------
Six Months Ended Mar 31, 1996 Six Months Ended Mar 31, 1995
--------------------------------------------------------------------------------------
Interest Interest
Average and Yield/ Average and Yield/
Balance Dividends Cost Balance Dividends Cost
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Interest-earnings
assets:
Mortgage loans $ 30,480,459 $1,231,552 8.08% $25,329,146 $ 983,140 7.76%
Consumer loans 8,471,862 390,952 9.23 6,595,895 289,872 8.79
Commerical business loans 562,638 27,724 9.86 217,751 9,975 9.16
------------ --------- ------ ----------- --------- ------
Total net loans $ 39,514,959 $1,650,228 8.35% $32,142,792 $1,282,987 7.98%
Mortgage-
backed securities $ 1,384,315 $ 48,704 7.04% $ 1,526,717 $ 53,391 6.99%
Investment securities
& Other 6,612,559 187,759 5.68 15,013,316 391,673 5.22
Daily interest-
bearing deposits 1,982,117 53,951 5.44 238,122 7,428 6.24
------------ --------- ------ ----------- --------- ------
Total interest-earning
assets $ 49,493,950 $1,940,642 7.84 $48,920,947 $1,735,479 7.10%
Non-interest earning
assets:
Office Properties and
equipment, net $ 580,478 -- -- $ 587,840 -- --
Real estate, net 60,269 -- -- 55,078 -- --
Other non-interest-
earning assets 2,326,967 1,676,477
------------ --------- ------ ----------- --------- ------
Total assets $ 52,461,664 $51,240,342
------------ -----------
Interest-bearing liablities:
Passbook $ 5,474,876 $ 71,829 2.62% $ 5,570,319 $ 73,455 2.64%
NOW and MMDA acct 8,327,702 101,635 2.44 8,448,579 108,995 2.58
Certificate of Deposit 32,754,198 911,326 5.56 31,581,326 769,531 4.87
------------ --------- ------ ----------- --------- ------
Total interet bearing
liabilities $ 46,556,776 $1,084,790 4.66% $45,600,224 $ 951,981 4.18%
Non-interest bearing
liabilities: $ 699,405 $ -- -- $ 548,979 $ -- --
------------ --------- ------ ----------- --------- ------
Total Liabilities $ 47,256,181 $46,149,203
Retained Earnings 5,205,483 -- -- 5,091,139 -- --
------------ --------- ------ ----------- --------- ------
Total liabilites and
retained earnings $ 52,461,664 $51,240,342
------------ -----------
Net interest income $ 855,852 $ 783,498
--------- ---------
Interest rate spread 3.18% 2.92%
----- ------
Net interest margin 3.46% 3.20%
----- ------
Ratio of average interest-earnings
assets to average interest-
bearing liabilities 106.31% 107.28%
------ ------
</TABLE>
MID-CENTRAL FINANCIAL CORPORATION AND SUBSIDIARY
Supplementary Information (Unaudited)
Effects of Changing Rates and Volumes on Net Interest Income
Three Months Ended March 31, 1996 Compared to
Three Months Ended March 31, 1995
Increase(Decrease)
Due to
----------------------------------
Volume Rate Total
--------- -------- ---------
Interest-earnings assets:
Mortgage loans $ 110,759 $ 23,651 $ 134,410
Consumer loans 37,935 6,395 44,330
Commercial business loans 9,564 (53) 9,511
--------- -------- ---------
Total net change in
income on loans $ 158,258 $ 29,993 $ 188,251
Mortgage-backed securities (3,746) 268 (3,478)
Investment securities & Other (127,382) 24,036 (103,346)
Daily interest-bearing
deposits 29,177 (201) 28,976
Total net change in
on interest-
earning assets $ 56,307 $ 54,096 $ 110,403
--------- -------- ---------
Interest-bearing liabilities:
Passbook $ (195) $ (705) $ (900)
NOW and money market accounts (465) (3,526) (3,991)
Cetificates of deposit 13,963 41,841 55,804
--------- -------- ---------
Total net change in
expense on deposits $ 13,303 $ 37,610 $ 40,913
--------- -------- ---------
Net change in net
interest income $ 43,004 $ 16,486 $ 59,490
--------- -------- ---------
MID-CENTRAL FINANCIAL CORPORATION AND SUBSIDIARY
Supplementary Information
At
March 31, At
1996 September 30,
(unaudited) 1995
-------------- ------------
NON-PERFORMING LOANS
Loans accounted for on
a nonaccrual basis:
Residential real estate $ -- $ 124,571
Commercial real estate -- --
Commercial business -- --
Consumer 1,563 1,303
-------------- ------------
Total $ 1,563 $ 125,874
-------------- ------------
Total nonaccrual loans 1,563 125,874
Real Estate Owned 71,763 70,562
-------------- ------------
Total non-performing assets $ 73,326 $ 196,436
-------------- ------------
Total loans delinquent 90
days or more to net loans 0.00% 0.33%
-------------- -------------
Total loan delinquent 90
days or more to total assets 0.00% 0.24%
-------------- -------------
Total non-performing assets
to total assets 0.14% 0.37%
-------------- -------------
CLASSIFIED ASSETS
Doubtful $ -- $ --
Substandard 243,835 433,266
Special Mention 576,583 1,714
------------- ------------
Total Classified Assets $ 820,418 $ 434,980
-------------- ------------
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.
The Company held its Annual Meeting of Shareholders on January 5, 1996
for the following purposes:
1. To elect two directors to hold office until the 1999 Annual
Meeting of Shareholders or until successors are elected.
The Inspector of Election reported that the shareholders
present in person or by proxy voted for the election of the
directors as follows:
Alfred H. Neitzke For 210,426
Withheld 100
Duane J. Polman For 210,426
Withheld 100
The names of all other directors whose terms of office
continued beyond the meeting date are: Robert D. Iken, Sr.,
Gary W. Sellman, and Michael J. Ebner.
2. To ratify and approve the reappointment of Larson, Allen,
Weishair & Co. as the Company's independent public auditors
for the fiscal year ending September 30, 1996.
The Inspector reported that 210,426 shares were voted in favor
of said proposal; 100 shares were voted against the proposal;
and zero shares abstained.
The total shares voted in person or by proxy at the Annual Meeting of
Shareholders were 210,526 shares, or 85.1% of the Company's 247,387 total
outstanding shares.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
Exhibit 11 - Computation of Earnings per Share
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K - None.
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.
MID-CENTRAL FINANCIAL CORPORATION
(Registrant)
Date: May 10, 1996 By /s/ Gary W. Sellman
Gary W. Sellman
President, Chief Executive Officer
and Chief Financial Officer
Exhibit 11 - Computation of Earnings per Share
MID-CENTRAL FINANCIAL CORPORATION AND SUBSIDIARY
COMPUTATION OF EARNINGS PER SHARE
(Unaudited)
Three Months Three Months
Ended March 31 Ended March 31,
1996 1995
-------- --------
Computation of Earnings per Share
for Statements of Income:
- - ----------------------------------
Income applicable to common stock $100,661 $ 85,487
-------- --------
Weighted average number of Common and
common equivalent shares outstanding:
Weighted average common
shares outstanding 247,387 260,387
Dilutive effect of stock
options after application of
treasury stock method 5,560 2,046
Total $252,947 $262,433
-------- --------
Net Income per common shares $ 0.40 $ 0.33
-------- --------
Computation of Fully Diluted
Earnings per Share
- - ----------------------------------
Income applicable to common stock $100,661 $ 85,487
-------- --------
Weighted average number of common and
common equivalent shares outstanding:
Weighted average common
shares outstanding 247,387 260,387
Dilutive effect of stock
options after application of
treasury stock method 5,715 3,906
-------- --------
Total 253,102 264,293
-------- --------
Net Income per common share $ 0.40 $ 0.32
-------- --------
Exhibit 11 - Computation of Earnings per Share
MID-CENTRAL FINANCIAL CORPORATION AND SUBSIDIARY
COMPUTATION OF EARNINGS PER SHARE
(Unaudited)
Six Months Six Months
Ended March 31 Ended March 31,
1996 1995
-------- --------
Computation of Earnings per Share
for Statements of Income:
- - ----------------------------------
Income applicable to common stock $183,953 $132,566
-------- --------
Weighted average number of Common and
common equivalent shares outstanding:
Weighted average common
shares outstanding 247,387 260,387
Dilutive effect of stock
options after application of
treasury stock method 4,858 2,434
Total $252,245 $262,821
-------- --------
Net Income per common shares $ 0.73 $ 0.50
-------- --------
Computation of Fully Diluted
Earnings per Share
- - ----------------------------------
Income applicable to common stock $183,953 $132,566
-------- --------
Weighted average number of common and
common equivalent shares outstanding:
Weighted average common
shares outstanding 247,387 260,387
Dilutive effect of stock
options after application of
treasury stock method 4,935 3,364
-------- --------
Total $252,322 $263,751
-------- --------
Net Income per common share $ 0.73 $ 0.50
-------- --------
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 5,561,019
<INT-BEARING-DEPOSITS> 3,293,546
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<ALLOWANCE> 180,864
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0
0
<COMMON> 2,286,813
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