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Previous: EFTC CORP/, S-8, 1999-04-27 |
Next: PACKAGED ICE INC, 424B2, 1999-04-27 |
- --------------------------------------------------------------------------------
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(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
____ Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from _________ to _________
Commission file number 0-24433
-------
POINTE FINANCIAL CORPORATION
----------------------------
(Exact Name of Small Business Issuer as Specified in Its Charter)
Florida 65-0451402
------- ----------
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation or Organization) Identification No.)
21845 Powerline Road
Boca Raton, Florida 33433
-------------------------
(Address of Principal Executive Offices)
(561) 368-6300
--------------
(Issuer's Telephone Number, Including Area Code)
(Former Name, Former Address and Former Fiscal Year, if Changed
---------------------------------------------------------------
Since Last Report)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 [ ]
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date;
Common stock, par value $.01 per share 2,292,430 shares
- -------------------------------------- ---------------------------------
(class) Outstanding at April 15, 1999
Transitional small business disclosure format (check one):
YES [ ] NO [X]
- --------------------------------------------------------------------------------
CONFORMED COPY
<PAGE>
<TABLE>
<CAPTION>
POINTE FINANCIAL CORPORATION AND SUBSIDIARIES
INDEX
Part I. Financial Information
Item 1. Financial Statements Page
----
<S> <C>
Condensed Consolidated Balance Sheets -
At March 31, 1999 (unaudited) and at December 31, 1998...................................................2
Condensed Consolidated Statements of Earnings -
Three Months ended March 31, 1999 and 1998 (unaudited)...................................................3
Condensed Consolidated Statement of Stockholders' Equity -
Three Months ended March 31, 1999 (unaudited)............................................................4
Condensed Consolidated Statements of Cash Flows -
Three Months ended March 31, 1999 and 1998 (unaudited).................................................5-6
Notes to Condensed Consolidated Financial Statements (unaudited).........................................7-9
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations .............................................................................10-13
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K....................................................................14
SIGNATURES.....................................................................................................14
</TABLE>
1
<PAGE>
POINTE FINANCIAL CORPORATION AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
(Dollars in thousands)
<TABLE>
<CAPTION>
At
-----------------------------
March 31, December 31,
Assets 1999 1998
---- ----
(Unaudited)
<S> <C> <C>
Cash and due from banks $ 3,890 2,866
Interest-bearing deposits with banks 4,168 605
---------- -----------
Total cash and cash equivalents 8,058 3,471
Securities available for sale 43,117 51,275
Loans receivable, net of allowance for loan losses of $1,228
in 1999 and $1,078 in 1998 137,529 128,005
Loans held for sale 1,683 617
Accrued interest receivable 1,355 1,270
Premises and equipment, net 1,768 1,760
Restricted securities:
Federal Home Loan Bank stock 1,300 1,235
Federal Reserve Bank stock 479 479
Foreclosed real estate 158 353
Deferred income tax asset 335 221
Other assets 754 589
---------- -----------
Total $ 196,536 189,275
========== ===========
Liabilities and Stockholders' Equity
Liabilities:
Demand deposits 18,347 18,316
Savings and NOW deposits 13,167 12,940
Money-market deposits 40,684 38,721
Time deposits 66,518 71,235
---------- -----------
Total deposits 138,716 141,212
Advances from Federal Home Loan Bank 25,000 15,000
Other borrowings 3,055 3,446
Official checks 524 1,248
Accrued interest payable 614 695
Advance payments by borrowers for taxes and insurance 712 411
Other liabilities 510 228
---------- -----------
Total liabilities 169,131 162,240
---------- -----------
Stockholders' equity:
Preferred stock - -
Common stock 23 23
Additional paid-in capital 23,582 23,324
Retained earnings 4,367 4,065
Accumulated other comprehensive income (567) (377)
---------- -----------
Total stockholders' equity 27,405 27,035
---------- -----------
Total $ 196,536 189,275
========== ===========
</TABLE>
See Accompanying Notes to Condensed Consolidated Financial Statements.
2
<PAGE>
POINTE FINANCIAL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(Dollars in thousands, except share amounts)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------------
1999 1998
---- ----
(Unaudited)
<S> <C> <C>
Interest income:
Loans receivable $ 2,900 2,498
Securities 621 517
Other interest earning assets 9 7
---------- ---------
Total interest income 3,530 3,022
---------- ---------
Interest expense:
Deposits 1,303 1,440
Borrowings 289 101
---------- ---------
Total interest expense 1,592 1,541
---------- ---------
Net interest income 1,938 1,481
Provision for loan losses 155 65
---------- ---------
Net interest income after provision for loan losses 1,783 1,416
---------- ---------
Noninterest income:
Service charges on deposit accounts 147 195
Loan servicing fees 15 16
Net gains from sale of loans - 69
Net realized gains on sale of securities 29 2
Other 91 82
---------- ---------
Total noninterest income 282 364
---------- ---------
Noninterest expenses:
Salaries and employee benefits 808 701
Occupancy expense 267 260
Advertising and promotion 77 59
Professional fees 46 24
Federal deposit insurance premiums 15 14
Data processing 80 70
Other 292 180
---------- ---------
Total noninterest expenses 1,585 1,308
---------- ---------
Earnings before income taxes 480 472
Income taxes 178 171
---------- ---------
Net earnings $ 302 301
========== =========
Earnings per share:
Basic $ .13 .22
========== =========
Diluted $ .13 .20
========== =========
</TABLE>
See Accompanying Notes to Condensed Consolidated Financial Statements
3
<PAGE>
POINTE FINANCIAL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statement of Stockholders' Equity
Three Months Ended March 31, 1999
(Dollars in thousands, except share amounts)
<TABLE>
<CAPTION>
Accumulated
Other
Convertible Additional Compre- Total
Preferred Common Paid-In Retained hensive Stockholders'
Stock Stock Capital Earnings Income Equity
----- ----- ------- -------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1998 $ - 23 23,324 4,065 (377) 27,035
-------- ----- ------
Comprehensive income:
Net earnings (unaudited) - - - 302 - 302
Net change in unrealized
loss on securities
available for sale,
net of tax of $114
(unaudited) - - - - (190) (190)
-------- ----- -------
Comprehensive income (unaudited) - - - 302 (190) 112
-------- ----- -------
Proceeds from issuance of common
stock, exercise of stock options
(25,458 shares) (unaudited) - - 258 - - 258
----- --- ------- -------- ----- -------
Balance at March 31, 1999
(unaudited) $ - 23 23,582 4,367 (567) 27,405
===== === ======= ======== ===== =======
</TABLE>
See Accompanying Notes to Condensed Consolidated Financial Statements
4
<PAGE>
POINTE FINANCIAL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------
1999 1998
---- ----
(Unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 302 301
Adjustments to reconcile net earnings to net cash (used in) provided by
operating activities:
Provision for loan losses 155 65
Depreciation and amortization 105 97
Credit for deferred income taxes - (39)
Net amortization of fees, premiums, discounts and other 3 (26)
Gain on sale of securities (29) (2)
Gain on sale of loans - (69)
Originations of loans held for sale (1,066) (401)
Increase in accrued interest receivable (85) (32)
Increase in other assets (165) (60)
Proceeds from sale of loans held for sale - 779
(Decrease) increase in official checks (724) 285
Decrease in accrued interest payable (81) (16)
Increase (decrease) in other liabilities 282 (1)
--------- ---------
Net cash (used in) provided by operating activities (1,303) 881
--------- ---------
Cash flows from investing activities:
Purchase of securities available for sale (8,792) (18,564)
Purchase of securities held to maturity - (100)
Proceeds from sale of securities available for sale 12,070 9,549
Maturities and calls of securities available for sale 3,705 1,000
Principal repayments on securities available for sale 834 43
Principal repayments on securities held to maturity - 132
Net increase in loans (9,616) (7,261)
Net proceeds from sale of foreclosed real estate 195 99
Purchase of premises and equipment, net (113) (7)
Net (increase) decrease in restricted securities (65) 36
--------- ---------
Net cash used in investing activities (1,782) (15,073)
--------- ---------
Cash flows from financing activities:
Net increase in demand, savings, NOW and money-market deposits 2,221 8,423
Net (decrease) increase in time deposits (4,717) 2,730
Net increase in advances from Federal Home Loan Bank 10,000 2,900
Net (decrease) increase in other borrowings (391) 991
Increase in advance payments by borrowers for taxes and insurance 301 356
Proceeds from issuance of preferred stock, net of offering costs - 10
Proceeds from issuance of common stock 258 24
--------- ---------
Net cash provided by financing activities 7,672 15,434
--------- ---------
Net increase in cash and cash equivalents 4,587 1,242
Cash and cash equivalents at beginning of period 3,471 2,575
--------- ---------
Cash and cash equivalents at end of period $ 8,058 3,817
========= =========
(continued)
5
<PAGE>
POINTE FINANCIAL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows, Continued
(In thousands)
Three Months Ended
March 31,
--------------------
1999 1998
---- ----
(Unaudited)
Supplemental disclosure of cash flow information: Cash paid during the period
for:
Interest $ 1,673 1,557
========== =========
Income taxes $ 40 -
========== =========
Noncash transactions:
Reclassification of loans receivable to foreclosed real estate $ - 122
========== =========
Accumulated other comprehensive income, change in unrealized
loss on securities available for sale, net $ (190) (73)
========== =========
Stock dividends paid on preferred stock $ - 27
========== =========
</TABLE>
See Accompanying Notes to Condensed Consolidated Financial Statements.
6
<PAGE>
POINTE FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (unaudited)
1. General. In the opinion of the management of Pointe Financial
Corporation, the accompanying condensed consolidated financial
statements contain all adjustments (consisting principally of normal
recurring accruals) necessary to present fairly the financial position
at March 31, 1999 and the results of operations and cash flows for the
three-month periods ended March 31, 1999 and 1998. The results of
operations for the three months ended March 31, 1999 are not necessarily
indicative of the results to be expected for the year ending December
31, 1999.
Pointe Financial Corporation (the "Holding Company") was incorporated
under the laws of the State of Florida in September 1993. The Holding
Company's principal business is conducted through Pointe Bank (the
"Bank"), a state-chartered commercial bank. The Holding Company and the
Bank are collectively referred to as the "Company." The Bank provides a
wide range of community banking services to small and middle-market
business and individuals through its four banking offices located in
Broward, Miami-Dade and Palm Beach counties, Florida.
2. Loan Impairment and Loan Losses. The activity in the allowance for loan
losses is as follows (in thousands):
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------
1999 1998
---- ----
<S> <C> <C>
Balance at beginning of period $ 1,078 848
Provision charged to earnings 155 65
(Charge-offs), net of recoveries (5) -
------- -----
Balance at end of period $ 1,228 913
======= =====
</TABLE>
The average net investment in impaired loans and interest income recognized
and received on impaired loans is as follows (in thousands):
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1999 1998
---- ----
<S> <C> <C>
Average net investment in impaired loans $ 220 1,265
======= =======
Interest income recognized on impaired
loans $ - 18
======= =======
Interest income received on impaired
loans $ - 18
======= =======
(continued)
</TABLE>
7
<PAGE>
POINTE FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (unaudited), Continued
3. Earnings Per Share . Earnings per share of common stock has been computed
on the basis of the weighted-average number of shares of common stock
outstanding. For purposes of calculating diluted earnings per share,
because there was no active trading market until June 12, 1998 for the
Company's common stock, the average book value per share was used for
the three months ended March 31, 1998. For the three months ended March
31, 1999, average quoted market prices were used. For the three months
ended March 31, 1999 and 1998 outstanding stock options are considered
dilutive securities for purposes of calculating diluted earnings per
share. The following table presents the calculations of earnings per
share ($ in thousands, except per share amounts).
<TABLE>
<CAPTION>
Three Months Ended March 31,
--------------------------------------------------------------------------------------
1999 1998
------------------------------------------ -----------------------------------------
Weighted- Weighted-
Average Average
Earnings Shares Per Share Earnings Shares Per Share
(Numerator) (Denominator) Amount (Numerator) (Denominator) Amount
----------- ------------- ------ ----------- ------------- ------
<S> <C> <C>
Basic Earnings Per Share:
Net earnings $ 302 $ 301
Less preferred
stock dividends - (27)
----- ---
Net earnings available
to common
stockholders 302 2,284,593 $ .13 274 1,249,949 $ .22
===== =====
Effect of dilutive
securities-
Incremental shares
from assumed
exercise of
options 9,660 3,040
Incremental shares
from assumed
conversion of
preferred stock - 126,059
--------- ----------
Diluted Earnings Per Share:
Net earnings available
to common
stockholders
and assumed
conversions $ 302 2,294,253 $ .13 $ 274 1,379,048 $ .20
===== ========= ===== ===== ========== =====
(continued)
</TABLE>
8
<PAGE>
POINTE FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (unaudited), Continued
4. Regulatory Capital. The Bank is required to maintain certain minimum
regulatory capital requirements. The following is a summary at March 31,
1999 of the regulatory capital requirements and the Bank's actual
capital on a percentage basis:
<TABLE>
<CAPTION>
Regulatory
Actual Requirement
------ -----------
<S> <C> <C>
Total capital to risk-weighted assets 18.17% 8.00%
Tier I capital to risk-weighted assets 17.18% 4.00%
Tier I capital to total assets - leverage ratio 11.01% 4.00%
</TABLE>
5. Other Events. In March of 1999 the Company entered into an agreement
whereby the mortgage and note supporting a significant nonaccrual
residential real estate loan was assigned without recourse. Net proceeds
from the transaction reduced the Company's nonperforming assets by $1.2
million thus reducing the ratio of nonperforming loans and foreclosed
real estate to total assets from 1.60% at December 31, 1998 to .86% at
March 31, 1999.
6. Branch Acquisition. During March 1999, the Company signed a contract to
purchase land for a branch site in Coral Springs, Florida. Construction
is expected to begin during the second quarter of 1999 and the branch is
expected to be open in the fourth quarter of 1999.
9
<PAGE>
POINTE FINANCIAL CORPORATION AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Comparison of March 31, 1999 and December 31, 1998
Liquidity and Capital Resources
The Company's primary source of cash during the three months ended March 31,
1999 was from an increase in advances from the Federal Home Loan Bank of
$10.0 million and proceeds from the sale of securities of $12.1 million.
Cash was used primarily for net loan originations of $10.7 million and the
purchase of securities totaling $8.8 million. At March 31, 1999, the Company
had outstanding commitments to originate loans of $11.5 million and time
deposits of $36.2 million which mature in one year or less. It is expected
that these requirements will be funded from the sources described above. At
March 31, 1999, the Bank exceeded its regulatory liquidity requirements.
The following table shows selected ratios for the periods ended or at the
dates indicated:
<TABLE>
<CAPTION>
Three Months Three Months
Ended Year Ended Ended
March 31, December 31, March 31,
1999 1998 1998
---- ---- ----
<S> <C> <C> <C>
Average equity as a percentage
of average assets 14.11% 12.19% 9.10%
Equity to total assets at end of period 13.94% 14.28% 8.61%
Return on average assets (1) .63% .61% .78%
Return on average equity (1) 4.46% 5.02% 8.61%
Noninterest expense to average assets (1) 3.30% 3.27% 3.40%
Nonperforming loans and foreclosed real estate to
total assets at end of period .86% 1.60% 1.51%
</TABLE>
- --------------------------
(1) Annualized for the three months ended March 31, 1999 and 1998.
10
<PAGE>
POINTE FINANCIAL CORPORATION AND SUBSIDIARIES
The following table sets forth, for the periods indicated, information regarding
(i) the total dollar amount of interest and dividend income of the Company from
interest-earning assets and the resultant average yields; (ii) the total dollar
amount of interest expense on interest-bearing liabilities and the resultant
average cost; (iii) net interest/dividend income; (iv) interest-rate spread; (v)
net interest margin; and (vi) ratio of average interest-earning assets to
average interest-bearing liabilities.
<TABLE>
<CAPTION>
Three Months Ended March 31,
--------------------------------------------------------------------
1999 1998
--------------------------------- -----------------------------
Interest Average Interest Average
Average and Yield/ Average and Yield/
Balance Dividends Rate Balance Dividends Rate
------- --------- ---- ------- --------- ----
($ in Thousands)
<S> <C> <C> <C> <C> <C> <C>
Interest-earning assets:
Loans $ 133,404 2,900 8.70% $ 110,839 2,498 9.01%
Securities 47,851 621 5.19 34,841 517 5.94
Other interest-earning assets (1) 765 9 4.71 540 7 5.19
---------- --------- --------- -------
Total interest-earning assets 182,020 3,530 7.76 146,220 3,022 8.27
--------- -------
Noninterest-earning assets (2) 10,003 7,397
---------- ---------
Total assets $ 192,023 $ 153,617
========== =========
Interest-bearing liabilities:
Savings and NOW deposits 12,640 47 1.49 10,848 47 1.73
Money-market deposits 39,542 363 3.67 37,873 436 4.60
Time deposits 67,863 893 5.26 66,881 957 5.72
Borrowings (3) 23,015 289 5.02 7,473 101 5.41
------- --------- --------- -------
Total interest-bearing liabilities 143,060 1,592 4.45 123,075 1,541 5.01
--------- -------
Demand deposits 19,062 14,123
Noninterest-bearing liabilities 2,803 2,443
Stockholders' equity 27,098 13,976
---------- ---------
Total liabilities and
stockholders' equity $ 192,023 $ 153,617
========== =========
Net interest income $ 1,938 $ 1,481
========= =======
Interest-rate spread (4) 3.31% 3.26%
==== ====
Net interest margin (5) 4.26% 4.05%
==== ====
Ratio of average interest-earning assets to
average interest-bearing liabilities 1.27 1.19
========== =========
</TABLE>
(1) Includes interest-bearing deposits and federal funds sold.
(2) Includes nonaccrual loans.
(3) Includes advances from Federal Home Loan Bank, investment repurchase
agreements and federal funds purchased.
(4) Interest-rate spread represents the difference between the
weighted-average yield on interest-earning assets and the
weighted-average cost of interest-bearing liabilities.
(5) Net interest margin is net interest income divided by average
interest-earning assets.
11
<PAGE>
POINTE FINANCIAL CORPORATION AND SUBSIDIARIES
Comparison of the Three Months Ended March 31, 1999 and 1998
Results of Operations:
General. Net earnings for the three months ended March 31, 1999 were $302,000
or $.13 basic and diluted earnings per share compared to net earnings of
$301,000 or $.22 basic earnings per share ($.20 diluted earnings per
share) for the three months ended March 31, 1998. The reduction in
earnings per share during 1999 is primarily attributable to the issuance
of 869,565 shares of common stock in June, 1998. The increase in the
Company's net earnings was primarily due to an increase net interest
income, partially offset by increases in the provision for loan losses and
noninterest expenses.
Interest Income and Expense. Interest income increased by $508,000, or 16.8%,
from $3.0 million for the three months ended March 31, 1998 to $3.5
million for the three months ended March 31, 1999. Interest income on
loans increased $402,000 primarily due to an increase in the average loan
portfolio balance from $110.8 million for the three months ended March 31,
1998 to $133.4 million for the comparable period in 1999, partially offset
by a decrease in the average yield from 9.01% in 1998 to 8.70% in 1999.
Interest on securities increased $104,000 primarily due to an increase in
the average securities portfolio balance from $34.8 million in 1998 to
$47.9 million in 1999, partially offset by a decrease in the weighted
average yield of 75 basis points.
Interest expense on deposits decreased to $1.3 million for the three
months ended March 31, 1999 from $1.4 million for the three months ended
March 31, 1998. Interest expense on deposits decreased due to a decrease
in the average rate paid on deposits from 4.98% in 1998 to 4.34% in 1999,
partially offset by an increase in the average balance from $115.6 million
in 1998 to $120.0 million in 1999.
Interest expense on borrowings increased $188,000 to $289,000 for the
three months ended March 31, 1999 from $101,000 for the three months ended
March 31, 1998. Interest expense on borrowings increased due to an
increase in the average balance of borrowings outstanding from $7.5
million in 1998 to $23.0 million in 1999, partially offset by a decrease
in the weighted-average rate paid for the three months ended March 31,
1999 compared to the same period in 1998.
Provision for Loan Losses. The provision for loan losses is charged to
earnings to bring the total allowance to a level deemed appropriate by
management and is based upon historical experience, the volume and type of
lending conducted by the Company, industry standards, the amount of
nonperforming loans, general economic conditions, particularly as they
relate to the Company's market areas, and other factors related to the
collectibility of the Company's loan portfolio. The provision was $155,000
for the three months ended March 31, 1999 compared to $65,000 for the
comparable period in 1998. Management believes the balance in the
allowance for loan losses of $1.2 million at March 31, 1999 is adequate.
Noninterest Income. Noninterest income decreased $82,000 primarily due to
decreases in net gains from the sales of loans of $69,000 and service
charges on deposit accounts of $48,000, partially offset by an increase of
$27,000 in net realized gains on sale of securities for the three months
ended March 31, 1999 when compared to the same period in 1998.
Noninterest Expenses. Noninterest expenses increased $277,000 during the
three-month period ended March 31, 1999 compared to the same period in
1998, primarily due to increases in other expenses of $112,000 relating to
the overall growth of the Company and an increase in salaries and employee
benefits of $107,000 which also relates to the Company's overall expansion
plans.
Provision for Income Taxes. The income tax provision for the three months
ended March 31, 1999 was $178,000 (an effective rate of 37.1%) compared to
$171,000 (an effective rate of 36.2%) for the comparable 1998 period.
12
<PAGE>
POINTE FINANCIAL CORPORATION AND SUBSIDIARIES
Year 2000 Issues
Management of the Company is acutely aware of the Year 2000 problem and has an
ongoing program designed to ensure that its operational and financial systems,
and those of its commercial bank subsidiary, will not be adversely affected by
Year 2000 software failures, due to processing errors arising from calculations
using the Year 2000 date. The Bank's Data Processing Steering Committee has been
assigned the Year 2000 compliance topic. The committee meets monthly to assess
the extent to which the Bank and its outside vendors may be adversely affected
by the Year 2000 problem. The Committee has prepared and is responsible for
monitoring the Vendor Status Report which identifies the vendors and equipment
that have been determined to be Year 2000 sensitive. As of March 31, 1999, the
Bank had received written assurances from all of the materially significant
companies listed on the Vendor Status Report indicating that their systems are
Year 2000 compliant.
Based on current estimates, the Bank does not expect to incur a material amount
of expenses through December 31, 1999 on its program to redevelop, replace or
repair its computer applications to make them "Year 2000 compliant." It is
recognized that any Year 2000 compliance failures could result in additional
expense to the Bank.
While management is diligently working to assure Year 2000 compliance,
compliance by the Bank is largely dependent upon compliance by vendors,
primarily in the area of on-line data processing. Management is requiring its
computer system and software vendors to represent that the products are, or will
be, Year 2000 compliant, and has planned a program for testing for compliance.
The most significant vendor to the Bank, which provides the software support for
the in-house system, Information Technology, Inc., has completed their testing
process. The Bank has and will continue to participate in the testing and
verification of Year 2000 related changes made by that vendor.
Although management believes that the Bank's system will be Year 2000 compliant,
a written contingency plan has been developed to address problems that might be
caused from Year 2000 system failures.
13
<PAGE>
POINTE FINANCIAL CORPORATION AND SUBSIDIARIES
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits (numbered in accordance with Item 601 of Regulation S-B)
27. Financial Data Schedule (for SEC use only)
(b) No reports on Form 8-K were filed during the period covered by this report.
SIGNATURES
In accordance with 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.
POINTE FINANCIAL CORPORATION
(Registrant)
Date: April 26, 1999 By: /s/ R. Carl Palmer, Jr.
-------------------- --------------------------------------
R. Carl Palmer, Jr., President and
Chief Executive Officer
Date: April 26, 1999 By: /s/ Bradley R. Meredith
-------------------- --------------------------------------
Bradley R. Meredith, Senior Vice
President and Chief Financial Officer
14
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from Form 10-QSB
for the period ended March 31, 1999 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<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> 3,890
<INT-BEARING-DEPOSITS> 4,168<F1>
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 43,117
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 138,757
<ALLOWANCE> 1,228
<TOTAL-ASSETS> 196,536
<DEPOSITS> 138,716
<SHORT-TERM> 28,055
<LIABILITIES-OTHER> 2,360
<LONG-TERM> 0
<COMMON> 23
0
0
<OTHER-SE> 27,382
<TOTAL-LIABILITIES-AND-EQUITY> 196,536
<INTEREST-LOAN> 2,900
<INTEREST-INVEST> 621
<INTEREST-OTHER> 9
<INTEREST-TOTAL> 3,530
<INTEREST-DEPOSIT> 1,303
<INTEREST-EXPENSE> 1,592
<INTEREST-INCOME-NET> 1,938
<LOAN-LOSSES> 155
<SECURITIES-GAINS> 29
<EXPENSE-OTHER> 1,585<F2>
<INCOME-PRETAX> 480
<INCOME-PRE-EXTRAORDINARY> 480
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 302
<EPS-PRIMARY> .13
<EPS-DILUTED> .13
<YIELD-ACTUAL> 4.26
<LOANS-NON> 1,529
<LOANS-PAST> 1,244
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 1,154
<ALLOWANCE-OPEN> 1,078
<CHARGE-OFFS> 5
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 1,228
<ALLOWANCE-DOMESTIC> 0<F3>
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0<F3>
<FN>
(1) Includes short-term investments and interest-bearing deposits with banks.
(2) Other expense includes: salaries and employee benefits of $808, occupancy
and equipment of $267, and other expenses which totaled $510.
(3) Items are only disclosed on an annual basis in the Company's Form 10-K,
and are, therefore, not included in this Financial Data Schedule.
</FN>
</TABLE>
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