UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- --- SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended MARCH 31, 1997
-----------------------------------------------
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- ---- SECURITES EXCHANGE ACT OF 1934
For the transition period from to
------------ ---------------------------------
Commission File Number: 0-23878
----------------------------------------------------
BECKLEY BANCORP, INC.
- --------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
DELAWARE 55-0733525
- --------------------------------------------------------------------------------
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
200 MAIN STREET, BECKLEY, WEST VIRGINIA 25801
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(304) 252-6201
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
N/A
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the regristrant (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.
X Yes No
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of April 25, 1997:
Class Outstanding
----- -----------
$.10 par value common stock 601,465 shares
<PAGE>
BECKLEY BANCORP, INC.
INDEX
PART I - FINANCIAL INFORMATION
- ------------------------------
Item 1. - Financial Statements
------
Consolidated Statements of Financial Position
as of March 31, 1997 (Unaudited) and as of
December 31, 1996 1
Consolidated Statements of Income for the
Three Months Ended March 31, 1997 and
1996 (Unaudited) 2
Consolidated Statements of Cash Flows for
the Three Months Ended March 31, 1997
and 1996 (Unaudited) 3 - 4
Consolidated Statements of Shareholders'
Equity for the Three Months Ended March
31, 1997 and 1996 (Unaudited) 5
Notes to Consolidated Financial
Statements (Unaudited) 6 - 8
Item 2. - Managements Discussion and Analysis of
Financial Condition and Results of
Operations 9 - 13
PART II - OTHER INFORMATION
Item 5. - Other Information 13
-------
Item 6. - Exhibits and Reports on Form 8-K 13
-------
SIGNATURES 14
<PAGE>
BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 1. - Financial Statements
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Amounts in Thousands)
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
-------------- --------------
(Unaudited) *1
ASSETS
<S> <C> <C>
Cash and due from banks $ 388 $ 334
Interest bearing deposits in other banks 1,522 916
Securities available for sale 4,961 5,997
Securities held-to-maturity (market
value of $997) -- 997
Collateralized mortgage obligations and
other mortgage-backed securities
available-for-sale 16,289 16,484
Loans receivable, net - Note 4 20,403 20,180
Bank premises and equipment, at cost
net of accumulated depreciation 545 551
Federal Home Loan Bank stock - at cost 175 172
Accrued interest receivable 285 268
Other assets 55 65
------------- -------------
TOTAL ASSETS 44,623 45,964
------------- -------------
LIABILITIES AND
STOCKHOLDERS' EQUITY
LIABILITIES
Deposit accounts 32,975 32,246
Short-term borrowings -- 2,000
Deferred income tax liability 90 121
Accrued expenses and other liabilities 344 315
------------- -------------
TOTAL LIABILITIES 33,409 34,682
------------- -------------
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value,
250,000 shares authorized, none issued -- --
Common stock, $.10 par value,
1,250,000 shares authorized,
601,465 shares issued and outstanding 60 60
Additional paid-in-capital 5,678 5,674
Retained earnings (substantially restricted) 5,438 5,474
Unearned ESOP shares, at cost (142) (153)
Unearned MSBP shares, at cost (52) (59)
Net unrealized gain on
securities available for sale 232 286
------------- -------------
TOTAL STOCKHOLDERS' EQUITY 11,214 11,282
------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 44,623 $ 45,964
============= =============
</TABLE>
*1 - Derived from the audited financial statements.
The accompanying notes are an integral part of these statements.
<PAGE>
BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 1. - (Continued)
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Amounts in Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
Three Months
Ended
March 31,
-----------------------------
1997 1996
-------- ---------
INTEREST AND DIVIDEND INCOME
<S> <C> <C>
Loans, including certain fees $ 419 $ 363
Investment securities 78 85
Collateralized mortgage obligations and
other mortgage-backed securities 267 294
Interest bearing deposit accounts 19 25
Dividends, FHLB and other 6 6
------- -------
TOTAL INTEREST INCOME 789 773
------- -------
INTEREST EXPENSE
Deposit Accounts 346 332
Other 16 --
------- -------
TOTAL INTEREST EXPENSE 362 332
------- -------
NET INTEREST INCOME 427 441
Provision for losses on loans 2 15
------- -------
NET INTEREST INCOME AFTER
PROVISION FOR LOSSES ON LOANS 425 426
------- -------
NON-INTEREST INCOME
Service charges on deposit accounts 13 11
Other income 4 4
------- -------
TOTAL NON-INTEREST INCOME 17 15
------- -------
NON-INTEREST EXPENSE
Salaries and employee benefits 138 137
Occupancy and equipment expense 21 22
Federal deposit insurance premiums 5 19
Service bureau and other data processing 31 32
Other 100 90
------- -------
TOTAL NON-INTEREST EXPENSE 295 300
------- -------
INCOME BEFORE INCOME TAXES 147 141
------- -------
Provision for income taxes 54 55
------- -------
NET INCOME $ 93 $ 86
======= =======
EARNINGS PER COMMON SHARE - Note 3 $0.16 $0.15
======= =======
</TABLE>
The accompanying notes are an integral part of these statements.
<PAGE>
BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 1. - (Continued)
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in thousands)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1997 1996
-------------- --------------
OPERATING ACTIVITIES:
<S> <C> <C>
Net Income $ 93 $ 86
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 6 6
(Accretion) and amortization, net (16) (16)
Provision for losses on loans 2 15
Decrease in deferred loan fees (3) (4)
Amortized ESOP benefits 16 15
Amortized MSBP compensation 6 5
Increase in accrued income and
other assets (7) (17)
Increase (decrease) in accrued expenses and
other liabilities 29 (143)
----------- -----------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 126 (53)
----------- -----------
INVESTING ACTIVITIES:
Principal repayments and redemptions on
collateralized mortgage obligations and
other mortgage-backed securities
- Available-for-sale 150 225
Purchases of investment securities
- Available-for-sale -- (1,000)
- Held-to-maturity (2,491) (2,495)
Proceeds from maturities or calls of
investment securities
- Available-for-sale 1,000 1,000
- Held-to-maturity 3,500 6,500
Net (increase) decrease in loans made
to customers (222) (1,644)
Redemption of Federal Home Loan Bank stock -- 4
Purchase of Federal Home Loan Bank stock (3) --
Additions to premises and equipment -- (11)
----------- -----------
NET CASH PROVIDED (USED) BY INVESTING
ACTIVITIES $ 1,934 $ 2,579
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
<PAGE>
BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 1. - (Continued)
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)
(Amounts in thousands)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1997 1996
------------- -------------
FINANCING ACTIVITIES:
<S> <C> <C>
Net increase/(decrease) in deposit accounts $ 729 $ (1,006)
Proceeds from short-term borrowings 1,000 --
Maturities of short-term borrowings (3,000) --
Cash dividends paid on common stock (129) (116)
----------- -----------
NET CASH PROVIDED BY FINANCING
ACTIVITIES (1,400) (1,122)
----------- -----------
Increase in cash and cash equivalents 660 1,404
Cash and cash equivalents, beginning
of year 1,250 1,371
----------- -----------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 1,910 $ 2,775
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Cash paid during the period for:
Interest $ 357 $ 327
=========== ===========
Income taxes $ -- $ 101
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
<PAGE>
BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 1. - (Continued)
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)
(Amounts in thousands)
<TABLE>
<CAPTION>
Unrealized
Gains/
(Losses) on
Additional Deferred Unearned Available
Common Paid-in Retained ESOP MSBP For-Sale
Stock Capital Earnings Benefit Compensation Securities TOTAL
---------- ----------- --------- --------- ------------- ---------- ----------
THREE MONTHS ENDED MARCH 31, 1996
<S> <C> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1995 $ 60 $ 5,659 $ 5,391 $ (185) $ (83) 426 $ 11,268
Payment of $0.13 per share regular
cash dividend on February 15, 1996 (75) (75)
Payment of $0.07 per share special
cash dividend on February 15, 1996 (41) (41)
Net income, three months ended
March 31, 1996 86 86
Change in unrealized gain/(loss)
on available-for-sale
securities, net of tax (50) (50)
Change in unearned ESOP shares 4 11 15
Change in unearned MSBP shares (1) 6 5
---------- ----------- --------- --------- ------------- ----------- --------
Balance, March 31, 1996 $ 60 $ 5,662 $ 5,361 $ (174) $ (77) 376 $ 11,208
========== =========== ========= ========= ============= =========== ========
THREE MONTHS ENDED MARCH 31, 1997
Balance, December 31, 1996 $ 60 $ 5,674 $ 5,474 $ (153) $ (59) 286 $ 11,282
Payment of $0.14 per share regular
cash dividend on February 18, 1997 (82) (82)
Payment of $0.08 per share special
cash dividend on February 18, 1997 (47) (47)
Net income, three months ended
March 31, 1997 93 93
Change in unrealized gain/(loss)
on available-for-sale
securities, net of tax (54) (54)
Change in unearned ESOP shares 5 11 16
Change in unearned MSBP shares (1) 7 6
---------- ----------- --------- --------- ------------- ------------ --------
Balance, March 31, 1997 $ 60 $ 5,678 $ 5,438 $ (142) $ (52) 232 $ 11,214
========== =========== ========= ========= ============= ============ ========
</TABLE>
The accompanying notes are an integral part of these statements
<PAGE>
BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION / Item 1.- (Continued)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PRINCIPLES OF CONSOLIDATION: The unaudited consolidated financial
statements include the accounts of Beckley Bancorp, Inc. (the
"Corporation") and Beckley Federal Savings Bank (the "Savings Bank"),
its wholly owned subsidiary. All significant intercompany balances and
transactions have been eliminated in consolidation.
BASIS OF ACCOUNTING: The accompanying unaudited consolidated financial
statements were prepared in accordance with generally accepted
accounting principles for interim financial information and with
instructions for Form 10-QSB and Article 10 of Regulation S-X.
Accordingly, they do not include all information and disclosures
required by generally accepted accounting principles for complete
financial statements. However, all normal recurring adjustments have
been made which, in the opinion of management, are necessary to the fair
presentation of the financial statements.
The results of operations for the three month period ended March 31,
1997 are not necessarily indicative of the results which may be expected
for the year ending December 31, 1997.
LOANS: Loans are stated at the unpaid principal amount outstanding, net
of unearned income, deferred fees and the allowance for losses. Interest
on loans is credited to income as earned and accrued, only if deemed
collectible. The Bank discontinues recognizing accrued interest when a
loan is specifically determined to be impaired or when payment of
interest becomes past due by more than ninety days. Unpaid interest
previously accrued on these loans is reversed from income. Non-accrual
loans may be restored to accrual status when principal and interest
become current and full payment of principal and interest is expected.
Loan origination fees and certain costs of originating and closing
mortgage loans are deferred and recognized over the life of the loans as
an adjustment of yield. These amounts are not considered material to
operations.
ALLOWANCE FOR LOSSES ON LOANS: The allowance for loan losses
is maintained at a level believed adequate by management to
absorb potential losses in the loan portfolio. The amount of
the allowance is based upon management's evaluation of the
<PAGE>
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
collectibility of the loan portfolio. The amount of the allowance is
based upon management's evaluation of the collectibility of the loan
portfolio, including historical loan loss experience, growth and
composition of the loan portfolio, known and inherent risks in the
portfolio, current economic conditions, adverse situations which may
affect the borrowers' ability to repay, and the estimated value of any
underlying collateral. The allowance is increased by provisions for loan
losses charged against income, and reduced by charge-offs, net of
recoveries.
REAL ESTATE ACQUIRED IN SETTLEMENT OF LOANS: Real estate acquired in
settlement of loans is recorded, on the date acquired, at the lower of
the Bank's cost or management's estimate of its fair market value.
Subsequent adjustments made to reflect any decline in value below
management's original estimates are charged to current operations
through the provision for losses on real estate owned. Operating
expenses of such properties, related income, and gains and losses on
their disposition are included in operations. The Bank held no real
estate acquired in settlement of loans at March 31, 1997 or December 31,
1996.
NOTE 2. EARNINGS PER SHARE
Earnings per share were computed using the weighted average number of
common and common equivalent shares outstanding. Common equivalent
shares include shares issuable upon exercise of dilutive options
outstanding determined under the treasury stock method. The Corporation
accounts for the shares acquired by its ESOP in accordance with
Statement of Position 93-6 and the shares acquired for its Management
Stock Bonus Plan ("MSBP") in a manner similar to the ESOP shares; shares
acquired by the ESOP and MSBP are not considered in the weighted average
shares outstanding until the shares are committed for allocation or
allocated to an employee's individual account.
<PAGE>
NOTE 3 LOANS RECEIVABLE
Loans receivable at March 31, 1997 and December 31, 1996, consisted of
the following:
<TABLE>
<CAPTION>
(In thousands)
Mar 31, Dec 31,
1997 1996
---------- -------
<S> <C> <C>
First mortgage loans:
One to four family dwellings $ 13,070 $ 13,102
Multi-family dwellings and
non-residential property 1,521 1,409
Construction 188 96
Loans secured by deposits 605 616
Non-mortgage loans, consumer
and commercial 5,344 5,283
---------- ---------
TOTAL LOANS 20,728 20,506
Less:
Allowance for losses (305) (303)
Net deferred loan fees and
reserve for uncollected
interest (20) (23)
----------- ----------
LOANS RECEIVABLE, NET $ 20,403 $ 20,180
----------- ---------
Non-accruing loans at March 31
and December 31 were
as follows: $ 94 $ 53
----------- ---------
</TABLE>
In accordance with the provisions of FASB 114, "Accounting by Creditors
for Impairment of a Loan," and FASB 118, "Accounting by Creditors for
Impairment of a Loan - Income Recognition and Disclosures," the Bank
measures impaired loans on the present value of expected future cash
flows discounted at the loan's effective interest rate or, as a
practical expedient, at the loan's observable market price or the fair
market value of the collateral if the loan is collateral dependent.
Management has evaluated the loan portfolio and has determined that no
impaired loans existed at March 31, 1997 or December 31, 1996.
<PAGE>
BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION
Item 2. - Management's Discussion and Analysis of Financial
Condition and Results of Operations
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
Total Assets decreased by $1.3 million, or 2.8%, from $45.9 million at December
31, 1996 to $44.6 million at March 31, 1997. This decrease was primarily
attributable to the maturities of $2.0 million in investment securities of which
the proceeds were used to repay short term borrowings. This decrease was
partially offset by an increase in cash and cash equivalents of $0.7 million,
which resulted from an increase in deposit account balances.
Cash and Cash Equivalents increased $0.7 million, or 58.3%, from $1.2 million at
December 31, 1996 to $1.9 million at March 31, 1997. This increase was primarily
due to an increase in deposit account balances.
Investment Securities decreased by $2.0 million, or 28.6%, from $7.0 million at
December 31, 1996 to $5.0 million at March 31, 1997. This decrease was
attributable to the maturity of a $1.0 million short-term investment security
classified as held-to- maturity and a $1.0 million short-term investment
security classified as available-for-sale. The proceeds from the maturities were
used to repay short-term borrowings of $2.0 million.
Collateralized Mortgage Obligations and Other Mortgage-Backed Securities
decreased $0.2 million, or 1.2%, from $16.5 million at December 31, 1996 to
$16.3 million at March 31, 1997. This decrease was due to principal repayments
on the securities.
Loans Receivable increased $0.2 million, or 1.0%, from $20.2 million at December
31, 1996 to $20.4 million at March 31, 1997. This increase was primarily the
result of small increases in both mortgage and non-mortgage loans receivable.
Management increased the allowance for losses on loans by $2,000 during the
quarter. There were no charge-offs during the quarter. The increase in the
allowance for losses on loans is further discussed in "Management's Discussion
and Analysis of Results of Operations - Provision for Losses on Loans."
Total Liabilities decreased $1.3 million, or 3.7%, from $34.7 million at
December 31, 1996 to $33.4 million at March 31, 1997. This decrease was
primarily due to a $2.0 million decrease in short-term borrowings which was
partially offset by a $0.7 million increase in deposit account balances.
<PAGE>
BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 2. - (Continued)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
(Continued)
Deposit Accounts increased $0.7 million, or 2.2%, from $32.2 million at December
31, 1996 to $32.9 million at March 31, 1997. This increase was the result of
approximately $0.4 million of customer deposits in excess of customer
withdrawals and $0.3 million interest being credited to customer deposit
accounts during the quarter.
Short-term borrowings decreased $2.0 million, or 100%, to zero at March 31,
1997. This decrease resulted from the maturities of such borrowings.
Stockholders' Equity decreased $0.1 million, or 0.9%, from $11.3 million at
December 31, 1996 to $11.2 million at March 31, 1997. This decrease was
primarily due to the payment of regular and special cash dividends on February
18, 1997 of $129,000 and a $54,000 decrease, net of income taxes, in the market
value of securities classified as available-for-sale. These decreases were
partially offset by the Corporation's net income for the quarter of $93,000.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS FOR
THE THREE MONTHS ENDED MARCH 31, 1997
Net income for the three month period ended March 31, 1997 increased $7,000, or
8.1% from $86,000 for the same period in 1996 to $93,000 in 1997. This increase
was primarily due to a decrease in non-interest expense.
Interest income for the three month period ended March 31, 1997 increased
$16,000, or 2.1%, from $773,000 for the same period in 1996 to $789,000 in 1997.
This increase was the result of increased interest income on loans of
approximately $56,000. This increase was partially offset by a decreases in
interest income on collateralized mortgage obligations and other mortgage-backed
securities of approximately $27,000 and in interest income on investment
securites of approximately $7,000 and on interest bearing deposit accounts of
approximately $6,000. The increases and decreases in the separate components of
interest income were primarily the result of changes in the average balances of
the investments relating to each component.
Interest expense for the three month period ended March 31, 1997 increased
$30,000, or 9.0%, from $332,000 for the same period in 1996 to $362,000 in 1997.
This increase was primarily due to interest expense on short-term borrowings of
$16,000 and increased interest expense on deposit accounts of $14,000 as a
result of a general market increase in the average interest rates paid on
deposit accounts.
<PAGE>
BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 2. - (Continued)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS FOR
THE THREE MONTHS ENDED MARCH 31, 1997 (Continued)
Net interest income for the three month period ended March 31, 1997 decreased
$14,000, or 3.2%, from $441,000 for the same period in 1996 to $427,000 in 1997.
This decrease was primarily due to a $30,000 increase in interest expense which
was partially offset by a $16,000 increase in interest income.
Provision for loan losses was increased by $2,000 for the three month period
ended March 31, 1997 compared to an increase of $15,000 for the same period in
1996. Management's periodic evaluation of the adequacy of the allowance for
losses on loans, which included an evaluation of each delinquent loan, past loan
loss experience, current economic conditions, volume, growth and composition of
the loan portfolio and other relevant factors, at March 31, 1997 indicated that
the allowance should be increased by $2,000. As indicated by the evaluation,
management increased the allowance for losses on loans primarily to reflect the
inherent risk associated with the growth in the non-mortgage loan portfolio.
Although, at March 31, 1997, management believed the allowance to be adequate,
there can be no assurances that further additions will not be made and that any
losses that may occur will not exceed the amount provided by the allowance.
Non-interest expense for the three month period ended March 31, 1996 decreased
$5,000, or 1.7%, from $300,000 for the same period in 1996 to $295,000 in 1997.
This decrease was primarily due to a $14,000, or 73.7% decrease in federal
deposit insurance premiums. The decrease in deposit insurance premiums was
partially offset by a net increase of $9,000 in the other components of
non-interest expense.
LIQUIDITY AND CAPITAL RESOURCES
The Savings Bank is required to maintain minimum levels of liquid assets, as
defined by the Office of Thrift Supervision (OTS) regulations. This requirement,
which may be varied from time to time depending upon economic conditions and
deposit flows, is based upon a percentage of deposits and short-term borrowings.
The required minimum ratio is currently 5%. The Savings Bank's liquidity ratio
averaged 16.7% during March, 1997. The Savings Bank manages its liquidity ratio
to meet its funding needs, including: deposit outflows; disbursement of payments
collected from borrowers for taxes and insurance; and loan principal
disbursements. The Savings Bank also manages its liquidity ratio to meet its
asset and liability management objectives.
<PAGE>
BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 2. - (Continued)
LIQUIDITY AND CAPITAL RESOURCES (Continued)
In addition to funds provided from operations, the Savings Bank's primary
sources of funds are: savings deposits; principal repayments on loans and
mortgage-backed and related securities; and matured or called investment
securities. If necessary, the Savings Bank has the ability to borrow funds from
the Federal Home Loan Bank of Pittsburgh, although the need is not anticipated.
Scheduled loan repayments and maturing investment securities are a relatively
predictable source of funds. However, savings deposit flows and prepayments on
loans and mortgage-backed and related securities are significantly influenced by
changes in market interest rates, economic conditions, and competition. The
Savings Bank strives to manage the pricing of its deposits to maintain a
balanced stream of cash flows commensurate with its loan commitments and other
predictable funding needs.
The Savings Bank invests its excess funds in an interest bearing overnight
deposit account with the Federal Home Loan Bank of Pittsburgh. This provides
sufficient liquidity to meet immediate loan commitment and savings withdrawal
funding requirements. When applicable, cash in excess of immediate funding needs
is invested into longer-term investments and mortgage-backed and related
securities which typically earn a higher yield than overnight deposits. These
types of investments may qualify as liquid investments under OTS regulations,
depending upon their stated maturities.
The Savings Bank anticipates that it will have sufficient funds available to
meet its current loan commitments and normal savings withdrawals. At March 31,
1997 the Savings Bank had outstanding loan commitments of $6,000. In addition,
it had certificates of deposit scheduled to mature within one year of $16.0
million. Management believes that a substantial portion of such deposits will
remain with the Savings Bank.
As required by the Financial Institutions Reform, Recovery and Enforcement Act
of 1989 (FIRREA), the Office of Thrift Supervision (OTS) prescribed three
separate standards of capital adequacy. The regulations require financial
institutions to have minimum tangible capital equal to 1.50% of tangible assets;
minimum core capital equal to 3.00% of adjusted tangible assets; and minimum
risk-based capital equal to 8.00% of risk-weighted assets.
<PAGE>
BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 2. - (Continued)
LIQUIDITY AND CAPITAL RESOURCES (Continued)
The following table sets forth the Savings Bank's regulatory capital position at
March 31, 1997, as compared to the minimum regulatory requirements:
Amount Percent of
------ ----------
(in thousands) Adjusted Assets
-------------- ---------------
Tangible Capital:1
Actual $7,606 17.13%
Required 666 1.50%
------ ------
Excess $6,940 15.63%
------ ------
Core Capital:1
Actual $7,606 17.13%
Required 1,332 3.00%
------ ------
Excess $6,274 14.13%
------ ------
Risk-Based Capital:2
Actual $7,840 42.06%
Required 1,491 8.00%
------ ------
Excess $6,349 34.06%
------ ------
1 Based on tangible and core assets of $44,398
2 Based on risk-weighted assets of $18,640
PART II - OTHER INFORMATION
Item 5. - Other Information
Dividend Payments - On January 14, 1997, the Board of Directors of the
Corporation declared a $0.14 per share regular semi-annual cash dividend and an
$0.08 per share special cash dividend payable on February 18, 1997 to
stockholders of record as of January 31, 1997. The Corporation expects to
continue its policy of paying regular semi-annual cash dividends; however,
further declarations of dividends will depend on a number of factors, including
investment opportunities, capital requirements, regulatory limitations, results
of operations and financial condition, tax considerations, and general economic
conditions.
Item 6. - Exhibits and Reports on Form 8-K
(a) None
(b) No reports on Form 8-K were filed during the quarter for which
this report is filed.
<PAGE>
BECKLEY BANCORP, 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.
BECKLEY BANCORP, INC.
Date: April 30, 1997 By: /s/ Duane K. Sellards
------------------- ----------------------
DUANE K. SELLARDS
President and Chief
Executive Officer
Date: April 30, 1997 By: /s/ Brian K. Pate
------------------- ------------------
BRIAN K. PATE
Vice President and Chief
Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 388
<INT-BEARING-DEPOSITS> 1,522
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 21,250
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 20,728
<ALLOWANCE> 305
<TOTAL-ASSETS> 44,623
<DEPOSITS> 32,975
<SHORT-TERM> 0
<LIABILITIES-OTHER> 434
<LONG-TERM> 0
0
0
<COMMON> 60
<OTHER-SE> 11,154
<TOTAL-LIABILITIES-AND-EQUITY> 44,623
<INTEREST-LOAN> 419
<INTEREST-INVEST> 345
<INTEREST-OTHER> 25
<INTEREST-TOTAL> 789
<INTEREST-DEPOSIT> 346
<INTEREST-EXPENSE> 362
<INTEREST-INCOME-NET> 427
<LOAN-LOSSES> 2
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 295
<INCOME-PRETAX> 147
<INCOME-PRE-EXTRAORDINARY> 93
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 93
<EPS-PRIMARY> 0.16
<EPS-DILUTED> 0.16
<YIELD-ACTUAL> 3.84
<LOANS-NON> 15
<LOANS-PAST> 41
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 303
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 305
<ALLOWANCE-DOMESTIC> 305
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
