<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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, 2000
--------------
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission File Number: 000-25128
First Sterling Banks, Inc.
- --------------------------------------------------------------------------------
(Exact name of business issuer as specified in its charter)
Georgia 58-2104977
- --------------------------------------------------------------------------------
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
Post Office Box 2147
Marietta, Georgia 30061
- --------------------------------------------------------------------------------
(Address of principal executive officers)
770-422-2888
- --------------------------------------------------------------------------------
(Issuer's Telephone Number)
Westside Financial Corporation
P. O. Box 2147
Marietta, GA 30061
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year)
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
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of May 1, 2000. 4,882,424
---------
<PAGE>
FIRST STERLING BANKS, INC.
INDEX
<TABLE>
<CAPTION>
Page No.
<S> <C> <C>
Part I. Financial Information
Consolidated Balance Sheets
March 31,2000 and December 31, 1999 3
Consolidated Statements of Income
Three Months Ended March 31, 2000 and 1999 4
Consolidated Statements of Comprehensive Income
Three Months Ended March 31, 2000 and 1999 5
Consolidated Statements of Cash Flows -
Three Months Ended March 31, 2000 and 1999 6
Notes to Consolidated Financial Statements 7-9
Management's Discussion and Analysis of
Financial Condition and Results of Operations 10-12
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
</TABLE>
2
<PAGE>
PART I - FINANCIAL INFORMATION
FIRST STERLING BANKS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
----------------- ------------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 10,254,996 $ 13,477,155
Interest-bearing deposit in banks 773,484 1,224,671
Investment securities available for
sale, at estimated market value 52,614,575 50,363,515
Federal funds sold and securities purchased
under agreement to resell 30,865,000 20,200,000
Loans 259,146,130 249,582,051
Less allowance for loan losses 3,227,473 3,073,506
Loans, net 255,918,657 246,508,545
Premises and equipment, net 10,671,921 10,815,720
Other real estate owned 186,219 214,400
Other assets 5,524,716 5,446,735
----------------- ------------------
Total assets $ 366,809,568 $ 348,250,741
================= ==================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand $ 53,997,350 $ 45,464,673
Interest-bearing demand 78,797,702 79,225,406
Savings 17,901,245 17,487,249
Certificates of deposit 162,195,787 161,455,514
----------------- ------------------
Total deposits 312,892,084 303,632,842
Federal funds purchased and securities sold
under agreement to repurchase 16,558,836 8,872,722
Other borrowings 7,138,750 7,142,500
Other liabilities 2,391,000 1,739,478
----------------- ------------------
Total liabilities 338,980,670 321,387,542
----------------- ------------------
STOCKHOLDERS' EQUITY
Common stock, 10,000,000 shares authorized;
5,051,431 and 5,018,545 shares issued at amount paid in 18,483,342 18,483,342
Retained earnings 12,340,429 11,380,823
Less cost of 169,082 shares of treasury stock (1,033,875) (1,033,875)
Accumulated other comprehensive loss (1,960,998) (1,967,091)
----------------- -------------------
Total stockholders' equity 27,828,898 26,863,199
----------------- ------------------
Total liabilities and stockholders
equity $ 366,809,568 $ 348,250,741
================= ==================
</TABLE>
3
<PAGE>
FIRST STERLING BANKS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
2000 1999
---------------------------------------
<S> <C> <C>
INTEREST INCOME
Interest and fees on loans $ 6,153,368 $ 4,844,262
Interest on investment securities:
Taxable 712,260 667,346
Nontaxable 113,620 64,999
Interest on Federal funds sold 121,254 144,925
Interest on securities purchased under
agreement to resell 129,665 1,727
Interest on interest-bearing deposits 16,977 333
---------------- ----------------
Total interest income 7,247,144 5,723,592
INTEREST EXPENSE
Interest on deposits 2,975,301 2,327,828
Interest on Federal Home Loan Bank advances 89,718 32,894
Interest on federal funds purchased and securities
sold under agreement to repurchase 84,324 9,149
---------------- ----------------
Total interest expense 3,149,343 2,369,871
---------------- ----------------
NET INTEREST INCOME 4,097,801 3,353,721
PROVISION FOR LOAN LOSSES 150,000 210,000
---------------- ----------------
Net interest income after
provision for loan losses 3,947,801 3,143,721
---------------- ----------------
OTHER OPERATING INCOME
Service charges on deposit accounts 223,944 228,600
Gain on sale of loans 15,946 7,114
Mortgage origination fees 34,192 48,444
Loss on sale of investment securities -- (3,332)
Other income 73,633 59,215
---------------- ----------------
Total other income 347,715 340,041
---------------- ----------------
OTHER OPERATING EXPENSES
Salaries and other employee benefits 1,355,638 1,139,478
Occupancy and equipment expenses 357,799 243,002
Stationery and supplies 46,253 57,882
Audit and accounting 38,250 38,492
Directors fees 79,750 77,525
Merger expenses -- 157,181
Other operating expense 597,874 447,433
---------------- ----------------
Total operating expenses 2,475,564 2,160,993
---------------- ----------------
Income before income taxes 1,819,952 1,322,769
APPLICABLE INCOME TAXES 665,052 486,211
---------------- ----------------
NET INCOME $ 1,154,900 $ 836,558
---------------- ----------------
Basic earnings per common share $ 0.24 $ 0.17
================ ================
Diluted earnings per common share $ 0.22 $ 0.16
================ ================
Cash dividends per share of common stock $ .04 $ .04
================ ================
</TABLE>
4
<PAGE>
FIRST STERLING BANKS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
2000 1999
----------------------------------------
<S> <C> <C>
Net Income $ 1,154,900 $ 836,558
Other comprehensive income (loss), net of tax
Unrealized gains (losses) on securities
available for sale 6,093 (318,477)
---------------- ----------------
Comprehensive income $ 1,160,993 $ 518,081
================ ================
</TABLE>
5
<PAGE>
FIRST STERLING BANKS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
2000 1999
------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,154,900 $ 836,558
--------------- ----------------
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 178,699 133,803
Provision for loan losses 150,000 210,000
Gain on sale of loans 15,946 7,114
Loss on sale of investment securities -- 3,332
Increase in interest receivable (359,330) (121,337)
Decrease in interest payable 327,347 161,745
Other prepaids, deferrals and accruals,net 614,593 (98,368)
--------------- ----------------
Total adjustments 927,255 296,289
--------------- ----------------
Net cash provided by operating activities 2,082,155 1,132,847
--------------- ----------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities of securities available
for sale 895,454 9,902,813
Proceeds from sale of loans 907,473 40,781
Purchase of investment securities available
for sale (2,698,813) (6,795,961)
Net (increase) decrease in federal funds sold (10,665,000) 10,158,000
Net increase in loans (10,483,021) (23,908,324)
Acquisitions of other real estate 28,181 144,426
Capital expenditures (34,900) (409,906)
--------------- ----------------
Net cash used in investing activities (22,050,626) (10,868,171)
--------------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits 9,259,242 10,014,739
Net increase in securities sold under
under agreement to repurchase 7,686,114 445,598
Dividend payments (195,294) (204,839)
Decrease in FHLB Advances (3,750) --
--------------- ----------------
Net cash provided by financing activities 16,746,312 10,255,498
--------------- ----------------
Net increase (decrease) in cash and due from banks
and due from banks (3,222,159) 520,174
Cash and due from banks at beginning of year 13,477,155 10,131,534
--------------- ----------------
Cash and due from banks at end of period $ 10,254,996 $ 10,651,708
=============== ================
</TABLE>
6
<PAGE>
FIRST STERLING BANKS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2000
Note 1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements
for First Sterling Banks, Inc. have been prepared in
accordance with generally accepted accounting principles for
interim financial information. Accordingly, they do not
include all of the information and footnotes required by
generally accepted accounting principles for complete
financial statement presentation. In the opinion of
management, all adjustments (consisting solely of normal
recurring adjustments) considered necessary for a fair
presentation have been included.
The results of operations for the three month period ended
March 31, 2000 are not necessarily indicative of the results
to be expected for the year ending December 31, 2000.
Note 2. BUSINESS COMBINATION
On April 23, 1999, the Company effected a business combination
and merger with Gerogia Bancshares, Inc. by exchanging
1,461,632 shares of its common stock for all of the common
stock of Georgia Bancshares, Inc. The combination was
accounted for as a pooling of interests and, accordingly, all
prior financial statements have been restated to include
Georgia Bancshares, Inc. and Community Bank of Georgia.
Note 3. CURRENT ACCOUNTING DEVELOPMENTS
In June 1998, the Financial Accounting Standards Board issued
SFAS No. 133, "Accounting for Derivative Instruments and
Hedging Activities". This statement is required to be adopted
for fiscal years beginning after June 15, 2000. However, the
statement permits early adoption as of the beginning of any
fiscal quarter after its issuance. The Company expects to
adopt this statement effective January 1, 2001. SFAS No. 133
requires the Company to recognize all derivatives as either
assets or liabilities in the balance sheet at fair value. For
derivatives that are not designated as hedges, the gain or
loss must be recognized in earnings in the period of change.
For derivatives that are designated as hedges, changes in the
fair value of the hedged assets, liabilities, or firm
commitments must be recognized in earnings or recognized in
other comprehensive income until the hedged item is recognized
in earnings, depending on the nature of the hedge. The
ineffective portion of a derivative's change in fair value
must be recognized in earnings immediately. Management has not
yet determined what effect the adoption of SFAS No. 133 will
have on the Company's earnings or financial position.
There are no other recent accounting pronouncements that have
had, or are expected to have, a material effect on the
Company's financial statements.
7
<PAGE>
Note 4. EARNINGS PER COMMON SHARE
The following is a reconciliation of net income (the
numerator) and weighted-average shares outstanding (the
denominator) used in determining basic and diluted earnings
per common share (EPS):
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31, 2000
- -------------------------------------------------------------------------------------------------------------
NET WEIGHTED
INCOME AVERAGE SHARES PER SHARE
(NUMERATOR) (DENOMINATOR) AMOUNT
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Basic EPS $ 1,154,900 4,882,349 $ 0.24
- -------------------------------------------------------------------------------------------------------------
Effect of Dilutive Securities
Stock Options 289,434
- -------------------------------------------------------------------------------------------------------------
Diluted EPS $ 1,154,900 5,171,783 $ 0.22
- -------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31, 1999
- -------------------------------------------------------------------------------------------------------------
NET WEIGHTED
INCOME AVERAGE SHARES PER SHARE
(NUMERATOR) (DENOMINATOR) AMOUNT
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Basic EPS $ 836,558 4,849,463 $ 0.17
- -------------------------------------------------------------------------------------------------------------
Effect of Dilutive Securities
Stock Options 329,020
- -------------------------------------------------------------------------------------------------------------
Diluted EPS $ 836,558 5,178,483 $ 0.16
- -------------------------------------------------------------------------------------------------------------
</TABLE>
Note 5. MERGER WITH MAIN STREET BANKS
On December 1,1999, following several discussions, the board
of directors of First Sterling and Main Street Banks announced
the signing of a definitive agreement to merge the two banking
companies. Upon consummation of the merger, which is expected
to occur by June 30, 2000, the combined entity is expected to
have over $900 million in total assets. Under the proposed
terms of the transaction, First Sterling will issue 1.01
shares of its stock for every one share of Main Street.
Consummation is subject to certain conditions, including
regulatory and shareholder approval.
Note 6. SECURITIES AVAILABLE-FOR SALE
Securities available-for-sale are securities which management
believes may be sold prior to maturity for liquidity or other
reasons and are reported at fair value, with unrealized gains
and losses, net of related income taxes, reported as a
separate component of shareholders' equity.
The amortized cost and fair value of securities are summarized as
follows:
<TABLE>
<CAPTION>
GROSS GROSS
<S> <C> <C> <C> <C>
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
AMORTIZED UNREALIZED UNREALIZED
SECURITIES AVAILABLE FOR SALE COST GAINS LOSSES VALUE
- ----------------------------- --------------- ---------- -------------- --------------
<S> <C> <C> <C> <C>
March 31, 2000:
U. S. Government and agency
securities $ 31,127,905 $ 327 $ (1,527,177) $ 29,601,055
State and municipal securities 9,689,839 21,983 (558,131) 9,153,691
Mortgage-backed securities 13,699,611 191 (822,973) 12,876,829
Equity securities 983,000 -- -- 983,000
--------------- ---------- -------------- --------------
$ 55,500,355 $ 22,501 $ (2,908,281) $ 52,614,575
=============== ========== ============== ===============
December 31, 1999:
U. S. Government and agency
securities $ 22,497,224 $ -- $ (1,255,605) $ 21,241,619
State and municipal securities 9,733,328 22,228 (664,043) 9,091,513
Mortgage-backed securities 20,041,279 1,385 (995,281) 19,047,383
Equity securities 983,000 -- -- 983,000
------------ ---------- -------------- ---------------
$ 53,254,831 $ 23,613 $ (2,914,929) $ 50,363,515
=============== ========== ============== ===============
</TABLE>
Note 7. LOANS
Loans are stated at unpaid principal balances, net of unearned
income and deferred loan fees. Interest is accrued only if
deemed collectible.
The following table represents the composition of the Banks'
loan portfolio according to the purpose of the loan and/or
repayment terms:
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
---------------------------------------------
<S> <C> <C>
Commercial, financial and agricultural $ 53,764,217 $ 51,059,000
Real estate - construction and land
development 56,938,124 53,687,000
Real estate - mortgage 137,477,931 133,320,000
Installment and other consumer 11,476,223 12,030,888
------------------- ------------------
259,656,495 250,096,888
------------------- ------------------
Net deferred loan fees (510,365) (514,837)
259,146,130 249,582,051
------------------- ------------------
Less reserve for possible loan losses (3,227,473) (3,073,506)
-------------------- -------------------
Net loans $ 255,918,657 $ 246,508,545
=================== ==================
</TABLE>
9
<PAGE>
FIRST STERLING BANKS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain
significant factors which have affected the Company's financial position and
operating results of the Company and its bank subsidiaries, The Westside Bank &
Trust Company, The Eastside Bank & Trust Company and Community Bank of Georgia
during the periods included in the accompanying consolidated financial
statements.
FORWARD-LOOKING STATEMENTS
This review contains certain forward-looking statements including
statements relating to present or future trends or factors generally affecting
the banking industry and specifically affecting First Sterling's operations,
markets and products. Without limiting the foregoing, the words "believes"
"anticipates", "intends", "expects" or similar expressions are intended to
identify forward-looking statements. These forward-looking statements involve
certain risks and uncertainties. Actual results could differ materially from
those projected for many reasons including, without limitation, changing events
and trends that have influenced First Sterling's assumptions. These trends and
events include (i) changes in the interest rate environment which may reduce
margins, (ii)non-achievement of expected growth (iii) less favorable than
anticipated changes in national and local business environment and securities
markets (iv) adverse changes in the regulatory requirements affecting First
Sterling (v) greater competitive pressures among financial institutions in First
Sterling's market and (vi) greater than expected loan losses. Additional
information and other factors that could affect future financial results are
included in First Sterling's filings with the Securities and Exchange
Commission, including the Annual Report on Form 10-KSB for 1999.
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The Company's total assets have increased $18,558,827 or 5.33% since
December 1999. Total loans have increased $9,564,079 or 3.83% and total deposits
have increased $9,259,242 or 3.05% since December 1999.
Return on average equity for the three months ended March 31, 2000 was
17.05% on average equity of $27,237,191. This compares to 13.12% on average
equity of $25,849,755 for the same period in 1999.
Return on average assets for the three months ended March 31, 1999 was
1.32% on average assets of $351,259,222, compared to 1.19% on average assets of
$285,840,968 for the same period in 1999.
LIQUIDITY AND MARKET RISK SENSITIVITY
As of March 31, 2000, the liquidity ratios of the banks, as determined
under guidelines established by regulatory authorities, were satisfactory. The
Banks primary sources of funds are increases in deposits, loan repayments, sales
and maturities of investment securities and net income. In addition, the
subsidiary banks are members of the Federal Home Loan Bank, providing an
alternative source of funding and the banks maintain relationships with
correspondent banks which could provide funds on short notice, if needed.
Market risk is defined as the risk of loss arising from adverse changes
in market interest rates and prices. In order to maintain acceptable net
interest income levels, interest rates, liquidity and maturities of the
Company's assets and liabilities need to be managed. In a decreasing rate
environment earnings are typically negatively impacted as the Company's rate
sensitive assets generally reprice faster than its rate sensitive liabilities
thus an increase in interest rates will typically have a positive impact on
earnings. There have been no significant changes in the Company's market risk
exposure since December 31, 1999.
CAPITAL
At March 31, 2000, the capital ratios of the Company and the Banks were
adequate based on
10
<PAGE>
regulatory minimum capital requirements. The minimum capital requirements for
banks and bank holding companies require a leverage capital to total assets
ratio of at least 4%, core capital to risk-weighted assets ratio of at least 4%
and total capital to risk-weighted assets of 8%. The following table reflects
the Banks compliance with regulatory capital requirements at March 31, 2000
<TABLE>
<CAPTION>
WESTSIDE BANK EASTSIDE BANK COMMUNITY BANK
------------- ------------- --------------
<S> <C> <C> <C>
Leverage capital ratio: 8.57% 7.84% 8.93%
Risk based capital ratios:
Core capital 10.24% 8.43% 9.89%
Total capital 11.20% 8.81% 9.94%
</TABLE>
ALLOWANCE FOR LOAN LOSS
The allowance for loan losses totaled $3,227,473 at March 31, 2000, an
increase of $154,417 from December 31, 1999. A provision for loan losses is
charged to operations based upon the growth of the loan portfolio and
management's desire to provide adequately for inherent risk in the loan
portfolio. Management intends to continue maintaining an adequate allowance for
loan losses in relation to loans outstanding, based on management's evaluation
of the loan portfolio under prevailing economic conditions, underlying
collateral value securing loans, and such other factors as management deems
appropriate.
Activity in the allowance for loan losses for the three month period
ended March 31, 2000 and March 31, 1999 follows:
<TABLE>
<CAPTION>
MARCH 31, 2000 MARCH 31, 1999
-------------- --------------
<S> <C> <C>
Balance, January 1 $3,073,056 $ 2,367,316
Provision charged to expense 150,000 210,000
Net (charge-offs) recoveries 4,417 (19,816)
-------------- --------------
Balance March 31 $ 3,227,473 $ 2,557,500
-------------- --------------
</TABLE>
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
Net income for the quarter ended March 31, 2000 was $1,549,900 a 38.05%
increase compared to net income of $836,558 for the same period in 1999. Net
income for the period ending March 31, 1999 was was negatively impacted by
merger expenses of $157,181. Excluding these expenses, net income for the first
quarter of 1999 would have been $993,739. Diluted earnings per share for the
quarter ending March 31, 2000 was $ .22 compared to $ .16 for the same period in
1999.
The increase in net income is primarily attributable to an increase in
net interest income of $744,080 or 22.19% over 1999. Average earning assets
increased $64,309,548 or 24.18% resulting in an increase in interest income of
$1,523,552 or 26.61%. The banks experienced very strong loan growth in 1999, 80%
of the increase in earning assets was in the loan portfolio. Average interest
bearing liabilities increased $58,308,381 or 26.78%, which resulted in an
increase of $779,472 or 32.89% in interest expense over the same period in 1999.
The net interest margin for the three months ended March 31, 2000 was 4.99% on
average earning assets of $330,272,931, compared to 5.11% on average earning
assets of $265,963,383 for the same period in 1999. The fact that average
interest bearing liabilities increased more than interest bearing assets and the
highly competitive nature of the company's market contributed to the slight
reduction in the net interest margin. The banks are located in thriving markets
and continue to enjoy excellent growth. Average total deposits increased
$53,819,315 or 21.13%, over the period ending March 31, 1999; average interest
bearing deposits increased 22.5%, non interest bearing deposits increased 14.2%.
Although two new facilities were opened in 1999 and one in January 2000,
the increase in operating expenses was only $314,571 or 14.5% over the same
period in 1999.
11
<PAGE>
The provision for loan losses amounted to $150,000 for the three months
ended March 31, 2000 as compared to $210,000 for the same period in 1999. The
provision for the first quarter of 1999 was increased in order to bring the
reserve to a level management felt was adequate, given the loan growth the
company had experienced. Loan growth during the first quarter of 2000 was 3.83%
compared to 12.48% during the first quarter of 1999. Management closely monitors
the loan portfolio and the underwriting of loans and considers the allowance for
loan losses to be adequate. The banks continue to experience only minimal
losses. Net chargeoffs for the period ended March 31, 2000 were only $4,417. The
allowance for loan losses as a percentage of total loans outstanding at March
31, 2000 and December 31, 1999 amounted to 1.24% and 1.23%, respectively.
Non performing assets which includes other real estate owned, non
accrual loans and loans 90 days or more past due and still accruing, totaled
$505,840, or .195% of total loans at March 31, 2000, compared to $569,000 or
.265% of total loans at March 31, 1999.
Short term borrowings at March 31, 2000 were $16,558.836 compared to
$8,872,722 at December 31, 1999. Short term borrowings consist of federal funds
purchased and securities sold under agreement to repurchase from customers.
Other borrowings at March 31, 2000 were $7,138,750 compared to $7,142,500 at
December 31, 1999. Other borrowings consist of the following:
<TABLE>
<S> <C>
Advance from the Federal Home Loan Bank, due in
monthly instalments of $1,250 plus interest at
6.70%, matures June 16, 2009, collateralized
by mortgage loans. $ 138,750
Advance from the Federal Home Loan Bank with
interest payable quarterly at 5.36% until
September 29, 2000 when the rate may be
converted to the three month LIBOR, due
September 29, 2004, collateralized by
mortgage loans and securities. 4,000,000
Advance from the Federal Home Loan Bank with
interest payable quarterly at 4.41%, due
October 16, 2003, collateralized by securities. 3,000,000
-----------
$ 7,138,750
===========
</TABLE>
PART II - OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) Report on Form 8-K
There were no reports on Form 8-K filed during the quarter
ended March 31, 2000.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
12
<PAGE>
<TABLE>
<S> <C>
FIRST STERLING BANKS, INC.
Date: MAY 10, 2000 By: /s/ EDWARD C. MILLIGAN
------------------------ ---------------------------------------
Edward C. Milligan, President
Date: MAY 10, 2000 By: /s/ BARBARA J. BOND
------------------------ ---------------------------------------
Barbara J. Bond, Secretary & CFO
</TABLE>
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FINANCIAL
STATEMENTS FOR PERIOD ENDING MARCH 31, 2000
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 10,254,996
<INT-BEARING-DEPOSITS> 773,484
<FED-FUNDS-SOLD> 30,865,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 52,614,575
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 259,146,130
<ALLOWANCE> 3,227,473
<TOTAL-ASSETS> 366,809,568
<DEPOSITS> 312,892,084
<SHORT-TERM> 16,558,836
<LIABILITIES-OTHER> 2,391,000
<LONG-TERM> 7,138,750
0
0
<COMMON> 18,483,342
<OTHER-SE> 9,345,556
<TOTAL-LIABILITIES-AND-EQUITY> 366,809,568
<INTEREST-LOAN> 6,153,368
<INTEREST-INVEST> 825,880
<INTEREST-OTHER> 267,896
<INTEREST-TOTAL> 7,247,144
<INTEREST-DEPOSIT> 2,975,301
<INTEREST-EXPENSE> 3,149,343
<INTEREST-INCOME-NET> 4,097,801
<LOAN-LOSSES> 150,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,475,564
<INCOME-PRETAX> 1,819,952
<INCOME-PRE-EXTRAORDINARY> 1,154,900
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,154,900
<EPS-BASIC> .24
<EPS-DILUTED> .22
<YIELD-ACTUAL> 4.99
<LOANS-NON> 316,971
<LOANS-PAST> 2,649
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<CHARGE-OFFS> 5,145
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<ALLOWANCE-CLOSE> 3,227,473
<ALLOWANCE-DOMESTIC> 3,227,473
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
