<PAGE> 1
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:...................................June 30, 1999
OR
[ ] 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:.................................................0-25980
First Citizens Banc Corp
------------------------
(Exact name of registrant as specified in its charter)
Ohio 34-1558688
---- ----------
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification Number)
100 East Water Street, Sandusky, Ohio 44870
----------------------------------------------------------
(Address of principle executive offices) (Zip Code)
Registrant's telephone number, including area code: (419) 625-4121
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.
X Yes No
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, no par value
Outstanding at August 12, 1999
4,262,795 common shares
<PAGE> 2
FIRST CITIZENS BANC CORP
Index
<TABLE>
<CAPTION>
PART I. Financial Information
<S> <C> <C>
ITEM 1. Financial Statements:
Consolidated Balance Sheets (unaudited)
June 30, 1999 and December 31, 1998...............................................................3
Consolidated Statements of Income (unaudited)
Three and six months ended June 30, 1999 and 1998.................................................4
Consolidated Statement of Shareholders' Equity (unaudited)
For the years ended December 31, 1997 and 1998 and
six months ended June 30, 1999....................................................................5
Consolidated Statement of Cash Flows (unaudited)
Six months ended June 30, 1999 and 1998...........................................................6
Notes to Consolidated Financial Statements (unaudited).............................................7-14
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations........................................................................15-20
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk........................................21-22
PART II. Other Information
ITEM 1. Legal Proceedings....................................................................................23
ITEM 2. Changes in Securities and Use of Proceeds............................................................23
ITEM 3. Defaults Upon Senior Securities......................................................................23
ITEM 4. Submission of Matters to a Vote of Security Holders..................................................23
ITEM 5. Other Information....................................................................................24
ITEM 6. Exhibits and Reports on Form 8-K.....................................................................24
SIGNATURES....................................................................................................25
</TABLE>
<PAGE> 3
FIRST CITIZENS BANC CORP
Consolidated Balance Sheets
<TABLE>
<CAPTION>
(Unaudited)
June 30, December 31,
Assets 1999 1998
------------- ---------------
<S> <C> <C>
Cash and due from banks $ 15,864,520 $ 16,443,613
Federal funds sold 10,585,000 19,950,000
Interest-bearing deposits 149,282 248,282
Securities
Available-for-sale 162,211,441 171,952,700
Held-to-maturity (Estimated Fair Value of $660,578 at
June 30, 1999, and $832,632 at December 31, 1998) 654,874 810,122
------------- -------------
Total securities 162,866,315 172,762,822
Loans held for sale 2,249,275 2,273,509
Loans 278,869,722 283,349,201
Less: Allowance for possible loan losses (4,458,393) (4,567,126)
------------- -------------
Net loans 274,411,329 278,782,075
Office premises and equipment, net 7,400,561 7,363,513
Intangible assets 2,365,940 2,533,963
Accrued Interest and other assets 6,625,286 8,531,086
Total assets $ 482,517,508 $ 508,888,863
============= =============
Liabilities
Deposits
Noninterest-bearing deposits $ 38,237,045 $ 38,574,055
Interest-bearing deposits 369,345,487 379,325,190
------------- -------------
Total deposits 407,582,532 417,899,245
Federal Home Loan Bank borrowings 2,228,082 13,235,165
Securities sold under agreements to repurchase 12,214,632 16,369,681
U. S. Treasury interest-bearing demand deposit notes payable 2,840,910 971,558
Accrued interest, taxes and other expenses 4,646,004 6,672,283
------------- -------------
Total liabilities 429,512,160 455,147,932
Shareholders' Equity
Common stock, no par value; 10,000,000 shares authorized,
4,263,401 shares issued 23,257,520 23,257,520
Retained earnings 28,495,434 26,811,264
Treasury stock, 606 shares at cost at June 30, 1999 (16,851) 0
Unrealized gain on securities available for sale 1,269,245 3,672,147
------------- -------------
Total shareholders' equity 53,005,348 53,740,931
------------- -------------
Total liabilities and shareholders' equity $ 482,517,508 $ 508,888,863
============= =============
</TABLE>
See notes to interim consolidated financial statements
Page 3
<PAGE> 4
FIRST CITIZENS BANC CORP
Consolidated Statements of Income (Unaudited)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
----------------------------- -------------------------
1999 1998 1999 1998
<S> <C> <C> <C> <C>
INTEREST INCOME:
Loans, including fees $ 5,699,663 $ 6,060,491 $11,500,563 $12,306,292
Taxable securities 1,673,028 1,645,258 3,394,133 3,180,523
Nontaxable securities 589,935 515,981 1,170,960 1,018,068
Federal funds sold 153,988 250,405 329,807 452,850
Other 11,208 13,703 32,243 29,349
----------- ----------- ----------- -----------
Total interest income 8,127,822 8,485,838 16,427,706 16,987,082
INTEREST EXPENSE:
Deposits 3,575,291 3,998,866 7,224,511 7,950,836
FHLB Borrowings 32,540 200,291 195,604 407,532
Other 153,675 130,669 311,007 251,533
----------- ----------- ----------- -----------
Total other expense 3,761,506 4,329,826 7,731,122 8,609,901
----------- ----------- ----------- -----------
NET INTEREST INCOME 4,366,316 4,156,012 8,696,584 8,377,181
PROVISION FOR LOAN LOSSES 88,000 108,000 156,000 216,000
----------- ----------- ----------- -----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 4,278,316 4,048,012 8,540,584 8,161,181
NONINTEREST INCOME:
Computer center data processing fees 224,691 356,603 734,387 818,695
Service charges 242,962 258,166 483,603 467,827
Net gain on sale of securities 3,557 0 730,861 19,580
Net gain on sale of loans 33,072 45,939 127,590 79,904
Other 373,685 330,722 706,293 575,273
----------- ----------- ----------- -----------
Total noninterest income 877,967 991,430 2,782,734 1,961,279
NONINTEREST EXPENSE:
Salaries, wages and benefits 1,635,717 1,721,192 3,415,913 3,424,862
Net occupancy expense 204,039 159,676 400,977 327,420
Equipment expense 206,097 182,376 392,889 354,130
FDIC Premiums 12,171 5,560 24,416 24,531
State franchise tax 146,485 165,388 297,241 339,370
Professional services 375,354 526,322 643,383 702,354
Other operating expenses 963,398 883,502 1,951,025 1,790,790
----------- ----------- ----------- -----------
Total noninterest expense 3,543,261 3,644,016 7,125,844 6,963,457
----------- ----------- ----------- -----------
Income before taxes 1,613,022 1,395,426 4,197,474 3,159,003
Income tax expense 420,144 386,285 1,149,015 889,443
----------- ----------- ----------- -----------
Net Income $ 1,192,878 $ 1,009,141 3,048,459 2,269,560
Earnings per share $ 0.28 $ 0.24 $ 0.72 0.53
Dividends declared $ 0.16 $ 0.15 $ 0.32 0.30
Wtd. avg. shares during the period 4,262,834 4,263,401 4,263,083 4,263,401
</TABLE>
See notes to interim consolidated financial statements.
Page 4
<PAGE> 5
FIRST CITIZENS BANC CORP
Condensed Consolidated Statement of Shareholders' Equity (Unaudited)
Form 10-Q
<TABLE>
<CAPTION>
Unrealized
Gain on
Securities Total
Common Stock Retained Treasury Available Shareholders'
Shares Amount Earnings Stock for Sale Equity
<S> <C> <C> <C> <C> <C> <C>
Balance, January 1,1997 4,263,401 $ 23,257,520 $ 24,619,419 0 $ 811,399 $ 48,688,338
Comprehensive Income:
Net Income 4,440,544 4,440,544
Change in unrealized gain on
securities available for sale 1,615,663 1,615,663
--------------
Total 6,056,207
Cash dividends ($1.07 per share) (3,265,110) (3,265,110)
Cash dividends declared by Farmers,
prior to merger (280,000) (280,000)
------------ --------------- -------------- -------------- -------------- --------------
Balance, December 31, 1997 4,263,401 23,257,520 25,514,853 0 2,427,062 51,199,435
Comprehensive Income:
Net Income 5,760,667 5,760,667
Change in unrealized gain on
securities available for sale 1,245,085 1,245,085
--------------
Total 7,005,752
Cash paid for fractional shares (3,451) (3,451)
Cash dividends ($1.07 per share) (4,368,805) (4,368,805)
Cash dividends declared by Farmers,
prior to merger (92,000) (92,000)
------------ --------------- -------------- -------------- -------------- --------------
Balance, December 31, 1998 4,263,401 23,257,520 26,811,264 0 3,672,147 53,740,931
Comprehensive Income:
Net Income 3,048,459 3,048,459
Change in unrealized gain on
securities available for sale (2,402,902) (2,402,902)
--------------
Total 645,557
Purchase of treasury stock, at cost (606) (16,851) (16,851)
Cash dividends ($.32 per share) (1,364,289) (1,364,289)
------------ --------------- -------------- -------------- -------------- --------------
Balance, June 30, 1999 4,262,795 $ 23,257,520 $ 28,495,434 $ (16,851) $ 1,269,245 $ 53,005,348
============ =============== ============== ============== ============== ==============
</TABLE>
See notes to interim consolidated financial statements
Page 5
<PAGE> 6
FIRST CITIZENS BANC CORP
Consolidated Statement of Cash Flows (Unaudited)
<TABLE>
<CAPTION>
Six months ended June 30,
-------------------------------------
1999 1998
<S> <C> <C>
Cash flows from operating activities
Net Income $ 3,048,459 $ 2,269,560
Adjustments to reconcile net income to net cash from operating activities
Depreciation and amortization of office premises and equipment 473,579 422,009
Amortization of intangible assets 168,023 185,524
Provision for loan losses 156,000 216,000
Loans originated for sale (7,242,501) (4,482,255)
Proceeds from sale of loans 7,319,380 3,342,364
Gain on sale of loans (127,590) (79,904)
Security gains (730,861)
Change in deferred loan fees (67,863) (90,368)
Net amortization of security premiums and discounts 318,075 88,222
Change in accrued interest and other assets 1,980,745 (123,931)
Change in accrued interest, taxes and other expenses (788,421) (1,709,803)
----------------- -----------------
Net cash from operating activities 4,507,025 37,418
Cash flows from investing activities
Maturities of interest bearing deposits 99,000 99,000
Maturities and calls of securities, held-to-maturity 154,828 3,474,857
Maturities and calls of securities, available-for-sale 17,220,146 21,690,783
Purchases of securities, available-for-sale (12,925,835) (34,963,081)
Proceeds from sale of securities, available-for-sale 2,219,394
Loans made to customers, net of principal collected 4,282,609 7,430,920
Change in federal funds sold 9,365,000 775,000
Proceeds from sale of property and equipment 1,627 25,613
Purchases of office premises and equipment (512,254) (428,343)
----------------- -----------------
Net cash from investing activities 19,904,515 (1,895,251)
Cash flows from financing activities
Repayment of FHLB borrowings (11,007,083) (617,535)
Net change in deposits (10,316,713) 231,245
Change in securities sold under agreements to repurchase (4,155,049) 2,730,697
Change in U. S. Treasury interest-bearing demand notes payable 1,869,352 (372,014)
Purchases of treasury stock (16,851)
Cash dividends paid (1,364,289) (1,010,900)
----------------- -----------------
Net cash from financing activities (24,990,633) 961,493
Net change in cash and due from banks (579,093) (896,340)
Cash and due from banks at beginning of period 16,443,613 17,695,634
Cash and due from banks at end of period $ 15,864,520 $ 16,799,294
================= =================
Supplemental disclosures:
Cash paid during the period for:
Interest $ 8,272,156 $ 9,157,300
Income taxes $ 960,000 $ 580,000
</TABLE>
See notes to interim consolidated financial statements
Page 6
<PAGE> 7
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
1) Consolidated Financial Statements
The consolidated financial statements include the accounts of First
Citizens Banc Corp (Corporation) and it wholly-owned subsidiaries, The
Citizens Banking Company (Citizens), The Castalia Banking Company
(Castalia), The Farmers State Bank of New Washington (Farmers), SCC
Resources, Inc. (SCC), and R. A. Reynolds Appraisal Service, Inc.
(Reynolds). All significant intercompany balances and transactions have
been eliminated in consolidation.
The following reports have been prepared by the Corporation without
audit: The consolidated balance sheets as of June 30, 1999 and December
31, 1998; the consolidated statements of income for the three and six
month periods ended June 30, 1999 and 1998; the consolidated statement
of shareholders' equity for the six months ended June 30, 1999 and the
years ended December 31, 1998 and 1997; and the consolidated statements
of cash flows for the six month periods ended June 30, 1999 and 1998.
In the opinion of management, all adjustments (which include only
normal recurring adjustments) necessary to present fairly the
Corporation's financial position as of June 30, 1999 and its results of
operations and changes in cash flows for the periods ended June 30,
1999 and 1998 have been made. The accompanying consolidated financial
statements have been prepared in accordance with instructions of Form
10-Q, and therefore certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been omitted. The results
of operations for the period ended June 30, 1999 are not necessarily
indicative of the operating results for the full year. Reference is
made to the accounting policies of the Corporation described in the
notes to financial statements contained in the Corporation's 1998
annual report. The Corporation has consistently followed these policies
in preparing this Form 10-Q.
Income tax expense is based on the effective tax rate expected to be
applicable for the entire year. The Corporation follows the liability
method of accounting for income taxes. The liability method provides
that deferred tax assets and liabilities are recorded at enacted tax
rates based on the difference between the tax basis of assets and
liabilities and their carrying amounts for financial reporting
purposes, referred to as "temporary differences." A valuation
allowance, if needed, reduces deferred tax assets to the amount
expected to be realized.
Certain items in the 1998 financial statements have been reclassified
to correspond with the 1999 presentation.
The Corporation elected to present comprehensive income and the
accumulated balance in the Consolidated Statement of Shareholders'
Equity for interim reporting purposes. The table below presents the
reclassification adjustments related to comprehensive income.
Reclassification adjustments are needed when an item is included in the
net income in one period and comprehensive income in another accounting
period.
Page 7
<PAGE> 8
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
Other comprehensive income (loss) components and related taxes for the three and
six months ended June 30, 1999 and 1998.
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Unrealized holding gains and
(losses) on available for
sale securities $(1,981,596) $ 135,555 $(2,909,902) $ 725,941
Reclassification adjustment for
(gains) and losses later
recognized in income (3,557) 0 (730,861) (19,580)
----------- ----------- ----------- -----------
Net unrealized gains and (losses) (1,985,153) 135,555 (3,640,763) 706,361
Tax effect 674,951 69,228 1,237,861 (124,846)
----------- ----------- ----------- -----------
Other comprehensive income (loss) $(1,310,202) $ 204,783 $(2,402,902) $ 581,515
=========== =========== =========== ===========
</TABLE>
In June 1998, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards (SFAS) No. 133, "Accounting for Derivative
Instruments and Hedging Activities." SFAS No. 133 requires companies to record
derivatives on the balance sheet as assets or liabilities, measured at fair
value. Gains or losses resulting from changes in the values of those derivatives
would be accounted for depending on the use of the derivative and whether it
qualifies for hedge accounting. The key criterion for hedge accounting is that
the hedging relationship must be highly effective in achieving offsetting
changes in fair value or cash flows. SFAS No. 133 does not allow hedging of a
security which is classified as held to maturity. Accordingly, upon adoption of
SFAS No. 133, companies may reclassify any security from held to maturity to
available for sale if they wish to be able to hedge the security in the future.
SFAS No. 133, as amended by SFAS No. 137, is effective for fiscal years
beginning after June 15, 2000 with early adoption encouraged for any fiscal
quarter beginning July 1, 1998 or later, with no retroactive application.
Management does not expect the adoption of SFAS No. 133 to have a significant
impact on the Corporation's financial statements.
SFAS No. 134, "Accounting for Mortgage-Backed Securities Retained After the
Securitization of Mortgage Loans Held for Sale by a Mortgage Banking Enterprise"
changes the way companies involved in mortgage banking account for certain
securities and other interests they retain after securitizing mortgage loans
that were held for sale. SFAS No. 134 allows any retained mortgage-backed
securities after a securitization of mortgage loans held for sale to be
classified based on holding intent in accordance with SFAS No. 115, except in
cases where the retained mortgage-backed security is committed to be sold before
or during the securitization process in which case it must be classified as
trading. Previously, all retained mortgage-backed securities were required to be
classified as trading. SFAS No. 134 was effective as of January 1, 1999, and did
not have a significant impact on the Corporation's financial statements.
Page 8
<PAGE> 9
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
(2) Securities
Securities at June 30, 1999 and December 31, 1998 were as follows:
<TABLE>
<CAPTION>
June 30, 1999
AVAILABLE FOR SALE Gross Gross
Amortized Unrealized Unrealized
Cost Gains Losses Fair Value
---------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
U.S. Treasury securities and obligations
of U.S. Government corporations
and agencies $ 66,193,783 $ 166,992 $ (480,116) $ 65,880,659
Obligations of state and political
subdivisions 54,497,640 637,158 (426,213) 54,708,585
Corporate bonds 17,031,761 18,501 (116,565) 16,933,697
Equity securities 1,786,281 2,403,285 (13,905) 4,175,661
Other securities, including mortgage-
backed securities 20,778,877 11,686 (277,724) 20,512,839
------------- ------------- ------------- -------------
$ 160,288,342 $ 3,237,622 $ (1,314,523) $ 162,211,441
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
June 30, 1999
HELD TO MATURITY Gross Gross
Amortized Unrealized Unrealized
Cost Gains Losses Fair Value
---------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
Obligations of state and political
subdivisions $ 355,000 $ 1,836 $ (369) $ 356,467
Other securities, including mortgage-
backed securities 299,874 4,474 (237) 304,111
------------- ------------- ------------- -------------
$ 654,874 $ 6,310 $ (606) $ 660,578
============= ============= ============= =============
</TABLE>
Page 9
<PAGE> 10
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 31, 1998
AVAILABLE FOR SALE Gross Gross
Amortized Unrealized Unrealized
Cost Gains Losses Fair Value
---------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
U.S. Treasury securities and obligations
of U.S. Government corporations
and agencies $ 69,024,266 $ 1,198,600 $ (98,129) $ 70,124,737
Obligations of state and political
subdivisions 52,759,051 1,661,950 (17,364) 54,403,637
Corporate bonds 17,957,515 166,350 (7,115) 18,116,750
Equity securities 1,867,519 2,605,797 (22,405) 4,450,911
Other securities, including mortgage-
backed securities 24,780,487 86,596 (10,418) 24,856,665
------------- ------------- ------------- -------------
$ 166,388,838 $ 5,719,293 $ (155,431) $ 171,952,700
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
December 31, 1998
HELD TO MATURITY Gross Gross
Amortized Unrealized Unrealized
Cost Gains Losses Fair Value
---------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
Obligations of state and political
subdivisions $ 355,000 $ 7,564 $ 0 $ 362,564
Other securities, including mortgage-
backed securities 455,122 6,054 (108) 461,068
------------- ------------- ------------- -------------
$ 810,122 $ 13,618 $ (108) $ 823,632
============= ============= ============= =============
</TABLE>
Page 10
<PAGE> 11
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
The amortized cost and fair value of securities at June 30, 1999, by contractual
maturity, are shown below. Actual maturities may differ from contractual
maturities because issuers may have the right to call or prepay obligations.
Securities not due at a single maturity date, primarily mortgage-backed
securities and equity securities are shown separately.
<TABLE>
<CAPTION>
AVAILABLE FOR SALE Amortized Cost Fair Value
-------------- --------------
<S> <C> <C>
Due in one year or less $ 27,433,070 $ 27,529,430
Due after one year through five years 88,663,686 88,362,083
Due after five years through ten years 21,412,826 21,416,794
Due after ten years 213,602 214,634
Mortgage-backed securities 20,778,877 20,512,839
Equity securities 1,786,281 4,175,661
------------- ------------
Total securities available for sale $ 160,288,342 $162,211,441
============= ============
</TABLE>
<TABLE>
<CAPTION>
Estimated
Held to maturity Amortized Cost Fair Value
-------------- --------------
<S> <C> <C>
Due in one year or less $ 122,500 $ 123,161
Due after one year through five years 232,500 233,305
Mortgage-backed securities 299,874 304,112
------------- ------------
Total securities held to maturity $ 654,874 $ 660,578
============= ============
</TABLE>
Proceeds from sales of securities available for sale during the six months ended
June 30, 1999 totaled $2,219,394 resulting in gross gains of $730,861. Proceeds
from the sales of securities available for sale during the three months ended
June 30, 1999 totaled $1,009,807 resulting in gross gains of $3,557. No
securities were called or settled by the issuer during the three or six months
ended June 30, 1999. Securities called or settled by the issuer resulted in
gains of $19,580 for the six months ended June 30, 1998.
Securities with a carrying value of approximately $62,635,000 and $60,960,000
were pledged as of June 30, 1999 and December 31, 1998, respectively, to secure
public deposits, other deposits and liabilities as required by law.
Page 11
<PAGE> 12
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
(3) Loans
Loans at June 30, 1999 and December 31, 1998 were as follows:
<TABLE>
<CAPTION>
6/30/1999 12/31/1998
--------- ----------
<S> <C> <C>
Commercial and Agriculture $ 23,804,472 $ 28,415,462
Real Estate - mortgage 222,102,847 221,438,442
Real Estate - construction 3,520,918 3,492,928
Consumer 27,915,600 29,957,511
Credit card and other 2,762,038 1,426,312
Deferred loan fees (1,072,655) (1,140,518)
Unearned interest (163,498) (240,936)
------------- -------------
Total $ 278,869,722 $ 283,349,201
============= =============
</TABLE>
(4) Allowance for Loan Losses
A summary of the activity in the allowance for loan losses for the six months
ended June 30, 1999 and 1998 was as follows:
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Balance January 1, $ 4,567,126 $ 4,707,051
Loans charged-off (401,052) (367,266)
Recoveries 136,319 126,496
Provision for loan losses 156,000 216,000
------------- -------------
Balance June 30, $ 4,458,393 $ 4,682,281
============= =============
</TABLE>
Page 12
<PAGE> 13
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
Information regarding impaired loans was as follows for the six months
ended June 30.
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Average investment in impaired loans $3,747,000 $4,223,000
Interest income recognized on impaired loans
including interest income recognized on cash basis 144,502 142,919
Interest Income recognized on impaired loans
on cash basis 144,502 142,919
</TABLE>
Information regarding impaired loans at June 30, 1999 and December 31, 1998
was as follows:
<TABLE>
<CAPTION>
6/30/1999 12/31/98
--------- --------
<S> <C> <C>
Balance impaired loans $3,923,000 $4,159,000
Less portion for which no allowance for loan
losses is allocated -- --
Portion of impaired loan balance for which an
allowance for credit losses is allocated $3,923,000 $4,159,000
========== ==========
Portion of allowance for loan losses allocated to
the impaired loan balace $1,145,000 $1,173,000
========== ==========
</TABLE>
(5) Commitments, Contingencies and Off-Balance Sheet Risk
The Bank subsidiaries are parties to financial instruments with
off-balance sheet risk in the normal course of business to meet
financing needs of their customers. These include commitments to make
or purchase loans, undisbursed lines of credit, undisbursed credit card
balances and letters of credit. The Banks' exposure to credit loss in
the event of nonperformance by the other party to the financial
instrument is represented by the contractual amount of those
instruments. The Banks follow the same credit policy to make such
commitments as they use for loans recorded on the consolidated balance
sheets. Since many commitments to make loans expire without being used,
the amount does not necessarily represent future cash commitments.
Collateral obtained relating to the commitments is determined using
management's credit evaluation of the borrower and may include real
estate, vehicles, business assets, deposits and other items. The Banks
do make fixed rate loan commitments for short periods of time. However,
such commitments were immaterial as of June 30, 1999 and December 31,
1998.
Page 13
<PAGE> 14
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
Commitments to extend credit and letters of credit approximated the
following amounts at June 30, 1999 and December 31, 1998.
<TABLE>
<CAPTION>
Contract Amount
---------------
June 30, 1999 December 31, 1998
------------ -----------------
<S> <C> <C>
Commitment to extend credit:
Lines of credit and construction loans $17,522,000 $23,412,000
Credit cards 3,624,000 3,315,000
Letters of credit 388,000 623,000
----------- -----------
$21,534,000 $27,350,000
=========== ===========
</TABLE>
The Banks are required to maintain certain reserve balances on hand in
accordance with the Federal Reserve Board requirements. The average
reserve balance maintained in accordance with such requirements for the
periods ended June 30, 1999 and December 31, 1998 approximated
$2,734,000 and $2,326,000.
In the normal course of business, the Corporation and its subsidiaries
are involved in various legal actions, but in the opinion of management
and its legal counsel, ultimate disposition of such legal matters is
not expected to have a material adverse effect on the consolidated
financial statements.
Page 14
<PAGE> 15
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
INTRODUCTION
The following discussion focuses on the consolidated financial
condition of First Citizens Banc Corp at June 30, 1999, compared to
December 31, 1998 and the consolidated results of operations for the
three and six month periods ending June 30, 1999 compared to the same
periods in 1998. This discussion should be read in conjunction with the
consolidated financial statements and footnotes included in this Form
10-Q.
The registrant is not aware of any trends, events or uncertainties that
will have, or are reasonably likely to have, a material effect on the
liquidity, capital resources, or operations except as discussed herein.
Also, the registrant is not aware of any current recommendation by
regulatory authorities, which would have a material effect if
implemented.
When used in this Form 10-Q or future filings by the Corporation with
the Securities and Exchange Commission, in press releases or other
public or shareholder communications, or in oral statements made with
the approval of an authorized executive officer, the words or phrases
"will likely result," "are expected to," "will continue," "is
anticipated," "estimate," "project," "believe," or similar expressions
are intended to identify "forward looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. The
Corporation wishes to caution readers not to place undue reliance on
any such forward-looking statements, which speak only as of the date
made, and to advise readers that various factors, including regional
and national economic conditions, changes in levels of market interest
rates, credit risks of lending activities and competitive and
regulatory factors, could effect the Corporation's financial
performance and could cause the Corporation's actual results for future
periods to differ materially from those anticipated or projected. The
Corporation does not undertake, and specifically disclaims, any
obligation to publicly release the result of any revisions, which may
be made to any forward-looking statements to reflect occurrence of
anticipated or unanticipated events or circumstances after the date of
such statements.
See Exhibit 99, which is incorporated herein by reference.
FINANCIAL CONDITION
Total assets of the Corporation at June 30, 1999 totaled $482,517,508
compared to $508,888,863 at December 31, 1998. This was a decrease of
$26,371,355, or 5.2 percent. Within the structure of the assets, net
loans have decreased $4,370,746, or 1.6 percent since December 31,
1998, due in part to slow loan demand. The demand for mortgage loans
has been mainly for fixed rate. These are the types of loans the
Corporation is selling on the secondary market. For the first six
months of 1999, loans originated for sale totaled $7,242,501. Loans
held-for-sale decreased $24,234, or 1.1 percent from December 31, 1998.
At June 30, 1999, the net loan to deposit ratio was 67.3 percent
compared to 66.7 percent at December 31, 1998.
Page 15
<PAGE> 16
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
At June 30, 1999, $162,211,441, or 99.6 percent of the security
portfolio was classified as available for sale. The remainder of
$654,874 was classified as held to maturity. Securities decreased
$9,896,507 from December 31, 1998. Some matured securities were not
replaced in order to increase liquidity. Additionally, equity
securities with a market value of $2,219,394 were sold during the six
months ended June 30, 1999.
For the six months of operations in 1999, $156,000 was placed into the
allowance from earnings compared to $216,000 for the same period of
1998. The Corporation has placed an increased emphasis on valuation of
the reserve for loan losses. The calculation of specific reserves,
reserves for delinquencies and general reserves should be fairly
representative of the reserves necessary for the portfolio. Valuation
of these portions lessens the need for unallocated reserves. The
unallocated portion is reserved to cover situations not addressed by
the specific, delinquent or general portions, such as a downturn in the
economy. As a guideline for the unallocated portion of the reserve, the
Corporation uses a range of 25% to 35% of the total reserve. If this
range is exceeded, then provisions to the reserve will be reduced. Net
charge-offs for the first six months of 1999 were $264,733 compared to
$240,770 for the same period of 1998. The June 30, 1999 allowance for
loan losses as a percent of total loans was 1.60 percent compared to
1.61 percent at December 31, 1998.
Office premises and equipment have increased $37,048 and intangible
assets have decreased $168,023 since December 31, 1998. The increase in
office premises and equipment is attributed to new purchases of
$512,254, less proceeds from the sale of equipment of $1,627 and
depreciation of $473,579.
Accrued interest and other assets totaled $6,625,286 at June 30, 1999
compared to $8,531,086 at December 31, 1998, a decrease of $1,905,800.
This decrease was due to an increase in interest receivable at the
banks of $387,135, an increase in other assets of $580,706 and a
decrease in accounts receivable at SCC of $2,966,692. Accounts
receivable decreased when SCC received payment from Jack Henry and
Associates for the sale of the processing contracts.
Total deposits at June 30, 1999 decreased $10,316,713 from year-end
1998. Noninterest-bearing deposits, representing demand deposit
balances, decreased $337,010 from year-end 1998. Interest-bearing
deposits, including savings and time deposits, decreased $9,979,703
from year-end 1998. The year to date 1999 average balance of savings
deposits has increased $1,608,000 compared to the average balance of
the same period for 1998. The current average rate of these deposits is
2.41 percent compared to 2.90 percent in 1998. The decrease in the
savings rate is due to the Banks lowering the savings rate between 25
and 50 basis points. The year to date 1999 average balance of time
certificates has increased $60,000 compared to the average balance for
the same period for 1998. The current average rate on these deposits is
4.97 percent compared to 5.55 percent for the same period in 1998. This
decrease in rate is due to pricing strategies employed to help control
the cost of deposits, reaction to market interest rates trending down
and slowing deposit growth during a period of slower loan demand.
Page 16
<PAGE> 17
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
Other borrowed funds have decreased $13,292,780 from December 31, 1998
to June 30, 1999. Federal Home Loan Bank borrowings have decreased
$11,007,083 as a result of scheduled paydowns. Securities sold under
agreements to repurchase, which tend to fluctuate, have decreased
$4,155,049 and U.S. Treasury Tax Demand Notes have increased
$1,869,352, pending payment to the government.
Shareholders' equity at June 30, 1999 was $53,005,348, which was 11.0
percent of total assets. Shareholders' equity at December 31, 1998 was
$53,740,931, which was 10.6 percent of total assets. The decrease in
shareholders' equity was represented by earnings of $3,048,459,
dividends paid of $1,364,289, the purchase of treasury stock for
$16,851 and the decrease in the unrealized gain on securities available
for sale of $2,402,902. The Corporation paid a cash dividends on
February 1, 1999 and May 1, 1999, each at a rate of $.16 per share.
Total outstanding shares at June 30, 1999 were 4,262,795.
RESULTS OF OPERATIONS
Net income for the quarter ended June 30, 1999 was $1,192,878, or $.28
per common share compared to $1,009,141, or $.24 per common share for
the same period in 1998. This was an increase of $183,737, or 18.2
percent. Some of the reasons for the changes are explained below.
Net interest income for the second quarter 1999 totaled $4,366,316
compared to $4,156,012 for the second quarter of 1998. This was an
increase of $210,304, or 5.1 percent. Total interest income for the
first six months of 1999 has decreased $559,376, or 3.3 percent
compared to the same period in 1998. The average rate on earning assets
on a tax equivalent basis for the first six months of 1999 was 7.22
percent and 7.66 percent for the first six months of 1998. Total
interest expense for the first six months of 1999 has decreased
$878,779, or 10.2 percent compared to the same period of 1998. This
decrease is due mainly to a decrease in interest on deposits of
$726,325. The average rate on interest-bearing liabilities for the
first six months of 1999 was 3.29 percent compared to 3.75 percent for
the same period of 1998. The net interest margin on a tax equivalent
basis was 3.93 percent for the six-month period ended June 30, 1999 and
3.91 percent for the same period ended June 30, 1998.
Noninterest income for the second quarter 1999 totaled $877,967
compared to $991,430 for the second quarter 1998, a decrease of
$113,463. Gain on securities for the quarter increased $3,557 compared
to 1998. Revenue from computer operations decreased $131,902, other
operating income increased $42,963, service charges on deposit accounts
decreased $15,204 and the gain on the sale of loans decreased $12,867.
Gain on the sale of loans increased due to increased volume of loans
sold. Noninterest income for the first six months of 1999 totaled
$2,782,734 compared to $1,961,279 for the same period of 1998, an
increase of $821,455. Gain on securities for the first six months of
1999 increased $711,281 compared to 1998. The large increase in the
gain on securities was due to the sale of equity securities at Farmers.
The equity securities were
Page 17
<PAGE> 18
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
sold to take advantage of significant increases in the market value of
the portfolio. Revenue from computer operations decreased $84,308 as a
result of the sale of SCC's processing contracts, other operating
income increased $131,020, due mainly to increased revenue from
point-of-sale terminal usage, service charges on deposit accounts
increased $15,776 and the gain on the sale of loans increased $47,686.
Gain on the sale of loans increased due to increased volume of loans
sold
Noninterest expense for the second quarter 1999 totaled $3,543,261
compared to $3,644,016 for the second quarter 1998. This was a decrease
of $100,755, or 2.8 percent. The largest change in noninterest expense
was in professional fees. Professional fees decreased $150,968, due
mainly to merger costs associated with Farmers.
INCOME TAX EXPENSE
Income tax expense for the second quarter of 1999 totaled $420,144
compared to $386,285 for the second quarter of 1998. This was an
increase of $33,859, or 8.8 percent. The increase in the federal income
taxes is a result of the increase in total income before taxes of
$217,596. The effective tax rate was 26.0% for the three months ended
June 30, 1999 and 27.7% for the three months ended June 30, 1998.
Income tax expense for the first half of 1999 totaled $1,149,015
compared to $889,443 for the first half of 1998. This was an increase
of $259,572, or 29.2 percent. The increase in the federal income taxes
is a result of the increase in total income before taxes of $1,038,471,
generated mostly by income from the sale of equity securities. The
effective tax rate were comparable for the six month periods ended June
30, 1999 and June 30, 1998, at 27.4% and 28.2% respectively.
CAPITAL RESOURCES
Shareholders equity totaled $53,005,348 at June 30, 1999 compared to
$53,740,931 at December 31, 1998. All of the capital ratios exceed the
regulatory minimum guidelines as identified in the following table:
<TABLE>
<CAPTION>
Corporation Ratios Regulatory
6/30/99 12/31/98 Minimums
------- -------- --------
<S> <C> <C> <C>
Tier I Risk Based Capital 17.4% 15.7% 4.0%
Total Risk Based Capital 18.6% 17.0% 8.0%
Leverage Ratio 10.2% 9.5% 5.0%
</TABLE>
Page 18
<PAGE> 19
First Citizens Banc Corp
Management's Discussion and Analysis of Financial Condition
and Results of Operations
Form 10-Q
- -------------------------------------------------------------------------------
The Corporation paid a cash dividends of $.16 per common share each on
February 1, 1999 and May 1, 1999 compared to $.15 per common share each
on February 1, 1998 and May 1, 1998.
Capital expenditures totaled $512,254 for the first six months of 1999
compared to $428,343 for the same period of 1998.
LIQUIDITY
Liquidity as it relates to the banking entities of the Corporation is
the ability to meet the cash demand and credit needs of its customers.
For the first six months of 1999 the Banks maintained a federal funds
sold position that averaged $14,299,000. In addition, the Banks,
through their respective correspondent banks, maintain federal funds
borrowing lines totaling $30,850,000 and the Banks have total borrowing
availability at the Federal Home Loan Bank of Cincinnati of $23,571,918
at June 30, 1999. Finally, 99.6% of the Corporation's security
portfolio has been classified as available for sale, which provides
additional liquidity.
YEAR 2000 ISSUE
First Citizens Banc Corp realizes that the Year 2000 challenge is a
serious problem for not only itself and other banks but for all
organizations. Many computer systems that use dates to calculate any
number of computations, functions, and a vast number of commands may
begin to fail prior to or on the start of the new Year 2000. It is
critical to the continuing operations of First Citizens Banc Corp that
all its systems that are sensitive to the Year 2000 date change be
identified and changed before any adverse situations occur. First
Citizens Banc Corp's definition of Year 2000 Compliant is the
capability of sustaining minimal business disruptions, readiness of
system applications and preparation for response and recovery as
necessary. System applications are considered Year 2000 ready when they
continue to produce the same understandable, accurate and predictable
results, regardless of the date.
The Year 2000 Plan is broken into 5 separate parts. Each part is
important to the end result of being 2000 compliant. Upon completion of
the plan all items will have been examined and corrected (or documented
as an exception). The phases are as follows: awareness, assessment,
renovation, validation, and implementation.
The awareness phase involves identifying the Year 2000 problem, gaining
executive level support for recognizing the importance of the problem,
and developing a team and strategy for handling the problem. First
Citizens Banc Corp has appointed Year 2000 Directors and established
Year 2000 Teams and an Executive Y2K Committee. To help inform our
customer and our community of the Year 2000 issue, we have sent
brochures out to our customers and held information seminars that were
open to the public.
Page 19
<PAGE> 20
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
The assessment phase involves identifying the size and complexity of
the problem as it relates to First Citizens Banc Corp, including
identifying all software, hardware, systems, and internal and external
interdependencies that are affected by the century change. From the
regulatory perspective, this also includes identifying the resources
needed, the time frames, and the processes necessary to handle the Year
2000 problem. Assessment lists have been completed listing those items
that are Year 2000 susceptible, prioritizing them as to their
importance. Maintaining this list and contact with all necessary
vendors is an ongoing process. Questionnaires were sent out to loan and
deposit customers to help address our credit and liquidity risks.
The renovation phase involves programming or reprogramming systems,
hardware and software upgrades, system replacements, and related
changes that we will have to make to prepare all systems for the turn
of the century. This includes ongoing contact with any third-party
servicers or software providers that the bank may be using. First
Citizens Banc Corp is having all incompliant hardware and software
either updated or replaced.
The validation phase is essentially the testing phase to determine that
all upgrades or reprogrammed systems, as well as other systems that are
believed to be Year 2000 compliant, are truly ready for the date change
to January 1, 2000. First Citizens Banc Corp has developed a test plan
to verify that all hardware and software in use will be ready for the
Year 2000. Testing is currently ongoing and was completed as planned by
June 30, 1999 for all mission critical items. Testing for all
non-critical items will be completed by September 30, 1999.
The implementation phase involves certification that existing systems
are ready to go, and that any new systems or changes to existing
systems are compliant with the turn of the century requirements. Active
involvement of all departments and teams will monitor new and existing
items to insure that a smooth transition into the Year 2000 and beyond
is achieved.
In anticipation of potential Year 2000 problems, the Corporation has
addressed both preventative measures and corrective actions. Management
has set a maximum budget of $281,100 for Year 2000 related issues.
Through June 30, 1999, approximately $180,900 has been spent on
solutions for possible problems. In addition to the dollars spent,
specific contingency plans are in place for all mission critical items.
Mission critical items are the programs that must be in place in order
for the Corporation to continue operations with minimal business
disruptions. The contingency plans vary widely and range from manual
report preparation to telephone authorization of funds transfer to
reliance on vendor's contingency plans where no other alternative
exists.
SALE OF DATA PROCESSING CONTRACTS AT SCC RESOURCES, INC.
On June 19,1998, SCC entered into an agreement with Jack Henry &
Associates, Inc. (JHA) to sell all of the contracts for providing data
processing services to community banks. JHA agreed to pay a fee based
upon annual net revenue under the new JHA contract for each bank that
signed
Page 20
<PAGE> 21
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
a five-year contract with JHA by January 31, 1999. The Corporation
recognized $2,966,692 of income as a result of the sale of the
contracts in 1998. Expenses of $1,432,572 relating primarily to the
write down of software and intangible assets, lease termination costs
and employee severance costs were also recorded. The net gain of
$1,534,120 was reflected in other income for the year ended December
31, 1998. All banks were converted to JHA's software by the end of June
1999. SCC will continue to offer bookkeeping, proof and imaging
services to its customer banks, as well as the affiliated banks.
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Corporation's primary market risk exposure is interest rate risk
and, to a lesser extent, liquidity risk. The Banks do not maintain a
trading account for any class of financial instrument and the
Corporation is not affected by foreign currency exchange rate risk or
commodity price risk. Due to the basis in equities held by Farmers
being so much less than the current fair value at this time, the
Corporation is not subject to significant equity price risk.
Interest rate risk is the risk that the Corporation's financial
condition will be adversely affected due to movements in interest
rates. The Corporation, like other financial institutions, is subject
to interest rate risk to the extent that its interest-earning assets
reprice differently than interest-bearing liabilities. The income of
financial institutions is primarily derived from the excess of interest
earned on interest-earning assets over interest paid on
interest-bearing liabilities. One of the Corporation's principal
financial objectives is to achieve long-term profitability while
reducing its exposure to fluctuations in interest rates. Accordingly,
the Corporation places great importance on monitoring and controlling
interest rate risk.
There are several methods employed by the Corporation to monitor and
control interest rate risk. One such method is using gap analysis. The
gap is defined as the repricing variance between rate sensitive assets
and rate sensitive liabilities within certain periods. The repricing
can occur due to changes in rates on variable products as well as
maturities of interest-earning assets and interest-bearing liabilities.
A high ratio of interest sensitive liabilities, generally referred to
as a negative gap, tends to benefit net interest income during periods
of falling rates as the average rate on interest-bearing liabilities
falls faster than the average rate earned on interest-earning assets.
The opposite holds true in during periods of rising rates. The
Corporation attempts to minimize the interest rate risk through
management of the gap in order to achieve consistent shareholder
return. The Corporation's Assets and Liability Management Policy is to
maintain a laddered gap position. One strategy is to originate variable
rate loans tied to market indices. Such loans reprice as the underlying
market index changes. Currently, approximately 51.1% of the
Corporation's loan portfolio reprices on at least an annual basis. The
Corporation also invests excess funds in federal funds that mature and
reprice daily.
Page 21
<PAGE> 22
First Citizens Banc Corp
Notes to Interim Consolidated Financial Statements (Unaudited)
Form 10-Q
- --------------------------------------------------------------------------------
The Corporation's 1998 annual report details a table, which provides
information about the Banks financial instruments that are sensitive to
changes in interest rates as of December 31, 1998. The table is based
on information and assumptions set forth in the notes. The Corporation
believes the assumptions are reasonable. For loans, securities and
liabilities with contractual maturities, the table represents principal
cash flows and weighted average interest rate. For variable rate loans
the contractual maturity and weighted average interest rate were used
with an explanatory footnote as to repricing periods. For liabilities
without contractual maturities such as demand and savings deposits, a
decay rate was utilized to match their most likely withdrawal behavior.
Management believes that no events have occurred since December 31,
1998 which would significantly change the ratio of rate sensitive
liabilities for the given time horizon.
Page 22
<PAGE> 23
First Citizens Banc Corp
Other Information
Form 10-Q
- --------------------------------------------------------------------------------
Part II - Other Information
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSIONS OF MATTERS TO A VOTE OF SECURITY HOLDERS
First Citizens Banc Corp held its annual meeting on May 4, 1999, for
the purpose of considering and voting on the following:
1.) To elect five Class III directors to serve terms of three
years or until their successors are elected and qualified.
2.) To ratify appointment of Crowe, Chizek & Co. as independent
auditors for the calendar year 1999.
Five directors, Robert L. Bordner, Mary Lee G. Close, Richard
B. Fuller, George L. Mylander and Richard O. Wagner were nominated for
reelection and were subsequently reelected as directors. The
appointment of Crowe, Chizek & Co. as independent auditors was
ratified. No other issues were brought before the meeting.
The summary of the voting of common shares outstanding was as follows:
<TABLE>
<CAPTION>
For Withheld
<S> <C> <C>
DIRECTOR CANDIDATE
Robert L. Bordner 2,771,071 49,923
Mary Lee G. Close 2,756,916 64,078
Richard B. Fuller 2,769,185 51,809
George L. Mylander 2,770,617 50,377
Richard O. Wagner 2,756,816 64,178
</TABLE>
<TABLE>
<CAPTION>
For Against Abstain
ACCOUNTING FIRM
<S> <C> <C> <C>
Crowe, Chizek & Co. 2,795,153 566 25,275
</TABLE>
Page 23
<PAGE> 24
Item 5. OTHER INFORMATION
None
Item 6. (a) EXHIBIT NO. 27 Financial Data Schedule .................27
(b) EXHIBIT NO. 99 Safe Harbor under the Private
Securities Litigation Reform Act of 1995
(c) REPORTS ON FORM 8-K - Incorporated by reference.
Originally filed on April 14, 1999 announcing the
rescheduling of our annual meeting from April 20,
1999 to May 4, 1999.
Page 24
<PAGE> 25
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
The registrant has caused this report to be signed on its behalf the
undersigned thereunto duly authorized.
First Citizens Banc Corp
/s/ David A. Voight August 12, 1999
- ------------------------------- -------------------------
David A. Voight Date
President
/s/ James O. Miller August 12, 1999
- ------------------------------- -------------------------
James O. Miller Date
Executive Vice President
Page 25
<PAGE> 26
<TABLE>
<CAPTION>
Exhibit
Number Description Page Number
- ------ ----------- -----------
<S> <C> <C>
27 Financial Data Schedule 27
99 Safe Harbor Under the Private Securities Incorporated by reference to Exhibit 99 to
Litigation Reform Act of 1995 Annual Report on Form 10-K for the Year Ended
December 31, 1998 filed by the registrant on
March 25, 1999
</TABLE>
Page 26
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000944745
<NAME> FIRST CITIZENS BANC CORP.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 15,864,520
<INT-BEARING-DEPOSITS> 149,282
<FED-FUNDS-SOLD> 10,585,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 162,211,441
<INVESTMENTS-CARRYING> 654,874
<INVESTMENTS-MARKET> 660,578
<LOANS> 274,411,329
<ALLOWANCE> 4,458,393
<TOTAL-ASSETS> 482,517,508
<DEPOSITS> 407,582,532
<SHORT-TERM> 15,055,542
<LIABILITIES-OTHER> 4,646,004
<LONG-TERM> 2,228,082
0
0
<COMMON> 23,257,520
<OTHER-SE> 29,747,828
<TOTAL-LIABILITIES-AND-EQUITY> 482,571,508
<INTEREST-LOAN> 11,556,813
<INTEREST-INVEST> 4,565,093
<INTEREST-OTHER> 362,050
<INTEREST-TOTAL> 16,483,956
<INTEREST-DEPOSIT> 7,224,511
<INTEREST-EXPENSE> 7,731,122
<INTEREST-INCOME-NET> 8,752,834
<LOAN-LOSSES> 156,000
<SECURITIES-GAINS> 730,861
<EXPENSE-OTHER> 7,125,844
<INCOME-PRETAX> 4,197,474
<INCOME-PRE-EXTRAORDINARY> 3,048,459
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,048,459
<EPS-BASIC> .71
<EPS-DILUTED> .71
<YIELD-ACTUAL> 3.71
<LOANS-NON> 1,609,000
<LOANS-PAST> 701,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 4,567,126
<CHARGE-OFFS> 401,052
<RECOVERIES> 136,319
<ALLOWANCE-CLOSE> 4,458,393
<ALLOWANCE-DOMESTIC> 4,458,393
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,388,687
</TABLE>
