-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, ii+TLXdEifiVTTMviLu006rCmY0+N9YDyj6giYZHR3BC5+fuxKO+U8lQrvZzulCy jOL75tOXEFLbn+t6vPg6uw== 0000036340-94-000007.txt : 19940516 0000036340-94-000007.hdr.sgml : 19940516 ACCESSION NUMBER: 0000036340-94-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940331 FILED AS OF DATE: 19940427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PREMIER FINANCIAL SERVICES INC CENTRAL INDEX KEY: 0000036340 STANDARD INDUSTRIAL CLASSIFICATION: 6022 IRS NUMBER: 362852290 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13425 FILM NUMBER: 94524628 BUSINESS ADDRESS: STREET 1: 27 WEST MAIN ST STE 101 CITY: FREEPORT STATE: IL ZIP: 61032 BUSINESS PHONE: 8152333671 FORMER COMPANY: FORMER CONFORMED NAME: FIRST FREEPORT CORP DATE OF NAME CHANGE: 19840710 10-Q 1 10-Q 03/31/94 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 Form 10-Q Quarterly Report Under Section 13 or 15(d) of The Securities Exchange Act of 1934 For the Quarter Ended March 31, 1994, Commission File Number 0-13425 PREMIER FINANCIAL SERVICES, INC. (Exact name of registrant as specified in its Charter) Delaware 36-2852290 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 27 W. Main Street, Suite 101 61032 Freeport, Illinois (Zip Code) (Address of Principal executive offices) Registrant's telephone number, including area code (815) 233-3671 Number of Shares of Common Stock ($5 Par Value) outstanding as of March 31, 1994: 2,163,107 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 (This report contains 3 pages) Part I Item 1. Financial Statements. The following consolidated financial statements of the Company, which are included in the quarterly report of the registrant to its stockholders for the quarter ended March 31, 1994, are submitted herewith as an exhibit and are incorporated herein by reference: 1. Consolidated Balance Sheets, March 31, 1994, March 31, 1993 and, December 31, 1993. 2. Consolidated Statements of Earnings, quarters ended March 31, 1994 and 1993. 3. Consolidated Statements of Cash Flows, three months ended March 31, 1994 and 1993. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Incorporated herein by reference to the Registrant's Quarterly Report to its stockholders for the quarter ended March 31, 1994, which is included as an exhibit to this report. Part II Item 6. Exhibits and Reports on Form 8-K. 1. The following documents are filed as a part of this report: A. Consolidated Financial Statements of the Company which are included in the quarterly report of the registrant to its stockholders for the quarter ended March 31, 1994 as follows: 1. Consolidated Balance Sheets, March 31, 1994, March 31, 1993 and December 31, 1993. 2. Consolidated Statements of Earnings, quarters ended March 31, 1994 and 1993. B. Exhibits as follows: 20. Premier Financial Services, Inc. Quarterly Report dated March 31, 1994. 28. Consolidated Statements of Cash Flows, three months ended March 31, 1994 and 1993. -2- 2. Reports on Form 8-K - The registrant has not filed any reports on Form 8-K, nor has it been required to file such reports, for the quarter ended March 31, 1994. 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. PREMIER FINANCIAL SERVICES, INC. By: D. L. Murray, Executive Vice President & Chief Financial Officer April 19, 1994 (Date) -3- EX-13 2 QUARTERLY REPORT AND CASH FLOWS TO OUR STOCKHOLDERS: Net Earnings for the first quarter of 1994 totaled $1,354,634, a 17.1% increase over the $1,157,291 earned in the first quarter of 1993. After paying dividends on preferred stock, income available to common shareholders represented $.47 per share as compared to $.59 per share for the first three months of 1993. We've made substantial progress this quarter with respect to loan portfolio quality. At year end, non-performing assets aggregated $13.2 million, or 2.16% of total assets. As of March 31, 1994, 1.68%, or $10.0 million of our assets were non-performing. Significantly, the improvement was the result of our collection efforts rather than charges against earnings. Net charge offs for the quarter totaled less than $7,000. We're quite pleased with the progress we've made since our third quarter 1993 merger with First Northbrook Bancorp, Inc. As 1994 unfolds, we'll continue to look for opportunities to maximize efficiency while improving interest margins and asset quality. With the implementation of FAS No. 115 ("Accounting for Certain Investments in Debt and Equity Securities") this year, a new caption titled "Unrealized loss on securities available for sale" is included in the Stockholders' Equity section of our balance sheet. Essentially, FAS No. 115 requires that securities available for sale be reported at "fair value", and the unrecognized loss, if any, be deducted from Stockholders' Equity. This "fair value" will naturally fluctuate, perhaps significantly, as interest rates rise and fall. Although it's unlikely that we would liquidate the entire portfolio, we are required to designate investments which we might sell for liquidity purposes and account for them as indicated. In January, 1994, your Board of Directors voted to increase the quarterly cash dividend rate on our common stock by 8.3%, from $.12 per share to $.13. We're excited with the early results we've experienced in our new markets, and remain optimistic about the coming months. Thank you for your participation and continued support. Consolidated Balance Sheets - - -------------------------------------------------------------------------------------------------------------
March 31, March 31, December 31, 1994 1993 1993 - - ------------------------------------------------------------------------------------------------------------- Assets Cash & non-interest bearing deposits $22,246,528 $15,842,547 $26,151,048 Interest bearing deposits 23,375,556 651,580 20,227,486 Federal funds sold - - 9,977,000 - - ------------------------------------------------------------------------------------------------------------- Cash and cash equivalents 45,622,084 16,494,127 56,355,534 - - ------------------------------------------------------------------------------------------------------------- Investments held to maturity (approximate market value): March 31, 1994 - $40,631,000; March 31, 1993 - $31,453,000; December 31, 1993 - $41,572,000; 39,564,753 29,812,787 39,787,245 Securities available for sale (approximate market value): March 31, 1994 - $156,074,000; March 31, 1993 - $75,105,000; December 31, 1993 - $141,744,000; 156,074,015 73,220,152 140,699,066 Loans 309,802,970 225,778,303 331,905,335 Less: Unearned discount ( 451,713) ( 179,612) ( 517,932) Allowance for possible loan losses ( 4,362,603) ( 2,722,393) ( 4,369,290) - - ------------------------------------------------------------------------------------------------------------- Net loans 304,988,654 222,876,298 327,018,113 - - ------------------------------------------------------------------------------------------------------------- Bank premises & equipment 14,945,427 11,509,601 15,153,969 Excess cost over fair value of net assets acquired 22,794,908 2,961,402 23,193,016 Accrued interest receivable 5,193,134 3,578,637 5,070,332 Other assets 4,629,203 1,267,539 3,385,935 - - ------------------------------------------------------------------------------------------------------------- Total assets $593,812,178 $361,720,543 $610,663,210 - - ------------------------------------------------------------------------------------------------------------- Liabilities & stockholders' equity Non-interest bearing deposits $90,294,703 $41,121,700 $104,976,862 Interest bearing deposits 406,669,874 254,560,586 413,042,081 - - ------------------------------------------------------------------------------------------------------------- Deposits 496,964,577 295,682,286 518,018,943 - - ------------------------------------------------------------------------------------------------------------- Short-term borrowings 15,925,000 17,425,000 12,410,000 Securities sold under agreements to repurchase 21,207,805 13,581,584 20,571,658 Accrued taxes & other expenses 3,538,541 2,064,712 3,667,295 Other liabilities 584,270 303,328 579,275 - - ------------------------------------------------------------------------------------------------------------- Liabilities $538,220,193 $329,056,910 $555,247,171 - - ------------------------------------------------------------------------------------------------------------- Stockholders' equity Preferred stock - $1 par value, 1,000,000 shares authorized: Series A perpetual, $1,000 stated value, 8.25%, 7,000 shares authorized, 5,000 shares issued and outstanding; 5,000,000 - 5,000,000 Series B convertible, $1,000 stated value, 7.50%, 7,250 share authorized, 5,950 shares issued and outstanding; 5,950,000 - 5,950,000 Series C perpetual, $1,000 stated value, 7.00%, 1,950 shares authorized, issued and outstanding; 1,950,000 - 1,950,000 Series D perpetual, $1,000 stated value, 9.00%, 3,300 shares authorized, issued and outstanding; 3,300,000 - 3,300,000 Common stock- $5.00 par value March 31, March 31, December 31, No. of Shares 1994 1993 1993 Authorized 2,500,000 2,500,000 2,500,000 Issued 2,172,863 1,993,146 2,172,863 Outstanding 2,163,107 1,927,536 2,163,107 10,864,315 9,965,730 10,864,315 Surplus 16,134,180 12,533,290 16,134,180 Retained earnings 13,176,692 10,915,136 12,426,322 Unrealized loss on securities available for sale (net of tax) ( 574,424) Less: Treasury stock, (9,756 shares at cost, March 31, 1994 and December 31, 1993 and 65,610 shares at cost, March 31, 1993) ( 208,778) ( 750,523) ( 208,778) - - ------------------------------------------------------------------------------------------------------------- Stockholders' equity $55,591,985 $32,663,633 $55,416,039 - - ------------------------------------------------------------------------------------------------------------- Total liabilities & stockholders' equity $593,812,178 $361,720,543 $610,663,210 - - -------------------------------------------------------------------------------------------------------------
Consolidated Statements of Earnings - - -----------------------------------------------------------------------------------------------------------------------------------
Three Months Ended March 31, Interest income 1994 1993 Interest & fees on loans $5,993,666 $4,601,763 Interest & dividends on investment securities: Taxable 1,897,305 1,226,144 Exempt from federal income tax 527,415 391,458 Other interest income 126,129 22,771 - - ----------------------------------------------------------------------------------------------------------------------------------- Interest income 8,544,515 6,242,136 - - ----------------------------------------------------------------------------------------------------------------------------------- Interest expense Interest on deposits 3,059,638 2,405,642 Interest on short-term borrowings 317,308 282,200 - - ----------------------------------------------------------------------------------------------------------------------------------- Interest expense 3,376,946 2,687,842 - - ----------------------------------------------------------------------------------------------------------------------------------- Net interest income 5,167,569 3,554,294 Provision for possible loan losses - 75,000 - - ----------------------------------------------------------------------------------------------------------------------------------- Net interest income after provision for possible loan losses 5,167,569 3,479,294 - - ----------------------------------------------------------------------------------------------------------------------------------- Other income Trust fees 607,458 539,250 Service charges on deposits 463,943 242,953 Net gains on loans sold to secondary market 155,840 62,359 Investment securities gains, net - 20,394 Other operating income 620,483 216,923 - - ----------------------------------------------------------------------------------------------------------------------------------- Other income 1,847,724 1,081,879 - - ----------------------------------------------------------------------------------------------------------------------------------- Other expenses Salaries 1,902,015 1,408,070 Pension, profit sharing, & other employee benefits 349,240 205,156 Net occupancy of bank premises 523,440 281,495 Furniture & equipment 284,523 187,522 Federal deposit insurance premiums 299,330 170,750 Amortization of excess cost over fair value of net assets acquired 398,108 48,549 Other 1,298,382 670,432 - - ----------------------------------------------------------------------------------------------------------------------------------- Other expense 5,055,038 2,971,974 - - ----------------------------------------------------------------------------------------------------------------------------------- Earnings before income taxes 1,960,255 1,589,199 Applicable income taxes 605,621 431,908 - - ----------------------------------------------------------------------------------------------------------------------------------- Net earnings $1,354,634 $1,157,291 =================================================================================================================================== Earnings per share (On weighted average outstanding common shares of 2,205,595 in 1994 and 1,959,791 in 1993) $.47 $.59 - - -----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended March 31, 1994 and 1993 (unaudited) 1994 1993 ------ ------ Cash flows from operating activities: Net earnings $1,354,634 $1,157,291 Adjustments to reconcile net earnings to net cash from operating activities: Amortization net, related to: Investment securities 480,983 148,329 Excess of cost over net assets acquired 398,108 48,549 Other 171,820 ( 1,684) Depreciation 299,320 211,941 Provision for possible loan losses - 75,000 Gain on sale related to: Investment securities - ( 20,394) Loans sold to secondary market ( 155,840) ( 62,359) Change in: Securities available for sale (15,791,810) 4,156,597 Accrued interest receivable ( 122,802) 117,601 Other assets ( 1,243,268) ( 555,340) Accrued taxes & other expenses ( 128,754) ( 21,650) Other liabilities 4,995 2,448 - - ---------------------------------------------------------------------------------------------- Net cash from operating activities (14,732,614) 5,256,329 - - ---------------------------------------------------------------------------------------------- Cash flows from investing activities: Purchase of investment securities ( 2,511,785) ( 2,611,925) Proceeds from: Maturities of investment securities 2,095,731 1,129,463 Net (increase) decrease in loans 22,027,046 ( 5,637,426) Purchase of bank premises & equipment ( 104,345) ( 80,958) - - ---------------------------------------------------------------------------------------------- Net cash from investing activities 21,506,647 ( 7,200,846) - - ---------------------------------------------------------------------------------------------- Cash flows from financing activities: Net increase (decrease) in: Deposits (21,054,366) ( 13,210,826) Securities sold under agreements to repurchase 636,147 ( 1,272,826) Short term borrowings 3,515,000 11,273,000 Cash dividends paid ( 604,264) ( 231,304) - - ---------------------------------------------------------------------------------------------- Net cash from financing activities (17,507,483) ( 3,441,956) - - ---------------------------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents (10,733,450) ( 5,386,473) Cash and cash equivalents, beginning of year 56,355,534 21,880,600 - - ---------------------------------------------------------------------------------------------- Cash and cash equivalents, end of year $45,622,084 $16,494,127 - - ----------------------------------------------------------------------------------------------
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