-----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, sYHnkccGu06l+zYXXQK6okyWvZOBLR0U8Ik7mjpkaN8MK9Y+5szhfYV7xrHskXSO aaMweXZkZ3IU94Vf5nK7QQ== 0000036340-95-000009.txt : 19950426 0000036340-95-000009.hdr.sgml : 19950426 ACCESSION NUMBER: 0000036340-95-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950425 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PREMIER FINANCIAL SERVICES INC CENTRAL INDEX KEY: 0000036340 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [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: 95530992 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 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, 1995, 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, 1995: 6,524,217 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 4 pages) Part I Item 1. Financial Statements. The following consolidated financial statements of the Company are submitted herewith as an exhibit and are incorporated herein by reference: 1. Consolidated Balance Sheets, March 31, 1995, March 31, 1994 and, December 31, 1994. 2. Consolidated Statements of Earnings, quarters ended March 31, 1995 and 1994. 3. Consolidated Statements of Cash Flows, three months ended March 31, 1995 and 1994. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Premier Financial Services, Inc. earned $1.30 million for the first quarter of 1995 or $.15 earnings per share. Net earnings for the first quarter of 1994 totaled $1.35 million, or $.16 earnings per share. Return on average assets and common equity was .85% and 12.42%, respectively for the three months ended March 31, 1995, compared to .92% and 13.95% for the same period in 1994. Net interest income for the first quarter of 1995 was $5.3 million, as compared $5.2 million in 1994. The increase was essentially attributable to growth in average earning assets. Average earning assets totaled $545.4 million at March 31, 1995, an increase of $21.1 million from the $524.3 million reported in 1994. An analysis of first quarter results reflects a 115 basis point increase in the average yield on earning assets from 1994 to 1995, while the average cost of funds increased 118 basis points, resulting in a slightly lower net interest margin (4.21% in 1995 as compared to 4.24% in 1994). Premier recorded a loan loss provision of $51,000 in the first quarter. No provision for loan losses was made during the first three months of 1994. Nonperforming assets as a percentage of total assets decreased to .76% as of March 31, 1995 as compared to 1.68% at March 31, 1994 and 1.14% at December 31, 1994. The adequacy of the allowance is consistent with the composition of the portfolio and credit quality as of March 31, 1995. Assuming that anticipated loan growth materializes, it is likely that additional provisions will be made in future periods. Total noninterest income decreased $240,000, or 13.00% for the three months ended March 31, 1995 as compared to the same period in 1994. Contributing to the decrease was approximately $191,000 recorded in 1994 for fees and prior years' interest collected but not accrued on nonperforming loans. In addition, the income on real estate loan -2- originations and sales to the secondary market, which enhanced earnings before taxes in 1994 by $156,000, declined to $16,000 in 1995. Core fee income from trust and service charges on deposit accounts increased approximately $77,000 or 7.21%. Premier continues to exercise effective control over noninterest expenses which were slightly less in the quarter ended March 31, 1995 than in the first quarter of 1994. At March 31, 1995, stockholders' equity totaled $56 million, up from $52.5 million at December 31, 1994. This increase was due primarily to earnings net of common and preferred dividends and a decrease in the after tax unrealized loss recorded on securities available for sale in accordance with Statement of Financial Accounting Standards No. 115, Accounting for Certain Investments in Debt and Equity Securities. 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 for the quarter ended March 31, 1995 as follows: 1. Consolidated Balance Sheets, March 31, 1995, March 31, 1994 and December 31, 1994. 2. Consolidated Statements of Earnings, quarters ended March 31, 1995 and 1994. 3. Consolidated Statements of Cash Flows, three months ended March 31, 1995 and 1994. B. Exhibits as follows: 27. Financial Data Schedule, three months ended March 31, 1995. 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, 1995. -3- 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 D. L. Murray, Executive Vice President & Chief Financial Officer April 25, 1995 (Date) -4-
Consolidated Balance Sheets - ------------------------------------------------------------------------------------------------------------------------- March 31, March 31, December 31, 1995 1994 1994 - ------------------------------------------------------------------------------------------------------------------------- Assets Cash & non-interest bearing deposits $33,752,596 $22,246,528 $31,186,418 Interest bearing deposits 308,012 23,375,556 14,683,941 Federal funds sold - - - - ------------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents 34,060,608 45,622,084 45,870,359 - ------------------------------------------------------------------------------------------------------------------------- Investments held to maturity (approximate market value): March 31, 1995 - $39,473,000; March 31, 1994 - $40,631,000; December 31, 1994 - $40,516,000; 39,167,317 39,564,753 40,513,480 Securities available for sale 218,484,899 156,074,015 207,964,644 Loans 285,861,308 309,802,970 284,799,933 Less: Unearned discount ( 317,757) ( 451,713) ( 343,902) Allowance for possible loan losses ( 3,257,973) ( 4,362,603) ( 3,688,386) - ------------------------------------------------------------------------------------------------------------------------- Net loans 282,285,578 304,988,654 280,767,645 - ------------------------------------------------------------------------------------------------------------------------- Bank premises & equipment 14,099,624 14,945,427 14,254,748 Excess cost over fair value of net assets acquired 21,202,475 22,794,908 21,600,583 Accrued interest receivable 6,378,192 5,193,134 5,835,006 Other assets 4,389,084 4,629,203 3,697,272 - ------------------------------------------------------------------------------------------------------------------------- Total assets $620,067,777 $593,812,178 $620,503,737 - ------------------------------------------------------------------------------------------------------------------------- Liabilities & stockholders' equity Non-interest bearing deposits $74,604,945 $90,294,703 $86,018,604 Interest bearing deposits 446,769,918 406,669,874 437,674,799 - ------------------------------------------------------------------------------------------------------------------------- Deposits 521,374,863 496,964,577 523,693,403 - ------------------------------------------------------------------------------------------------------------------------- Short-term borrowings 21,800,000 15,925,000 26,185,000 Securities sold under agreements to repurchase 17,175,262 21,207,805 16,085,872 Accrued taxes & other expenses 3,510,164 3,538,541 1,759,512 Other liabilities 205,668 584,270 303,118 - ------------------------------------------------------------------------------------------------------------------------- Total liabilities $564,065,957 $538,220,193 $568,026,905 - ------------------------------------------------------------------------------------------------------------------------- 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 5,000,000 Series B convertible, $1,000 stated value, 7.50%, 7,250 shares authorized 7,250 shares issued and outstanding at March 31, 1995, and December 31, 1994, 5,950 issued and outstanding at March 31, 1994 7,250,000 5,950,000 7,250,000 Series C perpetual, $1,000 stated value, 7.00%, 1,950 shares authorized, issued and outstanding at March 31, 1994 - 1,950,000 - Series D perpetual, $1,000 stated value, 9.00%, 3,300 shares authorized, 2,000 shares issued and outstanding, 7.50%, at March 31, 1995 and December 31, 1994, 3,300 shares issued and outstanding, 9.00%, at December 31, 1993 2,000,000 3,300,000 2,000,000 Common stock- $5.00 par value March 31, March 31, December 31, No. of Shares 1995 1994 1994 Authorized 15,000,000 2,500,000 15,000,000 Issued 6,526,227 2,172,863 6,526,227 Outstanding 6,524,217 2,163,107 6,504,876 32,631,135 10,864,315 32,631,135 Surplus - 16,134,180 - Retained earnings 10,845,158 13,176,692 10,149,027 Unrealized loss on securities available for sale (net of tax) ( 1,708,128) ( 574,424) ( 4,403,568) Less: Treasury stock, (2,010 shares at cost, March 31, 1995, 21,351 shares at cost, December 31, 1994 and 9,756 shares at cost, March 31, 1994) ( 16,345) ( 208,778) ( 149,762) - ------------------------------------------------------------------------------------------------------------------------- Stockholders' equity $56,001,820 $55,591,985 $52,476,832 - ------------------------------------------------------------------------------------------------------------------------- Total liabilities & stockholders' equity $620,067,777 $593,812,178 $620,503,737 - -------------------------------------------------------------------------------------------------------------------------
Consolidated Statements of Earnings - ----------------------------------------------------------------------------------------------------------------------------------- Three Months Ended March 31, Interest income 1995 1994 Interest & fees on loans $6,443,026 $5,993,666 Interest & dividends on investment securities: Taxable 3,333,761 1,897,305 Exempt from federal income tax 553,975 527,415 Other interest income 102,981 126,129 - ----------------------------------------------------------------------------------------------------------------------------------- Interest income 10,433,743 8,544,515 - ----------------------------------------------------------------------------------------------------------------------------------- Interest expense Interest on deposits 4,535,318 3,059,638 Interest on short-term borrowings 563,787 317,308 - ----------------------------------------------------------------------------------------------------------------------------------- Interest expense 5,099,105 3,376,946 - ----------------------------------------------------------------------------------------------------------------------------------- Net interest income 5,334,638 5,167,569 Provision for possible loan losses 51,000 - - ----------------------------------------------------------------------------------------------------------------------------------- Net interest income after provision for possible loan losses 5,283,638 5,167,569 - ----------------------------------------------------------------------------------------------------------------------------------- Other income Trust fees 648,939 607,458 Service charges on deposits 499,677 463,943 Net gains on loans sold to secondary market 16,547 155,840 Investment securities gains, net 22,518 - Other operating income 419,862 620,483 - ----------------------------------------------------------------------------------------------------------------------------------- Other income 1,607,543 1,847,724 - ----------------------------------------------------------------------------------------------------------------------------------- Other expenses Salaries 2,007,503 1,902,015 Pension, profit sharing, & other employee benefits 320,017 349,240 Net occupancy of bank premises 538,409 523,440 Furniture & equipment 295,782 284,523 Federal deposit insurance premiums 280,774 299,330 Amortization of excess cost over fair value of net assets acquired 398,108 398,108 Other 1,212,479 1,298,382 - ----------------------------------------------------------------------------------------------------------------------------------- Other expense 5,053,072 5,055,038 - ----------------------------------------------------------------------------------------------------------------------------------- Earnings before income taxes 1,838,109 1,960,255 Applicable income taxes 539,306 605,621 - ----------------------------------------------------------------------------------------------------------------------------------- Net earnings $1,298,803 $1,354,634 =================================================================================================================================== Earnings per share (On weighted average outstanding common shares of 6,676,422 in 1995 and 6,616,785 in 1994) $.15 $.16 - -----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS Three months ended March 31, 1995 and 1994 (unaudited) 1995 1994 ------ ------ Cash flows from operating activities: Net earnings $1,298,803 $1,354,634 Adjustments to reconcile net earnings to net cash from operating activities: Amortization net, related to: Investment securities 354,946 480,983 Excess of cost over net assets acquired 398,108 398,108 Other 79,456 171,820 Depreciation 278,242 299,320 Provision for possible loan losses 51,000 - Gain on sale related to: Investment securities ( 22,518) - Loans sold to secondary market ( 16,547) ( 155,840) Change in: Securities available for sale - ( 15,791,810) Accrued interest receivable ( 543,186) ( 122,802) Other assets ( 691,812) ( 1,243,268) Accrued taxes & other expenses 1,750,652 ( 128,754) Other liabilities ( 97,450) 4,995 - ------------------------------------------------------------------------------------------------------- Net cash from operating activities 2,839,694 ( 14,732,614) - ------------------------------------------------------------------------------------------------------- Cash flows from investing activities: Purchase of securities held-to-maturity ( 910,701) ( 2,511,785) Purchase of securities available for sale (29,281,919) - Proceeds from: Maturities of securities held-to-maturity 2,262,303 2,095,731 Sales of securities available for sale 12,044,237 - Maturities of securities available for sale 9,075,000 - Net (increase) decrease in loans ( 1,618,275) 22,027,046 Purchase of bank premises & equipment ( 136,685) ( 104,345) - ------------------------------------------------------------------------------------------------------- Net cash from investing activities ( 8,566,040) 21,506,647 - ------------------------------------------------------------------------------------------------------- Cash flows from financing activities: Net increase (decrease) in: Deposits ( 2,318,540) ( 21,054,366) Securities sold under agreements to repurchase 1,089,390 636,147 Short term borrowings ( 4,385,000) 3,515,000 Reissuance of treasury stock 133,417 - Cash dividends paid ( 602,672) ( 604,264) - ------------------------------------------------------------------------------------------------------- Net cash from financing activities ( 6,083,405) ( 17,507,483) - ------------------------------------------------------------------------------------------------------- Decrease in cash and cash equivalents (11,809,751) ( 10,733,450) Cash and cash equivalents, beginning of year 45,870,359 56,355,534 - ------------------------------------------------------------------------------------------------------- Cash and cash equivalents, end of year $34,060,608 $45,622,084 - -------------------------------------------------------------------------------------------------------
EX-27 2
9 3-MOS DEC-31-1995 MAR-31-1995 33,752,596 308,012 0 0 218,484,899 39,167,317 39,473,000 285,861,308 3,257,973 620,067,777 521,374,863 21,800,000 20,891,094 0 32,631,135 0 14,250,000 9,120,685 620,067,777 6,443,026 3,887,736 102,981 10,433,743 4,535,318 5,099,105 5,334,638 51,000 22,518 5,053,072 1,838,109 1,298,803 0 0 1,298,803 .15 .15 4.21 3,005,114 238,905 92,571 0 3,688,386 569,725 88,312 3,257,973 2,206,973 0 1,051,000
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