-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OSL6+OjKbNd+BDmot2kuCneNH02+ICUNAyfHfa92r76zqKGeq7FFoKjCu7vAh3yx kXRrSP7C7PqjkqthFFix2g== 0000036340-95-000013.txt : 19951017 0000036340-95-000013.hdr.sgml : 19951017 ACCESSION NUMBER: 0000036340-95-000013 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951016 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: 95580826 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 September 30, 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 September 30, 1995: 6,526,227 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 submitted herewith as an exhibit and are incorporated herein by reference: 1. Consolidated Balance Sheets, September 30, 1995, September 30, 1994 and December 31, 1994. 2. Consolidated Statements of Earnings, quarters ended September 30, 1995 and 1994 and nine months ended September 30, 1995 and 1994. 3. Consolidated Statements of Cash Flows, nine months ended September 30, 1995 and 1994. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Premier Financial Services, Inc.'s earnings for the third quarter, 1995 totaled $1,953,000 or $.25 per share versus $1,615,000, or $.20 per share for the same quarter in 1994. Year to date earnings increased to $4,626,000 as compared to $4,360,000 in 1994. Return on average assets and common equity was .98% and 11.68%, respectively, for the nine months ended September 30, 1995, as compared to .97% and 11.43% for the same period in 1994. Year-to-date net interest income totaled $16.6 million in 1995, as compared to $16.1 million in 1994. Net interest income for the third quarter of 1995 increased by approximately $230,000 and $131,000 as compared to the second quarter of 1995 and the third quarter of 1994. The slight period- to-period increases continue to be primarily a result of earning asset volume as opposed to rate or net interest margin improvement. Average earning assets totaled $560.1 million at September 30, 1995, an increase of $6.5 million from $553.6 million reported at June 30, 1995 and an increase of $28.7 million from $531.4 million reported one year ago. Our net interest margin at 4.19% as of September 30, 1995 remained unchanged from June 30, 1995 and reflects a 12 basis point decrease from September 30, 1994. Provision for possible loan losses in the third quarter of 1995 totaled $334,000, decreasing earnings per share by $.03 as compared to $100,000 ($.01 per share) in 1994. The increased provision is primarily a result of loan portfolio growth. Since year end 1994 net loans have grown by more than $32 million. Management believes that the current level of the allowance for loan losses is adequate and remains consistent with the composition of the portfolio and recent credit quality history. Total noninterest income, excluding gains on investment securities, increased by approximately $245,000 in the third quarter of 1995 as compared to the same period in 1994. In addition to the increase in "core noninterest income" (i.,e., service charges on deposits, trust fees and -2- other income) net investment security gains for the third quarter of 1995 totaled $300,000, or $.03 per share, as compared to $26,000 in the third quarter of 1994. Total noninterest expenses in the third quarter of 1995 decreased by approximately $90,000 as compared to 1994. A decrease of $309,000, or $.03 per share, in federal deposit insurance premiums was partially offset by increases in salary and benefits, occupancy, furniture and fixtures, and legal/professional fees. 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 September 30, 1995 as follows: 1. Consolidated Balance Sheets, September 30, 1995, September 30, 1994 and December 31, 1994. 2. Consolidated Statements of Earnings, quarters ended September 30, 1995 and 1994 and nine months ended September 30, 1995 and 1994. 3. Consolidated Statements of Cash Flows, nine months ended September 30, 1995 and 1994. B. Exhibits as follows: 27. Financial Data Schedule, nine months ended September 30, 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 September 30, 1995. 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: David L. Murray, Executive Vice President & Chief Financial Officer October 16, 1995 (Date) -3-
Consolidated Balance Sheets - ------------------------------------------------------------------------------------------------------------------------------ September 30, September 30, December 31, 1995 1994 1994 - ------------------------------------------------------------------------------------------------------------------------------ Assets Cash & non-interest bearing deposits $27,713,803 $26,060,683 $31,186,418 Interest bearing deposits 208,121 8,490,214 14,683,941 Federal funds sold - 1,500,000 - - ------------------------------------------------------------------------------------------------------------------------------ Cash and cash equivalents 27,921,924 36,050,897 45,870,359 - ------------------------------------------------------------------------------------------------------------------------------ Investments held to maturity (approximate market value): September 30, 1995 - $43,752,000; September 30, 1994 - $42,572,000; December 31, 1994 - $40,516,000; 43,074,776 42,163,626 40,513,480 Securities available for sale 216,188,458 201,607,134 207,964,644 Trading account 992,813 - - Loans 317,614,773 277,054,199 284,799,933 Less: Unearned discount ( 291,421) ( 374,989) ( 343,902) Allowance for possible loan losses ( 3,888,324) ( 3,687,517) ( 3,688,386) - ------------------------------------------------------------------------------------------------------------------------------ Net loans 313,435,028 272,991,693 280,767,645 - ------------------------------------------------------------------------------------------------------------------------------ Bank premises & equipment 14,067,423 14,394,428 14,254,748 Excess cost over fair value of net assets acquired 20,406,257 21,998,691 21,600,583 Accrued interest receivable 8,007,130 6,463,862 5,835,006 Other assets 4,060,803 3,483,738 3,697,272 - ------------------------------------------------------------------------------------------------------------------------------ Total assets $648,154,612 $599,154,069 $620,503,737 - ------------------------------------------------------------------------------------------------------------------------------ Liabilities & stockholders' equity Non-interest bearing deposits $73,687,721 $92,161,850 $86,018,604 Interest bearing deposits 459,497,665 414,473,622 437,674,799 - ------------------------------------------------------------------------------------------------------------------------------ Deposits 533,185,386 506,635,472 523,693,403 - ------------------------------------------------------------------------------------------------------------------------------ Short-term borrowings 32,200,000 19,295,000 26,185,000 Securities sold under agreements to repurchase 18,107,448 17,227,174 16,085,872 Accrued taxes & other expenses 4,539,346 2,482,959 1,759,512 Other liabilities 336,368 244,073 303,118 - ------------------------------------------------------------------------------------------------------------------------------ Liabilities $588,368,548 $545,884,678 $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 7,250,000 7,250,000 7,250,000 Series C perpetual, $1,000 stated value, 7.00%, 1,950 shares authorized, no shares issued and outstanding - - - Series D perpetual, $1,000 stated value, 7.50%, 3,300 shares authorized, 2,000 shares issued and outstanding 2,000,000 2,000,000 2,000,000 Common stock- $5.00 par value September 30, September 30, December 31, No. of Shares 1995 1994 1994 Authorized 15,000,000 15,000,000 15,000,000 Issued 6,526,227 6,526,227 6,526,227 Outstanding 6,526,227 6,496,959 6,504,876 32,631,135 32,631,135 32,631,135 Surplus - - - Retained earnings 12,964,991 9,379,189 10,149,027 Unrealized loss on securities available for sale, net of tax ( 60,062) ( 2,782,155) ( 4,403,568) Less: Treasury stock, (29,268 shares at cost, September 30, 1994, and 21,351 shares at cost, December 31, 1994) - ( 208,778) ( 149,762) - ------------------------------------------------------------------------------------------------------------------------------ Stockholders' equity $59,786,064 $53,269,391 $52,476,832 - ------------------------------------------------------------------------------------------------------------------------------ Total liabilities & stockholders' equity $648,154,612 $599,154,069 $620,503,737 - ------------------------------------------------------------------------------------------------------------------------------
Consolidated Statements of Earnings - ----------------------------------------------------------------------------------------------------------------------------------- Nine Months Ended Three Months Ended September 30, September 30, 1995 1994 1995 1994 Interest income Interest & fees on loans $20,510,628 $17,620,563 $7,208,780 $5,794,600 Interest & dividends on investment securities: Taxable 10,588,245 7,095,935 3,630,257 2,877,363 Exempt from federal income tax 1,697,520 1,714,937 584,631 619,049 Other interest income 208,081 452,912 56,846 135,054 - ----------------------------------------------------------------------------------------------------------------------------------- Interest income 33,004,474 26,884,347 11,480,514 9,426,066 - ----------------------------------------------------------------------------------------------------------------------------------- Interest expense Interest on deposits 14,662,365 9,647,262 5,148,785 3,403,224 Interest on short-term borrowings 1,771,262 1,125,152 598,353 421,113 - ----------------------------------------------------------------------------------------------------------------------------------- Interest expense 16,433,627 10,772,414 5,747,138 3,824,337 - ----------------------------------------------------------------------------------------------------------------------------------- Net interest income 16,570,847 16,111,933 5,733,376 5,601,729 Provision for possible loan losses 436,000 125,000 334,000 100,000 - ----------------------------------------------------------------------------------------------------------------------------------- Net interest income after provision for possible loan losses 16,134,847 15,986,933 5,399,376 5,501,729 - ----------------------------------------------------------------------------------------------------------------------------------- Other income Trust fees 1,932,910 1,792,374 646,934 577,458 Service charges on deposits 1,492,086 1,392,951 490,525 455,483 Net gains on loans sold to secondary market 138,277 235,824 78,337 32,013 Investment securities gains, net 360,729 33,284 300,456 26,288 Other operating income 1,468,629 1,682,291 613,626 519,603 - ----------------------------------------------------------------------------------------------------------------------------------- Other income 5,392,631 5,136,724 2,129,878 1,610,845 - ----------------------------------------------------------------------------------------------------------------------------------- Other expenses Salaries 6,120,699 5,778,809 2,076,910 1,956,218 Pension, profit sharing, & other employee benefits 921,251 1,015,025 261,171 328,139 Net occupancy of bank premises 1,602,978 1,506,809 551,291 499,748 Furniture & equipment 821,645 808,529 262,191 252,142 Federal deposit insurance premiums 533,850 880,099 ( 27,698) 281,440 Amortization of excess cost over fair value of net assets acquired 1,194,325 1,194,325 398,109 398,109 Other 3,724,359 3,670,913 1,188,152 1,084,246 - ----------------------------------------------------------------------------------------------------------------------------------- Other expense 14,919,107 14,854,509 4,710,126 4,800,042 - ----------------------------------------------------------------------------------------------------------------------------------- Earnings before income taxes 6,608,371 6,269,148 2,819,128 2,312,532 Applicable income taxes 1,982,214 1,908,828 866,197 697,635 - ----------------------------------------------------------------------------------------------------------------------------------- Net earnings $4,626,157 $4,360,320 $1,952,931 $1,614,897 =================================================================================================================================== Earnings per share: Average weighted shares outstanding 6,688,306 6,633,096 6,688,037 6,636,783 Net earnings $.57 $.52 $.25 $.20 - -----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS Nine months ended September 30, 1995 and 1994 1995 1994 ------ ------ Cash flows from operating activities: Net earnings $4,626,157 $4,360,320 Adjustments to reconcile net earnings to net cash from operating activities: Amortization net, related to: Investment securities 984,950 1,443,407 Excess of cost over net assets acquired 1,194,325 1,194,325 Other 264,320 173,858 Depreciation 832,623 862,072 Provision for possible loan losses 436,000 125,000 Gain on sale related to: Investment securities ( 360,729) ( 33,284) Loans sold to secondary market ( 138,277) ( 235,824) Change in: Securities available for sale - ( 61,473,430) Trading account ( 992,813) - Accrued interest receivable ( 2,172,124) ( 1,393,530) Other assets ( 365,304) ( 97,803) Accrued taxes & other expenses 2,779,834 ( 1,184,336) Other liabilities ( 2,204,314) ( 335,202) - -------------------------------------------------------------------------------------------------------------------- Net cash from operating activities 4,884,648 ( 56,594,427) - -------------------------------------------------------------------------------------------------------------------- Cash flows from investing activities: Purchase of securities held-to-maturity ( 6,821,689) ( 9,439,020) Purchase of securities available for sale (125,229,574) - Proceeds from: Maturities of securities held-to-maturity 4,271,117 3,435,722 Sales of securities available for sale 97,909,942 - Maturities of securities available for sale 25,041,943 - Net (increase) decrease in loans ( 33,188,726) 54,004,086 Purchase of bank premises & equipment ( 685,998) ( 143,231) - -------------------------------------------------------------------------------------------------------------------- Net cash from investing activities ( 38,702,985) 47,857,557 - -------------------------------------------------------------------------------------------------------------------- Cash flows from financing activities: Net increase (decrease) in: Deposits 9,491,983 ( 10,346,971) Securities sold under agreements to repurchase 2,021,576 ( 4,380,984) Short term borrowings 6,015,000 6,885,000 Reissuance of treasury stock 149,762 - Exercised stock options - 19,000 Redemption of Series C preferred stock - ( 1,950,000) Cash dividends paid ( 1,808,419) ( 1,793,812) - -------------------------------------------------------------------------------------------------------------------- Net cash from financing activities 15,869,902 ( 11,567,767) - -------------------------------------------------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents ( 17,948,435) ( 20,304,637) Cash and cash equivalents, beginning of year 45,870,359 56,355,534 - -------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents, nine months ended September 30, 1995 and 1994 $27,921,924 $36,050,897 - --------------------------------------------------------------------------------------------------------------------
EX-27 2
9 9-MOS DEC-31-1995 SEP-30-1995 27,713,803 208,121 0 992,813 216,188,458 43,074,776 43,752,000 317,614,773 ( 3,888,324) 648,154,612 533,185,386 32,200,000 22,983,162 0 32,631,135 0 14,250,000 12,904,929 648,154,612 20,510,628 12,285,765 208,081 33,004,474 14,662,365 16,433,627 16,570,847 436,000 360,729 14,919,107 6,608,371 4,626,157 0 0 4,626,157 .57 .57 4.19 2,957,122 1,092,799 83,107 0 3,688,386 977,951 741,889 3,888,324 2,837,324 0 1,051,000
-----END PRIVACY-ENHANCED MESSAGE-----