-----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, A023W5SoyfoBiXbXmJCQ6641Yq9yFO6eCkQ7n26KrMFqwjEJp6lVF9HADl/y2ngE k38h771WJYJDQDkLRvcyfA== 0000004570-96-000009.txt : 19961118 0000004570-96-000009.hdr.sgml : 19961118 ACCESSION NUMBER: 0000004570-96-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961114 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN BANCORPORATION /WV/ CENTRAL INDEX KEY: 0000004570 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 310724349 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-05893 FILM NUMBER: 96663520 BUSINESS ADDRESS: STREET 1: 1025 MAIN ST STE 800 CITY: WHEELING STATE: WV ZIP: 26003 BUSINESS PHONE: 3042335006 MAIL ADDRESS: STREET 1: 1025 MAIN STREET STREET 2: SUITE 800 CITY: WHEELING STATE: WV ZIP: 26003 10-Q 1 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 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 period ended September 30, 1996 Commmission File Number: 0-5893 American Bancorporation (Exact name of registrant as specified in its charter) Ohio 31-0724349 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1025 Main Street, Suite 800, Wheeling, WV 26003 (Address of principal executive offices) (Zip Code) (304) 233-5006 (Registrant's telephone number, including area code) 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 Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. October 7, 1996: 1,564,837 shares of Common stock without par value Number of pages comprising this report 12 TABLE OF CONTENTS Part I FINANCIAL INFORMATION Item 1 Financial Statements Condensed Consolidated Balance Sheet 3 Condensed Consolidated Statement of Operations 4 Condensed Consolidated Statement of Cash Flows 5 Condensed Consolidated Statement of Changes in Stockholders' Equity 6 Notes to the Financial Statements 6 Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 7 Part II OTHER INFORMATION Item 1 Legal Proceedings None Item 2 Changes in Securities None Item 3 Defaults Upon Senior Securities None Item 4 Submission of Matters to a Vote of Security Holders None Item 5 Other Information None Item 6 Exhibits and Reports on Form 8-K None SIGNATURES 12 American Bancorporation and Subsidiaries CONSOLIDATED BALANCE SHEET September 30, December 31, 1996 1995 1995 ASSETS Cash and due from banks $ 12,118,420 $ 10,869,474 $ 10,887,718 Federal funds sold 5,791,120 5,477,297 11,469,000 Investment securities available for sale 130,440,071 4,593,631 68,014,533 Investment securities held to maturity - 67,529,717 - Loans, net of unearned income 258,157,544 244,937,335 250,372,023 Less allowance for loan losses 3,622,241 3,910,783 3,853,633 254,535,303 241,026,552 246,518,390 Premises and equipment - net 9,470,704 8,882,023 8,947,284 Accrued interest receivable 3,604,428 1,871,774 2,065,832 Excess of cost over net assets purchased 2,388,285 1,888,996 1,830,170 Other assets 6,055,488 5,367,578 4,261,848 TOTAL ASSETS $424,403,819 $347,507,042 $353,994,775 LIABILITIES Deposits Non-interest bearing $ 33,467,600 $ 31,569,143 $ 31,792,609 Interest bearing 281,190,194 262,478,166 260,871,998 TOTAL DEPOSITS 314,657,794 294,047,309 292,664,607 Short-term borrowings 74,218,301 19,530,423 27,522,666 Accrued interest payable 1,439,634 1,171,774 1,033,315 Other liabilities 4,188,965 4,145,930 3,714,641 Long-term debt 1,039,364 1,000,000 1,047,124 TOTAL LIABILITIES 395,544,058 319,895,436 325,982,353 STOCKHOLDERS' EQUITY Preferred stock - - - Common stock without par value, stated value $5, authorized 6,500,000 shares, issued and outstanding 1,564,837 7,824,185 7,824,185 7,824,185 Additional paid-in capital 10,301,982 10,301,982 10,301,982 Retained earnings 11,441,021 9,283,939 9,763,633 Unrealized gain (loss) on securities available for sale (707,427) 201,500 122,622 TOTAL STOCKHOLDERS' EQUITY 28,859,761 27,611,606 28,012,422 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $424,403,819 $347,507,042 $353,994,775 American Bancorporation and Subsidiaries CONSOLIDATED STATEMENT OF OPERATIONS Quarter Ended Nine Months Ended September 30, September 30, 1996 1995 1996 1995 INTEREST INCOME Loans $5,709,335 $5,549,697 $16,614,538 $16,312,237 Investment securities Taxable interest income 2,107,059 990,246 4,834,527 3,082,397 Non-taxable interest income 32,188 35,508 100,212 109,231 2,139,247 1,025,754 4,934,739 3,191,628 Other short-term investments 41,070 84,367 319,664 259,941 Total interest income 7,889,652 6,659,818 21,868,941 19,763,806 INTEREST EXPENSE Deposits 2,760,788 2,505,715 8,095,234 7,220,805 Borrowed funds 933,629 349,020 1,873,140 1,055,514 Total interest expense 3,694,417 2,854,735 9,968,374 8,276,319 NET INTEREST INCOME 4,195,235 3,805,083 11,900,567 11,487,487 PROVISION FOR LOAN LOSSES - 15,000 - 105,000 Net interest income after provision for loan losses 4,195,235 3,790,083 11,900,567 11,382,487 OTHER INCOME Service charges on deposit accounts 224,342 203,441 655,865 535,877 Securities losses (3,794) - (3,794) (106) Insurance commissions 28,084 32,281 93,927 95,570 Other income 434,132 205,223 1,074,979 610,325 Total other income 682,764 440,945 1,820,977 1,241,666 OTHER EXPENSE Salaries and employee benefits 1,390,384 1,300,697 4,101,993 4,004,568 Occupancy and equipment expense 553,244 536,805 1,665,981 1,577,467 Other expenses 1,449,987 1,087,225 3,692,882 3,477,276 Total other expense 3,393,615 2,924,727 9,460,856 9,059,311 INCOME BEFORE INCOME TAXES 1,484,384 1,306,301 4,260,688 3,564,842 PROVISION FOR INCOME TAXES 551,901 478,412 1,566,156 1,305,336 NET INCOME $ 932,483 $ 827,889 $ 2,694,532 $ 2,259,506 Average Shares Outstanding 1,564,837 1,564,837 1,564,837 1,564,837 NET INCOME PER SHARE $ 0.60 $ 0.53 $ 1.72 $ 1.44 American Bancorporation and Subsidiaries CONSOLIDATED STATEMENT OF CASH FLOWS Nine months ended September 30, 1996 1995 Operating Activities: Net Income $ 2,694,532 $ 2,259,506 Charges to operations (using) not using cash in the current period (885,416) 405,672 Net cash provided by operating activities 1,809,116 2,665,178 Investing Activities: Purchase of branch assets, net of cash acquired 14,171,001 - Investment securities held to maturity: Proceeds from maturities and repayments - 17,143,484 Proceeds from sales - - Purchases - (6,433,406) Investment securities available for sale: Proceeds from maturities and repayments 16,846,616 995,400 Proceeds from sales 4,053,743 - Purchases (84,908,587) (2,163,100) Net increase in loans (7,767,131) (16,002,802) Purchase of premises and equipment (1,244,261) (660,218) Net cash used by investing activities (58,848,619) (7,120,642) Financing Activities: Net increase in non-interest bearing demand deposits 698,028 360,230 Net decrease in interest bearing demand and savings deposits (3,619,623) (13,749,493) Net increase in time deposits 9,764,952 15,095,915 Net increase in short-term borrowings 46,695,635 6,132,242 Principal repayment of long-term debt (7,761) (1,000,000) Cash dividends paid (938,906) (665,055) Net cash provided by financing activities 52,592,325 6,173,839 Net Increase (Decrease) in Cash and Cash Equivalents (4,447,178) 1,718,375 Cash and Cash Equivalents Beginning Balance $22,356,718 $14,628,396 Cash and Cash Equivalents Ending Balance $17,909,540 $16,346,771 American Bancorporation and Subsidiaries CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY Nine months ended September 30, 1996 and 1995 1996 1995 Balance at January 1, $28,012,422 $26,193,019 Net Income 2,694,532 2,259,506 Dividends declared ($0.65 per share 1996, $0.50 per share 1995) (1,017,144) (782,419) Unrealized loss on securities available for sale (830,049) (58,500) Balance at September 30, $28,859,761 $27,611,606 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The unaudited interim condensed consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary to a fair presentation of the financial position and results of operations. All adjustments are of a normal recurring nature. The notes to the financial statements contained in the 1995 Annual Report to Stockholders should be read in conjunction with these statements. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS SUMMARY American Bancorporation (the "Company") recognized net income of $2,695,000 ($1.72 per share) for the nine months ended September 30, 1996, compared to net income of $2,260,000 ($1.44 per share) for the nine months ended September 30, 1995. The Company's assets totalled $424,404,000 at September 30, 1996, compared to $347,507,000 at September 30, 1995. As the result of Federal legislation enacted to recapitalize the Savings Association Insurance Fund, the Company took a $245,000 charge against earnings during the third quarter of 1996. The one-time assessment applies to approximately $46 million in thrift deposits the Company acquired in recent years. The following is a discussion of significant factors influencing operating performance and change in financial position during the interim periods presented. The discussion should be read in connection with the 1995 Annual Report and the financial statements appearing elsewhere herein. RESULTS OF OPERATIONS NINE MONTH COMPARISON Net Income. Net income for the nine months ended September 30, 1996 amounted to $2,695,000, compared to $2,260,000 for the nine months ended September 30, 1995. The increase was the result of increases in net interest income and other income which were partially offset by an increase in other expenses. Net Interest Income. Net interest income before provision for loan losses for the nine months ended September 30, 1996 amounted to $11,901,000 an increase of $413,000 or 3.6 %, as compared to the nine months ended September 30, 1995. The increase resulted primarily from a $41,243,000 or 12.8% increase in average interest earning assets, which was partially offset by a 38 basis point decrease in the Company's margin. Interest Income. Total interest income for the nine months ended September 30, 1996 amounted to $21,869,000, an increase of $2,105,000 or 10.7%, as compared to the same period in 1995. The increase resulted primarily from a $41,243,000 increase in the average volume of earning assets which was partially offset by a 15 basis point decrease in the average yield on earning assets. Average loans outstanding increased $8,469,000 or 3.5%. Average commercial loans increased $11,669,000 or 19.9% while average consumer installment loans decreased $3,011,000 or 5.4% and average real estate loans decreased $189,000 or 0.1%. The average yield on loans decreased from 9.02% in 1995 to 8.87% in 1996. Average investment securities and other short-term investments outstanding increased $32,773,000 or 40.1%, while the average yield increased from 5.64% in 1995 to 6.12% in 1996. Interest Expense. Total interest expense for the nine months ended September 30, 1996 amounted to $9,968,000, an increase of $1,692,000 or 20.4% as compared to the nine months ended September 30, 1995. The increase resulted primarily from a $40,603,000 or 14.3% increase in the average volume of interest bearing liabilities and a 21 basis point increase in interest rates paid on such liabilities. Average NOW, money market and savings accounts decreased $2,637,000. Average time deposits increased $17,720,000. Average noninterest bearing accounts increased $391,000 and represented 10.4% of average total deposits in 1996. Average borrowings increased $25,588,000. Provision for Loan Losses. There was no loan loss provision for the nine months ended September 30, 1996, compared to $105,000 for the same period in 1995. Other Income. Other income amounted to $1,821,000 for the nine months ended September 30, 1996, an increase of $579,000 or 46.7%, as compared to the same period in 1995. Other Expense. Total other expense for the nine months ended September 30, 1996 amounted to $9,461,000, an increase of $402,000 or 4.4%, as compared to the same period in 1995. Salaries and employee benefits increased $97,000 or 2.4%. Occupancy and equipment expense increased $89,000 or 5.6%. Other (miscellaneous) expenses increased $216,000 or 6.2%, including a one-time charge of $245,000 as previously discussed (see "Summary"). Provision for Income Taxes. The provision for income taxes for the nine months ended September 30, 1996 was $1,566,000, an increase of $261,000 or 20.0%, as compared to the same period in 1995. The increase was due to the increase in the Company's pre-tax income. RESULTS OF OPERATIONS QUARTER COMPARISON Net Income. Net income for the quarter ended September 30, 1996 amounted to $932,000, compared to net income of $828,000 for the quarter ended September 30, 1995. The increase was the result of increases in net interest income and other income which were partially offset by an increase in other expenses. Net Interest Income. Net interest income before provision for loan losses for the quarter ended September 30, 1996 amounted to $4,195,000, an increase of $390,000 or 10.3%, as compared to the quarter ended September 30, 1995. The increase resulted primarily from a $66,401,000 or 20.6% increase in average interest earning assets, which was partially offset by a 41 basis point decrease in the Company's margin. Interest Income. Total interest income for the quarter ended September 30, 1996 amounted to $7,890,000, an increase of $1,230,000 or 18.5%, as compared to the same period in 1995. The increase resulted primarily from a $66,401,000 or 20.6% increase in the average volume of earning assets which was partially offset by a 15 basis point decrease in the average yield on earning assets. Average loans outstanding increased $10,729,000 or 4.4%. Average commercial loans increased $13,845,000 or 23.3 %, and average real estate loans increased $2,291,000 or 1.8% while average installment loans decreased $5,407,000 or 9.4%. The average yield on loans decreased from 9.07% in 1995 to 8.94% in 1996. Average investment securities and other short-term investments outstanding increased $55,671,000 or 71.5% while the average yield increased from 5.70% in 1995 to 6.53% in 1996. Interest Expense. Total interest expense for the quarter ended September 30, 1996 amounted to $3,694,000 an increase of $840,000 or 29.4%, as compared to the same period in 1995. The increase resulted primarily from a $66,767,000 or 23.6% increase in the average volume of interest bearing liabilities and a 19 basis point increase in interest rates paid on such liabilities. Provision for Loan Losses. There was no loan loss provision for the quarter ended September 30, 1996, compared to $15,000 for the same period in 1995. Other Income. Other income amounted to $683,000 for the quarter ended September 30, 1996, compared to $441,000 for the same period in 1995. Other Expense. Total other expense for the quarter ended September 30, 1996 amounted to $3,394,000, an increase of $469,000 or 16.0%, as compared to the same period in 1995. Salaries and employee benefits increased $90,000 or 6.9%. Occupancy and equipment expense increased $16,000 or 3.1%. Other (miscellaneous) expenses increased $363,000 or 33.4%, including a one-time charge of $245,000 as previously discussed (see "Summary"). Provision for Income Taxes. The provision for income taxes for the quarter ended September 30, 1996 was $552,000, compared to $478,000 for the same period in 1995. The increase was due to the increase in the Company's pre-tax income. ASSET QUALITY Nonperforming loans totalled $1,854,000 or 0.7% of total loans at September 30, 1996, compared to $2,065,000 or 0.8% at December 31, 1995. Nonperforming loans at September 30, 1996 consisted of nonaccrual loans totalling $493,000, 90 day delinquent loans of $672,000, and restructured loans aggregating $689,000. Other real estate held totalled $577,000 at September 30, 1996, compared to $575,000 at December 31, 1995. CAPITAL RESOURCES Stockholders' equity totalled $28,860,000 at September 30, 1996. The Company's risk-based capital ratio was 12.1%, of which 10.9% constituted common stockholder equity, while the risk-based capital ratio for the Company's bank subsidiary, Wheeling National Bank, was 11.8%, with common stockholders' equity of 10.6%. At September 30, 1996 the Company's leverage capital ratio was 6.4%, while the leverage ratio for Wheeling National Bank was 6.2%.
Three months ended September 30, Nine months ended September 30, 1996 1995 1996 1995 Average Yield/ Average Yield/ Average Yield/ Average Yield/ Balance Rate Balance Rate Balance Rate Balance Rate INTEREST EARNING ASSETS (000's) (000's) (000's) (000's) Loans Commercial $ 73,253 9.08% $ 59,408 9.78% $ 70,239 9.20% $ 58,569 9.95% Real estate 129,856 8.35 127,565 8.34 126,225 8.28 126,414 8.18 Installment- net 52,307 8.94 57,714 9.26 53,254 8.97 56,265 9.19 Total loans 255,416 8.94 244,687 9.07 249,718 8.87 241,248 9.02 Investment securities Taxable 129,000 6.53 71,719 5.52 107,298 6.01 75,506 5.44 Tax-exempt 1,882 6.84 1,912 7.43 2,011 6.64 1,977 7.37 Total investment securities 130,882 6.54 73,631 5.57 109,309 6.02 77,483 5.49 Other short-term investments 2,632 6.24 4,212 8.01 5,112 8.34 4,165 8.32 Total interest earning assets $388,930 8.11 $322,530 8.26 $364,139 8.01 $322,896 8.16 INTEREST BEARING LIABILITIES Deposits NOW, Savings and MMDA $129,811 2.66% $128,479 2.64% $129,686 2.63% $132,323 2.67% Time 149,688 5.07 132,622 5.00 146,757 5.03 129,037 4.72 Total deposits 279,499 3.95 261,101 3.84 276,443 3.90 261,360 3.68 Short-term borrowings 69,338 5.25 21,009 6.25 47,288 5.10 21,701 6.02 Long-term debt 1,040 8.88 1,000 8.41 1,043 8.42 1,111 9.14 Total interest bearing liabilities $349,877 4.22 $283,110 4.03 $324,774 4.09 $284,172 3.88 MARGIN ANALYSIS (as a % of earning assets) Interest income 8.11% 8.26% 8.01% 8.16% Interest expense 3.80 3.54 3.65 3.42 Net interest income 4.31% 4.72% 4.36% 4.74% Averages stated are month end average balances. Installment loans are stated net of unearned income. Average loans include nonaccrual loans. Yields do not reflect tax equivalent adjustments.
Part II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K B. Reports on Form 8-K: Date Item Description None 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. AMERICAN BANCORPORATION (Registrant) Date November 14, 1996 /S/ JEREMY C. MCCAMIC Jeremy C. McCamic Chairman and Chief Executive Officer Date November 14, 1996 /S/ BRENT E. RICHMOND Brent E. Richmond Chief Financial and Accounting Officer EX-27 2 ARTICLE 9 FDS FOR 10-Q
9 1 DEC-31-1996 9-MOS JAN-01-1996 SEP-30-1996 12,118,420 0 5,791,120 0 130,440,071 0 130,440,071 258,157,544 3,622,241 424,403,819 314,657,794 74,218,301 5,628,599 1,039,364 7,824,185 0 0 21,035,576 424,403,819 16,614,538 4,934,739 319,664 21,868,941 8,095,234 9,968,374 11,900,567 0 (3,794) 9,460,856 4,260,688 2,694,532 0 0 2,694,532 1.72 1.72 4.36 493,000 672,000 689,000 0 0 0 0 0 0 0 0 -----END PRIVACY-ENHANCED MESSAGE-----