-----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, R2x87P6uEgtsfqyZ3EFVyARi+LBI+GnxVy29XM+wKRX8iaA+54EEhRh4iftnAHUu MInODQct6Z577LCmci/VAQ== 0000004570-99-000006.txt : 19990817 0000004570-99-000006.hdr.sgml : 19990817 ACCESSION NUMBER: 0000004570-99-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990816 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: SEC FILE NUMBER: 000-05893 FILM NUMBER: 99691377 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 10Q 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 June 30, 1999 ------------------------------------------------------- Commission 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. July 2, 1999: 3,129,674 shares of Common stock without par value Number of pages comprising this report. . . . . . 13 AMERICAN BANCORPORATION FORM 10-Q Quarterly Report June 30, 1999 TABLE OF CONTENTS Part I FINANCIAL INFORMATION Item 1 Financial Statements Condensed Consolidated Balance Sheet................... 3 Condensed Consolidated Statement of Income............. 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 Item 3 Quantitative and Qualitative Disclosures about Market Risk... 12 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..................... 12 Item 5 Other Information........................................ None Item 6 Exhibits and Reports on Form 8-K......................... None SIGNATURES 13 2 AMERICAN BANCORPORATION FORM 10-Q Quarterly Report June 30, 1999 American Bancorporation and Subsidiaries
CONSOLIDATED BALANCE SHEET June 30, December 31, 1999 1998 1998 ------------- ------------- ------------- ASSETS Cash and due from banks ................................ $ 10,321,225 $ 13,568,912 $ 12,316,176 Interest bearing deposits in other banks ............... 257,794 145,488 -- Federal funds sold ..................................... 4,877,025 16,050,025 17,747,025 Investment securities available for sale ............... 306,669,719 214,865,641 263,827,239 Loans, net of unearned income .......................... 332,826,797 289,814,672 300,621,884 Less allowance for loan losses ....................... 3,068,302 3,179,566 3,042,269 ------------- ------------- ------------- 329,758,495 286,635,106 297,579,615 Premises and equipment - net ........................... 9,641,827 9,854,463 9,735,582 Accrued interest receivable ............................ 4,291,154 2,902,199 3,393,337 Excess of cost over net assets purchased ............... 1,494,562 1,801,202 1,633,464 Other assets ........................................... 10,658,433 5,354,541 5,173,024 ------------- ------------- ------------- TOTAL ASSETS ...................................... $ 677,970,234 $ 551,177,577 $ 611,405,462 ============= ============= ============= LIABILITIES Deposits Non-interest bearing ................................ $ 39,336,873 $ 35,818,702 $ 39,497,617 Interest bearing .................................... 393,944,304 376,773,483 391,742,578 ------------- ------------- ------------- TOTAL DEPOSITS .................................. 433,281,177 412,592,185 431,240,195 Borrowed funds ........................................ 193,281,312 84,096,093 123,891,183 Accrued interest payable .............................. 2,426,190 2,272,457 2,306,854 Other liabilities ..................................... 4,217,142 4,391,546 4,858,495 Long-term debt ........................................ 4,010 18,179 11,242 Company obligated mandatorily redeemable trust preferred securities of subsidiary trust holding solely junior subordinated debentures of the Company ......... 12,650,000 12,650,000 12,650,000 ------------- ------------- ------------- TOTAL LIABILITIES .................................. 645,859,831 516,020,460 574,957,969 STOCKHOLDERS' EQUITY Preferred stock ...................................... -- -- -- Common stock without par value, stated value $2.50, authorized 6,500,000 shares, issued and outstanding 3,129,674 ............................... 7,824,185 7,824,185 7,824,185 Additional paid-in capital ........................... 10,301,982 10,301,982 10,301,982 Retained earnings .................................... 20,123,474 16,676,372 18,430,141 Accumulated other comprehensive income (loss), net of income tax ........................ (6,139,238) 354,578 (108,815) ------------- ------------- ------------- TOTAL STOCKHOLDERS' EQUITY ......................... 32,110,403 35,157,117 36,447,493 ------------- ------------- ------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ..................... $ 677,970,234 $ 551,177,577 $ 611,405,462 ============= ============= =============
3 AMERICAN BANCORPORATION FORM 10-Q Quarterly Report June 30, 1999 American Bancorporation and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME Quarter ended June 30, Six Months ended June 30, 1999 1998 1999 1998 INTEREST INCOME Loans............................$ 6,864,668 $ 6,377,452 $13,350,683 $12,683,363 Investment securities Taxable interest income......... 3,933,458 3,324,760 7,689,465 6,242,487 Non-taxable interest income.... 702,216 23,243 1,248,095 46,014 ------------ ----------- ---------- ----------- 4,635,674 3,348,003 8,937,560 6,288,501 Short-term investments.......... 115,119 248,639 238,492 330,084 ------------ ---------- ----------- ----------- Total interest income........ 11,615,461 9,974,094 22,526,735 19,301,948 INTEREST EXPENSE Deposits....................... 4,336,205 4,321,546 8,781,731 8,164,638 Borrowed funds................. 2,625,851 1,442,842 4,787,877 2,664,278 ------------ ---------- ----------- ------------ Total interest expense........ 6,962,056 5,764,388 13,569,608 10,828,916 ------------ ---------- ----------- ------------ NET INTEREST INCOME......... 4,653,405 4,209,706 8,957,127 8,473,032 PROVISION FOR LOAN LOSSES......... 75,000 60,000 150,000 120,000 ------------ ---------- ----------- ------------ Net interest income after provision for loan losses.... 4,578,405 4,149,706 8,807,127 8,353,032 OTHER INCOME Service charges on deposit accounts............. 244,179 172,922 416,444 339,902 Securities gains................ 75,155 330,809 342,967 486,809 Net gains on sale of loans...... 440,763 474,064 846,529 933,119 Insurance commissions........... 23,906 23,282 42,950 43,430 Other income.................... 173,926 193,403 308,679 387,634 ---------- ---------- ---------- ---------- Total other income............ 957,929 1,194,480 1,957,569 2,190,894 OTHER EXPENSE Salaries and employee benefits.. 1,698,839 1,594,150 3,471,633 3,189,265 Occupancy and equipment expense. 647,939 617,496 1,281,631 1,198,451 Other expenses.................. 1,453,337 1,374,983 2,689,201 2,590,689 ---------- ---------- ---------- ---------- Total other expense........... 3,800,115 3,586,629 7,442,465 6,978,405 ---------- ---------- ---------- ---------- INCOME BEFORE INCOME TAXES....... 1,736,219 1,757,557 3,322,231 3,565,521 PROVISION FOR INCOME TAXES....... 388,604 470,556 689,996 1,025,013 ---------- ---------- ----------- ---------- NET INCOME....................... $ 1,347,615 $ 1,287,001 $ 2,632,235 $ 2,540,508 =========== =========== ============ ============ Average Shares Outstanding...... 3,129,674 3,129,674 3,129,674 3,129,674 BASIC EARNINGS PER SHARE......$ 0.43 $ 0.41 $ 0.84 $ 0.81
4 AMERICAN BANCORPORATION FORM 10-Q Quarterly Report June 30, 1999 American Bancorporation and Subsidiaries
CONSOLIDATED STATEMENT OF CASH FLOWS Six months ended June 30, 1999 1998 Operating Activities: Net Income ................................................................ $ 2,632,235 $ 2,540,508 Adjustments to reconcile net income to net cash from operating activities: Depreciation .............................................................. 436,015 418,804 Amortization of intangibles ............................................... 138,902 167,738 Net amortization of premium on investment securities ...................... 626,325 376,701 Provision for loan losses ................................................. 150,000 120,000 Net gain on sale of investment securities ................................. (342,967) (486,809) Net gain on sale of loans ................................................. (846,529) (933,119) Net increase in accrued interest receivable ............................... (897,817) (188,959) Net increase in accrued interest payable .................................. 119,336 489,789 Real estate mortgage loans originated for sale ............................ (30,093,453) (32,392,348) Proceeds from sale of real estate mortgage loans .......................... 29,920,693 31,531,550 Net increase in other assets .............................................. (1,219,901) (575,478) Net increase (decrease) in other liabilities .............................. (641,353) 169,509 Net decrease from other operating activities .............................. (349,226) (184,441) ------------- ------------- Net cash provided (used) by operating activities .................... (367,740) 1,053,445 Investing Activities: Investment securities available for sale: Proceeds from maturities and repayments ............................... 51,687,759 70,163,289 Proceeds from sales ................................................... 37,727,462 5,886,214 Purchases ............................................................. (142,487,764) (122,098,505) Change in loans, net of real estate mortgage loans originated for sale ... (31,309,591) (1,554,477) Purchase of premises and equipment ....................................... (342,260) (203,890) Proceeds from sale of premises and equipment ............................. -- 1,000 ------------- ------------- Net cash used by investing activities ................................ (84,724,394) (47,806,369) Financing Activities: Net increase (decrease) in non-interest bearing demand deposits ............................................... (160,744) 2,305,990 Net increase in interest bearing demand and savings deposits ............. 3,385,938 201,300 Net increase (decrease) in time deposits ................................. (1,184,212) 54,350,563 Net increase (decrease) in borrowed funds ................................ 69,390,129 (3,478,059) Issuance (principal repayment) of long-term debt ......................... (7,232) 10,477,470 Cash dividends paid ...................................................... (938,902) (782,419) ------------- ------------- Net cash provided by financing activities ........................... 70,484,975 63,074,845 ------------- ------------- Net Increase (Decrease) in Cash and Cash Equivalents ...................... (14,607,157) 16,321,921 Cash and Cash Equivalents Beginning Balance ................................. 30,063,201 13,442,504 ------------- ------------- Cash and Cash Equivalents Ending Balance .................................... $ 15,456,044 $ 29,764,425 ============= =============
5 AMERICAN BANCORPORATION FORM 10-Q Quarterly Report June 30, 1999 American Bancorporation and Subsidiaries CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY Six months ended June 30, 1999 and 1998 1999 1998 -------- --------- Balance at January 1, .......................... $ 36,447,493 $ 33,693,846 Comprehensive results: Net Income .................................. 2,632,235 2,540,508 Other comprehensive income (loss), net of tax (5,818,250) (79,172) Reclassification adjustment, net of tax ..... (212,173) (168,701) ------------ ------------ Total comprehensive results ................ (3,398,188) 2,292,635 Dividends declared ($0.30 per share 1999, $0.265 per share 1998) ................... (938,902) (829,364) ------------ ------------ Balance at June 30, ............................ $ 32,110,403 $ 35,157,117 ============ ============ 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 1998 Annual Report to Stockholders should be read in conjunction with these statements. 6 AMERICAN BANCORPORATION FORM 10-Q Quarterly Report June 30, 1999 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS INTRODUCTION The discussion and analysis, when read in conjunction with the consolidated financial statements and accompanying notes, is designed to provide information relevant to an assessment of financial performance and management's perception of significant events. 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 1998 Annual Report and the financial statements appearing elsewhere herein. SUMMARY American Bancorporation (the "Company") recognized net income of $2,632,000 or $0.84 basic earnings per share, for the six months ended June 30, 1999, compared to net income of $2,541,000 or $0.81 basic earnings per share, for the six months ended June 30, 1998. Return on average assets and return on average equity were 0.80% and 14.75%, respectively, for the six months ended June 30, 1999 compared to 0.97% and 14.61%, respectively, for the six months ended June 30, 1998. Total assets at June 30, 1999 increased to $677,970,000, from $551,178,000 at June 30, 1998, an increase of 23.0%. Deposits increased to $433,281,000 at June 30, 1999, from $412,592,000 at June 30, 1998, an increase of 5.0%. Total stockholders' equity was $32,110,000 at June 30, 1999, which represents an 8.7% decrease over total stockholders' equity of $35,157,000 at June 30, 1998. RESULTS OF OPERATIONS SIX MONTH COMPARISON Net Income. Net income for the six months ended June 30, 1999 amounted to $2,632,000, or $0.84 basic earnings per share, compared to net income of $2,541,000 or $0.81 basic earnings per share, for the six months ended June 30, 1998. The increase was the result of an increase in net interest income and a decrease in income taxes which was partially offset by increases in other expense and provision for loan losses and a decrease in other income. Net Interest Income. Net interest income before provision for loan losses for the six months ended June 30, 1999 amounted to $8,957,000, an increase of $484,000 or 5.7%, compared to the six months ended June 30, 1998. The increase resulted primarily from a $127,215,000 or 25.6% increase in average interest earning assets which was partially offset by a 46 basis point decrease in the Company's margin. Total interest income for the six months ended June 30, 1999 amounted to $22,527,000 an increase of $3,225,000 or 16.7%, compared to the six months ended June 30, 1998. The increase resulted primarily from the increase in the average interest earning assets which was partially offset by a 48 basis point decrease in the average yield on earning assets. Average loans outstanding increased $26,606,000 or 9.2% with average commercial loans increasing $30,428,000 or 31.7%, while average real estate loans decreased $3,667,000 or 2.6% and average consumer installment loans decreased $155,000 or 0.3%. The average yield on loans decreased from 8.80% in 1998 to 8.48% in 1999. Average investment securities and other short-term investments outstanding increased $100,609,000 or 48.3% while the average yield decreased from 6.35% in 1998 to 6.10% in 1999. 7 AMERICAN BANCORPORATION FORM 10-Q Quarterly Report June 30, 1999 Total interest expense for the six months ended June 30, 1999 amounted to $13,570,000, an increase of $2,741,000 or 25.3% , compared to the six months ended June 30, 1998. The increase resulted primarily from a $124,769,000 or 27.7% increase in the average volume of interest bearing liabilities which was partially offset by a 10 basis point decrease in interest rates paid on such liabilities. Average NOW, money market and savings accounts decreased $1,572,000 or 1.3%. Average time deposits increased $40,178,000 or 17.3%, primarily the result of increased marketing efforts. Average noninterest bearing accounts increased $3,550,000 or 9.5% and represented 8.7% of average total deposits for the six months ended June 30, 1999. Average borrowed funds increased $80,818,000 or 90.7% , while the average rate paid on borrowed funds decreased from 5.40% in 1998 to 4.99% in 1999. Provision for Loan Losses. The loan loss provision for the six months ended June 30, 1999 was $150,000, compared to $120,000 for the same period in 1998. Other Income. Other income for the six months ended June 30, 1999 amounted to $1,958,000, a decrease of $233,000 or 10.6%. Net gains on sale of loans decreased $87,000 or 10.2%. Net gain on sale of investment securities totalled $343,000 in 1999, compared to $487,000 in 1998. Other Expense. Total other expense for the six months ended June 30, 1999 amounted to $7,442,000, an increase of $464,000 or 6.6%, compared to the six months ended June 30, 1998. Salaries and employee benefits increased $282,000 or 8.9%. Occupancy and equipment expense increased $83,000 or 6.9%. Other (miscellaneous) expenses increased $99,000 or 3.8%. Provision for Income Taxes. The provision for income taxes for the six months ended June 30, 1999 was $690,000, compared to $1,025,000 for the six months ended June 30, 1998. The decrease is primarily the result of additional tax exempt income in 1999. RESULTS OF OPERATIONS QUARTER COMPARISON Net Income. Net income for the quarter ended June 30, 1999 amounted to $1,348,000, compared to net income of $1,287,000 for the quarter ended June 30, 1998. The increase was the result of an increase in net interest income and a decrease in income taxes which was partially offset by increases in other expense and provision for loan losses and a decrease in other income. Net Interest Income. Net interest income before provision for loan losses for the quarter ended June 30, 1999 amounted to $4,653,000, an increase of $444,000 or 10.5%, compared to the quarter ended June 30, 1998. The increase resulted primarily from a $118,785,000 or 22.9% increase in average interest earning assets which was partially offset by a 33 basis point decrease in the Company's margin . Total interest income for the quarter ended June 30, 1999 amounted to $11,615,000, an increase of $1,641,000 or 16.5% , compared to the same period in 1998. The increase resulted primarily from the increase in the average volume of earning assets which was partially offset by a 39 basis point decrease in the average yield on earning assets. Average loans outstanding increased $34,493,000 or 11.9%. Average commercial loans increased $34,337,000 or 35.5%, average consumer installment loans increased $1,458,000 or 2.9% while average real estate loans decreased $1,302,000 or 0.9%. The average yield on loans decreased from 8.81% in 1998 to 8.47% in 1999. 8 AMERICAN BANCORPORATION FORM 10-Q Quarterly Report June 30, 1999 Average investment securities and other short-term investments outstanding increased $84,293,000 or 36.6% and the average yield decreased from 6.25% in 1998 to 6.04% in 1999. Total interest expense for the quarter ended June 30, 1999 amounted to $6,962,000, an increase of $1,198,000 or 20.8%, compared to the quarter ended June 30, 1998. The increase resulted primarily from an $118,012,000 or 25.0% increase in the average volume of interest bearing liabilities which was partially offset by a 17 basis point decrease in interest rates paid on such liabilities. Provision for Loan Losses. The loan loss provision for the quarter ended June 30, 1999 was $75,000, compared to $60,000 for same period in 1998. Other Income. Other income amounted to $958,000 for the quarter ended June 30, 1999, compared to $1,194,000 for the quarter ended June 30, 1998. Net gains on sale of loans decreased $33,000 or 7.0%. Net gain on sale of investment securities totalled $75,000 for the quarter ended June 30, 1999 compared to $331,000 for the same period in 1998. Other Expense. Total other expense for the quarter ended June 30, 1999 amounted to $3,800,000, an increase of $213,000 or 6.0%, compared to the same period in 1998. Salaries and employee benefits increased $105,000 or 6.6%. Occupancy and equipment expense increased $30,000 or 4.9%. Other (miscellaneous) expenses increased $78,000 or 5.7%. Provision for Income Taxes. The provision for income taxes for the quarter ended June 30, 1999 was $389,000, compared to $471,000 for the quarter ended June 30, 1998. The decrease is primarily the result of additional tax-exempt income in 1999. ASSET QUALITY Nonperforming loans totalled $2,568,000 or 0.8% of total loans at June 30, 1999, compared to $2,960,000 or 1.0% at December 31, 1998. Nonperforming loans at June 30, 1999 consisted of nonaccrual loans totalling $1,151,000, 90 day delinquent loans of $1,106,000, and restructured loans aggregating $311,000. Other real estate held totalled $533,000 at June 30, 1999, compared to $183,000 at December 31, 1998. CAPITAL RESOURCES Stockholders' equity totalled $32,110,000 at June 30, 1999. The Company's risk-based capital ratio was 15.2%, of which 14.3% constituted common stockholder equity, while the risk-based capital ratio for the Company's bank subsidiary, Wheeling National Bank, was 14.1%, with common stockholder equity of 13.3%. At June 30, 1999 the Company's leverage capital ratio was 7.4%, while the leverage ratio for Wheeling National Bank was 6.9%. 9 AMERICAN BANCORPORATION FORM 10-Q Quarterly Report June 30, 1999 YEAR 2000 COMPLIANCE The Company may be exposed to potential losses due to business interruption or errors which could result if any of its computer systems are not modified to ensure that dates beginning in January, 2000 are not misinterpreted by the system as January, 1900. This is commonly referred to as the Year 2000 issue. A number of computer systems which are affected by Year 2000 are utilized by the Company to operate its day-to-day business. Management has established a task force to develop and maintain a Year 2000 Compliance Plan. The Company's Year 2000 Compliance Plan has been prepared in accordance with the Federal Financial Institutions Examination Council ("FFIEC") guidelines on Year 2000 Compliance and involves the following five phases: awareness, assessment, renovation, validation and implementation. The Company has completed all phases of the Y2K Compliance Plan. The Company has contacted large commercial customers and significant suppliers to determine their capability to resolve the Year 2000 issues and attain compliance. Risk ratings have been assigned to customers and suppliers. Further contact will occur based on survey results. The Company has prepared general contingency plans to address unforeseen Year 2000 issues. Contingency plans will be continuously monitored and updated as conditions change throughout 1999 and into the Year 2000. The Company has estimated that direct costs for Y2K compliance will not be material. Y2K problems which are inherent in the regional, national and global banking and payments system are expected to be brought into compliance, but are completely beyond the Company's control. 10 AMERICAN BANCORPORATION FORM 10-Q Quarterly Report June 30, 1999
Three months ended June 30, Six months ended June 30, 1999 1998 1999 1998 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 .................... $131,154 8.78% $ 96,817 9.28% $126,439 8.68% $ 96,012 9.19% Real estate ................... 141,557 7.86 142,859 8.28 138,718 8.00 142,384 8.30 Installment-net ............... 51,483 8.28 50,025 8.44 49,599 8.33 49,753 8.43 ---------- -------- ------- -------- Total loans .................. 324,194 8.47 289,701 8.81 314,756 8.48 288,149 8.80 Investment securities Taxable ....................... 248,453 6.33 214,007 6.21 247,834 6.21 197,626 6.32 Tax-exempt .................... 57,420 4.89 1,143 8.13 52,332 5.72 1,116 8.25 ---------- -------- ------- ------- Total investment securities .. 305,873 6.06 215,150 6.22 300,166 6.12 198,742 6.33 Other short-term investments ... 8,543 5.39 14,974 6.64 8,775 5.44 9,591 6.88 ---------- -------- ------- ------ Total interest earning assets $638,610 7.28 $519,825 7.67 $623,697 7.30 $496,482 7.78 ========== ======== ======== ======== INTEREST BEARING LIABILITIES Deposits NOW, Savings and MMDA ........ $120,534 2.27% $121,565 2.70% $119,275 2.26% $120,847 2.67% Time ......................... 271,070 5.39 246,101 5.69 272,627 5.45 232,449 5.64 --------- -------- --------- -------- Total deposits .............. 391,604 4.43 367,666 4.70 391,902 4.48 353,296 4.62 Borrowed funds ................. 186,563 5.04 92,475 5.35 169,939 4.99 89,121 5.40 Long-term debt ................ 12,655 8.71 12,669 6.51 12,657 8.71 7,312 7.00 -------- -------- --------- -------- Total interest bearing liabilities ..... $590,822 4.71 $472,810 4.88 $574,498 4.72 $449,729 4.82 ======== ======== ======== ======== MARGIN ANALYSIS (as a % of earning assets) Interest income ................ 7.28% 7.67% 7.30% 7.78% Interest expense ............... 4.37 4.43 4.35 4.37 ----- ----- ----- ---- Net interest income ............ 2.91% 3.24% 2.95% 3.41% ===== ===== ===== ====
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. 11 AMERICAN BANCORPORATION FORM 10-Q Quarterly Report June 30, 1999 Item 3. Quantitative and Qualitative Disclosures about Market Risk Management is responsible for monitoring and limiting the Company's exposure to interest rate risk within established guidelines while maximizing net interest income. During the first half of 1999, the Company's interest rate risk position grew more liability sensitive. The change in position resulted primarily from the purchase of fixed-rate securities funded by short-term FHLB borrowings. Quantitative and qualitative disclosures about market risk are presented at December 31, 1998 in Item 7a. of the Company's Annual Report on Form 10-K, filed with the SEC on March 31, 1999. Part II. OTHER INFORMATION Item 4. Submission of Matters to a Vote of Securities Holders The Annual Meeting of Shareholders was held May 19, 1999. Proxies were solicited pursuant to Regulation 14 of the 1934 Act. Shares represented in person or by proxy totalled 2,557,659 or 81.72% of the shares then outstanding. Shareholders approved by affirmative vote the following proposals: 1. To fix the number of positions for director at 10, with 2 vacancies that may be filled by the Board of Directors: Vote For: 2,535,107 Against: 21,264 Abstain: 1,288 2. To elect Abigail M. Feinknopf, Jay T. McCamic and Jeffrey W. McCamic directors for a three year term and to elect John J. Malik, Jr. director for a one year term. Vote For Vote Withheld Abstain Abigail M. Feinknopf ........ 2,516,017 41,642 0 Jay T. McCamic .............. 2,349,920 207,739 0 Jeffrey W. McCamic .......... 2,349,920 207,731 0 John J. Malik, Jr ........... 2,513,325 44,334 0 Continuing in the position of director were the following: Term Expiring Jeremy C. McCamic 2000 Jolyon W. McCamic 2000 Jack O. Cartner 2001 Paul W. Donahie 2001 Item 6. Exhibits and Reports on Form 8-K B. Reports on Form 8-K: Date Item Description None 12 AMERICAN BANCORPORATION FORM 10-Q Quarterly Report June 30, 1999 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 8/16/99 /s/ Jeremy C. McCamic Jeremy C. McCamic Chairman and Chief Executive Officer Date 8/16/99 /s/ Brent E. Richmond Brent E. Richmond Chief Operating Officer Date 8/16/99 /s/ Jeffrey A. Baran Jeffrey A. Baran Chief Financial Officer 13 EX-27 2 ARTICLE 9 FDS FOR 10-Q
9 1,000 6-MOS DEC-31-1999 JUN-30-1999 10,321,225 257,794 4,877,025 0 306,669,719 0 306,669,719 332,826,797 3,068,302 677,970,234 433,281,177 193,281,312 6,643,332 12,654,010 7,824,185 0 0 24,286,218 677,970,234 13,350,683 8,937,560 238,492 22,526,735 8,781,731 4,787,877 8,957,127 150,000 342,967 7,442,465 3,322,231 2,632,235 0 0 2,632,235 0.84 0.84 0295 1,151,000 1,106,000 311,000 0 0 0 0 0 0 0 0
-----END PRIVACY-ENHANCED MESSAGE-----