-----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, Mq9tC48ic49ijYEQCFbQICrJcOIZo7Tb0w8ttW7oRiQ9wVrxCmNXurRzvnI1MqPA QNv5MWStR9TI8yC1qCWt1A== 0000806853-97-000005.txt : 19971114 0000806853-97-000005.hdr.sgml : 19971114 ACCESSION NUMBER: 0000806853-97-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971112 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SVB&T CORP /NEW CENTRAL INDEX KEY: 0000806853 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 351539978 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 033-10149 FILM NUMBER: 97712601 BUSINESS ADDRESS: STREET 1: COLLEGE & MAPLE STS STREET 2: PO BOX 191 CITY: FRENCH LICK STATE: IN ZIP: 47432 BUSINESS PHONE: 8129369961 10-Q 1 SECURITIES & 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 quarterly period ended September 30, 1997 _____ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to _________ COMMISSION FILE NUMBER 33-10149 SVB&T Corporation 1500 Main Street Jasper, IN 47546 Telephone (812) 634-1010 State of Incorporation - Indiana I.R.S. Employer Identification No. 35-1539978 NOT APPLICABLE Former name, former address and fiscal year, if changed since last report. 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, and (2) has been subject to the filing requirements for at least the past 90 days. Yes _X__ No ____ Indicate the number of shares outstanding of each of the issuer's classes of common stock. The Registrant has one class of common stock (no par value) with approximately 745,800 shares outstanding at November 7, 1997. The Registrant holds 54,200 shares in the form of Treasury Stock. SVB&T CORPORATION FORM 10-Q INDEX PART I. FINANCIAL INFORMATION Item 1. Financial Statements Page No. Consolidated Balance Sheet September 30, 1997 and 1996 and December 31, 1996........... 3 Consolidated Statement of Income Three and nine months ended September 30, 1997 and 1996..... 4 Consolidated Statement of Cash Flows Nine months ended September 30, 1997 and 1996............... 5 Consolidated Statement of Changes in Shareholders' Equity Nine months ended September 30, 1997 and 1996............... 6 Notes to Consolidated Financial Statements................... 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations................................... 8-10 PART II. OTHER INFORMATION............................................ 11 SIGNATURES............................................................ 12 SVB&T CORPORATION CONSOLIDATED BALANCE SHEET Sept. 30, Sept. 30, Dec. 31, (unaudited) 1997 1996 1996 ASSETS: Cash and due from banks 3,243,272 5,156,651 5,029,136 Federal funds sold 0 5,260,000 0 Total cash and cash equivalents 3,243,272 10,416,651 5,029,136 Interest bearing deposits in other banks 16,954 0 0 Investment securities, available for sale (carried at market value) 44,082,181 55,586,930 50,512,660 Loans Loans, net of unearned interest 136,577,300 118,271,941 122,859,789 Allowance for loan losses (1,323,237) (1,310,267) (1,329,295) Net loans 135,254,063 116,961,674 121,530,494 Buildings and equipment 4,879,680 5,088,627 5,040,585 Other real estate 0 57,950 53,200 Interest receivable 1,228,257 1,361,263 1,357,380 Deferred income taxes 0 0 0 Other assets 1,147,034 1,363,855 838,639 Total Assets 189,851,441 190,836,950 184,362,094 LIABILITIES: Deposits Non-interest bearing demand 10,111,045 13,606,432 12,554,733 Interest bearing 149,824,386 158,874,640 139,040,316 Total Deposits 159,935,431 172,481,072 151,595,049 Federal Funds Purchased 4,700,000 0 8,870,000 Other Short Term Borrowings 5,000,000 0 5,000,000 Interest payable 780,946 796,376 750,028 Deferred income taxes 284,889 97,428 241,324 Other liabilities 702,699 632,400 576,177 Total Liabilities 171,403,965 174,007,276 167,032,578 SHAREHOLDERS' EQUITY: Common stock 200,000 200,000 200,000 Capital surplus 6,094,233 6,094,233 6,094,233 Retained earnings 13,033,339 11,646,338 11,981,683 Net unrealized gain (loss) on investment securities (67,096) (297,897) (133,400) Treasury stock at cost (27,100 shares) (813,000) (813,000) (813,000) Total Shareholders' Equity 18,447,476 16,829,674 17,329,516 Total Liabilities and Shareholders' Equity 189,851,441 190,836,950 184,362,094 The accompanying notes are an integral part of this statement. SVB&T CORPORATION CONSOLIDATED STATEMENT OF INCOME Three Months Nine Months Ended Sept. 30, Ended Sept. 30, (unaudited) 1997 1996 1997 1996 _____________________________________________________________________________ INTEREST INCOME: Loans and fees on loans 2,997,719 2,644,111 8,472,715 7,641,064 Investment securities: Taxable 577,733 691,185 1,852,102 2,159,678 Non-taxable 100,900 186,761 308,838 455,636 Federal funds sold and securities purchased under agreements to resell 5,444 55,152 112,500 268,391 Deposits with banks 257 0 573 0 Total Interest Income 3,682,053 3,577,209 10,746,728 10,524,769 INTEREST EXPENSE: Deposits 1,880,763 1,905,741 5,583,919 5,680,758 Other Short term Funds Borrowed 48,522 0 86,865 0 Total interest expense 1,929,285 1,905,741 5,670,784 5,680,758 Net interest income 1,752,768 1,671,468 5,075,944 4,844,011 Provision for loan losses 100,000 75,000 280,000 225,000 Net interest income after provision for loan losses 1,652,768 1,596,468 4,795,944 4,619,011 NON-INTEREST INCOME: Trust fees 217,000 184,242 547,025 491,443 Service charges on deposit accounts 139,183 93,522 363,153 250,172 Insurance and claims processing 40,856 43,644 136,406 137,298 Securities gains (losses), net 2,257 1,366 5,375 1,528 Other Income 68,544 52,932 155,646 176,383 Total Non-interest Income 467,840 375,706 1,207,605 1,056,824 NON-INTEREST EXPENSE: Salaries and employee benefits 828,147 814,238 2,455,688 2,357,373 Premise and equipment expense 298,261 293,113 860,762 859,682 Other real estate expense 0 8,850 11,794 14,425 FDIC Deposit expense 5,294 600 15,080 1,600 Telephone expense 34,000 34,239 98,951 100,690 Postage expense 26,724 22,176 83,095 81,412 Other expenses 215,902 208,965 662,214 628,034 Total non-interest expense 1,408,328 1,382,181 4,187,584 4,043,216 Income before income taxes 712,280 589,993 1,815,965 1,632,619 Provision for income tax 185,447 147,740 473,447 396,500 Net Income 526,833 442,253 1,342,518 1,236,119 NET INCOME PER COMMON SHARE: Primary .71 .59 1.80 1.66 Weighted average common shares outstanding 745,800 745,800 745,800 745,800 DIVIDENDS DECLARED: Cash dividends 0.15 0.12 0.39 0.36 The accompanying notes are an integral part of this statement. SVB&T CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS Nine Months Ended Sept 30, (unaudited) 1997 1996 ___________________________________________________________________________ CASH FLOWS FROM OPERATING ACTIVITIES: Net income before sale of asset 1,342,518 0 Gain on Sale Asset (18,556) 0 Net Income 1,323,962 1,236,119 ADJUSTMENTS TO RECONCILE NET INCOME TO CASH PROVIDED FROM OPERATING ACTIVITIES: Depreciation 319,220 321,179 Net premium amortization (discount accretion) of investment securities 2,608 41,801 Provision of loan losses 280,000 225,000 Decrease(increase) in interest receivable 129,123 176,107 (Increase) decrease in other assets (255,195) (93,406) Increase (decrease) in accrued expenses and other liabilities 157,440 123,143 Net cash flows provided by operating activities 1,957,158 2,029,943 CASH FLOWS FROM INVESTING ACTIVITIES: Net increase of interest bearing deposits in other banks (16,954) 0 Purchase of investment securities available for sale (2,729,994) (7,381,623) Proceeds from maturities and paydowns of investment securities available for sale 9,267,734 7,810,941 Net (increase) decrease in loans (13,985,013) (5,799,339) Purchase of premises and equipment (208,363) (332,666) Purchase of Sale of Asset 50,048 Net cash flows used in investing activities (7,622,542) (3,672,744) CASH FLOWS FROM FINANCING ACTIVITIES: Net increase (decrease) in deposits and short-term borrowings Non-interest bearing demand (2,443,688) 1,104,667 Total interest-bearing deposits 10,784,070 (388,171) Federal Funds Purchased (4,170,000) 0 Other Short-Term Borrowings 0 0 Cash dividends paid (290,862) (264,759) Net cash flows provided by (used in) financing activities 3,879,520 451,737 Net decrease in cash equivalents (1,785,864) (3,221,007) Cash and cash equivalents at beginning of period 5,029,136 13,637,658 Cash and cash equivalents at end of period 3,243,272 10,416,651 Total interest paid 5,639,839 5,749,734 Total taxes paid 615,164 370,349 The accompanying notes are an integral part of this statement. SVB&T CORPORATION CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Nine Months Ended Sept. 30, (unaudited) 1997 1996 _______________________________________________________________________________ Balance, beginning of period 17,329,516 16,372,127 Net income 1,342,518 1,236,119 Cash dividends (290,862) (264,759) Net unrealized gain (loss) on investment securities 66,304 (513,813) Balance, end of period 18,447,476 16,829,674 The accompanying notes are an integral part of this statement. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Principles of Consolidation - The consolidated financial statements include the accounts of SVB&T Corporation and its wholly owned subsidiary, Springs Valley Bank & Trust Company. All significant intercompany balances and transactions have been eliminated. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the periods reported, consisting only of normal adjustments, have been included in the accompanying unaudited consolidated condensed financial statements. The results of operations for nine month period ended September 30, 1997 is not necessarily indicative of those expected for the remainder of the year. The holding company had a 2 for 1 stock split for shareholders as of August 1, 1997. The shares were issued on August 11, 1997. All per share information has been restated based on this stock split. Sept. 30, 1997 Sept. 30, 1996 Dec. 31, 1996 ________________________________________________________________________________ INVESTMENT SECURITIES: U.S. treasury securities 0 0 0 U.S. Government corporations & agencies 34,353,396 45,540,100 39,468,326 States and political subdivisions 8,320,021 9,099,397 9,610,273 Mortgage - backed securities 330,464 380,033 366,661 Other domestic securities 500,000 0 500,000 Equity Securities 578,300 567,400 567,400 Total Investment Securities 44,082,181 55,586,930 50,512,660 Sept. 30, 1997 Sept. 30, 1996 Dec. 31, 1996 ________________________________________________________________________________ LOANS: Commercial and industrial loans 16,413,882 14,657,537 15,133,405 Real estate loans 77,568,950 66,524,475 67,859,219 Construction loans 995,900 27,673 64,737 Agricultural production financing and other loans to farmers 1,310,373 1,387,408 1,094,039 Individual loans for household and other personal expense 39,978,476 35,879,979 38,451,555 Economic development revenue bonds 0 0 23,909 Lease Financing Receivable 464,577 0 538,007 Other Loans Excluding Consumer 0 0 0 Less: Unearned income on loans (154,858) (205,131) 305,082 Total Loans 136,577,300 118,271,941 122,859,789 PART I ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SUMMARY OF OPERATING RESULTS EARNINGS ANALYSIS Net income for the first nine months of $1,342,518 represents an increase of $106,399 or 9% from the $1,236,119 reported for the same period last year. The third quarter earnings of $526,833 represents an increase of $84,580 or 19% from the $442,253 reported for the third quarter of 1996. The income increase is a direct result of a increase net interest margin. The bank's non-interest income has increased with income from trustee fees and service charges on accounts. Non-interest Expenses have increased by an average rate of 4% over the 1996 total expenses. NET INTEREST INCOME Springs Valley Bank & Trust Company is a very liability sensitive bank. Interest bearing deposits reprice much faster than interest bearing loans and investments. In a declining environment, the bank's income increased because of a widening interest spread. Thus, our interest spreads have become larger and income has returned to a more acceptable position. The interest spread is improving. This subject is reviewed in greater detail in the following management comments. SVB&T Corporation's primary source of earnings is net interest income, which is the difference between interest earned on loans and other investments and the interest incurred for deposits. In the first nine months of 1997, net interest income increased by $176,933 or 4% for the same period in 1996. The third quarter net interest income for 1997 increased by $81,300 or 5% compared to the third quarter of 1996. The improvement in the net interest income is due to assets being deployed into higher yielding loans rather than investments. OTHER INCOME Other income of $1,207,605 for the first three quarters of 1997 is $150,781 or 14% higher than the same period for 1996.The increase is due to increased trust income and increased service charges on deposit accounts. Other non-interest is an important part of the profitability of the bank and all avenues of additional income are reviewed. The third quarter increase of other income, 1997 compared to 1996 is $92,134 or 25%. NON-INTEREST EXPENSES For the first nine months of 1997, other expenses increased by $144,368 or 4% compared to the same period of 1996. The three months ended September 30, 1997 total other expense increase was $26,142 or 2% increase over that same period for 1996. This increase is principally the effect of increased salaries and employee benefits. ANALYSIS OF FINANCIAL CONDITION ALLOWANCE FOR POSSIBLE LOAN LOSSES The Corporation's allowance for loan losses was $1,323,237 at September 30, 1997 compared to $1,310,267 at September 30, 1996 and $1,329,295 as of December 31, 1996. At September 30, 1997 the allowance for possible loan losses was .97% of total loans, net for unearned interest. This compares to an allowance of 1.11% at September 30, 1996. Net charge offs for the first nine months of 1997 were $356,116 compared to $297,187 for the same period last year. Management reviews the loan portfolio and assess the risk and believes that the allowance of $1,323,237 is adequate. LIQUIDITY AND ASSET/LIABILITY MANAGEMENT The Corporation's objective in liquidity management is to manage the assets and liabilities to meet the needs of borrowers while allowing for the possibility of deposit withdrawals. The primary purpose of asset/liability management is to minimize the effect on net income of changes in interest rates and to maintain a prudent match within specified time periods of rate-sensitive assets and rate-sensitive liabilities. As of September 30, 1997 the rate-sensitive assets were 67% of rate-sensitive liabilities in the 1-180 day maturity category and 82% in the 181-365 day range. These positions are within acceptable ranges as determined by funds management policy. The Corporation's Funds Management Committee meets weekly to monitor and effect changes necessary in the liquidity and rate-sensitivity positions. CAPITAL Total shareholders' equity as of September 30, 1997 was $18,447,476 compared to $16,829,674 for the same period last year. The shareholder's equity has increased by $1,617,802 or 10% from September 30, 1996 to September 30, 1997. This increase is attributed to the unrealized loss on investment securities remaining relatively stable and profits increasing. The holding company enacted a 2 for 1 stock split on August 11, 1997. The total shares increased to 800,000 with 745,800 shares outstanding. This stock split's goal is to create a larger market for SVB&T Corporations stock at a reasonable cost. (ANALYSIS OF FINANCIAL CONDITIONS CONTINUED) As of September 30, 1997 the bank's leverage capital ratio was 9.35% which compared to 8.82% at September 30, 1996. As of September 30, 1997 the bank's total risk-based capital ratio was 15.28% compared to 15.75% at September 30, 1996. These ratios are in excess of regulatory requirements of 3% for leverage capital and 8% for total risk-based capital. 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 OF FORM 8-K 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. SVB&T Corporation (Registrant) By: Ronald G. Seals President and Chief Executive Officer By: David Rees Principal Financial Officer Date: November 7, 1997 EX-27 2
9 9-MOS DEC-31-1997 SEP-30-1997 3,243 17 0 0 44,082 44,082 44,082 136,577 1,323 189,851 159,935 9,700 1,768 0 0 0 200 18,247 189,851 8,473 2,274 0 10,747 5,584 5,671 5,076 280 5 4,188 1,816 1,816 0 0 1,343 1.80 1.80 8.97 1,999 35 0 3,043 1,329 356 70 1,323 1,323 0 0
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