-----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, Q1iN8ApLvLKUIEogdC9G3+SZMR/BhbUEfwFw5DA9iyAvZTPYll6Dqj9vviZj8Izx ZDuh4N5OxsWPuALdA0lqTw== 0000908834-96-000249.txt : 19961115 0000908834-96-000249.hdr.sgml : 19961115 ACCESSION NUMBER: 0000908834-96-000249 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961113 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST BANCORP /IN/ CENTRAL INDEX KEY: 0000840458 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 351775411 STATE OF INCORPORATION: IN FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-17915 FILM NUMBER: 96660575 BUSINESS ADDRESS: STREET 1: THIRD & BUSSERON STREETS CITY: VINCENNES STATE: IN ZIP: 47591 BUSINESS PHONE: 8128824528 MAIL ADDRESS: STREET 1: THIRD & BUSSERON STREET STREET 2: P O BOX 1417 CITY: VINCENNES STATE: IN ZIP: 47591 10-Q 1 1ST BANCORP'S FORM 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20552 (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly period Ended September 30, 1996 ( ) 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 0-17915 1ST BANCORP -------------------------------------------------------------- (Exact name of registrant as specified in its charter) Indiana 35-1775411 - -------------------------------------- ------------------------------------ (State of other jurisdiction of (I.R.S. Employer Identification Incorporation or organization) Number) 101 N. Third Street Vincennes, Indiana 47591 - -------------------------------------- ------------------------------------ (Address of principal executive office) (Zip Code) Registrant's telephone number, including are code: (812) 882-4528 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______________ As of October 23, 1996, there were 670,643 Shares of the Registrant's Common Stock issued and outstanding. -1- 1ST BANCORP AND SUBSIDIARIES INDEX Page PART I. FINANCIAL INFORMATION: Number Item 1. Financial Statements Consolidated Condensed Statements of Financial Condition, September 30, 1996 and June 30, 1996 (Unaudited) 3 Consolidated Condensed Statements of Earnings (Loss), Three Months Ended September 30, 1996 and 1995 (Unaudited) 4 Consolidated Condensed Statements of Cash Flows, Three Months Ended September 30, 1996 and 1995 (Unaudited) 5 Notes to Consolidated Condensed Financial Statements (Unaudited) 6-7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8-13 PART II. OTHER INFORMATION 14 SIGNATURES 15 -2- 1ST BANCORP AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION (Unaudited and in Thousands)
September 30, June 30, 1996 1996 ---------------- ------------ ASSETS Cash and cash equivalents: Interest bearing deposits $ 13,385 $ 24,689 Non-interest bearing deposits 438 410 --------- --------- Cash and cash equivalents 13,823 25,099 --------- --------- Securities available for sale 10,453 10,499 Securities held to maturity (market value of $42,460,000 at September 30, 1996 and $42,184,000 at June 30, 1996) 43,592 43,624 Loans receivable, net 161,597 150,749 Loans held for sale 13,627 18,590 Accrued interest receivable: Securities 647 1,036 Loans 1,090 1,179 Stock in FHLB of Indianapolis, at cost 4,864 4,864 Office premises and equipment 2,905 2,950 Real estate owned 452 177 Prepaid expenses and other assets 4,910 4,716 --------- --------- TOTAL ASSETS $ 257,960 $ 263,483 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits $ 134,006 $ 137,148 Advances from FHLB and other borrowings 98,905 100,885 Advance payments by borrowers for taxes and insurance 644 492 Accrued interest payable on deposits 653 816 Accrued expenses and other liabilities 2,602 2,413 --------- --------- Total Liabilities $ 236,810 $ 241,754 --------- --------- Stockholders' Equity: Preferred stock, no par value; shares authorized of 2,000,000, none outstanding -- -- Common stock, $1 par value; shares authorized of 5,000,000; shares issued and outstanding of 670,643 at September 30, 1996 and 666,561 at June 30, 1996 $ 671 $ 667 Paid-in capital 2,838 2,747 Retained earnings, substantially restricted 17,862 18,560 Unrealized depreciation on securities (221) (245) --------- --------- Total Stockholders' Equity $ 21,150 $ 21,729 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 257,960 $ 263,483 ========= =========
See Notes to Consolidated Condensed Financial Statements - 3 - 1ST BANCORP AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (LOSS) (Unaudited and in Thousands, Except Per Share Data)
Three Months Ended September 30, -------------------------------------------- 1996 1995 ------------- -------------- INTEREST INCOME: Loans $ 3,595 $ 4,222 Investment securities 927 1,188 Other short-term investments and interest bearing deposits 187 217 ------- ------- Total Interest Income 4,709 5,627 ------- ------- INTEREST EXPENSE: Deposits 1,829 2,772 Short-term borrowings 21 24 FHLB advances and other borrowings 1,417 1,163 ------- ------- Total Interest Expense 3,267 3,959 ------- ------- NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 1,442 1,668 Provision for loan losses 46 25 ------- ------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 1,396 1,643 ------- ------- NON-INTEREST INCOME: Fees and service charges 84 95 Net gain (loss) on sales of investment securities available for sale and trading account investments -- 1 Net gain on sales of loans 653 483 Other 136 406 ------- ------- Total Non-Interest Income 873 985 ------- ------- NON-INTEREST EXPENSE: Compensation and employee benefits 1,045 1,034 Net occupancy 181 205 Federal insurance premiums 1,429 136 Other 669 470 ------- ------- Total Non-Interest Expense 3,324 1,845 ------- ------- Earnings (Loss) Before Income Taxes (1,055) 783 Income Taxes (424) 295 ------- ------- NET EARNINGS (LOSS) ($ 631) $ 488 ======= ======= EARNINGS (LOSS) PER SHARE: Primary ($ 0.94) $ 0.72 Fully-diluted ($ 0.94) $ 0.72
See Notes to Consolidated Condensed Financial Statements - 4 - 1ST BANCORP AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited and in Thousands)
Three Months Ended September 30, 1996 1995 ------------ ------------ Net Cash Flow From Operating Activities: Net earnings (loss) ($631) $488 Adjustments to reconcile net cash provided by operating activities: Depreciation and amortization 58 65 Amortization of mortgage servicing rights 26 45 Gain on sale of loans (653) (483) Net change in loans held for sale 4,963 (2,392) Provision for loan losses 46 25 Decrease in accrued interest receivable 478 347 Decrease (increase) in prepaid expenses and other assets (174) 315 Increase in accrued expenses and other liabilities 10 78 Undistributed loss of investment in limited partnership 36 30 ------- -------- NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 4,159 (1,482) ------- ------- Cash Flows From Investing Activities: Proceeds from maturities, calls, repayment of principal and sales of investment and mortgage-backed securities available for sale 89 - Purchase of investment and mortgage-backed securities - (12,415) Proceeds from maturities, calls, and repayment of principal of investment and mortgage-backed securities 31 11,753 Principal collected on loans, net of originations (10,313) 721 Purchases of office premises and equipment (25) (27) Other (275) (34) ------- ------- NET CASH USED BY INVESTING ACTIVITIES (10,493) (2) ------- ------- Cash Flows From Financing Activities: Net decrease in deposits (3,142) (2,379) Proceeds from FHLB advances and other borrowings 18,865 27,866 Repayment of FHLB advances and other borrowings (20,845) (27,915) Proceeds from issuance of common stock 95 95 Payment of dividends on common stock (67) (64) Increase (decrease) in advance payments by borrowers for taxes and insurance 152 (488) ------- ---------- NET CASH USED BY FINANCING ACTIVITIES (4,942) (2,885) ------- ------- NET DECREASE IN CASH AND CASH EQUIVALENTS (11,276) (4,369) Cash and Cash Equivalents at Beginning of Period 25,099 17,332 ------- ------- Cash and Cash Equivalents at End of Period $13,823 $12,963 ======= =======
See Notes to Consolidated Condensed Financial Statements 1ST BANCORP AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited) Note 1. In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments necessary for a fair presentation. The results of operations for the interim periods are not necessarily indicative of the results which may be expected for an entire year. These financial statements are condensed and do not contain all disclosures required by generally accepted accounting principles which would be included in a complete set of financial statements. Note 2. Earnings Per Share Primary earnings per share and fully-diluted earnings per share have been computed on the basis of the weighted average number of common shares outstanding and the dilutive effect of stock options not exercised during the periods presented using the treasury stock method. The weighted average number of shares outstanding for use in the earnings per share computations was 666,979 and 670,929 for the three months ended September 30, 1996 and 1995, respectively. Note 3. Stock Option and Purchase Plans 1ST BANCORP (the "Corporation") has an Incentive Stock Option Plan whereby 49,220 shares of authorized but unissued common stock were reserved for issuance upon the exercise of stock options granted to key employees. Stock options have been granted for 49,220 shares under the plan at an option price of $5.71 per share. The Corporation also has a stock option plan under which 157,500 shares of authorized but unissued common stock were reserved. Under this plan, 91,875 non-qualified stock options were granted at $5.71 per share to outside directors, and 39,375 incentive stock options and 9,844 non-qualified stock options were granted at $5.71 and $5.86 per share, respectively, to certain key employees. All options granted had been exercised or canceled as of June 30, 1996. The Corporation maintains an Employee Stock Purchase Plan whereby full-time employees of First Federal Bank, a Federal Savings Bank (the "Bank") and First Financial Insurance Agency, Inc. can purchase its common stock at a discount. The purchase price of the shares under this plan is 85% of the fair market value of such stock at the beginning or end of the offering period, whichever is lesser. 15,000 authorized but unissued shares were reserved for issuance under this plan. No shares have been issued under this plan to date. Under a former plan, with identical terms, 13,125 authorized but unissued shares were reserved for issuance. A total of 3,570 shares were issued and purchased by employees in the first quarter of fiscal year 1997 for the fiscal 1996 plan year under the former plan. -6- 1ST BANCORP AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited) Note 4. Stock Repurchase Plan In August 1996, the Board authorized the repurchase of up to 5% of the outstanding shares of common stock (670,131 shares were outstanding at the time), subject to market conditions, over a two year period which expires in August 1998. There have been no repurchases of stock under this plan. Note 5. Savings Association Insurance Fund ("SAIF") Recapitalization On September 30, 1996, the federal government mandated an industry wide assessment to recapitalize the SAIF, which is a part of the Federal Deposit Insurance Corporation ("FDIC"). The special assessment was charged to savings associations with insured deposits by the SAIF. The assessment was calculated at 0.657% of insured deposits as of March 31, 1995. The Bank's portion of the assessment was $1,330,000 and is included in non-interest expense for the quarter ended September 30, 1996. Note 6. Reclassifications Certain amounts in the fiscal year 1996 consolidated financial statements have been reclassified to conform to the fiscal year 1997 presentation. -7- 1ST BANCORP AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations (a) Financial Condition: Total assets at September 30, 1996, were $257,960,000, a decrease of $5,523,000, or 2.10%, from total assets of $263,483,000 at June 30, 1996. The reduction in total assets is primarily attributable to lower levels of cash and cash equivalents. Cash and cash equivalents declined by $11,276,000, or 44.93%, to $13,823,000 at September 30, 1996, from $25,099,000 at June 30, 1996. At June 30, 1996, cash and cash equivalents were at above normal levels primarily due to a significant bulk sale of lower yielding conforming mortgage loans during the fourth quarter of fiscal year 1996. Funds from the sale were invested primarily in higher yielding nonconforming mortgage loans during the quarter ended September 30, 1996, contributing to the lower level of cash. In addition, a portion of the funds were used to pay down borrowed funds and repay matured brokered deposits during the first quarter of fiscal year 1997. Investment securities consist primarily of U.S. Agency securities. The majority of securities have either a "call" or "step-up" feature, which provides the Bank with flexibility under varying interest rate scenarios. In a falling interest rate environment, the securities with a "call" feature would be called by the issuer. The rates paid on the "step-up" securities increase after a period of time. Generally, the rates increase on the securities several times prior to maturity. The level of investment securities held to maturity (including mortgage-backed securities) remained stable and totaled $43,592,000, at September 30, 1996, compared with $43,624,000 at June 30, 1996. Investment securities available for sale (including mortgage-backed securities) also remained stable and totaled $10,453,000 at September 30, 1996, compared with $10,499,000 at June 30, 1996. Net loans receivable increased by $10,848,000, or 7.20%, to $161,597,000 at September 30, 1996, from $150,749,000 at June 30, 1996. The increase in net loans receivable is attributable to residential mortgage loan production. Growth occurred in both the conforming and non-conforming mortgage loan portfolios. Emphasis continues to be placed on increasing the non-conforming loan portfolio to further enhance the Bank's net interest margin. Loan production during the three months ended September 30, 1996 decreased modestly compared to the same period of the prior year. During the three months ended September 30, 1996, the Bank funded $37.8 million of loans compared to $41.5 million of loans during the three months ended September 30, 1995. Primarily responsible for the slight decrease in loan production was the decrease of purchased one-to-four family mortgage loans. This type of production totaled $1.6 million for the quarter ended September 30, 1996, compared with $4.2 million for the same period of the prior year. -8- 1ST BANCORP AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations During the three months ended September 30, 1996, non-conforming mortgage lending constituted $22.1 million, or 58.47%, of total loans funded during the period. During the three months ended September 30, 1996, $16.9 million of non-conforming loans were sold on a non-recourse basis in the secondary market. The remainder of the loans, typically the highest quality loans, are retained in portfolio to increase the net interest margin. Non-conforming loans, including those held for sale, increased to $44.1 million at September 30, 1996 compared to $39.9 million at June 30, 1996. Loans held for sale decreased by $4,963,000, or 26.70% to $13,627,000 at September 30, 1996 from $18,590,000 at June 30, 1996. The primary reason for the decrease in loans held for sale was the sale of two bulk packages of adjustable rate non-conforming mortgage loans which totaled approximately $7.7 million during the quarter ended September 30, 1996. These two packages were held for sale at June 30, 1996. Asset quality remains strong. At September 30, 1996, non-performing assets totaled $1,142,000 or .44% of total assets. This compares to $732,000 of non-performing assets, or .29% of total assets, at June 30, 1996. The increase in non-performing assets was the result of one-to-four family loans becoming 90 days or more past due and the addition of one single family real estate owned property. The table below sets forth the amounts and categories of 1ST BANCORP's non-performing assets (non-accrual loans and other non-performing assets) for the balance sheet dates presented. Loans are reviewed regularly and are generally placed on non-accrual status when they become contractually past due 90 days or more. September 30, June 30, 1996 1996 ------------- -------- (In thousands) Non-performing assets: Non-accrual loans $ 690 $ 555 Other non-performing assets (1) 452 177 Restructured loans -- -- ------- ----- Total non-performing assets $1,142 $ 732 Non-performing assets to total assets .44% .29% (1) Certain assets acquired through foreclosures or deeds in lieu of foreclosure, which are included in the Consolidated Condensed Statement of Financial Condition as real estate owned. -9- 1ST BANCORP AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations During the three months ended September 30, 1996, the Bank established, through operations, provisions for loan losses totaling $46,000. In addition, the Bank realized net charge-offs through its allowance for loan loss accounts of $39,000. The Bank's allowance for loan loss was $903,000 at September 30, 1996 and $896,000 at June 30, 1996. Total deposits decreased by $3,142,000, or 2.29%, to $134,006,000 at September 30, 1996 from $137,148,000 at June 30, 1996. The decrease in deposits resulted primarily from the maturity of brokered deposits during the quarter ended September 30, 1996. Advances from the Federal Home Loan Bank ("FHLB") and other borrowings decreased by $1,980,000, or 1.96%, to $98,905,000 at September 30, 1996 from $100,885,000 at June 30, 1996. The slight decrease in borrowed money resulted primarily from the repayment of short-term borrowed funds. Accrued expenses and other liabilities increased slightly to $2,602,000 at September 30, 1996, from $2,413,000 at June 30, 1996. While there was only a slight increase in the overall accrued expenses and other liabilities category, there were two items that changed significantly during the quarter ended September 30, 1996. First, accounts payable increased by $1.3 million due exclusively to the SAIF assessment. Second, accrued income tax payable decreased by $529,000 due to the net loss attributable to the SAIF assessment. The assessment expense was recognized during the first quarter of fiscal 1997 on a tax effected basis, and is payable during the second quarter of fiscal 1997. (b) Results of Operations: During the three months ended September 30, 1996, 1ST BANCORP recorded a net loss of $631,000, or $0.94 per share, compared to net earnings of $488,000, or $0.72 per share, for the three months ended September 30, 1995. The net loss for the quarter ended September 30, 1996, was a direct result of the one-time assessment for the recapitalization of the SAIF. Net earnings for the quarter ended September 30, 1996, would have been approximately $165,000 or $0.24 per share as compared to net earnings of $488,000 or $0.72 per share for the quarter ended September 30, 1995, without the one-time SAIF assessment. This reduction was attributable to lower net interest income, lower non-interest income, and one-time charges associated with the loan origination offices recorded during the quarter. -10- 1ST BANCORP AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations Net interest income before provision for loan losses was $1,442,000 for the three months ended September 30, 1996, compared to $1,668,000 for the three months ended September 30, 1995. The net interest margin was 2.30% for the three months ended September 30, 1996 compared to 2.24% for the three months ended September 30, 1995. The lower level of net interest income was the result of a lower volume of interest-earning assets and interest-bearing liabilities. The lower levels of interest-earning assets and interest-bearing liabilities compared with the prior year were the result of the sale of two retail branch offices of the Bank in the second quarter of fiscal 1996. Non-interest income for the three months ended September 30, 1996 totaled $873,000 compared to $985,000 for the three months ended September 30, 1995. During the quarter ended September 30, 1996, there were no sales of mortgage servicing rights compared to a net gain of $237,000 on the sale of mortgage servicing rights during the quarter ended September 30, 1995. The gain on sale of servicing is included in "Other" non-interest income in the Consolidated Condensed Statement of Earnings. Partially offsetting this decline in non-interest income was the increased gain on the sale of mortgage loans. The gain on sale of mortgage loans totaled $653,000 for the quarter ended September 30, 1996 compared to $483,000 for the quarter ended September 30, 1995. The total volume of mortgage loan sales increased only modestly to $23.9 million from $22.1 million. However, the type of loans sold changed to primarily non-conforming loan sales from primarily conforming loan sales which resulted in the increased gain on sale of loans. Non-conforming loan sales totaled $16.9 for the quarter ended September 30, 1996, compared with $4.1 million for the same period of the prior year. Typically, for the Bank, non-conforming loans have been sold at higher gain levels compared with conforming loan sales due to pricing methodology differences (including loan origination fees collected) at the time the loans are originated. Non-interest expense was $3,324,000 for the three months ended September 30, 1996, compared to $1,845,000 for the three months ended September 30, 1995. The assessment to recapitalize the SAIF is directly responsible for the significant increase in non-interest expense. On September 30, 1996, the federal government mandated an industry wide assessment to recapitalize the SAIF, which is a part of the FDIC. The special assessment was charged to savings associations with insured deposits by the SAIF. The assessment was calculated at 0.657% of insured deposits as of March 31, 1995. The Bank's portion of the assessment was $1,330,000 and is included in non-interest expense for the quarter ended September 30, 1996. The assessment is payable on November 27, 1996. -11- 1ST BANCORP AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations While the immediate effect on earnings of the one-time assessment is significant, future earnings will be augmented by lower deposit insurance premiums. Based on the latest information available, it is anticipated that the Bank will begin paying an approximately 0.065% premium for insured deposits as of January 1, 1997, compared with the current premium rate of 0.23%. (C) Capital Resources and Liquidity: The Corporation is subject to regulation as a savings and loan holding company by the Office of Thrift Supervision ("OTS"). First Federal Bank, A Federal Savings Bank, as a subsidiary of a savings and loan holding company, is subject to certain restrictions in its dealings with the Corporation. The Bank is subject to the regulatory requirements applicable to a federal savings bank. Current capital regulations require savings institutions to have minimum tangible capital equal to 1.5% of total assets and a minimum 3% core capital ratio. Additionally, savings institutions are required to meet a risk-based capital ratio equal to 8.0% of risk-weighted assets. At September 30, 1996, the Bank met all current capital requirements. The following is a summary of the Bank's regulatory capital and capital requirements at September 30, 1996: Tangible Core Risk-Based Capital Capital Capital ----------- ----------- ----------- Regulatory Capital $22,415,000 $22,415,000 $22,820,000 Minimum Capital Requirement 3,873,000 7,746,000 10,181,000 ----------- ----------- ----------- Excess Capital $18,542,000 $14,669,000 $12,639,000 Regulatory Capital Ratio 8.68% 8.68% 17.93% Required Capital Ratio 1.50% 3.00% 8.00% During the quarter ended September 30, 1996, 1ST BANCORP paid a $0.10 dividend per share to shareholders. This is the sixteenth consecutive quarterly dividend 1ST BANCORP has paid to shareholders. -12- 1ST BANCORP AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity measures the Bank's ability to meet savings withdrawals and lending commitments. Management believes that liquidity is adequate to meet current requirements, including the funding of $20,637,000 in loan commitments and $1,251,000 of loans in process outstanding at September 30, 1996. The majority of these commitments are expected to be funded within the three month period ending December 31, 1996. At September 30, 1996, the Bank had $4,380,000 in outstanding commitments to sell mortgage loans and mortgage-backed securities. The Bank maintains liquidity of at least 5% of net withdrawable assets. The liquidity ratio at September 30, 1996 was 12.03%. In August 1996, the Board authorized the repurchase of up to 5% of the outstanding shares of common stock (670,131 shares were outstanding at the time), subject to market conditions, over a two year period which expires in August 1998. There have been no repurchases of stock under this plan. There are no other known trends, events, or uncertainties, including current recommendations by regulatory authorities, that should have, or that are reasonably likely to have, a material effect on the liquidity, capital resources, or operations of 1ST BANCORP. -13- PART II. OTHER INFORMATION Item 1. Legal Proceedings. First Federal is involved in two lawsuits that are not in the ordinary course of business. The first involves a discrimination complaint filed regarding the Bank's lending practices. The second lawsuit was filed by a title company providing closing services for a mortgage loan that was purchased by the Bank from a third party mortgage company subsequent to closing, and alleges the mortgage company was acting as an agent for the Bank and failed to provide funds for closing the transaction in exchange for the note and deed of trust. First Federal received a summary judgement in its favor in this case. The plaintiffs are appealing the court's decision. It is the opinion of management that, based on current information available, the ultimate resolutions of these matters will not have a material adverse effect on the Corporation's financial position. Other than the above, neither 1ST BANCORP nor its subsidiaries is involved in any legal proceedings, other than routine proceedings occurring in the ordinary course of its business. Item 4. Submission of Matters to a Vote of Security Holders. There were no matters submitted to a vote of security holders during the quarter ended September 30, 1996. Item 6. Exhibits and Reports on Form 8-K a) The following exhibit is filed herewith: Exhibit 27 Financial Data Schedule b) Reports on Form 8-K -- There were no reports on Form 8-K filed during the three months ended September 30, 1996. -14- 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. 1ST BANCORP Date: November 12, 1996 By: /s/ C. James McCormick -------------------------- C. James McCormick, Chairman and Chief Executive Officer Date: November 12, 1996 By: /s/ Frank D. Baracani ----------------------------- Frank D. Baracani, President Date: November 12, 1996 By: /s/ Mary Lynn Stenftenagel --------------------------------- Mary Lynn Stenftenagel, Secretary-Treasurer and Chief Accounting Officer -15- EX-27 2 FDS FOR 1ST BANCORP
9 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM 1ST BANCORP AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000840458 1ST BANCORP 1,000 U.S. DOLLARS 3-MOS JUN-30-1996 JUL-1-1996 SEP-30-1996 1.000 438 13,385 0 0 10,453 43,592 42,460 176,127 903 257,960 134,006 0 3,899 98,905 0 0 671 20,479 257,960 3,595 927 187 4,709 1,829 3,267 1,442 46 0 3,324 (1,055) (631) 0 0 (631) (0.94) (0.94) 7.53 690 0 0 795 896 40 1 903 498 0 405
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