-----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, IVSNSU6+wjPgiLBI9gOORqCMjctlSBSa557w1ncRCsHxZXZZq4LvyNJYO+HezsaJ VRAaXLGHtB5GvJEaiSf/8Q== 0001013680-00-000030.txt : 20000515 0001013680-00-000030.hdr.sgml : 20000515 ACCESSION NUMBER: 0001013680-00-000030 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000512 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FC BANC CORP CENTRAL INDEX KEY: 0000893539 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 341718070 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-25616 FILM NUMBER: 628998 BUSINESS ADDRESS: STREET 1: FARMERS CITIZENS BANK BLDG STREET 2: 105 WASHINGTON SQ BOX 567 CITY: BUCYRUS STATE: OH ZIP: 44820 BUSINESS PHONE: 4195627040 10QSB 1 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-QSB (Mark One) [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000. [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO __________ Commission file number - 33-53596 FC BANC CORP ------------ (Exact name of small business issuer as specified in its charter) OHIO 34-1718070 - ------------------------------- ---------------------------------- (State or other jurisdiction of incorporation or organization) (I.R.S.Employer Identification No.) Farmers Citizens Bank Building, 105 Washington Square Box 567, Bucyrus, Ohio 44820-0567 ---------------------- ---------- (Address of principal executive offices) (Zip Code) (419) 562-7040 -------------- (Issuer's telephone number) N/A --- (Former name, former address and former fiscal year, if changed since last report) As of April 30, 2000, 620,398 shares of Common Stock of the Registrant were outstanding. There were no preferred shares outstanding. FC BANC CORP. BUCYRUS, OHIO FORM 10-QSB INDEX Page Number PART I FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Condensed consolidated balance sheets -- 3 March 31, 2000 and December 31, 1999 Condensed consolidated statements of income -- 4 Three months ended March 31, 2000 and 1999 Condensed consolidated statements of changes in Shareholders' equity -- Three months ended March 31, 2000 5 and year ended December 31, 1999 Condensed consolidated statement of cash flows -- 6 Three months ended March 31, 2000 and 1999 Notes to condensed consolidated financial statements-- 7 March 31, 2000 and December 31, 1999 Item 2. Management's Discussion and Analysis of Financial 10 Condition and Results of Operations PART II OTHER INFORMATION Item 1. Legal Proceedings 15 Item 2. Changes in Securities 15 Item 3. Defaults upon Senior Securities 15 Item 4. Submission of Matters to a Vote of Security Holders 15 Item 5. Other Information 16 Item 6. Exhibits and Reports on Form 8-K 16 Signatures 16 FC BANC CORP, INC. BUCYRUS, OHIO CONSOLIDATED BALANCE SHEETS ==============================================================================
(Dollars in thousands) (Unaudited) At March 31, At December 31, ------------ --------------- 2000 1999 ---- ---- ASSETS Cash and cash equivalents: Cash and amounts due from banks $ 3,290 $ 4,311 Interest-bearing demand deposits in other banks 10 10 ------- ------- Total cash and cash equivalents 3,300 4,321 Investment securities, available-for-sale 32,614 34,795 Loans 56,600 55,975 Allowance for loan losses (1,665) (1,732) ------- ------- Net Loans 54,935 54,243 Premises and equipment, net 2,098 2,108 Accrued interest receivable 825 683 Cash surrender value of life insurance 2,400 2,373 Deferred income taxes 639 586 Other assets 131 127 ------- ------- TOTAL ASSETS $96,942 $99,236 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY Deposits Noninterest-bearing 10,651 11,426 Interest-bearing 73,218 75,533 ------- ------- Total deposits 83,869 86,959 Borrowed funds 828 29 Accrued interest payable 152 184 Other liabilities 659 662 ------- ------- TOTAL LIABILITIES 85,508 87,834 SHAREHOLDERS' EQUITY Preferred shares of $25 par value; 750 authorized; none issued 0 0 Common shares, no par value; 4,000,000 shares authorized; 665,632 shares issued 832 832 Additional paid-in capital 1,366 1,371 Retained earnings 10,923 10,769 Treasury shares, at cost; 43,022 and 43,441 (1,046) (1,047) Accumulated other comprehensive income (641) (523) ------- ------- TOTAL SHAREHOLDERS' EQUITY 11,434 11,402 ------- ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $96,942 $99,236 ======= =======
- ----------------------- See accompanying notes. FC BANC CORP, INC. BUCYRUS, OHIO CONSOLIDATED STATEMENTS OF INCOME ===============================================================================
(Dollars in thousands) (Unaudited) (Unaudited) 3 Months Ended 3 Months Ended March 31, March 31, --------------- -------------- 2000 1999 ---- ---- INTEREST INCOME Interest and fees on loans $1,195 $1,052 Interest and dividends on investment securities 503 508 Interest on federal funds sold 2 21 ------ ------ TOTAL INTEREST INCOME 1,700 1,581 INTEREST EXPENSE Interest on deposits 651 616 Interest on borrowed funds 8 0 ------ ------ TOTAL INTEREST EXPENSE 659 616 ------ ------ NET INTEREST INCOME 1,041 965 Provision for loan losses (34) (25) ------ ------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 1,075 990 OTHER INCOME Service charges 122 110 Life insurance buildup 29 35 Other income 2 11 ------ ------ TOTAL OTHER INCOME 153 156 OTHER EXPENSES Salaries and employee benefits 442 379 Net occupancy and equipment expenses 154 166 Advertising and public relations 14 35 Directors? fees 22 19 Legal and professional 35 37 State taxes 35 40 Supplies 28 25 Other expenses 151 124 ------ ------ TOTAL OTHER EXPENSES 881 825 ------ ------ NET INCOME BEFORE FEDERAL INCOME TAX EXPENSE 347 321 Federal income tax expense 93 80 ------ ------ NET INCOME $ 254 $ 241 ====== ====== EARNINGS PER SHARE: Earnings per common share - basic $0.41 $0.38 Earnings per common share - diluted $0.40 $0.37 _______________________ See accompanying notes.
FC BANC CORP, INC. BUCYRUS, OHIO CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ===============================================================================
(Dollars in thousands) Number of Shares Amount - ----------------------------------------------------------------------------------------------------------------------------- Accumu- lated other Additional compre- Compre- Common Treasury Common paid-in Retained Treasury hensive hensive stock stock stock capital earnings stock income income ----- ----- ----- ------- -------- ----- ------ ------ Balances at December 31, 1998 665,632 30,703 $832 $1,370 $10,079 $ (685) $ (49) Comprehensive Income Net Income 1,075 $1,075 Other comprehensive income, net of tax: Change in unrealized gain (loss) on securities Available-for-sale, net of Deferred income tax of $237 (474) (474) ------ Total Comprehensive income $ 601 ====== Dividends declared-common ($0.61) per shares (385) Sale of treasury stock (1,000) 1 23 Purchase of 13,738 common shares 13,738 (385) ------- ------ ---- ----- ------ ------ ---- Balances at December 31, 1999 665,632 43,441 832 1,371 10,769 (1,047) (523) Comprehensive Income Net Income 254 $ 254 Other comprehensive income Change in unrealized gain (loss) on securities available-for-sale, net of deferred income tax of $51 (118) (118) ------ Comprehensive income $ 136 ====== Dividends declared -($0.16) per share (100) Sale of treasury stock (2,320) (5) 56 Purchase of common shares 1,901 (55) ------- ------ ---- ------ ------- ------- ----- Balances at March 31, 2000 665,632 43,022 $832 $1,366 $10,923 $(1,046) $(641) ======= ====== ==== ====== ======= ======= =====
- ----------------------- See accompanying notes. FC BANC CORP, INC. BUCYRUS, OHIO CONSOLIDATED STATEMENTS OF CASH FLOWS ===============================================================================
(Dollars in thousands) (Unaudited) (Unaudited) 3 Months Ended 3 Months Ended March 31, March 31, --------- --------- 2000 1999 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 254 $ 241 Adjustments to reconcile net income to net cash Provided by operating activities: Provision for loan losses (34) (25) Income accrued on life insurance contracts (27) (35) Depreciation 87 95 Deferred income taxes (2) (1) Investment securities amortization (accretion), net 24 57 Net change in: Accrued interest receivable (142) (132) Accrued interest payable (32) (32) Other assets (4) (81) Other liabilities (3) (97) ------ ------ Net cash provided by (used in) operating activities 121 (10) ------ ------- CASH FLOWS FROM INVESTING ACTIVITIES Purchases of securities available-for-sale (71) (3,924) Proceeds from maturities of securities available-for-sale 2,059 3,535 Net increase in loans (658) (2,072) Purchase of premises and equipment (77) (267) Purchase of life insurance contracts 0 (505) Net cash provided by (used in) investing activities 1,253 (3,233) ------ ------- CASH FLOWS FROM FINANCING ACTIVITIES: Net increase (decrease) in: Noninterest-bearing, interest bearing, demand, and savings deposits (2,656) (2,185) Certificates of deposit (434) 932 Net increase in short-term borrowed funds 799 0 Exercise of stock options 51 0 Purchase of treasury stock (54) (36) Cash dividends paid (100) 0 ------ ------ Net cash used in financing activities (2,395) (1,289) ------ ------ NET DECREASE IN CASH AND CASH EQUIVALENTS (1,021) (4,532) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 4,321 7,469 ------ ------ CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 3,300 $ 2,937 ======= ======= SUPPLEMENTAL DISCLOSURES Cash paid during the year for interest $691 $648 Cash paid during the year for income taxes 59 171
_______________________ See accompanying notes. FC BANC CORP. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2000, and December 31,1999 (Unaudited) ============================================================================ NOTE 1. BASIS OF PRESENTATION In the opinion of Management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of FC Banc Corp.'s ("Company" or "Bancorp") financial position as of March 31, 2000, and December 31, 1999, and the results of operations for the three months ended March 31, 2000 and 1999, and the cash flows for the three months ended March 31, 1999 and 2000. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-KSB. The results of operations for the three months ended March 31, 2000, are not necessarily indicative of the results which may be expected for the entire fiscal year. NOTE 2. ALLOWANCE FOR LOAN LOSSES Activity in the allowance for loan losses is summarized as follows:
(Dollars in thousands) Three months ended Year ended March 31, December 31, 2000 1999 ---- ---- Balance, beginning of period $1,732 $1,725 Provision for loan losses (34) (130) Recoveries 6 205 Charge-offs (39) (68) ------ ------ Balance, end of period $1,665 $1,732 ====== ======
NOTE 3. REGULATORY CAPITAL The following table illustrates the compliance by the Bank with currently applicable regulatory capital requirements at March 31, 2000.
(Dollars in thousands) Categorized as "Well Capitalized" Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions ------ ----------------- ----------------- Amount Ratio Amount Ratio Amount Ratio ------ ----- ------ ----- ------ ----- Total Risk-Based Capital (To Risk-Weighted Assets) $12,552 21.10% $4,759 8.00% $5,949 10.00% Tier I Capital (To Risk-Weighted Assets) 11,797 19.83% 2,380 4.00% 3,569 6.00% Tier I Capital (To Total Assets) 11,797 12.17% 3,878 4.00% 4,847 5.00% Tangible Capital (To Total Assets) 11,797 12.17% 3,878 4.00% N/A N/A
NOTE 4. EARNINGS PER SHARE Earnings per share ("EPS") is computed in accordance with Statement of Fincial Accounting Standards ("SFAS") No. 128, Earnings per Share" which was adopted by the Company as of December 31, 1997. Common stock equivalents include shares granted under the Stock Option Plan ("SOP"). Following is a reconciliation of the numerators and denominators of the basic and diluted EPS calculations.
For the Three Months Ended March 31, 2000 Income Shares Per Share (Numerator) (Denominator) Amount ----------- ------------- ------ Basic EPS Income available to common shareholders $253,715 623,079 $0.41 Effect of dilutive securities: None 9,758 ($0.01) ------- ------ Diluted EPS Income available to common shareholders + assumed conversions $253,715 632,837 $0.40 ======== ======= ====== NOTE 5. RECLASSIFICATIONS Certain amounts in the prior period's financial statements have been reclassified to be consistent with the current period's presentation. The reclassifications have no effect on net income. FC BANC CORP. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ============================================================================== Safe Harbor Clause This report contains certain "forward-looking statements." The Company desires to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and is including this statement for the express purpose of availing itself of the protection of such safe harbor with respect to all such forward-looking statements. These forward-looking statements, which are included in Management's Discussion and Analysis, describe future plans or strategies and include the Company's expectations of future financial results. The words "believe," "expect," "anticipate," "estimate," "project," and similar expressions identify forward-looking statements. The Company's ability to predict results or the effect of future plans or strategies is inherently uncertain. Factors which could affect actual results include interest rate trends, the general economic climate in the Company's market area and the country as a whole, loan delinquency rates, and changes in federal and state regulations. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. General The Company is a bank holding company whose activities are primarily limited to holding the stock of The Farmers Citizens Bank, Bucyrus, Ohio, ("Bank"). The Bank conducts a general banking business in northwest Ohio that consists of attracting deposits from the general public and applying those funds to the origination of loans for residential, consumer and non-residential purposes. The Bank's profitability is significantly dependent on net interest income that is the difference between interest income generated from interest-earning assets (i.e., loans and investments) and the interest expense paid on interest-bearing liabilities (i.e., customer deposits and borrowed funds). Net interest income is affected by the relative amount of interest- earning assets and interest-bearing liabilities and interest received or paid on these balances. The level of interest rates paid or received by the Bank can be significantly influenced by a number of environmental factors, such as environmental factors, such as governmental monetary policy, that are outside of management control. Earnings per common share were computed by dividing net income by the weighted-average number of shares outstanding for the three-month periods ended March 31, 2000 and 1999. The consolidated financial information presented herein has been prepared in accordance with generally accepted accounting principles ("GAAP") and general accounting practices within the financial services industry. In preparing consolidated financial statements in accordance with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from such estimates. The Company is subject to regulation by the Board of Governors of the Federal Reserve System which limits the activities in which the Company and the Bank may engage. The Bank is supervised by the State of Ohio, Division of Financial Institutions and its deposits are insured up to applicable limits under the Bank Insurance Fund ("BIF") of the Federal Deposit Insurance Corporation ("FDIC"). The Bank is a member of the Federal Reserve System and is subject to its supervision. The Company and the Bank must file with the U.S. Securities and Exchange Commission, the Federal Reserve Board and Ohio Division of Financial Institutions the prescribed periodic reports containing full and accurate statements of its affairs. In May 2000 the Bank will open its newest banking center in Fredericktown, Ohio. The Bank will then have five banking offices located in Crawford, Morrow and Knox Counties, Ohio. The primary market area of the Bank is North Central Ohio that includes Crawford, Morrow, Knox and contiguous counties. The Bank continues to focus on providing First*Class Banking (TM) to its customers. In April, 2000 the Bank introduced Phone*Access Banking (TM) (1-877-562-4FCB) that allows customers to access their bank account information 24 hours a day. Also, the Bank has engaged FundsExpress to assist in the development of internet banking products that will offer new and existing customers a hometown banking experience while utilizing the latest in banking technology. In addition, the Bank's board of directors approved the demolition and reconstruction of our Main Office located at 105 Washington Square, Bucyrus, Ohio. The work should begin sometime during the third or fourth quarter of 2000 and be completed in 2001. This project will allow the Bank to modernize its existing banking facility and improve upon current operating efficiencies. Changes in Financial Condition At March 31, 2000, the consolidated assets of the Company totaled $96.9 million, a decrease of $2.3 million, or 2.31%, from $99.2 million at December 31, 1999. The decrease in total assets resulted primarily from a $3.1 million decrease in deposits. Net loans receivable increased by $0.7 million, or 1.28%, to $54.9 million at March 31, 2000, compared to $54.2 million at December 31, 1999. Loans secured by real estate and consumer loans increased $1.0 million and $0.2 million, respectively. Somewhat offsetting these increases was a decline in Commercial loans of $0.5 million. Growth in residential real estate loans has slowed as compared to 1999 due to the rise in mortgage lending rates and the resignation of a Bank lending officer in December 1999. The decline in commercial loans resulted primarily from reductions in agricultural operating lines of credit that will be drawn upon in the second quarter of 2000. Investment securities declined by $2.2 million, or 6.27% to $32.6 million at March 31, 2000, compared to $34.8 million at December 31, 1999. The decline was used to fund loan growth and other operations of the Bank. Cash and amounts due from banks declined by $1.0 million to $3.3 million at March 31, 2000, compared to $4.3 million at December 31, 1999. The decline was attributable to the reduction of cash reserves that were set aside for potential problems related to the Year 2000 ("Y2K"). The Bank did not experience any losses related to Y2K, therefore $1.0 million was reinvested into earning assets in January 2000. Deposit liabilities decreased by $3.1 million, or 3.55%, to $83.9 million at March 31, 2000, from $87.0 million at December 31, 1999. The decline was attributable to the loss of public funds and disbursement of funds from the settlement of a significant estate. Money market, savings and certificates of deposit balances declined by $1.4 million, $0.9 million and $0.5 million, respectively. From time to time the Bank's Asset/Liability management committee will allow certain high yielding deposits to leave the Bank (For further explanation see the last two paragraphs of this section). Total shareholders' equity remained at $11.4 million at March 31, 2000 as compared to December 31, 1999. During the firs three months of 2000 the Bank earned net income of $0.2 million that was offset by the payment of dividends of $0.1 million and the reduction of other comprehensive income (unrealized losses on securities available for sale) of $0.1 million. The Bank's liquidity, primarily represented by cash and cash equivalents, is a result of its operating, investing and financing activities. Principal sources of funds are deposits, loan and mortgage-backed security repayments, maturities of securities and other funds provided by operations. The Bank also has the ability to borrow from the Federal Home Bank of Cincinnati ("FHLB") as well as the Federal Reserve Bank of Cleveland ("FRB" or "FED"). While scheduled loan repayments and maturing investments are relatively predictable, deposit flows and early loan and mortgage-backed security prepayments are more influenced by interest rates, general economic conditions and competition. The Bank maintains investments in liquid assets based upon management's assessment of (i) the need for funds, (ii) expected deposit flows, (iii) the yields available on short-term liquid assets and (iv) the objectives of the asset/liability management program. In the ordinary course of business, part of such liquid investments is composed of deposits at correspondent banks. Although the amount on deposit at such banks often exceeds the $100,000 limit covered by FDIC insurance, the Bank monitors the capital of such institutions to ensure that such deposits do not expose the Bank to undue risk of loss. The Asset/Liability Management Committee of the Bank is responsible for liquidity management. This committee, which is comprised of various managers, has an Asset/Liability Policy that covers all assets and liabilities, as well as off-balance sheet items that are potential sources and uses of liquidity. The Bank's liquidity management objective is to maintain the ability to meet commitments to fund loans and to purchase securities, as well as to repay deposits and other liabilities in accordance with their terms. The Bank's overall approach to liquidity management is to ensure that sources of liquidity are sufficient in amounts and diversity to accommodate changes in loan demand and deposit fluctuations without a material adverse impact on net income. The Committee monitors the Bank's liquidity needs on an ongoing basis. Currently the Bank has several sources available for both short- and long-term liquidity needs. These include, but are not restricted to advances from the FHLB, Federal Funds and borrowings from the Fed and other correspondent banks. The Bank is subject to various regulatory capital requirements administered by its primary federal regulator, the FRB. Failure to meet minimum capital requirements can initiate certain mandatory, and possible additional discretionary actions by regulators that, if undertaken, could have a material affect on the Company and the consolidated financial statements. Under the regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classification under the prompt corrective action guidelines are also subject to qualitative judgements by the regulators about components, risk weighing, and other factors. Qualitative measures established by the regulation to ensure capital adequacy requires the Bank to maintain minimum amounts and ratios of: total risk-based capital and Tier I capital to risk-weighted assets (as defined by the regulations), and Tier I capital to average assets (as defined). Management believes, as of March 31, 2000, that the Bank meets all of the capital adequacy requirements to which it is subject. As of December 31, 1999, the most recent notification from the FDIC, the Bank was categorized as well capitalized under the regulatory framework for prompt corrective action. To remain categorized as well capitalized, the Bank will have to maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as disclosed in Note 3 - Regulatory Capital. There are no conditions or events since the most recent notification that management believes have changed the Bank's prompt corrective action category. At March 31, 2000, FC Banc Corp. had approximately $254,000 in commitments for capital expenditures. Results of Operations Comparison of Three Months Ended March 31, 2000 and 1999 General. Net income increased during the first quarter of 2000 as compared to the same three-month period ended March 31, 1999. Net income amounted to $254 thousand versus $241 thousand, an increase of $13 thousand, or 5.39%. The increase was primarily attributed to an increase in net interest income and a negative provision for possible loan losses. The increase was partially offset by increases in salary and benefits, and other general operating expenses. Interest Income. The increase in average earning assets was the primary contributing factor to the increase in net interest income of $76 thousand, or 7.88%, for the three months ended March 31, 2000 compared to 1999. Loan interest and fee income increased by $143 thousand resulting primarily from an increase in loans receivable. Loans receivable as of March 31, 2000 were $56.6 million up $8.9 million as compared to March 31, 1999. The Bank increased its loan to deposit ratio from 59.58% at March 31, 1999 to 67.42% at March 31, 2000. The growth in loans was partially off-set by a $19 thousand decrease in income from federal funds sold and an increase of $43 thousand in interest expense. Interest Expense. Interest expense on deposit liabilities increased by $35 thousand, or 5.68% for the three months ended March 31, 2000, as compared to the same period in 1999. Total deposits increased by $3.8 million comparing March 31, 2000, to 1999. In addition, short-term borrowings increased by $828 thousand at March 31, 2000 as compare to March 31, 1999. During the first quarter of 1999 to the first quarter of 2000 the average Fed Funds rate increased from 4.73% to 5.68% or 95 basis points. The Bank's average cost of funds (including short-term borrowings) for the first three months of 2000 was 3.15%, as compared to 3.11% for the same period in 1999. Provision for Loan Losses. The Bank recorded net chargeoffs of $33 thousand during the three months ended March 31, 2000, compared to net recoveries of $2 thousand during the same period in 1999. However, in early April the Bank recovered $39 thousand on loans charged off in March 2000. Based upon continued strong credit quality the Bank recorded a negative provision for loan losses during the first quarter in 2000 of $34 thousand as compared to a negative provision of $25 thousand for the first quarter of 1999. The negative provision was based upon the results of the ongoing loan reviews and composition of the loan portfolio, primarily loans secured by one- to four-family residential properties and other forms of collateral, which are considered to have less risk. Non-Interest Income. Non-interest income declined by $3 thousand, or 1.92%, to $153 thousand for the three months ended March 31, 2000, from $156 thousand for the three months ended March 31, 1999. The decline was primarily attributable to a reduction in cash surrender values of $6 thousand for former key executives and a reduction of $5 thousand in rental property income. No security gains or losses were recognized for the periods of March 31, 2000 and 1999. Non-Interest Expense. Non-interest expense increased by $56 thousand, or 6.79%%, to $881 thousand for the three months ended March 31, 2000, from $825 thousand in the comparable period in 1999. Of this $63 thousand was attributable to an increase in compensation and benefit expense in 2000, reflecting increased personnel costs for staffing the Bank's new Fredericktown office (scheduled to open in May 2000), hiring of a Vice President, and nominal salary and benefit adjustments. The non-interest expense to revenue ratio ("NIE/Revenue") measured 73.79% and 73.60% for the three months ended March 31, 2000 and 1999, respectively. The NIE/Revenue ratio reflects the investment costs associated with upgrading the Bank's infrastructure as it expands into new markets. Income Taxes. The provision for income taxes increased by $13 thousand for the three months ended March 31, 2000, compared with the prior year, primarily as a result of higher taxable income for the quarter. FC BANC CORP. PART II - OTHER INFORMATION ============================================================================== ITEM 1 - LEGAL PROCEEDINGS Not Applicable ITEM 2 - CHANGES IN SECURITIES Not Applicable ITEM 3 - DEFAULTS UPON SENIOR SECURITIES Not Applicable ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS On March 22, 2000, the Corporation held its Annual Meeting of Shareholders. Each of the three directors nominated were elected to terms of three (3) years expiring in 2003 by the following votes: David G. Dostal For: 406,517 Withheld: 2,755 ------- ----- Robert D. Hord For: 407,025 Withheld: 2,257 ------- ----- Joan C. Stemen For: 406,801 Withheld: 2,481 ------- ----- Two other matters were submitted to the shareholders, for which the following votes were cast: 2. Approval of Patrick J. Drouhard to serve on the Board of Directors on an interim basis to fill the vacancy created by the December 31, 1999 resignation of James P. Pigman: For: 403,962 Against: 5,320 ------- ----- 3. Ratification of the selection of Robb, Dixon, Francis, Davis, & Company as the auditors of FC Banc Corp. for the current year: For: 393,762 Against: 461 Abstain: 15,059 _______ ___ ______ ITEM 5 - OTHER INFORMATION Not Applicable ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K 1. Exhibit 27: Financial Data Schedule 2. A report on Form 8-K was filed on January 13, 2000 announcing the resignation of Director Pigman. SIGNATURES In accordance with 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, hereunto duly authorized. FC BANC CORP. May 12, 2000 /s/ G. W. Holden - -------------------------------- -------------------------------- Date G. W. Holden President and Chief Executive Officer May 12, 2000 /s/ Jeffrey Wise - ------------------------------- -------------------------------- Date Jeffrey Wise Principal Financial Officer
EX-27 2
9 The schedule contains summary financial information extracted from the Consolidated Balance Sheets as of March 31, 2000, and December 31, 1999, and the related Consolidated Statement os Income for the three months ended March 31, 2000 and 1999, and is qualified in its entirety by reference to such financial statements. 0000893539 FC BANC CORP 1,000 US DOLLARS 3-MOS DEC-31-1999 JAN-01-2000 MAR-31-2000 1 3,290 10 0 0 32,614 0 0 56,600 1,665 96,942 83,869 828 811 0 832 0 0 10,602 96,942 1,195 503 2 1,700 651 659 1,041 (34) 0 881 347 254 0 0 254 0.41 0.40 470 0 0 0 0 1,732 39 6 1,665 1,665 0 70
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