-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, tf9tz/WkVoGmspPMxXDn0rMvyDtTH2i8gTWsrsCN19Sttk1lZRQ/PRz7dMnVB5eX LYOf8K0JhYZ/0ozQjVcueg== 0000702904-95-000012.txt : 19950512 0000702904-95-000012.hdr.sgml : 19950512 ACCESSION NUMBER: 0000702904-95-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950511 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMBANC CORP CENTRAL INDEX KEY: 0000702904 STANDARD INDUSTRIAL CLASSIFICATION: 6022 IRS NUMBER: 351525227 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-10710 FILM NUMBER: 95536500 BUSINESS ADDRESS: STREET 1: 302 MAIN ST STREET 2: P O BOX 438 CITY: VINCENNES STATE: IN ZIP: 47591 BUSINESS PHONE: 8128823050 MAIL ADDRESS: STREET 1: 302 MAIN STREET CITY: VINCENNES STATE: IN ZIP: 47591 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended March 31, 1995 Commission File Number: 0-10710 AMBANC CORP. (exact name of registrant as specified in its charter) INDIANA 35-1525227 (State or other jurisdiction (I.R.S. Employer ID No.) of incorporation or organization) 302 Main Street P.O. Box 556 Vincennes, Indiana 47591-0556 (Address of principal executive (Zip Code) offices) Registrant's telephone number, including area code (812) 885-6418 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: 2,372,555 common shares of stock were outstanding as of May 11, 1995. PAGE AMBANC CORP. INDEX PART I. FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Balance Sheets at March 31, 1995 (unaudited) and December 31, 1994 Consolidated Statements of Income three months ended March 31, 1995 and 1994(unaudited) Consolidated Statements of Cash Flows for three months ended March 31, 1995 and 1994 (unaudited) Notes to Consolidated Financial Statements (unaudited) Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition PART II. OTHER INFORMATION Item 6. Exhibits and Reports of Form 8-K Signatures Exhibit Index PAGE
AMBANC CORP. CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except share data) March 31, December 31, 1995 1994 ASSETS Cash and due from banks $ 16,540 $ 19,595 Federal funds sold 8,625 7,000 Total cash and cash equivalents 25,165 26,595 Interest bearing deposits in other banks 994 1,193 Securities available for sale at market 109,950 112,214 Securities held to maturity(market values of $38,535 and $38,707 at March 31, 1995, and December 31, 1994) 38,545 39,695 Loans held for sale 2,775 2,664 Loans, net of unearned income 342,477 321,096 Allowance for loan losses (3,955) (3,911) Loans, net 338,522 317,185 Premises, furniture and equipment, net 6,341 6,487 Accrued interest receivable and other assets 10,391 10,063 TOTAL ASSETS $ 532,683 $ 516,096 LIABILITIES Noninterest bearing deposits $ 45,479 $ 51,838 Interest bearing deposits 426,606 403,396 Total deposits 472,085 455,234 Short-term borrowings 3,417 5,690 Long-term debt 2,870 3,189 Accrued interest payable and other liabilities 3,231 2,946 TOTAL LIABILITIES 481,603 467,059 SHAREHOLDERS' EQUITY Preferred stock, $10 par value, 200,000 shares authorized, no shares issued or outstanding -- -- Common stock, $10 par value, 5,000,000 shares authorized, 2,372,555 and 2,372,172 shares issued and outstanding at March 31, 1995, and December 31, 1994 23,726 23,722 Retained earnings 29,198 28,277 Unrealized gain/(loss) on securities available for sale (1,844) (2,962) TOTAL SHAREHOLDERS' EQUITY 51,080 49,037 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 532,683 $ 516,096 PAGE
AMBANC CORP. CONSOLIDATED STATEMENTS OF INCOME (Dollar amounts in thousands, except share data) Three Months Ended March 31, 1995 1994 INTEREST INCOME Interest and fees on loans $ 7,253 $ 5,499 Interest and fees on loans held for sale 42 278 Interest on securities Taxable 1,599 1,862 Tax exempt 555 566 Other interest 66 100 TOTAL INTEREST INCOME 9,515 8,305 INTEREST EXPENSE Interest on deposits 4,221 3,597 Interest on short-term borrowings 98 42 Interest on long-term debt 44 27 TOTAL INTEREST EXPENSE 4,363 3,666 NET INTEREST INCOME 5,152 4,639 Provision for loan losses 75 50 NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 5,077 4,589 NONINTEREST INCOME Income from fiduciary activities 101 120 Service charges on deposit accounts 299 255 Gain/(loss) on securities -- (5) Other operating income 209 323 TOTAL NONINTEREST INCOME 609 693 NONINTEREST EXPENSE Salaries and employees benefits 1,986 1,790 Occupancy expenses, net 213 200 Equipment expenses 210 196 Data processing expenses 90 110 FDIC insurance 256 253 Other operating expenses 964 972 TOTAL NONINTEREST EXPENSE 3,719 3,521 INCOME BEFORE INCOME TAXES 1,967 1,761 Taxes 557 525 NET INCOME $ 1,410 $ 1,236 EARNINGS PER COMMON SHARE(based on 2,372,542 and 2,369,784 average outstanding shares in 1995 and 1994) Net income per share $ .59 $ .52 PAGE
AMBANC CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar amounts in thousands, except share data) Three Months Ended March 31, 1995 1994 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 1,410 $ 1,236 Adjustments to reconcile net income to net cash from operating activities: Net premium amortization and discount accretion on securities 76 107 Depreciation 210 220 Provision for loan losses 75 50 (Gain)/loss on securities -- 5 Net change in loans held for sale (111) 8,235 Accrued interest receivable and other assets (328) (1,016) Accrued interest payable and other liabilities 1,403 (2,044) Deferred loan fees net of costs 29 7 NET CASH FROM OPERATING ACTIVITES 2,764 6,800 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales of securities available for sale -- 999 Proceeds from sale of securities held to maturity -- -- Proceeds from maturities and calls of securities available for sale 4,179 17,923 Proceeds from maturities and calls of securities held to maturity 8,073 1,724 Purchases of securities available for sale (1,980) (26,107) Purchases of securities held to maturity (6,934) (3,220) Net change in interest bearing deposits in other banks 199 (1,472) Loans made to customers, net of payments collected (23,351) (9,020) Loans purchased -- (699) Proceeds from sales of loans 1,910 1,122 Property and equipment expenditures (64) (467) NET CASH FROM INVESTING ACTIVITIES (17,968) (19,217) PAGE
AMBANC CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued (Dollar amounts in thousands, except share data) Three Months Ended March 31, 1995 1994 CASH FLOWS FROM FINANCING ACTIVIES Net change in demand deposits and savings accounts (5,002) (3,509) Net change in certificates of deposit 21,853 (3,844) Net change in short-term borrowings (2,273) 1,303 Payments on long-term debt (339) -- Proceeds on long-term debt 20 2,500 Issuance of stock for dividend reinvestment 12 -- Dividends paid (497) (381) NET CASH FROM FINANCING ACTIVITIES 13,774 (3,931) NET CHANGE IN CASH AND CASH EQUIVALENTS (1,430) (16,348) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 26,595 32,510 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 25,165 $ 16,162 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the period ended March 31: Interest $ 4,103 $ 3,676 Income taxes 100 344 PAGE AMBANC CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS As of and for the three months ended March 31, 1995 (Dollar amounts in thousands, except share data) ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS Effective June 1, 1994, AMBANC Corp. completed the acquisition of Lincolnland Bancshares, Inc. of Casey, Illinois (LBI). The acquisition, which has been accounted for as a pooling of interests, involved the issuance of 542,464 shares of AMBANC Corp. common stock in exchange for the 160,000 shares of outstanding common stock of LBI. No fractional shares were issued and AMBANC Corp. paid $4 for 126 equivalent fractional shares and issued 542,338 common shares in the LBI acquisition. At the conclusion of the acquisition, LBI was merged into AMBANC Corp. and its wholly owned subsidiary, Bank of Casey, Casey, Illinois, an Illinois State-Chartered banking association, became a direct, wholly owned subsidiary of AMBANC Corp. The balance sheet at December 31, 1994, and the statement of income and statement of cash flow for the three months ended March 31, 1994, represent the retroactive restatement, under the pooling of interests basis, of information for LBI and the previous AMBANC Corp. The following page presents the consolidated three month income statement for the previous AMBANC Corp. and LBI at March 31, 1994. PAGE
AMBANC CORP. CONSOLIDATED STATEMENT OF INCOME (Dollar amounts in thousands, except share data) Three Months Ended March 31, 1994 LBI Consolidated Total interest income $ 6,768 $ 1,537 $ 8,305 Total interest expense 2,959 707 3,666 Net interest income before provision for loan losses 3,809 830 4,639 Provision for loan losses 50 -- 50 Net interest income after provision for loan losses 3,759 830 4,589 Total other income 608 85 693 Total other expense 2,836 685 3,521 Income taxes 440 85 525 Net income $ 1,091 $ 145 $ 1,236 Earnings per common share (based on 2,369,784 average outstanding shares) $ .52 AMBANC CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS As of and for the three months ended March 31, 1995 (Dollar amounts in thousands, except share data) ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS - continued The Consolidated balance sheet as of March 31, 1995, consolidated statements of income for the three month period ended March 31, 1995 and 1994, and the consolidated statements of cash flows for the three month period ended March 31, 1995 and 1994, have been prepared by the Corporation, without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows at March 31, 1995, and all periods presented, have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Corporation's December 31, 1994, annual report to shareholders. The results of operations for the period ended March 31, 1995, are not necessarily indicative of the operating results for the full year. COMMITMENTS AND CONTINGENT LIABILITIES Other than ordinary routine litigation incidental to the business, there are no material pending legal proceedings to which the Corporation or its subsidiaries are a party or of which any of their property is the subject. PAGE AMBANC CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION As of and for the three months ended March 31, 1995 (Dollar amounts in thousands, except share data) ITEM 2. RESULTS OF OPERATIONS Net interest income is the principal source of the Corporation's earnings and represents the difference between interest income on loans and securities over interest costs of deposits and borrowed funds. Income from certain earning assets is exempt from federal income tax and as customary in the banking industry, changes in net interest income are analyzed on a fully tax equivalent basis. Under this method, and throughout this discussion, nontaxable income on loans and investments is adjusted to an amount which represents the equivalent earnings if such earnings were subject to federal tax. The marginal tax rate used to restate nontaxable income was 34%. Three Months Ended March 31, Increase 1995 1994 (Decrease) Interest income $ 9,515 $ 8,305 14.57 % Adjusted for tax exempt income 320 331 (3.32) Tax equivalent interest income 9,835 $ 8,636 13.88 Interest expense 4,363 3,666 19.01 Net interest income $ 5,472 $ 4,970 10.10 % Net interest income increased $502 or 10.10% for the three months ended March 31, 1995, compared to the three months ended March 31, 1994. This $502 increase is a combination of a $1,199 increase in interest income and a $697 increase in interest expense. The $1,199 increase in interest income is composed of a reduction of $5 due to decreased volume of average interest earning assets and a increase of $1,204 due to increased rates received on these PAGE AMBANC CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION As of and for the three months ended March 31, 1995 (Dollar amounts in thousands, except share data) interest earning assets. The $697 increase in interest expense is a combination of an increase of $39 due to increased volume of average interest bearing liabilities and an increase of $658 due to rate increases on these interest bearing liabilities. Net interest margin was 4.59% during the first three months of 1995 and 4.16% for the first three months of 1994. The Corporation's percent of average earning assets to total average assets decreased to 94.40% for the first three months of 1995 from 95.02% for the first three months of 1994. The yields on average interest earning assets have increased to 8.24% for the first three months of 1995 from 7.24% for the first three months of 1994 for an increase of 1.00%. The costs on average interest bearing liabilities have also increased to 4.26% for the first three months of 1995 from 3.62% for the first three months of 1994 for an increase of .64%. This leaves the interest spread which is the mathematical difference between yields on average interest bearing assets and costs on average interest bearing liabilities at 3.98% for the first three months of 1995 compared to 3.62% for the first three months of 1994. The provision for loan loss was $75 during the first three months of 1995 compared to $50 during the first three months of 1994. The allowance for loan loss at March 31, 1995, was $3,955 or 1.15% of total loans less unearned income as compared to $3,911 or 1.22% of total loans less unearned income at December 31, 1994. During the first three months of 1995, loans charged off were $94 and recoveries from previously written off loans were $63, thus net charge offs for the first quarter of 1995 were $31. The adequacy of the allowance for loan loss is analyzed by management of each bank subsidiary based upon review of identified loans with more than a normal degree of risk, historical loan loss percentage by type of loan and present and forecasted economic conditions. Management's analysis indicates that the allowance for loan loss at March 31, 1995, is adequate to cover potential losses on identified loans with credit PAGE AMBANC CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION As of and for the three months ended March 31, 1995 (Dollar amounts in thousands, except share data) problems and historical losses on the remaining loan portfolio. The following are ratios of the different types of problem loans as a percent of total loans less unearned income at March 31, 1995, and December 31, 1994: March 31, 1995 December 31, 1994 Nonaccrual loans .26% .18% Loans past due 90 days .04% .20% Performing restructured loans .14% .15% OREO .12% .14% Effective January 1, 1995, the Corporation adopted Financial Accounting Standard No. 114, (FAS 114) "Accounting by Creditors for Impairment of a Loan," as amended by Financial Accounting Standard No. 118, (FAS 118) "Accounting by Creditors for Impairment of a Loan-Income Recognition and Disclosures." These statements require that impaired loans be measured based on the present value of expected future cash flows discounted at the loans' effective interest rates or at the fair value of the underlying collateral and allow existing methods for recognizing interest income. The effect of adopting FAS 114 and FAS 118 was not material to the Financial Statements of the Corporation. At March 31, 1995, the recorded balance of loans that were considered to be impaired under FAS 114 was $2,056 of which $710 were on a nonaccrual basis. Included in this amount were $1,589 of impaired loans for which the related specific allocated reserve for credit losses was $240, and $467 of impaired loans that did not have a specific allocated reserve at March 31, 1995. A summary of the activity in the allowance for loan losses account for the first three months ending March 31, 1995, and 1994 was: 1995 1994 Balance, January 1 $3,911 $3,685 Provision for loan losses 75 50 Loans charged off (94) (64) Recoveries of loans previously charged off 63 129 Balance, March 31 $3,955 $3,800 PAGE AMBANC CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION As of and for the three months ended March 31, 1995 (Dollar amounts in thousands, except share data) Noninterest income for the first three months ended March 31, 1995, was down $84 or 12.12% to $609 as compared to $693 for the three months ended March 31, 1994. Income from fiduciary services was down by $19 or 15.83% to $101 in 1995 from $120 in 1994 and was the result of decreased fees on trust accounts managed. Service charges on deposit accounts were up by $44 or 17.25% to $299 in 1995 from $255 in 1994 due to new and increased fees on deposit accounts. The Corporation sold no securities from securities available for sale during the first quarter of 1995. Other operating income decreased $114 or 35.29% to $209 during the three months ended March 31, 1995, from $323 during the same three months in 1994. This $114 decrease is mainly due to decreases in insurance commission income and the reduction of gain on sales of loans held for sale less a small increase in customer service charges. During the first quarter of 1994 mortgage rates were increasing and the Corporation sold $18,146 of the conforming fixed rate mortgage loans, classified as loans held for sale on the balance sheet, into the secondary mortgage market and other operating income included $146 related to gains from these sales. Mortgage rates have increased to the point that variable rate mortgage loans, classified as real estate loans on the balance sheet, are replacing fixed rate mortgage loans as the most popular mortgage type. During the first quarter of 1995 the Corporation sold $2,563 of these fixed rate mortgage loans and had gains of $32. The servicing rights on more than 95% of sold fixed rate loans are retained by the Corporation. Noninterest expense for the three months ended March 31, 1995, was $3,719 as compared to $3,521 for the three months ended March 31, 1994, for an increase of $198 or 5.62%. Salaries and employee benefits are the largest portion of noninterest expense and increased $196 or 10.95% in the first three months of 1995 compared to the same time period in 1994. Individual components showed increases in salaries, pension expense and medical insurance less reductions in payroll taxes, education and life insurance. Occupancy expense is up $13 or 6.50% to $213 in 1995 from $200 in 1994 and is due mainly to increased depreciation, building repairs and maintenance and utilities less a decrease in property insurance expense. Equipment expense is up by $14 or 7.14% to $210 in 1995 from $196 in 1994 due mainly to increases in depreciation and contract expense related to new branches. PAGE AMBANC CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION As of and for the three months ended March 31, 1995 (Dollar amounts in thousands, except share data) Data processing expense decreased $20 or 18.18% to $90 in 1995 from $110 in 1994 and is due to a reduction in depreciation and continued efficiencies resulting from consolidating operations. The FDIC insurance expense remained almost constant with only a $3 or 1.19% increase which is due to increased deposit balances. The Corporation's subsidiary banks have all been assigned the highest classification by the FDIC and as such continue to pay the lowest possible FDIC deposit insurance rates in both 1995 and 1994. The deposits purchased from a federal savings bank (see financial condition for details) will remain subject to the SAIF rather than BIF deposit insurance rates. The $8 or .82% decrease in other operating expenses to $964 in 1995 from $972 in 1994 is due to many minor increases and decreases. Income before income taxes was up $206 or 11.70% to $1,967 for the first three months of 1995 from $1,761 for the first three months of 1994. The income tax rate as a percent of income before taxes was down to 28.32% in 1995 from 29.81% in 1994 and is due in part to the Corporation having more expenses related to mergers in 1994 than in 1995 which are nondeductible for income tax purposes. The net income for the first three months ended March 31, 1995, was up $174 or 14.08% to $1,410 as compared to $1,236 for the three months ended March 31, 1994. Earnings per share were $.59 in 1995 and were $.52 in 1994. Based upon annualized net income the return on average assets was 1.12% for the first three months of 1995 compared to .98% for the same period in 1994. FINANCIAL CONDITION The Corporation's lead bank, The American National Bank of Vincennes, completed the purchase of $25,462 of deposits from the Princeton, Indiana branch of First Indiana Bank, a Federal Savings Bank, on March 17, 1995. The Corporation has historically had a decrease in total assets during the first quarter due to the year end total assets including institutional public funds on deposit that are not in the first quarters deposits. With these purchased deposits, total assets increased by $16,587 or 3.21% to $532,683 at March 31, 1995, from $516,096 at December 31, 1994. Significant changes in assets from December 31, 1994, to March 31, 1995, include an increase in total loans and a decrease in securities and interest bearing deposits in other banks. PAGE AMBANC CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION As of and for the three months ended March 31, 1995 (Dollar amounts in thousands, except share data) Total securities and interest bearing deposits in other banks decreased $3,613 or 2.36% to $149,489 at March 31, 1995, from $153,102 at December 31, 1994. The effect of FAS 115 and the mark-to-market of securities available for sale added $1,781 to securities available for sale during the first quarter of 1995. The FAS 115 negative mark-to-market adjustment at December 31, 1994, was $4,746 and was only $2,965 at March 31, 1995, and is due to the normal market adjustment when interest rates are stabilizing. Without the FAS 115 adjustment, available for sale securities decreased $4,045 or 3.46% from maturities and calls and no sales during the first quarter of 1995. There were no sales or transfers of securities classified as held to maturity during the quarter ended March 31, 1995. Securities held to maturity decreased $1,105 or 2.90% due to maturities or calls. The Corporation has experienced increased loan demand and total loans increased $21,381 or 6.66% to $342,477 at March 31, 1995, from $321,096 at December 31, 1994. Commercial loans have increased $16,447 or 10.28% to $176,361 at March 31, 1995, from $159,914 at December 31, 1994. Included in this increase is $6,947 of short-term commercial paper and bankers acceptances that were acquired with funds from the purchased deposits. Without these loans, commercial loans still increased $9,500 or 5.94% during the quarter. Real estate loans increased $3,846 or 4.84% to $83,310 at March 31, 1995, from $79,464 at December 31, 1994. As noted previously, the renewed interest in variable rate mortgage loans has caused this increase. Installment loans increased $1,088 or 1.33% to $82,806 at March 31, 1995, from $81,718 at December 31, 1994. Accrued interest receivable and other assets increased $328 or 3.26% at March 31, 1995, from December 31, 1994. This account does include $1,777 of new goodwill associated with the purchased deposits. Total deposits increased $16,851 or 3.70% during the first three months of 1995. Noninterest bearing deposits decreased $6,359 or 12.27% from normal reductions of institutional public funds on deposit at December 31, 1994, and not on deposit at March 31, 1995. Interest bearing deposits increased $23,210 or 5.75% during the three months ended March 31, 1995, and is due in part PAGE AMBANC CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION As of and for the three months ended March 31, 1995 (Dollar amounts in thousands, except share data) to the purchased deposits. Short-term borrowings consisting of federal funds purchased, repurchase agreements and treasury tax and loan accounts decreased $2,273 or 39.95% at March 31, 1995, from December 31, 1994, as funds were not required for operations. Long-term debt, which is mainly borrowings from the Federal Home Loan Bank that were matched off against specific fixed rate lending programs, decreased $319 or 10.00% at March 31, 1995, from December 31, 1994, due to normal repayments. Total shareholders' equity, including the unrealized loss on securities available for sale, has increased $2,043 or 4.17% to $51,080 at March 31, 1995, from $49,037 at December 31, 1994. The FAS 115 after tax mark-to-market adjustment on the available for sale securities accounted for $1,118 or 2.28% of this increase in total shareholders' equity at March 31, 1995, from December 31, 1994. The Corporation's regulators have issued guidelines stating that the unrealized loss on securities available for sale, other than those related to mutual funds (FAS 115 adjustments), should not be included in shareholders' equity for capital ratio calculations. Total shareholders' equity, excluding the FAS 115 adjustments, was $51,952 at December 31, 1994, and increased $933 or 1.80% to $52,885 at March 31, 1995. This increase is net income of $1,410 less dividends paid of $497 plus $8 related to increased mark-to-market on mutual funds and $12 related to sales of the Corporation's common stock for the dividend reinvestment and stock purchase plan. Capital adequacy in the banking industry is evaluated primarily by the use of three required capital ratios based on three separate calculations; leverage capital, Tier 1 risk-based capital and total risk-based capital. The leverage capital ratio is defined as total ending Tier 1 capital divided by total average assets less intangible assets and FAS 115 adjustments. Tier 1 risk-based capital is defined as Tier 1 capital divided by risk-weighted assets. Total risk-based capital is defined as Tier 1 capital plus Tier 2 capital divided by risk-weighted assets. Tier 1 capital is the sum of the core capital elements (common shareholders' equity, qualifying perpetual preferred stock and minority interest in the equity accounts of consolidated subsidiaries) less intangible assets and the FAS 115 PAGE AMBANC CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION As of and for the three months ended March 31, 1995 (Dollar amounts in thousands, except share data) adjustments. Tier 2 capital consists of the allowance for loan losses (limited to an maximum of 1.25% of risk-weighted assets), perpetual preferred stock and other hybrid capital instruments. Risk-weighted assets are defined to include the assets on the balance sheet and off-balance sheet financial instruments in broad categories that are weighted at 20% to 100% depending on the asset totals within these broad categories. The Corporation's capital ratios at March 31, 1995, and December 31, 1994 were: March 31, 1995 December 31, 1994 Leverage capital ratio 9.86% 10.14% Tier 1 risk-based capital 13.48% 14.32% Total risk-based capital 14.53% 15.41% PENDING ACQUISITION On October 12, 1994, the Corporation executed an Agreement and Plan of Merger that provides for the Corporation to acquire First Robinson Bancorp, the holding company for The First National Bank in Robinson, Robinson, Illinois. The proposed acquisition will be accounted for as a pooling of interests and the Corporation will issue a maximum of approximately 666,090 shares of its common stock in exchange for the 119,200 currently issued and outstanding shares of First Robinson Bancorp. PAGE AMBANC CORP. As of and for the three months ended March 31, 1995 OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 11 Statement of Computation of per share earnings. The copy of this exhibit filed as Exhibit 11 to AMBANC's Annual Report on Form 10-K for the year ended December 31, 1994, is incorporated herein by reference. 27 Financial Data Schedule for March 31, 1995. (b) A Form 8-K was filed with the SEC on March 27, 1995, for the change in auditors from Crowe Chizek & Company to Deloitte & Touche LLP for the year ending December 31, 1995. The change in auditors was effective with the conclusion of the 1994 audit on March 27, 1995. PAGE AMBANC CORP. As of and for the three months ended March 31, 1995 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. AMBANC CORP. (Registrant) DATE: May 11, 1995 BY: R. Watson Robert G. Watson, Chairman of the Board, President and Chief Executive Officer DATE: May 11, 1995 BY: Richard E. Welling Richard E. Welling, Secretary, Treasurer and C.F.O. PAGE AMBANC CORP. As of and for the three months ended March 31, 1995 EXHIBIT INDEX EXHIBITS PAGE 11 Statement of Computation of per * share earnings. The copy of this exhibit filed as Exhibit 11 to AMBANC's Annual Report on Form 10-K for the year ended December 31, 1994, is incorporated herein by reference. 27 Financial Data Schedule for March 31, 1995. * Incorporated by reference from previously filed documents.
EX-27 2
9 0000702904 AMBANC CORP. 1,000 3-MOS DEC-31-1995 MAR-31-1995 16,540 994 8,625 0 109,950 38,545 38,535 342,477 3,955 532,683 472,085 3,417 3,231 2,870 23,726 0 0 27,354 532,683 7,253 2,154 66 9,515 4,221 4,363 5,152 75 0 3,719 1,967 1,410 0 0 1,410 .59 .59 4.32 893 154 472 0 3,911 94 63 3,955 1,790 0 2,165
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