-----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, NoQnK6Nibtiz5357DxInP8j5+RQb9sJhRM/fYleR+fufUcGCFlBKcT2017VuZusC O7LYn2ZSf7MP2PzRsNshLg== 0000950116-99-001423.txt : 19990730 0000950116-99-001423.hdr.sgml : 19990730 ACCESSION NUMBER: 0000950116-99-001423 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990715 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JEFFBANKS INC CENTRAL INDEX KEY: 0000904101 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 232189480 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-14318 FILM NUMBER: 99672615 BUSINESS ADDRESS: STREET 1: 1845 WALNUT ST CITY: PHILADELPHIA STATE: PA ZIP: 19103 BUSINESS PHONE: 2155645040 MAIL ADDRESS: STREET 1: JEFFERSON BANK STREET 2: 2 JEFFERSON BANK CENTER CITY: DOWNINGTONWN STATE: PA ZIP: 19335 FORMER COMPANY: FORMER CONFORMED NAME: STATE BANCSHARES INC /PA/ DATE OF NAME CHANGE: 19930510 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) July 15, 1999 JeffBanks, Inc. (Exact name of registrant as specified in its charter) Pennsylvania 0-22850 23-2189480 (State or other (Commission File (I.R.S. Employer jurisdiction of Number) Identification No.) incorporation) 1845 Walnut Street, Philadelphia, Pennsylvania 19103 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (215) 861-7000 1609 Walnut Street, Philadelphia, Pennsylvania 19103 (Former name or former address, if changed since last Report.) Item 5 Other Events. On July 15, 1999, the Company announced that operating earnings for the second quarter of 1999 increased to $4.2 million in 1999 as compared to $1.9 million in the second quarter of 1998. A copy of the Company's press release is attached to this Form 8-K as an Exhibit and is incorporated herein by reference. Item 7(c) Exhibits. 99. Press Release dated July 15, 1999 by JeffBanks, Inc. 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 hereunto duly authorized. JeffBanks, Inc. Dated: July 29, 1999 By: /s/ Paul Frenkiel ------------------------------ Paul Frenkiel Chief Financial Officer EX-99 2 EXHIBIT 99 NEWS RELEASE NASDAQ: "JEFF" For further information: Paul Frenkiel Chief Financial Officer (610) 343-3211 JEFFBANKS, INC. ANNOUNCES A 121% INCREASE IN OPERATING EARNINGS (July 15, 1999 - Philadelphia, PA) JeffBanks, Inc. (JBI), the holding company of Jefferson Bank (Pennsylvania) and Jefferson Bank New Jersey, announced that operating earnings for the second quarter of 1999 increased by 121%, to $4.2 million in 1999 compared to $1.9 million in the second quarter of 1998. Diluted earnings per share amounted to $.38 and $.17 in those respective periods. Net interest income (FTE) increased to $17.7 million from $15.2 million, an increase of 16%. Return on average assets for the second quarter of 1999 increased to .97% compared to .50% in the second quarter of 1998 (before merger-related non-recurring charges) while return on average equity increased to 12.80% compared to 6.25%, respectively. Operating earnings for the first six months of 1999 increased by 56%, to $8.1 million from $5.2 million in the prior year. Diluted earnings per share amounted to $.74 and $.47 in those respective periods. Return on average assets for the first six months of 1999 increased to .95% compared to .67% in the first six months of 1998 (before merger-related non-recurring charges) while return on average equity increased to 12.30% compared to 8.41%, respectively. Average loans increased 23% to $1.28 billion compared to $1.04 billion for the comparable prior year period. Average total deposits amounted to $1.27 billion at June 30, 1999 up from $1.12 billion at the same date in 1998 representing an increase of 13%, while average non-interest bearing demand deposits increased 28% to $201.4 million from $156.8 million the prior year. At June 30, 1999 fully diluted book value per share was $11.78. Betsy Z. Cohen, CEO stated, "We are excited about the opportunities our alliance with Hudson United will present as we retain and expand the Jefferson brand in the Delaware Valley. We will not only continue to serve our customers with the attentiveness and dedication which remain an inherent part of our corporate culture, but we will add a range of services and capabilities which have been unavailable to our customers. We look forward to the merger closing in the fourth quarter of 1999, and the benefits which will accrue to our customers after that time." All amounts for current and prior periods have been restated to reflect the acquisition of Regent Bancshares Corp. which was accounted for by the pooling of interests method of accounting, which required such restatement. The subsidiaries of JBI are Member FDIC commercial banks which operate 31 branches in the greater Philadelphia region of Pennsylvania and southern New Jersey. JeffBanks, Inc. Consolidated Balance Sheet UNAUDITED
June 30, December 31, 1999 1998 --------- ------------ (in thousands) Assets: Cash and cash equivalents: Cash and due from banks $ 52,207 $ 54,599 Federal funds sold 79,100 0 ---------- ---------- 131,307 54,599 Investment securities available for sale 313,281 301,366 Investment securities held to maturity 675 677 Mortgages held for sale 19,951 14,600 Loans, net 1,326,746 1,202,932 Premises and equipment, net 24,114 24,085 Accrued interest receivable 15,043 15,929 Other real estate owned 2,343 3,114 Goodwill 3,870 4,059 Other assets 20,054 15,745 ---------- ---------- Total assets $1,857,384 $1,637,106 ========== ========== Liabilities and shareholders' equity: Deposits: Demand (non-interest bearing) $ 222,976 $ 207,881 Savings and money market 492,007 465,984 Time deposits 516,323 477,057 Time deposits, $100,000 and over 153,117 125,358 ---------- ---------- 1,384,423 1,276,280 Securities sold under repurchase agreements 57,064 39,635 FHLB advances 202,175 109,182 Subordinated notes and debentures 31,920 32,000 Trust preferred securities 25,300 25,300 Accrued interest payable 17,687 15,444 Other liabilities 6,893 7,587 ---------- ---------- Total liabilities 1,725,462 1,505,428 ---------- ---------- Shareholders' equity: Common Stock - authorized, 20,000,000 shares of $1 par value; issued and outstanding 10,583,209 and 10,486,620 shares, respectively 10,583 10,487 Additional paid-in capital 98,177 97,308 Retained earnings 26,961 21,933 Accumulated other comprehensive income (3,799) 1,950 ---------- ---------- Total shareholders' equity 131,922 131,678 ---------- ---------- Total liabilities and shareholders' equity $1,857,384 $1,637,106 ========== ==========
JeffBanks, Inc. Consolidated Statements of Income UNAUDITED
Six Months Ended June 30, Three Months Ended June 30, 1999 1998 1999 1998 ---- ---- ---- ---- (in thousands, except per share data) Interest income: Loans including fees $52,816 $47,155 $27,161 $24,045 Investment securities 9,095 11,225 4,670 5,467 Federal funds sold 544 1,310 306 643 ------- ------- ------- ------- 62,455 59,690 32,137 30,155 ------- ------- ------- ------- Interest expense Time deposits, $100,000 and over 3,307 3,006 1,783 1,531 Other deposits 19,906 15,826 9,954 9,754 FHLB advances 4,114 4,669 2,215 2,281 Subordinated notes and debentures 1,431 1,434 714 770 Trust preferred securites 1,170 1,276 585 585 Securities sold under repurchase agreements 1,159 1,342 594 630 ------- ------- ------- ------- 31,087 30,553 15,845 15,551 ------- ------- ------- ------- Net interest income 31,368 29,137 16,292 14,604 Provision for credit losses 2,985 3,513 1,530 2,547 ------- ------- ------- ------- Net interest income after provision for credit losses 28,383 25,624 14,762 12,057 ------- ------- ------- ------- Non-interest income: Service fees on deposit accounts 2,062 1,697 1,126 819 Gain on sales of residential mortgages and capitalized mortgage servicing rights 1,575 1,689 969 953 Gain on sale of mortgage servicing 625 625 Gain on sales of investment securities 712 306 63 Mortgage servicing fees 594 582 281 286 Merchant credit card deposit fees 1,570 1,062 875 575 Credit card fee income 287 311 132 154 Other 1,284 1,102 607 555 ------- ------- ------- ------- 8,084 7,374 3,990 4,030 ------- ------- ------- ------- Non-interest expense: Salaries and employee benefits 12,411 12,666 6,238 6,813 Occupancy expense 2,258 2,222 1,125 1,095 Depreciation 1,415 1,236 750 659 FDIC expense 71 68 36 35 Data processing expense 694 602 308 317 Legal 519 1,121 216 794 Stationery, printing and supplies 590 599 294 292 Shares tax 560 583 265 355 Advertising 571 783 329 417 Other real estate owned maintenance expense 130 29 37 18 Loss on sale and write-downs of other real estate owned 5 29 6 (2) Amortization of intangibles 659 433 349 160 Credit card origination expense 276 425 136 224 Credit card processing expense 452 425 220 238 Merchant card expense 1,399 834 795 444 Other 4,174 5,512 2,256 3,754 ------- ------- ------- ------- 26,184 27,567 13,360 15,603 ------- ------- ------- ------- Income before income taxes 10,283 5,431 5,392 484 Income taxes 2,152 1,798 1,155 100 ------- ------- ------- ------- Net income $ 8,131 $ 3,633 $ 4,237 $ 384 ======= ======= ======= ======= Per share data: Average number of common shares (basic) 10,517 10,232 10,540 10,269 Average number of common shares (diluted) 11,010 11,095 11,091 11,157 Net income per common share (basic) $ 0.77 $ 0.36 $ 0.40 $ 0.04 Net income per common share (diluted) $ 0.74 $ 0.33 $ 0.38 $ 0.03
JEFFBANKS, INC. Financial Highlights -- Second Quarter 1999 (dollars and average shares in thousands)
As of or 3 Mos. As of or 3 Mos. As of or 6 Mos. As of or 6 Mos. Ended 6/30/99 Ended 6/30/98 Ended 6/30/99 Ended 6/30/98 ------------- ------------- ------------- ------------- Income Statement: Net interest income $16,292 $14,604 $31,368 $29,137 Net interest income(FTE) 17,662 15,157 33,908 30,107 Provision for credit losses 1,530 2,547 2,985 3,513 Non-interest income 3,990 4,030 8,084 7,374 Non-interest expense 13,360 15,603 26,184 27,567 Income before income taxes 5,392 484 10,283 5,431 Income taxes 1,155 100 2,152 1,798 ------- ------- ------- ------- Net income $ 4,237 $ 384 $ 8,131 $ 3,633 ======= ======= ======= ======= Common Shares Data: Average shares (basic) 10,540 10,269 10,517 10,232 Average shares (diluted) 11,091 11,157 11,010 11,095 ------- ------- ------- ------- Net income (A) $ 4,237 $ 1,945 $ 8,131 $ 5,194 ======= ======= ======= ======= Net income (basic)(A) $ 0.40 $ 0.19 $ 0.77 $ 0.51 ======= ======= ======= ======= Net income (diluted)(A) $ 0.38 $ 0.17 $ 0.74 $ 0.47 ======= ======= ======= ======= Net income $ 4,237 $ 384 $ 8,131 $ 3,633 ======= ======= ======= ======= Net income (basic) $ 0.40 $ 0.04 $ 0.77 $ 0.36 ======= ======= ======= ======= Net income (diluted) $ 0.38 $ 0.03 $ 0.74 $ 0.33 ======= ======= ======= ======= Dividends declared $ 0.155 $ 0.08 $ 0.31 $ 0.17 Book value (diluted) $ 11.78 $ 11.13 $ 11.78 $ 11.13 Operating Ratios: ROAA(A) 0.97% 0.50% 0.95% 0.67% ROAA 0.97% 0.10% 0.95% 0.47% ROAE(A) 12.80% 6.25% 12.30% 8.41% ROAE 12.80% 1.23% 12.30% 5.88% Efficiency ratio(FTE) 61.70% 81.59% 63.43% 74.15% Net interest margin(FTE) 4.30% 4.09% 4.24% 4.13% Equity/assets 7.10% 7.33% 7.10% 7.33% Asset Quality: Non-accrual loans $10,469 $11,250 Other real estate owned 2,343 1,987 Total non-performing assets 12,812 13,237 Past due 90 days, still accruing 6,293 6,556 Ratios: NPA's/loans+OREO 0.94% 1.16% NPA's/assets 0.69% 0.78% Allowance/loans 0.90% 1.23%
(A) Before non-recurring merger-related charges related to the Regent acquisition incurred in the second quarter of 1998. JEFFBANKS, INC. Financial Highlights -- Second Quarter 1999 (dollars and average shares in thousands)
As of or 3 Mos. As of or 3 Mos. As of or 6 Mos. As of or 6 Mos. Ended 6/30/99 Ended 6/30/98 Ended 6/30/99 Ended 6/30/98 ------------- ------------- ------------- ------------- Allowance for Credit Losses: Beginning of period $11,930 $13,642 $12,407 $14,136 Charge-offs 1,580 2,672 3,875 4,292 Recoveries 323 534 686 694 Provision 1,530 2,547 2,985 3,513 End of period $12,203 $14,051 $12,203 $14,051 Net charge-offs/ average loans (annualized) 0.38% 0.81% 0.50% 0.69% Average Balance Sheet: Loans $1,314,927 $1,060,833 $1,278,206 $1,039,051 Earning assets 1,642,461 1,482,049 1,599,660 1,455,435 Deposits 1,298,103 1,143,201 1,268,130 1,124,059 Assets 1,750,800 1,567,681 1,703,800 1,555,307 Total equity 132,456 124,412 132,196 123,543 Ending Balance Sheet: Loans $1,358,900 $1,140,702 $1,358,900 $1,140,702 Allowance for credit losses 12,203 14,051 12,203 14,051 Deposits 1,384,423 1,289,992 1,384,423 1,289,992 Assets 1,857,384 1,696,577 1,857,384 1,696,577 Total equity 131,922 124,397 131,922 124,397
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