UNITED STATES
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: October 22, 2001
Second Bancorp Incorporated
(Exact name of registrant as specified in its charter)
| Ohio | 0-15624 | 34-1547453 | ||
| (State of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
||
| 108 Main Avenue S.W., Warren, Ohio | 44482-1311 | |
| (Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number, including area code: 330-841-0123
Item 5. Other Events
On October 18, 2001, the Company issued the following press release:
SECOND BANCORP’S IMPROVED EARNINGS
TREND CONTINUES
Warren, Ohio, October 18, 2001—SECOND BANCORP INCORPORATED (Nasdaq “SECD”) reported consolidated third quarter 2001 net income of $4,401,000 compared to $4,258,000 for the prior quarter and a loss of ($5,545,000) for third quarter 2000. Year-to-date earnings were $12.75 million, an increase of $10.64 million over reported results for last year’s first nine months. Diluted earnings per share for the quarter were $.43 compared to the second quarter’s $.42 and a ($.55) loss for the year-ago quarter. Per share earnings for the first three quarters of the year were $1.26 per share versus $.20 for the same period last year. Third quarter 2000 results were adversely effected by non-recurring restructuring and other charges totaling $9.02 million on an after-tax basis.
Page 1 of 11
The Company’s key ratios for the third quarter and first nine months of 2001 were similarly improved over the same periods last year. Returns on average assets for the quarter and year-to-date were 1.11% and 1.09% respectively (compared to a negative 1.34% and .18% a year ago) and returns on average equity were 13.87% for the quarter and 13.97% year-to-date (compared to a negative 19.01% and 2.43% respectively last year). Though somewhat weaker than second quarter 2001 performance, the Company’s efficiency ratio also improved dramatically over a year ago finishing at 57.89% for the quarter and 58.20% for the first nine months of the year. Second Bancorp’s net interest margin for the quarter was 3.49%, significantly stronger than the 3.14% reported a year ago, and incrementally improved over the first two quarters of the year.
Non-interest income (excluding security and trading activity) for the reporting period was $4.42 million, 4.5% lower than for the second quarter but, for the first three quarters of the year, was well ahead of last year’s pace at more than $13 million. The marginal drop in non-interest income quarter-to-quarter was due largely to a reduction in the market value of the Company’s mortgage loan servicing portfolio. Income categories particularly strong during the third quarter and year-to-date were deposit service charges which were 16% and 18% ahead of results for the same periods last year and gains on sale of loans which were $1.4 million for the quarter and $3.3 million for the year.
Second Bancorp President and Chief Executive Officer R. L. (Rick) Blossom indicated “We have been able to take advantage of the lowering interest rate environment this year by ramping up efforts in our core mortgage lending business. Wholesale and retail mortgage originations for the year, equally divided between purchase money loans and refinancings, have reached $356 million and based upon the number of mortgage loan applications in the pipeline, we expect the heightened activity to continue at least through the end of the year. We have, however, meticulously avoided increasing the volume of long term, fixed rate loans on our books through secondary market activity while generally retaining servicing rights on loans that are sold. Though an expected spike in mortgage loan prepayments put a dent in the servicing portfolio, we completed the quarter with more than $650 million in serviced loans which will continue to make a significant contribution to non-interest income.”
Cost controls continued to play an important role in the Company’s improving performance. Third quarter non-interest expenses were $10.08 million, slightly higher than for the prior quarter but 23% lower than third quarter 2000. Year-to-date, non-interest expenses have been held to less than $30 million, an 11.6% reduction from year-ago levels. Compared to third quarter 2000 results, virtually every non-interest expense category contributed to the drop in operating costs with professional services, amortization of goodwill and other intangibles, and other operating expenses leading the way. The Company’s net overhead ratio which measures its ability to efficiently manage its revenue generating businesses, though a bit weaker on a quarter-to-quarter basis, was a strong 1.52% for the first nine months of the year compared to 2.37% for the same period last year.
With the general economic uncertainty facing the country and regional markets, credit quality remains a key consideration for financial institutions. Second Bancorp’s quarter-end “non-accrual” and “90-days past due but accruing” loans were improved by 8.4% and 13.3% respectively compared to last quarter but were somewhat weaker than year-ago levels. Net charge-offs for the quarter were substantially unchanged from a year ago at $1.17 million and were $2.88 million or .36% of average loans for the year compared to .28% for the same period last year. The Company’s loan loss reserve at the end of the quarter was 1.45% of period-end loans, unchanged from the prior quarter and 3 basis points stronger than a year ago.
Page 2 of 11
Second Bancorp’s pending acquisition of Commerce Exchange Corporation announced on July 23, 2001 is scheduled to close later this month. When completed, the transaction will contribute in excess of $100 million in assets and two retail banking centers enhancing the Company’s growing presence in the attractive suburban Cleveland market. Excluding transaction costs, the acquisition is expected to be immediately accretive to Second Bancorp’s earnings per share.
The Company also reported that its Board of Directors declared a seventeen cent ($.17) per share common dividend payable October 31, 2001 to shareholders of record on October 15. That dividend is unchanged from the second quarter of the year and is 6.25% higher than the dividend paid for the third quarter last year.
This announcement contains forward-looking statements that involve risk and uncertainties, including changes in general economic and financial market conditions and the Company’s ability to execute its business plans. Although management believes the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially.
Second Bancorp is a $1.6 billion financial holding company providing a full range of commercial and consumer banking, trust, insurance and investment products and services to communities in a nine county area of Northeastern and East-Central Ohio through subsidiary Second National Bank’s network of 35 retail banking centers.
Additional information about Second Bancorp and information about products and services offered by Second National Bank can be found on the World Wide Web at www.secondnationalbank.com.
CONTACT: Christopher Stanitz, Executive Vice President and Secretary, at 330.841.0234 (phone), 330.841.0489 (fax), or cstanitz@secondnationalbank.com.
Page 3 of 11
Second Bancorp Incorporated and Subsidiary
Financial Highlights
Quarterly Data
(Dollars in thousands, except per share data)
| Sept. 2001 | June 2001 | March 2001 | Dec. 2000 | Sept. 2000 | |||||||||||||||||
Earnings: |
|||||||||||||||||||||
Net interest income |
$ | 12,473 | $ | 12,298 | $ | 11,916 | $ | 12,708 | $ | 11,606 | |||||||||||
Provision for loan losses |
988 | 1,342 | 761 | 903 | 4,843 | ||||||||||||||||
Non-interest income |
4,420 | 4,630 | 3,972 | 3,776 | (28 | ) | |||||||||||||||
Security gains (losses) |
123 | (12 | ) | 529 | 98 | (2,802 | ) | ||||||||||||||
Trading account (losses) gains |
(52 | ) | 13 | 58 | 10 | (28 | ) | ||||||||||||||
Non-interest expense |
10,082 | 9,805 | 10,051 | 10,345 | 13,140 | ||||||||||||||||
Federal income taxes (benefit) |
1,493 | 1,524 | 1,475 | 1,314 | (3,690 | ) | |||||||||||||||
Income before accounting change |
4,401 | 4,258 | 4,188 | 4,030 | (5,545 | ) | |||||||||||||||
Cumulative effect of accounting
change, net of tax |
0 | 0 | (101 | ) | 0 | 0 | |||||||||||||||
Net income |
$ | 4,401 | $ | 4,258 | $ | 4,087 | $ | 4,030 | ($5,545 | ) | |||||||||||
Per share: |
|||||||||||||||||||||
Basic earnings before accounting change |
n/a | n/a | $ | 0.42 | n/a | n/a | |||||||||||||||
Basic earnings
|
0.43 | 0.42 | 0.41 | 0.40 | (0.55 | ) | |||||||||||||||
Diluted earnings before accounting
change |
n/a | n/a | 0.42 | n/a | n/a | ||||||||||||||||
Diluted earnings |
0.43 | 0.42 | 0.41 | 0.40 | (0.55 | ) | |||||||||||||||
Common dividends |
0.17 | 0.17 | 0.17 | 0.16 | 0.16 | ||||||||||||||||
Book value |
13.04 | 12.29 | 12.20 | 11.65 | 11.05 | ||||||||||||||||
Tangible book value |
12.90 | 12.15 | 12.04 | 11.49 | 10.88 | ||||||||||||||||
Market value |
20.50 | 22.90 | 17.50 | 14.50 | 14.13 | ||||||||||||||||
Weighted average shares outstanding: |
|||||||||||||||||||||
Basic |
10,033,365 | 10,007,904 | 10,020,097 | 10,050,177 | 10,161,386 | ||||||||||||||||
Diluted |
10,117,705 | 10,103,060 | 10,046,562 | 10,069,215 | 10,161,386 | ||||||||||||||||
Period end balance sheet: |
|||||||||||||||||||||
Assets |
$ | 1,609,019 | $ | 1,578,370 | $ | 1,571,831 | $ | 1,546,290 | $ | 1,561,617 | |||||||||||
Securities |
407,004 | 380,262 | 377,323 | 382,098 | 400,176 | ||||||||||||||||
Total loans |
1,060,778 | 1,075,039 | 1,076,284 | 1,070,089 | 1,059,530 | ||||||||||||||||
Reserve for loan losses |
15,429 | 15,609 | 15,778 | 15,217 | 15,040 | ||||||||||||||||
Deposits |
1,057,291 | 1,059,758 | 1,061,556 | 1,036,135 | 1,084,377 | ||||||||||||||||
Total shareholders’ equity |
130,766 | 123,107 | 121,968 | 117,197 | 112,019 | ||||||||||||||||
Tier I capital |
149,171 | 119,857 | 117,497 | 115,315 | 114,158 | ||||||||||||||||
Tier I ratio |
13.1 | % | 10.4 | % | 10.3 | % | 10.3 | % | 10.2 | % | |||||||||||
Total capital |
163,385 | 134,302 | 131,768 | 129,366 | 128,193 | ||||||||||||||||
Total capital ratio |
14.4 | % | 11.6 | % | 11.5 | % | 11.5 | % | 11.4 | % | |||||||||||
Total risk-adjusted assets |
1,135,902 | 1,155,561 | 1,141,685 | 1,124,076 | 1,122,803 | ||||||||||||||||
Tier I leverage ratio |
9.4 | % | 7.6 | % | 7.6 | % | 7.5 | % | 6.9 | % | |||||||||||
Average balance sheet: |
|||||||||||||||||||||
Assets |
$ | 1,582,934 | $ | 1,570,016 | $ | 1,544,368 | $ | 1,541,049 | $ | 1,650,501 | |||||||||||
Earning assets |
1,494,932 | 1,483,598 | 1,453,969 | 1,452,756 | 1,552,441 | ||||||||||||||||
Loans |
1,064,655 | 1,074,936 | 1,072,460 | 1,061,023 | 1,173,799 | ||||||||||||||||
Deposits |
1,061,537 | 1,063,415 | 1,046,349 | 1,053,740 | 1,110,194 | ||||||||||||||||
Shareholders’ equity |
126,950 | 121,840 | 118,879 | 112,892 | 116,702 | ||||||||||||||||
Key ratios: (%) (1) |
|||||||||||||||||||||
Return on average assets (ROA) |
1.11 | 1.08 | 1.08 | 1.05 | (1.34 | ) | |||||||||||||||
Return on average shareholders’ |
13.87 | 13.98 | 14.09 | 14.28 | (19.01 | ) | |||||||||||||||
equity (ROE)
Net interest margin |
3.49 | 3.47 | 3.43 | 3.65 | 3.14 | ||||||||||||||||
Net overhead |
1.53 | 1.39 | 1.66 | 1.81 | 3.40 | ||||||||||||||||
Efficiency ratio |
57.89 | 56.00 | 60.94 | 60.77 | 108.40 | ||||||||||||||||
Credit quality: |
|||||||||||||||||||||
Non-accrual loans |
$ | 4,273 | $ | 4,666 | $ | 5,163 | $ | 4,699 | $ | 3,821 | |||||||||||
Restructured loans |
358 | 38 | 40 | 43 | 45 | ||||||||||||||||
90 day past due and accruing |
4,693 | 5,415 | 3,849 | 3,238 | 3,171 | ||||||||||||||||
Non-performing loans |
9,324 | 10,119 | 9,052 | 7,980 | 7,037 | ||||||||||||||||
Other real estate owned |
1,322 | 1,063 | 918 | 902 | 961 | ||||||||||||||||
Non-performing assets |
$ | 10,646 | $ | 11,182 | $ | 9,970 | $ | 8,882 | $ | 7,998 | |||||||||||
Charge-offs |
$ | 1,343 | $ | 1,808 | $ | 862 | $ | 939 | $ | 1,528 | |||||||||||
Recoveries |
175 | 297 | 662 | 213 | 348 | ||||||||||||||||
Net charge-offs |
$ | 1,168 | $ | 1,511 | $ | 200 | $ | 726 | $ | 1,180 | |||||||||||
Reserve for loan losses as a percent
of period-end loans (%) |
1.45 | 1.45 | 1.47 | 1.42 | 1.42 | ||||||||||||||||
Net charge-offs (annualized) as a
percent of average loans (%) |
0.44 | 0.56 | 0.07 | 0.27 | 0.40 | ||||||||||||||||
Non-performing loans as a percent
of loans |
0.88 | 0.94 | 0.84 | 0.75 | 0.66 | ||||||||||||||||
Non-performing assets as a percent
of assets |
0.66 | 0.71 | 0.63 | 0.57 | 0.51 | ||||||||||||||||
(1) Based on income before accounting change.
Page 4 of 11
Second Bancorp Incorporated and Subsidiary
Consolidated Statements of Income
Quarterly Data
(Dollars in thousands, except per share data)
| Sept. 2001 | June 2001 | March 2001 | Dec. 2000 | Sept. 2000 | |||||||||||||||||||
INTEREST INCOME |
|||||||||||||||||||||||
Loans (including fees): |
|||||||||||||||||||||||
Taxable |
$ | 21,015 | $ | 21,751 | $ | 22,101 | $ | 23,029 | $ | 23,367 | |||||||||||||
Exempt from federal income taxes |
268 | 279 | 288 | 276 | 285 | ||||||||||||||||||
Securities: |
|||||||||||||||||||||||
Taxable |
5,471 | 5,302 | 5,125 | 5,581 | 5,419 | ||||||||||||||||||
Exempt from federal income taxes |
800 | 775 | 773 | 773 | 777 | ||||||||||||||||||
Federal funds sold and other temp
investments |
326 | 298 | 191 | 131 | 46 | ||||||||||||||||||
Total interest income |
27,880 | 28,405 | 28,478 | 29,790 | 29,894 | ||||||||||||||||||
INTEREST EXPENSE |
|||||||||||||||||||||||
Deposits |
10,467 | 11,192 | 11,469 | 11,829 | 12,216 | ||||||||||||||||||
Federal funds purchased and
securities
sold under agreements to repurchase |
937 | 1,053 | 1,187 | 1,560 | 1,440 | ||||||||||||||||||
Note Payable |
13 | 16 | 18 | 6 | 0 | ||||||||||||||||||
Other borrowed funds |
23 | 15 | 37 | 25 | 46 | ||||||||||||||||||
Federal Home Loan Bank advances |
3,946 | 3,831 | 3,851 | 3,662 | 4,586 | ||||||||||||||||||
Corporation-obligated manditorily
redeemable capital securities
of subsidiary trust |
21 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total interest expense |
15,407 | 16,107 | 16,562 | 17,082 | 18,288 | ||||||||||||||||||
Net interest income |
12,473 | 12,298 | 11,916 | 12,708 | 11,606 | ||||||||||||||||||
Provision for loan losses |
988 | 1,342 | 761 | 903 | 4,843 | ||||||||||||||||||
Net interest income after
provision for loan losses |
11,485 | 10,956 | 11,155 | 11,805 | 6,763 | ||||||||||||||||||
NON-INTEREST INCOME |
|||||||||||||||||||||||
Service charges on deposit accounts |
1,344 | 1,273 | 1,261 | 1,110 | 1,163 | ||||||||||||||||||
Trust fees |
761 | 749 | 756 | 1,012 | 833 | ||||||||||||||||||
Gain (loss) on sale of loans |
1,394 | 1,106 | 783 | 490 | (3,191 | ) | |||||||||||||||||
Trading account (losses) gains |
(52 | ) | 13 | 58 | 10 | (28 | ) | ||||||||||||||||
Security gains (losses) |
123 | (12 | ) | 529 | 98 | (2,802 | ) | ||||||||||||||||
Other operating income |
921 | 1,502 | 1,172 | 1,164 | 1,167 | ||||||||||||||||||
Total non-interest income |
4,491 | 4,631 | 4,559 | 3,884 | (2,858 | ) | |||||||||||||||||
NON-INTEREST EXPENSE |
|||||||||||||||||||||||
Salaries and employee benefits |
5,313 | 5,096 | 5,194 | 4,891 | 5,421 | ||||||||||||||||||
Net occupancy |
1,001 | 1,062 | 1,116 | 1,040 | 1,062 | ||||||||||||||||||
Equipment |
1,038 | 921 | 1,049 | 995 | 1,044 | ||||||||||||||||||
Professional services |
320 | 397 | 343 | 651 | 1,650 | ||||||||||||||||||
Assessment on deposits and other
taxes |
415 | 405 | 401 | 423 | 423 | ||||||||||||||||||
Amortization of goodwill and other
intangibles |
81 | 80 | 81 | 108 | 216 | ||||||||||||||||||
Other operating expenses |
1,914 | 1,844 | 1,867 | 2,237 | 3,324 | ||||||||||||||||||
Total non-interest expense |
10,082 | 9,805 | 10,051 | 10,345 | 13,140 | ||||||||||||||||||
Income before federal income taxes |
5,894 | 5,782 | 5,663 | 5,344 | (9,235 | ) | |||||||||||||||||
Income tax expense (benefit) |
1,493 | 1,524 | 1,475 | 1,314 | (3,690 | ) | |||||||||||||||||
Income before accounting change
|
4,401 | 4,258 | 4,188 | 4,030 | (5,545 | ) | |||||||||||||||||
Cumulative effect of accounting
change, net of tax |
— | — | (101 | ) | — | — | |||||||||||||||||
Net income |
$ | 4,401 | $ | 4,258 | $ | 4,087 | $ | 4,030 | ($5,545 | ) | |||||||||||||
NET INCOME PER COMMON SHARE: |
|||||||||||||||||||||||
Basic before accounting change |
$ | 0.44 | $ | 0.42 | $ | 0.42 | $ | 0.40 | ($0.55 | ) | |||||||||||||
Basic |
$ | 0.43 | $ | 0.42 | $ | 0.41 | $ | 0.40 | ($0.55 | ) | |||||||||||||
Diluted before accounting change |
$ | 0.44 | $ | 0.42 | $ | 0.42 | $ | 0.40 | ($0.55 | ) | |||||||||||||
Diluted |
$ | 0.43 | $ | 0.42 | $ | 0.41 | $ | 0.40 | ($0.55 | ) | |||||||||||||
Weighted average common shares
outstanding: |
|||||||||||||||||||||||
Basic |
10,033,365 | 10,007,904 | 10,020,097 | 10,050,177 | 10,161,386 | ||||||||||||||||||
Diluted |
10,117,705 | 10,103,060 | 10,046,562 | 10,069,215 | 10,161,386 | ||||||||||||||||||
Note: Fully taxable equivalent adjustment |
$ | 575 | $ | 568 | $ | 571 | $ | 540 | $ | 547 | |||||||||||||
Page 5 of 11
Second Bancorp Incorporated and Subsidiary
Consolidated Average Balance Sheets
For the Quarter Ended
(Dollars in Thousands)
| ASSETS | Sept. 2001 | June 2001 | March 2001 | Dec. 2000 | Sept. 2000 | ||||||||||||||||||
Cash and demand balances
due from banks |
$ | 32,340 | $ | 30,980 | $ | 33,942 | $ | 31,139 | $ | 34,439 | |||||||||||||
Federal funds sold and other temp
investments |
37,091 | 27,222 | 12,146 | 7,979 | 2,750 | ||||||||||||||||||
Trading Account |
52 | 141 | 165 | 161 | 811 | ||||||||||||||||||
Securities |
393,134 | 381,299 | 369,198 | 383,593 | 375,081 | ||||||||||||||||||
Loans: |
|||||||||||||||||||||||
Commercial |
427,029 | 434,445 | 425,127 | 419,442 | 412,356 | ||||||||||||||||||
Consumer |
319,838 | 318,937 | 309,135 | 295,209 | 272,322 | ||||||||||||||||||
Real estate |
317,788 | 321,554 | 338,198 | 346,372 | 489,121 | ||||||||||||||||||
Total loans |
1,064,655 | 1,074,936 | 1,072,460 | 1,061,023 | 1,173,799 | ||||||||||||||||||
Reserve for loan losses |
15,464 | 15,743 | 15,594 | 15,129 | 11,578 | ||||||||||||||||||
Net loans |
1,049,191 | 1,059,193 | 1,056,866 | 1,045,894 | 1,162,221 | ||||||||||||||||||
Premises and equipment |
17,061 | 17,448 | 17,923 | 17,867 | 18,032 | ||||||||||||||||||
Goodwill and intangible assets |
7,985 | 6,471 | 6,067 | 6,111 | 5,416 | ||||||||||||||||||
Other |
46,080 | 47,262 | 48,061 | 48,305 | 51,751 | ||||||||||||||||||
Total assets |
$ | 1,582,934 | $ | 1,570,016 | $ | 1,544,368 | $ | 1,541,049 | $ | 1,650,501 | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|||||||||||||||||||||||
Liabilities: |
|||||||||||||||||||||||
Demand deposits (non-interest
bearing) |
$ | 111,635 | $ | 110,124 | $ | 107,260 | $ | 110,053 | $ | 112,662 | |||||||||||||
Demand deposits (interest
bearing) |
90,783 | 88,920 | 83,381 | 83,694 | 85,432 | ||||||||||||||||||
Savings |
232,661 | 234,781 | 242,120 | 252,990 | 265,319 | ||||||||||||||||||
Time deposits |
626,458 | 629,590 | 613,588 | 607,003 | 646,781 | ||||||||||||||||||
Total deposits |
1,061,537 | 1,063,415 | 1,046,349 | 1,053,740 | 1,110,194 | ||||||||||||||||||
Federal funds purchased and
securities sold under
agreements to repurchase |
112,029 | 111,816 | 109,724 | 126,942 | 117,645 | ||||||||||||||||||
Note payable |
967 | 1,000 | 1,000 | 292 | 0 | ||||||||||||||||||
Borrowed funds |
2,240 | 1,554 | 2,230 | 1,251 | 2,568 | ||||||||||||||||||
Accrued expenses and other
liabilities |
10,601 | 10,223 | 9,002 | 6,630 | 9,060 | ||||||||||||||||||
Federal Home Loan Bank advances |
267,744 | 260,168 | 257,184 | 239,302 | 294,332 | ||||||||||||||||||
Corporation-obligated manditorily
redeemable capital securities
of subsidiary trust |
866 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total liabilities |
1,455,984 | 1,448,176 | 1,425,489 | 1,428,157 | 1,533,799 | ||||||||||||||||||
Shareholders’ equity: |
|||||||||||||||||||||||
Common stock |
37,331 | 37,046 | 36,945 | 36,936 | 36,962 | ||||||||||||||||||
Treasury shares |
(14,814 | ) | (14,739 | ) | (14,465 | ) | (13,174 | ) | (12,172 | ) | |||||||||||||
Other comprehensive income |
4,548 | 2,364 | 1,493 | (3,268 | ) | (6,957 | ) | ||||||||||||||||
Retained earnings |
99,885 | 97,169 | 94,906 | 92,398 | 98,869 | ||||||||||||||||||
Total shareholders’ equity |
126,950 | 121,840 | 118,879 | 112,892 | 116,702 | ||||||||||||||||||
Total liabilities and
shareholders’ equity |
$ | 1,582,934 | $ | 1,570,016 | $ | 1,544,368 | $ | 1,541,049 | $ | 1,650,501 | |||||||||||||
Page 6 of 11
Second Bancorp Incorporated and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands)
| September 30 | June 30 | March 31 | December 31 | September 31 | ||||||||||||||||||||
| 2001 | 2001 | 2001 | 2000 | 2000 | ||||||||||||||||||||
ASSETS |
||||||||||||||||||||||||
Cash and due from banks |
$ | 32,441 | $ | 36,024 | $ | 36,937 | $ | 35,272 | $ | 34,079 | ||||||||||||||
Federal funds sold and other temp
investments |
51,233 | 27,979 | 25,451 | 0 | 8,000 | |||||||||||||||||||
Trading Account |
0 | 0 | 238 | 328 | 447 | |||||||||||||||||||
Securities |
407,004 | 380,262 | 377,323 | 382,098 | 400,176 | |||||||||||||||||||
Loans: |
||||||||||||||||||||||||
Commercial |
425,149 | 434,416 | 432,633 | 421,229 | 426,407 | |||||||||||||||||||
Consumer |
318,614 | 322,776 | 314,290 | 302,881 | 285,959 | |||||||||||||||||||
Real estate |
317,015 | 317,847 | 329,361 | 345,979 | 347,164 | |||||||||||||||||||
Total loans |
1,060,778 | 1,075,039 | 1,076,284 | 1,070,089 | 1,059,530 | |||||||||||||||||||
Less reserve for loan losses |
15,429 | 15,609 | 15,778 | 15,217 | 15,040 | |||||||||||||||||||
Net loans |
1,045,349 | 1,059,430 | 1,060,506 | 1,054,872 | 1,044,490 | |||||||||||||||||||
Premises and equipment |
16,650 | 17,122 | 17,533 | 18,039 | 17,798 | |||||||||||||||||||
Accrued interest receivable |
10,272 | 9,759 | 10,118 | 11,181 | 10,630 | |||||||||||||||||||
Goodwill and intangible assets |
8,328 | 7,547 | 6,157 | 6,038 | 6,193 | |||||||||||||||||||
Other assets |
37,742 | 40,247 | 37,568 | 38,462 | 39,804 | |||||||||||||||||||
Total assets |
$ | 1,609,019 | $ | 1,578,370 | $ | 1,571,831 | $ | 1,546,290 | $ | 1,561,617 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||||||||||||||
Deposits: |
||||||||||||||||||||||||
Demand — non-interest bearing |
$ | 111,539 | $ | 109,477 | $ | 105,920 | $ | 110,045 | $ | 107,391 | ||||||||||||||
Demand — interest bearing |
94,831 | 90,077 | 86,124 | 87,268 | 83,991 | |||||||||||||||||||
Savings |
234,601 | 234,314 | 239,661 | 246,056 | 262,024 | |||||||||||||||||||
Time deposits |
616,320 | 625,890 | 629,851 | 592,766 | 630,971 | |||||||||||||||||||
Total deposits |
1,057,291 | 1,059,758 | 1,061,556 | 1,036,135 | 1,084,377 | |||||||||||||||||||
Federal funds purchased and securities
sold under agreements to repurchase |
110,071 | 117,275 | 119,684 | 129,895 | 116,707 | |||||||||||||||||||
Note payable |
0 | 1,000 | 1,000 | 1,000 | 0 | |||||||||||||||||||
Other borrowed funds |
5,745 | 4,981 | 46 | 2,163 | 3,622 | |||||||||||||||||||
Accrued expenses and other liabilities |
11,185 | 10,802 | 10,986 | 8,167 | 6,020 | |||||||||||||||||||
Federal Home Loan Bank advances |
267,301 | 261,447 | 256,591 | 251,733 | 238,872 | |||||||||||||||||||
Corporation-obligated manditorily redeemable
capital securities of subsidiary trust |
26,660 | 0 | 0 | 0 | 0 | |||||||||||||||||||
Total liabilities |
1,478,253 | 1,455,263 | 1,449,863 | 1,429,093 | 1,449,598 | |||||||||||||||||||
Shareholders’ equity: |
||||||||||||||||||||||||
Common stock, no par value;
30,000,000 shares authorized; |
37,424 | 37,166 | 36,953 | 36,935 | 36,952 | |||||||||||||||||||
Treasury stock |
(15,072 | ) | (14,740 | ) | (14,740 | ) | (13,947 | ) | (12,590 | ) | ||||||||||||||
Other comprehensive income |
6,850 | 1,810 | 2,950 | 281 | (3,849 | ) | ||||||||||||||||||
Retained earnings |
101,564 | 98,871 | 96,805 | 93,928 | 91,506 | |||||||||||||||||||
Total shareholders’ equity |
130,766 | 123,107 | 121,968 | 117,197 | 112,019 | |||||||||||||||||||
Total liabilities and shareholders’
equity |
$ | 1,609,019 | $ | 1,578,370 | $ | 1,571,831 | $ | 1,546,290 | $ | 1,561,617 | ||||||||||||||
Miscellaneous data: |
||||||||||||||||||||||||
Common shares issued |
10,828,310 | 10,802,510 | 10,785,760 | 10,787,310 | 10,776,870 | |||||||||||||||||||
Treasury shares |
801,512 | 785,000 | 785,000 | 730,200 | 639,920 | |||||||||||||||||||
Bank owned life insurance (in other assets) |
$ | 31,041 | $ | 30,645 | $ | 30,270 | $ | 29,895 | $ | 29,527 | ||||||||||||||
Loans serviced for others |
$ | 652,337 | $ | 565,044 | $ | 487,253 | $ | 472,120 | $ | 462,957 | ||||||||||||||
Mortgage servicing rights |
$ | 6,560 | $ | 5,688 | $ | 4,261 | $ | 4,065 | $ | 4,102 | ||||||||||||||
Goodwill |
1,014 | 1,061 | 1,107 | 1,154 | 1,213 | |||||||||||||||||||
Other intangibles |
754 | 798 | 789 | 819 | 878 | |||||||||||||||||||
Total goodwill and intangibles assets |
$ | 8,328 | $ | 7,547 | $ | 6,157 | $ | 6,038 | $ | 6,193 | ||||||||||||||
Page 7 of 11
Second Bancorp Incorporated and Subsidiary
Financial Highlights
Year-to-Date Data
| (Dollars in thousands, except per | Sept. 2001 | June 2001 | March 2001 | Dec. 2000 | Sept. 2000 | ||||||||||||||||||
| share data) | |||||||||||||||||||||||
Earnings: |
|||||||||||||||||||||||
Net interest income |
$ | 36,687 | $ | 24,214 | $ | 11,916 | $ | 49,377 | $ | 36,669 | |||||||||||||
Provision for loan losses |
3,091 | 2,103 | 761 | 7,129 | 6,226 | ||||||||||||||||||
Non-interest income |
13,022 | 8,602 | 3,972 | 11,009 | 7,233 | ||||||||||||||||||
Security gains (losses) |
640 | 517 | 529 | (2,399 | ) | (2,497 | ) | ||||||||||||||||
Trading account |
19 | 71 | 58 | (335 | ) | (345 | ) | ||||||||||||||||
Non-interest expense |
29,938 | 19,856 | 10,051 | 44,213 | 33,868 | ||||||||||||||||||
Federal income taxes (benefit) |
4,492 | 2,999 | 1,475 | 176 | (1,138 | ) | |||||||||||||||||
Income before accounting change |
12,847 | 8,446 | 4,188 | 6,134 | 2,104 | ||||||||||||||||||
Cumulative effect of accounting
change, net of tax |
(101 | ) | (101 | ) | (101 | ) | 0 | 0 | |||||||||||||||
Net income |
$ | 12,746 | $ | 8,345 | $ | 4,087 | $ | 6,134 | $ | 2,104 | |||||||||||||
Per share: |
|||||||||||||||||||||||
Basic earnings before accounting
change |
$ | 1.28 | $ | 0.84 | $ | 0.42 | n/a | n/a | |||||||||||||||
Basic earnings |
1.27 | 0.83 | 0.41 | 0.60 | 0.20 | ||||||||||||||||||
Diluted earnings before accounting
change |
1.27 | 0.84 | 0.42 | n/a | n/a | ||||||||||||||||||
Diluted earnings |
1.26 | 0.83 | 0.41 | 0.60 | 0.20 | ||||||||||||||||||
Common dividends |
0.51 | 0.34 | 0.17 | 0.64 | 0.48 | ||||||||||||||||||
Book value |
13.04 | 12.29 | 12.20 | 11.65 | 11.05 | ||||||||||||||||||
Tangible book value |
12.90 | 12.15 | 12.04 | 11.46 | 10.88 | ||||||||||||||||||
Market value |
20.50 | 22.90 | 17.50 | 14.50 | 14.13 | ||||||||||||||||||
Weighted average shares outstanding: |
|||||||||||||||||||||||
Basic |
10,021,471 | 10,013,966 | 10,020,097 | 10,247,025 | 10,294,922 | ||||||||||||||||||
Diluted |
10,087,935 | 10,079,973 | 10,046,562 | 10,271,548 | 10,318,413 | ||||||||||||||||||
Period end balance sheet: |
|||||||||||||||||||||||
Assets |
$ | 1,609,019 | $ | 1,578,370 | $ | 1,571,831 | $ | 1,546,290 | $ | 1,561,617 | |||||||||||||
Securities |
407,004 | 380,262 | 377,323 | 382,098 | 400,176 | ||||||||||||||||||
Total loans |
1,060,778 | 1,075,039 | 1,076,284 | 1,070,089 | 1,059,530 | ||||||||||||||||||
Reserve for loan losses |
15,429 | 15,609 | 15,778 | 15,217 | 15,040 | ||||||||||||||||||
Deposits |
1,057,291 | 1,059,758 | 1,061,556 | 1,036,135 | 1,084,377 | ||||||||||||||||||
Total shareholders’ equity |
130,766 | 123,107 | 121,968 | 117,197 | 112,019 | ||||||||||||||||||
Tier I capital |
149,171 | 119,857 | 117,497 | 115,315 | 114,158 | ||||||||||||||||||
Tier I ratio |
13.1 | % | 10.4 | % | 10.3 | % | 10.3 | % | 10.2 | % | |||||||||||||
Total capital |
163,385 | 134,302 | 131,768 | 129,366 | 128,193 | ||||||||||||||||||
Total capital ratio |
14.4 | % | 11.6 | % | 11.5 | % | 11.5 | % | 11.4 | % | |||||||||||||
Total risk-adjusted assets |
1,135,902 | 1,155,561 | 1,141,685 | 1,124,076 | 1,122,803 | ||||||||||||||||||
Tier I leverage ratio |
9.4 | % | 7.6 | % | 7.6 | % | 7.5 | % | 6.9 | % | |||||||||||||
Average balance sheet: |
|||||||||||||||||||||||
Assets |
$ | 1,565,914 | $ | 1,557,263 | $ | 1,544,368 | $ | 1,584,016 | $ | 1,598,443 | |||||||||||||
Earning assets |
1,477,650 | 1,468,866 | 1,453,969 | 1,488,334 | 1,500,280 | ||||||||||||||||||
Loans |
1,070,655 | 1,073,705 | 1,072,460 | 1,107,948 | 1,123,704 | ||||||||||||||||||
Deposits |
1,057,156 | 1,054,929 | 1,046,349 | 1,091,441 | 1,104,100 | ||||||||||||||||||
Shareholders’ equity |
122,586 | 120,368 | 118,879 | 114,652 | 115,243 | ||||||||||||||||||
Key ratios: (%) (1) |
|||||||||||||||||||||||
Return on average assets (ROA) |
1.09 | 1.08 | 1.08 | 0.39 | 0.18 | ||||||||||||||||||
Return on average
shareholders’ equity (ROE)
|
13.97 | 14.03 | 14.09 | 5.35 | 2.43 | ||||||||||||||||||
Net interest margin |
3.47 | 3.45 | 3.43 | 3.46 | 3.41 | ||||||||||||||||||
Net overhead |
1.52 | 1.52 | 1.66 | 2.23 | 2.37 | ||||||||||||||||||
Efficiency ratio |
58.20 | 58.36 | 60.94 | 70.67 | 74.31 | ||||||||||||||||||
Credit quality: |
|||||||||||||||||||||||
Non-accrual loans |
$ | 4,273 | $ | 4,666 | $ | 5,163 | $ | 4,699 | $ | 3,821 | |||||||||||||
Restructured loans |
358 | 38 | 40 | 43 | 45 | ||||||||||||||||||
90 day past due and accruing |
4,693 | 5,415 | 3,849 | 3,238 | 3,171 | ||||||||||||||||||
Non-performing loans |
9,324 | 10,119 | 9,052 | 7,980 | 7,037 | ||||||||||||||||||
Other real estate owned |
1,322 | 1,063 | 918 | 902 | 961 | ||||||||||||||||||
Non-performing assets |
$ | 10,646 | $ | 11,182 | $ | 9,970 | $ | 8,882 | $ | 7,998 | |||||||||||||
Charge-offs |
$ | 4,013 | $ | 2,670 | $ | 862 | $ | 4,059 | $ | 3,120 | |||||||||||||
Recoveries |
1,134 | 959 | 662 | 978 | 765 | ||||||||||||||||||
Net charge-offs |
$ | 2,879 | $ | 1,711 | $ | 200 | $ | 3,081 | $ | 2,355 | |||||||||||||
Reserve for loan losses as a percent
of period-end loans (%) |
1.45 | 1.45 | 1.47 | 1.42 | 1.42 | ||||||||||||||||||
Net charge-offs (annualized) as a
percent of average loans (%) |
0.36 | 0.32 | 0.07 | 0.28 | 0.28 | ||||||||||||||||||
Non-performing loans as a percent
of loans |
0.88 | 0.94 | 0.84 | 0.75 | 0.66 | ||||||||||||||||||
Non-performing assets as a percent
of assets |
0.66 | 0.71 | 0.63 | 0.57 | 0.51 | ||||||||||||||||||
(1) Based on income before accounting change.
Page 8 of 11
Second Bancorp Incorporated and Subsidiary
Consolidated Statements of Income
Year-to-Date Data
(Dollars in thousands, except per share data)
| Sept. 2001 | June 2001 | March 2001 | Dec. 2000 | Sept. 2000 | |||||||||||||||||||
INTEREST INCOME |
|||||||||||||||||||||||
Loans (including fees): |
|||||||||||||||||||||||
Taxable |
$ | 64,867 | $ | 43,852 | $ | 22,101 | $ | 90,819 | $ | 67,790 | |||||||||||||
Exempt from federal income taxes |
835 | 567 | 288 | 1,014 | 738 | ||||||||||||||||||
Securities: |
|||||||||||||||||||||||
Taxable |
15,898 | 10,427 | 5,125 | 20,970 | 15,389 | ||||||||||||||||||
Exempt from federal income taxes |
2,348 | 1,548 | 773 | 3,209 | 2,436 | ||||||||||||||||||
Federal funds sold and other temp
investments |
815 | 489 | 191 | 286 | 155 | ||||||||||||||||||
Total interest income |
84,763 | 56,883 | 28,478 | 116,298 | 86,508 | ||||||||||||||||||
INTEREST EXPENSE |
|||||||||||||||||||||||
Deposits |
33,128 | 22,661 | 11,469 | 46,236 | 34,407 | ||||||||||||||||||
Federal funds purchased and
securities sold under agreements
to repurchase |
3,177 | 2,240 | 1,187 | 5,540 | 3,980 | ||||||||||||||||||
Note Payable |
47 | 34 | 18 | 25 | 19 | ||||||||||||||||||
Other borrowed funds |
75 | 52 | 37 | 172 | 147 | ||||||||||||||||||
Federal Home Loan Bank advances |
11,628 | 7,682 | 3,851 | 14,948 | 11,286 | ||||||||||||||||||
Corporation-obligated manditorily
redeemable capital securities
of subsidiary trust |
21 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total interest expense |
48,076 | 32,669 | 16,562 | 66,921 | 49,839 | ||||||||||||||||||
Net interest income |
36,687 | 24,214 | 11,916 | 49,377 | 36,669 | ||||||||||||||||||
Provision for loan losses |
3,091 | 2,103 | 761 | 7,129 | 6,226 | ||||||||||||||||||
Net interest income after
provision for loan losses |
33,596 | 22,111 | 11,155 | 42,248 | 30,443 | ||||||||||||||||||
NON-INTEREST INCOME |
|||||||||||||||||||||||
Service charges on deposit accounts |
3,878 | 2,534 | 1,261 | 4,406 | 3,296 | ||||||||||||||||||
Trust fees |
2,266 | 1,505 | 756 | 3,898 | 2,886 | ||||||||||||||||||
Gain (loss) on sale of loans |
3,283 | 1,889 | 783 | (2,001 | ) | (2,491 | ) | ||||||||||||||||
Trading account gains (losses) |
19 | 71 | 58 | (335 | ) | (345 | ) | ||||||||||||||||
Security gains (losses) |
640 | 517 | 529 | (2,399 | ) | (2,497 | ) | ||||||||||||||||
Other operating income |
3,595 | 2,674 | 1,172 | 4,706 | 3,542 | ||||||||||||||||||
Total non-interest income |
13,681 | 9,190 | 4,559 | 8,275 | 4,391 | ||||||||||||||||||
NON-INTEREST EXPENSE |
|||||||||||||||||||||||
Salaries and employee benefits |
15,603 | 10,290 | 5,194 | 20,817 | 15,926 | ||||||||||||||||||
Net occupancy |
3,179 | 2,178 | 1,116 | 4,191 | 3,151 | ||||||||||||||||||
Equipment |
3,008 | 1,970 | 1,049 | 3,985 | 2,990 | ||||||||||||||||||
Professional services |
1,060 | 740 | 343 | 3,476 | 2,825 | ||||||||||||||||||
Assessment on deposits and other taxes |
1,221 | 806 | 401 | 1,684 | 1,261 | ||||||||||||||||||
Amortization of goodwill and other
intangibles |
242 | 161 | 81 | 555 | 447 | ||||||||||||||||||
Other operating expenses |
5,625 | 3,711 | 1,867 | 9,505 | 7,268 | ||||||||||||||||||
Total non-interest expense |
29,938 | 19,856 | 10,051 | 44,213 | 33,868 | ||||||||||||||||||
Income before federal income taxes |
17,339 | 11,445 | 5,663 | 6,310 | 966 | ||||||||||||||||||
Income tax expense (benefit) |
4,492 | 2,999 | 1,475 | 176 | (1,138 | ) | |||||||||||||||||
Income before accounting change
|
12,847 | 8,446 | 4,188 | 6,134 | 2,104 | ||||||||||||||||||
Cumulative effect of accounting
change, net of tax |
(101 | ) | (101 | ) | (101 | ) | — | — | |||||||||||||||
Net income |
$ | 12,746 | $ | 8,345 | $ | 4,087 | $ | 6,134 | $ | 2,104 | |||||||||||||
NET INCOME PER COMMON SHARE: |
|||||||||||||||||||||||
Basic before accounting change |
$ | 1.28 | $ | 0.84 | $ | 0.42 | $ | 0.60 | $ | 0.20 | |||||||||||||
Basic |
$ | 1.27 | $ | 0.83 | $ | 0.41 | $ | 0.60 | $ | 0.20 | |||||||||||||
Diluted before accounting change |
$ | 1.27 | $ | 0.84 | $ | 0.42 | $ | 0.60 | $ | 0.20 | |||||||||||||
Diluted |
$ | 1.26 | $ | 0.83 | $ | 0.41 | $ | 0.60 | $ | 0.20 | |||||||||||||
Weighted average common shares
outstanding: |
|||||||||||||||||||||||
Basic |
10,021,471 | 10,013,966 | 10,020,097 | 10,247,025 | 10,294,922 | ||||||||||||||||||
Diluted |
10,087,935 | 10,079,973 | 10,046,562 | 10,271,548 | 10,318,413 | ||||||||||||||||||
Note: Fully taxable equivalent adjustment |
$ | 1,714 | $ | 1,139 | $ | 571 | $ | 2,175 | $ | 1,635 | |||||||||||||
Page 9 of 11
Second Bancorp Incorporated and Subsidiary
Consolidated Average Balance Sheets
For the Year-to-date period ended:
(Dollars in Thousands)
| ASSETS | Sept. 2001 | June 2001 | March 2001 | Dec. 2000 | Sept. 2000 | ||||||||||||||||||
Cash and demand balances
due from banks |
$ | 32,415 | $ | 32,453 | $ | 33,942 | $ | 33,787 | $ | 34,676 | |||||||||||||
Federal funds sold |
25,578 | 19,726 | 12,146 | 4,682 | 3,575 | ||||||||||||||||||
Trading Account |
119 | 153 | 165 | 754 | 953 | ||||||||||||||||||
Securities |
381,298 | 375,282 | 369,198 | 374,950 | 372,048 | ||||||||||||||||||
Loans: |
|||||||||||||||||||||||
Commercial |
428,874 | 429,812 | 425,127 | 408,163 | 404,376 | ||||||||||||||||||
Consumer |
316,009 | 314,063 | 309,135 | 258,847 | 246,638 | ||||||||||||||||||
Real estate |
325,772 | 329,830 | 338,198 | 440,938 | 472,690 | ||||||||||||||||||
Total loans |
1,070,655 | 1,073,705 | 1,072,460 | 1,107,948 | 1,123,704 | ||||||||||||||||||
Reserve for loan losses |
15,600 | 15,669 | 15,594 | 12,398 | 11,481 | ||||||||||||||||||
Net loans |
1,055,055 | 1,058,036 | 1,056,866 | 1,095,550 | 1,112,223 | ||||||||||||||||||
Premises and equipment |
17,474 | 17,684 | 17,923 | 18,272 | 18,408 | ||||||||||||||||||
Goodwill and intangible assets |
6,848 | 6,270 | 6,067 | 5,739 | 5,614 | ||||||||||||||||||
Other |
47,127 | 47,659 | 48,061 | 50,282 | 50,946 | ||||||||||||||||||
Total assets |
$ | 1,565,914 | $ | 1,557,263 | $ | 1,544,368 | $ | 1,584,016 | $ | 1,598,443 | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|||||||||||||||||||||||
Liabilities: |
|||||||||||||||||||||||
Demand deposits (non-interest
bearing) |
$ | 109,689 | $ | 108,700 | $ | 107,260 | $ | 112,185 | $ | 112,901 | |||||||||||||
Demand deposits (interest
bearing) |
87,722 | 86,166 | 83,381 | 86,818 | 87,867 | ||||||||||||||||||
Savings |
236,486 | 238,430 | 242,120 | 266,863 | 271,521 | ||||||||||||||||||
Time deposits |
623,259 | 621,633 | 613,588 | 625,575 | 631,811 | ||||||||||||||||||
Total deposits |
1,057,156 | 1,054,929 | 1,046,349 | 1,091,441 | 1,104,100 | ||||||||||||||||||
Federal funds purchased and
securities sold under
agreements to repurchase |
111,198 | 110,776 | 109,724 | 118,070 | 115,091 | ||||||||||||||||||
Note payable |
989 | 1,000 | 1,000 | 292 | 293 | ||||||||||||||||||
Borrowed funds |
2,008 | 1,890 | 2,230 | 2,532 | 2,961 | ||||||||||||||||||
Accrued expenses and other
liabilities |
9,948 | 9,616 | 9,002 | 8,381 | 8,969 | ||||||||||||||||||
Federal Home Loan Bank advances |
261,737 | 258,684 | 257,184 | 248,648 | 251,786 | ||||||||||||||||||
Corporation-obligated manditorily
redeemable capital securities
of subsidiary trust |
292 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total liabilities |
1,443,328 | 1,436,895 | 1,425,489 | 1,469,364 | 1,483,200 | ||||||||||||||||||
Shareholders’ equity: |
|||||||||||||||||||||||
Common stock |
37,109 | 36,996 | 36,945 | 36,957 | 36,964 | ||||||||||||||||||
Treasury shares |
(14,674 | ) | (14,603 | ) | (14,465 | ) | (10,878 | ) | (10,107 | ) | |||||||||||||
Net unrealized holding gains |
2,813 | 1,931 | 1,493 | (7,354 | ) | (8,726 | ) | ||||||||||||||||
Retained earnings |
97,338 | 96,044 | 94,906 | 95,927 | 97,112 | ||||||||||||||||||
Total shareholders’ equity |
122,586 | 120,368 | 118,879 | 114,652 | 115,243 | ||||||||||||||||||
Total liabilities and
shareholders’ equity |
$ | 1,565,914 | $ | 1,557,263 | $ | 1,544,368 | $ | 1,584,016 | $ | 1,598,443 | |||||||||||||
Page 10 of 11
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.
| Second Bancorp Incorporated | ||
| Date: October 22, 2001 |
/s/ David L. Kellerman David L. Kellerman, Treasurer |
Page 11 of 11