UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 10-K/A
| þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2004
OR
| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ____________ to ____________
Commission file number0 - 25980
First Citizens Banc Corp
| Ohio | 34-1558688 | |
| State or other jurisdiction of | (IRS Employer | |
| incorporation or organization | Identification No.) | |
| 100 East Water Street, Sandusky, Ohio | 44870 | |
| (Address of principal executive offices) | (Zip Code) | |
| Registrant’s telephone number, including area code | (419) 625 - 4121 | |
Securities registered pursuant to Section 12(b) of the Act: None
Common Stock, No par value
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. Yesþ Noo
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).
The aggregate market value of the voting stock held by non-affiliates of the registrant based upon the closing market price as of June 30, 2004 was $85,860,360.
As of May 31, 2005 there were 5,807,402 shares of no par value common shares issued and outstanding.
Explanatory Note
First Citizens Banc Corp is filing this second amendment on Form 10-K/A to its annual report on Form 10-K for the year ended December 31, 2004 to amend and restate Item 9A in its entirety to include Management’s Report on Internal Control Over Financial Reporting and the Report of Independent Registered Public Accounting Firm on Management’s Report on Internal Control Over Financial Reporting, which were excluded from its Form 10-K in reliance on a 45 day extension of time allowed by the SEC for companies of a certain size to file these reports and which were not complete when the Corporation filed its first amendment on Form 10-K/A on May 2, 2005.
Except as described above and except as included in the first amendment on Form 10-K/A, no other changes were made to the annual report on Form 10-K filed on March 16, 2005.
ITEM 9A. CONTROLS AND PROCEDURES (Amended)
Evaluation of Disclosure Controls and Procedures
The Corporation maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Corporation’s reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
As of the end of the period covered by this report, the Corporation carried out an evaluation, with the participation of management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the disclosure controls and procedures pursuant to the Exchange Act Rule 13a-15(b). Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of December 31, 2004, because of the material weaknesses disclosed below in “Management’s Report on Internal Control over Financial Reporting”.
A material weakness is a significant deficiency (as defined in Public Company Accounting Oversight Board Auditing Standard No. 2), or a combination of significant deficiencies, that results in there being more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis by management or employees in the normal course of performing their assigned functions.
Management’s Report on Internal Control over Financial Reporting
As of December 31, 2004, the Corporation did not properly apply generally accepted accounting principles regarding certain transactions. Specifically, these transactions related to the discount rate used to calculate periodic pension expense, the reclassification of loans no longer intended to be held to maturity and the calculation of the fair value of identifiable intangible assets and related deferred tax amounts pertaining to a business combination. These transactions were identified after discussion with the Corporation’s independent registered public accounting firm and were corrected prior to the release of the Corporation’s earnings for the fourth quarter and year ended December 31, 2004.
In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework. Because of the material weaknesses described above, management believes that, as of December 31, 2004, the Corporation’s internal control over financial reporting was not effective.
Changes in Internal Control over Financial Reporting in the Most Recent Fiscal Quarter
There was no change in the Corporation’s internal control over financial reporting that occurred during the Corporation’s fourth fiscal quarter of 2004 that has materially affected, or is reasonable likely to materially affect, the Corporation’s internal control over financial reporting. Management of the Corporation is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. The Corporation’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Corporation’s internal control over financial reporting includes those policies and procedures that:
| • | Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Corporation; | |||
| • | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Corporation are being made only in accordance with authorizations of management and directors of the Corporation; and | |||
| • | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Corporation’s assets that could have a material effect on the financial statements. | |||
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
The Corporation’s independent registered public accounting firm has issued their report on management’s assessment of the Corporation’s internal control over financial reporting which follows.
Attestation Report of the Registered Public Accounting Firm.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INTERNAL CONTROL OVER FINANCIAL REPORTING
We audited management’s assessment, included in Management’s Report on Internal Control Over Financial Reporting, that First Citizens Banc Corp did not maintain effective internal control over financial reporting as of December 31, 2004 because of material weaknesses (as described below) based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). First Citizens Banc Corp’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting. Our responsibility is to express opinions on management’s assessment and on the effectiveness of the Company’s internal control over financial reporting based on our audit.
We conducted our audit of internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal
control over financial reporting, evaluating management’s assessment, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
A material weakness is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. The following material weaknesses have been identified and included in management’s assessment.
As of December 31, 2004, the Company did not maintain effective controls over the recognition of pension expense. Specifically controls were not in place to monitor the discount rate used in the determination of periodic pension expense.
Additionally, as of December 31, 2004, the Company did not maintain effective controls over its accounting for loans held for sale. Specifically, controls were not in place to monitor the classification of loans that were no longer intended to be held for long-term investment or until maturity or repayment.
Additionally, as of December 31, 2004, the Company did not maintain effective controls over the recording of fair value adjustments in business combinations. Specifically, controls were not in place to monitor the assumptions used in deriving estimated fair values for identifiable intangible assets and related deferred tax amounts.
The financial statement errors resulting from these transactions were identified and corrected prior to the release of the Company’s financial statements as of and for the year ended December 31, 2004 as a result of our intervention. However, these control deficiencies result in more than a remote likelihood that a material misstatement to the annual or interim financial statements will not be prevented or detected. Accordingly, management has determined that these conditions constitute material weaknesses. These material weaknesses were considered in determining the nature, timing, and extent of audit tests applied in our audit of the 2004 financial statements, and this report does not affect our report dated March 4, 2005 on those financial statements.
In our report dated April 29, 2005, we stated that the Company had not reported on its assessment of the effectiveness of internal control over financial reporting and, accordingly, the scope of our work was not sufficient to enable us to express, and we did not express, an opinion on the effectiveness of the Company’s internal control over financial reporting. The Company has now reported on its assessment of the
effectiveness of internal control over financial reporting and we have completed our audit thereof. Accordingly, our present report insofar as it relates to the Company’s internal control over financial reporting as of December 31, 2004, as presented herein, is different from our previous report.
In our opinion, management’s assessment that First Citizens Banc Corp did not maintain effective internal control over financial reporting as of December 31, 2004 is fairly stated, in all material respects, based on criteria established in Internal Control — Integrated Framework issued by COSO. Also, in our opinion, because of the effect of the material weaknesses described above on the achievement of the objectives of the control criteria, First Citizens Banc Corp has not maintained effective internal control over financial reporting as of December 31, 2004, based on criteria established in Internal Control — Integrated Framework issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of First Citizens Banc Corp as of December 31, 2004 and 2003, and the related consolidated statements of income, changes in shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2004 and our report dated March 4, 2005 expressed an unqualified opinion on those consolidated financial statements.
Crowe Chizek and Company LLC
Cleveland, Ohio
June 30, 2005
PART IV
Item 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
(a) Documents filed as a Part of the Report
| 1 | Financial Statements.None | |||
| 2 | Financial Statement Schedules.All schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto. | |||
| 3 | Exhibits | |||
| 23.2 | Consent of Independent Registered Public Accounting Firm | |||
| 31.1 | Rule 13a-14(a)/15-d-14(a) Certification of Chief Executive Officer | |||
| 31.2 | Rule 13a-14(a)/15-d-14(a) Certification of Chief Financial Officer | |||
| 32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||
| 32.2 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
(Registrant) First Citizens Banc Corp
| By | /s/ David A. Voight | ||
| David A. Voight, President (Principal Executive Officer) | |||
| By | /s/ Todd A. Michel | ||
| Todd A. Michel, Senior Vice President (Principal Financial Officer) |
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed on June 30, 2005 by the following persons (including a majority of the Board of Directors of the Registrant) in the capacities indicated:
| /s/ Robert L. Bordner | /s/ George L. Mylander | |
| Robert L. Bordner | George L. Mylander | |
| Director | Director | |
| /s/ Ronald E. Dentinger | /s/ Allen R. Nickles, CPA, CFE | |
| Ronald E. Dentinger | Allen R. Nickles, CPA, CFE | |
| Director | Director | |
| /s/ Blythe A. Friedley | /s/ Robert L. Ransom | |
| Blythe A. Friedley | Robert L. Ransom | |
| Director | Director | |
| /s/ W. Patrick Murray | /s/ Leslie D. Stoneham | |
| W. Patrick Murray | Leslie D. Stoneham | |
| Director | Director | |
| /s/ J. George Williams | /s/ Daniel J. White | |
| J. George Williams | Daniel J. White | |
| Director | Director | |
| /s/ David A. Voight | ||
| David A. Voight | ||
| President and CEO, Director |
| Exhibit | ||
| Number | Description | |
| 23.2 | Consent of Independent Registered Public Accounting Firm | |
| 31.1 | Rule 13a-14(a)/15-d-14(a) Certification of Chief Executive Officer | |
| 31.2 | Rule 13a-14(a)/15-d-14(a) Certification of Chief Financial Officer | |
| 32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 32.2 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
