SECURITIES & EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
__X__ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
_____ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to _________
COMMISSION FILE NUMBER 33-10149
SVB&T Corporation
1500 Main Street
Jasper, IN 47546
Telephone (812) 634-1010
State of Incorporation - Indiana
I.R.S. Employer Identification No. 35-1539978
NOT APPLICABLE
Former name, former address and fiscal year, if changed since last report.
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, and (2) has been subject to the
filing requirements for at least the past 90 days. Yes _X__ No ____
Indicate the number of shares outstanding of each of the issuer's classes of
common stock. The Registrant has one class of common stock (no par value)
with approximately 745,028 shares outstanding at May 10, 2000. The
Registrant holds 54,972 shares in the form of Treasury Stock.
SVB&T CORPORATION
FORM 10-Q
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements Page No.
Consolidated Balance Sheet
March 31, 2000 and 1999 and December 31, 1999............... 3
Consolidated Statement of Income
Three months ended March 31, 2000 and 1999.................. 4
Consolidated Statement of Cash Flows
Three months ended March 31, 2000 and 1999................. 5
Consolidated Statement of Changes in Shareholders' Equity
Three months ended March 31, 2000 and 1999.................. 6
Notes to Consolidated Financial Statements................... 7
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations................................... 8-10
PART II. OTHER INFORMATION............................................ 11
SIGNATURES............................................................ 12
SVB&T CORPORATION CONSOLIDATED BALANCE SHEET
March 31, March 31, December 31,
(unaudited) 2000 1999 1999
____________________________________________________________________________
ASSETS:
Cash and due from banks 4,590 4,141 5,472
Federal funds sold 0 1,060 5,275
Interest bearing deposits in other banks 61 54 18
Total cash and cash equivalents 4,651 5,201 10,765
Investment securities, available for
sale (carried at market value) 26,097 24,168 26,103
Loans
Loans, net of unearned interest 184,027 152,703 175,119
Allowance for loan losses (1,662) (1,198) (1,627)
Net loans 182,365 151,505 173,492
Buildings and equipment 4,491 4,743 4,523
Other real estate 0 0 0
Interest receivable 1,514 1,147 1,464
Deferred income taxes 525 0 165
Other assets 1,083 1,008 882
Total Assets 220,726 187,826 217,394
Liabilities:
Deposits
Non-interest bearing demand 11,884 11,753 22,102
Interest bearing 161,511 147,615 159,174
Total Deposits 173,395 159,368 181,276
Federal Funds Purchased 3,460 0 0
Other Short Term Borrowings 5,000 5,000 5,000
Interest payable 813 729 784
Deferred income taxes 0 527 0
Other liabilities 1,182 626 865
Long-Term Borrowings 16,100 1,000 9,100
Total Liabilities 199,950 167,250 197,025
SHAREHOLDERS' EQUITY:
Common stock 200 200 200
Capital surplus 6,211 6,165 6,170
Retained earnings 15,956 14,940 15,545
Net unrealized gain (loss) on
investment securities (616) 155 (544)
Treasury stock at cost (51,813 shares) (975) (884) (1,002)
Total Shareholders' Equity 20,776 20,576 20,369
Total Liabilities and
Shareholders' Equity 220,726 187,826 217,394
(Dollar amounts in thousands)
The accompanying notes are an integral part of this statement.
SVB&T CORPORATION CONSOLIDATED STATEMENT OF INCOME
Three Months Ended March 31,
(unaudited) 2000 1999
____________________________________________________________________________
INTEREST INCOME:
Loans and fees on loans 3,946 3,044
Investment securities:
Taxable 271 242
Non-taxable 117 103
Federal funds sold and securities
purchased under agreements to resell 2 18
Deposits with banks 0 0
Total Interest Income 4,336 3,407
INTEREST EXPENSE:
Deposits 1,884 1,565
Other Short Term Funds Borrowed 146 27
Long-Term Borrowings 144 13
Total interest expense 2,174 1,605
Net interest income 2,162 1,802
Provision for loan losses 75 135
Net interest income after
provision for loan losses 2,087 1,667
NON-INTEREST INCOME:
Trust fees 173 173
Service charges on deposit accounts 123 123
Insurance and claims processing 41 41
Securities gains (losses), net 4 0
Other Income 40 46
Total Non-interest Income 381 383
NON-INTEREST EXPENSE:
Salaries and employee benefits 925 887
Premise and equipment expense 348 217
FDIC Deposit expense 9 3
Other expenses 427 351
Total non-interest expense 1,709 1,458
Income before income taxes 759 592
Provision for income tax 284 195
Net Income 475 397
NET INCOME PER COMMON SHARE:
Primary .64 .53
Weighted average common shares
outstanding 745,028 747,536
DIVIDENDS DECLARED:
Cash dividends 0.15 0.15
(Dollars amounts in thousands)
The accompanying notes are an integral part of this statement.
SVB&T CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS
Three Months Ended March 31,
(unaudited) 2000 1999
____________________________________________________________________________
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income 475 397
ADJUSTMENTS TO RECONCILE NET INCOME TO CASH
PROVIDED FROM OPERATING ACTIVITIES:
Directors Stock Option Compensation 1 4
Depreciation 101 97
Net premium amortization (discount accretion)
of investment securities 10 6
Provision of loan losses 75 135
Decrease(increase) in interest receivable 50 49
(Increase) decrease in other assets (661) (46)
Increase (decrease) in accrued expenses and
other liabilities 346 (194)
Net cash flows provided by operating
activities 397 448
CASH FLOWS FROM INVESTING ACTIVITIES:
Net increase of interest bearing deposits
in other banks (43) 25
Purchase of investment securities available
for sale (1,536) (997)
Proceeds from maturities and paydowns of
investment securities available for sale 1,412 2,888
Net (increase) decrease in loans (9,015) (9,340)
Purchase of premises and equipment (69) (19)
Net cash flows used in investing
activities (9,251) (7,443)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits and
short-term borrowings
Non-interest bearing demand (10,218) (995)
Total interest-bearing deposits 2,337 1,031
Federal Funds Purchased 3,460 0
Other Short-Term Borrowings 0 5,000
Long-Term Borrowings 7,000 0
Cash dividends paid 134 112
Treasury Stock Sold 27 41
Treasury Stock Purchased 0 (48)
Net cash flows provided by (used in)
financing activities 2,740 5,141
Net increase (decrease) in cash equivalents (6,114) (1,854)
Cash and cash equivalents at beginning of
period 10,765 7,055
Cash and cash equivalents at end of period 4,651 5,201
Total interest paid 2,145 1,589
Total taxes paid 333 266
(Dollars amounts in thousands)
The accompanying notes are an integral part of this statement.
SVB&T CORPORATION CONSOLIDATED STATEMENT
OF CHANGES IN SHAREHOLDERS' EQUITY
Three Months Ended March 31,
(unaudited) 2000 1999
__________________________________________________________________________
Balance, beginning of period 20,369 20,333
Net income 475 397
Cash dividends (134) (12)
Net unrealized gain (loss) on investment
securities (72) (35)
Sales of Treasury Stock 138 41
Purchase of Treasury Stock 0 (48)
Balance, end of period 20,776 20,576
(Dollar amounts in thousands)
The accompanying notes are an integral part of this statement.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Principles of Consolidation - The consolidated financial statements include
the accounts of SVB&T Corporation and its wholly owned subsidiary, Springs
Valley Bank & Trust Company. All significant intercompany balances and
transactions have been eliminated.
All adjustments which are, in the opinion of management, necessary for a fair
presentation of the results for the periods reported, consisting only of
normal adjustments, have been included in the accompanying unaudited
consolidated condensed financial statements. The results of operations for
three month period ended March 31, 2000 is not necessarily indicative of
those expected for the remainder of the year.
March 31, 2000 March 31, 1999 Dec. 31, 1999
_____________________________________________________________________________
INVESTMENT SECURITIES:
U.S. treasury securities 0 0 0
U.S. Government corporations
& agencies 13,460 13,249 13,526
States and political subdivisions 10,468 9,279 10,405
Mortgage - backed securities 130 174 132
Other domestic securities 834 875 835
Equity Securities 1,205 591 1,205
Total Investment Securities 26,097 24,168 26,103
March 31, 2000 March 31, 1999 Dec. 31, 1999
_____________________________________________________________________________
LOANS:
Commercial and industrial loans 27,655 12,906 21,945
Real estate loans 100,303 89,240 98,851
Construction loans 7,129 2,209 6,490
Agricultural production financing
and other loans to farmers 1,852 1,324 1,316
Individual loans for household
and other personal expense 46,549 46,074 46,295
Economic development revenue bonds 0 0 0
Lease Financing Receivable 348 451 336
Other Loans Excluding Consumer 332 650 0
Less: Unearned income on loans 141 151 141
Total Loans 184,027 152,703 175,119
(Dollars amounts in thousands)
PART I
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
SUMMARY OF OPERATING RESULTS
EARNINGS ANALYSIS
Net income for the first three months of $475,000 represents an increase of
$78,000 or 20% from the $397,000 reported for the same period last year.
This resulted from an increase in the net interest income during the first
quarter of 2000.
NET INTEREST INCOME
SVB&T Corporation's primary source of earnings is net interest income, which
is the difference between interest earned on loans and other investments and
the interest incurred for deposits and other sources of funds. In the first
three months of 2000, net interest income increased by $360,000 or 20% for
the same period in 1999. The net interest margin increase compared to the
same period last year was primarily a result of rates of return on adjustable
rate mortgages increases. The loan volume has increased $8,908,000 comparing
2000 to 1999. Loan yields are higher than investment yields which increase
the net interest income.
OTHER INCOME
Other income of $381,000 for the first quarter of 2000 is $2,000 or 1% less
than the same period for 1999. All incomes have remained at the same level
as last year.
OTHER EXPENSES
For the first three months of 2000, other expenses increased by $251,000 to
$1,709,000 compared to $1,458,000 for the same period of 1999. This is due
to a 5% increase in employee benefits and increased computer expenses.
ANALYSIS OF FINANCIAL CONDITION
ALLOWANCE FOR POSSIBLE LOAN LOSSES
The Corporation's allowance for loan losses was $1,662,000 at March 31, 2000
compared to $1,198,000 at March 31, 1999.
At March 31, 2000 the allowance for possible loan losses was .90% of total
loans, net for unearned interest. This compares to an allowance of .78%
at March 31, 1999. Net charge offs for the first three months of 2000 were
$40,000, compared to $43,000 for the same period last year. Based on
management's review of the portfolio, management believes the allowance of
$1,662,000 is adequate.
LIQUIDITY AND ASSET/LIABILITY MANAGEMENT
The Corporation's objective in liquidity management is to manage the assets
and liabilities to meet the needs of borrowers while allowing for the
possibility of deposit withdrawals. The primary purpose of asset/liability
management is to minimize the effect on net income of changes in interest
rates and to maintain a prudent match within specified time periods of
rate-sensitive assets and rate-sensitive liabilities.
As of March 31, 2000 the rate-sensitive assets were 61% of rate-sensitive
liabilities in the 1-180 day maturity category and 74% in the 181-365 day
range. These positions are within acceptable ranges as determined by funds
management policy. The Corporation's Funds Management Committee meets weekly
to monitor and effect changes necessary in the liquidity and rate-sensitivity
positions.
CAPITAL
Total shareholders' equity as of March 31, 2000 was $20,776,000 compared to
$20,576,000 for the same period last year. This increase is attributed to
the increase in Net Income for 1999 and the increase of the net unrealized
loss on investment securities.
(ANALYSIS OF FINANCIAL CONDITIONS CONTINUED)
As of March 31, 2000 the corporation's leverage capital ratio was 9.26% which
compared to 10.95% at March 31, 1999.
As of March 31, 2000 the corporation's total risk-based capital ratio was
12.49% compared to 15.17% at March 31, 1999.
These ratios are in excess of regulatory requirements of 4% for leverage
capital and 8% for total risk-based capital.
PART II
OTHER INFORMATION
Item 1 - LEGAL PROCEEDINGS
None
Item 2 - CHANGES IN SECURITIES
None
Item 3 - DEFAULTS UPON SENIOR SECURITIES
None
Item 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
Item 5 - OTHER INFORMATION
None
Item 6 - EXHIBITS AND REPORTS OF FORM 8-K
None
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.
SVB&T Corporation
(Registrant)
By: Ronald G. Seals
President and Chief Executive Officer
By: David Rees
Principal Financial Officer
Date: May 12, 2000