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): October 22, 1997 (October 22, 1997) SIS Bancorp, Inc. (Exact name of registrant as specified in charter) Massachusetts 000-20809 04-3303264 (State or other jurisdiction (Commission file number) (IRS employer of incorporation) identification no.) 1441 Main Street, Springfield, MA 01102 (Address of principal executive offices) (Zip code) (413) 748-8000 Registrant's telephone number, including area code Item 5. Other Events On October 22, 1997, SIS Bancorp, Inc. (the "Company") issued a press release containing unaudited financial information and announcing a cash dividend for the quarter ended September 30, 1997, and containing information relating to its previously announced acquisition (the "Acquisition") of Glastonbury Bank & Trust Company ("Glastonbury"). A copy of the press release is filed as Exhibit 99.1 to this report and is incorporated herein by reference. Cautionary Statements Relating to Certain Forward Looking Statements The exhibit filed with this Current Report and incorporated herein by reference contains a forward-looking statement concerning an anticipated charge to be taken for expenses related to the Acquisition. The Company cautions readers that certain factors, including without limitation certain operational issues, may affect the actual timing and amount of the charge. For example, the planned consolidation of various "back office" functions of the two companies may be delayed as a result of difficulties in consolidating such functions. In addition, if the Company is unable to retain certain key management personnel of Glastonbury, the consolidation of such functions may be more time-consuming and difficult and, therefore, more expensive. Item 7. FINANCIAL STATEMENTS AND EXHIBITS. (a) Financial Statements Condensed Consolidated Balance Sheet F-1 Condensed Consolidated Statement of Operations F-2 Selected Financial Ratios and Data F-3 (c) Exhibits 99.1 Press Release of the Company, dated October 22, 1997 SIS BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (In thousands) (Unaudited) (Unaudited) September 30, December 31, September 30, -------------------------------------------- 1997 1996 1996 ------------- ----------- ------------ Assets Cash and due from banks $ 34,464 $ 31,902 $ 34,709 Federal funds sold and short-term investments 6,692 10,045 17,545 Investment securities available for sale 502,868 449,323 386,050 Investment securities held to maturity 182,320 192,174 194,132 Residential real estate loans 237,623 242,410 244,067 Commercial real estate loans 121,355 118,442 121,803 Commercial loans 189,440 155,808 144,431 Home equity loans 133,049 104,206 91,554 Consumer loans 4,841 4,132 4,707 ----------- ----------- ----------- Total loans 686,308 624,998 606,562 Unearned income and fees 2,141 1,196 977 Allowance for possible loan losses (18,393) (15,597) (15,488) ----------- ----------- ----------- Total loans, net 670,056 610,597 592,051 Accrued interest and dividends receivable 9,517 8,982 8,440 Investments in real estate and real estate partnerships 2,666 2,757 4,858 Foreclosed real estate, net 199 381 512 Bank premises, furniture and fixtures, net 28,244 27,106 25,660 Other assets 15,991 15,345 20,609 ----------- ----------- ----------- Total assets $ 1,453,017 $ 1,348,612 $ 1,284,566 =========== =========== =========== Liabilities and Stockholders' Equity Deposits $ 1,021,613 $ 969,517 $ 954,132 Federal Home Loan Bank advances 134,297 68,471 48,189 Securities sold under agreements to repurchase 148,888 176,577 151,144 Loans payable 2,670 2,848 3,026 Mortgage escrow deposits 6,543 4,396 6,294 Accrued expenses and other liabilities 32,048 24,886 24,721 ----------- ----------- ----------- Total liabilities 1,346,059 1,246,695 1,187,506 Stockholders' equity: Preferred stock ($.01 par value; 5,000,000 shares authorized; no shares issued and outstanding) -- -- -- Common stock ($.01 par value; 25,000,000 shares authorized; shares issued: 5,727,242 at September 30, 1997; 5,723,600 at December 31, 1996; and 5,722,600 at September 30, 1996; outstanding: 5,580,842 at September 30, 1997; 5,723,600 at December 31, 1996; and 5,722,600 at September 30, 1996) 57 57 57 Unearned compensation (3,036) (3,693) (4,282) Additional paid-in capital 43,218 42,665 42,469 Retained earnings 67,901 60,993 58,483 Net unrealized gain on investment securities available for sale 2,678 1,895 333 Treasury stock, at cost (146,400 shares at September 30, 1997) (3,860) 0.00 0.00 ----------- ----------- ----------- Total stockholders' equity 106,958 101,917 97,060 ----------- ----------- ----------- Total liabilities and stockholders' equity $ 1,453,017 $ 1,348,612 $ 1,284,566 =========== =========== =========== F-1 SIS BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In Thousands Except Per Share Amounts) (Unaudited) (Unaudited) Three Months Ended Nine Months Ended ------------------------- ----------------------------- September 30, September 30, September 30, September 30, 1997 1996 1997 1996 ----------- ------------ ------------- -------------- Interest and dividend income: Loans $ 13,958 $ 12,472 $ 40,285 $ 35,946 Investment securities available for sale 8,019 5,934 24,105 15,230 Investment securities held to maturity 3,169 3,279 9,849 9,494 Federal funds sold and short-term investments 357 121 716 380 ----------- ----------- ----------- ----------- Total interest and dividend income 25,503 21,806 74,955 61,050 ----------- ----------- ----------- ----------- Interest expense: Deposits 8,735 8,270 25,614 24,338 Borrowings 4,258 2,291 11,782 5,439 ----------- ----------- ----------- ----------- Total interest expense 12,993 10,561 37,396 29,777 ----------- ----------- ----------- ----------- Net interest and dividend income 12,510 11,245 37,559 31,273 Less: Provision for possible loan losses 402 750 1,203 2,200 ----------- ----------- ----------- ----------- Net interest and dividend income after provision for possible loan losses 12,108 10,495 36,356 29,073 Noninterest income: Net gain on sale of loans 136 105 328 537 Net gain on sale of securities 10 62 21 64 Fees and other income 3,157 2,761 8,533 7,645 ----------- ----------- ----------- ----------- Total noninterest income 3,303 2,928 8,882 8,246 ----------- ----------- ----------- ----------- Noninterest expense: Operating expenses: Salaries and employee benefits 4,971 4,408 14,631 12,900 Occupancy expense of bank premises, net 982 810 2,885 2,387 Furniture and equipment expense 565 558 1,596 1,614 Other operating expenses 3,751 3,846 10,992 10,617 ----------- ----------- ----------- ----------- Total operating expenses 10,269 9,622 30,104 27,518 ----------- ----------- ----------- ----------- Foreclosed real estate expense 90 29 58 252 Net (income) expense of real estate operations (63) (8) 416 (170) ----------- ----------- ----------- ----------- Total noninterest expense 10,296 9,643 30,578 27,600 Income before income tax expense (benefit) 5,115 3,780 14,660 9,719 Income tax expense (benefit) 1,946 (6,421) 5,731 (5,931) ----------- ----------- ----------- ----------- Net income $ 3,169 $ 10,201 $ 8,929 $ 15,650 =========== =========== =========== =========== Earnings per share: Primary $ 0.57 $ 1.85 $ 1.60 $ 2.86 Fully diluted $ 0.57 $ 1.84 $ 1.58 $ 2.82 Weighted average shares outstanding: Primary 5,521,785 5,511,554 5,584,339 5,475,422 Fully diluted 5,559,872 5,556,512 5,647,024 5,543,980 F-2 SIS BANCORP, INC. AND SUBSIDIARIES SELECTED FINANCIAL RATIOS AND DATA For the Three Months Ended September 30, 1997 1996 ----------- ---------- Financial Ratios: Fully diluted earnings per share $0.57 $1.84 Net interest margin (fully tax equivalent basis) 3.70% 3.94% Fee income / total average assets 0.88% 0.91% For the Nine Months Ended September 30, 1997 1996 ----------- ---------- Financial Ratios: Fully diluted earnings per share $1.58 $2.82 Net interest margin (fully tax equivalent basis) 3.79% 3.86% Fee income / total average assets 0.81% 0.88% At At At September 30, December 31, September 30, 1997 1996 1996 ------------- -------------- -------------- Asset Quality Ratios: Nonperforming assets to total assets 0.33% 0.56% 0.59% Allowance for possible loan losses to nonperforming loans 440.13% 223.61% 249.65% Allowance for possible loan losses to total gross loans 2.68% 2.50% 2.55% Capital Ratios: Equity to assets ratio 7.36% 7.56% 7.56% Tier 1 leverage capital ratio 7.13% 7.41% 7.31% Tier 1 risk-based capital ratio 11.81% 12.79% 12.13% Total risk-based capital ratio 13.07% 14.05% 13.39% Book value per share (1) $ 18.94 $ 18.29 $ 17.51 Other Data: Total residential loans serviced $ 985,656 $1,020,596 $1,039,876 Residential loans serviced for others 760,846 792,376 810,569 September December September 1997 1996 1996 ------------- -------------- -------------- Quarter to Date Average Balance Sheet (in thousands) : Average loans $ 667,344 $ 609,106 $ 590,978 Average earning assets 1,359,163 1,228,252 1,146,978 Average assets 1,435,305 1,303,877 1,217,783 Average interest-bearing liabilities 1,182,883 1,078,452 1,013,753 Average equity 101,747 96,774 88,221 <FN> 1) Calculated on the basis of 5,647,024; 5,573,390; and 5,543,980 weighted average shares outstanding on a fully diluted basis for the nine months ended September 30, 1997, the year ended December 31, 1996, and the nine months ended September 30, 1996, respectively. </FN> F-3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, SIS Bancorp, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SIS BANCORP, INC. Date: October 22, 1997 By: /s/F. William Marshall, Jr. Name: F. William Marshall, Jr. Title: President and Chief Executive Officer