UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A - AMENDMENT NO. 2
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): NOVEMBER 14, 1995
-----------------
FIRST BANK SYSTEM, INC.
-----------------------
(Exact name of registrant as specified in its charter)
DELAWARE 1-6880 41-0255900
-------- ------ ----------
(State or other jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
601 SECOND AVENUE SOUTH, MINNEAPOLIS, MINNESOTA 55402
- ----------------------------------------------- -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 612-973-1111
------------
NOT APPLICABLE
--------------
(Former name or former address, if changed since last report)
The undersigned registrant hereby amends its Current Report on Form 8-K filed
on August 18, 1995 to update the financial statements of FirsTier Financial,
Inc. to include results for the quarter ended September 30, 1995.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) UNAUDITED FINANCIAL STATEMENTS OF FIRSTIER FINANCIAL, INC.
Consolidated Condensed Balance Sheets -- September 30, 1995
and December 31, 1994 (unaudited)
Consolidated Statements of Income -- Nine months ended
September 30, 1995 and 1994 (unaudited)
Consolidated Statements of Retained Earnings -- Nine months
ended September 30, 1995 and 1994 (unaudited)
Consolidated Statements of Cash Flows -- Nine months ended
September 30, 1995 and 1994 (unaudited)
Notes to Consolidated Financial Statements -- September 30,
1995 (unaudited)
SIGNATURE
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.
FIRST BANK SYSTEM, INC.
By: /s/ David J. Parrin
--------------------
David J. Parrin
Senior Vice President & Controller
DATE: November 14, 1995
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For Quarter Ended September 30, 1995 Commission File No. 0-4515
FIRSTIER FINANCIAL, INC.
---------------------------------------------------------
(Exact name of registrant as specified in its charter)
Nebraska 47-0523055
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(state or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or
organization)
1700 Farnam Street Omaha, Nebraska 68102-2183
---------------------------------------------------------
(address of principal executive offices)
402-348-6000
--------------------
(Telephone Number)
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
such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for
at least the past 90 days.
YES X NO
----- -----
Number of common shares outstanding as of November 7, 1995:
Common Stock, $5.00 par value: 18,522,507 shares outstanding.
FIRSTIER FINANCIAL, INC.
INDEX
PART I. FINANCIAL INFORMATION Page No.
--------
Item 1. Financial Statements
Consolidated Condensed Balance Sheets -
September 30, 1995 and December 31, 1994........... 1
Consolidated Statements of Income - Three and nine
months ended September 30, 1995 and 1994........... *
Consolidated Statements of Retained Earnings - Nine
months ended September 30, 1995 and 1994........... *
Consolidated Statements of Cash Flows - Nine
months ended September 30, 1995 and 1994........... 2
Notes to Consolidated Financial Statements........... 3-4
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations. 5-9
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K............ 10
Signatures........................................... 10
* Incorporated in this quarterly report by reference to
FirsTier Financial, Inc.'s September 30, 1995 Quarterly
Report to Stockholders (pages 4 and 6) which is attached
as an Exhibit to this quarterly report.
FIRSTIER FINANCIAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
September 30, December 31,
1995 1994
------------ ------------
ASSETS
Cash and due from banks............................................................... $208,242 251,756
Federal funds sold & securities purchased under resale agreements..................... 97,050 119,845
Securities available for sale (amortized cost $255,241 in 1995 and $250,811 in 1994).. 261,411 245,267
Investment securities (market value $755,303 in 1995 and $660,068 in 1994)............ 740,843 692,457
Loans and leases...................................................................... 2,191,140 2,149,268
Less allowance for loan & lease losses............................................... 52,064 53,250
------------ ------------
Loans and leases, net.............................................................. 2,139,076 2,096,018
------------ ------------
Premises and equipment, net........................................................... 50,435 49,381
Accrued interest receivable........................................................... 35,082 29,700
Other assets.......................................................................... 53,283 55,563
------------ ------------
Total assets....................................................................... $3,585,422 3,539,987
------------ ------------
------------ ------------
LIABILITIES
Demand, non-interest bearing.......................................................... $470,703 560,025
Savings and interest checking......................................................... 867,832 874,647
Time.................................................................................. 1,437,124 1,380,154
------------ ------------
Total deposits..................................................................... 2,775,659 2,814,826
Short-term borrowings................................................................. 205,543 170,090
Federal Home Loan Bank borrowings..................................................... 156,500 150,000
Other liabilities..................................................................... 59,934 50,646
Long-term debt........................................................................ 11,773 12,193
------------ ------------
Total liabilities.................................................................. 3,209,409 3,197,755
------------ ------------
STOCKHOLDERS' EQUITY
Preferred stock-$30 par value; authorized 2,000,000 shares............................ - -
Common stock-$5 par value; authorized 40,000,000 shares; issued and outstanding:
18,822,202 shares in 1995 and 18,927,195 shares in 1994............................. 94,111 94,073
Surplus............................................................................... 5,432 10,338
Retained earnings..................................................................... 282,621 255,861
Net unrealized securities gains (losses).............................................. 3,824 (3,583)
------------ ------------
385,988 356,689
Less treasury stock, at cost 300,820 shares in 1995 and 455,050 shares in 1994........ 9,975 14,457
------------ ------------
Total stockholders' equity......................................................... 376,013 342,232
------------ ------------
Total liabilities & stockholders' equity........................................... $3,585,422 3,539,987
------------ ------------
------------ ------------
See accompanying notes to consolidated financial statements
1
FIRSTIER FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
($ in thousands)
(Unaudited)
1995 1994
-------- ---------
Net cash provided by operating activities
Income from operations................................... $42,645 41,444
Adjustments to reconcile net income to
net cash provided by operations
Provision for loan and lease losses.................. 807 (1,220)
Depreciation and amortization........................ 5,931 7,020
Net increase in interest receivable.................. (5,034) (5,872)
Proceeds from sales of loans......................... 54,242 41,695
Net (increase) decrease in other assets.............. 528 (693)
Net increase in other liabilities.................... 9,204 3,511
Net gain on sale of securities available for sale.... (1) 3,721
Other, net........................................... (84) (12)
-------- ---------
Net cash provided by operations.................. 108,238 89,594
Cash flows from investing activities
Net cash received on acquisition..................... 1,530 -
Proceeds from sales of securities available for sale. 13,382 17,116
Proceeds from maturities of investment securities.... 37,064 138,499
Proceeds from maturities of securities available for
sale............................................... 78,357 27,105
Purchases of investment securities................... (56,694) (75,235)
Purchases of securities available for sale........... (112,969) (70,654)
Net increase in loans and leases..................... (74,870) (143,039)
Proceeds from sale of premises and equipment......... 450 62
Purchases of premises and equipment.................. (5,112) (3,802)
Purchases of mortgage servicing rights............... (843) (232)
Other, net........................................... 12 557
-------- ---------
Net cash used by investing activities............ (119,693) (109,623)
Cash flows from financing activities
Net increase in time deposits........................ 28,225 52,421
Net decrease in demand deposits and savings accounts. (104,255) (148,781)
Net increase in short-term borrowings................ 34,762 104,555
Net increase in Federal Home Loan Bank borrowings.... 6,500 89,690
Principal payments on long-term debt................. (420) (383)
Payment of cash dividends............................ (15,886) (13,382)
Repurchases of common stock.......................... (4,684) (9,565)
Proceeds from exercises of stock options............. 1,292 474
Other, net........................................... (388) -
-------- ---------
Net cash provided (used) by financing activities. (54,854) 75,029
Net (decrease) increase in cash and cash equivalents....... (66,309) 55,000
Cash and cash equivalents at beginning of period........... 371,601 331,848
-------- ---------
Cash and cash equivalents at end of period................. $305,292 386,848
-------- ---------
-------- ---------
See accompanying notes to consolidated financial statements
2
FIRSTIER FINANCIAL, INC.
PART I. FINANCIAL INFORMATION
ITEM 1. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions to
Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include
all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included.
2. Operating results for the three and nine month
periods ended September 30, 1995, are not necessarily
indicative of the results that may be expected for the year
ended December 31, 1995. For further information, refer to
the consolidated financial statements and footnotes thereto
included in the Company's annual report on Form 10-K for the
year ended December 31, 1994.
3. Income per share computations are based on average
shares of common stock outstanding, including common
stock equivalents, which total 18,749,481 and 18,880,955,
respectively, for the three months ended September 30, 1995
and 1994, and 18,694,966 and 18,977,579, respectively, for the
nine months ended September 30, 1995 and 1994.
4. See notes to consolidated financial statements includedon
page 6 of FirsTier Financial, Inc.'s September 30, 1995
Quarterly Report to Stockholders which is attached as an
Exhibit to this quarterly report.
5. For purposes of the Statement of Cash Flows, FirsTier
defines "Cash and due from banks" and "Federal funds sold
and securities purchased under resale agreements" as its
cash and cash equivalents. FirsTier paid $89.22 million
and $68.66 million in interest on deposits and
other borrowings, and $13.68 million and $15.09
million for income taxes for the nine months ended
September 30, 1995 and 1994, respectively.
6. Effective January 1, 1995, FirsTier adopted SFAS Number
114, "Accounting by Creditors for Impairment of a Loan"
and SFAS Number 118, "Accounting by Creditors for
Impairment of a Loan-Income Recognition and Disclosures."
These Statements, effective for fiscal years beginning
after December 15, 1994, address the accounting for a
loan when it is probable that all principal and
interest amounts due will not be collected in accordance
with its contractual terms. FirsTier generally identifies
nonaccrual loans as "impaired loans." Certain loans,
such as loans carried at the lower of cost or market or
3
FIRSTIER FINANCIAL, INC.
PART I. FINANCIAL INFORMATION
ITEM 1. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
smaller balance homogeneous loans (e.g., credit card,
installment loans) are exempt from SFAS Number 114 and
118 provisions. The adoption of SFAS Number 114 and 118
does not materially impact required Industry Guide 3
credit risk tables disclosed in FirsTier's Form 10-K for
the year ended December 31, 1994.
FirsTier continually identifies impaired loans and
measures quarterly the extent to which such loans are
impaired in accordance with regulatory guidelines. This
analysis involves an assessment of the business
environment in FirsTier's lending market, the amount of
concentrations in industries along with borrowers'
employment, historical losses charged to the allowance for
loan loss, the level of vulnerability to business cycles,
as well as other factors.
Loans having a significant recorded investment are
measured on an individual basis while loans not having a
significant recorded investment are grouped and
measured on a pool basis. Generally, FirsTier's
"impaired loans" are measured based on the loans'
observable market price, the fair value of the
collateral (if the loan is collateral dependent) less
estimated costs to sell, or the present value of expected
future cash flows discounted at the loans' effective
interest rate, if the cash flows can be reasonably
projected.
As of September 30, 1995, the recorded investment in loans
considered impaired under SFAS Number 114 was $9.1
million, with a related allowance for credit losses of
$2.8 million. All loans designated as impaired have been
allocated an allowance for credit loss.
FirsTier retained its prior method of recognizing
interest and applying cash payments received with respect
to impaired loans. The average recorded investment in
impaired loans for the quarter ended September 30, 1995,
was approximately $8.6 million. During the first
nine months of 1995, FirsTier recognized interest
income of $132,000 associated with impaired loans.
4
FIRSTIER FINANCIAL, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain
significant factors which have affected the Registrant's financial
condition and results of operations during the periods included
in the consolidated financial statements presented with this
filing.
RESULTS OF OPERATIONS
Net income for the third quarter of 1995 was $15,009,000 or $.80
per share, compared to net income of $13,872,000 or $.73 per
share for the same period in 1994. Net income for the nine
months ended September 30, 1995 was $42,645,000 or $2.28 per
share, compared to net income of $41,444,000 or $2.18 per share
for the same period in 1994.
The annualized return on average assets for the three months
ended September 30 was 1.66% in 1995 compared to 1.60% in 1994.
The annualized return on average equity for the three months
ended September 30 was 16.13% in 1995 compared to 16.18% in 1994.
The schedule on page 6, Average Balances/Yields and Rates,
shows that FirsTier's net interest income, on a fully taxable
equivalent basis for the third quarter of 1995, was
$36,040,000, a .5% increase from the $35,863,000 recorded for the
same period in 1994. The net interest margin of 4.37% in the
third quarter of 1995 was down from the 4.53% net interest margin
recorded in the third quarter of 1994. This decrease was mainly
attributable to a compressed net interest rate spread but was
partially offset by increased net earning assets which were up
4.2% from the third quarter of 1994. Included in net interest
income is $424,100 of expense from interest rate swaps which
decreased the net interest margin for the quarter by five basis
points. Income from interest rate swaps for the quarter ended
September 30, 1994 was $143,000 which added two basis points to
that quarter's net interest margin.
A provision of $269,000 was recorded in the third quarter of1995
compared to a provision of $370,000 for the same period in 1994.
The provision recorded was based on FirsTier's on-going analysis
of the adequacy of the allowance for loan and lease losses. The
allowance for loan and lease losses as a percent of loans and
leases as of September 30, 1995, was 2.38% compared to 2.59% as
of September 30, 1994. Net charge-offs of loan and lease
losses for the third quarter were $1,207,000 compared to net
recoveries of $252,000 for the same period in 1994.
5
FIRSTIER FINANCIAL, INC.
AVERAGE BALANCES/YIELDS AND RATES
(Dollars in Thousands)
(Unaudited)
THREE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, 1995 SEPTEMBER 30, 1994
INTEREST AVERAGE INTEREST AVERAGE
AVERAGE INCOME/ YIELDS/ AVERAGE INCOME/ YIELDS/
BALANCES EXPENSE RATES BALANCES EXPENSE RATES
ASSETS
Securities....................................... $995,681 18,569 7.40% $1,008,801 18,366 7.22%
Federal funds sold and securities
purchased under resale agreements.............. 103,742 1,549 5.93% 110,028 1,316 4.75%
Loans and leases, gross.......................... 2,175,473 48,404 8.83% 2,024,936 41,246 8.08%
--------- ------- ---------- -------
Total earning assets........................... 3,274,896 68,522 8.30% 3,143,765 60,928 7.69%
Other nonearning assets.......................... 308,739 - - 313,246 - -
--------- ------- ---------- -------
Total assets.................................$3,583,635 68,522 - $3,457,011 60,928 -
========== ------- ========== -------
LIABILITIES & STOCKHOLDERS' EQUITY
Interest-bearing deposits
Savings and interest checking.................. $883,124 5,894 2.65% $886,716 4,817 2.16%
Time deposits.................................. 1,443,511 21,643 5.95% 1,302,750 15,846 4.83%
--------- ------- ---------- -------
Total interest-bearing deposits.............. 2,326,635 27,537 4.70% 2,189,466 20,663 3.74%
Short-term borrowings............................ 172,450 2,272 5.23% 208,701 2,168 4.12%
Federal Home Loan Bank borrowings................ 156,500 2,381 6.04% 158,788 1,929 4.82%
Long-term debt................................... 2,027 55 10.84% 2,302 62 10.62%
Capitalized leases............................... 9,827 237 9.56% 10,096 243 9.55%
--------- ------- ---------- -------
Total interest-bearing funds................... 2,667,439 32,482 4.83% 2,569,353 25,065 3.87%
Demand deposits.................................. 493,542 - - 502,683 - -
Other noninterest-bearing funds.................. 53,578 - - 44,746 - -
Stockholders' equity............................. 369,076 - - 340,229 - -
--------- ------- ---------- -------
Total liabilities and equity.................$3,583,635 32,482 - $3,457,011 25,065 -
Net interest margin on a tax ========== ------- ========== -------
equivalent basis........................... $36,040 4.37% $35,863 4.53%
======= ===== ======= =====
NINE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, 1995 SEPTEMBER 30, 1994
INTEREST AVERAGE INTEREST AVERAGE
AVERAGE INCOME/ YIELDS/ AVERAGE INCOME/ YIELDS/
BALANCES EXPENSE RATES BALANCES EXPENSE RATES
ASSETS
Securities....................................... $984,086 54,974 7.47% $1,038,817 56,344 7.25%
Federal funds sold and securities
purchased under resale agreements.............. 113,724 5,094 5.99% 93,647 2,882 4.11%
Loans and leases, gross.......................... 2,172,554 143,519 8.83% 1,983,521 119,421 8.05%
---------- ------- ---------- -------
Total earning assets........................... 3,270,364 203,587 8.32% 3,115,985 178,647 7.67%
Other nonearning assets.......................... 308,477 - - 310,220 - -
---------- ------- ---------- -------
Total assets.................................$3,578,841 203,587 - $3,426,205 178,647 -
========== ------- ========== -------
LIABILITIES & STOCKHOLDERS' EQUITY
Interest-bearing deposits
Savings and interest checking.................. $868,061 16,326 2.51% $910,682 14,354 2.11%
Time deposits.................................. 1,434,787 62,022 5.78% 1,293,140 45,063 4.66%
---------- ------- ---------- -------
Total interest-bearing deposits.............. 2,302,848 78,348 4.55% 2,203,822 59,417 3.60%
Short-term borrowings............................ 204,276 8,177 5.35% 210,749 5,524 3.50%
Federal Home Loan Bank borrowings................ 153,719 7,102 6.18% 112,435 3,763 4.47%
Long-term debt................................... 2,098 171 10.90% 2,369 189 10.67%
Capitalized leases............................... 9,896 711 9.60% 10,159 729 9.59%
---------- ------- ---------- -------
Total interest-bearing funds................... 2,672,837 94,509 4.73% 2,539,534 69,622 3.67%
Demand deposits.................................. 496,440 - - 504,011 - -
Other noninterest-bearing funds.................. 51,553 - - 45,515 - -
Stockholders' equity............................. 358,011 - - 337,145 - -
---------- ------- ---------- -------
Total liabilities and equity.................$3,578,841 94,509 - $3,426,205 69,622 -
Net interest margin on a tax ========= ------- ========== -------
equivalent basis........................... $109,078 4.46% $109,025 4.68%
======= ===== ======= =====
Note: Income and rates are stated on a tax-equivalent basis assuming a
marginal tax rate of 35%.
6
FIRSTIER FINANCIAL, INC.
Under-performing assets as a percent of total loans, leases,other
real estate owned and repossessed assets was .55% at September
30, 1995 compared to .71% at September 30, 1994. Non-accrual loans
as of September 30, 1995 totalled $9,053,000, down 18.4% from
the third quarter of 1994. Total under-performing assets at
September 30, 1995 total $12,117,000, which represents a
$1,300,000 or 12.0% increase from June 30, 1995 and a $2,400,000
or 16.5% decrease from September 30, 1994. Additional
information regarding the balance of non-accrual loans at
September 30, 1995, and related interest payment information is
provided on page 8.
Total non-interest income for the third quarter of 1995 was
$14,603,000 which is up $129,000, or .9% from the same period in
1994. The increase in non-interest income from the previous
year is mainly attributable to Service Charges on Deposits
Accounts which increased $550,000 or 14.4%.
Total non-interest expense of $26,827,000 for the quarter is down
$1,673,000, or 5.9%, from the same period in 1994. This
decrease is primarily due to a pretax credit of $1,500,000
received from the FDIC which represents a refund on a portion of
fees paid by FirsTier Banks in the second and third quarters of
1995.
As of September 30, 1995, FirsTier employed a staff of 1,711 FTE
which is up 171 FTE, or 11.1%, from the September 30, 1994
employment level. This increase is primarily due to the
acquisition of Cornerstone Bank Group in Iowa on January 3, 1995.
MATERIAL CHANGES IN FINANCIAL CONDITION
All companies included in the consolidated financial statements
are "financial" companies. Accordingly, average balances of
assets and liabilities are more representative of financial
condition than balances as of period-end. The schedule of
Average Balances/Yields and Rates on page 6 shows average
balances of earning assets and interest bearing liabilities for
the periods being reported. Because these average balances are
an integral part of the financial statements, all comments as to
significant volume changes refer to average balances unless
otherwise indicated.
Total assets of $3.58 billion for the third quarter of 1995 were
up 3.7% from the same period in 1994. Loans have increased
$150.5 million, or 7.4%. Average securities of $995.7
million, which included securities available for sale as of
September 30, 1995 of $261.4 million, decreased $13.1 million,
or 1.3% from 1994.
7
FIRSTIER FINANCIAL, INC.
NONACCRUAL LOAN SUMMARY
SEPTEMBER 30, 1995
Generally, the accrual of income is discontinued when the full collection of
principal or interest is in doubt, or when the payment of principal or
interest has become contractually 90 days past due unless the obligation is
both well secured and in the process of collection. Nonaccrual loans and the
application of cash interest payments on those loans as of September 30, 1995
are as follows ($ in thousands):
Cash interest payments applied as
Contractual ----------------------------------
Book balance balance Recovery of Reduction
at Sept. at Sept. 30 Interest partial of
1995 1995 income charge-offs principal
------------ ------------ -------- ----------- ---------
Contractually past due with:
o substantial performance 215 237 1 0 5
o limited performance 1,285 2,019 12 0 30
o no performance 718 819 0 0 4
Contractually current, however,:
o payment in full of principal
or interest in doubt 6,006 11,640 115 0 393
o other 829 1,122 4 0 9
------ ------- ---- -- ----
Total $9,053 $15,837 $132 $0 $441
------ ------- ---- -- ----
------ ------- ---- -- ----
8
FIRSTIER FINANCIAL, INC.
Total deposits for the third quarter averaged $2.82 billion which
was up $128.0 million, or 4.8%, from the same period in 1994.
Time deposits have increased $140.8 million or 10.8% from the
third quarter of 1994 while demand deposits and savings and
interest checking have decreased $3.6 million and $9.1 million,
respectively, or .4% and 1.8%, respectively.
Net funds purchased of $68.7 million (the difference between
"short-term borrowings" and "federal funds sold and securities
purchased under resale agreements") decreased $30.0 million from
the average net purchased position in the third quarter of 1994.
Long-term debt as of September 30, 1995 of $11.9 million,
consisting of a mortgage loan by the Lincoln Bank and
capitalized leases of the Omaha Bank, decreased $544,000 from
September 30, 1994. The Parent Company had no borrowings as of
September 30, 1995.
LIQUIDITY AND CAPITAL RESOURCES
The maintenance of an adequate level of liquidity is necessary
to ensure that sufficient funds are available to meet customers'
loan demand and deposit withdrawals. Sources of liquidity
consist of maturities of securities recorded at amortized cost,
liquidation of securities held for sale, maturing loans, federal
funds sold and borrowings from the Federal Home Loan Bank.
Management also considers customer-related core deposits
and funds borrowed to be stable and reliable sources of
funding.
Liquidity is also important for the Parent Company. The Parent
Company's primary source of liquidity is dividends and
management fees from subsidiary banks. The Parent Company's
primary liquidity requirements are the payment of dividends and
expenses associated with management and consolidated services
provided to subsidiaries. Management believes the Parent
Company has adequate liquidity to meet its funding needs.
At September 30, 1995 stockholders' equity was $376.0 million
compared to $342.6 million at September 30, 1994, an increase
of $33.4 million or 9.7%. The Tier 1 Leverage ratios (tangible
equity capital divided by adjusted average assets) as of September
30, 1995 and September 30, 1994 were 10.06% and 9.71%,
respectively. FirsTier's risk based capital ratios as of
September 30, 1995 were 15.01% for Tier I Capital and 16.28% for
Total Capital.
9
FIRSTIER FINANCIAL, INC.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits -
(10) Material Contracts
(e)(iv) Amendment dated August 4, 1995 to
Executive Employment Agreement with
David A. Rismiller
(20) Quarterly Report to Stockholders for the
period ended September 30, 1995 - Part I
Exhibit.
(b) Reports on Form 8-K
On August 6, 1995, FirsTier filed a report on Form
8-K which disclosed details of an Agreement of
Merger and Consolidation of FirsTier Financial, Inc.
with and into First Bank System, Inc.
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunder duly authorized.
FIRSTIER FINANCIAL, INC.
Date: November 10, 1995 By:/s/ Aaron C. Hilkemann
------------------------------
Aaron C. Hilkemann
Vice President and Director of
Financial Operations
Date: November 10, 1995 By:/s/ Thomas B. Fischer
------------------------------
Thomas B. Fischer
Vice President, Secretary and
General Counsel
10