U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
(Mark One)
X Quarterly report under Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended March 31,
2000.
___ Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from _______________ to ________________
Commission File No. 333-25179
PEOPLE'S COMMUNITY CAPITAL CORPORATION
(Exact Name of Small Business Issuer as Specified in its Charter)
SOUTH CAROLINA 58-2287073
(State of Incorporation) (I.R.S. Employer Identification No.)
106-A PARK AVENUE, S.W., AIKEN, SOUTH CAROLINA 29801
(Address of Principal Executive Offices)
(803) 641-0142
(Issuer's Telephone Number, Including Area Code)
NOT APPLICABLE
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last
Report)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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.
Yes X No
--- ---
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: 978,262 shares of common
stock, par value $.01 per share outstanding at May 5, 2000.
Transitional Small Business Disclosure Format (check one):
Yes No X
---- -----
PART I - FINANCIAL INFORMATION
- ------------------------------
Item 1. Financial Statements.
- ------------------------------
People's Community Capital Corporation
Consolidated Balance Sheets
March 31, December 31,
2000 1999
--------- ------------
(Unaudited) (Audited)
Assets
Cash and due from banks $ 2,289,868 $ 3,076,294
Federal funds sold 1,900,000 5,550,000
Securities, available for sale 10,599,545 10,711,010
Loans receivable, net 38,138,029 33,225,197
Properties and equipment, net 1,674,838 1,678,862
Accrued interest receivable 363,956 325,904
Deferred income taxes 186,138 136,949
Other assets 95,116 90,571
------------- -----------
Total assets $55,247,490 $54,794,787
--=========== ===========
Liabilities and Shareholders' Equity
Liabilities:
Non-interest bearing deposits $ 8,035,848 $ 6,672,434
Interest bearing deposits 36,644,198 36,496,307
------------ ------------
Total deposits 44,680,046 43,168,741
Accrued interest payable 66,238 62,383
Accrued expenses and other liabilities 73,495 100,480
Other borrowings 987,235 2,006,427
------------ ------------
Total liabilities 45,807,014 45,338,031
------------ ------------
Shareholders' equity:
Common stock, $.01 par value; 10,000,000 shares authorized,
998,262 shares issued at March 31, 2000 and
at December 31, 1999 9,983 9,983
Additional paid-in-capital 9,776,507 9,776,507
Retained earnings (deficit) 46,154 (58,320)
Accumulated other comprehensive income (185,918) (113,914)
------------ -----------
9,646,726 9,614,256
Treasury stock, 20,000 and 15,000 shares at cost (206,250) (157,500)
------------ -----------
Total shareholders' equity 9,440,476 9,456,756
------------ -----------
Total liabilities and shareholders' equity $55,247,490 $54,794,787
=========== ===========
See accompanying Notes to Consolidated Financial Statements.
2
People's Community Capital Corporation
Consolidated Statements of Operations
(Unaudited)
For the three months
ended March 31,
-----------------------
2000 1999
---- ----
Interest income:
Loans, including fees $ 823,647 $ 508,783
Federal funds sold 38,029 38,510
Securities and short-term investments 169,375 127,807
----------- ----------
Total interest income 1,031,051 675,100
----------- ----------
Interest expense:
Deposits 378,098 212,991
Other borrowings 6,457 2,935
----------- ----------
Total interest expense 384,555 215,926
----------- ----------
Net interest income 646,496 459,174
Provision for loan losses 57,000 32,000
----------- ----------
Net interest income after provision
for loan losses 589,496 427,174
----------- ----------
Non-interest income:
Service charges on deposit accounts 57,588 36,908
Other income 23,329 42,856
----------- -----------
Total non-interest income 80,917 79,764
----------- -----------
Non-interest expenses:
Salaries and employee benefits 271,314 237,391
Occupancy and equipment 60,935 50,584
Consulting and professional fees 38,635 28,641
Customer related expenses 16,913 14,168
General operating expenses 87,270 57,022
Other expenses 26,726 22,771
---------- ----------
Total non-interest expenses 501,793 410,577
Income before income taxes 168,620 96,361
Income tax provision 64,146 36,804
----------- -----------
Net income $ 104,474 $ 59,557
=========== ===========
Weighted average common shares outstanding:
Basic 980,899 998,162
Diluted 1,066,265 1,040,170
Earnings per share:
Basic $ .11 $ .06
Diluted $ .10 $ .06
See accompanying Notes to Consolidated Financial Statements.
3
People's Community Capital Corporation
Consolidated Statements of Comprehensive Income
(Unaudited)
For the three months
ended March 31,
---------------------
2000 1999
---- ----
Net income $ 104,474 $ 59,557
Other comprehensive loss, net of tax:
Net change in unrealized loss on securities
available for sale (72,004) (27,409)
----------- ----------
Total other comprehensive loss (72,004) (27,409)
----------- -----------
Comprehensive income $ 32,470 $ 32,148
=========== ===========
See accompanying Notes to Consolidated Financial Statements.
4
People's Community Capital Corporation
Consolidated Statements of Cash Flows
(Unaudited)
For the three months
ended March 31,
---------------------
2000 1999
----- -----
Operating activities:
Net income $ 104,474 $ 59,557
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 27,586 25,823
Provision for loan losses 57,000 32,000
Deferred income taxes (1,228) 16,568
Changes in deferred and accrued amounts:
Other assets and accrued interest receivable (45,462) 19,124
Accrued expenses and other liabilities (23,130) 18,269
------------ -------------
Net cash provided by operating activities 119,240 171,341
------------- -------------
Investing activities:
Purchase of securities available for sale (8,500) (2,000,000)
Maturities and calls of securities available for sale - 2,798,266
Purchases of property and equipment (20,697) (2,500)
Net increase in loans (4,969,832) (3,555,716)
Net decrease in federal funds sold 3,650,000 230,000
------------ ------------
Net cash used for investing activities (1,349,029) (2,529,950)
------------ ------------
Financing activities:
Purchase of treasury stock (48,750) -
Net increase in deposits 1,511,305 3,321,893
Net decrease in other borrowings (1,019,192) (93,565)
----------- ------------
Net cash provided by financing activities 443,363 3,228,328
----------- ------------
Net (decrease)/increase in cash and due from banks (786,426) 869,719
Cash and due from banks at beginning of period 3,076,294 958,613
----------- ------------
Cash and due from banks at end of period $ 2,289,868 $ 1,828,332
=========== ============
Supplemental disclosure:
Cash paid during the period for interest $ 380,700 $ 208,354
=========== ============
See accompanying Notes to Consolidated Financial Statements.
5
People's Community Capital Corporation
Notes to Consolidated Financial Statements
(Unaudited)
Note 1. Basis of Presentation
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Item 310(b)
of Regulation S-B of the Securities and Exchange Commission. Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. However, in
the opinion of management, all adjustments (consisting of normal recurring
adjustments) considered necessary for a fair presentation have been included.
Operating results for the three months ended March 31, 2000, are not necessarily
indicative of the results that may be expected for the year ended December 31,
2000. For further information, please refer to the consolidated financial
statements and footnotes thereto for the Company's fiscal year ended December
31, 1999, included in the Company's Form 10-KSB for the year ended December 31,
1999.
Note 2. Summary of organization
People's Community Capital Corporation (the "Company") was incorporated
on February 26, 1997, under the laws of the State of South Carolina for the
purpose of operating as a bank holding company pursuant to the Federal Bank
Holding Company Act of 1956, as amended.
The Company is a bank holding company whose subsidiary, People's
Community Bank of South Carolina (the "Bank"), is primarily engaged in the
business of accepting savings and demand deposits insured by the Federal Deposit
Insurance Corporation, and providing mortgage, consumer and commercial loans to
the general public. The Bank formed a subsidiary, People's Financial Services,
Inc. in December 1999 for the purpose of providing comprehensive financial
planning services in addition to full service brokerage, including stocks,
bonds, mutual funds, and insurance products.
6
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
This discussion and analysis is intended to assist the reader in
understanding our financial condition and results of operations. This commentary
should be read in conjunction with the financial statements and the related
notes and other statistical information in this report.
This report contains "forward-looking statements" relating to, without
limitation, future economic performance, plans and objectives of management for
future operations, and projections of revenues and other financial items that
are based on the beliefs of our management, as well as assumptions made by and
information currently available to our management. The words "expect,"
"anticipate," and "believe," as well as similar expressions, are intended to
identify forward-looking statements. Our actual results may differ materially
from the results discussed in the forward-looking statements, and our operating
performance each quarter is subject to various risks and uncertainties that are
discussed in detail in our filings with the Securities and Exchange Commission,
including the "Risk Factors" section in our registration statement on Form SB-2
(Registration Number 333-25179) as filed with and declared effective by the
Securities and Exchange Commission.
We were incorporated in South Carolina on February 26, 1997 for the
purpose of operating as a bank holding company. Our wholly-owned subsidiary,
People's Community Bank of South Carolina (the Bank), commenced business on
September 22, 1997 and is primarily engaged in the business of accepting savings
and demand deposits and providing mortgage, consumer and commercial loans to the
general public. The Bank operates two banking centers located in Aiken and one
located in North Augusta, South Carolina.
The second banking center located in Aiken was opened on September 8,
1998 in leased offices that also are the headquarters of the holding company. A
tract of land has been purchased in downtown Aiken for the construction of a
permanent banking center office. The cost of the land and preliminary
construction costs through March 31, 2000 were approximately $173,000.
Construction of the office is expected to begin this year.
In December 1999, the Bank formed a subsidiary, People's Financial
Services, Inc. for the purpose of providing comprehensive financial planning
services in addition to full service brokerage, including stocks, bonds, mutual
funds, and insurance products.
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
EARNINGS REVIEW
Our net income for the first quarter of 2000 was $104,474 compared to
$59,557 for the same period last year. The income per share increased to $.11
compared to $.06 for the same period in 1999. This improvement in earnings
reflects the continued growth in the level of earning assets since the Bank
commenced operations. The level of average earning assets was $48.9 million for
the three months ended March 31, 2000 as compared to $34.0 million for the three
months ended March 31, 1999. During the first quarter of 2000, we achieved
positive retained earnings, thus recovering previous losses associated with the
start-up of the business.
Net interest income represents the difference between interest received
or accrued on interest earning assets and interest paid or accrued on interest
bearing
7
liabilities. The following presents, in a tabular form, average balance sheets
that highlight the main components of interest earning assets and interest
bearing liabilities, on an annualized basis, for the three month periods ended
March 31, 2000 and 1999. Yields are derived by dividing income or expense by the
average balance of the corresponding assets or liabilities. Average balances
have been derived from daily averages.
Three months ended March 31, 2000 Three months ended March 31, 1999
--------------------------------------- ------------------------------------------
Average Interest Yield Average Interest Yield/
Balance Income/Expense /Rate Balance Income/Expense Rate
------- -------------- ----- ------- -------------- ------
ASSETS
Federal funds sold $ 2,663,686 $ 38,029 5.71% $ 3,332,268 $ 38,510 4.62%
Securities 10,707,665 169,375 6.33% 8,281,729 127,807 6.17%
Loans 35,553,983 823,647 9.27% 22,353,936 508,783 9.10%
------------- ----------- ---------- ---------
Total earning assets 48,925,334 1,031,051 8.43% 33,967,933 675,100 7.95%
------------- ----------- ---------- ---------
Cash and due from banks 1,783,900 1,352,642
Premises and equipment 1,666,168 1,708,413
Other assets 1,086,977 1,009,538
Allowance for loan losses (434,833) (305,667)
------------- ----------
Total assets 53,027,546 37,732,859
============= ==========
LIABILITIES & EQUITY
Interest-bearing deposits:
Transaction accounts 6,598,623 20,840 1.26% 4,472,579 14,370 1.29%
Money market accounts 9,306,120 92,365 3.97% 8,015,265 78,608 3.92%
Savings deposits 747,515 4,527 2.42% 430,758 2,454 2.28%
Time deposits 19,228,402 260,366 5.42% 9,337,773 117,559 5.04%
------------- ----------- ---------- ----------
Total interest bearing deposits 35,880,660 378,098 4.22% 22,256,375 212,991 3.83%
Interest-bearing borrowings 453,734 6,457 5.69% 272,640 2,935
------------- ----------- ---------- ---------- 4.31%
Total interest-bearing liabilities 36,334,394 384,555 4.23% 22,529,015 215,926
------------- ----------- ---------- ---------- 3.83%
Demand deposits 7,155,944 5,693,120
Other liabilities 42,633 96,452
Shareholders' equity 9,494,575 9,414,272
------------- -----------
Total liabilities &
shareholders equity $53,027,546 $37,732,859
============= ===========
Net interest spread 4.20% 4.12%
Net interest income/margin $ 646,496 5.29% $459,174 5.41%
========== ==========
Net interest income was $646,496 for the three months ended March 31,
2000 as compared to $459,174 for the three months ended March 31, 1999. The net
interest margin (net interest income divided by average earning assets) was
5.29% for the three months ended March 31, 2000 compared to the net interest
margin of 5.41% for the three months ended March 31, 1999. The decline in net
interest margin is largely due to the higher rates being paid on
interest-bearing deposits in light of five increases in the prime rate since
March 31, 1999.
Interest income for the first three months of 2000 was $1,031,051
compared to $675,100 for the same period in 1999. The volume of total earnings
assets increased by about $15 million between the two periods. The largest
component of interest income was interest and fees on loans amounting to
$823,647 for the three months ended March 31, 2000 compared to $508,783 for the
comparable prior year period. The overall rate on the loan portfolio increased
from 9.10% for the three months ended March 31, 1999 to 9.27% for the
three-month period ended March 31, 2000. Interest earned on federal funds sold
remained about the same amount for
8
the two periods under review even though the average federal funds sold balance
was lower for the three months ended March 31, 2000 than for the comparable
period in 1999 by about $668,000.
This increase, as well as the increases recognized in the available for sale
bond portfolio, increased the yield on average earning assets from 7.95% for the
first three months of 1999 to 8.43% for the same period in 2000.
Interest expense increased from $215,926 for the three months ended
March 31, 1999 to $384,555 for the three months ended March 31, 2000 as the size
of interest-bearing liabilities, primarily deposits, increased from $22,529,015
to $36,334,394, an increase of 61%. The average rate paid on interest bearing
liabilities increased from 3.83% to 4.23% reflecting the increases in general
market rates of interest paid on deposits and borrowings as mentioned above.
Non-interest Income
Non-interest income for the three-month period ended March 31, 2000 was
$80,917 compared to $79,764 for the same period in 1999. Of this total, $57,588
represented service charges on deposit accounts for the three months ended March
31, 2000 compared to $36,908 for the comparable period in 1999. The increase in
income from deposit service charges is due to the increase in deposit customers
during the comparable periods. The remaining $23,329 of non-interest income for
the first three months of 2000 was income generated from other fees charged. For
the same period in 1999, other income amounted to $42,856, the largest component
being brokered mortgage origination fee income of $27,808. Brokered mortgage
origination fee income only amounted to $2,275 for the first quarter of 2000,
reflecting the decrease in refinancing activities associated with rising
interest rates. The majority of other fee income for the first quarter of 2000
was $10,622 of fees from non-deposit investment products' activity associated
with the Bank's financial services subsidiary that commenced operations in
December 1999.
Non-interest Expense
Non-interest expense for the three-month periods ended March 31, 2000
and 1999 were $501,793 and $410,577, respectively, a 22% increase. The largest
component of non-interest expense was salaries and employee benefits of $271,314
and $237,391, respectively. Salaries and employee benefits expense increased 14%
due to general merit increases, the addition of staff associated with the
financial services subsidiary, and the matching of 401k plan contributions that
began January 1, 2000. Occupancy and equipment expense increased $10,351, or 20%
largely due to additional depreciation associated with new equipment purchases
and repairs on existing equipment. Consulting and professional fees increased
$9,994, or 35% due to an increase in the FDIC fee assessment as deposits have
increased, scheduled increases in auditing and other consulting service fees,
and the commencement of directors' fees in August 1999. The largest percentage
increase in non-interest expense was general operating expenses which increased
53%, or $30,248. This increase was due to higher levels of Bank activity
generating increased costs, primarily in data processing, but also in items such
as postage, supplies and Federal Reserve processing fees.
Provision for Loan Losses
The provision for loan losses was $57,000 and $32,000, respectively,
for the first three months of 2000 and 1999, bringing the total reserve balance
to $467,000 and $317,000 at March 31, 2000 and 1999, respectively. This amount
represents 1.21% of gross loans at March 31, 2000, compared to 1.29% at March
31, 1999. It also reflects management's estimates of the amounts necessary to
maintain the allowance for loan losses at a level believed to be adequate in
relation to the current size, mix and quality of the loan portfolio. See the
description of the allowance for loan losses below. However, management's
judgment as to the adequacy of
9
the allowance is based upon a number of assumptions about future events that it
believes to be reasonable, but which may or may not be accurate. Because of the
inherent uncertainty of assumptions made during the evaluation process, there
can be no assurance that charge-offs in future periods will not exceed the
allowance for loan losses or that additional increases in the loan loss
allowance will not be required. We had $41,847 in potential problem loans that
were classified as non-accrual loans at March 31, 2000. There were no
non-performing loans at March 31, 1999. There were no charge-offs for the
periods ended March 31, 2000 or March 31, 1999.
BALANCE SHEET REVIEW
Total consolidated assets grew by $452,703 from $54,794,787 at December
31, 1999 to $55,247,490 at March 31, 2000. The increase was generated through a
$1,511,305 increase in deposits with a $1,019,192 decrease in borrowed funds.
Federal funds sold decreased by $3,650,000, and the funds generated from the
decrease in Federal funds sold and the increase in deposits were used to
increase net loans by $4,912,832. The available-for-sale investment portfolio
decreased by $111,465 since December 31, 1999 primarily due to market value
adjustments. There were no purchases or maturities in the period other than an
additional stock purchase in the Federal Home Loan Bank of $8,500. Cash and due
from banks decreased by $786,426.
Loans
Outstanding loans represent the largest component of earning assets as
of March 31, 2000 at $38,138,029, or 75.3% of total earning assets. Net loans
increased $4,912,832, or 14.8%, since December 31, 1999.
The interest rates charged on loans vary with the degree of risk,
maturity and amount of the loan. Competitive pressures, money market rates,
availability of funds, and government regulations also influence interest rates.
The average yield on our loans for the period ended March 31, 2000 was 9.27% as
compared to a yield of 9.19% for the year ended December 31, 1999.
Allowance for Loan Losses
The allowance for loan losses at March 31, 2000 was $467,000, or 1.21%
of loans outstanding, compared to an allowance of $410,000, or 1.22%, at
December 31, 1999. The allowance for loan losses is based upon management's
continuing evaluation of the collectibility of loans based somewhat on
historical loan loss experience, but mostly, because of the lack of historical
data available in a new company, based on current economic conditions affecting
the ability of borrowers to repay, the volume of loans, the quality of
collateral securing non-performing and problem loans, and other factors
deserving recognition. As of March 31, 2000, there were $41,847 in
non-performing loans with no charge-offs for the period.
Securities
Investment securities represented 20.9% of earning assets at March 31,
2000 with a total of $10,599,545, down $111,465 from the December 31, 1999
balance of $10,711,010. The yield on investment securities was 6.33% for the
three months ended March 31, 2000 compared to 6.18% for the year ended December
31, 1999. Included in available-for-sale securities is $109,900 of stock
purchased in the Federal Home Loan Bank of Atlanta, of which $8,500 was
purchased in the first quarter of 2000. This purchase was a requirement from the
FHLB in order to secure borrowings from them in the future.
10
Deposits
Our primary source of funds for loans and investments is deposits.
Deposits grew $1,511,305, or 3.5%, since year-end 1999 for a total of
$44,680,046 at March 31, 2000. The average rates paid on interest-bearing
deposits were 4.22% and 3.93% at March 31, 2000 and December 31, 1999,
respectively. In pricing deposits, we consider our liquidity needs, the
direction and levels of interest rates, and local market conditions. The Bank
had paid higher rates initially to attract deposits but had subsequently
decreased the rates based on the factors above. The Bank has now seen rates
begin to move back up again due to changes in those same factors.
Liquidity and Sources of Capital
At March 31, 2000, our liquid assets, consisting of cash and due from
banks and Federal funds sold, amounted to $4,189,868, representing 7.6% of total
assets. Investment securities amounted to $10,599,545, representing 19.2% of
total assets; these securities provide a secondary source of liquidity since
they can be converted into cash in a timely manner. Our ability to maintain and
expand our deposit base and borrowing capabilities also serves as a source of
liquidity. For the three-month period ended March 31, 2000, total deposits
increased by $1.5 million representing an increase of 3.5%, or 14% on an
annualized basis. Our deposit growth rate is not as high as it was in the
initial periods of our development. Our management closely monitors and seeks to
maintain appropriate levels of interest-earning assets and interest-bearing
liabilities so that maturities of assets are such that adequate funds are
provided to meet customer withdrawals and loan demand.
We plan to meet future cash needs through the liquidation of temporary
investments, maturities of loans and investment securities, and generation of
deposits. In addition, the Bank maintains two lines of credit from correspondent
banks in the amount of $1,800,000 each, and is a member of the Federal Home Loan
Bank, from which applications may be made for borrowing capabilities, if needed.
The Bank currently maintains a level of capitalization in excess of the
minimum capital requirements set by the regulatory agencies. Despite anticipated
asset growth, management expects its capital ratios to continue to be adequate
for the next two to three years. However, no assurances can be given in this
regard, as rapid growth, deterioration in loan quality, and operating losses, or
a combination of these factors, could change our capital position in a
relatively short period of time. We plan to begin construction in 2000 on an
office building in downtown Aiken with estimated capital expenditures of
$1,200,000. The capital project is expected to be funded with internal sources.
The cost of the land and preliminary construction costs through March 31, 2000
was approximately $173,000. Below is a table that reflects the leverage and
risk-based regulatory capital ratios of the Bank at March 31, 2000:
Well-Capitalized Minimum
Ratio Requirement Requirement
----- ---------------- -----------
Tier 1 capital 14.48% 6.00% 4.0%
Total capital 15.64% 10.00% 8.0%
Tier 1 leverage ratio 11.71% 5.00% 4.0%
11
YEAR 2000 ISSUES
Like many financial institutions, we rely upon computers for conducting
our business and for information systems processing. Industry experts were
concerned that on January 1, 2000, some computers would not be able to interpret
the new year properly, causing computer malfunctions. While we have not
experienced any material computer malfunctions to date, there remains a risk
that our computers will be unable to read or interpret data on Year
2000-sensitive dates, including October 10, 2000. Our regulators have issued
guidelines to require compliance with Year 2000 issues. In accordance with these
guidelines, we have developed and executed a plan to ensure that our computer
and telecommunication systems do not have these Year 2000 problems. We generally
rely on software and hardware developed by independent third parties for our
information systems. We believe that our internal systems and software,
including our network connections, are programmed to comply with Year 2000
requirements, although there is a risk they may not be. We incurred
approximately $2,000 in expenses in 1999 to implement our Year 2000 plan. Under
our plan, we are continuing to monitor the situation throughout 2000. Based on
information currently available, we believe that we will not incur significant
additional expenses in connection with the Year 2000 issue.
The Year 2000 issue may also negatively affect the business of our
customers, but to date we are not aware of any material Year 2000 issues
affecting them. We include Year 2000 readiness in our lending criteria to
minimize risk. However, this will not eliminate the issue, and any financial
difficulties that our customers experience caused by Year 2000 issues could
impair their ability to repay loans to us.
RECENTLY ISSUED ACCOUNTING STANDARDS
In June 1998, the Financial Accounting Standards Board, FASB, issued
SFAS 133, "Accounting for Derivative Instrument and Hedging Activities." All
derivatives are to be measured at fair value and recognized in the balance sheet
as assets or liabilities. The statement is now effective for fiscal years and
quarters beginning after June 15, 2000 (delayed through the issuance of SFAS
137, "Accounting for Derivative Instruments and Hedging Activities - Deferral of
the Effective Date of FASB Statement No. 133 - An Amendment of FASB Statement
No. 133"). Because we do not use derivative transactions at this time,
management does not expect that this standard will have a significant effect on
us.
In October 1998, the FASB issued SFAS 134, "Accounting for
Mortgage-Backed Securities Retained after the Securitization of Mortgage Loans
Held for Sale by a Mortgage Banking Enterprise." The new statement establishes
accounting and reporting standards for certain activities of mortgage banking
enterprises. The statement is effective for the first quarter beginning after
December 15, 1998. The statement did not have an impact on our financial
statements.
PART II - OTHER INFORMATION
- ---------------------------
Item 1. Legal Proceedings
- -------------------------
Not Applicable
Item 2. Changes in Securities
- -----------------------------
Not Applicable
12
Item 3. Defaults Upon Senior Securities
- ---------------------------------------
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders
- -----------------------------------------------------------
Not Applicable
Item 5. Other Information
- -------------------------
None.
Item 6. Exhibits and Report on Form 8-K
- ---------------------------------------
(a) Exhibits - 27.1 Financial Data Schedule for period ending March 31,
2000.
(b) Reports on Form 8-K - No reports on Form 8-K were filed during the
quarter ended March 31, 2000.
13
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
People's Community Capital Corporation
(Registrant)
Date: May 8, 2000 By: /s/ Tommy B. Wessinger
-------------------------------------
Tommy B. Wessinger
Chief Executive Officer
By: /s/ Jean H. Covington
-------------------------------------
Jean H. Covington
Principal Accounting and Chief
Financial Officer
14