1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
(X) Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 1993
or
( ) 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 0-15580
St. Paul Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Delaware 36-3504665
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
6700 W. North Avenue
Chicago, Illinois 60635
(Address of principal executive offices) (Zip Code)
(312) 622-5000
(Registrant's telephone number, including area code)
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 twelve months (or 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
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $.01 par value -- 13,123,025 shares, as of October 29, 1993
1
2
ST. PAUL BANCORP, INC.
AND SUBSIDIARIES
This amendment to St. Paul Bancorp Inc.'s Quarterly report on Form 10-Q for the
quarter ended September 30, 1993 is being made to amend the Consolidated
Statements of Cash Flow with respect to the net increase (decrease) in checking
and savings deposits, proceeds from sales of certificates of deposit and
payments for maturing certificates of deposit.
FORM 10-Q/A
INDEX
PART I. FINANCIAL INFORMATION
Item 1 Financial Statements (Unaudited)
Consolidated Statements of Financial Condition
as of September 30, 1993 and December 31, 1992 . . . . . . . . . . . . 3
Consolidated Statements of Income for the Three and Nine
Months ended September 30, 1993 and 1992 . . . . . . . . . . . . . . . 4
Consolidated Statements of Stockholders' Equity for the
Nine Months ended September 30, 1993 and 1992 . . . . . . . . . . . . . 5
Consolidated Statements of Cash Flows for the
Nine Months Ended September 30, 1993 and 1992 . . . . . . . . . . . . . 6
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . 7
2
3
ST PAUL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
September 30 December 31
Dollars in thousands 1993 1992
- ---------------------------------------------------------------------------------------------------
ASSETS:
Cash and cash equivalents
Cash and amounts due from depository institutions $ 82,403 $ 72,940
Federal funds sold 75,000 49,000
Short-term marketable debt securities held for investment, at cost
(Market: September 30, 1993-$186,417; December 31, 1992-$189,618) 186,433 189,627
---------- ----------
Total cash and cash equivalents 343,836 311,567
Marketable debt securities held for investment, at cost
(Market: September 30, 1993-$143,568; December 31, 1992-$107,367) 141,987 107,732
Mortgage-backed securities held for investment, at cost
(Market: September 30, 1993-$667,209; December 31, 1992-$654,411) 655,421 643,941
Loans receivable 2,435,423 2,318,879
Less: accumulated provision for loan losses 49,474 48,681
----------- -----------
Net loans receivable 2,385,949 2,270,198
Inventory of assets held for sale, at lower of cost or market
(Market: September 30, 1993-$29,389; December 31, 1992-$19,090) 28,962 19,019
Accrued interest receivable 21,637 22,059
Foreclosed real estate
(Net of accumulated provision for losses: September 30, 1993-$991;
December 31, 1992-$2,403) 23,530 17,945
Real estate held for investment 12,892 10,497
Investment in Federal Home Loan Bank Stock 31,290 30,720
Office properties and equipment 39,999 33,526
Prepaid expenses and other assets 39,068 33,056
---------- ----------
TOTAL ASSETS $ 3,724,571 $ 3,500,260
---------- ---------
---------- ---------
LIABILITIES:
Deposits $ 3,252,019 $ 2,985,124
FHL Bank advances 52,219 99,501
Other borrowings 56,796 86,907
Advance payments by borrowers for taxes and insurance 8,482 19,467
Other liabilities 20,583 21,920
---------- ----------
TOTAL LIABILITIES 3,390,099 3,212,919
COMMITMENTS - Note 3
STOCKHOLDERS' EQUITY:
Preferred stock (par value $.01 per share: authorized-10,000,000
shares; none issued) -- --
Common stock (par value $.01 per share: authorized-40,000,000 shares;
outstanding at September 30, 1993-13,112,275 shares,
outstanding at December 31, 1992-12,172,105 shares) 131 121
Paid-in capital 136,482 115,315
Retained income, substantially restricted 202,010 173,976
Less borrowings by employee stock ownership plan (4,151) (2,071)
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 334,472 287,341
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,724,571 $ 3,500,260
---------- ---------
---------- ---------
See notes to consolidated financial statements.
3
4
ST PAUL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three months ended Nine months ended
September 30 September 30
Dollars in thousands except per share amounts 1993 1992 1993 1992
- ------------------------------------------------------------------------------------------------------------
INTEREST INCOME:
Loans receivable $ 49,456 $ 51,316 $ 151,755 $ 162,350
Mortgage-backed securities 10,371 12,220 32,526 39,101
Marketable debt securities 1,436 960 4,760 1,651
Trading account 24 16 73 60
Federal funds 401 275 974 812
Other short-term investments 2,297 2,441 6,261 8,999
------------ ------------ ------------ -------------
Total interest income 63,985 67,228 196,349 212,973
INTEREST EXPENSE:
Deposits 30,679 34,612 92,948 113,482
Short-term borrowings 803 3,216 4,420 8,122
Long-term borrowings 1,585 1,710 4,505 8,234
------------ ------------ ------------ ------------
Total interest expense 33,067 39,538 101,873 129,838
------------ ------------ ------------ ------------
Net interest income 30,918 27,690 94,476 83,135
Provision for loan losses 2,500 3,750 9,250 7,625
------------ ------------ ------------ ------------
Net interest income after provision
for loan losses 28,418 23,940 85,226 75,510
OTHER INCOME:
Loan servicing fees 402 919 1,309 2,655
Other fee income 3,978 2,783 10,605 7,351
Net gain on assets sold 464 546 1,374 2,183
Net trading account gain 13 46 58 17
Discount brokerage commissions 1,549 1,267 4,507 3,658
Income from real estate operations 907 569 2,113 1,630
Insurance and annuity commissions 847 951 2,578 2,899
Other 539 112 717 343
------------ ------------ ------------ ------------
Total other income 8,699 7,193 23,261 20,736
GENERAL AND ADMINISTRATIVE EXPENSE:
Salaries and employee benefits 10,831 9,085 31,792 26,937
Occupancy, equipment and other office expense 4,758 3,899 13,728 11,424
Advertising 1,427 1,216 4,019 3,360
Federal deposit insurance 2,512 1,839 7,001 5,479
Other 1,385 1,672 4,243 4,936
------------ ------------ ------------ ------------
General and administrative expense 20,913 17,711 60,783 52,136
(Income) Loss on foreclosed real estate 318 (508) 989 1,033
------------ ------------ ------------ ------------
Income before income taxes 15,886 13,930 46,715 43,077
Income taxes 4,781 4,894 14,845 15,047
------------ ------------ ------------ ------------
NET INCOME $ 11,105 $ 9,036 $ 31,870 $ 28,030
------------ ------------ ------------ -----------
------------ ------------ ------------ -----------
EARNINGS PER SHARE:
Primary $ 0.81 $ 0.72 $ 2.36 $ 2.24
Fully Diluted 0.80 0.72 2.34 2.23
----------- ----------- ----------- ----------
----------- ----------- ----------- ----------
DIVIDENDS PER SHARE $ 0.10 $ 0.10 $ 0.30 $ 0.30
----------- ----------- ----------- ----------
----------- ----------- ----------- ----------
See notes to consolidated financial statements.
4
5
ST. PAUL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)
BORROWINGS
BY EMPLOYEE TOTAL
Dollars in thousands, COMMON STOCK PAID-IN RETAINED STOCK STOCKHOLDERS'
except share data SHARES AMOUNT CAPITAL INCOME OWNERSHIP PLAN EQUITY
- -------------------------------------------------------------------------------------------------------------
Balance December 31, 1991 12,038,555 $ 120 $ 113,428 $ 141,126 $ (1,786) $ 252,888
Issuance of common stock under
stock option plan 80,425 1 822 -- -- 823
Net income -- -- -- 28,030 -- 28,030
Cash dividends paid to
stockholders ($.30 per share) -- -- -- (3,620) -- (3,620)
Repayments of principal -- -- -- -- 536 536
Additional borrowings -- -- -- -- (1,000) (1,000)
- -------------------------------------------------------------------------------------------------------------
BALANCE SEPTEMBER 30, 1992 12,118,980 $ 121 $ 114,250 $ 165,536 $ (2,250) $ 277,657
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Balance December 31, 1992 12,172,105 $ 121 $ 115,315 $ 173,976 $ (2,071) $ 287,341
Issuance of common stock under
stock option plan 78,925 1 1,417 -- -- 1,418
Issuance of common stock to
Elm shareholders 861,542 9 19,757 -- -- 19,766
Retirement of common stock issued
to Elm shareholders (297) -- (7) -- -- (7)
Net income -- -- -- 31,870 -- 31,870
Cash dividends paid to
stockholders ($.30 per share) -- -- -- (3,836) -- (3,836)
Repayments of principal -- -- -- -- 536 536
Additional borrowings -- -- -- -- (2,616) (2,616)
- -------------------------------------------------------------------------------------------------------------
BALANCE SEPTEMBER 30, 1993 13,112,275 $ 131 $ 136,482 $ 202,010 $ (4,151) $ 334,472
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements.
5
6
ST. PAUL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended
September 30
-----------------------------
Dollars in thousands 1993 1992
- -------------------------------------------------------------------------------------------
OPERATING ACTIVITIES:
Net income $ 31,870 $ 28,030
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for loan losses 9,250 7,625
Provision for losses on foreclosed real estate 804 1,827
Provision for depreciation 3,515 3,081
Assets originated and acquired for sale (88,790) (133,268)
Sale of assets held for sale 76,087 124,176
Decrease in accrued interest receivable 1,839 2,128
Increase in prepaid expenses and other assets (5,535) (4,407)
Decrease in other liabilities (5,466) (23,122)
Net amortization of yield adjustments (1,055) (2,215)
Other items, net 2,271 (2,306)
- -------------------------------------------------------------------------------------------
Net cash provided by operating activities 24,790 1,549
- -------------------------------------------------------------------------------------------
INVESTING ACTIVITIES:
Principal repayments on loans receivable 422,596 388,864
Loans originated and purchased for investment (347,883) (297,344)
Loans receivable sold 18,658 34,925
Principal repayments on mortgage-backed securities 180,805 225,645
Mortgage-backed securities purchased for investment (136,110) (124,953)
Maturities of marketable debt securities 127,523 250
Purchase of marketable debt securities (105,894) (83,596)
Additions to real estate held for investment (3,447) (4,693)
Real estate sold 13,199 11,820
(Increase) decrease in investment in Federal Home
Loan Bank stock 1,897 (171)
Purchase of office properties and equipment (4,417) (2,649)
Proceeds from sales of office properties and equipment 637 126
Acquisition of Elm Financial, net of cash and
cash equivalents acquired of $11,002. (15,655) --
- -------------------------------------------------------------------------------------------
Net cash provided by investing activities 151,909 148,224
- -------------------------------------------------------------------------------------------
FINANCING ACTIVITIES:
Net increase (decrease) in checking and savings deposits (25,723) 26,867
Proceeds from sales of certificates of deposit 212,258 223,868
Payments for maturing certificates of deposit (231,861) (284,697)
Net proceeds from issuance of subordinated notes 33,422 --
Repayment of FHL Bank advances (47,279) (61)
Decrease in other borrowings, net (67,453) (83,121)
Repayment of subordinated capital notes - (12,434)
Interest credited on subordinated capital notes - 146
Redemption bonus on subordinated capital notes - 144
Dividends paid to stockholders (3,836) (3,620)
Net proceeds from exercise of stock options 907 823
Decrease in advance payments by borrowers
for taxes and insurance (14,865) (13,032)
- -------------------------------------------------------------------------------------------
Net cash used by financing activities (144,430) (145,117)
- -------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 32,269 4,656
Cash and cash equivalents at beginning of period 311,567 314,623
- -------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 343,836 $ 319,279
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURES:
Interest credited on deposits $ 82,941 $ 104,203
Interest paid on deposits 8,661 11,272
----------------------------------------------------------------------------------------
Total interest paid on deposits 91,602 115,475
Interest paid on borrowings 9,745 17,156
Income taxes paid, net 13,514 17,679
Common stock issued in acquisition of Elm Financial 19,766 --
Real estate acquired through foreclosure 24,821 36,528
Loans originated in connection with real estate
acquired through foreclosure 13,199 26,761
See notes to consolidated financial statements.
6
7
ST. PAUL BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The accompanying 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 Article 10
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 necessary
adjustments, consisting only of normal recurring accruals, necessary for a
fair presentation have been included. The results of operations for the
three- and nine-month period ended September 30, 1993 are not necessarily
indicative of the results that may be expected for the entire fiscal year.
2. The accompanying consolidated financial statements include the accounts of
St. Paul Bancorp, Inc. (the "Company" or "St. Paul Bancorp") and its
wholly-owned subsidiaries, St. Paul Federal Bank For Savings (the "Bank" or
"St. Paul Federal"), Annuity Network, Inc. and St. Paul Financial
Development, Inc. The financial statements of St. Paul Federal include the
accounts of its subsidiaries. Certain prior year amounts have been
reclassified to conform to the 1993 presentation.
3. At September 30, 1993 the Bank had outstanding commitments to originate 1-4
family, real estate loans of $49.4 million. Of these commitments, $23.8
million were for adjustable-rate loans and $25.6 million were for fixed-rate
loans. Most of these commitments expire after sixty days. Unused home
equity lines of credit totaled $30.8 million as of September 30, 1993.
Also, the Bank had a commitment to purchase a $24.7 million mortgage-backed
security at September 30, 1993. The Bank anticipates funding the
origination and purchase commitments with excess liquidity.
At September 30, 1993 the Bank held commitments to sell $51.7 million of
fixed-rate, 1-4 family real estate loans. Market value losses, if any,
related to these commitments have been reflected in the consolidated
financial statements.
4. On February 23, 1993, the Company acquired ("the Acquisition") Elm Financial
Services, Inc. ("Elm Financial"). The unaudited Pro Forma Combined
Statements of Income presented below report the combined results of
operations of the Company and Elm Financial for the nine-month periods ended
September 30, 1993 and 1992 as if the Acquisition had been effective on
January 1, 1993 and January 1, 1992, respectively, after giving effect to
the purchase accounting adjustments.
The unaudited Pro Forma Condensed Combined Statements of Income reflect the
application of the purchase method of accounting. Under this method of
accounting, the aggregate cost to the Company of the Acquisition was
allocated to the assets acquired and liabilities
7
8
ST. PAUL BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
assumed, based on their estimated fair values as of February 23, 1993.
No goodwill was recorded by the Bank in connection with the Acquisition.
The unaudited Pro Forma Condensed Combined Statements of Income are intended
for informational purposes and are not necessarily indicative of the future
results of operations of the combined company, or results of operations of
the combined company that would have actually occurred had the Acquisition
been consummated as of the periods presented.
PRO FORMA CONDENSED COMBINED STATEMENTS OF INCOME
Proforma Results
For the Nine Months Ended
-------------------------
September 30, September 30,
1993 1992
---------- ----------
Interest income $200,307 $235,501
Interest expense 103,718 142,629
---------- ----------
Net interest income 96,589 92,872
Provision for loan
losses 9,676 7,775
---------- ----------
Net interest income
after provision for
loan losses 86,913 85,097
Other income 23,010 21,406
Other expense 61,978 57,973
Loss on foreclosed
real estate 990 1,033
---------- ----------
Pre-tax income 46,955 47,497
Income taxes 14,933 16,620
---------- ----------
Net income $ 32,022 $ 30,877
---------- ----------
---------- ----------
Earnings per share:
Primary $2.34 $2.31
Fully Diluted 2.32 2.29
5. The following schedule details the net effect during the first half of 1993
of the Acquisition on cash and cash equivalents:
-------------------------------------------------
-------------------------------------------------
Purchase price $48,194
Less: issuance of St. Paul stock 19,766
Less: Elm stock acquired in 1992 1,771
-------------------------------------------------
Cash paid for Acquisition 26,657
Cash and cash equivalents acquired 11,002
-------------------------------------------------
Acquisition of Elm Financial, net of
cash and cash equivalents acquired $15,655
-------------------------------------------------
-------------------------------------------------
8