EXHIBIT 99.4
JOHNSTOWN SAVINGS BANK
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except for per share data)
March 31,
1994
----------
(Unaudited)
ASSETS:
Cash and due from banks $ 3,217
Interest-bearing deposits in other banks 3,969
--------
7,186
Investment securities:
Held to Maturity.............................................. 1,095
Available for Sale............................................ 46,104
Mortgage-backed securities:
Held to Maturity.............................................. 26,298
Available for Sale............................................ 111,154
Held in trading account....................................... 3,758
Loans receivable - net (includes loans available for sale
of $15,864)................................................... 138,890
Real estate acquired by foreclosure - net...................... 1,238
Federal Home Loan Bank stock, at cost.......................... 5,272
Accrued interest receivable.................................... 2,369
Office properties and equipment - net.......................... 2,612
Mortgage servicing purchased - net of accumulated
amortization of $9,855........................................ 7,681
Prepaid expenses and other assets.............................. 5,617
--------
TOTAL ASSETS................................................... $359,274
LIABILITIES:
Deposits:
Savings accounts.............................................. $ 56,155
Savings certificates.......................................... 104,868
NOW deposits and money market demand accounts................. 53,966
--------
214,989
Advances by borrowers for taxes and insurance.................. 1,294
Other borrowed funds........................................... 10,372
Accrued expenses and other liabilities......................... 1,876
Federal Home Loan Bank advances................................ 105,430
--------
TOTAL LIABILITIES.............................................. 333,961
STOCKHOLDERS' EQUITY:
Preferred stock 5,000,000 shares authorized; none issued....... -0-
Common stock, $1 par value; 15,000,000 authorized;
1,944,790 shares issued and outstanding....................... 1,945
Additional paid-in capital..................................... 15,074
Unrealized (losses) gains on investment and mortgage-backed
securities available for sale - net of applicable
income taxes.................................................. (2,692)
Retained earnings (substantially restricted)................... 10,986
--------
TOTAL STOCKHOLDERS' EQUITY..................................... 25,313
--------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY..................... $359,274
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JOHNSTOWN SAVINGS BANK
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share data)
Three Months Ended
March 31,
-------------------
1994 1993
--------- --------
(Unaudited)
INTEREST INCOME:
Mortgage loans....................................................... $2,403 $2,625
Other loans.......................................................... 714 926
Mortgage-backed securities........................................... 2,124 1,911
Interest and dividends on investment securities...................... 343 198
Other interest income................................................ 25 39
------ ------
TOTAL INTEREST INCOME............................................. 5,609 5,699
------ ------
INTEREST EXPENSE:
Deposits............................................................. 1,824 2,114
Federal Home Loan Bank advances...................................... 1,125 664
Borrowed funds....................................................... 98 169
------ ------
TOTAL INTEREST EXPENSE............................................ 3,047 2,947
------ ------
NET INTEREST INCOME............................................... 2,562 2,752
PROVISION FOR LOAN LOSSES............................................. 0 760
------ ------
NET INTEREST INCOME AFTER 2,562 1,992
PROVISION FOR LOAN LOSSES......................................... ------ ------
OTHER OPERATING INCOME:
Mortgage servicing income and other loan service fees (net of
amortization of cost of purchased mortgage servicing rights)........ 756 686
Gains and other income - real estate acquired by foreclosure......... 90 0
Net gains on sale of loans........................................... 524 123
Unrealized (losses) on investments................................... (486) 0
Net gains on sale of investments..................................... 39 539
Other................................................................ 177 230
------ ------
TOTAL OTHER OPERATING INCOME...................................... 1,100 1,578
------ ------
OTHER OPERATING EXPENSES:
Salaries and employee benefits....................................... 1,410 1,320
Occupancy and equipment.............................................. 293 279
Provisions for losses and other related charges - real estate
acquired by foreclosure............................................. 33 0
FDIC deposit insurance premiums...................................... 124 143
Merger costs......................................................... 146 0
Other................................................................ 706 837
------ ------
TOTAL OTHER OPERATING EXPENSES.................................... 2,712 2,579
------ ------
INCOME BEFORE PROVISION FOR INCOME TAXES.............................. 950 991
PROVISION FOR INCOME TAXES............................................ 315 272
------ ------
NET INCOME............................................................ $ 635 $ 719
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EARNINGS PER SHARE.................................................... $ 0.33 $ 0.37
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JOHNSTOWN SAVINGS BANK
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, except for per share data)
Three Months Ended
March 31,
---------------------
1994 1993
---------- ---------
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ................................................................ $ 635 $ 719
--------- --------
Adjustments to reconcile net income to
net cash provided by operating activities
Depreciation and amortization ............................................ 438 531
Amortization of investment premiums and discounts ........................ 414 245
Provision for loan losses ................................................ 0 760
Direct write down of investment securities ............................... 4,787 0
Net losses (gains) on investment and mortgage-backed securities .......... 447 (569)
Net gains on sale of loans available for sale ............................ (524) (123)
Changes in interest payable .............................................. 272 267
Changes in interest receivable ........................................... (222) (27)
Changes in prepaid and other assets ...................................... (2,032) 538
Changes in accrued liabilities ........................................... (826) 373
Net change in loans available for sale ................................... 17,419 (4,889)
Net change in investments held in trading accounts ....................... (691) 0
--------- --------
TOTAL ADJUSTMENTS ...................................................... 19,482 (2,894)
--------- --------
NET CASH (USED) BY OPERATING ACTIVITIES .................................... 20,117 (2,175)
--------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of investment and mortgage-backed securities
held to maturity ........................................................ 0 1,764
Principal payments on investment and mortgage-backed securities
held to maturity ......................................................... 1,794 9,225
Purchase of investment and mortgage-backed securities held to maturity .... (817) (28,525)
Proceeds from sales of investment and mortgage-backed securities
available for sale ....................................................... 16,343 11,000
Principal payments on investment and mortgage-backed securities
available for sale ....................................................... 8,864 770
Purchase of investment and mortgage-backed securities available for sale .. (49,925) (5,914)
Net principal (disbursed) collected on loans .............................. (341) 4,119
Purchase of properties and equipment ...................................... (42) (59)
Proceeds from sale of fixed assets and real estate acquired through
foreclosure .............................................................. 256 1,322
Net change in FHLB stock .................................................. (216) (225)
Net acquisition of mortgage servicing rights .............................. (691) (139)
--------- --------
NET CASH (USED) PROVIDED BY INVESTING ACTIVITIES ........................... (24,775) (6,662)
--------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits .................................................... (1,217) (3,106)
Net change in borrowers' advances ......................................... 90 268
Proceeds from FHLB advances ............................................... 132,697 46,500
Repayment of FHLB advances ................................................ (116,267) (39,000)
Net change in other borrowed funds ........................................ (9,006) 2,098
Proceeds from issuance of Common Stock .................................... 10 0
Dividends paid on Common Stock ............................................ (98) 0
Unrealized depreciation on investments available for sale, net of
applicable income taxes .................................................. (2,814) 0
--------- --------
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES ........................... 3,395 6,760
--------- --------
NET CHANGE IN CASH AND CASH EQUIVALENTS .................................... (1,263) (2,077)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR .............................. 8,449 11,561
--------- --------
CASH AND CASH EQUIVALENTS - END OF PERIOD .................................. $ 7,186 $ 9,484
========= ========
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES:
Loans transferred to real estate owned and in-substance foreclosures ....... $ 21 $ 811
Loans charged-off .......................................................... 95 344
Interest paid .............................................................. 2,773 2,681
Income taxes paid .......................................................... 13 25
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JOHNSTOWN SAVINGS BANK, AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Notes (1) - Basis of Presentation
- ---------------------------------
The accompanying consolidated financial statements have been prepared in
accordance with the instructions for Form F-4 and do not include all of the
information and footnotes required by generally accepted accounting principles
for completed financial statements. However, in the opinion of management, the
consolidated financial statements reflect all adjustments (which consist of
normal recurring accruals) that are necessary for a fair presentation of the
results for the unaudited periods. The results of operations for the three
month period ended March 31, 1994 are not necessarily indicative of the results
that may be expected for the year ending December 31, 1994.
The Bank declared a 1994 first quarter dividend of $0.05 per share, payable on
May 20, 1994 to stockholders of record as of May 2, 1994.
The consolidated financial statements presented herein should be read in
conjunction with the audited consolidated financial statements and the notes
thereto for the year ended December 31, 1993 included in Form S-4 for the year
ended December 31, 1993.
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JOHNSTOWN SAVINGS BANK, AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Note (2) - Loans
- ----------------
The following table sets forth information concerning the Bank's portfolio by
type of loan at the dates indicated (dollars in thousands).
March 31, 1994 December 31, 1993
--------------- -----------------
Amount % Amount %
Mortgage loans:
Single-family (one to four-
units) residential ..................... $ 46,351 32.6% $ 47,387 29.8%
Commercial and multi-family
(over four units) residential .......... 46,164 32.4 42,794 26.9
Construction ............................. 2,988 2.1 3,099 1.9
Residential mortgage loans ----- -----
held for sale (at cost
which approximates market) ............. 15,864 11.1 32,759 20.6
-------- ----- -------- -----
Total mortgage loans .................... 111,367 78.2 126,039 79.2
-------- ----- -------- -----
Other loans:
Commercial business loans ................ 5,164 3.6 5,494 3.5
Consumer loans ........................... 25,959 18.2 27,473 17.3
Indirect financing leases ................ 4 0.0 6 0.0
-------- ----- -------- -----
Total non-mortgage loans ................ 31,127 21.8 32,973 20.8
-------- ----- -------- -----
Total loans ............................. 142,494 100.0% 159,012 100.0%
-------- ----- -------- -----
Less:
Allowance for loan losses ................ 3,101 3,083
Loans in process and other
deductions ............................. 503 485
-------- --------
Net loans receivable ....................... $138,890 $155,444
======== ========
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JOHNSTOWN SAVINGS BANK, AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Note (2) - Loans (continued)
- ----------------------------
Changes in the reserve for potential losses on loans were as follows (in
thousands):
Three Months Ended
March 31,
1994 1993
-------- --------
Balance, beginning of period..................... $3,083 $4,056
Provision charged to operations.................. 0 760
Loans charged off................................ (95) (344)
Recoveries....................................... 113 41
------ -----
Balance, end of period........................... $3,101 $4,513
====== ======
Note (3) - Real Estate Acquired by Foreclosure
- ----------------------------------------------
Changes in the reserve for potential losses on real estate acquired by
foreclosure were as follows (in thousands):
Three Months Ended
March 31,
1994 1993
-------- --------
Balance, beginning of period..................... $ 240 $ 2,059
Provision charged to operations.................. 0 0
Losses recognized................................ 0 (1,050)
Recoveries....................................... 3 196
----- -------
Balance, end of period........................... $ 243 $ 1,205
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