1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1997
[ ] TRANSITIONAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ____________ to ___________
COMMISSION FILE NUMBER: 000-22201
EMERALD FINANCIAL CORP.
-----------------------
(Exact name of registrant as specified in its charter)
OHIO 34-1842953
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(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
14092 PEARL ROAD
STRONGSVILLE, OHIO 44136
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(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (216) 238-7311
CAPITAL STOCK, WITHOUT PAR VALUE
--------------------------------
Title of Class
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 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 [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Capital Stock, No Par Value 5,064,600
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(Class) (Outstanding at July 31, 1997)
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EMERALD FINANCIAL CORP.
TABLE OF CONTENTS
-----------------
PART I. FINANCIAL INFORMATION PAGE
Item I. Financial Statements:
Consolidated Statements of Financial
Condition as of June 30, 1997, and
December 31, 1996.............................................................. 2
Consolidated Statements of Income for
the Three and Six Month Periods Ended June
30, 1997 and 1996.............................................................. 3
Consolidated Statements of Cash Flows
for the Six Month Periods Ended June
30, 1997 and 1996.............................................................. 4
Notes to Consolidated Financial Statements..................................... 5
Selected Financial Information........................................................... 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.................................. 9
Tables......................................................................... 20
PART II. OTHER INFORMATION
Item 4. Submission of Matters to Vote of Security Holders.............................. 23
Item 6. Exhibits and Reports on Form 8-K............................................... 24
SIGNATURES ...................................................................................... 25
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EMERALD FINANCIAL CORP.
Consolidated Statements of Financial Condition
(Unaudited)
June 30, December 31,
1997 1996
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(In thousands, except per share data)
ASSETS:
CASH AND CASH EQUIVALENTS
Cash and deposits with banks $ 3,191 $ 3,146
Interest bearing deposits with banks 5,616 4,406
INVESTMENT SECURITIES
Held-to-maturity (fair values of $22,018 and $47,496 at
June 30, 1997 and December 31, 1996, respectively) 22,182 47,684
Available for sale (at fair value) 46,509 21,996
MORTGAGE-BACKED SECURITIES
Held-to-maturity (fair values of $30,034 and $33,104 at
June 30, 1997 and December 31, 1996, respectively) 29,385 32,536
Available for sale (at fair value) 28,426 19,644
LOANS-NET
(Including allowance for loan losses of $1,577 and $1,423 at
June 30, 1997 and December 31, 1996, respectively) 451,295 425,060
Loans held for sale 2,264 795
Accrued interest receivable 3,773 3,238
Federal Home Loan Bank stock-at cost 3,379 2,831
Premises and equipment-net 4,066 3,939
Prepaid expenses and other assets 2,994 2,215
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TOTAL ASSETS $603,080 $ 567,490
=======================================================================================================================
LIABILITIES:
Deposits $522,119 $ 493,471
Federal Home Loan Bank advances 30,728 25,234
Deferred federal income tax 1,829 1,584
Advance payments by borrowers 39 1,502
Accrued interest payable 795 586
Accounts payable and other 1,856 1,955
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TOTAL LIABILITIES 557,366 524,332
SHAREHOLDERS' EQUITY
Common stock, no par value, 10,000,000 shares authorized,
5,061,600 shares issued and outstanding 9,831 9,831
Fair value adjustment, net of tax effect 96 (95)
Retained earnings 35,787 33,422
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TOTAL SHAREHOLDERS' EQUITY 45,714 43,158
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TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $603,080 $ 567,490
=======================================================================================================================
Shareholders' Equity per share $ 9.03 $ 8.53
Tangible Equity per share $ 8.87 $ 8.39
See notes to consolidated financial statements
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EMERALD FINANCIAL CORP.
Consolidated Statements of Income
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
1997 1996 1997 1996
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(Dollars in thousands, except per share data)
INTEREST INCOME
Loans $ 9,222 $ 8,029 $ 17,986 $ 15,326
Investment securities 900 956 1,758 2,053
Mortgage-backed securities 985 758 2,049 1,651
Other 208 96 389 256
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11,315 9,839 22,182 19,286
INTEREST EXPENSE
Deposits 6,687 5,664 13,044 11,231
Advances from the Federal Home Loan Bank 422 284 792 479
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7,109 5,948 13,836 11,710
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NET INTEREST INCOME 4,206 3,891 8,346 7,576
Provision for loan losses 91 23 169 28
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NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 4,115 3,868 8,177 7,548
NON-INTEREST INCOME
Gain on sale of assets 103 25 151 260
Loan service fees 177 199 343 323
Other 226 169 437 327
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506 393 931 910
NON-INTEREST EXPENSE
Salaries and employee benefits 1,010 867 2,071 1,810
Net occupancy and equipment 387 383 768 745
Franchise tax 146 140 293 280
Federal deposit insurance 79 241 155 483
Amortization of goodwill 31 34 62 67
Other 631 681 1,221 1,330
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Non-interest expense 2,284 2,346 4,570 4,715
INCOME BEFORE FEDERAL INCOME TAXES 2,337 1,915 4,538 3,743
Provision for federal income taxes 801 671 1,566 1,311
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NET INCOME $ 1,536 $ 1,244 $ 2,972 $ 2,432
================================================================================================================
Earnings per common share $ 0.30 $ 0.25 $ 0.59 $ 0.48
Weighted average number of common
shares outstanding 5,061,600 5,061,600 5,061,600 5,061,600
See notes to consolidated financial statements
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EMERALD FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
1997 1996
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(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 2,972 $ 2,432
Adjustments to reconcile net income to net cash
provided by (used in) operating activities
Provision for loan losses 169 28
Gain from sale of assets (151) (260)
Accretion of discounts and other deferred yield items (1,118) (1,047)
Depreciation and amortization 380 400
Effect of change in accrued interest
receivable and payable (326) 35
Federal Home Loan Bank stock dividends (108) (88)
Deferred federal income taxes 245 17
Net change in other assets and liabilities (938) 92
Net (increase) decrease in loans held for sale (1,433) 4,461
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NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES (308) 6,070
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in loans (20,864) (75,242)
Purchases of:
Mortgage-backed securities and loans (13,433) (3,149)
Investment securities (34,689) (10,800)
Premises and equipment (430) (516)
Federal Home Loan Bank Stock (440) (239)
Proceeds from:
Mortgage-backed security principal repayments 3,650 5,166
Sales of available for sale mortgage-backed securities -- 6,744
Investment securities maturities and principal repayments 35,697 30,145
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NET CASH USED IN INVESTING ACTIVITIES (30,509) (47,891)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits 28,648 26,094
Payments on advances from the Federal Home Loan Bank (7,906) (12,075)
Proceeds from advances from the Federal Home Loan Bank 13,400 22,500
Net decrease in escrows (1,463) (1,117)
Payment of dividends on common stock (607) (582)
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NET CASH PROVIDED BY FINANCING ACTIVITIES 32,072 34,820
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NET CHANGE IN CASH AND CASH EQUIVALENTS 1,255 (7,001)
CASH AND CASH EQUIVALENTS, AT BEGINNING OF THE PERIOD 7,552 15,509
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CASH AND CASH EQUIVALENTS, AT END OF THE PERIOD $ 8,807 $ 8,508
===============================================================================================
See notes to consolidated financial statements
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EMERALD FINANCIAL CORP. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. NATURE OF OPERATIONS
--------------------
Emerald Financial Corp. (Emerald or Company) is a unitary thrift holding
company formed in 1996 which became the parent company of The Strongsville
Savings Bank (Strongsville or Bank) on March 6, 1997, through a tax-free
exchange of shares of Strongsville for shares of Emerald. The Company's primary
holding is The Strongsville Savings Bank. The Bank conducts its principal
activities from its Community Financial Centers located in southwestern
Cuyahoga, Lorain and Medina counties. The Bank's principal activities include
residential lending and retail banking.
2. BASIS OF PRESENTATION
---------------------
The consolidated financial statements of the Company include the accounts
of Emerald and the accounts of its wholly owned subsidiaries, The Strongsville
Savings Bank and Emerald Development Corp. All significant inter-company
transactions have been eliminated. In the opinion of management, the
accompanying unaudited financial statements include all adjustments (consisting
only of normal recurring accruals) which the Company considers necessary for a
fair presentation of (a) the results of operations for the three and six month
periods ended June 30, 1997 and 1996; (b) the financial condition at June 30,
1997, and December 31, 1996; and (c) the statements of cash flows for the six
month periods ended June 30, 1997 and 1996. The results of operations for the
three and six month periods ended June 30, 1997 are not necessarily indicative
of the results that may be expected for a full year.
Certain prior period data has been reclassified to conform to current year
presentation.
3. STATEMENTS OF CASH FLOWS
------------------------
For purposes of the Statements of Cash Flows, Emerald considers all cash
and deposits with banks with maturities of less than three months to be cash
equivalents.
Income tax payments of $739,000 and $1,299,000 were made during the six
month periods ended June 30, 1997 and 1996, respectively. Interest paid totaled
$13,627,000 and $11,659,000 for the six month periods ended June 30, 1997 and
1996, respectively. There were transfers from loans to real estate owned of
$951,000 and loans made to finance the sale of real estate owned of $544,000
during the six month period ended June 30, 1997. There were no transfers from
loans to real estate owned nor were any loans made to finance the sale of real
estate owned during the first half of 1996.
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4. EARNINGS PER SHARE
------------------
Basic and diluted earnings per share are calculated using the weighted
average number of shares of capital stock and capital stock equivalents
outstanding for the period. The impact of stock options was not dilutive in any
period. The weighted average number of shares of capital stock outstanding has
been retroactively adjusted to reflect the two-for-one stock split effective May
15, 1997 for shareholders of record on May 1, 1997.
5. NEW ACCOUNTING STANDARDS
------------------------
STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 125, Accounting for
Transfers and Servicing of Financial Assets and Extinguishment of Liabilities,
was effective January 1, 1997. SFAS 125 amends portions of SFAS 115, Accounting
for Certain Investments in Debt and Equity Securities, amends and extends to all
servicing assets and liabilities the accounting standards for mortgage servicing
rights provided by SFAS No. 65, and supersedes SFAS No. 122. SFAS No. 125
provides consistent standards for distinguishing transfers of financial assets
that are sales from transfers that are secured borrowings based on a
financial-components approach. Under the financial-components approach, after a
transfer of financial assets, an entity recognizes the financial and servicing
assets it controls and the liabilities it has incurred, derecognizes financial
assets when control has been surrendered, and derecognizes liabilities when
extinguished. The adoption of this statement did not have a material impact on
the Company's consolidated financial statements. SFAS No. 127 defers the
effective date of certain provisions of SFAS No. 125 until January 1, 1998, and
is not expected to have a material impact on the Company's consolidated
financial statements.
In February 1997 the FASB issued STATEMENT OF FINANCIAL ACCOUNTING
STANDARDS NO. 128, Earnings Per Share. SFAS No. 128 establishes standards for
computing and presenting earnings per share (EPS) and applies to entities with
publicly held common stock. SFAS No. 128 simplifies the standards for computing
EPS previously found in Accounting Principles Board Opinion No. 15, Earnings Per
Share, and makes them comparable to international EPS standards. It replaces the
presentation of primary EPS with a presentation of basic EPS. It also requires
dual presentation of basic and diluted EPS on the face of the income statement
for all entities with complex capital structures. SFAS 128 is effective for
financial statements for both interim and annual periods ending after
December 15, 1997.
In February 1997 the FASB also issued STATEMENT OF FINANCIAL ACCOUNTING
STANDARDS NO. 129, Disclosures of Information about Capital Structure. This
statement establishes standards for disclosing information about an entity's
capital structure. It supersedes specific disclosure requirements of APB
Opinions No. 10, Omnibus Opinion-1966, and No. 15, Earning Per Share, and FASB
Statement No. 47, Disclosure of Long-Term Obligations, and consolidates them in
this statement for ease of retrieval and for
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greater visibility to nonpublic entities. SFAS No. 129 is effective for
financial statements for periods ending after December 15, 1997. It contains no
changes in disclosure requirements for entities that were previously subject to
the requirements of Opinions 10 and 15 and Statement 47 and, therefore, is not
expected to have a significant impact on the financial condition or results of
operations of the Company.
In June 1997, the FASB issued STATEMENT OF FINANCIAL ACCOUNTING STANDARDS
NO. 130, Reporting Comprehensive Income. This statement establishes standards
for the reporting and display of comprehensive income and its components in a
full set of general- purpose financial statements. This statement is effective
for fiscal years beginning after December 15, 1997.
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SELECTED FINANCIAL INFORMATION
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
1997 1996 1997 1996
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Unaudited
(Dollars in thousands, except per-share data)
ANNUALIZED RETURNS AND OPERATING RATIOS
Earnings per share $ 0.30 $ 0.25 $ 0.59 $ 0.48
Return on Average Assets 1.02% 0.96% 1.01% 0.96%
Return on Average Equity 13.66% 11.62% 13.40% 11.62%
Noninterest expense to
average assets 1.50% 1.79% 1.54% 1.84%
Efficiency ratio 48.89% 54.28% 49.40% 56.50%
OTHER SELECTED FINANCIAL RATIOS
Interest rate spread 2.51% 2.72% 2.54% 2.71%
Net yield on interest-earning assets 2.87% 3.09% 2.91% 3.08%
Yield on average interest-earning assets 7.73% 7.81% 7.73% 7.84%
Cost of average interest-bearing liabilities 5.22% 5.09% 5.19% 5.13%
Non-performing loans to total loans 0.25% 0.52% 0.25% 0.52%
Non-performing assets to total assets 0.24% 0.40% 0.24% 0.40%
Net recoveries (charge-offs) to average loans 0.01% 0.00% 0.00% 0.00%
Capital ratios:
Tangible capital ratio 7.25% 7.92% 7.25% 7.92%
Core capital ratio 7.25% 7.92% 7.25% 7.92%
Risk-based capital ratio 12.29% 13.12% 12.29% 13.12%
Dividends per share $ 0.06 $ 0.060 $ 0.12 $ 0.115
Annualized asset growth 9.82% 19.46% 12.54% 15.07%
Average total assets $ 600,063 $517,642 $586,089 $505,689
Average loans, net (includes held for sale) 449,753 389,829 440,904 366,911
Average interest-earning assets 585,825 504,023 573,610 492,282
Average deposits 516,253 448,042 506,701 439,811
Average advances from the FHLB 28,039 19,773 26,946 16,462
Average shareholders' equity 44,964 42,289 44,362 41,975
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Part I, Item 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
- -------
Emerald Financial Corp. (Emerald or Company), a unitary thrift holding
company, became the holding company of The Strongsville Savings Bank
(Strongsville or Bank) in a tax-free exchange of shares of the Bank for shares
of Emerald on March 6, 1997. As a result, Emerald owns and operates the Bank.
All references to the Company or Emerald, unless otherwise indicated, refer to
the Bank and its subsidiary on a consolidated basis. Strongsville was founded in
1961 as an Ohio-chartered, federally insured savings association whose business
activities are concentrated in the greater Cleveland, Ohio area. The Company
conducts its business through its home office in Strongsville and its thirteen
additional full-service Community Financial Centers located in Cuyahoga, Lorain
and Medina counties. The Company formed Emerald Development Corp., a wholly
owned subsidiary, on June 3,1997. The development company was formed to take
advantage of opportunities to develop real estate as well as to enter into joint
real estate development ventures in the future.
The Company's principal business has historically been attracting deposits
from the general public and making loans secured by second mortgage liens on
residential and other real estate. The Bank and the banking industry in general
are significantly affected by prevailing economic conditions, the general level
and trend of interest rates as well as by government policies and regulations
concerning, among other things, fiscal affairs, housing and financial
institutions.
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
- ---------------------------------------------
Emerald's total assets were $603.1 million at June 30, 1997, representing
an increase of $35.6 million, or 12.54%, annualized, for the six month period
and $73.9 million, or 14.0% for the twelve month period ended June 30, 1997. The
increase in assets was primarily concentrated in the loan portfolio. Emerald's
loan portfolio increased $27.7 million during the six months and $45.3 million
during the twelve months ended June 30, 1997. The increases in loans were funded
primarily by increases in deposits.
The Company's deposits were $522.1 million at June 30, 1997, representing
an increase of $28.6 million, or 11.6% during the six month period and $63.5
million, or 13.8% for the twelve month period ended June 30, 1997.
Net interest income was $4.2 million for the quarter ended June 30, 1997,
an increase of $0.3 million over the second quarter of 1996. The increase in
interest-earning assets, partially offset by a reduction in interest rate
spread, caused the improvement. Average interest-earning assets increased $81.8
million from $504.0 million for the second
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quarter of 1996 to $585.8 million for the second quarter of 1997. The Bank's
interest rate spread decreased 21 basis points from 2.72% during the second
quarter of 1996 to 2.51% during the second quarter of 1997.
Net income for the second quarter of 1997, at $1.5 million, was $0.3
million more than the $1.2 million for the same period in 1996. The increase was
primarily due to the increase in net interest income.
Net interest income was $8.3 million for the first half of 1997, an
increase of $0.7 million over the first half of 1996. The increase in
interest-earning assets, partially offset by a reduction in interest rate
spread, caused the improvement. Average interest-earning assets increased $81.3
million from $492.3 million for the six months ended June 30, 1996 to $573.6
million for the like period in 1997. The Bank's interest rate spread decreased
17 basis points from 2.71% during the first half of 1996 to 2.54% during the
first half of 1997.
Net income for the first half of 1997, at $3.0 million, was $0.6 million
more than the $2.4 million for the same period in 1996. The increase was
primarily due to the increase in net interest income.
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Tables 1(a) and 1(b) present information regarding the average balances of
interest-earning assets and interest-bearing liabilities, the total dollar
amount of interest income from interest-earning assets and their average yields
and the total dollar amount of interest expense on interest-bearing liabilities
and their average rates. Table 1 also presents net interest income,
interest-rate spread, net interest margin and the ratio of average
interest-earning assets to average interest-bearing liabilities. Interest-rate
spread represents the difference between the weighted average yield on
interest-earning assets and the weighted average cost of interest-bearing
liabilities. Net interest margin represents net interest income as a percent of
average interest-earning assets. Average balance calculations were based on
daily and monthly balances. Assets available for sale are included in the major
asset category as if they were held-to-maturity.
TABLE 1 (a)
AVERAGE BALANCE TABLE
FOR THE THREE MONTHS ENDED JUNE 30,
1997 1996
AVERAGE YIELD/ AVERAGE YIELD/
BALANCE INTEREST RATE BALANCE INTEREST RATE
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(In thousands)
INTEREST-EARNING ASSETS
Loans, net (1) $ 449,753 $ 9,222 8.20% $ 389,829 $ 8,029 8.24%
Investment securities 59,829 900 6.02% 62,652 956 6.10%
Mortgage-backed securities 58,730 985 6.70% 44,234 758 6.85%
Other interest-earning assets 17,513 208 4.74% 7,307 96 5.25%
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Total interest-earning assets 585,825 11,315 7.73% 504,022 9,839 7.81%
Noninterest-earning assets 14,238 13,620
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TOTAL ASSETS $ 600,063 $ 517,642
====================================================================================================================================
INTEREST-BEARING LIABILITIES
Deposits (2) $ 516,253 $ 6,687 5.18% $ 448,042 $ 5,664 5.06%
Advances from FHLB 28,039 422 6.02% 19,773 284 5.75%
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Total interest-bearing liabilities 544,292 7,109 5.22% 467,815 5,948 5.09%
Noninterest-bearing liabilities 10,807 7,538
Shareholders' equity 44,964 42,289
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TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 600,063 $ 517,642
====================================================================================================================================
Net interest income $ 4,206 $ 3,891
Interest-rate spread 2.51% 2.72%
Net interest margin 2.87% 3.09%
Ratio of average interest-
earning assets to average
interest-bearing liabilities 107.63% 107.74%
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(1) Average balances include non-accrual loans. Interest income includes
deferred loan fee amortization of $411,000 and $494,000 for the three
months ended June 30, 1997 and 1996, respectively.
(2) Deposits include noninterest-bearing demand accounts which were $11,559,000
and $9,264,000 at June 30, 1997 and 1996, respectively.
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TABLE 1(b)
AVERAGE BALANCE TABLE
FOR THE SIX MONTHS ENDED JUNE 30
1997 1996
AVERAGE YIELD/ AVERAGE YIELD/
BALANCE INTEREST RATE BALANCE INTEREST RATE
- ------------------------------------------------------------------------------------------------------------------------------------
(In thousands)
INTEREST-EARNING ASSETS
Loans, net (1) $440,904 $17,986 8.16% $366,911 $15,326 8.35%
Investment securities 58,005 1,758 6.06% 68,228 2,053 6.02%
Mortgage-backed securities 58,150 2,049 7.05% 47,517 1,651 6.95%
Other interest-earning assets 16,551 389 4.70% 9,626 256 5.32%
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Total interest-earning assets 573,610 22,182 7.73% 492,282 19,286 7.84%
Noninterest-earning assets 12,479 13,407
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TOTAL ASSETS $586,089 $505,689
====================================================================================================================================
INTEREST-BEARING LIABILITIES
Deposits (2) $506,702 $13,044 5.15% 439,811 $11,231 5.11%
Advances from FHLB 26,946 792 5.88% 16,462 479 5.82%
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 533,648 13,836 5.19% 456,273 11,710 5.13%
Noninterest-bearing liabilities 8,079 7,441
Shareholders' equity 44,362 41,975
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TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $586,089 $505,689
====================================================================================================================================
Net interest income $ 8,346 $ 7,576
Interest-rate spread 2.54% 2.71%
Net interest margin 2.91% 3.08%
Ratio of average interest-
earning assets to average
interest-bearing liabilities 107.49% 107.89%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Average balances include non-accrual loans. Interest income includes
deferred loan fee amortization of $792,000 and $992,000 for the three
months ended June 30, 1997 and 1996, respectively.
(2) Deposits include noninterest-bearing demand accounts which were $11,559,000
and $9,264,000 at June 30, 1997 and 1996, respectively.
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Tables 2(a) and 2(b) present certain information regarding changes in interest
income and interest expense of the Company for the three month periods ended
June 30, 1997 and 1996. The table shows the changes in interest income and
interest expense by major category attributable to changes in the average
balance (volume) and the changes in interest rates. The net change not
attributable to either rate or volume is allocated on a prorata basis to the
change in rate or volume. Assets available for sale are included in the major
asset category as if they were held-to-maturity.
TABLE 2 (a)
RATE/VOLUME TABLE
THREE MONTHS ENDED JUNE 30, THREE MONTHS ENDED JUNE 30,
1997 COMPARED TO 1996 1996 COMPARED TO 1995
INCREASE (DECREASE) INCREASE (DECREASE)
DUE TO CHANGES IN DUE TO CHANGES IN
VOLUME RATE TOTAL VOLUME RATE TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
(In thousands)
INTEREST INCOME ON INTEREST-EARNING ASSETS
Loans, net $ 1,232 $ (39) $ 1,193 $ 1,962 $ (264) $ 1,698
Investment securities (43) (13) (56) (352) (60) (412)
Mortgage-backed securities 243 (16) 227 41 (11) 30
Other 120 (8) 112 (178) (10) (188)
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Total 1,552 (76) 1,476 1,473 (345) 1,128
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INTEREST EXPENSE ON INTEREST-BEARING LIABILITIES
Deposits 885 138 1,023 659 (86) 573
Advances from FHLB 124 14 138 73 (21) 52
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Total 1,009 152 1,161 732 (107) 625
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CHANGE IN NET INTEREST INCOME $ 543 $ (228) $ 315 $ 741 $ (238) $ 503
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
TABLE 2 (b)
RATE/VOLUME TABLE
SIX MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
1997 COMPARED TO 1996 1996 COMPARED TO 1995
INCREASE (DECREASE) INCREASE (DECREASE)
DUE TO CHANGES IN DUE TO CHANGES IN
VOLUME RATE TOTAL VOLUME RATE TOTAL
- ----------------------------------------------------------------------------------------------------------------------------------
(In Thousands)
INTEREST INCOME ON INTEREST-EARNING ASSETS
Loans, net $ 2,999 $ (339) $ 2,660 $ 3,198 $ (432) $ 2,766
Investment securities (309) 14 (295) (419) (25) (444)
Mortgage-backed securities 374 24 398 278 (6) 272
Other 158 (25) 133 (177) 12 (165)
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Total 3,222 (326) 2,896 2,880 (451) 2,429
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INTEREST EXPENSE ON INTEREST-BEARING LIABILITIES
Deposits 1,724 89 1,813 1,472 311 1,783
Advances from FHLB 308 5 313 20 (17) 3
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Total 2,032 94 2,126 1,492 294 1,786
- ----------------------------------------------------------------------------------------------------------------------------------
CHANGE IN NET INTEREST INCOME $ 1,190 $ (420) $ 770 $ 1,388 $ (745) $ 643
- ----------------------------------------------------------------------------------------------------------------------------------
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NET INTEREST INCOME
- -------------------------------------------------------------------------------
Net interest income is the primary component of net income and is
determined by the characteristics of interest-earning assets and
interest-bearing liabilities, including the spread, or the difference between
the yields earned and the rates paid on those assets and liabilities. Net
interest income is the difference between interest income and interest expense.
Three months ended Six months ended
June 30, 1997 June 30, 1997
- -------------------------------------------------------------------------------
(Dollars in thousands)
Net interest income:
Current period $ 4,206 $ 8,346
Prior period 3,891 7,576
- -------------------------------------------------------------------------------
Dollar change from prior period $ 315 $ 770
===============================================================================
Percent change from prior period 8.10% 10.16%
===============================================================================
Interest income
- ---------------
Interest income for the three months ended June 30, 1997, was $11.3
million, compared to $9.8 million for the second quarter of 1996, an increase of
$1.5 million or 15.00%. This increase was primarily due to the increase in
average interest-earning assets as demonstrated on Table 2. Average
interest-earning assets increased to $585.8 million for the second quarter of
1997 from $504.0 million for the second quarter of 1996. The effect of the
increase in interest-earning assets was offset somewhat by the 8 basis point
decline in the average yield on interest-earning assets to 7.73% for the second
quarter of 1997 from 7.81% for the like period in 1996.
Interest income for the six months ended June 30, 1997, was $22.2 million,
compared to $19.3 million for the first half of 1996, an increase of $2.9
million or 15.02%. This increase was primarily due to the increase in average
interest-earning assets as demonstrated on Table 2. Average interest-earning
assets increased to $573.6 million for the first half of 1997 from $492.3
million for the first half of 1996. The effect of the increase in
interest-earning assets was offset somewhat by the 11 basis point decline in the
average yield on interest-earning assets to 7.73% for the first half of 1997
from 7.84% for the like period in 1996.
Interest expense
- ----------------
Interest expense increased during the quarter ended June 30, 1997, compared
to the same period in 1996 primarily due to an increase in average
interest-bearing liabilities
14
16
of $76.5 million, or 16.35%, combined with an increase in the average cost of
interest-bearing liabilities. Average interest-bearing liabilities were $544.3
million and $467.8 million for the second quarter of 1997 and 1996,
respectively. The average cost of interest-bearing liabilities increased 13
basis points to 5.22% for the second quarter of 1997 from 5.09% for the same
period in 1996.
Interest expense increased during the six months ended June 30, 1997,
compared to the same period in 1996 primarily due to an increase in average
interest-bearing liabilities of $77.3 million, or 16.96%, combined with an
increase in the average cost of interest-bearing liabilities. Average
interest-bearing liabilities were $533.6 million and $456.3 million for the
first half of 1997 and 1996, respectively. The average cost of interest-bearing
liabilities increased 6 basis points to 5.19% for the first half of 1997 from
5.13% for the same period in 1996.
Provision for loan losses
- -------------------------
The provision for loan losses for the three and six month periods ended
June 30, 1997, were $91,000 and $169,000, respectively; compared to $23,000 and
$28,000, respectively, for the same periods in 1996. The provisions for all
periods were commensurate with management's estimate of the credit risk in the
loan portfolio. Economic conditions in the Bank's market area were stable.
Further discussion and other information relating to loan losses and
nonperforming assets are included in the section titled "Asset Quality."
NONINTEREST INCOME
- -------------------------------------------------------------------------------
Three months ended Six months ended
June 30, 1997 June 30, 1997
- -------------------------------------------------------------------------------
(Dollars in thousands)
Noninterest income:
Current period $ 506 $ 931
Prior period 393 910
- -------------------------------------------------------------------------------
Dollar change from prior period $ 113 $ 21
===============================================================================
Percent change from prior period 28.84% 2.34%
===============================================================================
Noninterest income consists primarily of fees earned for servicing loans,
providing services for customers and from gains on loan sales. The increase in
noninterest income is primarily due to increased fee income. An increase in
gains on sales of assets of $78,000 contributed to the increase for the second
quarter of 1997 compared to the 1996 quarter. A decrease in gains on sales of
assets of $109,000 offset the increase during the six months ended June 30, 1997
compared to the 1996 period.
15
17
NONINTEREST EXPENSE
- --------------------------------------------------------------------------------
Three months ended Six months ended
June 30, 1997 June 30, 1997
- --------------------------------------------------------------------------------
(Dollars in thousands)
Noninterest expense:
Current period $ 2,284 $ 4,570
Prior period 2,346 4,715
- --------------------------------------------------------------------------------
Dollar change from prior period $ (62) $ (145)
================================================================================
Percent change from prior period (2.60)% (3.07)%
================================================================================
The decrease in noninterest expense is primarily due to the reduction in
the federal deposit insurance premium from 23(cent) per $100 of deposits during
the three and six month periods ended June 30, 1996, to 6.5(cent) per $100 of
deposits for the same periods in 1997. The decrease in federal deposit insurance
premium expense was offset by an increase in the cost of human resources.
Management is pleased with the efficiency ratio of 48.89%, which has improved
from the 54.28% for the second quarter of 1996.
FEDERAL INCOME TAXES
- --------------------------------------------------------------------------------
The Company provided $801,000 and $1,566,000 for federal income tax during
the three and six month periods ended June 30, 1997, respectively; compared to
the $671,000 and $1,311,000 provided for federal income taxes during the like
periods in 1996. Net income before the provision for federal income taxes
increased for the compared periods resulting in a corresponding increase in the
provision for federal income taxes.
FINANCIAL RESOURCES AND LIQUIDITY
- --------------------------------------------------------------------------------
The Company's primary sources of funds are deposits, principal and interest
payments on loans, maturities of investment securities, proceeds from the sale
of loans, FHLB advances and funds generated through earnings. The primary uses
for such funds are to originate loans, maintain liquidity requirements and
manage interest rate risk.
For an analysis of Emerald's cash flows, refer to the Consolidated
Statements of Cash Flows on page 3. Management believes the Company has adequate
resources to meet its normal funding requirements.
The Bank is required to maintain an average daily balance of liquid assets
equal to 5% of the sum of its average daily balance of net withdrawable accounts
and borrowed funds due in one year or less. The Bank's June 1997 monthly average
of eligible liquid assets was 13.40%.
16
18
SHAREHOLDERS' EQUITY
- --------------------------------------------------------------------------------
Shareholders' equity was $45.7 million at June 30, 1997, an increase of
$2,556,000, or 11.84%, annualized, during the first half of 1997. This increase
was primarily the result of net income offset by dividends paid. Emerald paid
dividends in the first half of 1997 of 12(cent) per share, an increase of 4.35%
over the 11.5(cent) per share dividend paid in the first half of 1996.
The Company's return on average assets was 1.01% and return on average
equity was 13.40% for the first half of 1997.
At June 30, 1997, the Bank was in excess of all capital requirements
specified by federal regulations as shown by the following table.
TANGIBLE CORE RISK-BASED
CAPITAL CAPITAL CAPITAL
---------------------------------------
(Dollars in thousands)
Capital amount -- Actual $ 43,648 $ 43,648 $ 45,225
Capital amount -- Required 9,026 18,052 29,447
---------------------------------------
Amount in excess of requirement $ 34,622 $ 25,596 $ 15,778
=======================================
Capital ratio -- Actual 7.25% 7.25% 12.29%
Capital ratio -- Required 1.50% 3.00% 8.00%
---------------------------------------
Amount in excess of requirement 5.75% 4.25% 4.29%
=======================================
Strongsville Savings' capital levels at June 30, 1997, qualify it as a
"well-capitalized" institution, the highest of five tiers under applicable
federal definitions.
QUALIFIED THRIFT LENDER TEST
- -------------------------------------------------------------------------------
Savings associations insured by the Savings Association Insurance Fund of
the Federal Deposit Insurance Corporation (FDIC) are required to maintain 65% of
total portfolio assets in Qualified Thrift Investments. As of June 30, 1997, the
Bank had 85.03% of total assets invested in Qualified Thrift Investments.
17
19
ASSET QUALITY
- -------------------------------------------------------------------------------
Table 3 sets forth information regarding non-performing assets at June 30,
1997, December 31, 1996, and June 30, 1996.
TABLE 3
NON-PERFORMING ASSETS ANALYSIS
JUNE 30, DECEMBER 31, JUNE 30,
1997 1996 1996
- -------------------------------------------------------------------------------------------------------------------------------
(Dollars In thousands)
NON-ACCRUING LOANS
1-4 family - permanent $ 61 $ 600 $ 247
1-4 family - construction 413 - -
Multi-family and Commercial
real estate - - -
Land and development - - -
Commercial non-real estate - - 70
Consumer and other 22 5 20
- --------------------------------------------------------------------------------------------------------
Total 496 605 337
LOANS DELINQUENT 90 DAYS OR MORE
AND STILL ACCRUING
1-4 family - permanent 640 682 1,158
1-4 family - construction - 412 625
Multi-family and Commercial
real estate - - -
Land and development - - 9
Commercial non-real estate - - -
Consumer and other - - 8
- --------------------------------------------------------------------------------------------------------
Total 640 1,094 1,800
Total non-performing loans 1,136 1,699 2,137
Real estate owned 340 - -
- --------------------------------------------------------------------------------------------------------
Total non-performing assets $ 1,476 $ 1,699 $ 2,137
========================================================================================================
Allowances for loan losses $ 1,577 $ 1,423 $ 1,170
========================================================================================================
Non-performing loans to total loans-net 0.25% 0.40% 0.52%
Non-performing assets to total assets 0.24% 0.30% 0.40%
Allowance for loan losses to ending
loan balance (before allowance) 0.35% 0.33% 0.29%
Allowance for loan losses to
non-performing loans 138.85% 83.76% 54.74%
- --------------------------------------------------------------------------------------------------------
18
20
Table 4 presents information concerning activity in the allowance for loan
losses during the quarters ended June 30, 1997 and 1996.
- ----------------------------------------------------------------------------------------------------------------------------
TABLE 4
ACTIVITY IN THE ALLOWANCE FOR LOAN LOSSES
For the Three Months Ended For the Six Months Ended
June 30, June 30,
1997 1996 1997 1996
- ----------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)
Allowance at the beginning of the period $ 1,500 $ 1,146 $ 1,423 $ 1,168
Provision charged to expense 91 23 169 28
Charge-offs:
- ------------
1-4 family - permanent 5 -- 5 --
1-4 family - construction -- -- -- --
Multi-family and Commercial
real estate -- -- -- --
Land and development -- -- -- --
Commercial non-real estate -- -- -- --
Consumer and other 14 -- 19 27
- ----------------------------------------------------------------------------------------------------------------------------
19 -- 24 27
Recoveries
- ----------
1-4 family - permanent -- -- -- --
1-4 family - construction -- -- -- --
Multi-family and Commercial
real estate -- -- -- --
Land and development -- -- -- --
Commercial non-real estate -- -- -- --
Consumer and other 5 1 9 1
- ----------------------------------------------------------------------------------------------------------------------------
5 1 9 1
- ----------------------------------------------------------------------------------------------------------------------------
Net recoveries (charge-offs) (14) 1 (15) (26)
- ----------------------------------------------------------------------------------------------------------------------------
Allowance at the end of the period $ 1,577 $ 1,170 $ 1,577 $ 1,170
============================================================================================================================
Net charge-offs during the period to average
loans outstanding during the period
(Annualized) 0.01% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------------------------------
The amount of the allowance for loan losses is based on management's
analysis of risks inherent in the various segments of the loan portfolio,
management's assessment of known or potential problem credits which have come to
management's attention during the ongoing analysis of credit quality, historical
loss experience, current economic conditions, and other factors. Loan loss
estimates are reviewed periodically, and adjustments, if any, are reported in
earnings in the period in which they become known.
19
21
TABLE A
Table A sets forth the composition of the Bank's loan portfolio at June
30, 1997, December 31, 1996, and June 30, 1996.
- --------------------------------------------------------------------------------------------------------------------
LOAN PORTFOLIO COMPOSITION
June 30, 1997 December 31, 1996 June 30, 1996
Amount Percent Amount Percent Amount Percent
- --------------------------------------------------------------------------------------------------------------------
REAL ESTATE MORTGAGE LOANS: (Dollars In Thousands)
Permanent first mortgage loans:
1-4 family $ 314,328 69.65% $ 301,284 70.88% $ 289,030 70.97%
Multi-family 991 0.22% 1,049 0.25% 1,107 0.27%
Commercial real estate 52,280 11.58% 46,883 11.03% 42,445 10.42%
Land 283 0.06% 195 0.05% 332 0.08%
Construction first mortgage loans:
Residential development 54,591 12.09% 54,670 12.85% 57,489 14.12%
1-4 family 44,317 9.82% 37,049 8.72% 39,189 9.62%
Multi-family -- 0.00% 240 0.06% 1,439 0.35%
Commercial real estate 1,288 0.30% 2,376 0.56% 4,943 1.22%
- --------------------------------------------------------------------------------------------------------------------
Total mortgage loans 468,078 103.72% 443,746 104.40% 435,974 107.05%
OTHER LOANS
Commercial 4,695 1.04% 4,250 1.00% 3,541 0.87%
Consumer 12,532 2.78% 9,118 2.14% 8,417 2.07%
- --------------------------------------------------------------------------------------------------------------------
Total other loans 17,227 3.82% 13,368 3.14% 11,958 2.94%
- --------------------------------------------------------------------------------------------------------------------
Total loans 485,305 107.54% 457,114 107.54% 447,932 109.99%
Less:
Loans in process 28,826 6.39% 26,676 6.28% 35,208 8.64%
Allowance for loan losses 1,577 0.35% 1,423 0.33% 1,170 0.29%
Deferred yield items 3,607 0.80% 3,955 0.93% 4,304 1.06%
- --------------------------------------------------------------------------------------------------------------------
34,010 7.54% 32,054 7.54% 40,682 9.99%
- --------------------------------------------------------------------------------------------------------------------
Total loans held for investment-Net $ 451,295 100.00% $ 425,060 100.00% $ 407,250 100.00%
=====================================================================================================================
Real estate loans held for sale $ 2,264 $ 795 $ 1,022
=====================================================================================================================
- --------------------------------------------------------------------------------
20
22
TABLE B
Table B sets forth the activities in the Bank's loan portfolio for the
three and six month periods ended June 30, 1997, and 1996.
- --------------------------------------------------------------------------------------------------------------------
ACTIVITY IN THE LOAN PORTFOLIO
For the Three Months Ended For the Six Months Ended
June 30, June 30,
1997 1996 1997 1996
- --------------------------------------------------------------------------------------------------------------------
(In thousands)
PERMANENT MORTGAGE LOAN ORIGINATIONS
1-4 family $ 25,666 $ 49,262 $ 44,929 $ 89,430
Multi-family - - - -
Commercial real estate 1,169 465 2,629 2,765
Land 165 - 245 -
- ------------------------------------------------------------------------------------------------------------------
27,000 49,727 47,803 92,195
CONSTRUCTION FIRST MORTGAGE LOAN ORIGINATIONS
Residential development 7,122 16,399 18,616 26,480
1-4 family 17,044 16,954 25,301 25,928
Multi-family - - - -
Commercial real estate 735 1,425 1,643 1,425
- ------------------------------------------------------------------------------------------------------------------
24,901 34,778 45,560 53,833
NONMORTGAGE LOANS
Commercial 1,218 579 1,683 1,174
Consumer 5,576 1,084 11,138 1,470
- ------------------------------------------------------------------------------------------------------------------
6,794 1,663 12,821 2,644
- ------------------------------------------------------------------------------------------------------------------
TOTAL LOAN ORIGINATIONS 58,695 86,168 106,184 148,672
PURCHASED LOANS
Commercial real estate - - 4,422 -
- ------------------------------------------------------------------------------------------------------------------
TOTAL NEW LOANS 58,695 86,168 110,606 148,672
LESS
Principal repayments 35,072 30,586 60,462 56,076
Loan sales 13,412 280 20,445 8,346
- ------------------------------------------------------------------------------------------------------------------
48,484 30,866 80,907 64,422
- ------------------------------------------------------------------------------------------------------------------
NET INCREASE IN LOANS $ 10,211 $ 55,302 $ 29,699 $ 84,250
==================================================================================================================
- ------------------------------------------------------------------------------------------------------------------
21
23
TABLE C
Table C sets forth the composition of the Bank's deposits by interest rate
category at June 30, 1997, December 31, 1996, and June 30, 1996.
- ------------------------------------------------------------------------------------------------------------------
DEPOSIT COMPOSITION
----------------------------------------------------------------------------------
June 30, 1997 December 31, 1996 June 30, 1996
Wtd Avg Wtd Avg Wtd Avg
Cost Amount Percent Cost Amount Percent Cost Amount Percent
- ------------------------------------------------------------------------------------------------------------------
(Dollars In thousands)
PASSBOOK ACCOUNTS 2.91 $ 48,808 9.35% 2.90 $ 46,034 9.33% 2.88 $ 47,552 10.37%
NOW ACCOUNTS 1.99% 31,678 6.07% 2.02% 29,661 6.01% 2.02% 28,861 6.29%
MONEY MARKET DEPOSIT ACCOUNTS 2.53% 16,663 3.19% 2.53% 17,882 3.62% 2.53% 20,436 4.46%
COMMERCIAL ACCOUNTS 0.00% 11,082 2.12% 0.00% 11,535 2.34% 0.00% 9,264 2.02%
- ------------------------------------------------------------------------------------------------------------------
2.28% 108,231 20.73% 2.27% 105,112 21.30% 2.33% 106,113 23.14%
CERTIFICATES OF DEPOSIT:
4.50% and less 2.52% 1,237 0.24% 2.54% 1,849 0.37% 2.99% 3,100 0.68%
4.51% to 5.50% 5.28% 87,857 16.83% 5.34% 116,857 23.68% 5.27% 119,458 26.04%
5.51% to 6.50% 6.05% 250,809 48.04% 6.03% 187,013 37.90% 5.96% 134,058 29.23%
6.51% to 7.50% 7.33% 65,659 12.57% 7.33% 73,823 14.96% 7.28% 86,665 18.89%
7.51% and greater 8.89% 8,326 1.59% 8.86% 8,817 1.79% 8.84% 9,264 2.02%
- ------------------------------------------------------------------------------------------------------------------
6.13% 413,888 79.27% 6.11% 388,359 78.70% 6.10% 352,545 76.86%
- ------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS 5.34% $522,119 100.00% 5.29% $493,471 100.00% 5.23% $458,658 100.00%
===================================================================================================================
- -------------------------------------------------------------------------------------------------------------------
TABLE D
Table D sets forth the remaining terms to maturity for the certificates of
deposit at June 30, 1997.
CERTIFICATES OF DEPOSIT MATURING DURING:
(In Thousands)
The year ending June 30, 1998 $ 272,516
The year ending June 30, 1999 53,596
The year ending June 30, 2000 41,516
The year ending June 30, 2001 7,353
The year ending June 30, 2002 5,836
After June 30, 2002 33,071
==================================================
$ 413,888
==================================================
22
24
PART II
ITEM 4 Submission of Matters to a Vote of Security Holders
----------------------------------------------------
(a) The Annual Meeting of Shareholders was held on April 24, 1997.
(b) The following three directors were elected for the three year
term stated. All were elected without opposition.
Director Term
--------------------------------------------------------
Joan M. Dzurilla 1997 to 2000
Mike Kalinich. Sr. 1997 to 2000
Thomas P. Perciak 1997 to 2000
The remaining directors and year in which their current term
expires are as follows:
Director Term
--------------------------------------------------------
John F. Ziegler 1998
William A. Fraunfelder, Jr. 1998
Glenn W. Goist 1998
George P. Bohnert, Jr. 1999
John J. Plucinsky 1999
Kenneth J. Piechowski 1999
(c) The following matters were voted upon at the Annual Shareholders
Meeting, with the allocation of the votes cast indicated.
(i) Election of three directors for three-year terms expiring
in 2000. The nominees were elected and the record of votes was
as follows:
Nominee Votes for Votes Abstaining Shares not
against Votes Voted
-----------------------------------------------------------------------------
Joan M. Dzurilla 2,016,987.380 0 26,153.000 487,659.620
Mike Kalinich, Sr 2,017,787.380 0 25,353.000 487,659.620
Thomas P. Perciak 2,019,187.380 0 23,953.000 487,659.620
(ii) Ratification of Deloitte & Touche LLP as the Company's
independent auditors for the year ended December 31, 1997.
23
25
Deloitte & Touche LLP were ratified as proposed and the record
of votes was as follows:
Votes Votes Abstaining Shares not
for against Votes Voted
------------------------------------------------------
2,016,974.620 4,587.000 21,578.760 487,659.620
(d) Not applicable.
ITEM 5 Exhibits and Reports on Form 8-K
(a) Not applicable
(b) No reports on Form 8-K were filed during the quarter.
ITEM 6(a) Exhibits
10. Material Contracts - See exhibit index
24
26
SIGNATURES
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.
Emerald Financial Corp.
------------------------
(Registrant)
Date August 8, 1997 /s/ THOMAS P. PERCIAK .
---------------- ------------------------
Thomas P. Perciak,
President & Chief Executive Officer
Date August 8, 1997 /s/ JOHN F. ZIEGLER .
---------------- ---------------------------
John F. Ziegler,
Executive Vice President &
Chief Financial Officer
25
27
EXHIBIT INDEX
- -------------------------------------------------------------------------------------------------------------------
Exhibit Attachment
Number Description Number
- -------------------------------------------------------------------------------------------------------------------
10 (a) Amendment No. 1 to Employment Agreement 10 (a)
(Thomas P. Perciak)
- -------------------------------------------------------------------------------------------------------------------
10 (b) Amendment No. 1 to Employment Agreement 10 (b)
(John F. Ziegler)
- -------------------------------------------------------------------------------------------------------------------
10 (c) Amendment to Executive Supplemental Benefit Agreement 10 (c)
Dated January 1, 1995
(Thomas P. Perciak)
- -------------------------------------------------------------------------------------------------------------------
10 (d) Amendment to Executive Supplemental Benefit Agreement 10 (d)
Dated January 1, 1995
(John F. Ziegler)
- -------------------------------------------------------------------------------------------------------------------
10 (e) Split Dollar Life Insurance Agreement 10 (e)
(Thomas P. Perciak)
- -------------------------------------------------------------------------------------------------------------------
10 (f) Split Dollar Life Insurance Agreement 10 (f)
(John F. Ziegler)
- -------------------------------------------------------------------------------------------------------------------
10 (g) Executive Supplemental Benefit Agreement 10 (g)
(Thomas P. Perciak)
- -------------------------------------------------------------------------------------------------------------------
10 (h) Executive Supplemental Benefit Agreement 10 (h)
(John F. Ziegler)
- -------------------------------------------------------------------------------------------------------------------
10 (i) Amendment No. 1 to The Severance Agreement 10 (i)
(Paula M. Dewey)
- -------------------------------------------------------------------------------------------------------------------
10 (j) Amendment No. 1 to The Severance Agreement 10 (j)
(Cynthia W. Gannon)
- -------------------------------------------------------------------------------------------------------------------
10 (k) Amendment No. 1 to The Severance Agreement 10 (k)
(William J. Harr, Jr.)
- -------------------------------------------------------------------------------------------------------------------
10 (l) Amendment No. 1 to Executive Supplemental Benefit 10 (l)
Agreement
(Paula M. Dewey)
- -------------------------------------------------------------------------------------------------------------------
10 (m) Amendment No. 1 to Executive Supplemental Benefit 10 (m)
Agreement
(Cynthia W. Gannon)
- -------------------------------------------------------------------------------------------------------------------
10 (n) Amendment No. 1 to Executive Supplemental Benefit 10 (n)
Agreement
(William J. Harr, Jr.)
- -------------------------------------------------------------------------------------------------------------------
26