U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
Commission file number - 0-21346
TRIANGLE BANCORP, INC.
(Exact name of registrant as specified in its charter)
North Carolina 56-1764546
-------------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4300 Glenwood Avenue
Raleigh, North Carolina 27612
-----------------------------
(Address of principal executive offices)
(Zip Code)
Telephone: (919) 881-0455
-------------------------
(Registrant's telephone number)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or 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 [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock 25,151,112
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Class Outstanding at November 10, 1998
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
The Consolidated Balance Sheets for September 30, 1998 and December 31,
1997, the Consolidated Statements of Income for the three and nine month
periods ended September 30, 1998 and 1997, and the Consolidated Statements
of Cash Flows for the nine month periods ended September 30, 1998 and 1997
have been included as attachments to this report.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Highlights
During the third quarter of 1998, Triangle Bancorp, Inc. (the "Company")
completed its acquisition of United Federal Savings Bank ("UFSB"). UFSB,
headquartered in Rocky Mount, North Carolina, had $302 million in total
assets. With this acquisition the Company is expanding into four new
markets and increasing its presence in existing markets. UFSB also has an
established mortgage origination business and provides mortgage servicing
for itself and others. The merger was accounted for as a pooling of
interests and therefore all prior period financial information has been
restated to include UFSB.
Operating Results for the Three Months Ended September 30, 1998 and 1997
The Company's net income, without nonrecurring items, for the three months
ended September 30, 1998 was $6,094,000 an increase of 18% over the
$5,174,000 earned in the same period last year. Diluted earnings per share
increased 20%, to $.24 versus $.20 for the 1997 quarter. The return on
average assets was 1.21% for 1998 compared to 1.12% in 1997. Return on
average equity for the three months ended September 1998 was 14.95% in
1998 versus 14.11% for the same period in 1997.
Including after-tax, nonrecurring merger-related expenses of $1.7 million
associated with the acquisition of UFSB, the Company's net income for the
three months ended September 30, 1998 was $4,439,000, compared to earnings
of $4,958,000 for the same period in 1997 which included after-tax
$216,000 in merger expenses. Diluted earnings per share were $0.17
compared to $0.19 for the same period in 1997. For the three months ended
September 30, 1998 the annualized returns on average assets and equity
were .88% and 10.89%, respectively compared to 1.08% and 13.52% for the
same period in 1997.
Net interest income increased to $19,018,000 for the quarter ended
September 30, 1998 from $17,361,000 in the year ago period. The taxable
equivalent yield on earning assets decreased slightly from the year ago
period to 8.58% from 8.61% due to a 6 basis point (bp) drop in loan yields
which was offset by an increase in the taxable equivalent investment
yield. The cost of interest bearing liabilities decreased as well to 4.88%
from 4.99% reflecting primarily rates on deposits. The net yield on
earning assets for the three months ended September 30, 1998 was 4.32%
versus 4.25% for same period last year.
For the three months ended September 30, 1998, a loan loss provision of
$1,223,000 was made compared to a provision of $1,291,000 for the same
period in 1997. (For further discussion of loan quality, see the financial
condition discussion.)
Noninterest income for the three months ended September 30, 1998 was
$4,451,000 compared to $3,691,000 for the same period in 1997, an increase
of 21%. This increase is being driven by several factors including service
charges, other commissions and fees (including mortgage origination fees,
bank owned life insurance income and credit card fees), and gains on sales
of government loans. Net servicing fees decreased from the year ago
quarter due primarily to an increase in amortization related to mortgage
prepayments.
Recurring noninterest expenses increased by $1,016,000 for the three
months ended September 30, 1998 compared to the same period in 1997 or 9%.
These increases are primarily due to the growth of the Company including
the August 1997 acquisition of ten branches ("1997 Branch Acquisition")
which added ten branches and their related infrastructure and personnel;
the construction of a new operations center which was completed in the
first quarter of 1998; and the purchase of a mainframe computer completed
in the second quarter of 1998. In the 1997 Branch Acquisition, a deposit
premium was paid which is being amortized thus increasing amortization
expense $195,000 for the three months ended September 30, 1998 compared to
the same period in 1997.
Operating Results for the Nine Months Ended September 30, 1998 and 1997
The Company's recurring net income for the nine months ended September 30,
1998 was $17,758,000, compared to $14,526,000 for the same period in 1997.
This represents an increase of 22%. Diluted earnings per share were $.69
compared to $0.57 for the same period in 1997. The annualized returns on
average assets and equity were 1.19% and 14.98%, respectively, compared to
1.14% and 13.47% for the same period in 1997.
Including after-tax nonrecurring merger expenses of $2,653,000, the
Company's net income for the nine months ended September 30, 1998 was
$15,105,000, compared to earnings of $15,495,000 for the same period in
1997. The 1997 period includes after-tax nonrecurring net gains of
$969,000. Diluted earnings per share were $0.58 compared to $0.61 for the
same period in 1997. For the nine months ended September 30, 1998 the
annualized returns on average assets and equity were 1.01% and 12.74%,
respectively, compared to 1.21% and 14.36% for the same period in 1997.
Net interest income increased to $55,985,000 for the nine months ended
September 30, 1998 from $49,706,000. The taxable equivalent yield on
earning assets decreased slightly from the year ago period to 8.63% from
8.68%. Loan yields decreased 14 bp over the year ago period with taxable
equivalent investment yields increasing. The cost of interest bearing
liabilities decreased as well to 4.94% from 4.96%. Net yield on earning
assets declined to 4.29% for the nine months ended September 30, 1998
versus 4.36% for the same period last year.
For the nine months ended September 30, 1998, a loan loss provision of
$3,829,000 was made compared to a provision of $3,490,000 for the same
period in 1997. (For further discussion of loan quality, see the financial
condition discussion.)
Recurring noninterest income for the nine months ended September 30, 1998
was $12,957,000 compared to $11,113,000 for the same period in 1997, an
increase of 17%. The increase is due to service charges, other commissions
and fees, including mortgage originations, and gains on sales of
government loans. These increases were offset by decreases in mortgage
servicing fees, net of amortization, and a decrease in securities gains
over the year ago period.
Recurring noninterest expenses for the nine months ended September 30,
1998 was $3,356,000 or 10% over the same period in 1997. These increases
are primarily due to the growth of the Company through the t 1997 Branch
Acquisition which added ten branches and their related infrastructure and
personnel. In the 1997 Branch Acquisition, a deposit premium was paid
which is being amortized thus increasing amortization expense $996,000 for
the nine months ended September 30, 1998 compared to the same period in
1997.
Financial Condition
Total assets increased to $2,026 million at September 30, 1998 versus
$2,016 million at December 31, 1997. Net loans grew $51 million to $1.3
billion as of September 30, 1998. This loan growth was funded by security
maturities and mortgage backed securities paydowns throughout the year.
Also, interest bearing funds in banks have been reduced to fund loan
growth. In August 1998, the Company purchased $20 million in bank owned
life insurance increasing other assets significantly.
The Company continued to maintain strong loan and lease loss reserves
during the period with the loan loss reserves at September 30, 1998 being
1.44% of total loans and leases and 145% of nonperforming loans.
Nonperforming assets to total loans plus other real estate owned were .99%
on September 30, 1998 compared to .71% as of December 31, 1997. Net
charge-offs were .18% for the nine month period ended September 30, 1998
versus .21% in the same period in 1997. A summary of certain information
related to the loan loss reserves and nonperforming assets as of September
30, 1998 follows:
RESERVE FOR LOAN LOSSES AND NONPERFORMING ASSETS
(Dollars in Thousands)
Analysis of Reserve for Loan Losses:
Beginning Balance, January 1, 1998 $ 17,797
--------
Deduct charge-offs:
Commercial financial and agricultural 1,529
Installment loans to individuals 705
Credit card and related plans 513
--------
2,747
Add recoveries:
Commercial, financial and agricultural 180
Real estate 23
Installment loans to individuals 170
Credit card and related plans 53
--------
426
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Net charge-offs 2,321
Additions charged to operations 3,829
--------
Ending Balance, September, 30 1998 $19,305
=======
Ratio of net charge-offs to average loans outstanding during
the period 0.18%
Analysis of Nonperforming Assets:
Nonaccrual loans:
Commercial, financial and agricultural $ 1,584
Real estate, construction and land development 3,158
Installment loans to individuals 82
--------
4,824
Loans contractually past due 90 days or more
as to principal or interest 6,879
Foreclosed assets 1,607
--------
TOTAL $ 13,310
========
Financial Condition (Continued)
Total deposits were $1,608 million as of September 30, 1998 compared to
$1,550 million at December 31, 1997, an increase of $58 million. The areas
of deposit increases have been in time deposits greater than $100,000,
savings and money market deposits and noninterest bearing deposits. These
deposits were used to fund maturing Federal Home Loan Bank (FHLB) advances
over the same time period. FHLB advances decreased $65 million from
December 31, 1997 to September 30, 1998.
Short-term debt was $68 million at September 30, 1998 consisting of $34
million in federal funds purchased, $15 million in securities sold to
repurchase and $19 million in masternotes. At December 31, 1997, the
Company had short-term of $61.5 million with $24.8 million in federal
funds sold, $20.6 million in securities sold to repurchase and $15.7
million in masternotes.
Capital
The adequacy of capital is reviewed regularly, in light of current plans
and economic conditions, to ensure that sufficient capital is available
for current and future needs, to minimize the Company's cost of capital
and to assure compliance with regulatory
requirements. In June 1997, the Company formed a Delaware business trust
subsidiary which issued $20 million in Trust Securities, all of which may
be counted as Tier 1 capital by the Company. The Company considers the
Trust Securities, which bear interest at the rate of 9.375% per annum and
have a maturity of 30 years, to be a relatively inexpensive source of
capital. The Company's capital ratios as of September 30, 1998 were as
follows:
Actual Required Excess
Percent Percent Percent
------- ------- -------
Tier 1 Capital to Risk Based Assets 10.22% 4.00% 6.22%
Total Capital to Risk Based Assets 11.47% 8.00% 3.47%
Leverage Ratio 7.95% 4.00% 3.95%
Impact of Year 2000 Issue
The Year 2000 Issue is the result of computer programs being written using
two digits rather than four to define the applicable year. As a result,
many automated applications may fail to function properly or may cease to
function unless corrected or replaced.
The Company is a "turnkey" institution; it does not write or develop any
of its own computer applications, but instead purchases or licenses its
applications from third party vendors. The Company has adopted a plan
which calls for the Company's applications to properly process dates in
the year 2000 and beyond by April 30, 1999. As a "turnkey" institution,
the Company is in dialogue with all of its vendors as to their
preparedness for Year 2000. In addition, the Company has hired an
independent consultant to assist it in all phases of its Year 2000 plan.
As of September 30, 1998, the Company had completed its assessment of its
existing computer systems and applications and had identified 32 mission
critical applications. As of September 30, 1998, the Company had begun
renovation, validation and implementation of several of its missions
critical applications. Renovation for the remaining mission critical
applications is to be completed by December 31, 1998, and by March 31,
1999 for non-mission critical functions. Validation and implementation of
all functions, both mission critical and non-mission critical, are to be
completed by April 30, 1999. As validation of a function occurs, the
Company will develop a contingency plan for each function. As of September
30, 1998 the Company had begun contingency planning for several functions.
The Company has budgeted $1,000,000 for the Year 2000 plan, with
approximately $50,000 for 1997, $750,000 for 1998 and $200,000 for 1999.
As of September 30, 1998, the Company has spent approximately $40,000 and
$332,000 in 1997 and 1998, respectively, on Year 2000 issues. The Company
does not expect the costs of this process to be material to its financial
condition or results of operations.
Based on information now available, the Company anticipates its systems
will properly process dates in the year 2000 and beyond.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities
There have been no changes in the rights of the holders of the common
stock of the Company.
Item 3. Defaults Upon Senior Securities
Not Applicable.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
Not Applicable.
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
(27) Financial Data Schedule
b) Reports on Form 8-K
On August 10, 1998, the Company filed an 8-K to report an amendment
to the March 4, 1998 Agreement and Plan of Reorganization and Merger
with UFSB which adopted a revised pricing structure in the event the
average closing price of Triangle stock were less than $18.67.
On September 1, 1998, the Company filed an 8-K to report a second
amendment to the March 4, 1998 Agreement and Plan of Reorganization
and Merger with UFSB which fixed the exchange ration.
On September 29, 1998, the Company filed an 8-K to report the
completion of the acquisition of UFSB.
September 30, 1998 December 31, 1997
------------------ -----------------
ASSETS
Cash and due from banks $ 65,434 $ 59,938
Federal funds sold - 4,219
Interest-bearing deposits in banks 4,593 34,195
Securities available for sale 421,403 446,295
Securities held to maturity, market value;
$93,365 and $101,979 91,339 100,666
Loans and Leases, less allowance for losses of
$19,305 and $17,797 1,323,691 1,273,139
Premises and equipment, net 41,216 40,281
Interest receivable 16,756 15,687
Deferred income taxes 8,901 7,763
Intangible assets 25,078 27,688
Other assets 27,196 5,766
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Total Assets $ 2,025,607 $ 2,015,637
================ ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand 215,514 199,746
Interest-bearing demand 184,265 192,577
Savings and money market 306,494 288,977
Large denomination certificates of deposit 193,087 156,536
Other time 708,954 712,404
---------------- --------------
Total Deposits 1,608,314 1,550,240
Short-term debt 68,350 61,511
Federal Home Loan Bank advances 140,300 205,300
Corporation obligated manditorily
redeemable securities 19,952 19,951
Custodial accounts for loans serviced 8,406 5,197
Interest payable 9,671 9,380
Other liabilities 8,657 11,587
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Total other liabilities 255,336 312,926
---------------- --------------
Total liabilities 1,863,650 1,863,166
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Commitments and contingencies*
SHAREHOLDERS' EQUITY
Common stock, no par value 50,000
authorized; 25,172 shares and
24,839 shares outstanding at September 30,
1998 and December 31, 1997, respectively 86,959 84,886
Undivided profits 76,269 67,217
Accumulated other comprehensive income (1,271) 368
---------------- --------------
Total shareholders' equity 161,957 152,471
---------------- --------------
Total liabilities and shareholders' equity $ 2,025,607 $ 2,015,637
================ ==============
*Standby letters of credit outstanding at September 30, 1998 amounted to $5,135.
The accompanying notes are an integral part of the consolidated financial
statements.
For the three For the three For the nine For the nine
months ended months ended months ended months ended
September 30, 1998 September 30, 1997 September 30, 1998 September 30, 1997
------------------ ------------------ ------------------ ------------------
INTEREST INCOME
Interest and fees on loans $ 31,019 $ 28,500 $ 91,047 $ 79,648
------------------ ------------------ ------------------ ------------------
Securities 7,293 6,289 22,958 19,017
Interest bearing deposits 387 1,003 1,358 1,734
Federal funds sold 18 38 56 131
Total interest income 38,717 35,830 115,419 100,530
INTEREST EXPENSE:
Large denomination certificates of deposit 2,857 2,140 8,558 6,350
Other deposits 13,601 13,512 40,761 38,710
Capital securities 469 465 1,408 604
Short-term debt 667 1,204 1,716 2,131
Federal Home Loan Bank advances 2,105 1,148 6,991 3,029
------------------ ------------------ ------------------ ------------------
Total interest expense 19,699 18,469 59,434 50,824
------------------ ------------------ ------------------ ------------------
Net interest income 19,018 17,361 55,985 49,706
Provision for loan losses 1,223 1,291 3,829 3,490
------------------ ------------------ ------------------ ------------------
Net interest income after
provision for loan losses 17,795 16,070 52,156 46,216
------------------ ------------------ ------------------ ------------------
NONINTEREST INCOME:
Service charges on deposit accounts 2,104 1,740 6,233 5,043
Mortgage servicing fees, net of amortization 105 263 527 854
Other commissions and fees 960 664 2,758 1,844
Gain on sale of securities 447 282 919 1,266
Trading gains, net - 189 - 681
Gain on sale of government loans 236 87 779 282
Gain on sale of mortgage loans 148 69 416 267
Gain on sale of branches - - - 2,000
Other fee income 193 151 543 290
Other operating income 258 246 782 586
------------------ ------------------ ------------------ ------------------
Total noninterest income 4,451 3,691 12,957 13,113
------------------ ------------------ ------------------ ------------------
NONINTEREST EXPENSES:
Salaries and employee benefits 5,693 5,448 16,874 16,167
Occupancy expenses 1,247 1,090 3,711 3,190
Furniture and equipment expenses 1,259 925 3,501 2,521
Professional fees 637 817 1,815 2,420
Advertising and public relations 351 442 1,005 1,298
Office expenses 366 525 1,261 1,382
Telephone and communication 339 312 1,166 995
Merger expense 2,741 337 4,373 486
Amortization of intangible assets 794 599 2,381 1,385
Other operating expense 2,239 1,751 6,253 5,253
------------------ ------------------ ------------------ ------------------
Total noninterest expenses 15,666 12,246 42,340 35,097
------------------ ------------------ ------------------ ------------------
Net income before taxes 6,580 7,515 22,773 24,232
Income tax expense 2,141 2,557 7,668 8,737
------------------ ------------------ ------------------ ------------------
Net income $ 4,439 $ 4,958 $ 15,105 $ 15,495
================== ================== ================== ==================
Basic income per share data:
Net income $ 0.18 $ 0.20 $ 0.60 $ 0.63
Average shares outstanding 25,149 24,634 25,093 24,638
Diluted income per share data:
Net income $ 0.17 $ 0.19 $ 0.58 $ 0.61
Average common equivalent shares 25,823 25,638 25,861 25,548
Cash dividends declared per share $ 0.08 $ 0.06 $ 0.23 $ 0.17
The accompanying notes are an integral part of the consolidated financial
statements.
TRIANGLE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
IN THOUSANDS
UNAUDITED
SEPTEMBER 30, SEPTEMBER 30,
1998 1997
---- ----
Cash flows from operating activities:
Net income $ 15,105 $ 15,495
Adjustments to reconcile net income to net cash provided by (used in)
operations:
Depreciation and amortization 5,999 3,989
Accretion of discount on investment securities,
net of amortization of premiums 1,062 777
Provision for loan losses 3,829 3,490
Gain on sale of investments (919) (1,266)
Gain on trading securities - (681)
Gain on sale of branches - (2,000)
Net change in trading securities - 42,548
Mortgage loans held for sale:
Originations (30,550) (22,821)
Sales 31,155 27,347
Provision (benefit) for deferred taxes 50 (534)
Change in other assets and liabilities:
Interest receivable (1,069) (3,297)
Other assets (21,791) 81
Interest payable 292 394
Other liabilities (2,144) 2,200
----------- ----------------
Net cash provided by (used in) operating activities 1,019 65,722
----------- ----------------
Cash flows from investing activities:
Proceeds from maturities and principal paydowns of securities AFS 69,059 32,945
Proceeds from maturities and principal paydowns of securities HTM 30,602 33,861
Proceeds from sales of investment securities AFS 56,428 281,776
Purchases of investment securities AFS (102,076) (329,866)
Purchases of investment securities HTM (22,610) (33,167)
Net increase in loans made to customers (54,986) (181,114)
Capital expenditures, bank premises and equipment (3,666) (4,707)
Cost of loan servicing rights (452) (813)
Net cash disposed in divestiture - (10,287)
Net cash acquired in acquisition - 113,301
----------- ----------------
Net cash provided by (used in) investing activities (27,701) (98,071)
----------- ----------------
Cash flows from financing activities:
Net increase in deposit accounts 58,075 49,635
Net decrease in short-term debt 6,844 (4,768)
Net increase (decrease) in FHLB advances (65,000) 12,000
Net increase in custodial accounts 3,209 6,268
Proceeds from issuance of corporation obligated securities - 19,950
Deferred debt issuance cost - (621)
Repurchase of common stock (1,508) (2,244)
Cash dividends paid (6,052) (4,420)
Shares issued under stock plans 2,789 1,100
----------- ----------------
Net cash provided (used) by financing activities (1,643) 76,900
----------- ----------------
Net increase (decrease) in cash and cash equivalents (28,325) 44,551
Cash and cash equivalents at beginning of period 98,352 60,383
----------- ----------------
Cash and cash equivalents at end of period $ 70,027 $104,934
=========== ================
The accompanying notes are an integral part of the consolidated financial
statements.
TRIANGLE BANCORP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
For the Three and Nine Months Ended September 30, 1998 and 1997
(Unaudited)
1. Financial statement presentation and management representation
The consolidated financial statements include the accounts and results of
operations of Triangle Bancorp, Inc. and its four wholly-owned
subsidiaries, Triangle Bank, Bank of Mecklenburg, Coastal Leasing LLC, and
Triangle Capital Trust. All significant intercompany transactions and
accounts are eliminated in consolidation.
The interim consolidated financial statements as of and for the three and
nine months ended September 30, 1998 and 1997 are unaudited. In the
opinion of management, the consolidated financial statements contain all
adjustments, consisting of normal recurring adjustments, necessary to
present fairly, in all material respects, the consolidated financial
position as of September 30, 1998 and 1997, and the results of operations
and cash flows for the periods ended September 30, 1998 and 1997. For the
nine month periods ended September 30, 1998 and September 30, 1997, $4.4
million and $486,000, respectively, in pre-tax non-recurring expenses
relating to mergers and acquisitions were recognized. The results for the
interim periods are not necessarily indicative of what results will be for
the year ended December 31, 1998.
2. Reporting Comprehensive Income
On January 1, 1998, the Company adopted the provisions of Statement of
Financial Accounting Standards No. 130, "Reporting Comprehensive Income"
("SFAS No. 130"). As required by SFAS No. 130, prior year information has
been modified to conform with the new presentation.
Comprehensive income includes net income and other comprehensive income.
Other comprehensive income includes all other changes to an entity's
equity, with the exception of transactions with shareholders. The
Company's only component of other comprehensive income relates to
unrealized gains and losses on available for sale securities.
The Company's total comprehensive income for the nine month periods ended
September 30, 1998 and 1997 was $13.466 and $16.080 respectively.
Information concerning the Company's other comprehensive income for the
nine month periods ended September 30, 1998 and 1997 is as follows:
(In thousands)
1998 1997
---- ----
Unrealized gains(losses) on available for sale
securities $(2,035) $ 1,444
Income tax benefit relating to unrealized gains
(losses) on available for sale securities 396 (859)
------- -------
Other comprehensive income $(1,639) $ 585
======= =======
3. Accounting for Derivative Instruments and Hedging Activities
On June 15, 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 133, Accounting for
Derivative Instruments and Hedging Activities (FAS 133). FAS 133 requires
that all derivative instruments be recorded on the balance sheet at fair
value. Changes in the fair value of derivatives are recorded each period
in current earnings or other comprehensive income, depending on whether a
derivative is designated as part of a hedge transaction and, if it is, the
type of hedge transactions. FAS 133 is effective for all fiscal quarters
of all fiscal years beginning after June 15, 1999 , however the Company
has chosen to adopt FAS 133 October 1, 1998. Management of the Company
anticipates that, due to its limited use of derivative instruments, the
adoption of FAS 133 will not have a significant effect on the Company's
results of operations or its financial position.
4. Accounting for Mortgage-Backed Securities Retained after the
Securitization of Mortgage Loans Held for Sale
Statement of Financial Accounting Standards No,. 134, Accounting for
Mortgage-Backed Securities Retained after the Securitization of Mortgage
Loans Held for Sale by a Mortgage Banking Enterprise, was issued in
October 1998. This Statement amends existing classification and accounting
treatment of mortgage-backed securities, retained after mortgage loans
held for sale are securitized, for entities engaged in mortgage banking
activities. These securities previously were classified and accounted for
as trading and now may be classified as held to maturity or available for
sale. This statement is effective for the first fiscal quarter beginning
after December 15, 1998. SFAS 134 is not expected to have a material
effect on the Company's financial statements.
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.
TRIANGLE BANCORP, INC.
Date: November 16, 1998 /s/ Michael S. Patterson
---------------------------
Michael S. Patterson,
President and CEO
Date: November 16, 1998 /s/ Debra L. Lee
---------------------------
Debra L. Lee,
Chief Financial Officer
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.
TRIANGLE BANCORP, INC.
Date: November 16, 1998 BY:
---------------------------
Michael S. Patterson,
President and CEO
Date: November 16, 1998 BY:
---------------------------
Debra L. Lee,
EVP/Chief Financial Officer
TRIANGLE BANCORP, INC.
EXHIBIT TABLE
PAGE
(27) Financial Data Schedule