U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[X]QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD
ENDED SEPTEMBER 30, 1997
[ ]TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
__________ TO __________
Commission file number - 33-53596
FC BANC CORP.
________________________________________
(Exact name of small business issuer as specified in its charter)
OHIO 34-1718070
______________________________ ___________________________
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
Farmers Citizens Bank Building,
105 Washington Square
Box 567, Bucyrus, Ohio 44820-0567
______________________________________ _____________
(Address of principal executive offices) (Zip Code)
(419) 562-7040
_________________
(Issuer's telephone number)
N/A
_____
(Former name, former address and former fiscal year, if
changed since last report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes [X] No [ ]
As of October 30, 1997, 321,188 shares of Common Stock of the Registrant were
outstanding. There were no preferred shares outstanding.
FC BANC CORP.
BUCYRUS, OHIO
FORM 10-QSB
INDEX
________________________________________________________________________________
Page Number
PART I FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets -- 3
September 30,1997 and December 31,1996
Condensed consolidated statements of income -- 4
Three and nine months ended September 30, 1997 and 1996
Condensed consolidated statement of cash flows -- 5
Nine months ended September 30, 1997 and 1996
Notes to condensed consolidated financial 6
statements -- September 30, 1997, 1996 and December 31, 1996
Item 2. Management's Discussion and Analysis of Financial 7
Condition and Results of Operations
PART II OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
FC BANC CORP.
Bucyrus, Ohio
CONSOLIDATED BALANCE SHEETS
_________________________________________________________________________________________________
<--------Dollars in thousands-------->
(Unaudited) (Unaudited)
September 30, December 31,
1997 1996
____ ____
Assets
Cash and cash equivalents
Cash and due from banks $ 3,775 $ 3,957
Federal funds sold 2,200 1,100
_______ _______
Total cash and cash equivalents 5,975 5,057
Investment securities available-for-sale, at fair value 27,450 32,194
Loans (net of unearned interest) 39,311 41,043
Less: Allowance for loan losses (1,077) (1,263)
_______ _______
Loans - net 38,234 39,780
Properties and equipment 1,324 1,476
Accrued income receivable 758 837
Deferred federal income taxes 469 521
Other assets 1,718 1,580
_______ _______
Total assets $75,928 $81,445
_______ _______
Liabilities and Shareholders' Equity
Deposits
Demand accounts $19,136 $23,692
Savings accounts 18,344 20,208
Time deposits, $100,000 or more 627 914
Other time deposits 25,656 25,260
_______ _______
Total deposits 63,763 70,074
Federal funds purchased 0 0
Accrued interest payable 155 186
Accrued federal income taxes 206 63
Accrued expenses and other liabilities 567 455
_______ _______
Total liabilities 64,691 70,778
_______ _______
Shareholders' Equity
Common share of $ 2.50 par value: 1,000,000 shares authorized; 832 832
332,816 shares issued at September 30, 1997, and
December 31, 1996
Surplus 1,377 1,377
Retained earnings, substantially restricted 9,578 8,944
Unrealized loss on securities available-for-sale, (59) (164)
net applicable deferred income taxes
Less cost of common stock in treasury - 11,628 shares and
7,796 shares at September 30, 1997, and
December 31, 1996, respectively (491) (322)
_______ _______
Total shareholders' equity 11,237 10,667
_______ _______
Total liabilities and shareholders' equity $75,928 $81,445
_______ _______
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
FC BANC CORP.
Bucyrus, Ohio
CONSOLIDATED STATEMENTS OF INCOME
____________________________________________________________________________________________________________
<----Dollars in thousands, except per share amounts---->
(Unaudited) (Unaudited)
3 Months Ended 9 Months Ended
September 30, September 30,
1997 1996 1997 1996
____ ____ ____ ____
Interest income
Interest and fees on loans $ 965 $ 886 $ 2,770 $ 2,551
Interest on investment securities:
Taxable 341 421 1,080 1,228
Exempt from federal income tax 72 103 220 311
Interest on federal funds sold 21 11 38 91
_______ _______ _______ _______
Total interest income 1,399 1,421 4,108 4,181
_______ _______ _______ _______
Interest expense
Interest on interest-bearing checking accounts 68 82 210 247
Interest on savings deposits 139 141 408 431
Interest on certificates of deposit 332 335 968 1,023
Interest on borrowed funds 0 3 6 20
_______ _______ _______ _______
Total interest expense 539 561 1,592 1,721
_______ _______ _______ _______
Net interest income 860 860 2,516 2,460
Provision for loan losses 0 0 27 0
_______ _______ _______ _______
Net interest income after provision for loan loss 860 860 2,489 2,460
Noninterest income
Service charges on deposit accounts 110 85 274 266
Life insurance 17 16 51 55
Gain (loss) on sale of investment securities 2 0 2 (14)
Loss on sale of real estate owned (25) 0 (25) 0
Gain on loans sold 0 24 0 24
Other income 22 31 75 78
_______ _______ _______ _______
Total noninterest income 126 156 377 409
_______ _______ _______ _______
Noninterst expense
Salaries and employee benefits 295 361 892 1,227
Net occupancy expense 85 91 280 282
Equipment expense 29 25 86 93
FDIC deposit insurance assessment 2 5 16 15
State and other taxes (3) 39 79 121
Other expense 261 187 675 595
_______ _______ _______ _______
Total noninterest expense 669 708 2,028 2,333
_______ _______ _______ _______
Income before income taxes 317 308 838 536
Federal income tax expense 82 70 204 73
_______ _______ _______ _______
Net income $ 235 $ 238 $ 634 $ 463
_______ _______ _______ _______
___________________________________________________________________________________________________________
Per share data:
Net income per share of common stock $0.73 $0.73 $1.96 $1.42
Weighted average shares outstanding 321,188 325,020 322,838 326,031
___________________________________________________________________________________________________________
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
FC BANC CORP.
Bucyrus, Ohio
CONSOLIDATED STATEMENTS OF CASH FLOWS
_________________________________________________________________________________________________
<-----Dollars in thousands----->
(Unaudited) (Unaudited)
9 Months Ended 9 Months Ended
September 30, September 30,
1997 1996
____ ____
Cash flows from operating activities:
Net income $ 634 $ 463
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 201 206
Provision for loan losses 27 0
Provision for deferred taxes 0 (2)
Gain (loss) on sale of investments (2) 14
Loss on other real estate 24 0
Gain on loans sold 0 (24)
Amortization/Accretion - net 38 54
Change in other assets (138) (68)
Change in income taxes payable 144 187
Change in interest receivable 79 (73)
Change in interest payable (31) (56)
Change in other liabilities 112 185
_______ _______
Total adjustments 454 423
_______ _______
Net cash provided by operating activities 1,088 886
Cash flows from investing activities:
Proceeds from maturities of available-for-sale securities 4,949 5,026
Purchase of available-for-sale securities (2,307) (7,982)
Net change in loans 1,239 (1,517)
Proceeds from loans sold 0 1,119
Proceeds on sale of available-for-sale securities 2,223 2,422
Purchase of premises and equipment (48) (325)
Proceeds from other real estate owned 254 0
_______ _______
Net cash used in investing activities 6,310 (1,257)
_______ _______
Cash flows from financing activities:
Net decrease in deposits (6,311) (4,004)
Net decrease in short-term borrowing 0 (1,525)
Purchase of treasury stock (169) (315)
_______ _______
Net cash provided by financing activities (6,480) (5,844)
_______ _______
Net increase (decrease) in cash and cash equivalents 918 (6,215)
Cash and cash equivalents at beginning of period 5,057 9,529
_______ _______
Cash and cash equivalents at end of period $ 5,975 $ 3,314
_______ _______
________________________________________________________________________________________________
Supplemental information:
Cash paid for:
Interest $ 1,623 $ 1,777
Net income taxes 61 (113)
________________________________________________________________________________________________
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
FC BANC CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1997, 1996 and December 31,1996
________________________________________________________________________________
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Corporation is a bank holding company whose activities are primarily
limited to holding the stock of the Farmers Citizens Bank, Bucyrus, Ohio, (the
"Company"). The Company conducts a general banking business in north central
Ohio which consists of attracting deposits from the general public and
applying those funds to the origination of loans for residential, consumer and
non-residential purposes. The Company's profitability is significantly
dependent on net interest income which is the difference between interest
income generated from interest-earning assets (i.e., loans and investments)
and the interest expense paid on interest-bearing liabilities (i.e., customer
deposits and borrowed funds). Net interest income is affected by the relative
amount of interest-earning assets and interest-bearing liabilities and
interest received or paid on these balances. The level of interest rates paid
or received by the Company can be significantly influenced by a number of
environmental factors, such as governmental monetary policy, that are outside
of management control.
Earnings per common share were computed by dividing net income by the
weighted-average number of shares outstanding for the three- and nine-month
periods ended September 30, 1997 and 1996. The weighted-average number of
shares outstanding for the three-month periods ended September 30, 1997 and
1996, were 321,188 and 325,020, respectively. The weighted-average number of
shares outstanding for the nine-month periods ended September 30,1997 and
1996, were 322,838 and 326,031, respectively.
The consolidated financial information presented herein has been prepared
in accordance with generally accepted accounting principles ("GAAP") and
general accounting practices within the financial services industry. In
preparing consolidated financial statements in accordance with GAAP,
management is required to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities at the date of the financial statements and revenues
and expenses during the reporting period. Actual results could differ from
such estimates.
NOTE B - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with instructions to Form 10-QSB and Article
10 of Regulation S-X and Rule 310 of Regulation SB. Accordingly, they do not
include all information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments considered necessary for a fair presentation have
been included. Operating results are not necessarily indicative of the
results that may be expected for the year ended December 31, 1997.
FC BANC CORP.
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
________________________________________________________________________________
The following focuses on the consolidated financial condition of FC Banc
Corp. at September 30, 1997, compared to December 31, 1996, and the results of
operations for the three- and nine-month periods ended September 30, 1997,
compared to the same periods in 1996. The purpose of this discussion is to
provide a better understanding of the consolidated financial statements and
footnotes included in the Form 10-QSB. The Registrant is not aware of any
market or institutional trend, events or uncertainties that will have or are
reasonably likely to have a material effect on liquidity, capital resources or
operations except as discussed herein. Other than as discussed herein, the
Registrant is not aware of any current recommendations by regulatory
authorities which would have such effect if implemented.
Note Regarding Forward-Looking Statements
In addition to historical information contained herein, the following
discussion contains forward-looking statements that involve risks and
uncertainties. Economic circumstances, the Corporation's operations and the
Corporation's actual results could differ significantly from those discussed
in the forward-looking statements. Some of the factors that could cause or
contribute to such differences are discussed herein but also include changes
in the economy and interest rates in the nation and the Corporation's market
area generally. Some of the forward-looking statements included herein are
the statements regarding the allowance for loan losses.
Financial Condition
Liquidity
Liquidity relates to the Company's ability to meet cash demands of its
customers and their credit needs. Liquidity is provided by the Company's
ability to readily convert assets to cash and readily marketable, short-term
assets such as federal funds sold and deposits in other banks.
Cash, amounts due from banks and federal funds sold totaled $5,975,000 at
September 30, 1997. Investments and mortgage-backed securities
available-for-sale were $27,450,000 at September 30, 1997. These amounts
increased by $580,000 from June 30, 1997 and decreased by $3,826,000 from
December 31, 1996. These assets, as well as anticipated deposit balance
fluctuations, scheduled loan payments and maturing investment securities,
provide the Company with an adequate source of funds for expected future
demand for loans and for fluctuations in deposit volume. They also provide
management with the flexibility to change the composition of interest earning
assets as market conditions change in the future. The Company's liquidity
ratio was 48% at September 30, 1997, which exceeded the regulatory
requirements and management's internal guideline of 20.00%.
Liability liquidity relates to the Company's ability to retain existing
deposits, obtain new deposits and borrow in the marketplace. Total deposits
increased $484,000 from June 30, 1997 and decreased $6,311,000 from December
31, 1996. These decreases are attributable to the loss of $2 million public
fund deposits, normal seasonal fluctuations, and management's decision not to
aggressively price deposits. The Company has experienced some deposit
disintermediation during 1997 which management attributes primarily to
customer awareness of rate differentiation. Management does not anticipate
any significant amount disintermediation through the end of 1997. Management
expects total deposits to remain steady or experience some additional growth
during the remainder of 1997 as deposit products are repriced.
Access to advances from the Federal Reserve Bank (FRB) in the form of
Federal Funds Purchased and Securities Sold Under Agreement to Repurchase
(Repo Agreements) are supplemental sources of cash to meet liquidity needs.
Capital Resources
Shareholders' equity totaled $11,237,000 at September 30, 1997, compared
to $10,956,000 at June 30, 1997 and $10,667,000 at December 31, 1996,
respectively. This increase was primarily due to quarterly earnings of
$185,000, $214,000 and $235,000 in the first three quarters of 1997 being
off-set by treasury stock purchases of $169,000 and net unrealized holding
gains on securities available-for-sale of $105,000. As of September 30,
1997, the ratio of shareholders' equity to assets was 14.80% compared to
13.10% at December 31, 1996.
Regulatory Capital Requirements
The Company complies with the capital requirements established by the Federal
Reserve System, which are
summarized as follows:
Capital Position
Regulatory as of
Minimum September 30, 1997 December 31, 1996
______________________________________________________________________
Tier I 4.00% 26.63% 22.61%
risk-based
capital......
Total Risk- 8.00% 27.90% 23.88%
Based capital
Tier I 3.00% - 5.00% 14.81% 13.04%
leverage.....
Under "Prompt Corrective Action" regulations adopted in September 1992,
the Federal Deposit Insurance Corporation (FDIC) has defined five categories
of capitalization (well capitalized, adequately capitalized, undercapitalized,
significantly undercapitalized, and critically undercapitalized). The Company
meets the "Well Capitalized" definition, which requires a total risk-based
capital ratio of at least 10%, and a leverage ratio of at least 8%. Effective
January 1, 1997, the Federal Financial Institutions Examination Council (the
FFIEC) adopted the Uniform Financial Institutions Rating System (the UFIRS).
Under the revised UFIRS interest rate risk became an additional element in
measuring risk-based capital. This change is not expected to significantly
impact the Company's compliance with capital guidelines.
Changes in Financial Condition
General. The Corporation's consolidated total assets were $75.93 million
at September 30, 1997, reflecting an increase of $149,000, or 0.20%, from the
$75.78 million at June 30, 1997, and a decrease of $5.52 million or 6.77%,
from the $81.45 million at December 31, 1996. This decline was primarily
attributed to a decrease of $6.31 million in deposits coupled with decreased
loan demand, primarily real estate loans, and maturing investment
securities.
Cash and Cash Equivalents, Investment Securities, and Mortgage-Backed
Securities. Cash and cash equivalents, investment securities, and
mortgage-backed securities decreased $3.83 million between December 31,
1996 and September 30, 1997. The decline was primarily attributable to $4.87
million in net principal reductions and maturing investment securities, the
proceeds of which were utilized to satisfy depositor withdrawal requests.
Dollars invested in overnight funds increased from $1.1 million at December
31, 1996 to $2.2 million at September 30, 1997.
Loans Receivable. Total loans outstanding at September 30, 1997, equaled
$39.31 million, compared to $39.96 million and $41.04 million at June 30, 1997
and December 31, 1996, respectively. The increase of $2.99 million in
commercial loans since December 31, 1996 has been partially offset by
decreases in mortgage and consumer based portfolios. However, total loans
have decreased in the third quarter of 1997 by $650 thousand after a second
quarter increase of $245 thousand. The results of managements initiation of
an enhanced officer call program, the addition of two lending specialists and
several new products are beginning to be reflected in the financial statements
of the company.
Deposits. Total deposits increased by $484 thousand, or 0.76%, during
the quarter ended September 30,1997, for a total decrease of $6.31 million
since December 31, 1996. Total demand and savings deposits remained
relatively constant during the third quarter. Demand deposits increased by
$65 thousand and savings deposits declined by $351 thousand which together
accounts for approximately 59.10% of the total deposit decline during the
three months ended September 30, 1997.
The overall decline in deposits for the nine-month period ended September
30, 1997 was $6.31 million or 9.01% of which $6.42 million was attributed to
demand and savings accounts.
Liabilities other than deposits and federal funds purchased decreased by
$616,000 during the third quarter of 1997 after an increase of $881,000 during
the second quarter of 1997. The fluctuations noted in the other liability
account are attributed primarily to the accrual for various operating expenses
such as interest on deposits and federal funds purchased, federal income
taxes, personnel expense, and so forth.
Results of Operations
General. The Corporation recorded a consolidated net income of $235,000
for the third quarter of 1997, compared to $238,000 for the same quarter in
1996. Significant fluctuations were noted in noninterest income, an $18,000
increase before gains and losses on loans and real estate owned sold. Also,
noninterest expense decreased by $39,000 in the third quarter of 1997 compared
to the same quarter in 1996. Year-to-date net income for the nine months
ended September 30,1997 as compared to September 30, 1996 was up by 36.93%, or
$171,000.
Three months ended, September 30, 1997 vs Three months ended, September 30,
1996
Net Interest Income. The Corporation's net interest income for the three
months ended September 30, 1997, remained constant at $860,000, compared to
the same period in 1996. The net interest margin, which consists of net
interest income as a percentage of average interest-earning assets increased
from 3.46% for the three months ended September 30, 1996, to 4.84% for the
same period in 1997, primarily as a result of the decline in volume of
interest-bearing liabilities coupled with minor fluctuations in the yields, or
interest cost, of each category of interest-bearing liabilities. During the
same period, net interest spread, which reflects average yield on
interest-earning assets less costs of interest-bearing liabilities, increased
to 4.01%. Average loans outstanding continued to show an increase over 1996
which contributed approximately $155,000 to the net interest income while the
changes in average yield on loans outstanding increased the net interest
income by approximately $64,000.
Provision for Loan Losses. The allowance for loan losses was established
and is maintained by periodic charges to the provision for loan losses, an
operating expense, in order to provide for the risk of loss inherent in the
Corporation's loan portfolio. Loan losses and recoveries are charged or
credited, respectively, to the allowance for loan losses as they occur.
The allowance and provision for loan losses is determined by management
upon consideration of such factors as the size and character of the loan
portfolio, loan loss experience, problem loans and economic conditions in the
Corporation's market area. Management attempts to minimize the risk
associated with each loan by evaluating each loan independently based upon
criteria which include, but are not limited to, (a) the purpose of the loan,
(b) the credit history of the borrower, (c) the borrower's financial standing
and trends, (d) the market value of the collateral involved, and (e) the down
payment received. Quarterly reviews of the loan portfolio are conducted to
identify problem loans and to determine appropriate courses of action on a
loan-by-loan basis. While management believes that it uses the best
information available to determine the allowance for loan losses, unforeseen
market conditions could result in material adjustments, and net earnings could
be significantly adversely affected, if circumstances differ substantially
from the assumptions used in making the final determination. Increases in the
loan portfolio, increases in the types of loans carrying greater risk of loss,
increases in non-performing loans and changes in the local and national
economy all could cause the allowance for loan losses to be insufficient.
The Company did not add to the allowance for loan losses during the
quarter ended September 30, 1997, due to the results of management's quarterly
evaluation of the loan portfolio. The Company also recognized $268,000 in
losses on loans while recovering $61,000 on loans previously charged against
the allowance for loan losses.
Noninterest Income and Expense. Noninterest income was $126,000 for the
three months ended September 30, 1997, compared to $156,000, for the same
period in 1996. This decrease was primarily the result of the $25,000 loss
recognized on the sale of other real estate in 1997 and the $24,000 gain on
the sale of loans in 1996. Service charges on deposit accounts increased by
$25,000 in 1997 compared to 1996. Noninterest expense declined $39,000 for
the three months ended September 30, 1997, compared to the same period in
1996. Total personnel costs for the current period decreased $66,000. The
larger personnel costs in 1996 were directly related to staffing changes and
the retirement of long-term employees.
Nine months ended, September 30, 1997 vs Nine months ended, September 30, 1996
Net Interest Income. The Corporation's net interest income for the nine
months ended September 30, 1997, increased 2.28%, or $56,000 over the same
period in 1996. This increase was primarily attributable to the overall
reduction in interest paid on deposits. The net interest margin, which
consists of net interest income as a percentage of average interest-earning
assets, increased from 3.99% to 4.74% for the nine months ended September 30,
1997, as compared to the same period in 1996. This is representative of the
increase in the ratio of average total loans to average total deposits, from
approximately 53% for the nine months ended September 30, 1996 to
approximately 61% for the nine months ended September 30, 1997.
Provision for Loan Losses. The allowance for loan losses was established
and is maintained by periodic charges to the provision for loan losses, an
operating expense, in order to provide for the risk of loss inherent in the
Corporation's loan portfolio. Loan losses and recoveries are charged or
credited, respectively, to the allowance for loan losses as they occur.
The allowance and provision for loan losses is determined by management
upon consideration of such factors as the size and character of the loan
portfolio, loan loss experience, problem loans and economic conditions in the
Corporation's market area. Management attempts to minimize the risk
associated with each loan by evaluating each loan independently based upon
criteria which include, but are not limited to, (a) the purpose of the loan,
(b) the credit history of the borrower, (c) the borrower's financial standing
and trends, (d) the market value of the collateral involved, and (e) the down
payment received. Quarterly reviews of the loan portfolio are conducted to
identify problem loans and to determine appropriate courses of action on a
loan-by-loan basis. While management believes that it uses the best
information available to determine the allowance for loan losses, unforeseen
market conditions could result in material adjustments, and net earnings could
be significantly adversely affected, if circumstances differ substantially
from the assumptions used in making the final determination. Increases in the
loan portfolio, increases in the types of loans carrying greater risk of loss,
increases in non-performing loans and changes in the local and national
economy all could cause the allowance for loan losses to be insufficient.
The Corporation added $27,000 to the allowance for loan losses during the
nine months ended September 30, 1997, due to the results of management's
quarterly evaluation of the loan portfolio. The Corporation also recognized
$331,000 in losses on loans while recovering $117,000 on loans previously
charged against the allowance for loan losses.
Noninterest Income and Expense. Noninterest income was $377,000 for the
nine months ended September 30, 1997, compared to $409,000, for the same
period in 1996. This decrease was primarily the result of the $25,000 loss
recognized on the sale of real estate owned in 1997 coupled with the $24,000
gain recognized on the sale of loans in 1996. The Corporation recorded a
$2,000 gain on the sale of investment securities in 1997 when it recorded a
loss of $14,000 during the same nine month period in 1996. Service charges on
deposit accounts increased by $8,000 for the nine months ended September 30,
1997, compared to the same period in 1996. Noninterest expense also decreased
by $305,000 for the nine months ended September 30, 1997, compared to the same
period in 1996. The decrease was attributed to the decreased costs of
employee salaries and benefit plans of $335,000, which was due to the changes
in staffing and a reduction in the total number of employees.
FC BANC CORP.
PART II - OTHER INFORMATION
________________________________________________________________________________
ITEM 1 - LEGAL PROCEEDINGS
Not Applicable
ITEM 2 - CHANGES IN SECURITIES
Not Applicable
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable
ITEM 5 - OTHER INFORMATION
Not Applicable
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibit 27: Financial Data Schedule
b. Exhibit 99: Amended and Restated Articles of Incorporation of
FC Banc Corp.
c. No report on Form 8-K was filed during the quarter ended
September 30, 1997.
SIGNATURES
In accordance with 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.
FC BANC CORP.
Date /s/ November 13, 1997 /s/ G.W. Holden
_______________________________ ________________________________
G. W. Holden
President and Chief Executive Officer
Date /s/ November 13, 1997 /s/ Terry L. Gernert
______________________________ ________________________________
Terry L. Gernert
Secretary/Treasurer